nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2021‒10‒04
fifty-one papers chosen by
Steve Ross
University of Connecticut

  1. Do School Shootings Erode Property Values? By Juan S. Munoz-Morales; Ruchi Singh
  2. Parents can tell! Evidence on classroom quality differences in German primary schools By Araujo P., Maria Daniela; Quis, Johanna Sophie
  3. Explainer: Do taxes on property cause high house prices? No. By Murray, Cameron
  4. The tradeoffs of brokerage in innovation networks: a study of Latin American cities By Carlos Bianchi; Pablo Galaso; Sergio Palomeque
  5. Measuring Police Presence in US Cities using Smartphone Data By M. Keith Chen; Katherine L. Christensen; Elicia John; Emily Owens; Yilin Zhuo
  6. An assessment of pupil and school performance in public primary education in Uruguay By Paola Azar; Gabriela Sicilia
  7. Inequality of Opportunity in Access to Secondary Education in 19th Century By Pau Insa-Sánchez
  8. How Do Parents Evaluate and Select Schools? Evidence From a Survey Experiment By Shira Haderlein
  9. Why Does Education Increase Voting? Evidence from Boston’s Charter Schools By Sarah Cohodes; James J. Feigenbaum
  10. The Causal Effect of Transport Infrastructure: Evidence from a New Historical Database By Lindgren, Erik; Pettersson-Lidbom, Per; Tyrefors, Björn
  11. COVID Response: The Municipal Liquidity Facility By Andrew F. Haughwout; Benjamin Hyman; Or Shachar
  12. Measuring the Impact of Urban Innovation Districts By Fatime Barbara Hegyi; Manran Zhu; Milan Janosov
  13. Sea Level Rise and Home Prices: Evidence from Long Island By Justin Tyndall
  14. Combining knowledge bases for system innovation in regions: Insights from an East German case study By Friedrich, Christoph; Feser, Daniel
  15. Longing for Which Home: Evidence from Global Aspirations to Stay, Return or Migrate Onwards By Els Bekaert; Amelie F. Constant; Killian Foubert; Ilse Ruyssen
  16. On the Slope of the Beveridge Curve in the Housing Market By Miroslav Gabrovski; Victor Ortego-Marti
  17. Behind the Italian Regional Divide: An Economic Fitness and Complexity Perspective By Angelica Sbardella; Andrea Zaccaria; Luciano Pietronero; Pasquale Scaramozzino
  18. Land as airspace: How rezoning privatizes public space (and why governments should not give it away for free) By Murray, Cameron; Gordon, Josh
  19. Low Demand for Reverse Mortgages in Canada: Price, Knowledge or Preferences? By Ismaël Choinière Crèvecoeur; Pierre-Carl Michaud
  20. The role of powerful incumbent firms: shaping regional industrial path development through change and maintenance agency By Simon Baumgartinger-Seiringer
  21. The Key Class in Networks By Nizar Allouch; Jayeeta Bhattacharya
  22. Comparing Institutional Textures between Germany and Italy with LAU level data By Nadia von Jacobi
  23. Effect of the Jamaica Early Childhood Stimulation Intervention on Labor Market Outcomes at Age 31 By Paul Gertler; James J. Heckman; Rodrigo Pinto; Susan M. Chang; Sally Grantham-McGregor; Christel Vermeersch; Susan Walker; Amika Wright
  24. Who Suffers the Greatest Loss? Costs of Job Displacement for Migrants and Natives By Illing, Hannah; Koch, Theresa
  25. Post-Compulsory Schooling of Youth in Turkey during the Great Recession: A Case of Pro-cyclical Enrollment By Murat Demirci; Meltem Poyraz
  26. Failing Shopping Malls Can Be a Powerful Tool for Addressing California’s Affordable Housing Shortage By Blanco, Hilda
  27. Admission groups and academic performance: A study of marginal entrants in the selection to higher education By Karlsson, Linn; Wikström, Magnus
  28. Pricing and Hedging Prepayment Risk in a Mortgage Portfolio By Emanuele Casamassima; Lech A. Grzelak; Frank A. Mulder; Cornelis W. Oosterlee
  29. Activity and Transportation Decisions within Households. By André de Palma; Nathalie Picard; Robin Lindsey
  30. Effects of internal rural-urban migration on rural non-farm enterprises: Evidence from Thailand and Vietnam By Grabrucker, Katharina
  31. start2park - determining, explaining and predicting cruising for parking By Hagen, Tobias; Saki, Siavash; Scheel-Kopeinig, Sabine
  32. Can repeated surveys reveal the variation of the value of travel time over time? By Börjesson, Maria; Kouwenhoven, Marco; de Jong , Gerard; Daly , Andrew
  33. Gender differences in admission scores and first-year university achievement By Karlsson, Linn; Wikström, Magnus
  34. The struggle of small firms to retain high-skill workers: Job duration and importance of knowledge intensity By Hugo Castro-Silva; Francisco Lima
  35. Urban Air Mobility: Opportunities and Obstacles By Shaheen, Susan; Cohen, Adam
  36. Unstable diffusion in social networks By Teruyoshi Kobayashi; Yoshitaka Ogisu; Tomokatsu Onaga
  37. A dynamic theory of spatial externalities By Boucekkine, R.; Fabbri, G.; Federico, S.; Gozzi, F.
  38. Bank Mergers, Acquirer Choice and Small Business Lending: Implications for Community Investment By Bernadette A. Minton; Alvaro G. Taboada; Rohan Williamson
  39. The geography of banks in the United States (1990-2020) By Angeloni, Ignazio; Kasinger, Johannes; Chantawit Tantasith
  40. Resource sharing on endogenous networks By Philip Solimine; Luke Boosey
  41. De-escalation technology : the impact of body-worn cameras on citizen-police interactions By Barbosa, Daniel AC; Fetzer, Thiemo; Soto, Caterina; Souza, Pedro CL
  42. Intergenerational educational mobility – the role of non-cognitive skills By Anna Adamecz-Volgyi; Morag Henderson; Nikki Shure
  43. Regional technological capabilities and Green opportunities in Europe By Nicolo Barbieri; Davide Consoli; Lorenzo Napolitano; Francois Perruchas; Emanuele Pugliese; Angelica Sbardella
  44. Pedestrian Deaths and Large Vehicles By Justin Tyndall
  45. Indigenous-Municipal Legal and Governance Relationships By Doug Anderson; Alexandra Flynn
  46. Education Enrollment Rate vs Employment Rate: Implications for Sustainable Human Capital Development in Nigeria By Adejumo, Oluwabunmi; Asongu, Simplice; Adejumo, Akintoye
  47. Lockdown length and strength: labour-market effects in Germany during the COVID-19 pandemic By Bauer, Anja; Weber, Enzo
  48. Internal labor markets. A worker flow approach By Ingrid Huitfeldt; Andreas R. Kostøl; Jan Nimczik; Andrea Weber
  49. Can recidivism be prevented from behind bars? Evidence from a behavioral program By William Arbour
  50. Peer Monitoring vs. Search Costs in the Interbank Market: Evidence from Payment Flow Data in Norway By Jon H. Findreng
  51. Gender differences in re-contesting decisions: New evidence from French municipal elections By Julieta Peveri; Marc Sangnier

  1. By: Juan S. Munoz-Morales (IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Économie Management, F-59000 Lille, France); Ruchi Singh (University of Georgia)
    Abstract: This paper exploits the exogenous timing of mass shootings in schools to estimate the causal effects of school shootings on housing values and sheds light on the underlying mechanism. Using a difference-in-differences strategy, we find that house prices within a school district decline by seven percent after a school shooting, with stronger effects among houses with more bedrooms (proxy for school-age children in household). We also find evidence of a decrease in school enrollment and the number of teachers after the shooting. This suggests that decreased demand for schools within the affected school districts explains the drop in property prices.
