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on Microeconomic European Issues |
| By: | Andrew E. Clark (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales (EHESS) - École des Ponts ParisTech (ENPC) - École normale supérieure [ENS] - Paris - Institut national de la recherche agronomique (INRA)); Conchita D'ambrosio (Université du Luxembourg - Université du Luxembourg); Simone Ghislandi (Università commerciale Luigi Bocconi - Università commerciale Luigi Bocconi) |
| Abstract: | We consider the link between poverty and subjective well-being, and focus in particular on potential adaptation to poverty. We use panel data on almost 45,800 individuals living in Germany from 1992 to 2011 to show first that life satisfaction falls with both the incidence and intensity of contemporaneous poverty. We then reveal that there is little evidence of adaptation within a poverty spell: poverty starts bad and stays bad in terms of subjective well-being. We cannot identify any causes of poverty entry which are unambiguously associated with adaptation to poverty. |
| Keywords: | Income ; Poverty ; Subjective well-being ; SOEP |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-00925542&r=eur |
| By: | Andrea Morescalchi (IMT Lucca Institute for Advanced Studies); Fabio Pammolli (IMT Lucca Institute for Advanced Studies); Orion Penner (IMT Lucca Institute for Advanced Studies); Alexander M. Petersen (IMT Lucca Institute for Advanced Studies); Massimo Riccaboni (IMT Lucca Institute for Advanced Studies) |
| Abstract: | Recent studies on the geography of knowledge networks have documented a negative impact of physical distance and institutional borders upon research and development (R&D) collaborations. Though it is widely recognized that geographic constraints and national borders impede the diffusion of knowledge, less attention has been devoted to the temporal evolution of these constraints. In this study we use data on patents filed with the European Patent Office (EPO) for OECD countries to analyze the impact of physical distance and country borders on inter-regional links in four different networks over the period 1988-2009: (1) co-inventorship, (2) patent citations, (3) inventor mobility and (4) the location of R&D laboratories. We find the constraint imposed by country borders and distance decreased until mid-1990s then started to grow, particularly for distance. We further investigate the role of large innovation "hubs" as attractors of new collaboration opportunities and the impact of region size and locality on the evolution of cross-border patenting activities. The intensity of European cross-country inventor collaborations increased at a higher pace than their non-European counterparts until 2004, with no significant relative progress thereafter. Moreover, when analyzing networks of geographical mobility, multinational R&D activities and patent citations we cannot detect any substantial progress in European research integration above and beyond the common global trend. |
| Keywords: | Geography of knowledge, Networks of Innovators, European integration, Spatial proximity, Cross-border collaboration, Gravity model |
| JEL: | O31 O38 R12 R23 D89 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:ial:wpaper:1/2014&r=eur |
| By: | Hawranek, Franziska; Schanne, Norbert (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]) |
| Abstract: | "This paper analyzes job referral effects that are based on residential location. We use georeferenced record data for the entire working population (liable to social security) and the corresponding establishments in the Rhine-Ruhr metropolitan area, which is Germany's largest (and EU's second largest) metropolitan area. We estimate the propensity of two persons to work at the same place when residing in the same neighborhood (reported with an accuracy of 500m×500m grid cells), and compare the effect to people living in adjacent neighborhoods. We find a significant increase in the probability of working together when living in the same neighborhood, which is stable across various specifications. We differentiate these referral effects for socioeconomic groups and find especially strong effects for migrant groups from former guestworker countries and new EU countries. Further, we are able to investigate a number of issues in order to deepen the insight on actual job referrals: distinguishing between the effects on working in the same neighborhood and working in the same establishment - probably the more accurate measure for job referrals - shows that the latter yield overall smaller effects. Further, we find that clusters in employment although having a significant positive effect play only a minor role for the magnitude of the referral effect. When we exclude short distance commuters, we find the same probabilities of working together, which reinforces our interpretation of this probability as a network effect." (Author's abstract, IAB-Doku) ((en)) |
| Keywords: | Arbeitsvermittlung, informelle Kommunikation, soziales Netzwerk - Auswirkungen, soziale Umwelt, Beschäftigungseffekte, Arbeitsort, Wohnort, Inländer, Einwanderer, ausländische Arbeitnehmer, Arbeitsplatzwahl, peer group, Integrierte Erwerbsbiografien, Rhein-Region, Ruhrgebiet, Nordrhein-Westfalen, Bundesrepublik Deutschland |
| JEL: | J20 R23 |
| Date: | 2014–01–09 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabdpa:201401&r=eur |
| By: | Enkelejda Havari (Department of Economics, University Of Venice Cà Foscari); Marco Savegnago (Bank of Italy and University of Rome Tor Vergata) |
