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on Microeconomic European Issues |
| By: | Horioka, Charles Yuji; Ventura, Luigi |
| Abstract: | In this paper, we analyze the saving motives of European households using micro-data from the Household Finance and Consumption Survey (HFCS), which is conducted by the European Central Bank. We find that the rank ordering of saving motives differs greatly depending on what criterion is used to rank them. For example, we find that the precautionary motive is the most important saving motive of European households when the proportion of households saving for each motive is used as the criterion to rank them but that the retirement motive is the most important saving motive of European households if the quantitative importance of each motive is taken into account. Moreover, the generosity of social safety nets seems to affect the importance of each saving motive, with saving for the retirement motive being less important in countries with generous public pension benefits and saving for the precautionary motive being less important in countries with generous health systems. These findings suggest that the retirement motive and the precautionary motive are the dominant motives for saving in Europe partly because social safety nets are not fully adequate. Our finding that saving motives that are consistent with the selfish life-cycle model as well as saving motives that are consistent with the altruism model are important in Europe implies that the two models coexist in Europe, as is the case in other parts of the world. However, our finding that the retirement motive, which is the saving motive that most exemplifies the selfish life-cycle model, is of dominant importance in Europe strongly suggests that this model is far more applicable in Europe than is the altruism model. Moreover, our finding that the intergenerational transfers motive, which is the saving motive that most exemplifies the altruism model, accounts for only about one-quarter of total household wealth in Europe provides further corroboration for this finding. |
| Keywords: | altruism model, bequests, European Central Bank, Household Finance and Consumption Survey, households, household saving, household wealth, inheritances, inter vivos transfers, intergenerational transfers, precautionary saving, retirement |
| JEL: | D12 D14 D15 D64 E21 J14 |
| URL: | https://d.repec.org/n?u=RePEc:agi:wpaper:02000107 |
| By: | Tassinari, Arianna; Romo, Oscar Molina; Di Carlo, Donato |
| Abstract: | This article compares the responses of the governments and social partners in Italy and Spain to the inflation crisis of 2021–2023. Faced with a common exogenous shock and sharing a comparable institutional setting in the labour market, the two countries’ responses to the inflation crisis differed substantially with regard to the policy mode of crisis response and the types of policy intervention. First, social partners’ involvement was far more significant in Spain, where peak-level agreements were signed setting a three-year trajectory for negotiated wage increases. In contrast, Italian governments proceeded unilaterally, with no attempts at collective bargaining coordination. Secondly, while the Italian government disbursed more fiscal resources through targeted compensatory measures, the Spanish government relied primarily on energy price controls and minimum wage revaluation, with lower overall fiscal expenditure. Finally, the distribution of inflation costs across population groups differed, with inflation in Spain being lower and having less regressive distributional effects than in Italy. We attribute the differing policy responses to the different partisan compositions and ideological orientations of the two governments. |
| Keywords: | inflation; collective bargaining; crisis; social dialogue; southern Europe; unions; wages |
| JEL: | N0 E6 |
| Date: | 2025–01–23 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:127196 |
| By: | Bernd Hayo; Matthias Neuenkirch; Manuel Walz |
| Abstract: | This documentation paper provides background information and basic descriptive statistics for a representative survey of the French, German, and Italian populations, focusing on attitudes towards and the demand for a digital euro conducted on our behalf by Dynata in November and December 2023. The survey is quota-based by gender, age, income, and region. To measure views on a digital euro, the survey controls for various characteristics, including the digitalisation of daily life, financial literacy, payment behaviour, attitudes towards European integration, and several socio-demographic characteristics. Additionally, three treatments are implemented. Treatment 1 highlights the differences between private and public money, Treatment 2 presents various hypothetical designs for a digital euro, and Treatment 3 introduces a digital euro holding limit. |
| Keywords: | Digital Euro, ECB, Monetary Policy, Money Demand, Payment Systems |
| JEL: | E41 E42 E51 E58 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:trr:wpaper:202504 |
| By: | Gabriella Conti; Rita Ginja; Petra Persson; Barton Willage |
| Abstract: | The motherhood penalty is well-documented, but what happens at the other end of the reproductive spectrum? Menopause—a transition often marked by debilitating physical and psychological symptoms—also entails substantial costs. Using population-wide Norwegian and Swedish data and quasi-experimental methods, we show that a menopause diagnosis leads to lasting drops in earnings and employment, alongside greater reliance on social transfers. The impact is especially severe for women with lower socioeconomic status. Increasing access to menopause-related health care can help offset these losses. Our findings reveal the hidden economic toll of menopause and the potential gains from better support policies. |
