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on Investment |
| By: | Haelbig, Mirja (IWH Halle); Mertens, Matthias (IWH Halle); Müller, Steffen (IWH Halle) |
| Abstract: | We study the productivity effect of the German national minimum wage by applying administrative firm data. At the firm level, we confirm positive effects on wages and negative employment effects and document higher productivity even net of output price increases. We find higher wages but no employment effects at the level of aggregate industry×region cells. The minimum wage increased aggregate productivity in manufacturing. We do not find that employment reallocation across firms contributed to these aggregate productivity gains, nor do we find improvements in allocative efficiency. Instead, the productivity gains from the minimum wage result from within-firm productivity improvements only. |
| Keywords: | minimum wage, firm productivity, output prices, factor reallocation |
| JEL: | L11 L25 J31 D24 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16160&r=inv |
| By: | Jonathan Meer; Hedieh Tajali |
| Abstract: | The nonprofit sector’s ability to absorb increases in labor costs differs from the private sector in a number of ways. We analyze how nonprofits are affected by changes in the minimum wage utilizing data from the Bureau of Labor Statistics and the Internal Revenue Service, linked to state minimum wages. We examine changes in reported employment and volunteering, as well as other financial statements such as revenues and expenses. The results from both datasets show a negative impact on employment for states with large statutory minimum wage increases. We observe some evidence for a reduction in the number of nonprofit establishments, fundraising expenses, and revenues from contributions. |
| JEL: | H42 J3 J40 J48 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31281&r=inv |
| By: | Div Bhagia |
| Abstract: | This paper presents a novel approach to distinguish the impact of duration-dependent forces and adverse selection on the exit rate from unemployment by leveraging variation in the length of layoff notices. I formulate a Mixed Hazard model in discrete time and specify the conditions under which variation in notice length enables the identification of structural duration dependence while allowing for arbitrary heterogeneity across workers. Utilizing data from the Displaced Worker Supplement (DWS), I employ the Generalized Method of Moments (GMM) to estimate the model. According to the estimates, the decline in the exit rate over the first 48 weeks of unemployment is largely due to the worsening composition of surviving jobseekers. Furthermore, I find that an individual's likelihood of exiting unemployment decreases initially, then increases until unemployment benefits run out, and remains steady thereafter. These findings are consistent with a standard search model where returns to search decline early in the spell. |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2305.17344&r=inv |
| By: | Haylock, Michael (University of Tübingen); Kampkötter, Patrick (University of Tübingen); Kosfeld, Michael (Goethe University Frankfurt); von Siemens, Ferdinand (University of Amsterdam) |
| Abstract: | We offer a comprehensive analysis of the organizational and behavioral foundations of employees' helping and antisocial behavior as an integral part of a firm's workplace culture and working climate. Using representative employer-employee panel data of larger German private-sector firms, we document a large variation in helping and antisocial behavior across firms. Our regression results show that differences in supervisors' people skills, as well as workforce trust, social preferences, and personality traits explain these firm-level differences in helping and antisocial behavior in the workplace. Our measures are derived from established survey constructs and include preference items that have been behaviorally validated in experimental games by prior research. Together, the results corroborate the importance of both leadership quality and workforce composition for the manifestation of helpful and hostile workplace cultures. |
| Keywords: | helping, antisocial behavior, leadership, social preferences, trust, personality, human resource management practices |
| JEL: | D01 M14 M21 M50 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16147&r=inv |
| By: | Birkholz, Carlo; Heinemann, Friedrich |
| Abstract: | In this report we update the quantitative analysis of the PEPP and PSPP conduct and analyze whether reinvestments are actually made in accordance to these claims. In prior versions of our report, we have detected patterns in the net purchases under PEPP and PSPP, which suggested systematic and long-run overweighting of individual countries relative to the ECB capital key. Our update assesses cumulative purchases of PEPP and PSPP over the course of the programmes, the divergence from the capital key of the final maximum PEPP and PSPP stocks in March and June 2022 respectively, and the subsequent developments since the end of net purchases until January 2023. The report closes by showing the magnitude of both programmes in each country of the Eurosystem relative to GDP and public debt. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewexb:2302&r=inv |
| By: | Alex Ilek (Bank of Israel); Nimrod Cohen (Bank of Israel) |
