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on Microeconomic European Issues |
| By: | Monika Riedel (Institute for Advanced Studies (IHS), Vienna); Helmut Hofer |
| Abstract: | This NEUJOBS research report is concerned with determinants for planned retirement from work in European countries, using data from the 2006 ad hoc module of the European Labour Force Survey. The research uses multivariate analysis, taking into account factors that affect retirement planning including personal as well as workrelated characteristics, and some characteristics of national pension systems. In the context of the NEUJOBS project, the key conclusions of the report is that the interaction between planned retirement age and personal and work-related variables is not identical across Europe. Sex as well as country type need to be taken into consideration. Our results hint at EU states being in different phases of the transition from physically demanding to intellectually demanding work environments, which relates to earlier planned retirement where working is physically more demanding. This interpretation, however, is very tentative due to the crude identification of job characteristics via broad ISCO and NACE codes. |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:jku:nrnwps:2013_10&r=eur |
| By: | Craninckx, Katrien; Huyghebaert, Nancy |
| Abstract: | This paper examines the impact of large acquirer shareholders on M&A value effects for 342 European takeovers completed in 1997–2007. Family-controlled firms on average generate more positive M&A value effects than other firms. Market participants thus seem to appreciate the long-term investment horizon typically held by controlling families in European listed firms. Interestingly, we show that this positive family effect is not related to a more efficient monitoring of management, since family owners cannot curb the negative association between managerial hubris and M&A value effects. In addition, the positive family effect disappears in industry-diversifying acquisitions, which implies that family owners in Europe may use corporate diversification to pursue diversification of the family wealth. Large institutional owners can curb managerial hubris, yet acquirers controlled by institutional block holders can never outperform family-controlled acquirers |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ner:leuven:urn:hdl:123456789/388627&r=eur |
| By: | Bernal, Noelia; Vermeulen, Frederic |
| Abstract: | We analyze the impact of an increase in the legal retirement age on the effective retirement age in the Netherlands. We do this by means of a dynamic programming model for the retirement behavior of singles. The model is applied to new administrative data that contain very accurate and detailed information on individual incomes and occupational pension entitlements. Our model is able to capture the main patterns observed in the data. We observe that as individuals get older their labor supply declines considerably and this varies by health status. We simulate a soon to be implemented pension reform which aims at gradually increasing the legal retirement age from 65 to 67. The simulation results show a rather small impact on the effective retirement age. Individuals postpone their retirement by only 3 months on average, while differences across individuals mainly depend on their health status. |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ner:leuven:urn:hdl:123456789/391176&r=eur |
| By: | Gabriel Rissola (Telecentre-Europe); Maria Garrido (The Technology & Social Change Group at the University of Washington Information School) |
| Abstract: | This report presents the results of an online survey that collect relevant data from almost 3,000 organisations working on eInclusion in 27 European countries, which is the first attempt in Europe to collect primary data from those actors. This research constitutes a building block of a larger project ‘Measuring the Impact of eInclusion Actors on Digital Literacy, Skills and Inclusion goals of the Digital Agenda for Europe’ (MIREIA), a policy-oriented research project which aims to better understand the role of these actors across the European Union and to create adequate measurement instruments to provide evidence about how they contribute to the achievement of the Europe 2020 policy goals, from the eInclusion perspective. The findings of the analysis provide policy relevant insights and help shed light on the size of the sector, the types of organisations providing eInclusion services and their capacity (staff, budgets, funding sources and network), the services they provide and the target groups they address. In conclusion, they illustrate the key relevance of these estimated 250,000 actors in EU27 in advancing social and economic inclusion goals of the Europe2020 strategy, and in particular the digital literacy and inclusion goals of the Digital Agenda for Europe. |
| Keywords: | eInclusion, Telecentres, Digital Agenda,Europe 2020 Strategy, Digital Inclusion, Social Inclusion, Social Innovation, Education and Training |
| JEL: | I3 I30 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc84429&r=eur |
| By: | Tobias Vogt (Max Planck Institute for Demographic Research, Rostock, Germany); Fanny A. Kluge (Max Planck Institute for Demographic Research, Rostock, Germany) |
