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on Microeconomic European Issues |
| By: | Marco Clemens (Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier University); Laszlo Goerke (Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier University) |
| Abstract: | This study provides the first comprehensive investigation of the relationship between trade union membership and non-performance-oriented bonuses. We expect a positive impact of union membership because members benefit from special entitlements, increased bargaining power and informational advantages. Using data from the German Socio-economic panel (GSOEP), we observe that union members are more likely to receive at least one bonus payment per year, a higher number of bonuses, and a higher amount than comparable non-members. We also observe the positive union membership effect for employees covered by collective bargaining or co-determination via works councils. Employing a novel instrumental variable, we find evidence of a positive effect of union membership on the number and level of bonus payments. Furthermore, higher bonuses do not go along with wage decreases. |
| Keywords: | bonus payments, collective bargaining, GSOEP, trade union membership |
| JEL: | J31 J33 J51 J52 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:iaa:dpaper:202503 |
| By: | Petri Böckerman; Mika Haapanen; Christopher Jepsen |
| Abstract: | Using high-quality Finnish register data and a regression discontinuity approach, we study the health effects of reaching the legal drinking ages of 18 and 20. Our results show that at age 18, when beer, wine, and car driving become legal, mortality and hospitalizations increase discontinuously, especially among men, and they are driven by alcohol and traffic-related causes. At age 20, when spirits become legal, alcohol-related deaths and accidents increase for men, and suicide risk rises for women. We also find meaningful adverse spillover effects on younger siblings. When an older sibling turns 18, their younger brothers face increases in alcohol-related mortality, traffic-related hospitalizations, and suicide attempts, while younger sisters experience more alcohol-related hospitalizations. Spillovers at age 20 are weaker but persist for younger brothers. |
| Keywords: | drinking age, legal age, mortality, hospitalizations, sibling effects, regression discontinuity |
| JEL: | I12 K32 H50 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11907 |
| By: | Böckerman, Petri (University of Jyväskylä); Haapanen, Mika (University of Jyväskylä); Jepsen, Christopher (University College Dublin) |
| Abstract: | Using high-quality Finnish register data and a regression discontinuity approach, we study the health effects of reaching the legal drinking ages of 18 and 20. Our results show that at age 18, when beer, wine, and car driving become legal, mortality and hospitalizations increase discontinuously, especially among men, and they are driven by alcohol and traffic-related causes. At age 20, when spirits become legal, alcohol-related deaths and accidents increase for men, and suicide risk rises for women. We also find meaningful adverse spillover effects on younger siblings. When an older sibling turns 18, their younger brothers face increases in alcohol-related mortality, traffic-related hospitalizations, and suicide attempts, while younger sisters experience more alcohol-related hospitalizations. Spillovers at age 20 are weaker but persist for younger brothers. |
| Keywords: | sibling effects, hospitalizations, mortality, legal age, drinking age, regression discontinuity |
| JEL: | I12 K32 H50 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17924 |
| By: | Anders Humlum; Jakob Munch; Mette Rasmussen |
| Abstract: | This paper examines if active labor market programs help unemployed job seekers find jobs using a novel random caseworker instrumental variable (IV) design. Leveraging administrative data from Denmark, our identification strategy exploits that (i) job seekers are quasi-randomly assigned to caseworkers, and (ii) caseworkers differ in their tendencies to assign similar job seekers to different programs. Using our IV strategy, we find assignment to classroom training increases employment by 29% two years after initial job loss of compliers. This finding contrasts with the conclusion reached by ordinary least squares (OLS), which suffers from a negative bias due to selection on unobservables. The employment effects are driven by job seekers who complete the programs (post-program effects) rather than job seekers who exit unemployment upon assignment (threat effects), and the programs help job seekers change occupations. We show that job seekers exposed to offshoring – who tend to experience larger and more persistent employment losses – also have higher employment gains from classroom training. By estimating marginal treatment effects, we conclude that total employment may be increased by targeting training toward job seekers exposed to offshoring. |
