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on Microeconomic European Issues |
| By: | Mongelli Ignazio (European Commission - JRC); Avila Uribe Antonio (European Commission - JRC); Maes Joachim; Duran Laguna Jorge; Feyen Luc (European Commission - JRC); Ciscar Martinez Juan Carlos (European Commission - JRC) |
| Abstract: | This report examines the magnitude and geography of the economic consequences of climate risks in European NUTS3 regions using a new regional economic growth model that accounts for spatial spillover effects. The assessment, based on the JRC PESETA V project, focuses on a 2⁰C scenario of global warming by 2050 and considers seven climate impact categories: labor productivity, droughts, coastal flooding, river flooding, storms, wildfires and transport infrastructure. By 2050, the 2°C global warming scenario could result in an average 0.7% EU GDP loss (0.8% EU consumption loss), accumulating to an undiscounted €2.5 trillion in GDP losses, highlighting a significant economic burden. The results also indicate that there is a large spatial asymmetry in climate risks, affecting more regions in Southern and Eastern European countries (Greece, Cyprus, Croatia, Portugal, Spain and Italy). Northern European regions are more vulnerable to river and coastal flooding, while Southern and Eastern European regions are disproportionately affected by productivity losses, droughts and coastal flooding. The current allocation of European cohesion funds partially mitigates this asymmetric pattern of climate risks. |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc143093 |
| By: | Elkhateeb, Yasmine (J-PAL MENA); Turati, Riccardo (Universitat Autònoma de Barcelona); Valette, Jérôme (CEPII, Paris) |
| Abstract: | Does immigration challenge the identities, values, and cultural diversity of receiving societies? This paper addresses this question by analyzing the impact of immigration on cultural diversity in Europe between 2004 and 2018. It combines regional cultural diversity indices derived from the European Social Survey with immigration shares from the European Labor Force Survey. The results indicate that immigration increases the salience of birthplace identity along cultural lines, fostering a shift toward nativist identities among the native population. These identity shifts, in turn, trigger a process of cultural homogenization among natives. This effect is stronger in regions receiving culturally distant immigrants. It reflects a process of convergence toward the values of highly skilled liberal natives and divergence from those of low-skilled conservative immigrants. |
| Keywords: | cultural diversity, social identity, immigration |
| JEL: | F22 D03 D72 Z10 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18261 |
| By: | Papathanasopoulos, Athanasios; Varoutas, Dimitris |
| Abstract: | This study evaluated the regulatory efficiency and performance of Over-the-Top (OTT) streaming platforms across ten European countries—France, Germany, Ireland, Netherlands, UK, Norway, Serbia, Greece, Italy, and Turkey—using a two-stage Network Data Envelopment Analysis (NDEA) framework. It also compared Europe to a global dataset that included countries from North America, South America, the Middle East & North Africa, and Asia-Pacific. The results from Stage revealed that European countries with modernized legislation, such as the UK, Germany, and France, demonstrated superior regulatory efficiency compared to those with outdated frameworks, such as Serbia. This highlighted the importance of up-to-date regulations, including net neutrality and data protection policies like GDPR, in fostering a strong regulatory environment. In Stage and the overall efficiency rankings (θoverall), the UK emerged as the top performer in Europe with a score of 0.5454, driven by its coherent regulatory framework, effective taxation policies, and robust market competition. Germany (0.5171) and Italy (0.4449) followed, benefiting from structured regulations and diverse OTT offerings. However, countries like Serbia (0.0484), Greece (0.1527), Ireland (0.1243) and the Netherlands (0.1710) lagged, reflecting inconsistencies in translating regulatory strengths into market success. Globally, Europe achieved a mean regulatory efficiency score of 0.7823, surpassing other regions in Stage 1 except North America, but its overall efficiency (θoverall = 0.3059) trailed North America (0.5631) and Asia-Pacific (0.3746). Europe's fragmented regulatory frameworks across countries and inconsistent implementation of taxation of international OTT platforms and OTT-specific policies hindered its ability to achieve unified market performance, despite its regulatory strengths. The findings underscored the need for European countries to adopt cohesive taxation frameworks for international streaming platforms, modernized OTT-specific regulations, and a more integrated regulatory approach to enhance the overall market efficiency. |
| Keywords: | OTT, OTT regulation, Network DEA, EU, Europe, Media policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itse25:331297 |
| By: | Storm, Eduard (Institute for Advanced Studies (IHS) and RWI – Leibniz Institute for Economic Research); Gonschor, Myrielle (Kienbaum Consultants); Schmidt, Marc Justin (TU Dortmund, RTG 2484) |
| Abstract: | We study how artificial intelligence (AI) affects workers’ earnings and employment stability, combining German job vacancy data with administrative records from 2017–2023. Identification comes from changes in workers’ exposure to local AI skill demand over time, instrumented with national demand trends. We find no meaningful displacement or productivity effects on average, but notable skill heterogeneity: expert workers with deep domain knowledge gain while non-experts often lose, with returns shaped by occupational task structures. We also document AI-driven reinstatement effects toward analytic and interactive tasks that raise earnings. Overall, our results imply distributional concerns but also job-augmenting potential of early AI technologies. |
| Keywords: | AI, Online Job Vacancies, Skill Demand, Worker-level Analysis, Employment, Earnings, Expertise |
| JEL: | D22 J23 J24 J31 O33 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:ihs:ihswps:number61 |
| By: | Rodriguez-Pose Andrés; Dijkstra Lewis (European Commission - JRC); Dorati Chiara (European Commission - JRC) |
| Abstract: | Over the past two decades, support for Eurosceptic parties has climbed from fringe to nearly one third of voters. Promising renewed prosperity through less European integration, these parties imply Euroscepticism is a ‘free lunch.’ Drawing on an original panel of 1, 166 European NUTS 3 regions (2004 2023) and using fixed , random effects, and difference in differences designs, we test how rising Euroscepticism connects with regional economic and demographic outcomes. We track GDP per capita, productivity, employment, and population growth. We find that a region 10 points more Eurosceptic than another could have ended up with GDP per capita roughly 5% lower than the less Eurosceptic region, as the negative economic influence of Euroscepticism compounds across cycles and intensified after the financial and austerity crises. The same applies for productivity and employment. Demographic impacts are smaller but point in the same direction. Even without governing, Eurosceptic support appears to deter investment and raise uncertainty, deepening the very stagnation that fuels discontent. There is no free lunch: political backlash against European integration carries measurable costs for the regions that embrace it. |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:termod:202509 |
| By: | Yan Chen; Jiaxiong Yao |
| Abstract: | Most European countries have a single national minimum wage. An increase in minimum wage implies shocks of different magnitudes to sectors and subnational regions. Using sectoral and regional variations of minimum wage to average wage ratios in European countries, we estimate the dynamic and heterogeneous treatment effects of minimum wage changes on employment through local projections and generalized random forests. We find that the average employment effects of minimum wage increases tend to be negligible in the short term but negative in the medium to long term. The employment effects are heterogeneous in gender, age, the size of the minimum wage increase, and the minimum wage to average wage ratio. Minimum wage increases appear to have a threshold effect on employment at the sectoral level. The employment effects become negative when the minimum wage is above 35 percent of the sectoral average wage. |
