nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2018‒11‒26
53 papers chosen by
Steve Ross
University of Connecticut

  1. The Contribution of Foreign Migration to Local Labor Market Adjustment By Michael Amior
  2. Location choices of Swedish independent schools – How does allowing for private provision affect the geography of the education market? By Edmark, Karin
  3. The Making of the Modern Metropolis: Evidence from London By Heblich, Stephan; Redding, Stephen J.; Sturm, Daniel M
  4. Teacher Effectiveness and Classroom Composition By Aucejo, Esteban; Coate, Patrick; Fruehwirth, Jane; Kelly, Sean; Mozenter, Zachary
  5. Perception of House Price Risk and Homeownership By Adelino, Manuel; Schoar, Antoinette S; Severino, Felipe
  6. Home Ownership and Monetary Policy Transmission By Koeniger, Winfried; Ramelet, Marc-Antoine
  7. Social policy or crowding-out? Tenant protection in comparative long-run perspective By Konstantin A. Kholodilin; Sebastian Kohl; Yulia Prozorova; Julien Licheron
  8. How do science teachers teach science - and does it matter? By Tarek Mostafa
  9. Inequality, Reordering and Divergent Growth: Processes of Neighbourhood Change in Dutch Cities By Modai-Snir, Tal; van Ham, Maarten
  10. The road home: the role of ethnicity in the post-Soviet migration By Jang, Youngook
  11. Learning to Import from Your Peers By Bisztray, Marta; Koren, Miklós; Szeidl, Adam
  12. How decentralised are education systems, and what does it mean for schools? By OECD
  13. The Impact of Low-Skill Refugees on Youth Education By Tumen, Semih
  14. A Life Cycle Model with Housing Tenure, Constrained Mortgage Finance and a Risky Asset under Uncertainty By Zhechun He; Peter Simmons
  15. The impact of commuting time over educational achievement: A machine learning approach By Dante Contreras; Daniel Hojman; Manuel Matas; Patricio Rodríguez; Nicolás Suárez
  16. Inequality of opportunity in education: Accounting for the contributions of Sibs, schools and sorting across East Africa By Paul Anand; Jere R. Behrman; Hai-Anh H. Dang; Sam Jones
  17. The Sacred and the Profane of Budget Cycles: Evidence from Italian Municipalities. By Revelli, Federico; Zotti, Roberto
  18. Nudging Parents to Choose Better Schools: The Importance of School Choice Architecture By Steven Glazerman; Ira Nichols-Barrer; Jon Valant; Jesse Chandler; Alyson Burnett
  19. Mobility and Congestion in Urban India By Prottoy A. Akbar; Victor Couture; Gilles Duranton; Adam Storeygard
  20. Social networks, mobility, and political participation: The potential for women’s self-help groups to improve access and use of public entitlement schemes in India By Kumar, Neha; Raghunathan, Kalyani; Arrieta, Alejandra; Jilani, Amir Hamza; Chakrabarti, Suman; Menon, Purnima; Quisumbing, Agnes R.
  21. Taxation and Innovation in the 20th Century By Akcigit, Ufuk; Grigsby, John; Nicholas, Tom; Stantcheva, Stefanie
  22. Peers’ Parents and Educational Attainment By Bobby Chung
  23. Balancing Financial Stability and Housing Affordability: The Case of Canada By Troy D Matheson
  24. Stress on the Sidewalk: Mental health costs of close proximity crime By Panka Bencsik
  25. Presenting School Choice Information to Parents: An Evidence-Based Guide, Appendix By Steven Glazerman; Ira Nichols-Barrer; Jon Valant; Alyson Burnett
  26. Unified Versus Divided Enrollment in School Choice: Improving Student Welfare in Chicago By Battal Doğan; M. Bumin Yenmez
  27. The Effects of Grade Retention on Human Capital Accumulation By Solis, Alex
  28. Not all cities are alike : House price heterogeneity and the design of macro-prudential policies in China By Funke, Michael; Tsang, Andrew; Zhu, Linxu
  29. Why Does Education Reduce Crime? By Bell, Brian; Costa, Rui; Machin, Stephen
  30. Wages, Creative Destruction, and Union Networks By Dale-Olsen, Harald
  31. Long-Term Effects of the Swedish Congestion Charges By Maria Börjesson
  32. Sustaining Effective Teacher Practice: The Impact of the EL Education Language Arts Curriculum By Jane Choi; Scott Richman; Sarah Dolfin
  33. Challenges for Accessibility Planning and Research in the Context of Sustainable Mobility By Cecília Silva; Anders Larsson
  34. Minimum Wage Competition between Local Governments in China By Li, Yanan; Kanbur, Ravi; Lin, Carl
  35. Presenting School Choice Information to Parents: An Evidence-Based Guide By Steven Glazerman; Ira Nichols-Barrer; Jon Valant; Alyson Burnett
  36. Spatial Approach to Heterogeneity of Inflation Expectations in the Euro Area By Karolina Tura-Gawron; Magdalena Szyszko
  37. Caste, Technology and Social Networks By Gupta, I.; Veettil, P.C.; Speelman, S.
  38. Inference for the neighborhood inequality index By ANDREOLI Francesco
  39. Do Potential Future Health Shocks Keep Older Americans from Using Their Housing Equity? By Tim Murray
  40. Developing an effective local industrial strategy By Naomi Clayton; Henry Overman
  41. Marriage Market Signals and Homeownership for the Never Married By Mundra, Kusum; Uwaifo Oyelere, Ruth
  42. The Analysis of Big Data on Cites and Regions - Some Computational and Statistical Challenges By Schintler, Laurie A.; Fischer, Manfred M.
  43. Regional Divergence and Import Competition By Javier Quintana González
  44. How the Inaccessibility Index Can Improve Transport Planning and Investment By Floridea di Ciommo
  45. Transport Planning With Accessibility Indices in the Netherlands By Karst T. Geurs
  46. Skill of the Immigrants and Vote of the Natives: Immigration and Nationalism in European Elections 2007-2016 By Simone Moriconi; Giovanni Peri; Riccardo Turati
  47. Diverging Trends in National and Local Concentration By Rossi-Hansberg, Esteban; Sarte, Pierre-Daniel; Trachter, Nicholas
  48. How long do returning migrants stay in their home county: Evidence from rural China during 1998 to 2015 By Bai, Y.; Wang, W.; Zhang, L.