| JEL: | I28 J08 J24 J68 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33807 |
| By: | Kilic, Tugce |
| Abstract: | This study investigates how the economic structure of host regions shapes the labor market impacts of refugee inflows, focusing on the case of the Syrian refugee influx into Germany in 2014-2015. Utilizing a fuzzy difference-in-differences approach, the analysis introduces a novel measure of sectoral diversification to assess local absorptive capacity. The results show that sectoral diversification plays a significant role in moderating short-term labor market outcomes. Counties with less diversified employment structures experience greater adverse impacts on non-German workers, while more diversified regions are better able to absorb new arrivals and mitigate unemployment pressures. These results underscore the importance of considering local economic structures in the regional allocation of refugees and the design of integration policies. |
| Keywords: | Immigration, Labor market, Asylum seekers, Syrian refugees, Germany |
| JEL: | F22 J21 J61 C21 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ipewps:319062 |
| By: | Narazani, Edlira |
| Abstract: | In December 2024, Spain's government reached an agreement with the country's major trade unions to reduce the standard workweek to 37.5 hours without wage cuts by the end of 2025. This paper provides an ex-ante assessment of the proposed reform using EUROLAB, a discrete choice labour supply model based on EU-SILC 2022 data for Spain. Simulations reveal modest increases in total hours worked, mainly via higher labour market participation, with notable gains among low-income women, non-parents, older, and younger workers. Fiscal simulations show a 1.3% increase in tax revenues and a 0.19% reduction in social expenditures, resulting in a budget surplus of 4.63%. The reform also slightly improves income distribution, including a reduction in in-work poverty and a slight narrowing of income inequality. However, the analysis does not account for fixed costs (e.g. childcare and commuting), equilibrium labour demand responses, and broader effects of increased leisure time on consumption and indirect taxation - elements to be addressed in future research. |
| Keywords: | Working time reforms, labour Supply, Discrete Choice Model |
| JEL: | J20 J22 J23 J13 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1614 |
| By: | David Card (University of California, Berkeley); Francesco Devicienti (University of Torino and Collegio Carlo Alberto); Mariacristina Rossi (COVIP); Andrea Weber (Central European University) |
| Abstract: | The gender wage gap rises with experience. To what extent do firm policies mediate this rise? We use administrative data from Italy to identify workers’ first jobs and compute wage growth over the next 5 years. We then decompose the contribution of first employers to the rise in the gender wage gap, taking account of maternity events affecting a third of female entrants. We find that idiosyncratic firm effects explain 20% of the variation in early career wage growth, and that the sorting of women to slower-growth firms accounts for a fifth of the gender growth gap. Women who have a child within 5 years of entering work have particularly slow wage growth, reflecting a maternity effect that is magnified by the excess sorting of mothers-to-be to slower-growth firms. Many entrants change jobs within their first 5 years and we find that the male-female difference in early career wage growth arises from gaps for both movers and stayers. The firm components in wage growth for stayers and movers are highly correlated, and contribute similar sorting penalties for women who stay or leave. |
| Keywords: | Gender gaps; Firm effects; Maternity; Matched Employer-Employee Data |
| JEL: | J00 J23 J24 J31 J38 J58 L13 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:crm:wpaper:2510 |
| By: | Ulrike Famira-Mühlberger (WIFO); Thomas Horvath; Thomas Leoni (University of Applied Sciences Wiener Neustadt); Martin Spielauer (WIFO); Viktoria Szenkurök (WIFO); Philipp Warum (WIFO) |