| Keywords: | Minimum wage; employment; treatment effect |
| Date: | 2025–11–14 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/241 |
| By: | Agata Kałamucka (University of Warsaw, LabFam - Interdisciplinary Centre for Labour Market and Family Dynamics); Anna Matysiak (University of Warsaw, LabFam - Interdisciplinary Centre for Labour Market and Family Dynamics); Beata Osiewalska (University of Warsaw, LabFam - Interdisciplinary Centre for Labour Market and Family Dynamics; Cracow University of Economics) |
| Abstract: | Objective: This study examines the relationship between men's and women's working-time flexibility and relationship dissolutions (cohabitating and married couples) in Germany. Background: Globalisation and technological advancements have popularised flexible working hours, necessitating a deeper understanding of their implications on family dynamics and relationship stability. Employee-oriented flexibility, which allows workers to adjust their schedules to meet family needs, generally supports work-family balance and reduces conflict, yet it can also blur the boundaries between work and personal life and may reduce family time. On the other hand, employer-oriented flexibility, characterised by unpredictable hours, can heighten marital strain and increase the risk of relationship dissolution. Method: Using data from the German Socio-Economic Panel (SOEP), the final sample consists of 15, 519 cohabiting and married couples, and the number of relationship dissolutions during the analysed time period is 1, 463. The study employs event history analysis to explore the relationship between working-time flexibility and relationship dissolutions, differentiating by gender, parental status and the age of the youngest child. Results: Preliminary results indicated that employee-oriented flexibility of men tends to lower the risk of dissolution among couples with more than 2 children, especially when they are young, highlighting its benefits in facilitating family responsibilities. Any significant results on employer-oriented flexibility have not been found in comparison to fixed schedules. Conclusion: Fathers’ more than mothers’ working-time flexibility relates to lowering the risk of relationship dissolutions, especially when children are young and in families with two or more kids, suggesting that men’s control over their schedules may facilitate greater involvement at home and alleviate care burdens on women. |
| Keywords: | working-time flexibility, couples, flexible hours, dissolutions, Germany |
| JEL: | J11 J17 J18 J24 J81 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:war:wpaper:2025-28 |
| By: | Gonzalez Vazquez Ignacio (European Commission - JRC); Fernandez Macias Enrique (European Commission - JRC); Wright Sally; Villani Davide (European Commission - JRC) |
| Abstract: | This report presents new evidence on the platformisation of work in the European Union, examining the prevalence and potential impacts of digital tools, digital monitoring and algorithmic management. The report is based on data from the new AIM-WORK survey, conducted in 2024-2025 and representative of the working age population in all 27 EU Member States. The data reveals that over 90% of EU workers use digital devices, with the use of AI tools at work, particularly AI chatbots powered by Large Language Models, rising rapidly: on average, a third of EU workers report using AI for work-related purposes. Digital monitoring is common, particularly for working hours and entry or exit. Algorithmic management is less prevalent but also quite significant, taking diverse forms, including automated task allocation and performance evaluation. We identify two distinct types of platformisation, typical respectively of industrial and office workplaces. Our evidence indicates that some types of platformisation have no significant implications for working conditions. However, the full platformisation of work, which includes simultaneously all the forms of digital monitoring and algorithmic management that we identify on the basis of the data, is associated with generally worse working conditions. This applies also to the forms of platformisation more prevalent in manual work settings. |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc143072 |
| By: | Juan S. Mora-Sanguinetti; Cristina Peñasco; Rok Spruk |
| Abstract: | This paper analyses the effect of “green regulations” i.e. those aimed at mitigating the effects of climate change and environmental externalities, on innovation, using a novel regulatory database covering the period 2008 – 2022 for Spain. The database identifies regulations at both the national and regional levels through textual analysis. Employing a panel data approach, we assess how different types of environmental regulations—particularly those related to renewable energy—affect firm-level innovation activities. Our findings indicate that national level green regulations have a positive effect on innovation, whereas regional level regulations show mixed or negligible impacts. Importantly, the interaction between national and regional regulations, measuring the simultaneous production of legal texts at both levels can foster innovation but at a reduced pace with respect to the sole production of regulation at the national level. Given the results for regional-level regulation, our results provide evidence in favour of the hypothesis that regulatory fragmentation due to unequal, overlapping, inconsistent or conflicting procedure across jurisdictions may diminish these benefits. |
| Keywords: | Green Regulation, Innovation, Porter Hypothesis, Renewable Energy, Business |
| JEL: | K32 Q5 O44 O13 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:banfra:1016 |
| By: | Marco Schmandt |
| Abstract: | I define a local measure of renter housing affordability in Germany as the affordable proportion of advertised dwellings at the market along the distribution of net incomes. Local net income distributions are estimated by constructing counterfactual distributions from local income tax statistics and survey data on net incomes. A housing budget is allocated by combining the residual income and income ratio approaches from the affordability literature and based on the legal and institutional setting in Germany: in German law minimum income standards can be derived from deductibles in support obligations of parents and renters are required to earn three times the monthly rent, i.e. a ratio. I compute the affordability measure for 400 districts in 2013 and 2021 and aggregated measures for different types of regions. Affordability in Germany declined for middle income renter households, but only in regions with population growth. Lower income households with children have close to zero affordability. |
| Keywords: | Housing Affordability; income ratio; regional inequality; residual income |
| JEL: | R3 |
| Date: | 2025–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2025_62 |
| By: | Olivier De Jonghe (National Bank of Belgium); Konstantīns Benkovskis (Latvijas Banka); Karolis Bielskis (Bank of Lithuania); Diana Bonfim (Banco de Portugal, Católica Lisbon School of Business & Economics); Margherita Bottero (Banca d’Italia); Tamás Briglevics (Central Bank of Hungary); Martin Cesnak (National Bank of Slovakia); Mantas Dirma (Bank of Lithuania); Marina Emiris (National Bank of Belgium); Pálma Filep-Mosberger (Central Bank of Hungary); Valentin Jouvanceau (Bank of Lithuania); Nicholas Kaiser (Central Bank of Ireland); Dmitry Khametshin (Banco de España); Viola M. Grolmusz (Central Bank of Hungary); Laura Moretti (Central Bank of Ireland); Artūrs Jānis Nikitins (Latvijas Banka); Angelo Nunnari (Banca d’Italia); Maria Rodriguez Moreno (Banco de España); Elitsa Stefanova (European Central Bank); Lajos Tamás Szabó (Central Bank of Hungary); Kārlis Vilerts (Latvijas Banka); Sujiao Emma Zhao (Banco de Portugal, Católica Lisbon School of Business & Economics) |
