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on Microeconomic European Issues |
| By: | Schnitzlein, Daniel D. (University of Applied Labour Studies (HdBA), Innside Statistics, IZA@LISER); Lersch, Philipp M. (DIW Berlin, HU Berlin); Wiborg, Øyvind N. (University of Oslo, DIW Berlin) |
| Abstract: | We study intragenerational wealth rank mobility, investigating three dimensions: (i) wealth mobility over the life cycle, (ii) heterogeneity in mobility among subgroups and wealth components, and (iii) commonalities and differences across divergent country contexts. We use data from Germany (SOEP, N= 12, 380 individuals), Norway (administrative register data, N=3, 460, 602), and Britain (BHPS, N=7, 910; UKHLS, N=18, 428), examining intraindividual rank-rank correlations, the distribution of rank changes, and rank mobility curves. We find substantial mobility in wealth, which is often of short range. Mobility increases with the observation window (5, 10, 15 years). Wealth mobility is highest in Norway, followed by similar mobilitiy in Britain and Germany. Furthermore, early life cycle stages and parental tertiary education are associated with greater mobility, whereas gender differences are small. Mobility is higher in financial than in housing wealth, but remains substantial in the latter. Our findings reveal substantial but predominantly short-range wealth mobility, indicating that individual wealth positions are less static than cross-sectional distributions suggest, even as the overall structure of inequality persists. |
| Keywords: | wealth mobility, wealth rank, wealth dynamics |
| JEL: | D31 J60 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18596 |
| By: | Jacopo Mazza; Mariapia Mendola; Marco Scipioni |
| Abstract: | We examine the impact of exposure to immigrants during formative years on attitudes toward immigration later on in life. Our research design combines granular administrative data on immigrant shares in Germany with longitudinal individual-level data on immigration sentiment. Using panel fixed-effect estimates, identification leverages both spatial variation at critical ages and time variation induced by birth cohorts. We find that individuals exposed to higher shares of immigrants in formative years exhibit more negative attitudes toward immigration in adulthood. The impact is small in magnitude but specific to critical age and robust to contemporaneous immigration exposure. Our findings suggest that early and unmediated exposure to a diverse social and ethnic environment may have long-lasting consequences for the formation of immigration preferences. |
| Keywords: | Immigration Attitudes, Immigration Exposure, Impressionable Years, Political Preferences. |
| JEL: | F22 J15 F68 J61 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:mib:wpaper:571 |
| By: | Vincenzo Alfano; Salvatore Ercolano |
| Abstract: | This paper examines how cultural and political dimensions of normative looseness shape institutional quality across European regions. Drawing on the Regional Index of Looseness (RIL) developed by Alfano and Ercolano (2026), which distinguishes between a vertical dimension and a horizontal dimension of tightness-looseness, we estimate fractional probit models for 142 NUTS-2 regions using measureas of institutional quality (the European Quality of Government Index-EQI, and its pillars) as dependent variables. Our results show that overall looseness is negatively associated with institutional quality, but this aggregate effect is driven (almost) entirely by the vertical dimension, reflecting tolerance for defying hierarchical authority. On the other hand, the horizontal dimension proves largely insignificant. These findings suggest that the relationship between culture and governance operates primarily through the vertical legitimacy of state authority rather than through peer-level normative pluralism, with important implications for the debate on institutional reform and regional divergence in Europe. |
| Keywords: | institutional quality, tightness-looseness, regional governance, European regions, culture and institutions, EQI, fractional probit |
| JEL: | D73 H11 O43 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12627 |
| By: | Barbieri, Claudio; Guerini, Mattia; Napoletano, Mauro |