| JEL: | I10 J01 J13 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33621 |
| By: | Carolina Castaldi; Milad Abbasiharofteh; Sergio Petralia |
| Abstract: | The sustainability transition is high on the European agenda, with an emerging understanding that focusing on green technologies is not enough to achieve disruptive sustainability. An overall green transformation of current systems of production and consumption also requires market formation processes whereby green markets become viable economic opportunities for regions to specialize in. In this study, we draw on insights from evolutionary economic geography and geography of transitions to understand how regions develop green market specializations. To do so, we investigate two key sets of factors. First, we consider the evolutionary capability development process whereby new specializations emerge from existing related regional capabilities, in a path-dependent way. Second, we account for green public procurement initiatives to capture path-creation efforts in the form of deliberate regional policy directed towards green market formation. Our empirical analysis focuses on European regions in the period 2000-2020. We employ original trademark-based metrics to capture regional specializations in green markets and combine them with patent data to construct relatedness linkages between technologies and markets. Our results reveal that only a few regions have been able to develop specializations in green markets. We find that both prior capabilities in related technological domains and markets are positively associated with the emergence of these regional specializations. In addition, we also find that green public procurement is positively associated with the emergence of regional green market specializations. Our findings bear relevance for policy and research alike. |
| Keywords: | sustainability; regions; green markets; relatedness; public procurement; trademarks; patents |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2512 |
| By: | Morosow, Kathrin; Jalovaara, Marika |
| Abstract: | This study examines the heterogenous labour market effects of family leave policies for single and partnered mothers. Longer family leave has been shown to weaken women’s labour market positions and some studies have found heterogenous effects across population groups. However, whether the effect differs by partnership status remains unexplored. Using Finnish register data from 1989 to 2014 (ca. 2.5 million person-years) and controlling for selection into single motherhood by comparing estimates from OLS and FE models, this study compares single and patnered mothers’ unemployment and earnings consequent to extended family leaves. In line with predictions that single mothers may face greater work-family reconciliation issues or cumulative disadvantage leading to greater labour market penalties, the results showed that longer leave increases the length of unemployment for single mothers more than for partnered ones. This is not solely because of selection into single motherhood. Earnings penalties after family leave (net of employment status) are the same for single and partnered mothers. We conclude that similar long- lengths of family leave are penalised more among single mothers in terms of employment, which increases and reproduces social inequalities. This means that existing inequalities are reinforced by labour market absences supported by leave policies. |
| Date: | 2025–04–29 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:gbjt5_v1 |
| By: | Öz, Fikret |
| Abstract: | Digitalisation in the public sector presents both opportunities and challenges, impacting working conditions, work organisation and social dialogue, yet research on its effects remains limited, especially in Germany. In particular, the role of digitalisation in shaping work dynamics, workload distribution and the health of public-sector employees remains an understudied area of inquiry. "DIGIQU@LPUB", the European research project explored the impact of digitalisation on public administration, hospitals and the electricity sector, highlighting key concerns such as staff shortages, work intensification and the need for improved digital infrastructure. While digitalisation enhances efficiency and worklife balance, it also increases workload and stress, necessitating comprehensive training and stronger workplace agreements to address emerging challenges. A balanced approach is required to ensure that digitalisation fosters service quality and fair working conditions in shaping the future of digital work in public services. |
| Keywords: | Digitalisation, industry analysis, skilled labour shortage, employee participation, digital transformation, working conditions, representation of interests, Germany's public service |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iatfor:316695 |
| By: | Dominika Perdoch Sladká (Department of Sociology, Faculty of Social Studies, Masaryk University); Anna Matysiak (Interdisciplinary Center for Labour Market and Family Dynamics (LabFam), University of Warsaw) |
