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on Transition Economics |
| By: | Richiardi, Matteo; Vittal Katikireddi, S.; Daniel, N; Agneta, Cederstrom; David, Sonnewald; Leszek, Morawski; Michal, Brzezinski; Mikael, Rostila; Claire, L |
| Abstract: | This report presents the construction and analysis of a Multidimensional Index (MDI) of Well-Being across four European countries ─ Sweden, Germany, Spain, and Poland ─ using EU-SILC cross-sectional survey data spanning 2004–2024. Based on the OECD well-being framework, the analysis covers ten (out of eleven) key dimensions, including income and wealth, housing, health, safety, environment, life satisfaction, social connections, as well as jobs and earnings, education, and work–life for the working-age population (25─64). Standardized well-being scores (0─1) were constructed for each dimension, with composite indices derived using principal component analysis (PCA) where multiple indicators were available. The MDI was computed as the average of the available dimension scores. The findings reveal notable cross-country variation in both individual dimensions and overall well-being. Sweden consistently ranks highest, followed by Germany, while Spain shows comparatively lower levels. Poland demonstrates the strongest improvement over time. Trends indicate overall progress between 2004 and 2019, a decline during the COVID-19 period, and partial recovery thereafter. Age-related disparities are evident, with older individuals more likely to experience lower well-being. These findings underscore the role of multidimensional approaches in capturing inequalities in well-being across populations and contexts. |
| Date: | 2026–04–13 |
| URL: | https://d.repec.org/n?u=RePEc:ese:cempwp:cempa7-26 |
| By: | Yuriy Gorodnichenko; Marianna Kudlyak; Sophia Lobozynska; Iryna Skomorovych; Ulyana Vladychyn; Andriy Kovalyuk; Iryna Snovydovych |
| Abstract: | We elicit reservation wage premia for relocating to two Ukrainian cities, using a household survey conducted in mid-April to mid-July 2024 during the Russian invasion of Ukraine: high-risk Kharkiv (near the frontline) and moderate-risk Kyiv. Risk tolerance is a strong predictor of willingness to move to Kharkiv—the most risk-averse have roughly half the odds of the most risk-tolerant—but matters much less for Kyiv. This asymmetry is difficult to reconcile with the hypothesis that risk tolerance merely proxies for general mobility preferences. Separately estimating the elasticity of intertemporal substitution (EIS≈0.04), we find that including it renders risk tolerance insignificant for Kyiv but not for Kharkiv—a pattern illuminated by the Epstein-Zin separation of risk aversion and the EIS: risk aversion adds predictive power only when danger is high, while the EIS operates equally for both cities as a common relocation-cost channel. The very low EIS implies that relocation incentives structured as future benefits may be ineffective; front-loaded subsidies are more likely to influence behavior. |
| JEL: | D15 D81 J61 R23 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:35072 |
| By: | István Boza (ELTE Centre for Economic and Regional Studies); Szabó Endre (ELTE Centre for Economic and Regional Studies, Databank); Róbert Károlyi (ELTE Centre for Economic and Regional Studies; Corvinus University of Budapest) |
| Abstract: | Immigrants’ economic integration remains one of the most debated aspects of international migration, as they often experience persistent employment and wage disadvantages compared to natives. We provide the first large-scale evidence on immigrant pay gaps in Hungary (and more generally from Central Eastern Europe) based on administrative matched employer–employee data. Contrary to the pattern documented in Western Europe and North America, most immigrant groups in Hungary earn more than native-born workers on average. We show that this advantage is largely explained by sorting: immigrants are disproportionately employed in higher-paying firms and higher-paying occupation–firm cells, rather than receiving higher pay than natives for the same job in the same workplace. Within-job pay differences are close to zero for transborder Hungarians (ethnic Hungarians born abroad) and remain small but positive for other immigrant groups. These results suggest that immigrant wage differentials in Hungary reflect employer demand and selective recruitment into relatively well-paying segments of the labor market, rather than systematic under or overpayment. Decomposition results (based on the AKM literature) reinforce our interpretation: immigrant–native wage differentials in Hungary are driven mainly by between-job sorting along skill composition and firm and occupation pay premia, not within-job pay inequality. |
| Keywords: | wage differentials, immigration, segregation, wage sorting |
| JEL: | J31 J61 J71 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:has:discpr:2606 |
| By: | Egamberdiev, Bekhzod; Khamidov, Imomjon; Davronova, Durdonabonu |
