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on Microeconomic European Issues |
| By: | Diana Bonfim; Sujiao Zhao; Olivier De Jonghe |
| 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. Passthrough 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. |
| JEL: | E52 G21 D14 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ptu:wpaper:w202514 |
| By: | Elena Bassoli (ETH Zurich; Ca’ Foscari University of Venice); Ylenia Brilli (Ca’ Foscari University of Venice; CHILD-Collegio Carlo Alberto) |
| Abstract: | This paper analyzes how a reform increasing statutory retirement age from 60 to 64 affected women's incentives for early retirement. In Italy, women can anticipate retirement at 57 (with 35 contribution years), but subject to an annuity penalization. Using Italian administrative data, we compare women eligible for the early retirement scheme before and after the reform, finding a small effect on women's retirement age, but a substantial negative effect on annuity. Effects are stronger for women with low labor market attachment or working full-time, suggesting that reconciliation of paid and unpaid works is an important driver of early retirement choices. |
| Keywords: | statutory retirement; early retirement; women’s labor market attachment; social security wealth |
| JEL: | J16 J20 J22 J26 H55 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ven:wpaper:2025:30 |
| By: | Jost, Charlotte Margarete; Nimeh, Zina (Maastricht Graduate School of Governance, RS: GSBE MGSoG, RS: UNU-MERIT Theme 2, RS: UNU-MERIT Theme 6, RS: UNU-MERIT Theme 3) |
| Abstract: | This paper investigates child poverty in Germany through a multidimensional lens, combining Sen’s Capability Approach and Bourdieu’s Capital Theory to develop a adapted Multidimensional Poverty Index (MPI) for children above 11 and youth aged 17. Drawing on data from the German Socio-Economic Panel (SOEP v38, 2021), this study identifies key patterns of multidimensional deprivation among children and adolescents across age groups, regions, and socio- demographic characteristics. The findings reveal that around 14 to 15 percent of both age groups are affected by multidimensional poverty nationwide. While monetary poverty remains a strong predictor (especially in East Germany), regional disparities between East and West are less pronounced than assumed. Among children above 11, key factors influencing multidimensional poverty include being male, having a direct migrant background, living in larger households, and experiencing monetary poverty. For 17-year-olds, financial hardship and living with a person in need of care emerge as the most significant determinants. Notably, the highest levels of deprivation are consistently found in the relationships dimension, echoing recent research on increasing youth loneliness. The study’s findings highlight how limited access to cultural, social, and economic capital constrains children’s capability development. Based on these insights, the paper proposes targeted policy measures, including inclusive early education reforms, increased child benefits, and expanded youth infrastructure. Emphasizing children’s agency and social inclusion, the recommendations aim to reduce structural inequalities and expand real opportunities for disadvantaged youth. |
| JEL: | I31 I32 I38 O18 |
| Date: | 2026–01–08 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2026001 |
| By: | Gabriella Conti (University College London, CEPR, CESIFO, HCEO, and IZA.); Rita Ginja (University of Bergen); Petra Person (Stanford University, NBER, and Research Institute of Industrial Economics); Barton Willage (University of Delaware, Department of Economics and NBER) |
| Abstract: | The motherhood penalty is well-documented, but what happens at the other end of the reproductive spectrum? Menopause Ñ a transition often marked by debilitating physical and psychological symptoms Ñ also entails substantial costs. Using population-wide Norwegian and Swedish data and quasi-experimental methods, we show that a menopause diagnosis leads to lasting drops in earnings and employment, alongside greater reliance on social transfers. Increasing access to menopause-related health care can help offset these losses. Our findings reveal the hidden economic toll of menopause and the potential gains from better support policies. |
| Keywords: | Menopause, Menopausal Hormone Therapy, Norway, Sweden, quasi-experimental variation, social transfers, low socioeconomic status. |
| JEL: | H72 I00 I30 J21 |
| Date: | 2026–01–05 |
| URL: | https://d.repec.org/n?u=RePEc:sef:csefwp:770 |
| By: | Steffen Altmann (University of Würzburg, University of Copenhagen); Robert Mahlstedt (University of Copenhagen); Malte Jacob Rattenborg (University of Copenhagen); Alexander Sebald (Copenhagen Business School); Sonja Settele (University of Cologne, ECONtribute, Max Planck Institute for Behavioral Economics & CEBI); Johannes Wohlfart (University of Cologne, ECONtribute, Max Planck Institute for Behavioral Economics & CEBI) |