    Keywords: Mass shooting, house prices, schooling amenities, crime
    JEL: I21 R21
    Date: 2021–09
  2. By: Araujo P., Maria Daniela; Quis, Johanna Sophie
    Abstract: The value-added to student achievement model has become a key tool for estimating the effects of individual teachers and their classrooms on students' short-term academic success, and more importantly, on later-life outcomes. We use primary school data from the German National Educational Panel Study (NEPS) to estimate classroom effects on mathematical and language competence development, which are driven by teacher quality differences across classrooms. We estimate a value-added model with individual classroom fixed-, as well as random effects. Both model specifications apply empirical Bayes shrinkage to adjust the classroom effects' estimates by their level of precision. Our results show substantial classroom effects and quality differences across the first grades of German primary school. One standard deviation increase in classroom effectiveness is associated with at least a 12 percent of a standard deviation increase in student mathematical competence scores, and at least 14 percent of a standard deviation increase in language competence scores. In addition, we find that none of the teacher characteristics typically used in teacher recruitment processes significantly explain the classroom quality differences. Interestingly, as parental assessment of teacher quality is the only indicator significantly associated with classroom effectiveness in language competence development, parents seem to be able to identify more effective language teachers.
    Keywords: classroom effects,teacher effects,teacher value-added,Germany
    JEL: I20 J45
    Date: 2021
  3. By: Murray, Cameron (The University of Sydney)
    Abstract: Housing industry lobbyists in Australia and abroad often claim that property-related taxes comprise a large and growing share of the price of new housing and are hence pushing up the market price of new and existing dwellings. Land taxes, stamp duties on property transactions, GST on value-added investments, and other fees and charges are generally included in this analysis, as are many inferred price effects that are assumed to be due to regulations. This note explains four reasons why the claims of this tax summation approach are not valid. 1. Many of the included costs are not taxes on new housing. 2. Adding indirect taxes double counts. 3. Assumed price effects are implausible. 4. Taxes on property assets reduce market prices, not add to them.
    Date: 2021–09–22
  4. By: Carlos Bianchi (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Pablo Galaso (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Sergio Palomeque (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)
    Abstract: Brokers play a critical role in the evolution of innovation systems. However, accessing and diffusing knowledge into the system imply costs and requires capacities. Using patent data to analyze inter-city networks in Latin America, we revisit the debate on the benefits and costs of knowledge networks. We identify broker cities, differentiating between intra-regional and extra-regional connections, and we estimate the effects of brokerage on patenting outcomes between 2006 and 2017. Our findings reveal that cities holding a central position in the network show higher patenting activity; however, being broker, particularly bridging Latin America with extra-regional cities, negatively influences patenting outcomes.
    Keywords: inter-city networks, patents, brokerage, innovation systems, Latin America.
    JEL: O31 O54 P48
    Date: 2021–09
  5. By: M. Keith Chen; Katherine L. Christensen; Elicia John; Emily Owens; Yilin Zhuo
    Abstract: While extensive, research on policing in America has focused on documented actions such as stops and arrests -- less is known about patrolling and presence. We map the movements of over ten thousand police officers across twenty-three of America's largest cities by combining anonymized smartphone data with station and precinct boundaries. Police spend considerably more time in Black neighborhoods, a disparity which persists after controlling for density, socioeconomics, and crime-driven demand for policing. Our results suggest that roughly half of observed racial disparities in arrests derive from disparities in exposure, and that supervisor (but not officer) diversity reduces this.
    Date: 2021–09
  6. By: Paola Azar (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Gabriela Sicilia (Universidad de la Laguna (España). Departamento de Economía, Contabilidad y Finanzas.)
    Abstract: This paper discusses the potential improvements in pupil’s academic results at public primary schools in Uruguay. Using student level data from the first national assessment of educational achievements, we decompose education attainments into pupil’s own effort and school value added following a multilevel metafrontier approach originally introduced by Silva-Portela and Thannassoulis (2002). We find that on average, pupils miss 19.2% of their potential achievement, mainly driven by their own under-performance. The extent of output students cannot obtain because of school effects is mainly explained by suboptimal resource availability at the school level rather than schools’ own managerial ability. The shortfall in the school’s contribution to efficiency affects those students in the least advantaged socioeconomic contexts and those with lower test scores.
    Keywords: educational performance, multilevel metafrontier approach, primary education
    JEL: C61 H52 I21
    Date: 2021–09
  7. By: Pau Insa-Sánchez (Department of Economic Analysis (Area of Economic History and Institutions), Universitat de València, Spain)
    Abstract: This paper explores access to secondary education in 19th-century Spain. To do so, secondary education graduation age is proposed as an effective way of measuring the implicit cost of acquiring education in historical contexts such as this one. Using a novel historical source on the Spanish high school network for academic year 1877-1878, I find that students from small, isolated municipalities bore increasingly larger costs than those from urban areas. Specifically, the size of the municipality of origin exerts a larger negative effect on those students bearing more costs to study. Such results suggest that a phenomenon of spatial isolation from knowledge, as well as a small and concentrated secondary education school network, created a problem of access to education and, thus, prevented an adequate transition to secondary mass schooling in the 19th century.
    Keywords: Secondary education, Spain, 19th century
    JEL: I25 N33 N93
    Date: 2021–09
  8. By: Shira Haderlein
    Abstract: This article presents evidence from an online survey experiment exploring how parents evaluate and select schools. Results suggest that achievement matters most to parents and that student demographics affect both parents’ perception of school quality and their likelihood of selecting into a school.
    Keywords: experimental survey methods, parent preferences, school choice
  9. By: Sarah Cohodes; James J. Feigenbaum
    Abstract: In the United States, people with more education vote more. But, we know little about why education increases political participation or whether higher-quality education increases civic participation. We study applicants to Boston charter schools, using school lotteries to estimate charter attendance impacts for academic and voting outcomes. First, we confirm large academic gains for students in the sample of charter schools and cohorts investigated here. Second, we find that charter attendance boosts voter participation. Voting in the first presidential election after a student turns 18 increased substantially, by six percentage points from a base of 35 percent. The voting effect is driven entirely by girls and there is no increase in voter registration. Rich data and the differential effects by gender enable exploration of multiple potential channels for the voting impact. We find evidence consistent with two mechanisms: charter schools increase voting by increasing students’ noncognitive skills and by politicizing families who participate in charter school education.
    JEL: D72 H75 I21
    Date: 2021–09
  10. By: Lindgren, Erik (Department of Economics, Stockholm University); Pettersson-Lidbom, Per (Department of Economics, Stockholm University); Tyrefors, Björn (Research Institute of Industrial Economics (IFN))
    Abstract: In this paper, we analyze the effect of transport infrastructure investments in railways. As a testing ground, we use data from a new historical database that includes annual panel data on approximately 2,400 Swedish rural geographical areas during the period 1860-1917. We use a staggered event study design that is robust to treatment effect heterogeneity. Importantly, we find extremely large reduced-form effects of having access to railways. For real nonagricultural income, the cumulative treatment effect is approximately 130% after 30 years. Equally important, we also show that our reduced-form effect is likely to reflect growth rather than a reorganization of existing economic activity since we find no spillover effects between treated and untreated regions. Specifically, our results are consistent with the big push hypothesis, which argues that simultaneous /coordinated investment, such as large infrastructure investment in railways, can generate economic growth if there are strong aggregate demand externalities (e.g., Murphy et al. 1989). We used plant-level data to further corroborate this mechanism. Indeed, we find that investments in local railways dramatically, and independent of initial conditions, increase local industrial production and employment on the order of 100‒300% across almost all industrial sectors.