| Abstract: | We investigate the structure and evolution of credit growth across Italian provinces. Using an econometric approach based on Random Matrix Theory, we decompose regional credit dynamics into common and idiosyncratic components. We use a longitudinal dataset of credit at the provincial level (NUTS-3 regions) covering the period 2000–2020 and document substantial heterogeneity in the synchronization of credit growth across local economies. Our results suggest that, while aggregate credit growth is largely driven by a strong common component, substantial heterogeneity emerges across disaggregated credit categories. Household mortgage lending displays strong and persistent co-movement across provinces, whereas corporate mortgages and unsecured credit are characterized by higher dispersion and relatively weaker common dynamics. Regional divergence intensifies sharply between 2010 and 2014, coinciding with the European sovereign debt crisis, suggesting a fragmentation of local credit supply and demand. Importantly, divergence does not display any clear geographical pattern, underscoring the role of nonspatial factors in shaping regional credit dynamics. |
| Keywords: | Financial Economics, Risk and Uncertainty |
| Date: | 2026–05–04 |
| URL: | https://d.repec.org/n?u=RePEc:ags:feemwp:399465 |
| By: | Anne Katrine Borgbjerg; Hans Sigaard; Michael Svarer; Rune Vejlin |
| Abstract: | We estimate the impact of an increase in the early retirement age (ERA) on labor supply, health, and healthcare use using a regression discontinuity design. Raising the ERA increased employment and use of public transfers. Effects on GP visits and painkiller use are precisely estimated, small, and insignificant, while antidepressant and cardiovascular drug use increased slightly, but only borderline significantly. Those induced to work had lower pre-reform income and wealth, whereas those not working despite exposure had poorer pre-reform health. We argue that possibilities for exiting employment serve as a mitigating mechanism by sorting vulnerable individuals out of employment. |
| Keywords: | retirement reforms, health, healthcare utilization |
| JEL: | I18 J18 J26 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12628 |
| By: | Beate Deixelberger (University of Graz, Austria) |
| Abstract: | Empirical evidence on the productivity effects of environmental regulation remains inconclusive, with mixed findings across studies. Using a large-scale panel of EU firms from 2013 to 2022, this paper examines how environmental policy stringency affects firm-level productivity. Productivity is estimated from production functions and regressed on policy stringency, measured using the OECD Climate Actions and Policies Measurement Framework, in a dynamic distributed-lag panel framework. Baseline estimates point to small and often statistically insignificant aggregate effects that are highly sensitive to macroeconomic conditions, reflecting policy-macro co-movement. Decomposing sectoral policies by instrument type suggests potentially offsetting effects, which attenuate once policy-macro co-movement is accounted for. Allowing for sectoral heterogeneity, however, reveals pronounced differences across industries, with more negative responses in input-intensive and regulation-exposed sectors and more positive ones in less exposed, more flexible sectors. These findings indicate that aggregate estimates mask economically meaningful heterogeneity across sectors and policy instruments, thereby helping to reconcile the mixed empirical evidence. |
| Keywords: | Environmental policy, Firm productivity, Sectoral heterogeneity, Porter hypothesis, Dynamic panel data, European Union |
| JEL: | Q58 D24 C23 L25 |
| Date: | 2026–05 |
| URL: | https://d.repec.org/n?u=RePEc:grz:wpaper:2026-06 |
| By: | Hartwig, Matthias,; Meyer, Sophie Charlotte,; Wendsche, Johannes,; Wischniewski, Sascha, |
| Abstract: | This working paper explores how artificial intelligence is being introduced into the nursing profession in Germany and what this means for working conditions and job quality. Drawing on survey data, it assesses current levels of AI adoption and highlights the importance of human-centred approaches to ensure technology supports, rather than undermines, professional care work. |
| Keywords: | artificial intelligence, medical assistant |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ilo:ilowps:995691670002676 |
| By: | Herrmann, Friedrich; Hartig, Moritz; Isenhardt, Lars; Seifert, Stefan |
| Abstract: | This paper analyzes the impact of the abolition of the European sugar quota in 2017 on transport times and distances between sugar beet fields and processing factories in Lower Saxony, Germany. Using parcel-level data from the EU Integrated Administration and Control System (2012–2024), soil quality information, and OpenStreetMap-based routing, three weighted regression models were estimated. Results show that transport times increased by 6–9% following quota abolition, implying higher procurement costs for sugar factories. This finding contrasts with earlier expectations of lower costs and welfare gains from sugar market liberalization. Additional factors such as ecological focus areas, maize expansion linked to biogas production, and soil quality also influenced transport outcomes. The study provides the first empirical evidence on transport cost effects of quota abolition in Germany, demonstrating that liberalization of final product markets does not necessarily generate efficiency gains in upstream agricultural input markets. |