| Abstract: | Emerging discourses present evidence from post-Soviet countries, suggesting that remittances may complement household resilience capacity in the face of climate change. This manuscript, using “COVID-19 Georgia High-Frequency Survey (GHFS)” data from the World Bank, aims to analyse the effect of remittance on household resilience capacity in Georgia. The measurement strategy employs the Resilience Index Measurement Analysis (RIMA) approach, as proposed by the Food and Agriculture Organisation (FAO). RIMA measures Resilience Index Capacity (RCI) through available household adaptive options (pillars): Access to Basic Services (ABS), Adaptive Capacity (AC), Social Safety Nets (SSN), and Sensitivity (S). The results of the econometric model indicate that remittance has a positive impact on RCI, primarily through the ABS and AC pillars. Further policies in Georgia should consider the role of remittances in enhancing household resilience, ensuring that the negative consequences of shocks do not have long-lasting effects on household livelihoods. |
| Keywords: | Remittance, climate change, household resilience, capacity |
| JEL: | A1 Q00 C1 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:339912 |
| By: | Patrik Kupkovic (National Bank of Slovakia) |
| Abstract: | The global financial and sovereign debt crises prompted policymakers to prioritise systemic risk and financial stability. Since then, the use of borrower-based measures in macroprudential policy has become central to managing credit booms and housing market imbalances. However, evidence on the formal and rule-based implementation of this policy remains limited, particularly in small open economies that are prone to financial imbalances. Using a vector error correction model (VECM), this paper estimates Slovakia’s long-run macroprudential rule and its short-run asymmetric adjustment. The results indicate a transition from a passive, procyclical stance to an active, countercyclical framework between 2009 and 2014. In the short run, most of the tightening occurs when conditions are excessively loose, consistent with a strong initial move towards a tighter borrower-based framework. These findings contribute to the empirical evidence on both the long-run macroprudential rule and the asymmetric short-run responses that influence policy transmission. |
| JEL: | C32 C51 E61 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:svk:wpaper:1140 |
| By: | Mario Holzner (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | This assessment provides a long-term analysis of Hungary’s economic trajectory under the administration of Viktor Orbán since 2010. Taking the start of the European financial crisis in 2009 as a baseline, it evaluates the impact of ‘Orbánomics’ – a policy mix defined by deterioration in institutional quality, state intervention and sectoral taxation for the creation of a nationalist, capitalist class, and an ‘Eastern Opening’ strategy to diversify away from the European Union. Through a comparative lens that focuses on the region of Central, East and Southeast Europe (CESEE), the study finds that Hungary has transitioned away from being a regional front-runner to languishing in the midfield. Key findings highlight a widening 7 percentage point GDP growth gap relative to the CESEE average, a significant slowdown in convergence toward the ‘Austrian Benchmark’, compared to peers like Croatia and Romania, and a regressive shift in sectoral specialisation from high-innovation ICT toward low-complexity real estate. Furthermore, the analysis underscores the severe ‘institutional tax’ resulting from deteriorating governance scores and the subsequent withholding of EU transfers, such as the funds from the Recovery and Resilience Facility (RRF). The study concludes that without urgent political and economic reform and institutional reconciliation, Hungary risks permanent entrenchment in a nationalist development trap. |
| Keywords: | Hungary, Economic Convergence, Foreign Direct Investment, Institutional Governance, Rule of Law, Sectoral Specialisation, EU Recovery and Resilience Facility |
| JEL: | E60 O47 O52 P26 P27 F21 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:wii:pnotes:pn:107 |
| By: | Jose Garcia-Louzao; Alessandro Ruggieri |
| Abstract: | We exploit a novel opportunity to study the dynamics of wage inequality and labor market competition over the course of economic development. Our context is Lithuania, where two decades of sustained growth and labor market tightening coincided with a substantial decline in wage inequality. We first fit a two-way fixed-effects model with worker and firm heterogeneity and document that the compression of the variance of firm fixed effects has been the main source of the fall in inequality. Guided by a standard dynamic monopsony model, we then estimate firms' labor supply elasticities and show that labor market competition has increased over the same period. Finally, we construct a shift-share instrument and provide evidence that new job opportunities created by the accession to the European Union in 2004 contributed to the fall in inequality through their impact on labor market competition in Lithuania. |