    Keywords: Railways; Transport infrastructure; Real income; Event study; Treatment heterogeneity
    JEL: H54 L92 N73 O22 R12 R42
    Date: 2021–09–22
  11. By: Andrew F. Haughwout; Benjamin Hyman; Or Shachar
    Abstract: At the onset of the COVID-19 pandemic, state and local governments were among the sectors expected to experience the most severe distress. The combination of a sharply deteriorating revenue picture, a pressing need for additional expenditures, delays in the receipt of substantial taxes owed, and an inability to access the financial markets raised serious concerns among many observers about the ability of state and local governments to meet their public service delivery responsibilities. In April 2020, the Federal Reserve announced the establishment of the Municipal Liquidity Facility (MLF) to help municipalities manage the cash flow challenges that the pandemic produced. The MLF ultimately offered three-year loans at penalty rates to a set of eligible municipal issuers that included states, large cities and counties, and a number of revenue bond issuers. Research suggests that the MLF, in spite of lending to only the State of Illinois and the Metropolitan Transportation Authority, contributed to a healing in the municipal securities market as a whole. Effects on real economic outcomes like employment in the sector are harder to attribute to facility.
    Keywords: municipal debt; state and local governments; COVID-19; Federal Reserve lending facilities
    JEL: G14 G18 H74
    Date: 2021–09–01
  12. By: Fatime Barbara Hegyi (European Commission - JRC); Manran Zhu (Central European University); Milan Janosov (Datapolis)
    Abstract: Despite their significant impact on social and economic development, innovation districts are facing challenges due to inadequacy of policies in terms of horizontal and vertical coordination or due to the lack of integrative policy approach. Strategic and targeted policy support leads to the acceleration of the growth of innovation districts, impacting the development of cities in general. To reach the potential of innovation districts in benefiting their local communities and in enabling greater collaboration, in creating jobs, and in promoting regional competitiveness, it is important to facilitate the positive externalities created by innovation districts through targeted policies. Hence the publication proposes a generic and algorithmic methodology to identify and measure the success of innovation districts. To achieve this, different sets of large-scale geospatial data have been combined with well-established machine learning methods and in-depth statistical analysis. As a result, a quantitative methodology is presented that can support the policy-making process in the identification of urban areas with a high concentration of innovation activities and with high potential for growth. First, this methodology allows the identification of such areas. Second, an evaluation framework is proposed that captures the success of these areas based on their economic performance. Third, these results are combined with descriptive statistical features to understand the main differentiators between successful and unsuccessful areas. This exploratory research aims at providing a set of methods and findings that heavily build on recent advances on using large-scale datasets and data science to understand social problems, and in particular, the key driving indicators of deprivation and success of various entities, such as urban areas with high concentration of innovation activities.
    Keywords: innovation districts, cities, urban development, data science
    Date: 2021–09
  13. By: Justin Tyndall (University of Hawai‘i at Manoa Department of Economics, University of Hawai‘i Economic Research Organization)
    Abstract: Global sea level rise is a known consequence of climate change. As predictions of sea level rise have grown in magnitude and certainty, coastal real estate assets face an increasing climate risk. I use a complete data set of repeated home sales from Long Island in New York State to estimate the appreciation discount caused by the threat of sea level rise. The repeat sale methodology allows for time-invariant, unobserved property characteristics to be controlled for. Between 2000 and 2017, I find that residential properties that were exposed to future sea level rise experienced an annual price appreciation rate of roughly one percentage point below unexposed properties. I provide numerous robustness checks to con rm this result. I also find evidence of demand spillovers by estimating an appreciation premium for properties that are near the coast but are relatively safe from sea level rise.
    Keywords: Transportation; Safety; Health; Traffic Fatalities; Externalities
    JEL: G10 R30 Q54
    Date: 2021–03
  14. By: Friedrich, Christoph; Feser, Daniel
    Abstract: A growing number of economic geography scholars have discussed the spatial dimensions of sustainability innovation in socio-technical systems to overcome societal, economic, and ecological problems. This research usually focuses on businesses in the knowledge economy and success factors. However, sustainability innovation involves the collaboration of upstreaming process stages and open innovation processes with a broad range of different actors. Innovation intermediaries, such as universities and research institutes, are needed to support and accelerate the transfer of knowledge. Nevertheless, little is known about the influence of the cognitive and institutional diversity of actors on the configuration of knowledge bases required for sustainability innovation. This article presents insights from 16 semi-structured expert interviews conducted in a regional innovation system (RIS) in East Germany. We investigate four innovation intermediaries in the region of Eberswalde in cooperation with the Eberswalde University for Sustainable Development. The analytical framework links the concept of differentiated knowledge bases to sustainability transitions and sustainability-oriented knowledge transfer. Our results show that, first, in the Eberswalde region, the relevant actors involved in regional knowledge transfer predominantly focus on synthetic knowledge bases, such as experience-based knowledge of local area settings. Second, symbolic knowledge bases are crucial and often prerequisites for intermediary organizations to recombine knowledge bases and support the capability to innovate in regional knowledge transfer. Symbolic knowledge contains, in particular, the ability to translate scientific findings to a language that can be understood by the various actors in knowledge transfer. Third, organizational innovation complements social innovation to support innovation on a systemic level and foster change processes.
    Keywords: Knowledge bases,system innovation,knowledge transfer,innovation intermediation,sustainability transition
    JEL: D02 D80 O12 P48 Q56 R11
    Date: 2021
  15. By: Els Bekaert; Amelie F. Constant; Killian Foubert; Ilse Ruyssen (-)
    Abstract: Aspirations provide the underlying dynamics of the behavior of individuals whether they are realized or not. Knowledge about the characteristics and motives of those who aspire to leave the host country is key for both host and home countries to formulate appropriate and effective policies in order to keep their valued immigrants or citizens and foster their (re-)integration. Based on unique individual-level Gallup World Polls data, we model the aspirations or stated preferences to return or migrate onwards of immigrants across 138 countries worldwide. Our analysis reveals selection in characteristics, a strong role for soft factors like social ties and sociocultural integration, and a faint role for economic factors. Changes in circumstances in the home and host countries are also important determinants of aspirations. Results differ by the host countries’ level of economic development.
    Keywords: Return migration, Onwards migration, Migration aspirations, International migration
    JEL: J15 J61 J68 D01 F22 C55
    Date: 2021–09
  16. By: Miroslav Gabrovski (University of Hawaii at Manoa); Victor Ortego-Marti (University of California Riverside)
    Abstract: The co-movement of buyers and vacancies, i.e. the Beveridge Curve, is a key determinant of the cyclical properties of the housing market. It determines the sign of the correlation between prices and key measures of liquidity such as vacancies (i.e. houses for sale), sales, and time-to-sell. As recent work has shown, to account for the core stylized facts of the housing market, search and matching models must be consistent with a positively correlated co-movement of buyers and vacancies---the Beveridge Curve must be upward-sloping. This paper provides evidence that buyers and vacancies are indeed positively correlated along the housing cycle, i.e. the Beveridge Curve on the housing market is upward sloping. Using data on vacancies and time-to-sell, we construct a series for buyers and estimate the slope of the Beveridge Curve. This approach requires only one minimal structural assumption: the existence of a matching function. The regression results confirm the positive relationship between buyers and vacancies over the business cycle. In addition, we provide an estimate of the elasticity of vacancies with respect to buyers. A one percent increase in vacancies is associated with around a two percent increase in buyers, confirming recent findings that buyers are more volatile than houses for sale. We hope this estimate will help future researchers in this area.