| Keywords: | Crop Production/Industries |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aes026:397916 |
| By: | Biagini, Luigi |
| Abstract: | Producer Organisations (POs) are a central instrument of the Common Agricultural Policy (CAP), designed to strengthen farmers’ collective action, improve their market position and promote sustainable agricultural practices. Despite their long-standing policy relevance, evidence on whether PO membership yields measurable benefits at the individual farm level remains limited and inconclusive, particularly in the European context. This paper assesses the causal impact of PO membership on farm performance in the Italian fruit and vegetable (F&V) sector, where the PO model is most established and widespread. Using microdata from the Italian Farm Accountancy Data Network (FADN) covering the period 2014-2022, the study applies a Double Debiased Machine Learning (DDML) estimator to evaluate the effects of PO participation across multiple performance dimensions aligned with the objectives of Article 46 of Regulation (EU) 2021/2115. These dimensions include economic competitiveness, efficiency, financial structure, commercial and qualitative performance, environmental sustainability, risk management, and labour composition. Results reveal a nuanced and heterogeneous pattern across production systems. For permanent crop farms, PO membership is associated with improvements in output valorisation, quality-certified production, direct sales, investment intensity, and environmental indicators, alongside lower profitability margins and reduced asset turnover, suggesting a trade-off between quality upgrading and short-term cost efficiency. In contrast, for horticultural farms, the effects are more limited and often statistically insignificant. Overall, these contrasting patterns underline the importance of accounting for heterogeneity between production systems when evaluating the economic impacts of PO membership and suggest that policy interventions should be tailored accordingly. The study contributes to the literature in two main ways. First, it provides the first comprehensive multidimensional causal evaluation of PO membership effects in a major EU F&V producing country, explicitly comparing different production systems. Second, it demonstrates the value of the DDML approach for agricultural impact assessment, showing how high-dimensional causal methods can uncover complex and sometimes conflicting effects of collective action on farm performance. |
| Keywords: | Production Economics |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aes026:397880 |
| By: | Hans van Kippersluis (Erasmus University Rotterdam); Hongliang Zhang (Zhejiang University) |
| Abstract: | This paper investigates how tightening work requirements in subsidized child care affects parental employment. Using Dutch administrative data, we examine a 2012 reform that capped subsidized child care hours at 140% of the hours worked by the lesser-working parent. We identify affected households by creating proxy treatment and control groups based on older siblings’ pre-reform child care usage relative to the lesser-working parent’s work hours, then employ a triple-difference framework comparing virtually constrained and non-constrained families with and without younger siblings before and after the reform. Our findings reveal a pronounced gender difference in responses to stricter work requirements: fathers showed negligible changes, while mothers responded at both employment margins. At the extensive margin, many mothers exited the labor force, resulting in a persistent 12 percentage point decrease in maternal employment among affected families. At the intensive margin, some mothers increased their work hours to retain subsidies; these effects also persist over time. Child care use fell sharply, raising concerns about child development, especially for disadvantaged families. These findings demonstrate that intensifying work requirements can have unintended negative consequences on mothers’ workforce participation and family welfare, informing debates on welfare conditionality and child care policy. |
| JEL: | H31 J08 J13 |
| Date: | 2026–03–27 |
| URL: | https://d.repec.org/n?u=RePEc:tin:wpaper:20260014 |
| By: | Louise Devos; François Rycx; Thomas Senterre; Mélanie Volral (-) |