| Abstract: | We study heterogeneity in households’ credit across nine European countries (Belgium, Spain, Hungary, Ireland, Italy, Latvia, Lithuania, Portugal, and Slovakia) during 2022-2024 using granular credit register data. We first document substantial between- and within-country variation in mortgage and consumer lending by borrower age, loan maturity, and interest rate fixation. We then quantify the pass-through of the ECB’s recent tightening cycle to household borrowing costs and assess its heterogeneous impact across households. Pass-through is nearly complete for mortgages (around 0.9) but considerably weaker for consumer credit (around 0.4). While mortgage pass-through is relatively homogeneous across countries, consumer credit shows pronounced cross-country differences that cannot be explained by borrower or loan characteristics. Younger households face stronger mortgage pass-through but weaker consumer credit pass-through relative to older borrowers, and longer maturities are associated with stronger pass-through in both credit markets. |
| Keywords: | monetary policy transmission; household borrowing; credit registers; interest rate pass through; cross-country heterogeneity. |
| JEL: | E52 G21 D14 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbb:reswpp:202511-485 |
| By: | Llorca, Manuel (Department of Economics, Copenhagen Business School); Rodriguez-Alvarez, Ana (Oviedo Efficiency Group, Department of Economics, University of Oviedo) |
| Abstract: | Energy poverty refers to the inability of households to afford adequate energy services, connected to negative impacts on health, well-being, and economic opportunities. It is a social policy issue that exacerbates inequality and limits access to essential services, particularly among vulnerable populations. In Spain, energy poverty has become an increasing concern, with many low-income households struggling to meet their energy needs despite various social protection mechanisms. This paper analyses the effectiveness of the Bono Social Eléctrico (BSE), a Spanish social electricity voucher aimed at alleviating energy poverty among vulnerable households. Departing from a microeconomic theoretical framework and a applying a Stochastic Frontier Analysis (SFA) approach, the study evaluates the gap between observed and potential energy poverty levels. The empirical analysis employs Spanish household panel data from 2021 to 2023, capturing key household characteristics and subsidy information. The findings indicate that, while the BSE contributes to reducing energy poverty, its impact is constrained by insufficient coverage of the poorest households and inefficiencies in allocation. The study suggests policy recommendations to enhance the voucher’s targeting mechanisms and explores strategies for more effective interventions to address energy poverty. |
| Keywords: | Energy poverty; Policy evaluation; Stochastic frontier analysis; Spain; Bono social eléctrico |
| JEL: | C23 D12 I38 Q48 |
| Date: | 2025–04–23 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:cbsnow:2025_004 |
| By: | van den Berg, Gerard J. (University of Groningen); Uhlendorff, Arne (CREST); Wolf, Markus (Institute for Employment Research (IAB), Nuremberg); Wolff, Joachim (Institute for Employment Research (IAB), Nuremberg) |
| Abstract: | Means-tested welfare benefits are usually provided at the household level. Job search effort of unemployed welfare benefit recipients is monitored, and non-compliance with job search requirements can lead to a sanction and therewith to a temporary drop in household income. Among unemployed couples on welfare, a sanction is typically induced by one of the partners but potentially the burden is shared by both. We consider effects of sanctions on their transition rates into work. We examine theoretical implications and provide empirical evidence based on administrative data from Germany. We find that sanctions increase the probability of entering employment for the sanctioned welfare recipient but also for their partner. Females react more strongly to a sanction of their partner than males. |
| Keywords: | social assistance, job search, monitoring, gender, unemployment, intra-household bargaining |
| JEL: | J64 J65 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18253 |
| By: | Giovanna D'Adda (University of Milan, Italy and CMCC); Simone Ferro (University of Milan, Italy); Tommaso Frattini (University of Milan, LdA, CEPR, RFBerlin); Alessio Romarri (Departament of Applied Economics, Universitat Autònoma de Barcelona, Spain & RFBerlin, Germany) |
| Abstract: | Using large-scale high-granularity data from a food delivery platform and granular pollution and weather information, we study how PM2.5 fluctuations affect riders' absenteeism, productivity, and accidents. Exploiting exogenous pollution variation from inverse boundary layer height, we find that higher pollution increases absenteeism for all workers and raises delivery times and accident rates only among (e-)bike riders, who must exert physical effort while working. Affected workers compensate productivity losses by working longer hours. Monetary incentives mitigate the effects on absenteeism but do not offset the decline in productivity and appear to exacerbate accident risk. |
| Keywords: | Air Pollution; Food Delivery Riders; Absenteeism; Labor Productivity; Workplace Safety. |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:uab:wprdea:wpdea2518 |
| By: | Massimiliano Mazzanti (Università degli studi di Ferrara); Alessandro Montanaro (Università degli studi di Ferrara); Fabiola Onofrio (Università degli studi di Ferrara); Emy Zecca (Università degli studi di Ferrara) |
| Abstract: | This work investigates sustainability-oriented innovation among Italian small and medium-sized enterprises (SMEs) within the broader context of the European twin transition toward sustainability and digitalization. Based on survey data from 740 manufacturing firms, it analyses the diffusion of research and development activities, digital technologies, and circular economy practices across firm sizes and regions. The results reveal a persistent dualism: medium and large firms, mostly located in northern regions, show higher levels of innovation and digital adoption, while smaller firms remain limited by financial and structural constraints. Circular innovation largely focuses on efficiency measures, whereas advanced strategies such as eco-design remain rare. Digitalization acts as both a driver and an enabler of sustainable transformation but progresses unevenly across territories. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:srt:wpaper:1225 |
| By: | Xianglin Sun; Sven Damen |
| Abstract: | Flooding represents a major natural hazard with significant economic consequences. We study the causal effect of the introduction of a mandatory flood risk disclosure policy in Flanders in 2013, which introduced explicit flood risk labels in property listings. Leveraging extensive transaction data and employing Difference-in-Differences (DiD) and Difference-in-Discontinuity (Diff-in-Disc) methods, we assess the policy's influence on housing prices. Our results reveal that properties located in potential flood risk zones experienced price declines of up to 4.71%, suggesting heightened market sensitivity to disclosed flood risks. However, for properties in effective flood risk zones, we find no consistent impact, likely reflecting existing awareness of flood exposure. These findings highlight the effectiveness of mandatory disclosure in mitigating information asymmetries and contribute to the broader discourse on environmental risk communication and housing market behavior. |
| Keywords: | flood risk; housing market; Mandatory Disclosure Policy |
| JEL: | R3 |
| Date: | 2025–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2025_222 |
| By: | Koning, Pierre (Vrije Universiteit Amsterdam); Prudon, Roger (Lancaster University) |
