nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2014‒06‒28
six papers chosen by
Carlo D'Ippoliti
La Sapienza University of Rome

  1. Η θεωρία οικονομικών κρίσεων του Karl Marx By Mariolis, Theodore
  2. Are children driving the gender wage gap? Comparative evidence from Poland and Hungary By Ewa Cukrowska; Anna Lovasz
  3. The French Revolution and German industrialization: The new institutional economics rewrites history By Kopsidis, Michael; Bromley, Daniel W.
  4. Central BanksÕ Transparency: Words as Signals By Francesco Cendron; Gianfranco Tusset
  5. Making the Most of Capital in the 21st Century By Peter H. Lindert
  6. Gender differences in sorting By Merlino L.P.; Parrotta P.; Pozzoli D.

  1. By: Mariolis, Theodore
    Abstract: This paper argues that Marx’s theory of economic crises constitutes a system of three discrete ‘sub-theories’ on: (i) distributive growth cycles; (ii) effective demand; and (iii) the tendency of the average profit rate to fall. The paper explores the relationships between these sub-theories and concludes that the third sub-theory overdetermines the other two. Finally, it evaluates the Marxian system of crises on the basis of modern economic science findings.
    Keywords: Bhaduri-Marglin accumulation function; Goodwin’s growth cycle models; Law of the tendency of the average profit rate to fall; Marx’s system of eco-nomic crises; Sraffian theory; Total factor productivity
    JEL: E11 E22 E32 O33
    Date: 2014–06
  2. By: Ewa Cukrowska (Faculty of Economic Sciences, University of Warsaw); Anna Lovasz (Institute of Economics, Centre for Economic and Regional Studies of the Hungarian Academy of Sciences, and Eotvos Lorand University)
    Abstract: The paper examines how much children and responsibilities related with them contribute towards the divergence of men’s and women’s wages, and consequently, to the formation of the gender wage gap. To derive the relative contribution of gender specific wage inequalities caused by the parenthood to the overall gender wage gap, we provide a modification of standard Oaxaca-Blinder decomposition method. Contrary to our expectations, the findings show that most of the gender wage inequality is due to the positive wage gap between men who do and do not have children and not due to the wage penalty incurred by mothers.
    Keywords: Gender Wage Gap, Family Gap, Motherhood Penalty, Wage Gap Decomposition
    JEL: J13 J22
    Date: 2014
  3. By: Kopsidis, Michael; Bromley, Daniel W.
    Abstract: Our purpose here is to challenge the big-bang approach to economic history in which some alleged institutional imposition - a deus machine - is claimed to launch a series of new economic behaviors. This so-called prime mover is then carried forward by the inexorable forces of path dependency to change the course of history. The specific creation story under investigation here is the French Revolution and the subsequent Napoleonic conquest of parts of Germany. We show that recent efforts to re-write German economic history using this theoretical model cannot be supported by the abundant and concerted empirical evidence. --
    Keywords: institutional change,French Revolution,Germany,Prussian reforms,agricultural development,industrialization
    JEL: N43 N53 N63 O43
    Date: 2014
  4. By: Francesco Cendron; Gianfranco Tusset (University of Padova)
    Abstract: Evidence of the evolution of ideas on central bank transparency can be found in the central bankersÕ speeches during the period 1997-2012. Exploratory analysis of the central bankersÕ speeches provides an overview of their use of language: speeches define the historical evolution of central banksÕ discourses, and thus suggest how the concept of transparency has evolved. The paper invites reconsideration of the role of central banksÕ transparency through analysis of central bankersÕ speeches and their use of language as a part of their communication framework. While literature on transparency indexes shows increasing central bank transparency, the semantic area of transparency in central bankersÕ speeches changed over the period 1997-2012. The paper investigates this evolution until recent shift towards new semantic areas pertaining more to the financial and real economy than to traditional inflation concerns.
    Keywords: central banks; transparency; language; speeches; content analysis.
    JEL: B59 E58
    Date: 2014–04
  5. By: Peter H. Lindert
    Abstract: Thomas Piketty’s monumental Capital in the Twenty-First Century has transported us to a higher understanding of historical movements in inequality. This essay ranks the promise of different paths that scholars can usefully follow from the point to which his book has guided us. The main path to follow is the income inequality history so well paved by Piketty and his team, supported by the book’s history of twentieth-century shocks and political responses. Less promising is the book’s emphasis on wealth, capital, and the rate of return. Following the income route to better inequality predictions requires merging his team’s history of top income shares with the history of inequality movements within the lower 90 percent. It also invites a merger with other scholarship that has shown positive growth effects of the kind of democracy Piketty calls for.
    JEL: D31 D63 E01 H20 N10 N30
    Date: 2014–06
  6. By: Merlino L.P.; Parrotta P.; Pozzoli D. (GSBE)
    Abstract: In this paper, we investigate the sorting of workers in firms to understand gender gaps in labor market outcomes. Using Danish employer-employee matched data, we find strong evidence of glass ceilings in certain firms, especially after motherhood, preventing women from climbing the career ladder and causing the most productive female workers to seek better jobs in more female-friendly firms in which they can pursue small career advancements. Nonetheless, gender differences in promotion persist and are found to be similar in all firms when we focus on large career advancements. These results provide evidence of the sticky floor hypothesis, which, together with the costs associated with changing employer, generates persistent gender gaps.
    Keywords: Economics of Gender; Non-labor Discrimination; Human Capital; Skills; Occupational Choice; Labor Productivity; Job, Occupational, and Intergenerational Mobility; Promotion;
    JEL: J16 J24 J62
    Date: 2014

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