| Abstract: | Background: After the reunification of Germany, mortality among older eastern Germans converged quickly with western German levels. Simultaneously, the pension benefits of eastern Germans rose tenfold. Objective: We make use of German reunification as a natural experiment to show that, first, increasing financial transfers from the elderly to their children led to increasing reverse transfers in the form of care; and, second, this rise in the number of hours spent on care led to a reduction in old-age mortality. Method: As a first step, we calculated intergenerational transfer profiles by age for eastern and western Germany to determine whether any changes in downward and in upward transfers in the form of time and money occurred since reunification. We use generalized linear regression to test whether rising pensions led to an increase in the number of hours spent on care, and whether this increase led to a reduction in old-age mortality. We use different macro level data sources to test our hypothesis, including mortality rates and time use surveys for East and West Germany and information on private intergenerational transfers from the National Transfer Accounts project for Germany. Results: We show that since German reunification, intergenerational downward transfers more than doubled in percentage terms in the east. This was predominantly caused by the sharp increase in pension benefits since the fall of the Berlin Wall. At the same time, mortality among pensioners dropped markedly, and converged to western German levels. We further show that the rise in pension income was strongly correlated with the increase in social support and the decline in mortality among older eastern Germans. Discussion: Our result suggest that there was an interfamilial monetary transfer from the elderly to the young in exchange for social support. This mutual beneficial exchange may have helped to improve the survival of older East Germans after the reunification. |
| Keywords: | Germany, mortality determinants |
| JEL: | J1 Z0 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:dem:wpaper:wp-2013-014&r=eur |
| By: | S. BAERT; F. HEYLEN; D. ISEBAERT |
| Abstract: | This paper examines the impact of housing tenure choice on unemployment duration in Belgium using EU-SILC micro data. We contribute to the literature in distinguishing homeowners with mortgage payments and outright homeowners. We simultaneously estimate unemployment duration by a mixed proportional hazard model, and the probability of being an outright homeowner, a homeowner with mortgage payments or a tenant by a mixed multinomial logit model. To be able to correctly identify the causal influence of different types of housing tenure on unemployment duration, we use instrumental variables. Our results show that homeowners with a mortgage exit unemployment first. Outright owners stay unemployed the longest. Tenants take an intermediate position. Moreover, our results reveal the different share of mortgage holders within the group of homeowners as a possible explanation for the discrepancy between former contributions to this literature. |
| Keywords: | unemployment, housing tenure, duration analysis |
| JEL: | C41 J64 R2 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:13/858&r=eur |
| By: | Stephan Brunow (Institute for Employment Research (IAB); Bastian Stockinger (Otto-Friedrich University of Bamberg) |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:nor:wpaper:2013022&r=eur |
| By: | Emanuele Forlani (Department of Economics and Management, University of Pavia); Elisabetta Lodigiani (Department of Economics, University of Venice Ca' Foscari); Concetta Mendolicchio (Institute for Employment Research, IAB) |
| Abstract: | This paper contributes to the literature on the impact of immigrants on native female labour supply. By segmenting the market by educational levels, we are able to investigate which native-born women are more affected by an increase of low-skilled immigrants working in the household service sector. We present a model of individual choice with home production and, using an harmonized dataset (CNEF), we test its main predictions. Our sample includes countries implementing different family policies. Our results suggest that the share of immigrants working in services in a given local labour market is positively associated with the probability of native-born women to increase their labour supply at the intensive margin (number of hours worked per week), if skilled, and at the extensive margin (participation decision), if unskilled. Moreover, they show that these effects are larger in countries with less family-supportive policies. |
| Keywords: | Female labour participation, international migration, family policy |
| JEL: | J22 J61 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:pav:demwpp:demwp0058&r=eur |
| By: | Bruno, Giovanni S. F. (Bocconi University); Caroleo, Floro Ernesto (University of Naples Parthenope); Dessy, Orietta (Università Cattolica del Sacro Cuore) |
| Abstract: | The Italian process of flexibilization of the labour market has created a dual market populated by protected permanent employees and unprotected temporary workers. The latter comprises not only temporary employment relationships but also autonomous collaborations used by firms as low-cost de facto temporary employment relationships. Little is known about the quality of these temporary jobs, particularly widespread among young workers. We estimate a regression model of perceived overall job satisfaction of young workers, based on the ISFOL-PLUS 2006-2008-2010 panel. We control for the various temporary contracts and for perceived satisfactions in nine aspects of the job. We find that lack of job stability is the most serious cause of lower satisfaction for both temporary employees and autonomous collaborators. But while temporary employees compensate concerns of job stability with other job aspects, attaining satisfaction levels comparable to those of permanent employees, autonomous collaborators do not and are thus significantly the least satisfied. |
| Keywords: | flexicurity, job satisfaction, de facto temporary employment |
| JEL: | J28 J81 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7716&r=eur |
| By: | Heinz, Matthias; Swinnen, Jo |