| Abstract: | Spikes in exits at unemployment insurance (UI) benefit exhaustion into other benefit schemes such as sickness insurance (SI) are well-documented. These spikes could be driven by relatively healthy workers maximizing their total duration of benefit receipt, or workers in ill health who remain on UI while incapable of working. While the first explanation calls for a stricter SI and UI system, the second highlights the need for increased information provision. We study the importance of these explanations by first documenting a spike in exits into SI at UI benefit exhaustion in the Netherlands. Comparing detailed health and labor market characteristics of exit cohorts, we show that the spike is unlikely to be driven by maximizing behavior of relatively healthy workers. Instead, our results point to catch-up of initial non-take-up of SI by workers with substantial mental and physical health conditions. This opposes earlier work on substitution between UI and SI/DI. |
| Keywords: | spikes, unemployment insurance, sickness benefits, non-take-up |
| JEL: | H53 H75 J65 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18264 |
| By: | Chikhale, Nisha (University of Delaware); Duncombe, Natalie; Larsen, Birthe (Department of Economics, Copenhagen Business School) |
| Abstract: | We provide new causal evidence on the labor market consequences of workplace sex-ual harassment using matched survey and administrative data from Denmark. Both women and men experience persistent earnings losses of around 6 percent, with losses doubling among those who change employers. These effects are not driven by non-employment or occupational downgrading but by moves to lower-paying firms. A sub-stantial share of harassment comes from clients—particularly for women—highlighting the need for broader anti-harassment policies. Our findings reveal the long-term eco-nomic scars of harassment and gendered patterns in firm mobility, sorting, and pro-ductivity that persist beyond job transitions. |
| Keywords: | Workplace sexual harassment; Anti-harassment policies; Gendered firm mobility patterns |
| JEL: | J16 J32 J81 |
| Date: | 2025–08–06 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:cbsnow:2025_007 |
| By: | Soler, Víctor |
| Abstract: | This study analyzes the influence of various factors on the probability of being a teleworker, experiencing depression, maintaining a satisfactory work–family balance, and the overall well-being of Finnish workers. The analysis is based on data from the 2021 European Working Conditions Survey (EWCS) and uses cross-sectional models. Specifically, probit models are estimated for discrete dependent variables and Ordinary Least Squares (OLS) models for continuous dependent variables. These models aim to explain individuals’ choices between two possible alternatives, coded as 1 and 0, according to a set of exogenous variables. The results show that the probability of being a teleworker is mainly determined by having higher education and being male. In the case of depression, the most relevant factors are living in a rural area and having a partial teleworking arrangement. Regarding work–family balance, full telework and university education significantly increase the likelihood of reporting a good work–life balance. Finally, workers’ well-being is primarily determined by age (in logarithms) and by being young, suggesting a non-linear relationship between age and well-being. |
| Keywords: | telework; depression; work-life balance; home-work conflict; Probit; Finland. |
| JEL: | J22 J28 J31 O52 |
| Date: | 2025–11–24 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:126985 |
| By: | Checchi, Daniele (University of Milan); Kreisman, Daniel (Georgia State University); García-Peñalosa, Cecilia (CNRS) |
| Abstract: | We consider the contribution of the intensive margin of labor supply (hours worked above zero) to the gender wage gap across four economies (Germany, France, US, UK) over a long time-horizon. We first build a model in which firms offer two wage contracts – one that pays a fixed wage but allows workers to choose their preferred number of hours up to “full time”, and a second in which wages are relative to imperfectly observable productivity but hours can be limitless. The former includes part- and full-time work, while the latter represents a class of workers who often must supply very long hours but who can then earn potentially unlimited remuneration. We then apply a Oaxaca decomposition for part-, full-, and over-time workers to observe the relative contribution of sorting and remuneration across these hours “regimes” over time and across countries. Through this, we show that while female employment in over-time work increased and the gender wage decreased, this was not driven by increasing selection but rather by a decrease in the unexplained portion of the wage gap over time. We conclude by considering the contribution of unions and labor market flexibility to these cross-country differences. |
| Keywords: | over-time work, gender wage gap, labor supply, Oaxaca decomposition |
| JEL: | J01 J16 J31 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18265 |
| By: | Rosella Nicolini (Departament of Applied Economics, Universitat Autònoma de Barcelona, Spain); Juan A. Piedra-Peña (Universidad de Oviedo, Spain); José Luis Roig Sabaté (Departament of Applied Economics, Universitat Autònoma de Barcelona, Spain); Riccardo Turati (Dep Applied Economics, Universitat Autònoma de Barcelona, Spain & IZA, Germany & RFBerlin, Germany) |
| Abstract: | The scope of our research is to conduct an empirical investigation into the degree of ethnic cohesion in a multiethnic city such as Barcelona (Spain). Our aim is to assess how immigrant and native groups are distributed across the city’s neighborhoods and understand their locational patterns in order to identify potential polarization trends that could undermine socioeconomic cohesion among citizens. Unlike much of the existing literature, we adopt a research strategy based on spatial analysis. Our findings indicate that, between 2008 and 2020, Barcelona experienced a decrease in polarization and an increase in diversity—understood as the co-location of different communities—at the neighborhood level. Income emerges as a relevant determinant: it is associated with lower diversity and positively correlated with polarization. We identify that high-income neighborhoods are predominantly inhabited by natives and Europeans, while other communities are relegated to peripheral areas, which in turn become more diverse. However, this distribution pattern is reinforced by the linguistic and religious distance. A deeper interpretation of our results suggests that initiatives aimed at fostering human capital development and education could serve as effective tools to promote a more balanced spatial distribution of communities that could enhance urban social cohesion. |
| Keywords: | . |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:uab:wprdea:wpdea2519 |
| By: | Hellsten, Mark (University of Tübingen); Khanna, Shantanu (Northeastern University); Lodefalk, Magnus (Örebro University); Yakymovych, Yaroslav (Uppsala University) |
| Abstract: | Artificial intelligence (AI) is expected to reshape labor markets, yet causal evidence remains scarce. We exploit a novel Swedish subsidy program that encouraged small and mid-sized firms to adopt AI. Using a synthetic difference-in-differences design comparing awarded and non-awarded firms, we find that AI subsidies led to a sustained increase in job postings over five years, but with no statistically detectable change in employment. This pattern reflects hiring signals concentrated in AI occupations and white-collar roles. Our findings align with task-based models of automation, in which AI adoption reconfigures work and spurs demand for new skills, but hiring frictions and the need for complementary investments delay workforce expansion. |
| Keywords: | hiring, labor markets, Artificial Intelligence, task content, technological change |
| JEL: | J23 J24 O33 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18267 |
| By: | Strobel, Jürgen |
