nep-tra New Economics Papers
on Transition Economics
Issue of 2024‒09‒09
eight papers chosen by
Maksym Obrizan, Kyiv School of Economics


  1. Risk Attitudes and Informal Employment in Ukraine By Thomas Dohmen; Melanie Khamis; Hartmut Lehmann; Norberto Pignatti
  2. The Russian War in Ukraine Impact on Kyrgyzstan's Food Market and Agri-Food Sector in 2022 By Tilekeyev, Kanat
  3. Valuation of Marine Ecosystem Services in the Black Sea By Halkos, George; Zisiadou, Argyro; Aslanidis, Panagiotis-Stavros; Koundouri, Phoebe
  4. Labour market integration of Ukrainian refugees: An international perspective By Kosyakova, Yuliya; Gatskova, Kseniia; Koch, Theresa; Adunts, Davit; Braunfels, Joseph; Goßner, Laura; Konle-Seidl, Regina; Schwanhäuser, Silvia; Vandenhirtz, Marie
  5. Firm Quality and Health Maintenance By Bíró, A.;; Elek, P.;
  6. Democratic Favor Channel By Ziho Park
  7. Priming and prejudice: Experimental evidence on negative news frames and discrimination in German welfare offices By Rueß, Stefanie; Schneider, Gerald; Vogler, Jan
  8. The Environmental Policies of Populist Radical Right Governments By Ganga, Paula

  1. By: Thomas Dohmen; Melanie Khamis; Hartmut Lehmann; Norberto Pignatti
    Abstract: Using data from the four waves of the Ukrainian Longitudinal Monitoring Survey - ULMS (2003, 2004, 2007 and 2012), we analyze whether workers with a higher willingness to take risks are more likely to select into informal employment contracts. The data permit us to distinguish between five employment states: formal and informal self-employment, formal salaried employment, voluntary informal salaried employment, and involuntary informal salaried employment. The empirical evidence reveals risk attitudes as a strong causal determinant of the incidence of all types of informal employment but involuntary informal salaried employment. We also provide evidence that our results are not driven by reverse causality: risk attitudes impact on the choice of employment state whilst this latter does not influence risk attitudes. Linking risk attitudes with selection into employment states, we also can establish that along the formal-informal divide the Ukrainian labor market is predominantly segmented for salaried workers whilst it is integrated for the self-employed.
    Keywords: Risk attitudes, informal employment, labor market segmentation, Ukraine
    JEL: D91 J42 J46 P23
    Date: 2024–08
    URL: https://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2024_588
  2. By: Tilekeyev, Kanat
    Abstract: Russia's war in Ukraine caused a spike in basic food costs as well as agro-input prices (fuel, seeds, and fertilizer) in 2022. Fertilizer prices rose double on average compared to 2021, reducing farmer demand and import supply to Kyrgyzstan. Fuel costs increased, while market demand remained constant. Farmers had a seasonal diesel shortage in the second half of 2022. The financial market remained stable and lending in agriculture increased due to the stable interest rates for agricultural lending. Analysis of the four key food markets in Kyrgyzstan (wheat, sugar, potato and meat) demonstrated increase in prices under the external and internal factors - increased input prices, trade restrictions imposed by supply states, increased cost of logistics and growth of domestic production factors. The overall situation demonstrates that agriculture is undergoing a severe shock as a result of rising prices, which feeds into the cascade effect of rising prices. However, the country's population's consumer ability cannot keep up with price increases, resulting in a reduction in demand for more expensive foods.