    Keywords: Housing market; Search and matching; Beveridge Curve; Housing liquidity
    JEL: E2 E32 R21 R31
    Date: 2021–09
  17. By: Angelica Sbardella; Andrea Zaccaria; Luciano Pietronero; Pasquale Scaramozzino
    Abstract: This paper applies the Economic Fitness and Complexity approach to analyse the underlying factors behind the wide and persistent economic disparities across the Italian regional units. Measures of regional fitness are obtained from their revealed comparative advantage and from their patent performance. Southern regions tend to be characterised by a lower level of complexity than the regions in the Centre-North of the country. We interpret these results as indicating a lower level of capability endowment in the South. The system-wide approach of the paper is able to identify some critical sectors which display a rich pattern of connections with other sectors and which could play a pivotal role to create additional capabilities and foster a more balanced regional development.
    Keywords: Italian regional divide; Economic Fitness and Complexity; Productive and technological capabilities.
    Date: 2021–09–22
  18. By: Murray, Cameron (The University of Sydney); Gordon, Josh
    Abstract: A popular but contested view is that mass rezoning is an essential policy measure to address housing affordability. Often obscured in debates about this measure is that rezoning involves the privatization of public space. We clarify the nature of the policy by recognizing that property rights over land are, conceptually, a bundle of socially negotiated rights to parcels of airspace. This view shows that rezoning to provide rights to airspace for existing landowners is not costless. It involves transferring valuable property rights from the public to existing private landowners for free, creating a more unequal distribution of property rights ownership without necessarily generating faster housing development. We argue that giving away public rights to airspace should not be done for free and explore what policy measures retain value from residential rezoning for the public.
    Date: 2021–09–24
  19. By: Ismaël Choinière Crèvecoeur; Pierre-Carl Michaud
    Abstract: High borrowing costs, limited knowledge and preferences could explain why few Canadians purchase reverse mortgages, an asset decumulation product that is appealing to those who are house-rich but cash-poor. In this paper, we first use an asset pricing model to calculate the actuarial fair costs of guarantees built into reverse mortgage products in Canada and compare those estimates to prevailing interest rates in the market for these products. We also investigate whether Canadians understand reverse mortgages and whether low demand originates on the preference side by conducting a stated-preference experiment with 3000 Canadians. We manipulate characteristics of reverse mortgages, including the interest rate, to tease out how sensitive Canadians are to these characteristics. Our results suggest that observed interest rates are high relative to actuarially fair rates and that consumers are somewhat price sensitive in addition to demonstrating little knowledge of these products and low demand overall.
    Keywords: reverse mortgages, savings, retirement planning, insurance.
    JEL: G21 R21
    Date: 2021
  20. By: Simon Baumgartinger-Seiringer
    Abstract: This article seeks to advance perspectives on powerful incumbent firms in (new) regional industrial path development. Drawing on recent insights from Transition Studies, it is argued that this – hitherto often neglected – actor group plays a crucial role in shaping the pace and direction of regional path development through agency oriented towards both change and maintenance. Building on systemic perspectives at the intersection of evolutionary economic geography and innovation studies, particular emphasis is placed on incumbent firms’ interventions to reconfigure or stabilize their surrounding regional innovation system to support their intentions. To this end, this article examines how incumbents exert their influence through various forms of power as means by which they promote or hinder regional industrial change. Empirically, the role of incumbent firms in a traditional automotive industry in Austria is investigated. It is shown how they leverage their power to propel the industry’s digitalization and suppress its decarbonization.
    Keywords: regional restructuring, path development, incumbents, agency, automotive industry, power
    JEL: O33 R11 R58
    Date: 2021
  21. By: Nizar Allouch; Jayeeta Bhattacharya
    Abstract: This paper proposes new centrality measures to characterise the `key class', when agents in a network are sorted into role-equivalent classes, such that its removal results in an optimal change in the network activity. The notion of role-equivalence is defined through the graph-theoretical concept of equitable partition of networks, which finds wide empirical and theoretical applicability. Players in the network engage in a non-cooperative game with local payoff complementarities. We establish a link between the generic network and its partitioned or quotient graph, and use it to relate the Nash equilibrium activity of classes with their position within the partitioned network. The result informs two class-based centrality measures that geometrically characterise the key class for an optimal reduction (or increase) in the aggregate and the per-capita network activity, respectively.
    Keywords: Social and economic networks; network games; equitable partition; centrality measures
    JEL: C72 D85
    Date: 2021–08
  22. By: Nadia von Jacobi
    Abstract: In view of comparing the institutional textures of Germany and Italy (Boltho et al., 2017), I go beyond existing comparable datasets at NUTS2 and NUTS3 level and construct two datasets at the LAU level, which for Germany captures the "Gemeinde" and for Italy the "Municipio". In this paper I briefly present the variables that were identified as comparable across the two countries. The resulting LAUDEIT dataset has been prepared for future empirical investigations of the particularities of institutional architecture (Gertler, 2010) that may contribute to different socio-economic performance within common European governance (Boitani and Tamborini, 2021; Johnston and Reagan, 2017). Descriptive statistics of the dataset hint there may be structural differences between the two countries in terms of commuting and internal migration patterns, size of the firm and - in a related fashion - entrepreneurship rate. Municipal data also confirm that Germany presents higher income per capita, and that Italy is affected by dualism in both, employment rates and income per capita. In terms of institutional differences I find that despite similar tax rates, German municipalities withhold a much greater share of income taxes collected than their Italian counterparts. The latter rely heavily on property taxes, which despite being collected mainly on second homes represent a crucial influx of revenues for Italian municipalities.
    Keywords: dataset, municipality, Germany, Italy, institutions, regional economics
    JEL: P52 O52 O57 O43 Y1
    Date: 2021
  23. By: Paul Gertler; James J. Heckman; Rodrigo Pinto; Susan M. Chang; Sally Grantham-McGregor; Christel Vermeersch; Susan Walker; Amika Wright
    Abstract: We report the labor market effects of the Jamaica Early Childhood Stimulation intervention at age 31. The study is a small-sample randomized early childhood education stimulation intervention targeting stunted children living in the poor neighborhoods of Kingston, Jamaica. Implemented in 1987-1989, treatment consisted of a two-year home-based intervention designed to improve nutrition and the quality of mother-child interactions to foster cognitive, language and psycho-social skills. The original sample is 127 stunted children between 9 and 24 months old. Our study is able to track and interview 75% of the original sample 30 years after the intervention, both still living in Jamaica and migrated abroad. We find large and statistically significant effects on income and schooling; the treatment group had 43% higher hourly wages and 37% higher earnings than the control group. This is a substantial increase over the treatment effect estimated for age 22 where we observed a 25% increase in earnings. The Jamaican Study is a rare case of a long-term follow up for an early childhood development (ECD) intervention implemented in a less-developed country. Our results confirm large economic returns to an early childhood intervention that targeted disadvantaged families living in poverty in the poor neighborhoods of Jamaica. The Jamaican intervention is being replicated around the world. Our analysis provides justification for expanding ECD interventions targeting disadvantaged children living in poor countries around the world.