| Abstract: | Alterssicherung in Deutschland ist zu Beginn der laufenden Legislaturperiode wieder stärker in den Fokus der Politik gerückt, da die nachvollziehbaren Erwartungen der vielen Millionen Versicherten der Gesetzlichen Rentenversicherung an eine auskömmliche Altersversorgung kaum noch mit realistischen Möglichkeiten der Finanzierung in Einklang zu bringen sind. Der vorliegende Beitrag enthält einen Vorschlag zur mittelfristigen Entschärfung dieses Problems. Plädiert wird für ein behutsames Absenken des Versorgungsniveaus in der gesetzlichen Rente ab Beginn der 2030-er Jahre in Verbindung mit einer zusätzlichen kapitalgedeckten obligatorischen Altersvorsorge, die im Kern auf einer deutlich reformierten Riester-Rente beruht mit einer Produktgestaltung, die sich eng an diejenige der Gesetzlichen Rentenversicherung anlehnt. |
| Abstract: | At the beginning of the current legislative period, old-age provision in Germany has once again become a major political focus, as the understandable expectations of the many millions of people insured under the statutory pension insurance scheme for adequate old-age provision can hardly be reconciled with realistic financing options. This article contains a proposal for alleviating this problem in the medium term. It advocates a cautious reduction in the level of statutory pension benefits from the beginning of the 2030s, combined with an additional funded mandatory pension scheme based essentially on a significantly reformed Riester pension with a product design closely modelled on that of the statutory pension insurance scheme. |
| Keywords: | Altersversorgung, Rentenversicherung |
| JEL: | H H5 H55 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:thkivw:331862 |
| By: | Chen Luo (University of Warsaw, LabFam - Interdisciplinary Centre for Labour Market and Family Dynamics); Ewa Jarosz (University of Warsaw, LabFam - Interdisciplinary Centre for Labour Market and Family Dynamics); Anna Matysiak (University of Warsaw, LabFam - Interdisciplinary Centre for Labour Market and Family Dynamics; Cracow University of Economics) |
| Abstract: | This study investigates the relationship between learning demands at work and the transition to parenthood in Germany. As a consequence of technological progress and intensifying global competition, workplace learning is no longer an optional path to career advancement but has become an essential job demand. Consequently, it absorbs time and energy that could otherwise be devoted to family formation, prompting individuals to postpone childbearing or have fewer children. Yet, the fertility implications of this structural change have not been systematically examined. This study addresses this gap by analysing how job-related high learning demands relate to the transition to the first birth. The results indicate that individuals in jobs with high learning demands, both men and women, tend to delay the transition to the first birth. However, these delays do not appear to preclude them from becoming parents later, suggesting a postponement rather than a withdrawal from parenthood. |
| Keywords: | fertility, childbearing, learning demands, labour market transformation, work-family conflict |
| JEL: | J13 J16 J22 J24 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:war:wpaper:2025-29 |
| By: | Deryugina, Tatyana (University of Illinois at Urbana-Champaign); Zaldokas, Alminas (National University of Singapore); Fedyk, Anastassia (University of California at Berkeley); Gorodnichenko, Yuriy (University of California, Berkeley); Hodson, James (AI for Good); Sologoub, Ilona (VoxUkraine) |
| Abstract: | We develop a novel, scalable method for assessing the quality of public procurement systems using standard administrative data. Our approach compares the distribution of procurement opportunities to the distribution of contract awards across firms. We first derive a simple theoretical benchmark that relates the expected distribution of contract value winning firms, measured as a Herfindahl-Hirschman index (HHI), to the distribution of auction values, measured as a respective HHI, and the number of winning firms. Significant deviations of winning firms' HHI from this benchmark indicate potential governance failures such as corruption or unchecked collusion. Our method requires no subjective input, is transparent and reproducible, and allows for meaningful comparisons across countries, industry sectors, and over time. We use procurement data from Ukraine and EU member states in 2018-2021 to assess the performance of five large sectors. Ukraine's procurement performance in four of the five sectors is comparable to many other European countries, but Ukraine's construction sector consistently displays the largest excess concentration among all countries considered, consistent with anecdotal evidence of corruption in this sector. |
| Keywords: | Ukraine, corruption, procurement, collusion |
| JEL: | D73 L10 H11 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18257 |
| By: | Guillaume Toussaint; Arnaud Simon |
| Abstract: | Rent control is a much talked-about measure in France. By 2026, rent control should be extended to all so-called “tensed” areas, where there is a structural shortage of housing supply in relation to high demand. Economic literature has extensively studied the effects of rent control, documenting a large number of positive and negative effects. However, to our knowledge, no paper has directly studied the effect of rent control on rental and capital returns. Using machine learning methods to appraise rental returns with 2 main databases, we estimate a difference in differences model to test the effect of rent control on rents, capital returns and rental returns. We show that the introduction of rent control in Lille, France, led to i) an increase in rents for the largest properties ii) a decrease in capital returns for all properties iii) an increase in rental returns for the largest one. Thus, we show that rent control led to lower housing capitalization rather than a general decline in rents or rental returns. |
| Keywords: | Capital returns; Diff in Diff; Rent Control; Rental returns |
| JEL: | R3 |
| Date: | 2025–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2025_30 |
| By: | Kauhanen, Antti; Ropponen, Olli |
| Abstract: | Abstract High-skilled immigration has consistently demonstrated positive effects on firm performance, innovation, and productivity, while generally avoiding adverse impacts on native wages or employment. Consequently, many countries offer preferential tax schemes for highly skilled migrants. Recent research from the Netherlands provides compelling evidence on the impact of such schemes. In 2012, the Dutch system underwent reform, replacing a subjective “scarce skills” eligibility criterion with a transparent and relatively low income threshold. This reform significantly increased migration among mid-level earners, illustrating that migration reacts strongly to increased net-of-tax income and underscoring the importance of clear, predictable rules. We suggest that Finland should extend tax relief for highly skilled immigrants beyond the highest earners and consider implementing graduated rates. |
| Keywords: | Skilled Immigration, Preferential Tax Scheme, Migration Elasticity, Key Employee Act, Finland, Netherlands |
| JEL: | J61 J31 D24 O31 |
| Date: | 2025–11–18 |
| URL: | https://d.repec.org/n?u=RePEc:rif:briefs:168 |
| By: | Becker, Sascha O (University of Warwick and Monash University); Egger, Hartmut (University of Bayreuth); Koch, Michael (Aarhus University); Muendler, Marc-Andreas (University of California San Diego) |
| Abstract: | This paper links globalization, worker efficiency, and wage inequality within plants to internal labor market organization. Using German plant–worker data and information on the task content of occupations, we document that larger plants (i) use more occupations, (ii) assign fewer tasks per occupation, and (iii) exhibit greater wage dispersion. We develop a model where plants endogenously bundle tasks into occupations, improving worker-task matching at the cost of higher fixed span-of-control costs. Embedding this into a Melitz framework, we show that trade increases worker efficiency and wage inequality in exporting plants, whereas non-exporting plants experience the opposite effects. Structural estimation and simulations confirm the model’s predictions and point to non-monotonic economy-wide effects. |
| Keywords: | Tasks; specialization; international trade; firm-internal labor allocation JEL Classification: F12, F16, J3, L23 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:cge:wacage:783 |