| Abstract: | In a field experiment with 9, 000 Danish job seekers, we study how unemployed workers’ wage expectations affect job search and re-employment. In our survey, we generate exogenous variation in respondents’ wage expectations by informing a random half of them about re-employment wages of comparable workers. The intervention increases job-finding as measured in administrative data for both initially optimistic and initially pessimistic respondents, but through different channels: initial optimists lower their reservation wages and intensify search, while pessimists raise reservation wages and redirect applications toward local vacancies. Consistent with spatial search frictions, narrowing the geographic scope accelerates job finding among pessimists. |
| Keywords: | Expectations, job search |
| JEL: | D83 D84 J64 |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:ajk:ajkdps:386 |
| By: | Diego Sancho-Bosch (Department of Economic Analysis, Universidad Complutense de Madrid (Spain)); Elena Huergo (ICAE – Department of Economic Analysis, Universidad Complutense de Madrid (Spain)) |
| Abstract: | This paper examines how the level of public R&D subsidies and firm size jointly influence firms’ net R&D investment. Using data on Spanish manufacturing firms from 2008 to 2018, we estimate parametric and non-parametric dose–response functions after applying entropy weighting to balance covariate distributions across treatment levels. The results reveal an inverted U-shaped relationship between subsidy intensity and net R&D expenditure for small, medium-sized, and large firms, but not for very large firms, which display a negative linear pattern. We also find substantial heterogeneity in subsidy effects within both the SME and large-firm categories, and show that the public funding share of R&D expenditure at which the positive impact of subsidies peaks declines markedly with firm size. These findings suggest that support schemes should implement progressively lower maximum subsidy rates, rather than relying on only two distinct caps for SMEs and larger firms. Overall, the results underscore firm size as a critical determinant of innovation policy effectiveness and provide practical guidance for optimizing subsidy design. |
| Keywords: | R&D support, policy evaluation, dose-response, entropy balancing. |
| JEL: | L24 L25 O32 R11 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ucm:doicae:2509 |
| By: | Harkko, Jaakko; Mäkinen, Niklas; Peutere, Laura; Pyöriä, Satu |
| Abstract: | Background To encourage transitions into employment or education, governments impose benefit sanctions on unemployed individuals who fail to comply with programme requirements. However, evidence on the effectiveness of such sanctions remains limited, particularly among young adults. We investigated whether sanctions are associated with transitions into employment or education and whether effects differ among individuals facing labour market disadvantages. To estimate causal effects using observational data, we applied a target trial emulation framework. Methods We used nationwide Finnish register data on 51, 312 unemployed individuals under the age of 25 in 2022. Following a target trial emulation framework, we treated sanctions as the intervention and applied coarsened exact matching with importance weights to approximate random allocation. We constructed a labour market disadvantage score by summing five indicators associated with poorer labour market attachment. Time-to-event outcomes over a 24-month follow-up were estimated using Kaplan–Meier methods and parametric survival models. Results Overall, 78% of young adults transitioned to employment or education within an average of 10 months. With all sanctions, the median time to employment or education was slightly shorter for individuals who were sanctioned, with hazard ratios over 24 months. Among individuals without labour market disadvantages, sanctions were associated with a 2.7-month reduction in time to transition into employment or education. Among those with 3 to 5 labour market risks, the reduction was 0.1 months. Survival analyses supported the divergent associations among individuals with and without labour market disadvantages. Conclusions Unemployment benefit sanctions can facilitate transitions to employment or education among unemployed young adults without labour market disadvantages. However, the effects of sanctions differ between those with and without such disadvantages. Policymakers may use these findings to retarget sanctions or combine them with supportive measures. |
| Date: | 2026–01–05 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:xu3b6_v1 |
| By: | del Puente, Francesco; Alessandro, Sapio; Yanhong, Jin; Carl, Pray |
| Keywords: | Agricultural and Food Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360641 |
| By: | Hormigos Feliu Clara (European Commission - JRC); Florio Pietro (European Commission - JRC); Dijkstra Lewis (European Commission - JRC); Auteri Davide (European Commission - JRC); Bertozzi Cecilia (European Commission - JRC) |