    Keywords: Agricultural and Food Policy, Food Security and Poverty
    Date: 2024–08–07
    URL: https://d.repec.org/n?u=RePEc:ags:cfcp15:344314
  3. By: Halkos, George; Zisiadou, Argyro; Aslanidis, Panagiotis-Stavros; Koundouri, Phoebe
    Abstract: The Black Sea region faces pressures on ecosystem services (ES) due to invasive species, waste, eutrophication, and biodiversity loss. We apply a stated preference technique, i.e. a choice experiment (CE), aiming to compare three hypothetical scenarios regarding the welfare impact of ES on citizens’ lives in terms of willingness-to-pay (WTP). Initially, the distributed questionnaires underwentan econometric pre-test regarding the orthogonality of all CE scenarios in R-studio. Questionnaire distribution occurred from 29/05/2023 to 21/11/2023 with a total number of 375 responders from the three pilot sites: Turkey, Romania, and Georgia. The highest WTP occurred in Turkey (56.72€) for all scenarios followed by Georgia (49.04€), and Romania (47.96€). Moreover, the greater WTP value is demonstrated by Scenario C (25.51€) followed by Scenarios B (25.17€) and Scenario A (25.11€). Interesting socioeconomic characteristics derived from Cross-Tabulation Analysis that notably cannot impact the WTP are income, gender, and age. Furthermore, marital status and education might affect the WTP only in Romania, however, this is not demonstrated in Turkeyor Georgia. Interestingly, the higher level of education in Romania is linked to lower WTP, nevertheless, education typically relates to environmental sensitivity. Another aspect is that occupation can change responders’ WTP in Romania and Georgia, but not in Turkey. In essence, the economic valuation of ES through CE methodology can offer policymaking insights into Blue Growth initiatives.
    Keywords: ecosystem management; human impacts; valuation studies; choice experiment; stated preferences; blue economy;sustainable development goals.
    JEL: Q0 Q01 Q1 Q5 Q50 Q51 R10 R11 R14
    Date: 2024–08–15
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:121733
  4. By: Kosyakova, Yuliya (Institute for Employment Research (IAB), Nuremberg, Germany ; Universität Bamberg); Gatskova, Kseniia (Institute for Employment Research (IAB), Nuremberg, Germany); Koch, Theresa (Institute for Employment Research (IAB), Nuremberg, Germany); Adunts, Davit (Institute for Employment Research (IAB), Nuremberg, Germany); Braunfels, Joseph (Institute for Employment Research (IAB), Nuremberg, Germany); Goßner, Laura (Institute for Employment Research (IAB), Nuremberg, Germany); Konle-Seidl, Regina (Institute for Employment Research (IAB), Nuremberg, Germany); Schwanhäuser, Silvia (Institute for Employment Research (IAB), Nuremberg, Germany); Vandenhirtz, Marie (IAB)
    Abstract: "This research report investigates the labor market integration of Ukrainian refugees across various European countries, including many EU member states as well as the UK, Switzerland, and Norway, in the period from Q4 2022 to Q1 2024. Comparing the employment rates of Ukrainian refugees across different countries presents challenges due to the absence of a uniform database, such as the European Labor Force Survey (LFS). To address this, we constructed a comprehensive database that harmonizes employment data from comparable time points and employs consistent definitions for calculating rates. Employment data were obtained from administrative records in countries where available, and from various surveys conducted at different times in other nations. Additionally, this study compiles indicators currently recognized in research as having an influence on labor market integration, using comparable data and definitions to enhance the robustness of the analysis. From the end of 2022 to early 2024, the employment rates of Ukrainian refugees in Europe showed significant variation. By the first quarter of 2024, Germany's employment rate had reached nearly 27 percent, placing it in the European midfield. At the end of 2022, countries such as the UK, the Netherlands, and Lithuania had employment rates exceeding 50 percent, while Croatia, Norway, Romania, Slovenia, Switzerland, and Spain reported rates below 15 percent. Germany also reported a mid-field rate of 20 percent at the end of 2022. Throughout 2023, Denmark, Austria, France, Poland, and Lithuania saw modest increases in employment rates. However, this upward trend did not persist; some countries experienced stagnation, while others, including Romania, saw declines. Conversely, Slovenia, Switzerland, Finland, Spain, and Estonia witnessed slight increases. The UK consistently maintained its high employment rate across the period. In Germany, beyond the influence of seasonal fluctuations, there was a steady annual increase in employment rates, culminating in 27 percent by early 2024. To investigate the reasons behind the varying employment rates of Ukrainian refugees across different European countries, this report delves into the relationships between employment rates and various socio-demographic, institutional, and economic factors. Our objective is to achieve a preliminary, yet more comprehensive understanding of the factors that drive labor market integration of refugees and to assess the impact of these factors. It is important to note that the analyses conducted are descriptive in nature, not causal. They are intended to provide an initial insight into the correlations, helping to identify potential areas for more in-depth, causal research in the future. Multivariate analyses underscore the crucial impact of the demographic composition of newcomers and the institutional and economic conditions in the destination countries on the labor market integration of Ukrainian refugees. Countries with a higher demand for low-skilled labor – measured by the size of the low-status labor market segment or employees in low-skilled occupations – tend to have higher employment rates for these individuals. This may be