| Abstract: | This paper estimates the causal effect of parental education on children’s education in 13 European countries, using representative data from the Survey of Health, Ageing and Retirement in Europe (SHARE). A novel instrumental variable approach is used to solve the endogeneity issue. We combine two instruments: parental birth order (indicator for being a first born) and Compulsory Schooling Laws (CSL). While CSL have been widely used in applied work, our contribution is to introduce parental birth order as instrument in the intergenerational mobility literature. We find that parental education has a positive, large and significant causal effect on children’s education. This finding is robust to the instrument chosen (birth order, CSL, or both), to sample selection and to several robustness checks. |
| Keywords: | intergenerational transmission, causality, birth order, education, Europe |
| JEL: | J01 J6 I2 I24 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:2013:30&r=eur |
| By: | Evers, Lisa; Miller, Helen; Spengel, Christoph |
| Abstract: | 11 European countries now operate IP Box regimes that provide substantially reduced rates of corporate tax for income derived from important forms of intellectual property. We incorporate these policies into forward-looking measures of the cost of capital, effective marginal tax rates and effective average tax rates. We show that the treatment of expenses relating to IP income is particularly important in determining the effective tax burden. A key finding is that regimes that allow expenses to be deducted at the ordinary corporate income tax rate, as opposed to the IP Box tax rate, may result in negative effective average tax rates and can thereby provide a subsidy to unprofitable projects. We assess the specific design features of different regimes against the possible policy aim of improving the incentives to undertake R&D investment in a country. While some countries have tried to tie the policy to real activities, others have designed a policy targeted at the income streams associated with intellectual property. A key concern is the role that IP Boxes may play in increased, and possibly harmful, tax competition between European countries. -- |
| Keywords: | corporate taxation,effective tax rate,tax incentive,patent box,innovation box,preferential tax rate |
| JEL: | H25 H32 H87 K34 O38 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:13070r&r=eur |
| By: | Egebark, Johan (Research Institute of Industrial Economics (IFN)); Kaunitz, Niklas (Department of Economics, Stockholm University) |
| Abstract: | In 2007, the Swedish employer-paid payroll tax was cut on a large scale for young workers, substantially reducing labor costs for this group. Using Difference-in-Differences paired with exact matching, we estimate a small impact, both on employment and on wages, implying a labor demand elasticity for young workers at around –0.31. Since the tax reduction applied also to existing employments, the cost of the reform was sizable, and the estimated cost per created job is at more than four times that of directly hiring workers at the average wage. Hence, we conclude that payroll tax cuts are an inefficient way to boost employment for young individuals. |
| Keywords: | Youth unemployment; Payroll tax; Tax subsidy; Labor costs; Exact matching |
| JEL: | H25 H32 J23 J38 J68 |
| Date: | 2014–01–03 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1001&r=eur |
| By: | Necker, Sarah; Voskort, Andrea |
| Abstract: | Exploiting the natural experiment of German reunification, we study whether having experienced socialism has an enduring effect on people's basic values. Using data from the German Socio-Economic Panel, we show that individuals that lived in the German Democratic Republic (GDR) assign different importance to six out of nine life goals. Our evidence suggests two reactions, adaption to policies/conditions in the GDR as well as switching to the opposite values. The strength of the reactions varies with East Germans' appreciation of reunification. Intergenerational transmission seems to contribute to the preservation of socialist in influence across generations; it does not differ between East and West Germany. We show that self-reported values are behaviorally relevant. Differences in values provide a possible explanation for persistent differences in behavior. -- |
| Keywords: | endogenous preferences,socialism,intergenerational transmission |
| JEL: | D12 P26 J13 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:aluord:1313&r=eur |
| By: | Segarra Blasco, Agustí, 1958-; Gombau, Verònica |
| Abstract: | This paper analyzes the profile of Spanish young innovative companies (YICs) and the determinants of innovation and imitation strategies. The results for an extensive sample of 2,221 Spanish firms studied during the period 2004–2010 show that YICs are found in all sectors, although they are more concentrated in high-tech sectors and, in particular, in knowledge-intensive services (KIS). Three of every four YICs are involved in KIS. Our results highlight that financial and knowledge barriers have much impact on the capacity of young, small firms to innovate and to become YICs, whereas market barriers are not obstacles to becoming a YIC. Public funding, in particular from the European Union, makes it easier for a new firm to become a YIC. In addition, YICs are more likely to innovate than mature firms, although they are more susceptible to sectoral and territorial factors. YICs make more dynamic use of innovation and imitation strategies when they operate in high-tech industries and are based in science parks located close to universities. Keywords: innovation strategies, public innovation policies, barriers to innovation, multinomial probit model. JEL Codes: D01, D22 , L60, L80, O31 |
