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on Microeconomic European Issues |
| By: | Neumann, Uwe; Yasar, Serife |
| Abstract: | Traditional urban policy focuses mainly on redevelopment measures. Germany's Social City programme incorporates urban regeneration with support to local communities in deprived neighbourhoods. We use microdata on household characteristics from the German Socio-Economic Panel (SOEP) and microdata on housing prices from the RWI GEO-RED to assess the policy effects on household income and housing markets. Drawing on propensity score matching, we find that household incomes among programme areas have not been affected. However, hedonic pricing models reveal significant effects on housing prices and rents. |
| Abstract: | Stadterneuerungsprogramme konzentrieren sich traditionell überwiegend auf die städtebauliche Sanierung. Das deutsche Programm "Soziale Stadt" verband die Stadterneuerung mit der Unterstützung der Bevölkerung und des lokalen Gemeinwesens in benachteiligten Stadtteilen. Wir verwenden Mikrodaten zu Haushaltsmerkmalen aus dem Sozio-oekonomischen Panel (SOEP) und Mikrodaten aus dem RWI GEO-RED, um die Auswirkungen der "Sozialen Stadt" auf Haushaltseinkommen, Mieten und Wohnungspreise in den Programmgebieten zu untersuchen. Mit Hilfe von Matching-Analysen stellen wir fest, dass die Haushaltseinkommen nicht beeinflusst wurden. Hedonische Preismodelle zeigen dagegen signifikant positive Auswirkungen auf Wohnungspreise und Mieten. |
| Keywords: | Segregation, urban policy, matching, hedonic pricing models |
| JEL: | C21 O18 R23 R31 R58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:rwirep:311300 |
| By: | Gasior, Katrin; Jara, H. Xavier; Makovec, Mattia |
| Abstract: | By means of counterfactual simulation methods, this paper quantifies the role of tax–benefit policies in mitigating the shock of the COVID-19 pandemic to household income in the European Union. The tax-benefit microsimulation model for the European Union EUROMOD is used to decompose changes in the income distribution into the effects of: (i) earnings losses due to COVID-19, (ii) automatic stabilizers, (iii) monetary compensation schemes introduced during the pandemic; and (iv) COVID-19-specific reforms to taxes and benefits implemented by European Union governments. The results show a great deal of heterogeneity between countries in terms of earnings losses and the effect of tax-benefit policies during the COVID-19 pandemic. In most countries, the largest contribution to cushioning the economic shock of the pandemic comes from monetary compensation schemes. Automatic stabilizers also play a role, mainly through the effects of social insurance contributions, taxes, and unemployment insurance benefits. Tax-benefit systems cushioned incomes to a large extent even among those most severely affected by the shock to earnings, with an important role for monetary compensation schemes, but also a larger stabilizing effect of unemployment insurance. Among automatic stabilizers, social assistance benefits played an important role in cushioning the income shock for the poorest quintiles among the most severely affected, but only in selected countries. |
| Date: | 2023–08–14 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10546 |
| By: | Jessen, Jonas; Jessen, Robin; Gałecka-Burdziak, Ewa; Góra, Marek; Kluve, Jochen |
| Abstract: | We quantify micro and macro effects of changes in the potential benefit duration (PBD) in unemployment insurance. In Poland, the PBD is 12 months for the newly unemployed if the previous year's county unemployment rate is more than 150% of the national average, and 6 months otherwise. We exploit this cut-off using regression discontinuity estimates on registry data containing the universe of unemployed from 2005 to 2019. For those whose PBD is directly affected by the policy rule, benefit recipients younger than 50, a PBD increase from 6 to 12 months leads to 13 percent higher unemployment (the micro effect). The aggregate effect on unemployment (the macro effect, which includes equilibrium effects) is entirely explained by this increase. We find no evidence of spill-overs on two distinct groups of unemployed whose PBD is unchanged and no effect on measures of labour market tightness. We cannot reject that the micro effect equals the macro effect. A decomposition analysis reveals that 12 months after an increase in the PBD, changes in exits from and entries into unemployment each contribute to about half of the overall increase in unemployment. |