  49. Altruism and Risk Sharing in Networks By Bourles, Renaud; Bramoulle, Yann; Perez-Richet, Eduardo
  50. Traffic Planning in Port-Cities By Peter Hall
  51. Network Formation with Local Complements and Global Substitutes: The Case of R&D Networks By Hsieh, Chih-Sheng; König, Michael; Liu, Xiaodong
  52. Second home investments By Christian Hilber
  53. A Proposed Data Set for Analyzing the Labor Market Trajectories of East Germans Around Reunification By Liepmann, Hannah; Müller, Dana

  1. By: Michael Amior
    Abstract: The US suffers from large regional disparities in employment rates which have persisted for many decades. It has been argued that foreign migration offers a remedy: it "greases the wheels" of the labor market by accelerating the adjustment of local population. Remarkably, I find that new migrants account for 30 to 60 percent of the average population response to local demand shocks since 1960. However, population growth is not significantly more responsive in locations better supplied by new migrants: the larger foreign contribution is almost entirely offset by a reduced contribution from internal mobility. This is fundamentally a story of "crowding out": I estimate that new foreign migrants to a commuting zone crowd out existing US residents one-for-one. The magnitude of this effect is puzzling, and it may be somewhat overstated by undercoverage of migrants in the census. Nevertheless, it appears to conflict with much of the existing literature, and I attempt to explain why. Methodologically, I offer tools to identify the local impact of immigration in the context of local dynamics.
    Keywords: migration, geographical mobility, local labor markets, employment
    JEL: J61 J64 R23
    Date: 2018–11
  2. By: Edmark, Karin (Swedish Institute for Social Research, Stockholm University)
    Abstract: This paper studies the location decisions of Swedish start-up independent schools. It makes use of the great expansion of independent schools following a reform implemented in 1992 to test what local market characteristics are correlated with independent school entry. The results suggest that independent schools are more likely to choose locations with a higher share of students with high-educated parents; a higher student population density; and a lower share of students with Swedish-born parents. There is also some evidence that independent schools are less likely to locate in municipalities with a left-wing political majority. These results are robust to various alternative and flexible definitions of local school markets, which were employed in order to alleviate the Modifiable Areal Unit Problem. For some of the included variables, the definition of the local market however had a large impact on the results, suggesting that the issue of how to define regions in spatial analyses can be important.
    Keywords: Private provision; Mixed markets; Education sector; Modifiable Areal Unit Problem
    JEL: H44 I28 L19 R32
    Date: 2018–11–14
  3. By: Heblich, Stephan; Redding, Stephen J.; Sturm, Daniel M
    Abstract: Modern metropolitan areas involve large concentrations of economic activity and the transport of millions of people each day between their residence and workplace. We use the revolution in transport technology from the invention of steam railways, newly-constructed spatially-disaggregated data for London from 1801-1921, and a quantitative urban model to provide evidence on the role of these commuting flows in supporting such concentrations of economic activity. Steam railways dramatically reduced travel times and permitted the first large-scale separation of workplace and residence. We show that our model is able to account for the observed changes in the organization of economic activity, both qualitatively and quantitatively. In counterfactuals, we find that removing the entire railway network reduces the population and the value of land and buildings in Greater London by 20 percent or more, and brings down commuting into the City of London from more than 370,000 to less than 60,000 workers.
    Keywords: agglomeration; Transportation; Urbanization
    JEL: O18 R12 R40
    Date: 2018–09
  4. By: Aucejo, Esteban; Coate, Patrick; Fruehwirth, Jane; Kelly, Sean; Mozenter, Zachary
    Abstract: This paper studies how the effectiveness of teachers varies by classroom composition. We combine random assignment of teachers to classrooms with rich measures of teacher effectiveness based on a popular observational protocol, Framework for Teaching, to overcome key endogeneity concerns related to measurement and matching. We find that complementarities between classroom composition and teaching practice play a significant role in student achievement. We identify two main mechanisms that are driving this result: 1) negative interactions between challenging and/or student-centered practices and heterogeneity in classroom prior achievement, and 2) positive interactions between classroom management skills and average classroom prior achievement. Our findings illustrate the multidimensional nature of teacher effectiveness and have important implications for prescribing teaching practice and evaluating teachers. Simulations show that teacher rankings change substantially simply from within-school classroom reallocations, suggesting the need for caution when using popular teaching evaluation rubrics in high-stakes settings.
    Keywords: effectiveness; Practices; Teacher
    JEL: I2 I20 I21
    Date: 2018–09
  5. By: Adelino, Manuel; Schoar, Antoinette S; Severino, Felipe
    Abstract: This paper analyzes the importance of household perceptions of house price risk in explaining homeownership choice. While a majority of US households (71%) believes that housing is a "safe" investment, renters are much more likely to perceive housing as risky. Risk perceptions vary across demographic groups, but significant differences persist after controlling for observables, such as income, savings, or location. Current housing decisions and future intentions to buy versus rent are strongly correlated with perceptions of house price risk. Households' exposure to housing risk due to financial constraints, expected mobility or labor income risk affect the decision to buy versus rent but do not mitigate the impact of risk perceptions on housing choices. Finally, we show that all households update their beliefs about the riskiness of housing in response to past (local) house price changes, but renters are much slower to update than owners. Since renters' decisions to buy are especially sensitive to their perception of house price risk, it might explain their delayed entry into home ownership during a house price run-up and even prolong the housing cycle.
    JEL: G28
    Date: 2018–09
  6. By: Koeniger, Winfried; Ramelet, Marc-Antoine
    Abstract: We present empirical evidence on the heterogeneity in monetary policy transmission across countries with different home ownership rates. We use household-level data together with shocks to the policy rate identified from high-frequency data. We find that housing tenure reacts more strongly to unexpected changes in the policy rate in Germany and Switzerland –the OECD countries with the lowest home ownership rates– compared with existing evidence for the U.S. An unexpected decrease in the policy rate by 25 basis points increases the home ownership rate by 0.8 percentage points in Germany and by 0.6 percentage points in Switzerland. The response of non-housing consumption in Switzerland is less heterogeneous across renters and mortgagors, and has a different pattern across age groups than in the U.S. We discuss economic explanations for these findings and implications for monetary policy.