| Abstract: | We reviewed all articles reporting on job creation and job destruction by companies in Germany between December 2000 and September 2008 in Die Welt, one of the leading German newspapers, using experiments to test our selection criteria. There is a large difference in coverage of job creation and job shedding. Despite the fact that the economic situation in Germany improved over the period (unemployment rate fell by 2.0%), more than ten times as many articles report on negative employment news compared to positive news. When we control for the number of jobs involved, we find an even stronger bias: on a per-job basis, the bias to downsizing increases to a factor greater than 20. Additional tests indicate that these effects are similar in other leading German newspapers. |
| Keywords: | media economics; rational ignorance; negative news coverage; |
| Date: | 2013–02–05 |
| URL: | http://d.repec.org/n?u=RePEc:ner:leuven:urn:hdl:123456789/401923&r=eur |
| By: | Joan Crespo; Raphaël Suire; Jérôme Vicente |
| Abstract: | In a recent literature, the structural properties of knowledge networks have been pointed out as a critical factor for cluster structural changes and long run dynamics. Mixing evolutionary economic geography and network-based approach of clusters, this contribution aims at capturing and discussing the particular influence of hierarchy (degree distribution) and assortativity (degree correlation) in the innovative capabilities of clusters along the industry life cycle. We test our propositions in the field of the mobile phone industry in Europe from 1988 to 2008. We use EPO PATSTAT and OECD REGPAT to capture cluster trends, and R&D relations from European Framework Programs to capture knowledge networks and their evolving structural properties. Our findings provide new insights to understand the organization of clusters over time in order to perform along the industry life cycle. |
| Keywords: | smart specialization, constructing regional advantage, Regional Cohesion Policy |
| JEL: | D85 L63 O33 R11 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1323&r=eur |
| By: | Hogrefe, Jan; Wrona, Jens |
| Abstract: | We offer a theoretical explanation and empirical evidence for a positive link between increased offshoring and individual skill upgrading. Skill upgrading takes the form of on-the-job training, complementing the existing literature, which mainly focuses on the retraining of workers after a direct job displacement through offshoring. To establish a link between offshoring and on-the-job training, we introduce an individual skill upgrading margin into the small-open-economy version of the Grossman and Rossi-Hansberg (2008) model of offshoring. In our model offshoring, by scaling up workers' wages, creates previously unexploited skill upgrading possibilities and, thus, leads to more on-the-job training. Using data from German manufacturing, we find strong empirical support for the prediction that increased offshoring is positively related to individual on-the-job training participation. -- |
| Keywords: | Offshoring,Tasks,Skill upgrading,On-the-job training |
| JEL: | F10 F16 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuewef:64&r=eur |
| By: | Crabbé, Karen |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ner:leuven:urn:hdl:123456789/398229&r=eur |
| By: | John Eakins (School of Economics, University College Cork and Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey.) |
| Abstract: | This paper analyses the factors which influence the level of possession of cars in Irish households using four rounds of the Household Budget Survey, a large micro cross sectional data set of Irish households. Two qualitative choice models, the multinomial logit model and the ordered logit model are applied and their results compared. Based on various measures of fit, the multinomial logit model appears to be the preferred model. The main factors found to influence car possession include location, age, education and marital status of the head of household, use of public transport, the number of workers, number of non-workers and number of children in the household and total household expenditure. These factors are also consistently observed to influence car ownership over time although the effect of socioeconomic factors such as education and marital status appears to be diminishing. The number of workers in the household and total household expenditure are key determinants and mirror changes experienced at the macro level. The estimated income elasticities for these variables show that the number of workers in the household determines the decision to purchase more than one car to a greater extent than total household expenditure and total household expenditure determines the decision to purchase one car to a greater extent than the number of workers in the household. |
| Keywords: | OECD-Europe Motor Vehicle ownership; Household Survey Data; Multinomial Logit Model; Ordered Logit Model; Income Elasticities. |
| JEL: | R41 C35 D12 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:sur:seedps:144&r=eur |
| By: | D. ISEBAERT |
| Abstract: | Housing tenure is a key determinant of geographical mobility. We estimate several probit models to explain the probability that households move, using Belgian longitudinal PSBH and EU-SILC datasets which together cover the period 1994-2009. We confirm the general conclusion in previous literature, that homeowners are, ceteris paribus, less mobile than tenants. Within the first category, having a mortgage further hampers mobility. Earlier results for Belgium did not find a significant difference between outright owners and mortgagees. Furthermore, we make progress on the existing literature by paying particular attention to (and dealing with) methodological issues such as unobserved heterogeneity and state dependence. However, we also obtain some indications that the strict exogeneity assumption may be violated, implying that we cannot exclude the possibility of some bias in our estimated coefficients. |