| Abstract: | Europe's demographic shift is putting increasing pressure on long-term care (LTC) systems and raising concerns about the sustainability of LTC financing. This paper analyses Austria's LTC system, particularly its universal long-term care allowance (LTCA), and uses a dynamic microsimulation model to project LTCA expenditure under four scenarios up to the year 2080. Using pooled data from the Survey of Health, Ageing and Retirement in Europe (SHARE), we estimate care needs and prevalence rates across all seven care allowance levels. This enables us to project both public spending and individual lifetime costs, disaggregated by sex and education. Although total LTCA expenditure is projected to rise due to population ageing, scenario comparisons show that compositional shifts – such as higher educational attainment, which is linked to lower care needs, and gains in healthy life expectancy accompanying mortality im- provements – can significantly mitigate cost growth. The projected total expenditure increases range from 29 percent in a scenario where increasing life expectancy – as assumed in official population projections – is neglected, to 185 percent in a scenario accounting for rising life expectancy but no future health gains. The findings also highlight the impact of longevity and education on the distribution of individual lifetime costs. Beyond its policy implications for LTC planning, the study demonstrates the advantages of dynamic microsimulation in capturing individual-level heterogeneity, offering a significant improvement on traditional macrosimulation approaches. |
| Date: | 2025–05–26 |
| URL: | https://d.repec.org/n?u=RePEc:wfo:wpaper:y:2025:i:705 |
| By: | Dreoni Ilda (European Commission - JRC); Serruys Hannes (European Commission - JRC); Manso Luis (European Commission - JRC); Tudo Jose; Amores Antonio F (European Commission - JRC) |
| Abstract: | Consumption taxes are a crucial revenue source for EU Member States, yet they also potentially have non-negligible impact on income distribution. The EU's tax-benefit microsimulation model, EUROMOD, has recently been extended to simulate consumption taxes (CT) across all 27 EU countries allowing researchers and practitioners to examine carefully their design and assess trade-offs. The CT simulation uses consumption patterns derived from Household Budget Survey (HBS) microdata, which are imputed into EUROMOD's input data using the European Union Statistics on Income and Living Conditions (EU-SILC) microdata which contains detailed socio-demographic and socio-economic information. The imputation process employs a statistical matching procedure that joins HBS (the donor survey) with EU-SILC (the recipient survey) using a predictive mean matching method. Expenditure data are integrated into the recipient survey using a multi-stage procedure that involves the use of estimated probit and linear regression models combined with a distance-hot deck approach for the final observation mapping. This methodology offers enhanced results compared to traditional approaches such as only regression-based or distance-based. The imputation performance in distributional terms and the macro validation of the resulting datasets are thoroughly examined. We assess the impact of potential distortions from the statistical matching process by conducting a set of exploratory and comparative analyses, and also by using an administratively matched dataset for Czechia from 2019 to 2021. Our findings in this specific case indicate that, on average, the majority of imputed expenses are exactly the same when comparing the original HBS data with the matched SILC data that includes fitted expenditures. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:taxref:202502 |
| By: | Laura Conti; Marco Francesconi; Giulio Papini; Michel Serafinelli; Gabriella Conti |
| Abstract: | This paper documents how the local labor market (LLM) responds to a change in touristic attractiveness. Leveraging largely underutilized data from several sources, we exploit a unique classification of Italian localities based on their main touristic assets and aggregate trends in foreign tourists' choices in a shift-share research design. Looking at all LLMs, we find a strong positive relationship between changes in attractiveness and changes in the local tourism-related economic activity, with a positive impact on tourism expenditure and tourism employment, but no effect on total employment. In high-unemployment LLMs, however, we find evidence of sizable total employment effects and large indirect effects generated through industries related to tourism and firms in the nontradable sector. We observe no effects on wage growth. We discuss our results in the context of the current policy debate on the role of tourism in the development of the local economy. |
| Keywords: | tourism, job growth, unemployment, local spillovers, heterogeneity |
| JEL: | R11 J21 R12 R23 Z30 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11914 |
| By: | Molina, Jose Alberto; Velilla, Jorge |
| Abstract: | This paper analyzes the evolution of working from home across European countries using data from the European Working Conditions Survey (2005–2021). The study documents a substantial increase in working from home, particularly during the COVID-19 pandemic, with notable cross-country and gender differences. It also examines how working from home correlates with individual characteristics such as gender, age, education, employment status, occupation, and household composition. We find that self-employment, digital work intensity, and higher education are consistently associated with greater working from home prevalence. Conversely, public sector employment and full-time contracts are negatively related to working from home. |