    Keywords: Monetary policy transmission, Home ownership, Housing tenure, Consumption
    JEL: E21 E52 R21
    Date: 2018–11
  7. By: Konstantin A. Kholodilin (National Research University Higher School of Economics); Sebastian Kohl; Yulia Prozorova (National Research University Higher School of Economics); Julien Licheron (LISER)
    Abstract: In the shadow of homeownership and public housing, social policy through the regulation of private rental markets is a neglected and underestimated eld of social policy. This paper, therefore, presents unique new data on the development of private tenancy legislation through the binary coding of rent control, the protection of tenants from eviction, and rental housing rationing laws across more than 25 countries and 100 years. This long-run perspective reveals the dynamic eects of rent control on the rise of homeownership as the dominant tenure during the 20th century. We nd that both rent regulation and rationing legislation eectively increased homeownership, but only up to a certain threshold. We suggest that the short-term lure of an inexpensive social policy for tenants has led to the long-term marginalization of rental markets in many countries
    Keywords: Homeownership, rent control, tenure security, housing rationing, dynamic panel data model.
    JEL: C23 O18 R38
    Date: 2018
  8. By: Tarek Mostafa (OECD)
    Abstract: Much ink has been spilled debating the merits of different science-teaching practices. Proponents of enquiry-based science teaching argue that this approach exposes students to the procedures used by professional scientists, while the proponents of traditional practices emphasise the role of teachers in transmitting knowledge about science and in guiding students’ learning.So what is the best practice to use and is success contingent on the school environment?PISA 2015 asked students about the teaching practices they are exposed to at school. The analysis of these data reveals interesting findings about the effectiveness of certain teaching practices, particularly enquiry-based science activities and teacher-directed science instruction.
    Date: 2018–11–19
  9. By: Modai-Snir, Tal (Delft University of Technology); van Ham, Maarten (Delft University of Technology)
    Abstract: The socio-economic mosaic of urban neighbourhoods changes under the influence of three distinctive distributional processes: reordering of the socio-economic position of urban neighbourhoods; changing levels of inequality between neighbourhoods; and an overall growth or decline in income levels which affects all neighbourhoods of an urban area. With the common practices in analysing neighbourhood change, the roles of these underlying processes are unclear. This paper builds on a decomposition method to analyse the roles of the three components of change in four largest Dutch city-regions. The results points to substantial variations in components of change in the four city-regions.
    Keywords: neighbourhood change, socioeconomic change, income inequality, spatial polarisation, socio-spatial structure
    JEL: O18 P25 R23
    Date: 2018–10
  10. By: Jang, Youngook
    Abstract: This paper argues the importance of ethnic affinity in determining migration patterns using a newly constructed late- and post-Soviet dataset. The members of various indigenous ethnic groups, who had been spread across the Soviet territories, had to decide whether or not to leave the land in which they suddenly became diaspora after the dissolution of the USSR. The migration literature conventionally claims that potential migrants respond to the economic differentials between source and destination, but the post-Soviet case reveals that ethnicity also played a crucial and independent role in migration decision and destination choice. The trend of ethnic un-mixing is evidently seen in the novel dataset regarding the regional migration patterns of major ethnic groups in the post-Soviet space. Econometric analyses using this dataset also confirm that ethnic composition of a region, along with labour market conditions, has significant effects on the regional migration patterns.
    Keywords: Soviet/post-Soviet migration; determinants of migration; ethnic mixing and un-mixing
    JEL: F22 J15 P25
    Date: 2018–11–01
  11. By: Bisztray, Marta; Koren, Miklós; Szeidl, Adam
    Abstract: We use firm-level data from Hungary to estimate knowledge spillovers in importing through fine spatial and managerial networks. By identifying from variation in peers' import experience across source countries, by comparing the spillover from neighboring buildings with a cross-street placebo, and by exploiting plausibly exogenous firm moves, we obtain credible estimates and establish three results. (1) There are significant knowledge spillovers in both spatial and managerial networks. Having a peer which has imported from a particular country more than doubles the probability of starting to import from that country, but the effect quickly decays with distance. (2) Spillovers are heterogeneous: they are stronger when firms or peers are larger or more productive, and exhibit complementarities in firm and peer productivity. (3) The model-implied social multiplier is highly skewed, implying that targeting an import-encouragement policy to firms with many and productive neighbors can make it 26% more effective. These results highlight the benefit of firm clusters in facilitating the diffusion of business practices.
    Keywords: Imports; manager networks; peer effects; social multiplier; spatial spillovers
    JEL: D22 F14 R32
    Date: 2018–09
  12. By: OECD
    Abstract: School autonomy is popular but also complex and sometimes contentious. Many education systems have increased schools’ autonomy in the hope of achieving greater efficiency and closer adaptation to local needs. In some countries, however, increased autonomy has led to greater pressure on schools and local stakeholders. To be successful, school autonomy needs to be built on a set of key ingredients: a strong national framework and a clear strategic vision, well-adapted school head and teacher training programmes, solid accountability mechanisms, and the creation of a collaborative environment – between and within schools.
    Date: 2018–11–23
  13. By: Tumen, Semih (TED University)
    Abstract: This paper examines the impact of Syrian refugees on high school enrollment rates of native youth in Turkey. Syrian refugees are, on average, less skilled and more willing to work in low-pay informal jobs than Turkish natives. Refugees can influence native youth's school enrollment likelihood negatively through educational experience. But, at the same time, they can affect enrollment rates positively as they escalate competition for jobs with low-skill requirements. Using micro data from 2006 to 2016 and employing quasi-experimental methods, I find that high-school enrollment rates increased 2.7-3.6 percentage points among native youth in refugee-receiving regions. Furthermore, a one-percentage point increase in the refugee-to-population ratio in a region generates around 0.4 percentage point increase in native's high school enrollment rates. Most of the increase in high school enrollment comes from young males with lower parental backgrounds, which is consistent with the hypothesis that the main mechanism operates through the low-skill labor market. The regressions control for (i) variables proxying parental investment in human capital such as parental education, being in an intact family, and household size, (ii) regional economic activity, and (iii) regional availability of high schools and high school teachers.
    Keywords: low-skill Syrian refugees, youth education, high school enrollment
    JEL: I25 J61
    Date: 2018–10
  14. By: Zhechun He; Peter Simmons
    Abstract: We analyse optimal housing tenure choice (rent, buy or buy to let), consumption and a four asset portfolio in a life cycle model with uncertain labour income and asset returns (with a safe asset). Each period borrowing is possible only via a mortgage which is backed by housing collateral and which is itself subject to a loan to value and loan to income constraint. There is a minimum scale for house ownership. We derive some general theoretical properties of the solutions and closed-form solutions for specific preferences. To quantify the impact of uncertainty we simulate life cycle paths across random return and income realisations.