| Abstract: | Using matched employer–employee data on more than 62, 000 master’s graduates, this paper examines how gender differences in wage returns to fields of study vary by migration background and how educational specialisation contributes to the gender wage gap. We estimate wage regressions and apply a decomposition approach to separate sorting across fields from differences in pay within fields. Returns vary widely, with law, economics and management, and science yielding the highest returns, and women earning less than men within all fields, especially in high-paying ones. First-generation immigrants from developing countries obtain the lowest returns regardless of field of study, while second-generation immigrants approach but do not fully match natives. Fields of study explain a substantial share of gender wage inequality among natives and second-generation immigrants, whereas among first-generation immigrants broader wage disadvantages dominate. Results further vary with the number of parents originating from developing countries and with age at arrival. |
| Keywords: | gender wage gap, first- and second-generation immigrants, field of study, employer-employee data |
| JEL: | I24 I26 J16 J31 |
| Date: | 2026–05 |
| URL: | https://d.repec.org/n?u=RePEc:rug:rugwps:26/1141 |
| By: | Owusu-Sekyere, Enoch; Lindberg, Mikaela; Hansson, Helena |
| Abstract: | European dairy farmers face biological, climatic, and socioeconomic shocks that heighten vulnerability, underscoring the importance of understanding how risks are perceived across domains. While most studies focus on single risk types, this study analyses perceived risk among 399 specialised Swedish dairy farmers across climatic, socioeconomic, and biological domains, examining variation across regions, production systems, and the distribution of vulnerability. Using unconditional quantile regression, we estimate how farm, farmer, institutional, and informational characteristics shift the unconditional distribution of perceived risk. Results show that socioeconomic and biological risks are perceived as more prominent than climatic risks overall, although climate shocks are viewed as particularly damaging when they occur. Strong heterogeneity emerges across the risk distribution: most covariates are insignificant at the median but exert substantial effects at the upper tail, indicating structurally distinct high-risk farmers. Cooperative membership consistently reduces perceived risk across domains, while organic and mixed systems increase socioeconomic and overall risk, particularly among the most vulnerable farmers. Information provision and training often raise perceived risk, suggesting awareness effects not necessarily matched by effective risk reduction. Regional patterns vary across domains. These findings highlight that risk perceptions are multidimensional and unevenly distributed, implying that policies should prioritise high-risk farmers, tailor interventions to production systems, strengthen collective institutions, and combine information with actionable risk-management strategies. |
| Keywords: | Livestock Production/Industries |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aes026:397915 |
| By: | Dimitris Christelis (University of Glasgow, CSEF, and CFS); Dimitris Georgarakos (European Central Bank, University of Glasgow and CEPR); Tullio Jappelli (University of Naples Federico II, CSEF, and CEPR); Geoff Kenny (European Central Bank); Justus Meyer (European Central Bank, University of Glasgow) |
| Abstract: | We examine recent changes in stock market participation using newly available survey data from eleven euro area countries over the period 2020–2024. The evidence points to substantial turnover, with around10% of non-stockholders entering the market each year, and more than 20% of stockholders exiting. New entrants tend to have lower education, income, financial literacy, and risk tolerance than established investors, indicating a shift in the composition of market participants. We also highlight the growing importance of cryptocurrency investments among retail investors. Overall, these findings shed new light on evolving household financial behavior and its implications for market participation and financial stability. |
| Keywords: | Stocks, Mutual Funds, Crypto Assets, Household Finance, Consumer Expectations Survey |
| JEL: | D14 E21 G51 |
| Date: | 2026–04–28 |
| URL: | https://d.repec.org/n?u=RePEc:sef:csefwp:780 |
| By: | Maria Eugenia Heyaca; Andrea Pallotta |
| Abstract: | This paper examines how public audit institutions are exploring the use of artificial intelligence (AI) to strengthen oversight and improve audit processes. Drawing on consultations with 15 institutions across 14 countries and the European Union, it reviews emerging AI applications in areas such as anomaly detection, document processing, knowledge management and predictive risk assessment. The findings show that while AI adoption in public audit remains at an early stage, experimentation is expanding and many institutions are integrating AI within broader digital transformation efforts. However, a gap remains between pilot projects and scalable operational deployment. Key challenges include fragmented data systems, limited internal technical expertise and evolving governance frameworks. Strengthening data governance, digital infrastructure and internal development capacity will be critical for audit institutions seeking to responsibly scale AI while maintaining transparency, accountability and public trust. |