| Abstract: | As labour-replacing technologies, such as industrial robots and AI-driven automats, alter the structure of labour demand, the task content of occupations has emerged as an increasingly important indicator of socioeconomic position. This study explores how exposure to job automation influences short-term marital intentions, using data from 1, 345 respondents in the Czech Household Panel Survey (2015–2019) and occupational measures derived from the European Skills, Competences, Qualifications and Occupations (ESCO) Database. Our findings reveal a gendered pattern: men employed in highly routine-intensive occupations—indicative of greater vulnerability to automation—are more likely to report no plans to marry. Conversely, women in similar jobs are more likely to express positive marital intentions. These results highlight how technological change not only alters labour market outcomes but also shapes demographic behaviours through the lens of gender norms. The study contributes to broader debates on the interplay between socioeconomic disadvantage and family formation, suggesting that automation may be contributing to a growing group of ‘non-marriageable’ men. As technological change continues to transform the labour markets, especially with the rise of artificial intelligence, the number of individuals at risk of both economic and relational marginalization may further expand. |
| Keywords: | task content of jobs, marital plans, marriage, gender roles, Czechia |
| JEL: | J10 J11 J12 J13 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:war:wpaper:2025-13 |
| By: | Celli, Viviana; Crescenzi, Riccardo; de Blasio, Guido; Giua, Mara |
| Abstract: | This paper explores the role of governance in policy implementation, using the European Union (EU) Cohesion Policy as a case study. Leveraging a quasi-natural experiment in Italy, where certain projects were shifted from EU to national management, we evaluate the impact of governance structures on financial execution. Using a non-parametric generalization of the difference-in-differences estimator, we find that otherwise identical projects achieve better financial execution under EU governance. Projects reassigned to national management experience a significant slowdown in financial execution within ten months, with delays reaching nearly 20% after 24 months. These delays are particularly pronounced when projects are managed at the sub-national level rather than by the national government. Our findings contribute to the broader policy debate on the effectiveness of multi-level governance structures in public investment programs. |
| Keywords: | institutional quality; European Union; place-based policies; regional transfers; governance |
| JEL: | C21 O40 H54 R11 |
| Date: | 2025–02–24 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:127393 |
| By: | Marchal, Léa; Ourens, Guzmán; Sabbadini, Giulia |
| Abstract: | We show that high-skilled immigrants earn higher wages than comparable natives in exporting firms, while low-skilled immigrants do not. Using matched employer-employee and customs data from Portugal, we document a reversal of the migrant-native wage gap among high-skilled workers in exporting firms. We develop a model with heterogeneous firms and directed search, in which high-skilled immigrants lower export costs through destination-specific knowledge. The model yields an information premium that explains the wage gap reversal. We provide evidence consistent with this mechanism using information on the origin country of the workers and the destination country of the firm's exports. Our results identify a novel channel through which trade reduces wage inequality conditional on the skill level and origin country of the employees, and provide new micro-level evidence on the role of workers in shaping firm-level internationalisation. |
| Keywords: | Export, Firm, Immigrant, Wage |
| JEL: | F14 F22 F16 J15 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:dicedp:316450 |
| By: | Rodríguez-Pose, Andrés |
| Abstract: | This article examines the role of Swedish higher education institutions (HEIs) in economic development, focusing on the impact of their research capacities on local economic activity. Globally, HEIs are increasingly prioritising research, frequently at the expense of education and local economic engagement, as a means to climb the university ranking ladder. Sweden has been no exception. Our findings indicate that research intensity at Swedish HEIs does not correlate with higher local income. Rather, the opposite is the case: more emphasis on top-end research seems to undermine local income. We explore human capital and innovation as possible mechanisms for the limited local economic influence of Swedish HEIs. The results reveal that HEIs do not significantly improve local human capital. Moreover, despite Swedish HEIs holding intellectual property rights to foster innovation, the actual economic translation of this knowledge faces considerable hurdles, including a misalignment with industry needs and limited local business collaboration. |
| Keywords: | higher education institutions; Sweden; research capacity; innovation; human capital |
| JEL: | I23 I20 R11 |
| Date: | 2025–03–07 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:127188 |
| By: | Serebriakova, Alexandra (Sasha); Polzin, Friedemann; Sanders, Mark |