attributed to the fact that such jobs often have fewer language requirements and other qualifications, allowing for quicker job placements. Additionally, there is a negative correlation between strict labor market regulations, such as enhanced job security measures, and the likelihood of Ukrainian refugees finding employment. Furthermore, a negative correlation exists between the growth rate of unemployment and the employment of Ukrainian refugees, suggesting that newcomers are less likely to secure jobs in countries with increasing unemployment. Social infrastructure significantly impacts the labor market integration of Ukrainian refugees, many of whom are women with children. Consequently, our regression analysis shows that the availability of childcare is correlated with employment rate of refugees. Countries with better childcare facilities tend to see higher employment rates among refugees, as this infrastructure supports the ability of parents, particularly mothers, to enter the workforce. Similarly, comprehensive access to health services also correlates with higher employment rates, as it ensures that refugees are physically and mentally able to work. Interestingly, the relationship between social transfer payments, measured by the ratio of costs for caring for Ukrainian refugee per capita to the gross domestic product per capita of the respective host country, and employment rates is small and statistically insignificant. While it is often assumed that transfer payments play a central role in employment, this hypothesis is not confirmed in our analysis. However, social networks play a critical role in the employment integration of refugees. Countries with a larger Ukrainian community often report higher employment rates among Ukrainian refugees. Additionally, a strong command of English within the destination-country population positively corelates with employment rates, probably because it facilitates better communication and with that integration into the labor market. The integration policy strategies across EU member states and other European countries vary significantly. Some nations adopt a "work first" approach, prioritizing immediate employment without initial preparatory measures such as language courses or qualification measures. This strategy aims at quick job placement but often overlooks the need for the development of comprehensive skill. In contrast, other countries focus on the long-term, sustainable integration into the labor market. These nations implement comprehensive language programs, qualification measures, and targeted job placements that align more closely with the refugees' qualifications. Although this approach may result in so-called "lock-in" effects, where refugees might experience a delayed entry into the labor market, it is more likely to lead to stable employment relationships, jobs that match the refugees' skills, and higher earnings over time. Scandinavian studies underscore these differences in outcomes. Countries that emphasize the "work first" model tend to show higher employment rates for refugees in the short term. However, nations that invest in education and language acquisition demonstrate better integration results in the medium and long term. This success extends beyond mere employment rates and earnings to include broader aspects of social inclusion and quality of life for refugees. Such findings highlight the importance of tailored integration policies that consider both immediate employment needs and long-term societal benefits. The multivariate analyses further confirm the significant impact of demographic factors, particularly family constellation, on labor market integration. There is a statistically significant negative correlation between employment rates and older age and having more children per working-age woman. Finally, the data reveals a positive time trend: employment rates for all demographic groups tend to increase with the length of their residence. This suggests that many of the initial barriers to employment faced by refugees diminish over time, indicating that with longer stays, refugees are more likely to overcome these initial challenges and secure employment. Overall, this report underscores that Germany, with its comprehensive long-term integration strategies, is well-positioned to significantly enhance the employment rates of Ukrainian refugees over the medium to long term. Insights from refugees who arrived between 2013 and 2019 validate this potential, with employment rates reaching 68 percent eight years after arrival. These findings emphasize the necessity of continually reassessing and refining integration strategies to effectively promote the integration of refugees. Such adjustments are crucial not only for improving the immediate economic prospects of refugees but also for contributing to the broader economy, ultimately yielding substantial long-term benefits." (Author's abstract, IAB-Doku) ((en))
    Keywords: IAB-Open-Access-Publikation
    Date: 2024–08–02
    URL: https://d.repec.org/n?u=RePEc:iab:iabfob:202416(en)
  5. By: Bíró, A.;; Elek, P.;
    Abstract: We provide evidence on the impact of firm productivity on the health maintenance of employees. Using linked employer-employee administrative panel data supplemented with healthcare records from Hungary, we analyze the dynamics of healthcare use before and after moving to a new firm. We show that moving to a more productive firm leads to higher consumption of drugs for cardiovascular conditions and more physician visits, without evidence of deteriorating physical health, and, among older workers, to lower consumption of medications for mental health conditions. The results suggest that more productive firms have a beneficial effect on the detection of previously undiagnosed chronic illnesses and on the mental health of their employees. Plausible mechanisms include the higher quality of occupational health check-ups and less stressful job conditions.