| Keywords: | Artificial Intelligence, Audit, Oversight, Public integrity |
| Date: | 2026–05–07 |
| URL: | https://d.repec.org/n?u=RePEc:oec:comaaa:58-en |
| By: | Sanny B. D. Afable (Max Planck Institute for Demographic Research, Rostock, Germany); Júlia Mikolai (Max Planck Institute for Demographic Research, Rostock, Germany); Megan Evans (Max Planck Institute for Demographic Research, Rostock, Germany); Kaarina Korhonen; Yana C. Vierboom (Max Planck Institute for Demographic Research, Rostock, Germany); Pekka Martikainen (Max Planck Institute for Demographic Research, Rostock, Germany); Hill Kulu (Max Planck Institute for Demographic Research, Rostock, Germany); Mikko Myrskylä (Max Planck Institute for Demographic Research, Rostock, Germany) |
| Abstract: | Geographic proximity facilitates contact and support between ageing parents and their adult children. While previous research has examined changes in living arrangements when parents age and become ill, little is known about how proximity to children itself is associated with their health and survival. This study examines how the distance between parents aged 60-85 and their adult children influences parents’ mortality in Finland. Using novel multigenerational data from the Finnish population register, we estimate discrete-time survival models for the associations of co-residence and proximity to children with parental mortality. Co-residence with children is associated with substantially lower mortality risks only among spouseless fathers, while living close to non-coresident children is linked to lower mortality among spouseless mothers and fathers. Children’s gender plays a limited role., However, close proximity to daughters is associated with lower mortality among spouseless mothers. Our findings suggest that living close to children matters for parents’ longevity when there is no spouse to provide support. |
| Keywords: | Finland, ageing, family, gerontology, health, spatial distance, survival, value of children |
| JEL: | J1 Z0 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:dem:wpaper:wp-2026-013 |
| By: | Boy, Karl-Friedrich; Peña-Lévano, Luis; Latacz-Lohmann, Uwe |
| Abstract: | Climate change and evolving regulations in the European Union (EU) place increasing pressure on agriculture to reduce its carbon footprint while remaining economically viable. The Farm-to-Fork strategy positions organic farming as a cornerstone of sustainable food systems, aiming for 25% of EU agricultural land to be organic by 2030. Yet, the economic feasibility of making this transition remains contested. This study provides a robust assessment on changes in farm profitability of transitioning from conventional to organic farming in Germany. Using a uniquely comprehensive large dataset of 1, 048, 139 farm-year observations from 54, 817 farms (between 1995 and 2018), we identify all converting farms and match them to structurally similar nonconverting “twin” farms. A difference-in-Differences framework adapted for staggered adoption and fixed effects estimates the impact of conversion on operating profit. Preliminary results indicate an average post-conversion increase of €11, 580 per year. Effects vary by region and farm type, underscoring heterogeneity in economic outcomes. These findings highlight the complexity of aligning environmental goals with farm-level incentives and demonstrate the value of long-run panel data for evidence-based policy. Further research will refine identification and explore distributional impacts to inform strategies under the EU Green Deal. |
| Keywords: | Crop Production/Industries |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aes026:397883 |
| By: | Cristina Bellés-Obrero (Institut d’Anàlisi Economica (IAE-CSIC), BSE and IEB); Manuel Flores (Department of Applied Economics, Universitat Autònoma de Barcelona); Pilar García-Gómez (Erasmus University (Erasmus School of Economics)); Sergi Jiménez-Martín (Universitat Pompeu Fabra (Department of Economics), BSE and FEDEA); Judit Vall-Castelló (University of Barcelona (Department of Economics), IEB and CRES (UPF).) |