    JEL: C31 I21 J13
    Date: 2021–09
  24. By: Illing, Hannah (Institute for Employment Research (IAB), Nuremberg, Germany); Koch, Theresa (Institute for Employment Research (IAB), Nuremberg, Germany)
    Abstract: "We are the first to provide empirical evidence on differences in the individual costs of job loss for migrants compared to natives in Germany. Using linked employer-employee data for the period 1996-2017, we compute each displaced worker’s earnings, wage, and employment loss after a mass layoff in comparison to a matched, nondisplaced, control worker. We find that migrants face substantially higher earnings losses than natives due to both higher wage and employment losses. Differences in individual characteristics and differential sorting across industries and occupations can fully explain the gap in wage losses but not the employment gap after displacement. Laid-off migrants are both less likely to become reemployed and work fewer days than laid-off natives. In terms of channels, we show that i) migrants sort into worse establishments and ii) migrants’ slightly lower geographic mobility across federal states may explain part of their lower re-employment success; iii) our results suggest that competition from other migrants, rather than natives, negatively contributes to migrants’ costs of job loss." (Author's abstract, IAB-Doku) ((en))
    Keywords: Bundesrepublik Deutschland ; Auswirkungen ; berufliche Reintegration ; Einkommensentwicklung ; IAB-Betriebs-Historik-Panel ; Inländer ; Integrierte Erwerbsbiografien ; Lohn ; Migranten ; Arbeitslose ; Arbeitslosigkeitsbewältigung ; Ungleichheit ; Arbeitsmarktchancen ; Arbeitsplatzverlust ; 1996-2017
    JEL: J20 J61 J63 J64 J65
    Date: 2021–05–04
  25. By: Murat Demirci (Department of Economics, Koç University); Meltem Poyraz (Department of Economics, Boğaziçi University)
    Abstract: The impact of recessions on school enrollment is ambiguous. On one hand, recessions might increase the likelihood of enrollment due to decreasing opportunity costs of attending school. On the other hand, recessions might discourage enrollment due to reductions households have in funds available for education and deteriorating expectations about returns to education. In this paper, we empirically analyze how local unemployment rates affect enrollment decisions in Turkey during the period covering the Great Recession of 2008-2009. Our estimates show that the likelihood of enrollment in university undergraduate programs decreases during periods of and in regions experiencing higher unemployment, whereas the enrollment in high schools is not affected. This finding contradicts earlier findings of counter-cyclical enrollment in the context of developed countries. This contrast highlights the variations in the relative importance of the effect of income and expectations and in the potential long-term effects of recessions across countries. In particular, recessions might have longer-lasting negative effects in developing countries due to their adverse effect on human capital accumulation.
    Keywords: The Great Recession, School enrollment, Human capital accumulation, Unemployment, Turkey.
    JEL: E24 E32 I20 J24
    Date: 2021–09
  26. By: Blanco, Hilda
    Abstract: Declining sales and anchor store bankruptcies have led to a nationwide trend of shopping malls failing. This trend has accelerated during the COVID-19 pandemic, and market analysts estimate that several hundred malls are at risk of failing in the next five years. As malls close, the sites present tremendous redevelopment opportunities. While redevelopment plans may include new retail or other commercial options, housing is desperately needed in California— the state has an estimated shortage of 2.5– 3.5 million units—and former mall sites may offer a natural solution to the state’s housing woes. Redevelopment planning has already begun for some sites. Researchers at the University of Southern California looked at case studies of ten distressed malls in California’s metropolitan areas to assess their potential for mixed-use development, including housing. The case studies included malls with and without current redevelopment plans, and illustrate issues that could hinder or facilitate such redevelopments. The researchers also developed sustainability criteria by which to measure the benefits and costs of redevelopment. This policy brief summarizes the findings from that research and provides policy implications. View the NCST Project Webpage
    Keywords: Business, Social and Behavioral Sciences, Case studies, Housing, Land use, Redevelopment, Shopping centers, Sustainable development, Transit oriented development
    Date: 2021–09–01
  27. By: Karlsson, Linn (Department of Economics, Umeå University); Wikström, Magnus (Department of Economics, Umeå University)
    Abstract: The purpose of this paper is to study whether Swedish admission policies are successful in selecting the best-performing students. The Swedish universities select students based on two different instruments, which each form a separate admission group. A regression model is recommended to estimate the achievement differences for the marginally accepted students between the admission groups and is applied to a sample of 9,024 Swedish university entrants in four different fields of education. Marginally accepted students in the group selected by school grades on average perform better than students accepted by an admission test, suggesting that a small reallocation of study positions towards the grade admission group may increase overall academic achievement. However, the achievement difference appears to vary concerning university programme selectivity. We found that increasing selection by grades in less competitive programmes would improve overall achievement, while increasing selection by grades in highly selective programmes would not increase achievement.
    Keywords: Higher education; selection; admission groups; marginal admit; achievement
    JEL: I21 I23 I28
    Date: 2021–09–24
  28. By: Emanuele Casamassima; Lech A. Grzelak; Frank A. Mulder; Cornelis W. Oosterlee
    Abstract: Understanding mortgage prepayment is crucial for any financial institution providing mortgages, and it is important for hedging the risk resulting from such unexpected cash flows. Here, in the setting of a Dutch mortgage provider, we propose to include non-linear financial instruments in the hedge portfolio when dealing with mortgages with the option to prepay part of the notional early. Based on the assumption that there is a correlation between prepayment and the interest rates in the market, a model is proposed which is based on a specific refinancing incentive. The linear and non-linear risks are addressed by a set of tradeable instruments in a static hedge strategy. We will show that a stochastic model for the notional of a mortgage unveils non-linear risk embedded in a prepayment option. Based on a calibration of the refinancing incentive on a data set of more than thirty million observations, a functional form of the prepayments is defined, which accurately reflects the borrowers' behaviour. We compare this functional form with a fully rational model, where the option to prepay is assumed to be exercised rationally.
    Date: 2021–09
  29. By: André de Palma; Nathalie Picard; Robin Lindsey
    Abstract: Households are often responsible for labour supply, time allocation, transportation and many other decisions. Yet, research in both economics and transportation was traditionally dominated by so-called unitary models that treat households as single decision-making units with a representative individual. This began to change with the development, in the field of Economics of the Family, of non-unitary models that recognize differences in household members preferences, and attempt to describe the joint decision making processes within households. Application of non-unitary models took off in the transportation literature with the special issues on modelling intra-household interactions edited by Bhat and Pendyala, 2005 [24] and Timmermans and Zhang, 2009 [113]. This chapter reviews the development of integrated models of household activity and transportation from the perspective of the Economics of the Family. These models have been applied to long-run decisions such as residential and workplace location and vehicle ownership, as well as short-run decisions including activity schedules, transport mode, and departure time. Non-unitary models go well beyond conventional discrete choice models by accounting for individual family members preferences, and within-family decisionmaking processes. The models feature new concepts specific to within-family interactions, including repeated interaction, bargaining, altruism, and Pareto optimality.
    Keywords: Economics of the family, Unitary models, Collective models, Couple decision making, Mobility, Residential location, Discrete choice models.