| Abstract: | A swift transition to renewable energy sources in the European Union is necessary for mitigating climate change. However, in a period of higher ECB policy rates meant to combat inflation, it is unclear how monetary policy impacts renewable energy installation. Prior research shows heterogeneous effects of policy rates on sectors with varying industrial characteristics, meaning that renewable technologies may be hit disproportionately by monetary contractions due to their investment requirements, life-cycle stage, and/or dependence on external finance. This paper uses fixed effects panel analysis of 27 European countries to look at the interactions between installed capacity of 10 utility-scale energy technologies, their characteristics, and monetary policy. Over the period of 2001-2021, fossil fuel, hydropower and nuclear technologies were positively affected by monetary contractions, while a 25 basis point rise in policy rates was associated with an 8% decrease in the new installed capacity of wind offshore plants, and a 26.5% decrease for solar PV. Significant interaction effects using measures of investment intensity and external finance dependence for energy technologies, yield evidence in favour of the interest rate and balance sheet channels of monetary policy transmission. To address endogeneity concerns, we use a two-stage least squares (2SLS) approach in an LCOE specification for the interest rate channel in the energy sector which confirms these findings. Our results suggest the existence of an unintended bias in contractionary monetary operations and central banks should consider flanking policies (such as preferred interest rates) to offset the disadvantage for renewables. |
| Keywords: | Monetary policy, renewable energy, interest rates, transmission channels, energy transition |
| JEL: | E43 Q42 O16 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:316394 |
| By: | Alessio Baldassarre (Ministry of Economy and Finance); Danilo Carullo (Ministry of Economy and Finance) |
| Abstract: | This paper evaluates the impact of a targeted tax credit introduced by the 2016 Stability Law and designed to stimulate investment in Italy’s Southern regions. Employing a new sub-national Computable General Equilibrium model tailored to Italy, the study captures national and regional effects by leveraging a Social Accounting Matrix that details the interconnections between commodities, sectors, and agents, encompassing both regional and national fiscal structures. The analysis considers the direct impacts of the tax credit on the targeted Southern regions as well as the indirect spillovers on non-beneficiary regions, contributing to the ongoing discussion on North-South convergence. Our findings show a modest increase in all components of national GDP, with more substantial regional effects, particularly in Southern Italy, with spillover benefits reaching the Center and North in the medium and long term. The regional fiscal multipliers are positive and align with the literature. Additionally, the cross-regional analysis reveals that Southern GDP growth positively influences Northern regions, indicating a degree of economic integration across Italy. The tax credit policy also appears to slow the widening of the North-South value-added gap, supporting gradual regional convergence. However, the measure does not achieve full fiscal self-coverage through increased tax revenues, resulting in a net fiscal cost for the central government. |
| Keywords: | CGE, policy impact, investment tax credit, regional convergence |
| JEL: | C63 D58 E22 H32 R58 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:ahg:wpaper:wp2025-21 |
| By: | Giovanni Abbiati; Erich Battistin; Paola Monti; Paolo Pinotti |
| Abstract: | We evaluate a labor market integration program that fast-tracked asylum seekers into the Italian labor market through personalized job mentoring, placement assistance, and on-the-job training. Leveraging randomized assignment across reception centers and individual-level administrative records, we find effects on employment rates of 10 percentage points, or 30% over the baseline, over a 18-month period. The program also improved job quality through increased access to fixed-term and open-ended contracts. Subsidized internships were a critical pathway to transitioning participants into standard employment. Survey data indicate that these effects reflect a net increase in employment, rather than a shift from informal to formal jobs. We also document broader benefits on socioeconomic integration, including language proficiency and social networks with native Italians. |
| Keywords: | asylum seekers, job mentoring, labor market integration, socioeconomic integration. |
| JEL: | C93 D04 F22 I38 J15 J61 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11844 |
| By: | MARTINA PARDY; Andrés Rodríguez-Pose |
| Abstract: | This paper analyses how trade influences intra-regional income inequality across Europe’s NUTS-2 regions. Drawing on newly compiled datasets capturing both inter-regional trade and local-level inequality for all EU member states plus the UK, we employ an econometric framework —complete with Instrumental Variable estimations and robust sensitivity analyses— to gauge the impact of trade on regional interpersonal inequality. In addition to examining aggregate trade, we distinguish between various trade channels, including exchanges within the EU versus those with the rest of the world, links to neighbouring regions versus non-neighbours, and domestic versus international flows. Our findings reveal that higher levels of trade are positively associated with changes in regional income inequality, as measured by the Gini coefficient. Crucially, this link depends on trading partners: trade within a single country, within the EU, and with non-neighbouring regions correlates with rising inequality, whereas international trade, trade with non-EU partners, or trade with neighbouring regions shows no statistically significant effect. These conclusions withstand a battery of robustness checks, including new control variables and a population-weighted approach, further underscoring the role that particular types of trade play in shaping regional income disparities. |