| Abstract: | Spain, with one of the highest life expectancies globally and a rapidly ageing population, faces growing challenges in sustaining its pension, healthcare, and long-term care systems. This study examines trends in health inequalities among retired Spaniards from 2004 to 2022, using eight waves of the Survey of Health, Ageing and Retirement in Europe (SHARE). We analyse five health outcomes—limitations in daily and instrumental activities, number of chronic conditions, a composite health deficiency index, mental health (EURO-D scale), and cognitive performance—and use linear regression to assess income-related gradients, adjusted for age and sex. We also compute a catch-up time measure—the number of years a poorer individual would need to reach the same level of health as a richer individual—and concentration indices of bad health. We then examine how these inequalities change over time, allowing us to explore the potential influence of pension reforms within the context of Spain’s Beveridge-style healthcare system and tax-funded long-term care provision. Our results show no clear evidence that health inequality has increased from 2004 to 2022. These findings contribute to understanding how income disparities interact with social protection systems in ageing societies and inform the design of equitable health, long-term care, and pension policies. |
| Keywords: | transportation, housing prices, within cities |
| Date: | 2026–05 |
| URL: | https://d.repec.org/n?u=RePEc:uab:wprdea:wpdea2602 |
| By: | Das, Utsoree,; Dellaferrera, Giulia,; Ananian, Sévane, |
| Abstract: | This study examines the labour market outcomes of second-generation migrants in 32 countries (30 European countries, Australia and the United States of America). Drawing on data from labour force surveys and other household surveys contained in the ILO Microdata Repository, it focuses on labour force participation, unemployment, status in employment, wages and self-employment income. The results of the analysis reveal differences between second-generation migrants and other people born in the same country once the specific composition of that population group in terms of age and educational attainment is taken into account. Second-generation migrants generally exhibit lower labour market participation and higher unemployment rates, and they appear more likely to be employees than self-employed in several of the countries studied. With regard to earnings, on average across the countries studied, a small wage gap is observed between second-generation migrant workers and the rest of native-born workers, with wage premiums existing only in a few countries. The final chapter discusses relevant legal frameworks dealing with non-discrimination and employment that affect second-generation migrants. |
| Keywords: | migrant workers, labour market analysis, employment, income, international labour standards, methodology |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ilo:ilowps:995653274302676 |
| By: | Caroline Veldhuizen (Centre for Technology, Innovation and Culture (TIK), University of Oslo, Norway) |
| Abstract: | This paper examines how, during a 25-year timeline from 2000 to 2025, the European Union (EU) has used climate, industrial and environmental policy to shape the emergence of an integrated carbon management system (CMS). It assesses the extent to which the evolving framework exhibits characteristics consistent with transformative innovation policy (TIP). The CMS is conceptualised as an emergent, policy-driven ‘interconnected system complex’ centred on carbon capture and storage (CCS), carbon capture and utilisation (CCU) and carbon dioxide removal (CDR), linked to multiple socio-technical systems. Methodologically, the study undertakes qualitative analysis of 114 binding and non-binding EU policy documents, over the timeline. An adapted version of Kanger, Ghosh and Entsalo’s (2025) Intervention Points Framework (IPF), grounded in the multi-level perspective, multi-system interaction literature, policy mix research and TIP debates is used as the analytical lens. The IPF is refined to address formation of an emergent, socio-technical configuration, rather than transition in more stable, established meso-level systems. The paper makes a number of important empirical and conceptual contributions. Empirically, the study reveals both the depth and shallowness of policy leverage across different intervention points and establishes that the transformative potential of the emergent CMS is real but ambivalent and contested. Conceptually, the study illustrates how policy may be used as a vehicle for observing and describing evolving systemic structures and flows and their directionality, and the iterative processes of formation and change which define them. The study also enables insights about the political nature of the ‘landscape’ level of the MLP, and the importance of the policymaking paradigm, for determining the potential of policy to drive transformational change. |
| Date: | 2026–05 |
| URL: | https://d.repec.org/n?u=RePEc:tik:inowpp:20260504 |