    JEL: H31 P25 R41
    Date: 2021
  30. By: Grabrucker, Katharina
    Abstract: Migration is a phenomenon of increasing global relevance as year by year a growing number of individuals is leaving their home driven by the pursuit to improve the well-being of their households through additional income. While the drivers of international migration and its effect on the left-behind households have been well researched, less focus has been put on the effects of internal, rural-urban migration (and its concomitant remittances). This paper analyses the net effects of remittances from internal, rural-urban migrants on selfemployment and on investments of the left-behind households by using a rich household level panel data set from Thailand and Vietnam. The findings indicate that individuals from households receiving remittances from internal, rural-urban migrants are less likely to be self-employed - both in Thailand and Vietnam. The channels through which remittances affect the labor supply of the receiving households cannot be determined with certainty, yet one of the potential reasons might be that left-behind household members need to compensate for the lost labor of the migrant who was previously engaged in farm activities. Moreover, the results show for some specifications lower investments of migrant households into farm and non-farm assets, while the expenditure on consumption is higher compared to households without migrants. This might be an indication that non-farm activities are less important for rural left-behind households, while remittances might be directly used to increase the consumption level - which might have been low before the migration.
    Keywords: Internal migration,Remittances,Rural non-farm enterprises,Thailand,Vietnam
    JEL: D22 F24 O15 Q12 R23
    Date: 2021
  31. By: Hagen, Tobias; Saki, Siavash; Scheel-Kopeinig, Sabine
    Abstract: The research project 'start2park' closes a research gap by precisely measuring parking search duration (cruising for parking) - especially the starting point of search - using a mobile app developed for this purpose. Complete journeys' location data and durations are recorded, including driving until the start of the parking search, the parking search process, and the footpath from the parking spot to the final destination. Therefore, the causal effects of parking search on driving duration as well as journey duration can be estimated. Cruising for parking is traffic that results from car drivers looking for (free) kerb parking that meets their expectations (for example, free of charge or close to their destination point) and drivers being not (fully) informed about available kerb space parking locations. Parking search traffic causes external costs. Therefore, traffic-planning options should be designed to reduce unnecessary parking search traffic. However, this requires reliable data on urban cruising for parking traffic. Previous empirical results on the share of cruising traffic in total traffic, average parking search durations and average parking search distances differ widely. We show that the causal effect of parking search on driving duration and journey duration has not yet been validly estimated in empirical studies, and we explain how this is done in the research project.
    Date: 2021
  32. By: Börjesson, Maria (Swedish National Road & Transport Research Institute (VTI)); Kouwenhoven, Marco (Significance, Den Haag, Netherlands); de Jong , Gerard (Significance, Den Haag, Netherlands); Daly , Andrew (ITS Leeds)
    Abstract: This paper studies intertemporal changes in the value of travel time (VTT) and investigates whether the change of VTT over time can be studied based on national VTT data, collected at two points in time. We use repeated national VTT data from the Netherlands and Sweden, collected 13 and 14 years apart. The results show mostly a declining VTT for a given income level. The results show also a large within-country heterogeneity across modes and purposes, in the cross-sectional income elasticity of the VTT, and in its development over time. The explanation most consistent with our results and those of others is that the VTT has in fact increased due to income increases, but that the repeated stated choice data cannot detect this given the data, methodology and population changes. In particular, it seems that the response rate has dropped considerably in the later surveys partly due to a higher share of (busy) respondents declining to be recruited. The main contribution of this paper is to document the differences between the studies carried out in different years, indicating the reasons why it is difficult to identify temporal changes in the VTT.
    Keywords: Value of time; Stated preference; Income elasticity; Cost-benefit analysis; Repeated studies; Data collection
    JEL: D61 H54 R41 R48
    Date: 2021–09–23
  33. By: Karlsson, Linn (Department of Economics, Umeå University); Wikström, Magnus (Department of Economics, Umeå University)
    Abstract: This study explores female underprediction in first-year university achievement by using data from 8,971 Swedish university entrants in the fall semester of 2012. The Swedish admissions system selects students by two instruments: upper secondary school GPA or scores from a scholastic aptitude test (SweSAT). Nearest-neighbour matching allows us to compare students with similar admission scores and estimate achievement differences between male and female students. The results show that admission scores underpredict achievement for women relative to men in both admissions groups and more so for the SweSAT. As we condition on field of education, achievement differences tend to vary over fields and tend to become smaller, indicating that part of the differences is related to the male-female composition of students in the different fields.
    Keywords: Swedish admissions test; grade point average; gender; female underprediction; higher education
    JEL: I21 I23 I24
    Date: 2021–09–24
  34. By: Hugo Castro-Silva (Universidade de Lisboa); Francisco Lima (Universidade de Lisboa)
    Abstract: In the knowledge economy, skilled workers play an important role in innovation and economic growth. However, small firms may not be able to keep these workers. We study how the knowledge-skill complementarity relates to job duration in small and large firms, using a Portuguese linked employer-employee data set. We select workers displaced by firm closure and estimate a discrete-time hazard model with unobserved heterogeneity on the subsequent job relationship. To account for the initial sorting of displaced workers to firms, we introduce weights in the model according to the individual propensity of employment in a small firm. Our results show a lower premium on skills in terms of job duration for small firms. Furthermore, we find evidence of a strong knowledge-skill complementarity in large firms, where the accumulation of firm-specific human capital also plays a more important role in determining the hazard of job separation. For small firms, the complementarity does not translate into longer job duration, even for those with pay policies above the market. Overall, small knowledge-intensive firms struggle to retain high skill workers and find it harder to leverage the knowledge-skill complementarity.
    Keywords: knowledge intensity, technology, firm size, small firms, job duration, skills
    JEL: A1
    Date: 2021
  35. By: Shaheen, Susan; Cohen, Adam
    Abstract: Urban Air Mobility (UAM, also known as advanced air mobility) is an emerging concept that envisions a safe, sustainable, affordable, and accessible air transportation system for emergency management, cargo delivery, and passenger mobility within or traversing a metropolitan area. While numerous societal concerns have been raised about these approaches (e.g., privacy, safety, security, social equity), on-demand aviation has the potential to provide options for emergency services, goods delivery, and passenger mobility in urban and rural areas using small piloted and autonomous aircraft. This chapter provides a short overview of developments in on-demand aviation and a discussion of the potential impacts and challenges of UAM on communities. Potential challenges include safety, financial, and community acceptance, among others. Research that seeks to understand the potential societal barriers can help to identify challenges and mitigate potential UAM concerns. Research on the potential impacts of UAM, coupled with thoughtful planning and implementation, are needed to balance commercial interests, technology innovation, and the public good.
    Keywords: Social and Behavioral Sciences
    Date: 2021–01–01
  36. By: Teruyoshi Kobayashi; Yoshitaka Ogisu; Tomokatsu Onaga
    Abstract: How and to what extent will new activities spread through social ties? Here, we develop a more sophisticated framework than the standard mean-field approach to describe the diffusion dynamics of multiple activities on complex networks. We show that the diffusion of multiple activities follows a saddle path and can be highly unstable. In particular, when the two activities are sufficiently substitutable, either of them would dominate the other by chance even if they are equally attractive ex ante. When such symmetry-breaking occurs, any average-based approach cannot correctly calculate the Nash equilibrium - the steady state of an actual diffusion process.