| Keywords: | Trade, interpersonal inequality, regions, Europe |
| JEL: | D63 F14 R13 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2511 |
| By: | Jasna Tonovska (Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje); Elena Makrevska Disoska (Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje); Katerina Toshevska-Trpcevska (Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje); Viktor Stojkoski (Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje) |
| Abstract: | Purpose. Digitally delivered services have become a pivotal component of global trade, accounting for over 50% of total services exports worldwide as of 2020 (Mourougane, 2021). But how is this digital trade related to the structure of an economy? Despite the growing significance of digital trade, the relationship between trade intensity in digitally delivered services and the structure of an economy remains underexplored (Mourougane, 2021; Dong and Xu, 2022; Zhou et al., 2023; Chiappini and Gaglio, 2024). In this paper, we fill this research gap by examining how exports per capita of digitally delivered services relate to multidimensional economic complexity, encompassing measures for the trade and research structure of an economy (Stojkoski et al., 2023). Understanding this relationship is crucial for policymakers and stakeholders aiming to enhance competitiveness in the digital economy (Hidalgo and Hausmann, 2009; Hausmann et al., 2014; Hartmann et al., 2017; Hidalgo, 2021; Romero and Gramkow, 2021). Design/methodology/approach. We employ a panel regression analysis with time-fixed effects to control unobserved heterogeneity and temporal dynamics across countries and over time. We follow the Handbook on Measuring Digital Trade (Mourougane, 2021) and define digitally delivered services as all international trade transactions that are delivered remotely over computer networks. These range from providing online educational services to cloud computing subscriptions (Stojkoski et al., 2024). Using this definition, we collect data from the BATIS WTO dataset on services (Fortanier et al., 2017) and Eurostat mappings (European Commission). Statistical Office of the European Union, 2021) to calculate per capita exports of digitally delivered services for over 120 countries from 2005 to 2020. We also use data on the Economic Complexity Index (ECI) for the research and trade dimensions from the Observatory of Economic Complexity (Simoes and Hidalgo, 2011). These indexes compare the economic structure of a country to an ensemble of other countries, with higher values implying that the country is more sophisticated compared to the ensemble. We then employ panel regression analysis on average data segmented into four four-year periods: 2005-2008, 2009-2012, 2013-2016, and 2017-2022 in which the dependent variable is the log of the digitally delivered services exports per capita. This methodological approach allows us to investigate the correlation between exports per capita and the economic complexity indices derived from trade and research data, and to study their interaction in explaining digital trade. Findings. The analysis reveals a robust positive relationship between economic complexity and digitally delivered services exports per capita (see Table 1 for the regression results). Specifically, according to our final model (including all covariates, Table 1, column 7), a one-unit increase in trade ECI is associated with a 0.733 increase in the log of digitally delivered services exports per capita (p |
| Keywords: | Digital trade, Economic complexity, ICT, Panel data analysis |
| JEL: | F10 F13 F14 C23 F63 |
| Date: | 2024–12–15 |
| URL: | https://d.repec.org/n?u=RePEc:aoh:conpro:2024:i:5:p:88-90 |
| By: | Gil-Hernández, Carlos J.; Salas-Rojo, Pedro; Vidal, Guillem; Villani, Davide |
| Abstract: | Wealth is a central determinant of life chances and intergenerational status persistence in modern societies. Despite increasing attention, sociologists traditionally overlooked its role in class-based economic disparities, while most economists focused on the elites’ accumulation. This article combines sociological and economic perspectives to test whether big occupational classes, the most standardised and operationalisable approach, depict the wealth distribution. Drawing from the Luxembourg Wealth Study (2002–2018) in five European countries, we explore (1) how wealth is distributed and stratified by big occupational classes over time and cross-nationally and (2) to what extent classes account for aggregate wealth inequality trends compared with income. Unlike bold claims on class 'death' or 'decomposition', inequality of outcomes in wealth accumulation is firmly rooted across big occupational classes in contemporary capitalism, potentially harming social mobility in future generations. Still, occupational classes better capture between-group income inequality and stratification than wealth, emphasising the importance of economic resources beyond labour market attachment. Against the backdrop of previous research and our findings, we discuss the role of wealth in contemporary class analysis. |
| JEL: | J1 |
| Date: | 2025–02–20 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:127479 |