    Keywords: Divorce, housing tenure, mortgage, life cycle
    Date: 2018–11
  15. By: Dante Contreras; Daniel Hojman; Manuel Matas; Patricio Rodríguez; Nicolás Suárez
    Abstract: Taking advantage of georeferenced data from Chilean students, we estimate the impact of commuting time over academic achievement. As the commuting time is an endogenous variable, we use instrumental variables and fixed effects at school level to overcome this problem. Also, as we don’t know which mode of transport the students use, we complement our analysis using machine learning methods to predict the transportation mode. Our findings suggest that the commuting time has a negative effect over academic performance, but this effect is not always significant.
    Date: 2018–11
  16. By: Paul Anand (Open University, UK); Jere R. Behrman (University of Pennsylvania, USA); Hai-Anh H. Dang (The World Bank, USA); Sam Jones (UNU-WIDER)
    Abstract: Inequalities in the opportunity to obtain a good education in low-income countries are widely understood to be related to household resources and schooling quality. Yet, to date, most researchers have investigated the contributions of these two factors separately. This paper considers them jointly, paying special attention to their covariation, which indicates whether schools exacerbate or compensate for existing household-based inequalities. The paper develops a new variance decomposition framework and applies it to data on more than one million children in three low-income East African countries. The empirical results show that although household factors account for a significant share of total test score variation, variation in school quality and positive sorting between households and schools are, together, no less important. The analysis also finds evidence of substantial geographical heterogeneity in schooling quality. The paper concludes that promoting equity in education in East Africa requires policies that go beyond raising average school quality and should attend to the distribution of school quality as well as assortative matching between households and schools.
    Keywords: inequality of opportunity, education achievement, decomposition, household, school, sorting, Africa.
    JEL: D6 H0 I2 O1
    Date: 2018–10
  17. By: Revelli, Federico; Zotti, Roberto (University of Turin)
    Abstract: This paper investigates the influence of the staggered schedule of Italian mayoral elections and of the calendar of traditional religious celebrations (Patron Saint days) on the timing of local tax setting decisions and on the selection process of mayoral candidates. As for the impact of the electoral schedule on fiscal policy-making, we find evidence of a political budget cycle on yearly panel data from over 8,000 municipal authorities, with budgets deteriorating as elections approach and improving thereafter. When analyzing the specific timing of annual local tax rate decisions within election years, and using localities not holding elections in those same years as controls, we find that incumbents are more likely to schedule the crucial decisions about the local income tax rate during the months following the date of the elections. As for the effect of Patron Saint day celebrations, we find that fiscal decisions are less likely to be scheduled around those dates, compatibly with the hypothesis that those events constitute temporary shocks to the social capital of local communities, inducing incumbent governments to abstain from making potentially disruptive fiscal decisions under those sensitive circumstances. Finally, we find that when local elections happen to take place in the proximity of a locality’s traditional celebrations, the elected mayors tend to exhibit milder ideology and higher indicators of valence, reinforcing the hypothesis that local folklore contributes to common value thinking, social capital building, and sense of community.
    Date: 2018–10
  18. By: Steven Glazerman; Ira Nichols-Barrer; Jon Valant; Jesse Chandler; Alyson Burnett
    Abstract: This study reports on a factorial experiment using Bayesian hierarchical analysis to test the effects of different ways to present school information to low-income parents choosing schools for their children.
    Keywords: school choice, nudge, RCT, Bayesian, factorial experiment
    JEL: I
  19. By: Prottoy A. Akbar; Victor Couture; Gilles Duranton; Adam Storeygard
    Abstract: We develop a methodology to estimate robust city level vehicular mobility indices, and apply it to 154 Indian cities using 22 million counterfactual trips measured by a web mapping service. There is wide variation in mobility across cities. An exact decomposition shows this variation is driven more by differences in uncongested mobility than congestion. Under plausible assumptions, a one standard deviation improvement in uncongested speed creates much more mobility than optimal congestion pricing. Denser and more populated cities are slower, only in part because of congestion. Urban economic development is correlated with better (uncongested and overall) mobility despite worse congestion.
    JEL: R41
    Date: 2018–11
  20. By: Kumar, Neha; Raghunathan, Kalyani; Arrieta, Alejandra; Jilani, Amir Hamza; Chakrabarti, Suman; Menon, Purnima; Quisumbing, Agnes R.
    Abstract: Women’s self-help groups (SHGs) have increasingly been used as a vehicle for social, political, and economic empowerment as well as a platform for service delivery. Although a growing body of literature shows evidence of positive impacts of SHGs on various measures of empowerment, our understanding of ways in which SHGs improve awareness and use of public services is limited. To fill this knowledge gap, this paper first examines how SHG membership is associated with political participation, awareness, and use of government entitlement schemes. It further examines the effect of SHG membership on various measures of social networks and mobility. Using data collected in 2015 across five Indian states and matching methods to correct for endogeneity of SHG membership, we find that SHG members are more politically engaged. We also find that SHG members are not only more likely to know of certain public entitlements than non-members, they are significantly more likely to avail of a greater number of public entitlement schemes. Additionally, SHG members have wider social networks and greater mobility as compared to non-members. Our results suggest that SHGs have the potential to increase their members’ ability to hold public entities accountable and demand what is rightfully theirs. An important insight, however, is that the SHGs themselves cannot be expected to increase knowledge of public entitlement schemes in absence of a deliberate effort to do so by an external agency.
    Keywords: INDIA; SOUTH ASIA; ASIA; self-help groups; women; public services; empowerment; citizen participation; social capital; government entitlement; social networks; political participation
    Date: 2018
  21. By: Akcigit, Ufuk; Grigsby, John; Nicholas, Tom; Stantcheva, Stefanie
    Abstract: This paper studies the effect of corporate and personal taxes on innovation in the United States over the twentieth century. We use three new datasets: a panel of the universe of inventors who patent since 1920; a dataset of the employment, location and patents of firms active in R&D since 1921; and a historical state-level corporate tax database since 1900, which we link to an existing database on state-level personal income taxes. Our analysis focuses on the impact of taxes on individual inventors and firms (the micro level) and on states over time (the macro level). We propose several identification strategies, all of which yield consistent results: i) OLS with fixed effects, including inventor and state-times-year fixed effects, which make use of differences between tax brackets within a state-year cell and which absorb heterogeneity and contemporaneous changes in economic conditions; ii) an instrumental variable approach, which predicts changes in an individual or firm's total tax rate with changes in the federal tax rate only; iii) event studies, synthetic cohort case studies, and a border county strategy, which exploits tax variation across neighboring counties in different states. We find that taxes matter for innovation: higher personal and corporate income taxes negatively affect the quantity and quality of inventive activity and shift its location at the macro and micro levels. At the macro level, cross-state spillovers or business-stealing from one state to another are important, but do not account for all of the effect. Agglomeration effects from local innovation clusters tend to weaken responsiveness to taxation. Corporate inventors respond more strongly to taxes than their non-corporate counterparts.