| JEL: | J31 J42 O15 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:bge:wpaper:1570 |
| By: | Egamberdiev, Bekhzod; Primov, Abdulla; Khamidov, Imomjon |
| Abstract: | The study provides some fresh insights into the Land Degradation Neutrality (LDN) framework in Bukhara and Karakalpakstan in Uzbekistan. The findings confirm that loss in production, soil erosion, deforestation, decreasing arable land, salinization, and water management are the most prevailing challenges in the region. Our resilience analysis confirms that access to basic services, assets, adaptive capacity, and social safety nets enhances household resilience. Socio-economic results of LDN show the importance of an institutional approach, a capacity approach, a gender-sensitive approach, food and water integration, financial support and incentives, and other synergies. For LDN, special attention is needed to restore biodiversity and productivity, which may yield significant economic benefits for agriculture and horticulture. A priority should be given to a sustainable development approach that will focus on socio-economic development, environmental protection, and inclusivity in the regions. There is a noticeable intervention showing the disintegration of the ecosystem in supporting income-generating activities in the region. This situation requires a sustainable development intervention enhancing the implementation of LDN. |
| Keywords: | Degradation, Climate change, Land, Resilience |
| JEL: | A1 Q10 R20 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esrepo:339913 |
| By: | Alisher Aldashev; Alexander M. Danzer |
| Abstract: | Ceremonies are central to social life, yet the pressure to conform to community spending norms traps households in a collectively suboptimal equilibrium, imposing severe financial burdens. Using nationally and regionally representative longitudinal data from Tajikistan and Kyrgyzstan, we document that ceremonial expenditures are sizeable, display striking income inelasticities, and are strongly shaped by local spending norms, making celebrations disproportionately burdensome for poorer households. We evaluate two distinct regulatory approaches through separate natural experiments: a top-down legal ban on lavish wedding celebrations in Tajikistan and a bottom-up, community-driven norm agreement in Kyrgyzstan—interventions with close analogues in Afghanistan, China, India, and Pakistan. Both yield reductions in ceremonial spending, with household savings larger under the bottom-up approach, but they operate through fundamentally different compliance mechanisms. The top-down reform hinges on external monitoring and credible sanctions, while the bottom-up intervention relies on social trust and norm internalization. These findings identify external enforcement and social trust as the key compliance mechanisms underlying top-down and bottom-up consumption regulations respectively, with broader implications for the design of policies targeting socially motivated expenditures. |
| Keywords: | ceremonial spending, conspicuous consumption, compliance, monitoring, trust, anti-poverty policy |
| JEL: | D12 D04 H31 O17 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12610 |
| By: | Ciani, Matilde |
| Abstract: | The Global Race for AI is on, and Europe is trying to play its part. However, there is a serious mismatch between data center capacity planning and energy supply planning in the EU. • Despite ambitious plans, the EU risks falling further behind: China is on track to triple its data center capacity by 2030, and the United States to double, leaving Europe with significantly lower shares of global capacity • EU data centers' electricity demand is forecast to double over the next five years, from ∼80 and 168 TWh; the upper end of this range is equivalent to the entire electricity demand of a country such as Polandin2024. The share of total EU electricity demand absorbed by data centers will thus rise rapidly from around 2% in 2023 to around 5% in 2030. • Covering the additional demand by data centers is only possible if the rest of the economy remains largely static. This is, however, unlikely, as the electricity demand in other sectors will increase as well, in particular in the housing market (heat pumps) and in the transportation sector (electric vehicles). • The uncovered additional electricity demand of data centers by 2030 is substantial and equivalent to the 2024 net electricity consumption of countries like Belgium or Finland. Poor planning may thus leave the European Union in a dangerous trilemma: giving up on growth, net-zero goals, or on the AI race. |
| Keywords: | Artificial Intelligence, Digitalisation, Energy, Künstliche Intelligenz, Digitalisierung, Elektrizität |
| JEL: | O33 Q43 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkpb:340031 |