| Keywords: | Housing tenure, geographical mobility, Belgian households, panel data |
| JEL: | R21 R23 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:13/855&r=eur |
| By: | Bruna Škarica |
| Abstract: | This paper analyses the determinants of the changes in non-performing loans (NPL) ratio in selected European emerging markets. The model was estimated on a panel dataset using fixed effects estimator for seven Central and Eastern European (CEE) countries between Q3:2007 and Q3:2012. The analyzed countries are Bulgaria, Croatia, Czech Republic, Hungary, Latvia, Romania and Slovakia. Although the literature on NPLs is quite extensive, this is the first empirical research on the countries of CEE region using aggregate, country – level data on problem loans. The results suggest that the primary cause of high levels of NPLs is an economic slowdown, which is evident from statistically significant and economically large coefficients on GDP, unemployment and inflation rate. |
| Keywords: | non-performing loans, macro-financial linkages, Central and Eastern Europe, panel regressions, financial stability |
| JEL: | E32 E44 E52 G10 |
| Date: | 2013–11–19 |
| URL: | http://d.repec.org/n?u=RePEc:zag:wpaper:1307&r=eur |
| By: | Felfe, Christina; Lechner, Michael; Thiemann, Petra |
| Abstract: | Does after-school care provision promote mothers’ employment and balance the allocation of paid work among parents of schoolchildren? We address this question by exploiting variation in cantonal (state) regulations of after-school care provision in Switzerland. To establish exogeneity of cantonal regulations with respect to employment opportunities and preferences of the population, we restrict our analysis to confined regions along cantonal borders. Using semi-parametric instrumental variable methods, we find a positive impact of after-school care provision on mothers’ full-time employment, but a negative impact on fathers’ full-time employment. Thus, the supply of after-school care fosters a convergence of parental working hours. |
| Keywords: | Childcare, parents’ labor supply, semi-parametric estimation methods |
| JEL: | J13 J22 C14 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:usg:econwp:2013:34&r=eur |
| By: | Osiel González Dávila; Mavra Stithou; Gianluca Pescaroli; Luca Pietrantoni; Phoebe Koundouri; Pedro Díaz-Simal; Bénédicte Rulleau; Nabil Touli; François Hissel; Edmund Penning-Rowsell |
| Abstract: | Insurance against natural perils such as flooding can be considered a significant element in coastal management. It can offer not only much-needed support to accelerate economic and social recovery following a disaster (coastal resilience) but also contribute to impact limitation by using pricing or restrictions on availability of coverage to discourage new development in hazard-prone areas. Insurance can affect the redistribution of damage costs across the population and through time, both in the short and long term. Policies of damage reduction are linked to mitigation measures for the properties (old or new buildings) by changing the depth-damage relationship while the long-run risk impacts could affect the overall damage function by discouraging new buildings in high risk areas. This paper will provide an overview of the main theoretical perspectives on insurance in flood risk management. Four different European contexts will be analysed. Data are derived from surveys and interviews conducted in France, United Kingdom, Italy and Spain. |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp127&r=eur |
| By: | Picchio, Matteo (Università Politecnica delle Marche, Ancona); Staffolani, Stefano (Marche Polytechnic University) |
| Abstract: | In Italy the reforms of the last twenty years shaped a dual labour market with different levels of employment protection for permanent jobs, on one side, and temporary jobs like apprenticeships and fixed-term contracts, on the other side. The main difference between apprentices and other types of temporary workers is that the former should receive firm-provided training. The firm incentive in hiring apprentices consists in the possibility to pay lower wages and in a reduction in labour taxes. Using an Italian administrative longitudinal dataset containing information on all the job contracts started between January 2009 and June 2012, we estimate hazard functions towards permanent jobs and contrast the ones of apprentices with those of other types of temporary workers. The hazard function estimates based on a regression discontinuity approach affirm that apprenticeships are sorts of "long entrance halls" towards open-ended contracts, especially within the same firm where the apprenticeship was performed. |
| Keywords: | apprenticeship, temporary work, permanent work, regression discontinuity, hazard function |
| JEL: | C36 C41 J24 J41 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7719&r=eur |
| By: | Ohinata, Asako (University of Leicester); van Ours, Jan C. (Tilburg University) |
| Abstract: | We analyze how the share of immigrant children in the classroom affects the educational attainment of native Dutch children in terms of their language and math performance at the end of primary school. Our paper studies the spill-over effects at different parts of the test score distribution of native Dutch students using a quantile regression approach. We find no evidence of negative spillover effects of the classroom presence of immigrant children at the median of the test score distribution. In addition, there is no indication that these spill-over effects are present at other parts of the distribution. |
| Keywords: | immigrant children, peer effects, educational attainment |
| JEL: | I21 J15 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7720&r=eur |