    Keywords: business taxation; Corporate taxation; firms; Income taxes; Innovation; inventors; R&D tax credits; state taxation
    JEL: H24 H25 H31 J61 O31 O32 O33
    Date: 2018–09
  22. By: Bobby Chung (Clemson University)
    Abstract: This paper contributes to the discussion on childhood exposure by investigating the extent to which the educational background of peers’ parents is related to a child’s future college attainment. I analyze the friendship networks of a nationally representative sample of high-school students in the US and find that the spillover from peers’ parents of the same gender operates independently of peer effects. The effects are robust to addressing friendship selection. The same gender pattern suggests either the transmission of gender-specific information or the presence of a role model effect. Furthermore, the same gender spillover is significant only for students from lower-educated families. A student whose father is absent or less caring also experiences significant influence from peers’ fathers. The heterogeneity by own family background indicates the influences from parental and non-parental adults are substitutes.
    Keywords: peers' parents, social interactions, college attainment, childhood exposure
    JEL: C11 D91 I24 J10
    Date: 2018–11
  23. By: Troy D Matheson
    Abstract: Housing market imbalances are a key source of systemic risk and can adversely affect housing affordability. This paper utilizes a stylized model of the Canadian economy that includes policymakers with differing objectives—macroeconomic stability, financial stability, and housing affordability. Not surprisingly, when faced with multiple objectives, deploying more policy instruments can lead to better outcomes. The results show that macroprudential policy can be more effective than policies based on adjusting propertytransfer taxes because property-tax policy entails excessive volatility in tax rates. They also show that if property-transfer taxes are used as a policy instrument, taxes targeted at a broader-set of homebuyers can be more effective than measures targeted at a smaller subset of homebuyers, such as nonresident homebuyers.
    Date: 2018–11–02
  24. By: Panka Bencsik
    Abstract: I apply novel, extremely micro-level datasets to provide new evidence on crime's impact on mental health. I find that each reported violent and sexual crime significantly increases the stress levels of those in the vicinity for three days after the crime was committed. The temporal aspect of the effect is specifically driven by violent and sexual crimes committed two days earlier, a lag which suggests the presence of a mediator of the information--word of mouth or the media. To measure that, I scrape news data and observe significant increases in nationwide stress levels in response to the number of articles published on the topic of crime in the domestic news section of multiple daily newspapers. I measure crime's effect on stress by merging a unique daily response panel dataset that has over 75,000 responses from 2010 to 2017 in the Thames Valley region of England with secure access data containing every reported crime in the same region with exact location, time, and event characteristics. The result that violent and sexual crimes increase stress holds with extensive controls for individual fixed effects, circumstantial characteristics, and spatial fixed effects, including fixed effects for the smallest level of census geography in England that contain only an average of 250 people.
    JEL: I1 K4 H4
    Date: 2018–11–12
  25. By: Steven Glazerman; Ira Nichols-Barrer; Jon Valant; Alyson Burnett
    Abstract: This appendix provides the details of the study that informed the report, “Presenting School Choice Information to Parents: An Evidence-Based Guide.â€
    Keywords: PCI, School Choice, Parents
    JEL: I
  26. By: Battal Doğan; M. Bumin Yenmez
    Abstract: The Chicago Board of Education is implementing a centralized clearinghouse to assign students to schools for 2018-19 admissions. In this clearinghouse, each student can simultaneously be admitted to a selective and a nonselective school. We study this divided enrollment system and show that an alternative unified enrollment system, which elicits the preferences of students over all schools and assigns each student to only one school, is better for students when choice rules of schools are substitutable. Furthermore, we characterize the sources of inefficiency in the divided system.
    Keywords: Market design, school choice, unified enrollment.
    Date: 2018–11–18
  27. By: Solis, Alex (Department of Economics)
    Abstract: Grade retention is a widely used educational policy promoting human capital. However, its benefi ts and costs are still under debate. Retention may a ffect learning, cognitive and psychological capacities, educational attainment and the lifetime income (through the timing of entry to the labor market). This paper estimates the causal eff ects of grade retention on all these outcomes exploiting a retention rule based on the school GPA that enables a regression discontinuity design. I use administrative data from a 15-years panel on the universe of students in the educational system in Chile. The fi ndings are fourfold. First, (marginally) retained students achieve the same amount of education than (marginally) promoted (i.e., high school graduation, higher education enrollment, etc.). Second, they improve their cognitive ability (measured by test scores) in the short and the long run. Third, induces parents to increase parental time investments and expectations. Fourth,enhances student psychological traits, and overall learning experience.
    Keywords: Grade retention; attainment; cognitive achievement; high school graduation; parental investmet; self-esteem; learning.
    JEL: I21 I30 J24
    Date: 2017–03–31
  28. By: Funke, Michael; Tsang, Andrew; Zhu, Linxu
    Abstract: This paper investigates the implementation of regionally differentiated macro-prudential policies in China. To assess the relative intensity of the city-level macro-prudential policies over time, we construct a time-varying city-level macro-prudential policy intensity indicator for 70 Chinese cities from 2010-2017. The empirical evidence shows China’s macro-prudential toolbox has gradually evolved toward city-level policies tailored to granular local conditions to mitigate risks.
    JEL: O18 E52 C38
    Date: 2018–11–14
  29. By: Bell, Brian; Costa, Rui; Machin, Stephen
    Abstract: Prior research shows reduced criminality to be a beneficial consequence of education policies that raise the school leaving age. This paper studies how crime reductions occurred in a sequence of state-level dropout age reforms enacted between 1980 and 2010 in the United States. These reforms changed the shape of crime-age profiles, reflecting both a temporary incapacitation effect and a more sustained, longer run crime reducing effect. In contrast to the previous research looking at earlier US education reforms, crime reduction does not arise solely as a result of education improvements, and so the observed longer run effect is interpreted as dynamic incapacitation. Additional evidence based on longitudinal data combined with an education reform from a different setting in Australia corroborates the finding of dynamic incapacitation underpinning education policy-induced crime reduction.