| Keywords: | Microeconomia, Conducta organitzacional, Manufactures, Sector terciari, Innovacions tecnològiques -- Política governamental, 33 - Economia, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/222200&r=eur |
| By: | Christian Dustmann (University College London, CrEAM and CEPR); Tommaso Frattini (University of Milan, CrEAM, IZA and Centro Studi Luca d’Agliano) |
| Abstract: | In this paper, we investigate the fiscal impact of immigration on the UK economy, with a focus on the period since 1995. We provide estimates for the overall immigrant population for the period between 1995 and 2012, and for more recent immigrants who arrived since 2000, distinguishing between immigrants from European versus non-European countries. Overall, our findings indicate that EEA immigrants have made a positive fiscal contribution, even during periods when the UK was running budget deficits. This positive contribution is particularly noticeable for more recent immigrants that arrived since 2000 in particular from EEA countries. |
| Keywords: | Immigration, Fiscal Impact, Welfare State |
| JEL: | J61 J68 H20 |
| URL: | http://d.repec.org/n?u=RePEc:csl:devewp:359&r=eur |
| By: | Hubert JAYET (Université Lille 1, EQUIPPE); Glenn RAYP (Ghent University, SHERPPA); Ilse RUYSSEN (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and Ghent University, SHERPPA); Nadiya UKRAYINCHUK (Université de Lille 2, EQUIPPE) |
| Abstract: | This paper analyses migratory streams to Belgian municipalities between 1994-2007. The Belgian population register constitutes a rich and unique database of yearly migrant in inflows and stocks broken down by nationality, which allows us to empirically explain the location choice of immigrants at municipality level. Specifically, we aim at separating the network effect, captured by the number of previous arrivals, from other location-specific characteristics such as local labor or housing market conditions and the presence of public amenities. We expect labor and housing market variables to operate at different levels and develop a nested model of location choice in which an immigrant first chooses a broad area, roughly corresponding to a labor market, and subsequently chooses a municipality within this area. We find that the spatial repartition of immigrants in Belgium is determined by both network effects and local characteristics. The determinants of local attractiveness vary by nationality, as expected, but for all nationalities, they seem to dominate the impact of network effects. |
| Keywords: | International migration, Location choice, Network effects, Nested logit |
| Date: | 2014–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvir:2014004&r=eur |
| By: | Prantl, Susanne (University of Cologne); Spitz-Oener, Alexandra (Humboldt University Berlin) |
| Abstract: | Does interacting product and labor market regulation alter the impact of immigration on wages of competing native workers? Focusing on the large, sudden and unanticipated wave of migration from East to West Germany after German reunification and allowing for endogenous immigration, we compare native wage reactions across different segments of the West German labor market: one segment without product and labor market regulation, to which standard immigration models best apply, one segment in which product and labor market regulation interact, and one segment covering intermediate groups of workers. We find that the wages of competing native West Germans respond negatively to the large influx of similar East German workers in the segment with almost free firm entry into product markets and weak worker influence on the decision-making of firms. Competing native workers are insulated from such pressure if firm entry regulation interacts with labor market institutions, implying a strong influence of workers on the decision-making of profit-making firms. |
| Keywords: | immigration, product market regulation, labor market regulation |
| JEL: | J61 L50 J3 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7882&r=eur |
| By: | Csizmazia, Roland Attila |
| Abstract: | This case study aims to provide a better understanding of the necessity for regulation in the market for pharmaceuticals and to reveal the impacts of parallel trades in the European Union and how they may affect markets in the future. The pharmaceutical industry up to now has largely been regulated. Although the EU is a single market, it still has variable prices for pharmaceuticals. Consequently, the price gap and other EU-specific factors have created a great environment for parallel trades. The author has confined this study to the price regulations inside the EU before the enlargement in 2004. |
| Keywords: | Regulation, pharmaceutical market, European Union, parallel trade |
| JEL: | D40 |
| Date: | 2013–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:52945&r=eur |
| By: | Florence Goffette-Nagot (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure (ENS) - Lyon - PRES Université de Lyon); Modibo Sidibé (Duke University, Department of Economics - Duke University (Durham, USA)) |