    Date: 2021–09
  37. By: Boucekkine, R.; Fabbri, G.; Federico, S.; Gozzi, F.
    Abstract: This work targets the class of spatiotemporal problems with free riding under natural (pollution, epidemics...etc) diffusion and spatial externalities. Such a class brings to study a family of differential games in continuous time and space. In the fundamental pollution free riding problem we develop a strategy to solve completely the associated game contributing to the associated debate on environmental federalism. We depart from the preexisting literature in several respects. First, instead of assuming ad hoc pollution diffusion schemes across space, we consider a realistic spatiotemporal law of motion for pollution (diffusion and advection). Second, we tackle spatiotemporal non-cooperative (and cooperative) differential games instead of static games in the related literature. Precisely, we consider a circle partitioned into several states where a local authority decides autonomously about its investment, production and depollution strategies over time knowing that investment/production generates pollution, and pollution is transboundary. The time horizon is innite. Third, we allow for a rich set of geographic heterogeneities across states while the literature assumes identical states. We solve analytically the induced non-cooperative differential game under decentralization and fully characterize the resulting long-term spatial distributions. In particular, we prove that there exist a Perfect Markov Equilibrium, unique among the class of the affine feedbacks. We further provide with full exploration of the free riding problem, reected in the so-called border effects. Finally, we explore how geographic discrepancies (the most elementary being the asymmetry of players) affect the shape of the border effects. We check in particular that our model is consistent with the set of stylized facts put forward by the related empirical literature.
    JEL: Q53 R12 O13 C72 C61 O44
    Date: 2021
  38. By: Bernadette A. Minton; Alvaro G. Taboada; Rohan Williamson
    Abstract: We examine the effects of bank merger and local market characteristics on local small business lending. Mergers involving small, in-state acquirers are positively associated with small business loan (SBL) originations in counties where target banks are located. Conversely, mergers involving large, out-of-state acquirers are associated with fewer SBL originations. The analysis suggests that the results are driven by acquirer’s choice of target. Small and in-state acquirers target banks that focus more on SBL and targets with strong relationships while large, out-of-state acquirers pursue better performing banks with stronger balance sheets and less focus on SBL. Results are particularly strong in counties with a large number of small firms. Post-merger activity supports banks expanding on their acquisition strategy decisions. The findings suggest that acquirer strategy is important for evaluating the impact of acquisitions on local community development and that one-size-fits-all policy solutions for bank mergers may not produce common local outcomes.
    JEL: G21 G34 O1
    Date: 2021–09
  39. By: Angeloni, Ignazio; Kasinger, Johannes; Chantawit Tantasith
    Abstract: We present new statistical indicators of the structure and performance of US banks from 1990 to today, geographically disaggregated at the level of individual counties. The constructed data set (20 indicators for some 3150 counties over 31 years, for a total of about 2 million data points) conveys a detailed picture of how the geography of US banking has evolved in the last three decades. We consider the data as a stepping stone to understand the role banks and banking policies may have played in mitigating, or exacerbating, the rise of poverty and inequality in certain US regions.
    Date: 2021
  40. By: Philip Solimine; Luke Boosey
    Abstract: In this paper, we examine behavior in a voluntary resource sharing game that incorporates endogenous network formation; an incentive problem that is increasingly common in contemporary digital economies. Using a laboratory experimental implementation of repeated play in this information-rich decision setting, we examine the effects of a simple reputation feedback system on patterns of linking and contribution decisions. Reduced-form estimates find significant effects of the information treatment on a number of key outcomes such as efficiency, complementarity, and decentralization. To further understand the driving causes of these observed changes in behavior, we develop and estimate a discrete-choice framework, using computationally efficient panel methods to identify the structure of social preferences in this setting. We find that the information treatment focuses reciprocity, and helps players coordinate to reach more efficient outcomes.
    Date: 2021–09
  41. By: Barbosa, Daniel AC (PUC-Rio, Brazil); Fetzer, Thiemo (University of Warwick); Soto, Caterina (London School of Economics); Souza, Pedro CL (Queen Mary University)
    Abstract: We provide experimental evidence that monitoring of the police activity through body-worn cameras reduces use-of-force, handcuffs and arrests, and enhances criminal reporting. Stronger treatment effects occur on events classified ex-ante of low seriousness. Monitoring effects are moderated by officer rank, which is consistent with a career concern motive by junior officers. Overall, results show that the use of body-worn cameras de-escalates conflicts.
    Keywords: police citizen interaction ; use-of-force ; technology ; field experiment JEL Classification: C93 ; D73 ; D74
    Date: 2021
  42. By: Anna Adamecz-Volgyi (UCL Social Research Institute, University College London, 27 Woburn Square, London WC1H 0AA and Institute of Economics, Centre for Economic and Regional Studies (KRTK KTI), Toth Kalman u. 4, 1097 Budapest); Morag Henderson (UCL Social Research Institute, University College London, 27 Woburn Square, London WC1H 0AA); Nikki Shure (UCL Social Research Institute, University College London, 27 Woburn Square, London WC1H 0AA and Institute of Labor Economics (IZA), Schaumburg-Lippe-Str. 5-9, D-53113 Bonn)
    Abstract: While it has been shown that university attendance is strongly predicted by parental education, we know very little about why some potential ‘first in family’ or first-generation students make it to university and others do not. This paper looks at the role of non-cognitive skills in the university participation of this disadvantaged group in England. We find that conditional on national, high-stakes exam scores and various measures of socioeconomic background, having higher levels of non-cognitive skills, specifically locus of control, academic self-concept, work ethic, and self-esteem, in adolescence is positively related to intergenerational educational mobility to university. Our results indicate that having higher non-cognitive skills helps potential first in family university students to compensate for their relative disadvantage, and they are especially crucial for boys. The most important channel of this relationship seems to be through educational attainment at the end of compulsory schooling
    Keywords: socioeconomic gaps, intergenerational educational mobility, higher education, non-cognitive skills
    JEL: I24 J24
    Date: 2021–09–01
  43. By: Nicolo Barbieri; Davide Consoli; Lorenzo Napolitano; Francois Perruchas; Emanuele Pugliese; Angelica Sbardella
    Abstract: The goal of the paper is to elaborate an empirical overview of green technological development in European regions. This is a timely pursuit considering the ambitious commitments stipulated in the recent European Green Deal to achieve climate neutrality by 2050. Our analysis is organised in three steps. First, we map the geographical distribution of innovative activities in Europe and profile regions in terms of technological capabilities. Second, we elaborate a metric to identify regions' green innovation potential. Third, we check whether possessing comparative advantage in specific technological domains is associated with a region's capacity to develop green technologies.
    Keywords: Green Technology; European regions; Economic Fitness and Complexity.
    Date: 2021–09–22
  44. By: Justin Tyndall (University of Hawai‘i at Manoa Department of Economics, University of Hawai‘i Economic Research Organization)
    Abstract: Traffic fatalities in the US have been rising among pedestrians even as they fall among motorists. Contemporaneously, the US has undergone a significant shift in consumer preferences for motor vehicles, with larger Sport Utility Vehicles comprising an increased market share. Larger vehicles may pose a risk to pedestrians, increasing the severity of collisions. I use data covering all fatal vehicle collisions in the US and exploit heterogeneity in changing vehicle fleets across metros for identification. Between 2000 and 2018, I estimate that replacing the growth in Sport Utility Vehicles with cars would have averted 1,100 pedestrian deaths. I finnd no evidence that the shift towards larger vehicles improved aggregate motorist safety.