    Keywords: Compulsory schooling laws; Crime age profiles; School dropout
    JEL: I2 K42
    Date: 2018–09
  30. By: Dale-Olsen, Harald (Institute for Social Research, Oslo)
    Abstract: Do unions promote creative destruction? In this paper we apply a shift-share approach and historical unionisation data from 1918 to study the impact of changes in regional unionisation on regional wage and productivity growth and job creation and destruction during the period 2003-2012. As local regional-industrial unionisation increases, wages grow. Lay-offs through plant closure and shrinking workplaces increase, but entry and new hires are unaffected. Overall, the increased unionisation yields a positive impact on regional productivity, exceeding the wage growth, partly due to the closure of less productive firms, but also enhanced productivity of the survivors and new entrants.
    Keywords: trade unions, entry/exit, creative destruction, wages, productivity, historical data
    JEL: J01 J08 J50 J51
    Date: 2018–10
  31. By: Maria Börjesson
    Abstract: This paper summarises the state of research on the long-term effects of congestion charging in Stockholm and Gothenberg. Sweden’s two largest cities introduced time-of-day dependent, cordon-based congestion charging systems in 2006 and 2013. Public support for congestion charging initially increased following the introduction, but then slightly declined after a revision of the systems. While travel demand in Stockholm has become more price sensitive over time, the reverse happened in Gothenburg. The study examines the reasons behind these findings and discusses policy implications.
    Date: 2018–10–12
  32. By: Jane Choi; Scott Richman; Sarah Dolfin
    Abstract: Teachers who engaged with EL Education’s English Language Arts Curriculum and professional development more often demonstrated Common Core State Standards-aligned instructional practices compared to teachers receiving the curriculum and professional development provided by their districts.
    Keywords: teacher professional development, instructional practices, Common Core State Standards, middle grades teachers, novice teachers, English Language Arts
    JEL: I
  33. By: Cecília Silva; Anders Larsson
    Abstract: Accessibility has become a fashionable concept both in the research and policy arena. There has been a growing interest and attention on accessibility measures and on the potential of accessibility‑based planning as means to invert the growing unsustainability of urban settlement and mobility patterns. Regardless of the potential advantages, current practice has revealed a number of challenges facing accessibility planning and research. This paper presents a reflection on two of these challenges: lack of implementation and conceptual ambiguity of accessibility measures in planning practice. After presenting the main arguments for each challenge, the paper explains how they create risks in the context of sustainable development, namely, by creating biased understandings which prevent authorities and practitioners from shifting away from the traditional “predict and provide” paradigm for transport planning. At the end of each reflection, the paper suggests a research and policy agenda to overcome the challenges supported by the institutionalisation of accessibility planning.
    Date: 2018–08–29
  34. By: Li, Yanan (Beijing Normal University); Kanbur, Ravi (Cornell University); Lin, Carl (Bucknell University)
    Abstract: The theory of fiscal and regulatory competition between jurisdictions is more advanced than its empirical testing. This is particularly true of labor regulation in general, and minimum wage regulation in particular, and especially so for developing countries. This paper utilizes the spatial lag methodology to study city-level strategic interactions in setting and enforcing minimum wage standards during 2004-2012 in China. We manually collect a panel data set of city-level minimum wage standards from China's government websites. This analysis finds strong evidence of spatial interdependence in minimum wage standards and enforcement among main cities in China. If other cities decrease minimum wage standards by 1 RMB, the host city will decrease its standard by about 0.7-3.2 RMB. If the violation rate in other cities increases by 1 percent, the host city will respond by an increase of roughly 0.4-1.0 percentage points. The results are robust to using three estimation methods, Maximum Likelihood, IV/GMM and a dynamic panel data model. Our findings of strategic interactions suggest the need for policy coordination in labor regulation in China.
    Keywords: minimum wage, enforcement, race to the bottom, strategic interactions, China
    JEL: J38
    Date: 2018–10
  35. By: Steven Glazerman; Ira Nichols-Barrer; Jon Valant; Alyson Burnett
    Abstract: Choosing a school for a child can be a rewarding but difficult task for parents. It is important that parents are presented with information that is understandable and user-friendly to help make an informed decision.
    Keywords: school choice process, Every Student Succeeds Act (ESSA), information on state; district; and school performance and progress in an understandable and user-friendly manner
    JEL: I
  36. By: Karolina Tura-Gawron (Gdansk University of Technology); Magdalena Szyszko (WSB University in Poznan)
    Abstract: In this article, we examine the spatial heterogeneities in inflation expectations of the euro area consumers. We expect to find them heterogeneous in our research period of 2001-2016. Contrary to standard examination of heterogeneity, a spatial correlation analysis is applied by referring to global and local correlation measures. It is performed with the economic distance-based weights (the difference in HICP rates). Application of spatial analysis is the main contribution of our examination. Standard examinations ignore spatial relations and might be misleading. Our findings suggest that expectations are heterogeneous once the differences of inflation rates represent economic distance between the countries that we cover by our examination.
    Keywords: inflation expectations, expectations heterogeneity, euro area, spatial analysis
    JEL: E52 E61 C31
    Date: 2018–10
  37. By: Gupta, I.; Veettil, P.C.; Speelman, S.
    Abstract: This paper analyzes the role of informal social networks in technology diffusion in a caste-based society in which a social hierarchical structure is prevalent. Often, information and technology diffusion are constrained by social and economic boundaries. In a complex and hierarchical social system in which caste plays a very decisive role in everyday life as well as in the political and policy fabric of the regional, state, and national system, proper targeting and dissemination of technology to the marginalized sections of society are very important for their development. Taking diffusion of improved rice varieties as an example, we analyze whether technology diffusion is confined within caste-based social networks or whether technology can break caste boundaries and spread across social networks. We found that informal networks tend to concentrate within caste-based groups and hence observed significantly stronger social network within caste than across caste categories. Strong within caste network discourages hybrids but facilitates stabilized technologies such as improved varieties whereas strong across caste networks discourage adoption of older and traditional varieties. It is important to highlight that existence of stronger within as well as across caste networks for scheduled tribes (ST) facilitated these marginalized communities to adopt improved and hybrid varieties. Acknowledgement :
    Keywords: Labor and Human Capital
    Date: 2018–07
  38. By: ANDREOLI Francesco
    Abstract: The neighborhood inequality (NI) index measures aspects of spatial inequality in the distribution of incomes within the city. The NI index is defi ned as a population average of the normalized income gap between each individual's income (observed at a given location in the city) and the incomes of the neighbors, living within a certain distance range from that individual. This paper provides minimum bounds for the NI index standard error and shows that unbiased estimators can be identifi ed under fairly common hypothesis in spatial statistics. These estimators are shown to depend exclusively on the variogram, a measure of spatial dependence in the data. Rich income data are then used to infer about trends of neighborhood inequality in Chicago, IL over the last 35 years. Results from a Monte Carlo study support the relevance of the standard error approximations.