| Abstract: | We propose a semi-structural DSGE model for the Israeli economy, as a small open economy, which contains a financial friction in the household sector credit market. Such a friction is reflected in a positive relationship between households’ leverage ratio and their interest rate (credit spread) on debt, as evident in the Israeli data. Our main purpose is to evaluate the implications of such a friction on the implementation of monetary policy and macroprudential policy. Our two main findings are: First, it is important that the monetary policy will react also to developments in the credit market, such as credit spread widening, to increase effectiveness in achieving its main goals of stabilizing inflation and real activity. Second, macroprudential policy may increase the sensitivity of households’ credit spread to their leverage. Thus, this policy can mitigate or even prevent over-borrowing and reduce the risk of a debt deleveraging crisis. Moreover, in a case of demand weakness and debt deleveraging, in addition to accommodative monetary policy, the macroprudential policy may contribute to stimulating demand due to a corresponding reduction in credit spread. |
| Keywords: | Monetary Policy, Household Finance, Financial Friction, Macroprudential Policy, Leaning Against the Wind (LAW) |
| JEL: | E44 E52 G21 G51 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:boi:wpaper:2023.03&r=inv |
| By: | Fariha Kamal; Jessica McCloskey; Wei Ouyang (Bureau of Economic Analysis) |
| Abstract: | This paper describes the construction of two confidential crosswalk files enabling a comprehensive identification of multinational firms in the U.S. economy. The effort combines firm-level surveys on direct investment conducted by the U.S. Bureau of Economic Analysis (BEA) and the U.S. Census Bureau’s Business Register (BR) spanning the universe of employer businesses from 1997 to 2017. First, the parent crosswalk links BEA firm-level surveys on U.S. direct investment abroad and the BR. Second, the affiliate crosswalk links BEA firm-level surveys on foreign direct investment in the United States and the BR. Using these newly available links, we distinguish between U.S.- and foreign-owned multinational firms and describe their prevalence and economic activities in the national economy, by sector, and by geography. |
| JEL: | F10 F14 F23 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:bea:wpaper:0202&r=inv |
| By: | Bruno Ferman; Ot\'avio Tecchio |
| Abstract: | In many situations, researchers are interested in identifying dynamic effects of an irreversible treatment with a static binary instrumental variable (IV). For example, in evaluations of dynamic effects of training programs, with a single lottery determining eligibility. A common approach in these situations is to report per-period IV estimates. Under a dynamic extension of standard IV assumptions, we show that such IV estimators identify a weighted sum of treatment effects for different latent groups and treatment exposures. However, there is possibility of negative weights. We consider point and partial identification of dynamic treatment effects in this setting under different sets of assumptions. |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2305.18114&r=inv |
| By: | Zhu, Mengbing (Beijing Normal University); Li, Yi (Beijing Normal University); Xing, Chunbing (Renmin University of China) |
| Abstract: | This study examines the impact of husbands' wages on their wives' labor force participation rates and hours worked in urban China from 1995 to 2018. We find that an increase in husbands' wages reduces the labor force participation rate of married women with similar education levels. Controlling for gender identity—in particular, an aversion to the wife earning more than her husband—strengthens the income effect of husbands' wages. The labor supply effect of husbands' wages is more significant for younger and less-educated women and those with more children. The employed women's hours worked are negatively correlated with their husbands' wages, which is more significant for married women of older cohorts and with more children. This study helps us better understand the trend of the female labor supply in urban China. It sheds light on the impact of gender identity, welfare inequalities across families, and the well-being of households facing economic shocks. |
| Keywords: | husbands' wages, female labor force participation, hours worked, gender identity |
| JEL: | D13 D31 J16 J21 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16148&r=inv |
| By: | Elad DeMalach (Bank of Israel) |
| Abstract: | Secondary school enrollment has grown substantially over the past century, but there is surprisingly little economic evidence on the effects of geographic access to high schools, particularly for remote and disadvantaged communities. I attempt to fill this gap in the literature by examining the effects of openings of new local high schools for the Arab minority in Israel over two episodes: (1) Historical openings in 1972-1995 for Israeli Arabs (2) Recent openings in 2007-2014 for the poorer Bedouin population of the Negev in southern Israel. For both episodes, I find that the establishment of a high school in a locality increases high school completion rates by about 5-7 percentage points. The effect is higher for localities that were further away from pre-existing schools. For the historical Arab sample, I also examine the long-run effects and find an increase in post-secondary attainment and in women’s employment and earnings. Among the Negev Bedouin population, I also observe a decrease in the number of juvenile criminal records. Overall, these findings suggest that the geographic barrier to high school access is important, especially for disadvantaged communities, and that establishing a high school in remote communities can be beneficial in multiple aspects. |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:boi:wpaper:2023.02&r=inv |