| Keywords: | work from home; remote work; telework; EWCS data |
| JEL: | D0 J01 |
| Date: | 2025–05–27 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124865 |
| By: | Degenhardt, Felix (University of Potsdam); Nimczik, Jan Sebastian (European School of Management and Technology (ESMT)) |
| Abstract: | We examine whether gig jobs in online food delivery (OFD) are a stepping stone for refugees entering the Austrian labor market. Our identification strategy combines the quasi-random assignment of refugees to Austrian regions with the expansion of gig firms across the country. The local availability of OFD jobs at the time of access to the labor market initially accelerates job finding among refugees. Subsequently, however, gig workers remain in low-paid, unstable jobs with low career prospects, while the employment rate of refugees without gig opportunities catches up. The local availability of gig jobs negatively affects human capital investments and job search behavior, even among refugees outside the gig economy. |
| Keywords: | employment restrictions, refugees, gig work, labor market integration |
| JEL: | J15 J61 J81 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17928 |
| By: | Jaroslav Vlach (Faculty of Economics) |
| Abstract: | This study explores the financial dynamics, strategic growth, and innovation within the sugar production sector in Central and Eastern Europe (CEE) over the period 2013-2022. It focuses on six countries-Czech Republic, Austria, Germany, Poland, Hungary, Slovakia and analyzes 14 major sugar-producing companies using a combined methodological approach based on time-series trend analysis and Principal Component Analysis (PCA). Key financial metrics such as capital structure, working capital, operating revenue, profitability, and employment are examined to assess differences in performance across firms and countries. The research is framed by three central questions that investigate the interaction between company size, financial stability, national market context, and development potential. A major turning point for the sector-the abolition of the EU sugar quota system in autumn 2017-marked the beginning of a fully liberalized market environment, intensifying global competition and reshaping regional production strategies. The results indicate that larger firms tend to provide financial stability but exhibit limited growth trajectories, while smaller companies are more adaptable and often demonstrate stronger development potential. National differences are also significant: the Czech Republic and Poland emerge as dynamic and competitive markets; Austria and Germany reflect mature industries with constrained growth prospects; Hungary and Slovakia show financial challenges yet offer opportunities for development. By identifying structural trends and regional disparities, the study contributes to a deeper understanding of the post-quota sugar market. It offers relevant insights for policymakers and industry leaders aiming to balance financial health, innovation, and sustainability in order to ensure the sector's long-term competitiveness in a volatile global economy. |
| Keywords: | principal component analysis, dynamics of the sugar market, financial stability, company development, equity, Central and Eastern Europe |
| JEL: | C38 G30 L66 Q13 |
| Date: | 2025–04–22 |
| URL: | https://d.repec.org/n?u=RePEc:boh:wpaper:01_2025 |
| By: | Bjørndal, Endre (Dept. of Business and Management Science, Norwegian School of Economics); Bjørndal, Mette (Dept. of Business and Management Science, Norwegian School of Economics); Hovdahl, Isabel (Dept. of Business and Management Science, Norwegian School of Economics); Tselika, Kyriaki (Dept. of Business and Management Science, Norwegian School of Economics) |
| Abstract: | The European Union aims to strengthen electricity market integration as part of its transition to a low-carbon energy system, with substantial investments in cross-border transmission infrastructure. This paper presents the first empirical analysis of a new interconnector, NordLink, on price convergence between southern Norway (NO2) and Germany. Using a novel panel quantile regression model, we estimate the impact of NordLink on the full distribution of hourly electricity prices in both markets. We find that the cable raised average prices in NO2 and lowered them in Germany, but with substantial heterogeneity across the price quantiles. In NO2, lower-quantile prices fell while upper-quantile prices rose. In Germany, the largest reductions occurred in the upper price quantiles. Regarding volatility, NordLink increased price fluctuations in NO2 and reduced them in Germany. We also find that the interconnector has altered the relationship between electricity prices and key fundamentals. Notably, electricity prices in NO2 have become substantially more exposed to gas prices post-NordLink, while Germany has become less exposed. Our findings highlight that market integration influences not only average prices, but also the dynamics and structure of electricity prices, with important implications for policymakers and market participants navigating the future of cross-border transmission in Europe. |