| Abstract: | Wir quantifizieren die Mikro- und Makroeffekte von Änderungen der maximalen Bezugsdauer der Arbeitslosenversicherung. In Polen beträgt die PBD für neu Arbeitslose 12 Monate, wenn die Arbeitslosenquote des Vorjahresbezirks mehr als 150 % des nationalen Durchschnitts beträgt, und ansonsten 6 Monate. Wir nutzen dies Variation unter Verwendung von Regressionsdiskontinuitätsschätzungen für Registerdaten, die die Gesamtheit der Arbeitslosen von 2005 bis 2019 enthalten. Für diejenigen, deren maximale Bezugsdauer direkt von der politischen Regelung betroffen ist, d. h. für Leistungsempfänger unter 50 Jahren, führt eine Erhöhung der maximalen Bezugsdauer von 6 auf 12 Monate zu einer um 13 % höheren Arbeitslosigkeit (der Mikroeffekt). Der Gesamteffekt auf die Arbeitslosigkeit (der Makroeffekt, der Gleichgewichtseffekte beinhaltet) wird vollständig durch diese Erhöhung erklärt. Wir finden keine Anzeichen für Spillover-Effekte auf zwei verschiedene Gruppen von Arbeitslosen, deren maximale Bezugsdauer unverändert bleibt, und keine Auswirkungen auf Messgrößen für die Anspannung des Arbeitsmarktes. Wir können nicht zurückweisen, dass der Mikroeffekt dem Makroeffekt entspricht. Eine Dekompositionsanalyse zeigt, dass 12 Monate nach einer Erhöhung der maximalen Bezugsdauer die Veränderungen bei den Abgängen aus der und den Zugängen in die Arbeitslosigkeit jeweils etwa zur Hälfte zum Gesamtanstieg der Arbeitslosigkeit beitragen. |
| Keywords: | Unemployment benefits, extended benefits, spell duration, separation rate, regression discontinuity |
| JEL: | H55 J20 J65 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:rwirep:311189 |
| By: | Neumann, Uwe; Schmidt, Christoph M. |
| Abstract: | Inspired by the literature on social polarisation and residential segregation we draw on a probabilistic approach to pursue the evolution of household location preferences in West Germany. Using microdata from the German Socio-Economic Panel (SOEP) for the period 1984-2020 we demonstrate that structural economic change was accompanied by an increasing preference for residence in compact housing close to urban centres. Our analysis outlines that during the past two decades, intra-urban and urban-rural disparities by age and skills have begun to rise. Even for Germany, where segregation is moderate, any scenario suggesting neighbourhood-level convergence of living standards seems unlikely. |
| Abstract: | Anknüpfend an die Literatur über soziale Polarisierung und Segregation verfolgen wir mit Hilfe eines probabilistischen Ansatzes die Entwicklung der Standortpräferenzen von Haushalten in Westdeutschland. Anhand von Mikrodaten des Sozio-oekonomischen Panels (SOEP) für den Zeitraum 1984-2020 zeigen wir, dass der wirtschaftliche Strukturwandel mit einer zunehmenden Präferenz für das Wohnen in kompakten, zentrumsnahen Wohnungen einherging. Unsere Analyse verdeutlicht, dass in den letzten zwei Jahrzehnten die innerstädtischen und Stadt-Land-Unterschiede nach Alter und Qualifikation zugenommen haben. Selbst für Deutschland, wo die Segregation nur moderat ausgeprägt ist, erscheint eine Angleichung des Lebensstandards auf der Stadtteilebene unwahrscheinlich. |
| Keywords: | Household location, segregation, structural change, SOEP |
| JEL: | C25 R21 R23 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:rwirep:311297 |
| By: | Borowczyk-Martins, Daniel (Copenhagen Business School) |
| Abstract: | I produce novel evidence on worker reallocation across employers and between employment and nonemployment/unemployment for several European countries over the past two decades. I construct a dataset of monthly transition rates by developing a novel approach to measure them using cross-sectional data from the European Union Labor Force Survey. Transition rates exhibit similar cyclical patterns across countries, but their levels are persistently different. I compute an indicator of the pace of worker reallocation up the job ladder, and find that it varies substantially across countries, is pro-cyclical, and exhibits a systematic positive relationship with wage inflation. |
| Keywords: | labor market flows, job ladder, business cycles, wage inflation, Phillips curve |
| JEL: | E24 E32 J63 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17719 |
| By: | Antonietti, Roberto; Burlina, Chiara; Rodriguez-Pose, Andres |