    Keywords: income inequality; individual neighborhood; geostatistics; variogram; census; ACS; ratio measures; variance approximation; Chicago; Monte Carlo
    JEL: C12 C46 D63 R23
    Date: 2018–11
  39. By: Tim Murray
    Abstract: Many retirees retain their housing equity until they die and do not utilize it to help finance spending on consumption. In this paper, I examine how older Americans (age 55+) may use their house as a form of precautionary savings in the event they face an increase in out-of-pocket medical expenses due to a health shock. I find that households are 12-percentage points more likely to own a home in their late retirement years if they might face an unexpected increase in medical bills, indicating that many of such households prefer not to own but choose to knowing they may get sick and face an increase in out-of-pocket medical expenses. Accordingly, I propose an insurance policy that would cover any out-of-pocket medical expenses not covered by Medicaid. When the price of the insurance policy is between 0.15%-0.50% of each householdâs house value, 12.8% of households purchase the insurance policy. In the presence of an insurance policy and health shocks, the homeownership and moving rates look like an economy without health shocks, thus correcting a possible market failure that causes households to use their house as a form of precautionary savings.
    JEL: D14 E13 R21
    Date: 2018–11–13
  40. By: Naomi Clayton; Henry Overman
    Abstract: Local governments in the UK have been writing economic development plans for decades, mostly with limited success. So can the latest drive to boost national productivity through local efforts show that this time is different? Henry Overman and Naomi Clayton have looked at a wide range of evidence to draw up a set of principles for local policy-makers seeking to design an effective industrial strategy.
    Keywords: local, industrial strategy
    Date: 2018–11
  41. By: Mundra, Kusum (Rutgers University); Uwaifo Oyelere, Ruth
    Abstract: There is a growing trend of buying homes among the single population in the U.S. This trend has been referred to as "Going Solo" and is particularly evident among women who are the focus of our study. In this paper we investigate the hypothesis that homeownership probabilities can be affected by marriage market expectations and pessimistic marriage market expectations may raise home buying probabilities among never married singles. We focus solely on the sub population called the never married single females and our results provide evidence consistent with the above hypothesis. In particular, we find that up to a certain threshold, the probability of homeownership decreases when the marriage market prospect indicator improves and there is evidence of heterogeneity in this relationship across race, education level, age group and motherhood status.
    Keywords: home ownership, never married singles, marriage market, sex ratios, marriage rates, single females
    JEL: J1 J12 R21
    Date: 2018–10
  42. By: Schintler, Laurie A.; Fischer, Manfred M.
    Abstract: Big Data on cities and regions bring new opportunities and challenges to data analysts and city planners. On the one side, they hold great promise to combine increasingly detailed data for each citizen with critical infrastructures to plan, govern and manage cities and regions, improve their sustainability, optimize processes and maximize the provision of public and private services. On the other side, the massive sample size and high-dimensionality of Big Data and their geo-temporal character introduce unique computational and statistical challenges. This chapter provides overviews on the salient characteristics of Big Data and how these features impact on paradigm change of data management and analysis, and also on the computing environment.
    Keywords: massive sample size, high-dimensional data, heterogeneity and incompleteness, data storage, scalability, parallel data processing, visualization, statistical methods
    Date: 2018–10–28
  43. By: Javier Quintana González (Bocconi University)
    Abstract: For the last decades, regions in the United States have been diverging. More skill-intensive regions have experienced a higher wage and skill premium growth and have become even more skill-intensive. In this paper, I show that this may be driven in part by trade with China. One of the main findings of this paper is that the consequences on local labor markets of higher income competition are highly heterogeneous. In particular, I focus on how consequences of imports from Chinese manufacturers are different depending on the share of college-educated workforce in the regions. Conditional to be exposed to the same level of import competition, effects in terms of wages and growth of college-educated population growth are especially negative for less educated regions. However, this finding does not mean just an attenuation of negative effects for some educated areas. Instead, I find that import competition has net positive effects among more college-educated regions. Indeed, among more skill-intensive regions, a greater exposure to import competition attracts college-educated workers and increases college-wages and skill premium; whereas it has opposite effect among less skill-intensive regions.
    Keywords: international trade; import competition; regional inequality; college premium; internal migration; skill sorting; factor mobility
    JEL: F14 F16 I24 J24 J31 R12
    Date: 2018–11
  44. By: Floridea di Ciommo
    Abstract: Within the equity in transport framework, this paper provides an overview on the rationale of using the needs-based approach for transport planning assessment. The paper is structured into three parts. First, the presentation of the needs-based approach using the inaccessibility index. Second, the interpretation of the index through the case of Barcelona. The focus will be on how the inaccessibility index allows us to capture relevant information on the satisfied mobility needs of different population groups (particularly for vulnerable groups of the population) through different transport modes. Finally, the potential incorporation into transport planning/assessment frameworks. This section discusses the ways in which the index could be implemented in two different contexts: ex-ante infrastructure evaluation and assessment of a deprived geographic area for transport strategic planning.
    Date: 2018–08–29
  45. By: Karst T. Geurs
    Abstract: This discussion paper overviews the different perspectives and approaches to measuring accessibility, reviews the strengths and weaknesses of different accessibility indicators and describes the use of accessibility indicators in the Dutch policy and planning practice. In choosing accessibility measures, there clearly is a trade-off between theoretical and practical strengths/weaknesses. Dutch transport planners have focused on infrastructure-based accessibility metrics. Only in recent years, increasing attention has been paid to integrated transport, spatial planning and more advanced accessibility measurements. A growing stream of studies explores the concept of accessibility in order to examine equity and distributive justice of transport policies. The choice and operationalisation of accessibility indicators for equity and distributive justice is currently still open for discussion. It requires a more complete understanding of accessibility than traditional indicators offer, and also depends on the theory of justice used.