| By: | Lee, Cheolwon (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kim, Cho Rong (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | 본 연구는 러시아와 우크라이나 간 전쟁 발발 이후 EU의 대러시아 제재가 중동부유럽 국가에 미치는 영향을 다각도로 분석하고, 우리의 대중동부유럽 경제관계에 대한 시사점을 도출하는 데 그 목적이 있다. 본 연구는 크게 다음과 같은 세 가지 이슈로 구성되어 있다. 첫째, 중동부유럽 국가가 러시아와 얼마나 밀접한 경제관계를 맺고 있는지, 둘째, 그에 따라 러시아발 지정학적 위기가 중동부유럽 경제에 어떠한 영향을 미치는지, 마지막 셋째, 한국 기업과 정부는 중동부유럽과의 경제관계에 어떻게 대응해야 하는지이다. 현지 진출기업 면담 결과, 러시아-우크라이나 전쟁 발발 이후 중동부유럽 진출 우리 기업의 비즈니스 환경 변화는 공급망 문제, 에너지 가격 급등, 고용난 등의 부문에서 가장 두드러지게 나타난 것으로 드러났다. The Russia-Ukraine war and EU sanctions against Russia are having a negative impact not only on Russia but also on the overall EU economy, and these negative effects are expected to continue into 2023 as the war prolongs. Central and Eastern European countries, which enjoy relatively strong trade, business and energy-related links with Russia, have been hit particularly hard. Central and Eastern European countries bordering Russia and Ukraine are relatively dependent on Russia for energy, and are expected to suffer the greatest economic damage in terms of trade relations. Policies toward Russia in Central and Eastern Europe have maintained various stances depending on country, ranging from Poland, which consistently maintains an anti-Russian stance, to Hungary, a typical pro-Russian country, or have recently undergone a change in stance. Central and Eastern European countries located on the EU border or those close to Russia and have some legacy of past socialist alliances, regardless of their pro-Russian or anti-Russian ties, generally have close economic ties with Russia. Therefore, after the invasion of Ukraine, the EU’s sanctions on Russia will inevitably have a serious impact on the Central and Eastern European countries in various sectors such as trade, investment, and finance as well as the energy sector, which is expected to suffer a direct short-term impact. In 2004 and 2007, Korean companies entered Central and Eastern Europe in large numbers including the four Visegrad countries (Poland, Czech Republic, Slovakia, Hungary), set production bases in Europe, and then made further investments. The Visegrad V4 countries represent the largest export market for Korea in the EU, accounting for 28.3% of its exports to the EU in 2020. As such, Central and Eastern Europe, where Korea has the most active economic cooperation in Europe, is expected to suffer the most serious and diverse negative impacts from geopolitical crises, including the recent Russia-Ukraine war.(the rest omitted) |
| Keywords: | 경제협력; 해외직접투자; 대러시아 제재; 중동부유럽 경제; Economic cooperation; foreign direct investment; sanctions against Russia; Central and Eastern European economy |
| Date: | 2022–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepre:2022_011&r=inv |
| By: | Cristina-Luiza Erimia (Ovidius University of Constanta, Constanta, Romania); Radu George Cazacincu (Ovidius University of Constanta, Constanta, Romania); Verginica Schroder (Ovidius University of Constanta, Constanta, Romania) |
| Abstract: | The EudraVigilance database is the central pillar for pharmacovigilance activities in the European Economic Area. The reporting of adverse reactions in the EEA through the EudraVigilance system enables the management of reported data and the analysis of adverse medicine reactions, with the information being available anywhere in the EEA. This article aims to analyze, on the one hand, the EU legislation on pharmacovigilance, the key activities and developments that will take place through the implementation of the EudraVigilance Operational Plan 2020–2022, a document launched by the European Medicines Agency to ensure the sustainability of EudraVigilance and the associated actions in support of EU pharmacovigilance and public health protection activities. On the other hand, the article aims to analyze how, in accordance with a specific pharmacovigilance plan and using the EudraVigilance system, the EMA and the national competent authorities (NCA) of the EU member states have monitored suspected adverse reactions to the COVID-19 vaccines, thereby contributing to the protection of the health of European citizens. |
| Keywords: | EU pharmacovigilance legislation, EudraVigilance, public health, European Economic Area, COVID-19 vaccines |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:smo:raiswp:0209&r=inv |
| By: | Cristina-Luiza Erimia (Ovidius University of Constanta, Faculty of Pharmacy, Romania) |
| Abstract: | Although the European Union has long faced the problem of shortages of medicines in recent years, both due to increased global demand and the COVID-19 pandemic, the problem has worsened exponentially. The shortage of medicines is a growing threat to public health, with a serious negative impact on health systems and on the right of every patient in the EU to have access to appropriate medical treatment. The COVID-19 pandemic has highlighted the importance of a smoothly functioning internal market and strong supply chains for medicines and medical equipment, as well as EU dependence on third countries in the health sector, given that 40% of finished medicines marketed in the EU come from third countries. Although Europe has a large production capacity, the supply chain still depends to a large extent on non-EU subcontractors for the production of active substances, where labor costs and environmental standards are often lower (60 to 80% of the active chemicals in medicines are produced outside the EU, mainly in China and India). In this context, this article aims to examine the legislative measures taken at the EU level to prepare for crisis situations in the field of medicines, mitigate shortages of medicinal products, and improve the security of supply. |
| Keywords: | EU legislation, shortages of medicinal products, public health emergencies, COVID-19 pandemic, medical devices |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:smo:raiswp:0186&r=inv |