| Abstract: | The public housing sector provides housing units at below-market rents, potentially allowing its tenants to save for a downpayment more quickly than they would have otherwise. In this paper, we analyze the effect of a spell in public housing on age at first-time homeownership using the French Housing Survey. We use a pseudo-panel approach that takes into account the specificities of the local housing market, to derive individual tenure transitions from multiple cross-sections data. Using an IV strategy to control for a potential selection into public housing, we jointly estimate public housing tenancy and duration before first-time homeownership, and take into account unobserved heterogeneity. Our results indicate that a spell in public housing increases the hazard to homeownership, supporting the idea that, in France, the public housing policy provides an important pathway to homeownership. |
| Keywords: | Homeownership; Public housing; Tenure choice; Duration model; Unobserved heterogeneity |
| Date: | 2014–01–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00925717&r=eur |
| By: | Brännlund, Runar (CERE, Umeå University) |
| Abstract: | The objective with this study is to analyze the role of energy taxes for energy efficiency in the Swedish transport sector. In particular we analyze how large share the Swedish energy tax will contribute to the overall Swedish target for energy efficiency set by the EU directive for energy efficiency. To obtain the objective a dynamic demand model for gasoline and diesel is estimated, based on Swedish time series data from 1976 to 2012. The results from the demand model shows that a higher tax on gasoline results in lower gasoline demand, but leads to an increase in diesel consumption, and vice versa. A removal of the energy and CO2 tax, lowering both the gasoline and diesel consumer price, leads to an overall increase in energy use, but also to an increase in the share for diesel in fuel use. Concerning energy savings the simulation results show that the current Swedish energy and CO2 taxes are sufficient for achieving the EU stipulated target, and hence no additional measures has to be taken. |
| Keywords: | energy efficiency; gasoline; diesel; cointegration |
| JEL: | Q41 |
| Date: | 2013–10–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2014_006&r=eur |
| By: | Lutz, Benjamin Johannes; Pigorsch, Uta; Rotfuß, Waldemar |
| Abstract: | In this paper we examine the nonlinear relation between the EUA price and its fundamentals, such as energy prices, macroeconomic risk factors and weather conditions. By estimating a Markov regime-switching model, we find that the relation between the EUA price and its fundamentals varies over time. In particular, we are able to identify a low and a high volatility regime, both showing a strong impact of the fundamentals on the EUA price. The most important EUA price drivers are changes on the stock market and energy prices. The gas price and a broad European equity index affect the EUA price positively in both regimes, while the coal price and the oil price have a significant, but also positive impact only during the high and the low volatility regime, respectively. The high volatility regime is predominant in phases when economic activities are on a decrease or when institutional changes harm the confidence in the stringency of the EU ETS. This holds during the recession of 2008 and 2009, as well as during 2011 and 2012 when the debt crisis impaired the European economic outlook. -- |
| Keywords: | EU ETS,EUA Price Fundamentals,Markov Regime-Switching |
| JEL: | C22 C58 G13 Q50 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:13001r&r=eur |
| By: | Christoph Böhringer (University of Oldenburg, Departmentof Economics); Alexander Cuntz (Expert Commission for Research and Innovation, Berlin, Germany); Dietmar Harhoff (Max Planck Institute for Intellectual Property and Competition Law, Munich, Germany); Emmanuel A. Otoo (Universtiy of Oldenburg, Department of Economics) |
| Abstract: | Feed-in tariffs under the Renewable Energy Sources Act, the so - called Erneuerbare - Energien - Gesetz (EEG), have triggered a massive expansion of electricity from renewable energy sources in Germany over the last decade. The increase in non-competitive renewable power generation though went hand in hand with a substantial rise in electricity prices with consumers paying for the renewable energy subsidies. The high cost burden has provoked an intense public debate on the benefits of renewable energy promotion. In this paper, we assess one popular justification for feed-in tariffs, i.e., induced innovation as a positive spillover externality. Based on regressions with a time - technology fixed effect negative binomial model, we find that innovation impacts of feed-in tariffs under the EEG are insignificant. |
| Keywords: | renewable energy promotion, feed-in tariffs, innovation, negative binomial regression |
| JEL: | C23 H23 O38 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:old:dpaper:363&r=eur |
| By: | T. Buchmann; D. Hain; Muhamed Kudic; M. Müller |