| Abstract: | In this paper, we examine the effect of regional digital technology (including computing, communication equipment, software, and databases) on income distribution at the regional level. We aim to fill a gap in existing research by exploring the moderating role of formal and informal institutions —such as bonding and bridging social capital— in shaping how digital technology affects income inequality across European NUTS2 regions from 2006 to 2016. The results indicate that regions with greater access to digital technology are prone to higher levels of income inequality. However, this negative link is mitigated by strong formal and informal institutions, particularly through improved government effectiveness and bridging social capital. The findings are robust to potential endogeneity concerns, as demonstrated by the instrumental variable approach adopted. |
| Keywords: | digital technology; institutions; inequalities; European regions |
| JEL: | R11 O33 D02 R58 |
| Date: | 2025–04–30 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:127062 |
| By: | Krieger, Bastian; Füner, Lena; Prüfer, Malte |
| Abstract: | We explore which start-ups win in public procurement. Most notably, our analysis presents significant differences between firms applying for tenders with and without functional criteria. First, we use representative telephone survey data to estimate public procurement applicant and winner shares for the population of German start-ups. We find in total eleven percent of start-up firms applied for public tenders since their foundation, and 65 percent of them won at least one tender. Additionally, younger and more innovative firms tend to apply for and win tenders with functional criteria, while older and less innovative firms tend to apply for and win tenders without functional criteria. Second, we employ non-linear estimation methods to identify firm and founder characteristics predicting to win public tenders within the group of applicants. Start-ups applying for functional tenders profit from smaller foundation teams, younger founders, more industry experience, and higher innovation capacities, while start-ups applying for tenders without functional criteria, profit from larger foundation teams, older founders, more industry experience, and the absence of founding experience |
| Keywords: | Public procurement, Start-up firms, Innovation |
| JEL: | H57 L26 O38 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:312190 |
| By: | Pierluigi, Angelino; Czarnitzki, Dirk; Hovdan, Brigitte |
| Abstract: | Drawing on a longitudinal database of Belgian firms over the years 2014-2020, this study investigates the joint effect of R&D grants and R&D tax credits on R&D inputs and innovation outputs. We estimate Conditional Difference-in-Difference (CDiD) models and apply both treatment effects estimators that account for heterogeneous, staggered treatments as well as standard two-way fixed effects DiD estimators. We find positive treatment effects for both grants and tax credits on R&D employment, R&D employment intensity, and total R&D expenditures. R&D tax credits have a significant positive impact on the share of sales of new or improved products. By comparing the results obtained by the two econometric methods, we also find that the standard two-way fixed effects models may lead partially to potentially wrong conclusions about the impacts of such policies, as the traditional estimators may not sufficiently account for the complexity of how the policy instrument affect firm-level outcomes. |
| Keywords: | Policy mix, innovation, R&D grants, R&D tax credits, difference-in-difference |
| JEL: | D22 H25 L53 O32 O38 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:312192 |
| By: | Baldassarre, Alessio; Calà, Valerio Ferdinando; Carullo, Danilo; Dudu, Hasan; Fusco, Elisa Marie; Giacobbe, Pasquale; Orecchia, Carlo |
| Abstract: | The main goal of regional computable general equilibrium models is to analyze how different regions within a specific area react to certain shocks. Therefore, countries with high heterogeneity among regions, like Italy, constitute an interesting case study for regional computable general equilibrium model analysis. This paper presents the regional part of the new (recursive) dynamic single-country computable general equilibrium model called the Italian Regional and Environmental Computable General Equilibrium of the Department of Finance, based on the Mitigation, Adaptation and New Technologies Applied General Equilibrium model of the World Bank. A new regional social accounting matrix for Italy (20 regions at the Nomenclature of territorial units for statistics level) has been constructed. The social accounting matrix is used as input data to simulate the abolition of the regional tax on productive activities (regional business tax) through three different scenarios, focusing on the effects on gross domestic product, regional value added, and welfare. The results show that under the modeling assumptions, the complete abolition of the regional tax on productive activities would positively impact Italian economic growth and regional welfare. |