| By: | Carmen Sainz Villalba |
| Abstract: | This paper studies the effect on the support of legalization of assisted suicide by exposing German individuals to real-life cases of assisted suicide. We find that the support of legalizing assisted suicide does not change substantially, only 21% of our sample changes opinion. However, it seems that the support for those that strongly favour the policy decreases when presented with cases, as they seem less confident in their opinion and also makes the respondents that oppose less likely to change to strongly oppose. We also find that the change in opinion by the exposure to cases is mediated by the prior belief that respondents have. We also explore the reasons why the change in support is so low. We find that the respondents that are more likely to change support are the ones that state a lower credibility on the information provided. |
| Keywords: | Sterbehilfe, Assisted Suicide, Information treatment, Knowledge, Beliefs, Bias |
| JEL: | D83 H75 I18 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:mpi:wpaper:tax-mpg-rps-2024-11 |
| By: | Fernandes de Araujo, Maria Luísa; Läpple, Doris |
| Abstract: | Farmers’ support for climate change mitigation policies is crucial for their implementation and effective reduction of greenhouse gas (GHG) emissions. However, farmers’ support for these policies remains a challenge. This study investigates whether different information framing can enhance farmers’ support across European countries. Using a pre-registered online survey experiment across eight European countries, we test the effects of video-based interventions with distinct framings. We assess the impact of these interventions on farmers’ support for climate change mitigation policies and their climate change beliefs. By using the ManyLabs approach, we examine regional variability in farmers’ responses across countries, providing insights into the factors that drive policy support. Our findings will provide evidence-based recommendations for policy design, helping bridge the gap between environmental objectives and agricultural realities. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, Farm Management |
| URL: | https://d.repec.org/n?u=RePEc:ags:aes025:356793 |
| By: | Haucap, Justus; Karacuka, Mehmet; Inke, Hakan |
| Abstract: | Utilizing Connor's International Cartel Database and employing difference-in-differences methodology, we find that market concentration, the number of buyers and cartel duration have significant impacts on cartel overcharges. We also find that the European Commission's 2006 guidelines on the method of setting fines for cartel infringements seems to have decreased cartel overcharges in the EU. In addition, the EU's cartel damages directive of 2014 (2014/104/EU) appear to have increased private damage payments. Overall, we find support that these two changes in EU competition policy have a reversing impact on the otherwise increasing trend of cartel overcharges, as making the infringement more costly at least in the EU. |
| Keywords: | Cartel fines, cartel damages, EU guidelines, competition law, antitrust |
| JEL: | L41 K21 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:dicedp:331876 |
| By: | Korpela, Heikki |
| Abstract: | Finland offers a subsidy to employers for hiring individuals with low employment prospects. In 2015, changes to the subsidy’s funding caused some regions to unexpectedly suspend new subsidy grants. I examine wages and employment in these regions using a differences-in-differences setting, with regions where the subsidy remained available serving as control areas. Among the population with low employment prospects, the temporary halt reduced the wage sum from subsidized employment by 37.2 million euros (−32%) over the following year and relative to the control areas. The similarly measured net decline in the total wage sum in this group was 32.7 million euros (−7.3%). Because the reductions in subsidized and total wage sums are very similar, the suspension of new subsidy grants appears to have been largely uncompensated by increases in unsubsidized employment. This suggests that any displacement effects from the subsidy, where the subsidized jobs would be replacing unsubsidized ones, are likely to be small. |
| Keywords: | hiring subsidies, long-term unemployment, J22, J64, J68, fi=Työmarkkinat|sv=Arbetsmarknad|en=Labour markets|, |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:fer:wpaper:179 |
| By: | Dimitris Karlis; Michalis Doumpos; Dimitrios Papastamos; Ilias Liapikos |
| Abstract: | Environmental, Social, and Governance (ESG) considerations are playing an increasingly significant role in real estate, influencing various aspects of the industry. This talk focuses on the impact of ESG factors—primarily environmental and social (ES) rather than governance (G)—on property valuation, particularly in the context of automated valuation models (AVMs). The scope of the research is twofold. Initially, we propose the development of an ESG index/score for properties, incorporating relevant characteristics, and explore how this score can be use into AVMs. The score takes into account property specific characteristics related to environmental factors but also social characteristics mostly related to the location of the property. Our findings suggest that ESG score positively influences the predictive accuracy of AVMs, indicating that the market indeed accounts for these aspects while considering property pricing. Additionally, we examine alternative proxies for environmental characteristics in valuation, such as the Environmental Performance Certificate, which is becoming increasingly relevant in recent years. Real data from a financial institution in Greece are used to demonstrate the methodology |
| Keywords: | automatic valuation; econometric models; environmental and social; Enviuronment |
| JEL: | R3 |
| Date: | 2025–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2025_282 |
| By: | Bakens, Jessie (ROA / Labour market and training, RS: GSBE other - not theme-related research); Dijksman, Sander (RS: GSBE other - not theme-related research, ROA / Labour market and training); Fouarge, Didier (RS: GSBE UM-BIC, ROA / Labour market and training); van Guilik, Nadine (RS: GSBE other - not theme-related research, ROA / Labour market and training); Höfelmann, Ludo (RS: GSBE other - not theme-related research, ROA / Education and transition to work); Meijer, Roy (RS: GSBE other - not theme-related research, ROA / Labour market and training); Pestel, Nico (ROA / Labour market and training, RS: GSBE other - not theme-related research) |
| Abstract: | Kijkend naar de arbeidsmarkt tot 2030 zien wij een lagere verwachte economische groei en een hiermee gepaard gaande afvlakking van de werkgelegenheidsgroei. Door de bank genomen lijkt de arbeidsmarkt ruimer te worden, maar structurele knelpunten in techniek, zorg en onderwijs houden aan. Binnen POA werken we aan de ontwikkeling van verschillende risico-indicatoren, waaronder de conjunctuurgevoeligheid van deelmarkten en de mogelijkheden tot overstappen tussen beroepen en sectoren. Deze indicatoren, samen met kernindicatoren die de huidige balans tussen vraag en aanbod op de arbeidsmarkt voor alle onderwijssectoren weergeven, zijn geïntegreerd in het ArbeidsmarktInformatieSysteem (AIS) dat is ontwikkeld door ROA. Dit jaar hebben wij ook cijfers verwerkt over de baankans en loon van gediplomeerden op basis van administratieve data van het CBS, en uitgesplitst naar CREBO- en CROHO-opleidingscodes om meer detail te bieden aan de gebruikers van het AIS. |
| Date: | 2025–11–25 |
| URL: | https://d.repec.org/n?u=RePEc:unm:umarep:2025008 |
| By: | Bukur, Tamás |