    Date: 2018–08–29
  46. By: Simone Moriconi (IÉSEG School of Management and LEM); Giovanni Peri (University of California, Davis); Riccardo Turati (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))
    Abstract: In this paper we document the impact of immigration at the regional level on Europeans’ political preferences as expressed by voting behavior in parliamentary or presidential elections between 2007 and 2016. We combine individual data on party voting with a classification of each party’s political agenda on a scale of their "nationalistic" attitudes over 28 elections across 126 parties in 12 countries. To reduce immigrant selection and omitted variable bias, we use immigrant settlements in 2005 and the skill composition of recent immigrant flows as instruments. OLS and IV estimates show that larger inflows of highly educated immigrants were associated with a change in the vote of citizens away from nationalism. However the inflow of less educated immigrants was positively associated with a vote shift towards nationalist positions. These effects were stronger for non-tertiary educated voters and in response to non-European immigrants. We also show that they are consistent with the impact of immigration on individual political preferences, which we estimate using longitudinal data, and on opinions about immigrants. Conversely, immigration did not affect electoral turnout. Simulations based on the estimated coefficients show that immigration policies balancing the number of high-skilled and low-skilled immigrants from outside the EU would be associated with a shift in votes away from nationalist parties in almost all European regions.
    Keywords: Immigration, Nationalism, Elections, Europe
    JEL: D72 I28 J61
    Date: 2018–09
  47. By: Rossi-Hansberg, Esteban; Sarte, Pierre-Daniel; Trachter, Nicholas
    Abstract: Using U.S. NETS data, we present evidence that the positive trend observed in national product-market concentration between 1990 and 2014 becomes a negative trend when we focus on measures of local concentration. We document diverging trends for several geographic definitions of local markets. SIC 8 industries with diverging trends are pervasive across sectors. In these industries, top firms have contributed to the amplification of both trends. When a top firm opens a plant, local concentration declines and remains lower for at least 7 years. Our findings, therefore, reconcile the increasing national role of large firms with falling local concentration, and a likely more competitive local environment.
    JEL: E23 L11 R12
    Date: 2018–09
  48. By: Bai, Y.; Wang, W.; Zhang, L.
    Abstract: Return migration is an important part of rural labor mobility in China, and has been given growing concern recently by governments. However, research covering the duration of stay in their home county, a basic question of labor mobility and a precondition for policy making, is far from enough. The aim of this paper is to analyze the period of return for these migrants based on employment history data among rural laborers. The data was collected from a random, nationally representative sample of 100 rural villages in five provinces of China. We find that 22.3 percent of migrants returned from 1998 to 2015, and most returning migrants stay for a long time. Using the OLS, Tobit, and Heckman two-step methods, the results show that returning migrants who are old, more educated, unmarried, and with school-age children are more likely to stay longer in their home county. From a development perspective, returning migrants are expected to play an important role in the process of rural revitalization. Most importantly, the government should still gradually eliminate institutional limitations facing rural people and promote the free flow of labor resources in the process of realizing the integration of urban and rural areas. Acknowledgement : The authors acknowledge the financial assistance of the National Natural Science Foundation of China (grant number 713300132).
    Keywords: Labor and Human Capital
    Date: 2018–07
  49. By: Bourles, Renaud; Bramoulle, Yann; Perez-Richet, Eduardo
    Abstract: We provide the first analysis of the risk-sharing implications of altruism networks. Agents are embedded in a fixed network and care about each other. We study whether altruistic transfers help smooth consumption and how this depends on the shape of the network. We identify two benchmarks where altruism networks generate efficient insurance: for any shock when the network of perfect altruism is strongly connected and for any small shock when the network of transfers is weakly connected. We show that the extent of informal insurance depends on the average path length of the altruism network and that small shocks are partially insured by endogenous risk-sharing communities. We uncover complex structural effects. Under iid incomes, central agents tend to be better insured, the consumption correlation between two agents is positive and tends to decrease with network distance, and a new link can decrease or increase the consumption variance of indirect neighbors. Overall, we show that altruism in networks has a first-order impact on risk and generates specific patterns of consumption smoothing.
    Keywords: altruism; Informal Insurance; networks; Risk Sharing
    Date: 2018–09
  50. By: Peter Hall
    Abstract: Port container trucking is currently one of the most challenging aspects of the love-hate relationship between ports and cities. This paper highlights important examples of emerging good practices at and around the marine port terminal. Hinterland connectivity and landside productivity are increasingly important for port performance. Yet conflicts over congestion, pollution and other negative impacts of container traffic are an increasing source of tensions. Managing these tensions requires a clear understanding of the issues and identification of the stakeholders involved in the transport system of the immediate port hinterland.
    Date: 2018–09–28
  51. By: Hsieh, Chih-Sheng; König, Michael; Liu, Xiaodong
    Abstract: We introduce a stochastic network formation model where agents choose both actions and links. Neighbors in the network benefit from each other's action levels through local complementarities and there exists a global interaction effect reflecting a strategic substitutability in actions. We provide a complete equilibrium characterization in the form of a Gibbs measure, and show that the model is consistent with empirically observed networks. We then use our equilibrium characterization to show that the model can be conveniently estimated even for large networks. The policy relevance is demonstrated with examples of firm exit, mergers and subsidies in R&D collaboration networks.
    Keywords: key player; mergers and acquisitions; network formation; peer effects; Subsidies; technology spillovers
    JEL: C11 C63 C73 D83 L22
    Date: 2018–09
  52. By: Christian Hilber
    Abstract: Investment in second homes has been surging around the world. Christian Hilber explores the underlying causes of this boom and the political backlash against wealthy investors. His analysis explains how one increasingly popular policy - banning new second home investments in desirable tourist locations - may end up hurting rather than helping local residents. It may even lead to a further rise in wealth inequality.
    Keywords: housing,local residents,second homes
    Date: 2018–11
  53. By: Liepmann, Hannah (HU Berlin); Müller, Dana (Research Data Centre (FDZ) of the Federal Employment Agency (BA) at the Institute for Employment Research (IAB))
    Abstract: Data from German social security notifications and internal procedures of the Federal Employment Agency are an important source for analyzing labor market trajectories. However, for East Germans these data are only fully available from 1992 onwards. As a consequence of German reunification, by 1992 significant fractions of East Germans had already lost their jobs, had changed their occupations and industries, and had moved to West Germany. We partially close the gap in the data by linking the \"Integrated Employment Biographies\" - that start in 1992 for East Germany - with the GDR\'s \"Data Fund of Societal Work Power\" from 1989. The new data set permits the analysis of phenomena such as unemployment, job mobility, and regional mobility. It can also be used to refine the existing knowledge of the individual-level labor market consequences of German reunification. Our long-term goal is to make the new data set available to the research community via the Research Data Center of the Federal Employment Agency.
    Keywords: east germany; german reunification; labor market trajectories; administrative data; record linkage;
    Date: 2018–11–21

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