| Abstract: | In its initiative towards more resilient rural areas, the EU’s Long-Term Vision for Rural Areas underlines the need to fund building renovation in rural areas, boost local renewable energy production and reduce energy poverty. In this policy brief, we look at the EU’s territories, and especially its rural areas, through these two connected perspectives: energy poverty and energy needs in the building stock. Data on thermal comfort, economic strain and dwelling energy efficiency indicates that rural areas in the EU could face higher levels of energy poverty compared to urban areas, especially in Bulgaria, Romania and Greece. On the other hand, rural areas are leading in renovations, with 29% of rural residents living in dwellings that improved their energy efficiency in recent years. A mostly low-rise rural building stock with large volumes per inhabitant, however, poses challenges for energy efficiency and needs in rural areas. In this context, rural areas stand to benefit substantially from rooftop photovoltaic development, aided by larger roof areas per inhabitant and a large share of rural ownership (78% of owned dwellings). With extensive rooftop PV adoption, rural areas could potentially produce 2 200 kWh/inhabitant annually, 38% more than the average household electricity consumption in the EU. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc145097 |
| By: | Nicoletta Berardi; Benjamin Bureau |
| Abstract: | This paper documents the existence and evolution of a gender gap in bank financing among non-financial firms, disentangling demand- and supply-side effects. Using quarterly panel data for French firms from 2012 to 2023, we find that this gap is driven by the demand side: women-led firms are between 12% and 26% less likely to apply for bank credit, depending on the type of loan. However, conditional on applying, the probability of rejection for women-led firms does not differ significantly from that of men-led firms. Moreover, we find no evidence that the gender gap in credit demand is closing over time. |
| Keywords: | Finance Gender Gap; Bank Credit; Gender Ask Gap |
| JEL: | E51 G30 J16 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:banfra:1024 |
| By: | Batista Filipe (European Commission - JRC); Curtale Riccardo (European Commission - JRC); Ribeiro Barranco Ricardo; Marconi Mattia; Tucci Michele (European Commission - JRC) |
| Abstract: | This study investigates place-based determinants of housing prices across the EU, looking at factors such as housing supply constraints, demographic trends, short-term rentals (STRs), accessibility, household income, geographical advantages, and other factors at municipal scale resolution. Key findings indicate that higher prices correlate with supply and demand imbalances (high demand driven by socioeconomic dynamics an limited supply elasticity). STRs, particularly in urban areas, have association with elevated sales prices, but the data does not allow to establish causality. STRs constitute only 1.2% of EU dwellings and are unlikely to generate widespread impact on the housing sector. The analysis reveals a nearly 20% stock of housing in 2021 which are not used as primary residence (either complete vacant or used ocasionally or seasonally), exacerbating supply shortages especially in areas in high demand for housing. Policy recommendations emphasize addressing structural barriers to housing supply, improving data on vacant properties, and a high subsidiarity in the management of STR, to better balance benefits and risks. The study supports the EU’s housing affordability agenda. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc145033 |
| By: | gert Bijnens; Joep Konings; Aaron Putseys |
| Abstract: | This paper identifies a firm-level Productivity J-curve induced by intangible investments. Using novel microdata on business-to-business transactions for Belgian firms, we construct a comprehensive measure of intangible in vestment covering software, R&D, design, training, and organizational capital. Our analysis shows that returns on intangibles substantially exceed those of traditional production factors, highlighting their central role in value creation. However, because intangible expenditures are rarely capitalized and are often recorded as intermediate inputs, they are not properly accounted for in conventional measures of total factor productivity (TFP). This misclassification creates systematic mismeasurement, whereby inputs are overstated relative to output in the short run, leading to an underestimation of TFP. Exploiting the lumpy nature of intangible expenditures within a difference-in-differences event-study framework, we document that such mismeasurement results in a persistent underestimation of TFP, by about 3% over a seven-year horizon. Given average measured TFP growth of 1% annually, this represents a substantial distortion. The bias is strongest among small, young, and low-capital intensive firms, reflecting slower absorption of intangible assets. By clarifying how intangible capital and emerging technologies such as AI systematically distort measured productivity, our findings provide new empirical insights into the productivity slowdown and the role of mismeasurement in modern economies. |
| Date: | 2025–11–03 |
| URL: | https://d.repec.org/n?u=RePEc:ete:vivwps:779815 |