| Abstract: | In the European Union, a heated debate has emerged about whether the current practice of network neutrality regulation might endanger the development of very high-capacity networks and thus threaten the competitiveness of the European telecommunications sector. Operators insist that large content providers, who are effectively free riding on operator infrastructure, should be required to contribute a "fair share" of the costs of delivering their content; they believe new policies should facilitate this. Yet in most policy discussions, "fairness" appears as a purely rhetorical concept, seldom accompanied by concrete methods of quantification. Many policy recommendations suggest that cost shares should be bargained by operators and content providers, and regulators should step in if negotiations are not successful. Although this paper does not take a position on either side of the debate, by employing a cooperative game-theoretic framework it seeks to clarify what "fair share" could mean in rigorous economic terms. My theoretical model builds on the externality created by content providers originating large volumes of internet traffic, who do not pay for and have no incentive to limit the resulting infrastructure costs. Central to our cooperative framework is the hypothetical "grand coalition, " in which all players (operators, content providers, and consumers) cooperate to maximize a joint surplus, thereby fully internalizing this externality. Hypothetical coalitions, including only part of the players, might also partially reduce it. Each coalition's value is defined in its ability to mitigate the externality, and each player's contribution to that mitigation provides a basis for allocating costs. I rely on the Shapley value to examine how operators, content providers, and consumers should share trafficgenerated costs under this widely used conception of fairness. My results suggest that, according to the Shapley value, operators and content providers should split costs equally, leaving no direct burden on consumers. In the case of multiple competing operators, their half of the cost should be further split between them equally. The model aims for ease of practical implementation; hence, the suggested share measures depend only on observable cost parameters. With such a cost-sharing regulation in place, and taken into account by players in their optimization, the market equilibrium shifts closer to the social optimum, infrastructure deployment rises, and at high infrastructure cost levels, both consumer surplus and total welfare improve. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itse25:331254 |
| By: | Wändi Bruine de Bruin; Keshav Dogra; Sebastian Heise; Edward S. Knotek; Brent Meyer; Robert W. Rich; Raphael Schoenle; Giorgio Topa; Wilbert Van der Klaauw |
| Abstract: | There has been a lot of interest in firms’ pricing decisions in the past few years—both during the inflation surge of 2021-23 and in the more recent rounds of tariff increases. In this post, we let firms speak for themselves about what factors they consider when adjusting prices in response to various shocks. The analysis is based on an ongoing research project, joint with the Atlanta and Cleveland Federal Reserve Banks, on how businesses set prices and the extent of passthrough of cost increases. In particular, we leverage the qualitative portion of the study based on open-ended interviews with senior decision-makers on how they approach pricing decisions in their firms. Rather than a uniform approach, a very nuanced picture emerges of businesses trying to balance competing objectives while keeping an eye on demand conditions for their products as well as on their direct competitors’ behavior in the market. |
| Keywords: | Price setting; cost pass-through; interview |
| JEL: | D22 |
| Date: | 2025–11–24 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednls:102159 |
| By: | Carmelo Micciche; Michel Baroni |
| Abstract: | This paper focuses on the geographical distribution of buyer typologies and their impact on housing price formation across France. Using an original and exhaustive dataset linking property transactions to detailed owner profiles, it proposes a novel approach by analyzing buyer characteristics — including real estate capital, age, and intended property use — and assessing their spatial patterns. A set of buyer-related indicators is constructed. Based on these indicators, a Kohonen clustering method is applied to segment the territory, successfully identifying typologically coherent and spatially consistent housing market areas. The analysis shows that the markets experiencing the strongest price increases are also those with a relatively high presence of multi-property owners. Further hedonic modeling confirms that buyer types have a measurable and significant impact on housing price formation, with multi-property owners having a positive effect on prices by paying more for comparable properties. |
| Keywords: | Buyer impact on prices; Buyer type repartition; Hedonic regression; Self-Organizing-Map |
| JEL: | R3 |
| Date: | 2025–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2025_303 |
| By: | Dadgar, Iman (Center for educational leadership and excellence, Stockholm School of Economics, Swedish institute for Social research (SOFI), Stockholm University) |
| Abstract: | This study examines the influence of students’ ordinal positions in the distribution of grades in their ninth-grade school cohort on subsequent educational and labor market outcomes using population-wide data for Sweden. The identification strategy uses differences between students’ ranks in their school and their ranks in the country-wide ability distribution after conditioning on school-cohort fixed effects and school-level grade distributions. The findings reveal an advantage of occupying a higher rank in school with respect to educational and labor market accomplishments in adulthood, whereas a lower rank yields adverse consequences. Contrary to findings from the United States, no effect is found for students situated in the middle of the rank distribution. This study also shows that ordinal rank effects are more pronounced for students with lower socio-economic status and for female students at the top of their school ability distribution. This study highlights the importance of students’ rank positions in determining their future academic and professional outcomes. |
| Keywords: | education; income; ordinal rank; peer effects |
| JEL: | I20 I23 I28 |
| Date: | 2025–11–14 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:ifauwp:2025_021 |
| By: | Byrne, Stephen (Central Bank of Ireland); Goodhead, Robert (Central Bank of Ireland) |
| Abstract: | This paper decomposes the sources of capital misallocation at the country and industry level in Europe. Using a comprehensive dataset of European firms from 19 countries, we find that the majority of the observed misallocation stems from persistent firm-specific distortions, with a smaller role for adjustment costs and uncertainty. We document substantial differences in the sources of misallocation across industries. Our analysis reveals strong correlations between these permanent distortions and industry-level variation in both financial factors, and factors relating to productivity. Understanding the factors driving capital misallocation is important for policymakers seeking to address productivity constraints and stimulate growth in the long run. |
| JEL: | E0 O11 O4 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:cbi:wpaper:11/rt/25 |
| By: | Fahlén, Per (Chalmers University of Technology, Gothenburg, Sweden); Henrekson, Magnus (Research Institute of Industrial Economics (IFN)); Nilsson, Mats (Södertörn University, Stockholm, Sweden) |
| Abstract: | We examine EU and UK plans for achieving a fossil-free energy system by 2050, centered on massive electrification and large-scale deployment of wind and solar power. Using empirical trends, cost analyses, and system-function assessments, we argue that current strategies underestimate real economic, technical, and social challenges. Three scenarios for meeting 2050 electricity demand are compared: full reliance on renewables; a 50/50 split between wind-solar and nuclear; predominantly nuclear. Evidence shows that higher shares of weather-dependent generation correlate with higher electricity prices, greater volatility, and increased system integration costs. High renewable shares require extensive backup, storage, and grid reinforcement, raising complexity and environmental impacts. Overlooked costs are highlighted: reduced capacity value, transmission expansion, balancing services, and social externalities. Sustainability must encompass environmental, economic, and social dimensions. A technologically diverse, dispatchable-power-based strategy—especially with expanded nuclear power— offers a more robust, cost-effective, and socially acceptable pathway to climate neutrality than a predominant reliance on intermittent renewables. |