| Date: | 2023–03–29 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10387 |
| By: | Martínez, José David Cisneros; McCabe, Scott; Fernandez-Morales, Antonio |
| Abstract: | This study assesses the relative contributions that different demand segments make to a reduction in seasonality at tourism destinations. Specifically, we ask which types of markets are the most effective for counter-balancing seasonality in high seasonality-prone coastal destinations? This is particularly important where there is a significant presence of ‘non-market’ based segments, such as social tourists, as in Benidorm, Spain. The study integrates different statistical techniques to compare the relative effectiveness over time of four different groups (Imserso travellers, other domestic, the UK and other international) on the seasonality of demand in Benidorm. Using 10 years of accommodation data, we analyse trends in counter-seasonal effects of each segment through significant economic events (the Global Financial Crash and Brexit). The results confirm that both Imserso and UK travellers reduce seasonality in Benidorm. However, the analysis shows varying magnitudes and the specific effects that each segment exerts on seasonal variations, which has implications for destination managers when selecting strategies for market development to reduce seasonality over time. |
| Date: | 2023–08–25 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:g379k_v1 |
| By: | Millard, Joe; Akimova, Evelina Tamerlanov; Ding, Xuejie; Leasure, Douglas; Zhao, Bo; Mills, Melinda |
| Abstract: | The COVID-19 pandemic has had an unprecedented effect on health, well-being, and socioeconomic conditions worldwide. One consequence was changes in social media activity, disruption of schedules, and potentially sleep. We use Twitter data to explore changes in daily and nightly online activity at the onset of the COVID-19 pandemic in 2020. Using a pseudo-random sample of 2, 489 users across 6 cities in the UK (Aberdeen, Belfast, Bristol, Cardiff, London, and Manchester), 4 cities in Italy (Milan, Naples, Rome, and Turin), and 4 cities in Sweden (Göteborg, Malmo, Stockholm, Uppsala), we test the extent to which the COVID-19 pandemic changed online activity in Europe. Using a dataset of ~24 million tweets, we show that tweet activity increased by ~20% in 2020 relative to the previous non-pandemic year of 2019. We further show that tweet activity is associated with the degree of government response to COVID-19, particularly during the day, and that the stringency of restrictions was the strongest predictive component of change in tweet count. |
| Date: | 2023–10–03 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:g9apk_v1 |
| By: | di Giovanni, Julian; Garcia Santana, Manuel Jose; Jeenas, Priit; Moral Benito, Enrique; Pijoan-Mas, Josep |
| Abstract: | This paper provides a framework to study how different allocation systems of public procurement contracts affect firm dynamics and long-run macroeconomic outcomes. It builds a novel panel dataset for Spain that merges public procurement data, credit register loan data, and quasi-census firm-level data. The paper provides evidence consistent with the hypothesis that procurement contracts act as collateral for firms and help them grow out of their financial constraints. The paper then builds a model of firm dynamics with asset- and earnings-based borrowing constraints and a government that buys goods and services from private sector firms, and uses it to quantify the long-run macroeconomic consequences of alternative procurement allocation systems. The findings show that policies which promote the participation of small firms have sizeable macroeconomic effects, but the net impact on aggregate output is ambiguous. While these policies help small firms grow and overcome financial constraints, which increases output in the long run, these policies also increase the cost of government purchases and reduce saving incentives for large firms, decreasing the effective provision of public goods and output in the private sector, respectively. The relative importance of these forces depends on how the policy is implemented and the type and strength of financial frictions. |
| Date: | 2023–07–24 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10522 |