| Keywords: | Electricity prices; econometric analysis; interconnector; price volatility; renewables |
| JEL: | C31 C33 Q21 Q41 |
| Date: | 2025–05–23 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:nhhfms:2025_019 |
| By: | Joan Costa-i-Font; Anna Nicinska; Melcior Rossello Roig |
| Abstract: | We compare inequality and social mobility trends in European countries exposed to Soviet Communist (SC) regimes with those not exposed, using similar welfare mea-sures. We draw upon a rich retrospective dataset that collects relevant welfare measures across regimes, including information on living space and self-reported health, and relevant inequality and mobility indices for ordinal and categorical data. Our results suggest evidence of comparable welfare inequality trends in countries exposed to SC and those unexposed. Although individuals exposed to SC enjoyed higher levels of social mobility, differences in inequality across countries exposed to different regimes were negligible. A plausible explanation lies in the countervailing role of the welfare state in countries not exposed to SC and the inefficiency of the bureaucratic allocation of private goods aimed at reducing inequality in countries exposed to SC. |
| Keywords: | Inequality, welfare, living space, self-reported health, health inequality, education; social mobility, Soviet Communism, bureaucracies, European Communist Regimes |
| JEL: | I14 H53 I13 I38 N34 P20 P29 P36 P46 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11916 |
| By: | Grotefels, Susan; Evrard, Estelle; Hartz, Andrea; Krzymuski, Marcin; Sielker, Franziska; Zillmer, Sabine; Bockhorn, Britta |
| Abstract: | The Treaty on the Functioning of the EU promotes not only a common market but also economic, social and territorial cohesion and access to public services, including cross-border regions. Despite the objective of the Treaty on the Functioning of the EU to promote, inter alia, cohesion in cross-border regions, administrative and legal obstacles still hinder the development of joint cross-border living areas, affecting 150 million EU citizens. To overcome these obstacles, the EU has introduced a regulation that establishes a facilitation tool to resolve legal and administrative obstacles in cross-border interactions. The adopted BRIDGEforEU regulation is characterised by its voluntary nature and process orientation, and cases can be halted even without a solution being found. This affects the regulation's effectiveness, which may be further weakened by its unclear scope, limited capacities and risks of duplication. Its success depends on clear governance, sufficient resources and a cooperative mindset at all levels. |
| Abstract: | Der Vertrag über die Arbeitsweise der Europäischen Union fördert nicht nur einen gemeinsamen Markt, sondern auch den wirtschaftlichen, sozialen und territorialen Zusammenhalt sowie den Zugang zu öffentlichen Dienstleistungen - einschließlich grenzüberschreitender Regionen. Obwohl der Vertrag unter anderem darauf abzielt, den Zusammenhalt in grenzüberschreitenden Regionen zu fördern, erschweren nach wie vor administrative und rechtliche Hürden die Entwicklung gemeinsamer grenzüberschreitender Lebensräume und beeinträchtigen das Leben von 150 Millionen EU-Bürgerinnen und -Bürgern. Um diese Hindernisse zu überwinden, hat die EU mit der BRIDGEforEU-Verordnung ein Instrument eingeführt, mit dem die Überwindung rechtlicher und administrativer Hindernisse bei grenzüberschreitenden Beziehungen erleichtert werden soll. Die verabschiedete BRIDGEforEU-Verordnung ist durch ihren freiwilligen Charakter und ihren prozessorientierten Ansatz gekennzeichnet; ein begonnener Prozess kann auch dann beendet werden, wenn keine Lösung erzielt wurde. Dies beeinträchtigt die Wirksamkeit der Verordnung, die zusätzlich durch ihren unscharfen Anwendungsbereich, begrenzte Kapazitäten und das Risiko von Doppelstrukturen geschwächt werden könnte. Ihr Erfolg hängt von klaren Governance-Strukturen, ausreichenden Ressourcen und einer kooperativen Haltung auf allen Ebenen ab. |
| Keywords: | European border regions, cross-border obstacles, European integration, cross-border functional areas, EU territorial policies |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:arlpos:319079 |