| Keywords: | Climate change; Dispatchable electricity; Green transition; Mission-oriented policy; Renewable electricity; Rent seeking |
| JEL: | L26 L52 L70 O38 P11 Q48 Q58 |
| Date: | 2025–11–18 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:iuiwop:1542 |
| By: | Kirsch, Carmen; Läpple, Doris; Arpinon, Thibaut |
| Abstract: | Last winter, farmers protested across Europe. In Germany, farmers opposed governmental plans to abolish tax reliefs for agricultural diesel and vehicles. While the financial impact on individual farms can be seen as manageable, the protests reflected broader dissatisfaction within the sector. We analyse factors explaining farmers’ participation and support of the protests based on an online survey of over 300 German farmers. We assess farmers’ estimate of additional costs based on the tax cuts, their satisfaction with Common Agricultural Policy (CAP), farm and farmer characteristics, and protest reasons. By grouping farmers based on participation and support, we find significant differences in relation to cost estimates, farm size, and full-time farming. Regression results indicate farmers of all farm systems and sizes participated in and supported the protests. The financial impacts of the tax cuts are generally overestimated, but they do not explain participation or protest support. Higher CAP satisfaction is negatively associated with support. Across the sample, we observe high agreement with grievances like administrative burdens, low incomes, and imports. Overall, the protests reveal deep-rooted frustrations beyond immediate financial triggers, emphasizing the need for structural reforms that must not compromise sustainability goals. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Agricultural Finance |
| URL: | https://d.repec.org/n?u=RePEc:ags:aes025:356755 |
| By: | Dillon, Emma J.; Moran, Brian |
| Abstract: | This paper explores the integration of the social dimension in the assessment of farm-level sustainability. While the economic and environmental dimensions of sustainability have been widely addressed, the social aspect remains generally underdeveloped. Drawing on insights from indicator development through the Teagasc National Farm Survey (NFS) in Ireland, this study highlights critical social sustainability elements including farmer well-being, generational renewal, and community engagement. Findings to date reveal sectoral and regional disparities in challenges such as stress, work-life balance, and access to services, underscoring the need for tailored policy interventions. As indicator development is an iterative process, the paper recognises the need to expand the existing indicator set and calls for enhanced data collection and the co-design of new indicators to better capture the multidimensional nature of social sustainability. The integration of social insights into policy is imperative to gain a better understanding of the sustainability and resilience of agriculture. This is all the more relevant in order to facilitate a just transition for farm families in face of environmental challenges and the advancement of broader sustainability goals. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, Environmental Economics and Policy, Sustainability |
| URL: | https://d.repec.org/n?u=RePEc:ags:aes025:356708 |
| By: | Jaimovich, Esteban (University of Turin (ESOMAS Department) and Collegio Carlo Alberto); Madzharova, Boryana (Central Bank of Ireland, Friedrich-Alexander-Universität Erlangen-Nürnberg, and CESIfo); Merella, Vincenzo (University of Cagliari and Prague University of Economics and Busines) |
| Abstract: | The paper investigates firms’ rollout strategies for quality-differentiated products across geographically dispersed markets. Using a theoretical framework that integrates nonhomothetic preferences, we show that premium goods are more likely to enter wealthier markets first, allowing firms to capture higher markups. We find that the main factors influencing the selection of follow-up markets differ by product quality: for premium goods, income levels are the primary determinant of expansion paths, whereas geographic proximity is the main driver for lower-quality products. Using micro-level data from the refrigeration industry, we confirm a significant positive association between market-entry order and income for higherquality products. Furthermore, we observe that follow-up markets tend to be geographically more dispersed for premium goods, reflecting a shift away from proximity-based expansion strategies. |
| Keywords: | market entry, gravity; nonhomothetic preferences, quality differentiated products. |
| JEL: | F1 F14 F23 L68 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:cbi:wpaper:18/rt/25 |
| By: | Blockeel, Johan; Grovermann, Christian; Finger, Robert |
| Abstract: | The European Union (EU) aims to increase the adoption of organic farming as part of its Farm to Fork Strategy. However, farmers face various adoption hurdles, such as the efficacy of crop protection, as well as implications for crop yields, costs, labour and ultimately farm income. Yet, we currently lack comprehensive large-scale empirical evidence on the economics of organic farming in the EU. Therefore, this study assesses the economic performance of organic farming in the EU using a large-scale cross-country dataset. It consists of an unbalanced panel of 151, 560 non-organic and 10, 531 organic farms from the European Farm Accountancy Data Network, covering seven different farm types and 16 EU countries. Our analysis specifically focuses on crop protection expenditures, total crop specific costs, as well as labour and gross farm income on a per hectare basis. We find that organic farming adoption significantly reduces crop protection expenditures as well as total crop specific costs across all farming types. Differences in farm-level labour inputs between organic and non-organic farms turned out to be only minor. Farm income is smaller for organic farms without subsidies but higher when accounting for subsidies. However, all effects are highly heterogeneous across farm types and across space. Our study contributes to a better understanding of the economic implications of organic farming within the EU. These insights can inform both practitioners and policy decision-makers and facilitate the achievement of regional organic farming targets. |
| Keywords: | Farm Management |
| Date: | 2024–08–07 |
| URL: | https://d.repec.org/n?u=RePEc:ags:iaae24:344254 |
| By: | Hirsch, Stefan; Barissoul, Ayoub; Möhring, Niklas; Koppenberg, Maximilian |
| Abstract: | Organic agriculture is a widely established production system that contributes to various sustainability goals. The European Commission has set the goal of 25% organic agriculture in 2030 in its Farm to Fork strategy, putting it further in the spotlight. However, in most European countries, progress towards this goal is still limited, and some farmers even move back to conventional production. The further expansion of organic farming will crucially depend on the development of organic markets and its financial competitiveness. However, evidence on the economic performance of organic farmers in the EU and the decision to revert back to conventional production is lacking. We analyze the causal effect of dairy farmers’ decision to produce organically on farm competitiveness measured by price markups and profitability. Moreover, we investigate the decision of organic farmers to revert back to conventional farming using survivorship analysis. Our results reveal that organic farms achieve higher markups and profitability. But, there is a high probability of exiting the organic market in the early phase after transition - especially for farms with highly volatile economic performance. The results provide insights that may help to reach the political targets with regards to the market share of organic agriculture. |
| Keywords: | Farm Management, Industrial Organization, Livestock Production/Industries |
| Date: | 2024–08–07 |
| URL: | https://d.repec.org/n?u=RePEc:ags:iaae24:344258 |