    Keywords: firm productivity; healthcare use; mover identification; preventive care;
    JEL: I10 J32 J62
    Date: 2024–08
    URL: https://d.repec.org/n?u=RePEc:yor:hectdg:24/13
  6. By: Ziho Park
    Abstract: A large body of literature in economics and political science examines the impact of democracy and political freedoms on various outcomes using cross-country comparisons. This paper explores the possibility that any positive impact of democracy observed in these studies might be attributed to powerful democratic nations, their allies, and international organizations treating democracies more favorably than nondemocracies, a concept I refer to as democratic favor channel. Firstly, after I control for being targeted by sanctions from G7 or the United Nations and having military confrontations and cooperation with the West, most of the positive effects of democracy on growth in cross-country panel regressions become insignificant or negatively significant. Secondly, using the same empirical specification as this literature for demonstrating intermediating forces, I show that getting sanctioned, militarily attacked, and not having defense cooperation with the West are plausible channels through which democracy causes growth. Lastly, in the pre-Soviet-collapse period, which coincides with the time when democracy promotion was less often used as a justification for sanctions, the impact of democracy on GDP per capita is already weak or negative without any additional controls, and it becomes further negative once democratic favor is controlled. These findings support the democratic favor channel and challenge the idea that the institutional qualities of democracy per se lead to desirable outcomes. The critique provided in this paper applies to the broader comparative institutions literature in social sciences and political philosophy.
    Date: 2024–08
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2408.05059
  7. By: Rueß, Stefanie; Schneider, Gerald; Vogler, Jan
    Abstract: Does the priming of street-level bureaucrats with negative news stories on immigration influence their decisions regarding unemployment benefits? Previous research has established that regional-level peer pressure on public employees and the national-level salience of immigration debates intensify bureaucratic discrimination. By synthesizing the media framing and bureaucratic discrimination literatures, we expect that the priming of street-level bureaucrats with a news frame about welfare fraud committed by ethnic minorities leads to discriminatory practices. To investigate the validity of our theoretical propositions, we conducted a preregistered conjoint experiment with a large dataset, namely a representative survey of German street-level bureaucrats working in unemployment offices. We observe negative discrimination against Romanian claimants after exposure to a negative article, even when they provide internally consistent applications, but not toward Moroccan claimants. These effects are particularly pronounced among caseworkers leaning to the political right and living in federal states whose populations exhibit strong anti-immigration attitudes.
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:zbw:cexwps:301151
  8. By: Ganga, Paula
    Abstract: What are the consequences of electing populist leaders? This question is of continued importance as populist leaders challenge elections and impact politics across the world. While the consequences of populist electoral victories on democratic processes have been widely examined, other arenas are still being explored. The environmental policies of populist leaders are particularly important as climate change affects an increasing number of people on a global level. In this paper I show how populist radical right leaders respond to this global crisis by doubling down on economic nationalism and prioritizing national goals of development and claiming that fighting climate change is a Western imposition on domestic politics. I use a mixed methods approach that employs the most complete global data on populist leaders and their environmental stances as well as the case study of Hungary to show how populism doubles down on economic nationalism in the environmental arena.
    Keywords: Social and Behavioral Sciences, Populism in government, ideology, environment, policy
    Date: 2023–11–17
    URL: https://d.repec.org/n?u=RePEc:cdl:globco:qt15q5794k

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