    Keywords: Transportation; Safety; Health; Traffic Fatalities; Externalities
    JEL: I1 R41 R42 R48
    Date: 2021–09
  45. By: Doug Anderson; Alexandra Flynn (University of Toronto)
    Abstract: This paper describes evolving Canadian municipal relationships with Indigenous Peoples and explores how such relationships may benefit from becoming more deeply reciprocal. The ways in which municipal governments conduct relationships with Indigenous Peoples can include meaningful consultation with First Nations and Indigenous Peoples on matters that affect them; having Indigenous representation on governing bodies; and entering into protocols and agreements with First Nations on lands bordering municipal boundaries and with Indigenous Peoples living in cities. In this paper we focus mainly on Canada’s largest cities. Although close to half of all Indigenous Peoples live in urban areas, cities have fewer legal obligations under Canadian law in respect of Indigenous Peoples than any other order of government. Like all Canadian orders of government, municipal authorities remain largely unaware of distinct Indigenous laws and perspectives. Canada’s Constitution Act limits municipalities to the exercise of authorities granted by provinces. Canadian law views provincial and federal governments as the Crown, while considerable uncertainty remains about the role of municipalities in IndigenousCrown relationships. We consider whether and how municipal governments are making meaningful changes to modify their governance models and forge reciprocal, respectful relationships with Indigenous Peoples and communities, in relation to distinct Indigenous ways of framing human responsibilities and rights.
    Keywords: Indigenous-municipal relations, Canada, municipal governance, duty to consult
    JEL: H77 H79
    Date: 2021–09
  46. By: Adejumo, Oluwabunmi; Asongu, Simplice; Adejumo, Akintoye
    Abstract: The study examines the dynamic interrelationships among the school enrolment rates and the rate of employment (via unemployment rates) in Nigeria. The study employed Autoregressive estimates and an unrestricted VAR approach to analyze these relationships. The study lends credence to the new-growth theory (i.e. endogenous models) that more investments in human capital, through education especially at higher levels, will allow human capital to evolve dynamically and increase long-run growth in Nigeria. This tendency engenders multiplier effects in stimulating sustainable development given that education-driven growth facilitates employment. The growth literature has been definitive on the role of human capital in achieving long-run economic growth. Therefore, investments in education have been identified as a vital channel for building human capital and achieving long run development objectives. Thus, in the nascent quest for sustainable development, this study takes the new growth theory a step higher by examining the modulating effects of educational-driven growth (i.e. via school enrolments rates) in setting the pace for employment patterns in Nigeria.
    Keywords: Education, Employment, Human Capital, Enrolment, Development
    JEL: I21 I31 O40 O55
    Date: 2021–01
  47. By: Bauer, Anja (Institute for Employment Research (IAB), Nuremberg, Germany); Weber, Enzo (Institute for Employment Research (IAB), Nuremberg, Germany)
    Abstract: "This paper evaluates the short-term labour market impact of the COVID-19 containment measures in Germany. It examines two dimensions of the first lockdown in Germany, namely the length and the strength of the lockdown. While the assessment of the length is conducted via variation across regions and time in closing days and curfews, the latter uses the degree of closure in different sectors. For the length of the lockdown we find that an additional day of closure lead to an increase in the separation rate of 2.7 percent and a decrease in the jobfinding rate of 1.8 percent. For the strength of the lockdown the results show that a higher degree of closure increases separations and lower job findings to a similar extent. In both dimensions, we find that the effects are non-linear over time. Given this approach, we find that 31 percent of the considerably increased inflows from employment into unemployment, and 33 percent of the reduced outflows from unemployment to employment in the first wave were due to the treatment effect of the lockdown measures. In sum, the lockdown measures increased unemployment in the short run by 80,000 persons." (Author's abstract, IAB-Doku) ((en))
    Keywords: Bundesrepublik Deutschland ; Pandemie ; Auswirkungen ; Beschäftigungseffekte ; Betriebsunterbrechung ; Dauer ; Entlassungen ; Arbeitslosigkeitsentwicklung ; Kurzarbeit ; Personaleinstellung ; Arbeitsausfall ; 2020-2020
    JEL: E24 J6
    Date: 2021–07–28
  48. By: Ingrid Huitfeldt (Statistics Norway); Andreas R. Kostøl; Jan Nimczik; Andrea Weber
    Abstract: This paper develops a new method to study how workers’ career and wage profiles are shaped by internal labor markets (ILM) and job hierarchies in firms. Our paper tackles the conceptual challenge of organizing jobs within firms into hierarchy levels by proposing a data-driven ranking method based on ob-served worker flows between occupations within firms. We apply our method to linked employer-employee data from Norway that records fine-grained occupational codes and tracks contract changes within firms. Our findings confirm existing evidence that is primarily based on case studies for single firms. We expand on this by documenting substantial heterogeneity in the structure and hierarchy of ILMs across a broad range of large firms. Our findings on wage and promotion dynamics in ILMs are consistent with models of careers in organizations
    Keywords: Internal Labor Markets; Organization of Labor; Wage Setting
    JEL: J31 J62 M5
    Date: 2021–08
  49. By: William Arbour (University of Toronto)
    Abstract: Incarcerated offenders are offered a wide range of programs to encourage their chances of successful reintegration into society. Little is known, however, about the degree to which such programs improve prisoners’ reentry. In this paper, I study the effects of a cognitive-behavioral program implemented in Quebec, Canada, with a rich micro-level dataset. To manage the econometric issue of inmates’ self-selection into the program, I exploit inmates’ random assignment to probation officers who exhibit varying propensities to recommend the rehabilitation measure. I find large, negative, and significant effects of the program on recidivism, as measured by an inmate’s probability of serving a subsequent sentence: within one year following release, the program reduces recidivism by up to 18 percentage points. Moreover, the program is shown to decrease the number of future offenses. Further analyses indicate that the most plausible mechanism can be attributed to the program’s success in altering offenders’ preferences towards crime.
    Keywords: program, incarceration, recidivism, cognitive-behavioral, judges fixed effects
    JEL: A1
    Date: 2021
  50. By: Jon H. Findreng
    Abstract: Bilateral payment flows between banks may provide private information about a borrowing bank’s liquidity position. This paper analyses whether private information on the bilateral payment flow of central bank reserves foster peer monitoring or whether the information is used to reduce search costs in the unsecured interbank market. In the former, banks with outflows of liquidity are penalized by their counterparties, while in the latter, these banks benefit through reduced search costs to find a liquidity provider. I use data from Norges Bank’s real time gross settlement system over the period 2012 to 2015 to identify unsecured overnight interbank loans and payment flows. The results suggest that banks are using private information from payment flows to reduce search costs and not for peer monitoring. This has important implications for regulators’ assessment of the pros and cons of a centralized versus a decentralized interbank market.
    Keywords: peer monitoring, search cost, unsecured overnight interbank market, interest rates, central bank liquidity policy, OTC markets
    JEL: G21 E42 E43 E58
    Date: 2021–05–29
  51. By: Julieta Peveri (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique); Marc Sangnier (UNamur - Université de Namur [Namur], AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper studies differences across genders in the re-contesting decisions of politicians following electoral wins or defeats. Using close races in mixed-gender French local elections, we show that women are less likely to persist in competition when they lose compared to male runners-up, but are equally or more prone than male winners to re-contest when they win. Differences in observable characteristics or in the expected electoral returns of running again cannot fully account for these gender gaps in persistence. In contrast, the heterogeneity of the results across political ideology, age, experience and occupation suggests that behavioural explanations are at play. Additionally, we provide evidence that a woman's victory encourages former female challengers to re-contest but does not trigger the entry of new female candidates.
    Keywords: Gender,Competition,Persistence,Candidates,Self-selection,Elections
    Date: 2021–09

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