| Abstract: | Our primary goal is to analyse the drivers of evolutionary network change processes by using a stochastic actor-based simulation approach. We contribute to the literature by combining two unique datasets, concerning the German laser and automotive industry, between 2002 and 2006 to explore whether geographical, network-related, and techno-logical determinants affect the evolution of networks, and if so, as to what extent these determinants systematically differ for science-driven industries compared to scale-intensive industries. Our results provide empirical evidence for the explanatory power of network-related determinants in both industries. The ‘experience effect’ as well as the ‘transitivity effects’ are significant for both industries but more pronounced for laser manufacturing firms. When it comes to ‘geographical effects’ and ‘technological ef-fects’ the picture changes considerably. While geographical proximity plays an important role in the automotive industry, firms in the laser industry seem to be less dependent on geographical closeness to cooperation partners; instead they rather search out for cooperation opportunities in distance. This might reflect the strong dependence of firms in science-driven industries to access diverse external knowledge, which cannot necessarily be found in the close geographical surrounding. Technological proximity negatively influences cooperation decisions for laser source manufacturers, yet has no impact for automotive firms. In other words, technological heterogeneity seems to ex-plain, at least in science-driven industries, the attractiveness of potential cooperation partners. |
| Keywords: | network evolution, innovation network, automotive industry, laser industry, SIENA |
| JEL: | O32 C41 D85 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:iwh:dispap:1-14&r=eur |
| By: | Biavaschi, Costanza (IZA); Zimmermann, Klaus F. (IZA and University of Bonn) |
| Abstract: | Despite the ongoing dialogue on facilitating mobility between the European Union and the Eastern Partnership (EaP) countries, very little is known about the magnitude and characteristics of migration from these countries. We find that EaP migrants experience worse labor market outcomes than other migrant groups, but current and potential migrants hold qualifications in those areas were skill shortages are expected. Therefore, the monitoring and supervision of EaP integration will be consequential in order to understand how much of the current brain waste is driven by poor assessment of foreign qualifications, and to unleash the potential of migration for the German economy. |
| Keywords: | brain waste, eastern partnership countries, labor mobility, foreign qualifications |
| JEL: | J15 J24 J61 J62 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7861&r=eur |
| By: | Claire Bergaentzlé (PACTE - Politiques publiques, ACtion politique, TErritoires - Institut d'Études Politiques [IEP] - Grenoble - CNRS : UMR5194 - Université Pierre-Mendès-France - Grenoble II - Université Joseph Fourier - Grenoble I); Cédric Clastres (PACTE - Politiques publiques, ACtion politique, TErritoires - Institut d'Études Politiques [IEP] - Grenoble - CNRS : UMR5194 - Université Pierre-Mendès-France - Grenoble II - Université Joseph Fourier - Grenoble I); Haikel Khalfallah (PACTE - Politiques publiques, ACtion politique, TErritoires - Institut d'Études Politiques [IEP] - Grenoble - CNRS : UMR5194 - Université Pierre-Mendès-France - Grenoble II - Université Joseph Fourier - Grenoble I) |
| Abstract: | Demand side management (DSM) in electricity markets could improve energy efficiency and achieve environmental targets through controlled consumption. For the past 10 years or so DSM programmes have registered significant results. However, detailed analysis of its real impact as observed by a large number of pilot studies suggests that such programmes need to be fine-tuned to suit clearly identified conditions. This study aims to provide recommendations for the instruments to be used to prompt demand response with a view to maximizing energy and environmental efficiencies of various countries. The present study suggests that different DSM models should be deployed depending on the specific generation mix in any given country. Beside the natural benefits from cross-borders infrastructures, DSM improves the flexibility and reliability of the energy system, absorbing some shock on generation mix. We show efficiency increases with demand response but at a decreasing rate. So, according to rebound and report effects, simple DSM tools could be preferred. |
| Keywords: | EU energy policy ; Demand side management ; Energy efficiency |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00928678&r=eur |
| By: | Addison, John T. (University of South Carolina); Teixeira, Paulino (University of Coimbra); Evers, Katalin (Institute for Employment Research (IAB), Nuremberg); Bellmann, Lutz (Institute for Employment Research (IAB), Nuremberg) |
| Abstract: | The effect of collective bargaining on innovation has long been in dispute. At the level of theory, the hold-up problem has been used to justify positive as well as negative effects of unionism. At the empirical level, although some would consider the North American evidence as cut and dried, this is not the case for other countries. In Europe there is some suggestion that certain industrial relations systems, either alone or in combination with the regulatory framework in which they are embedded, may tip the balance in favor of a beneficial union effect. In the present paper, we assemble nationally representative data for Germany – for many observers the exemplar of a cooperative industrial relations regime – to investigate the impact of collective bargaining on (several measures of) process innovation and product innovation. Our cross section and longitudinal analysis fails to indicate that unionism retards innovation. Indeed, in conjunction with workplace representation, collective bargaining at sectoral level might even be pro innovative. |
| Keywords: | Germany, collective bargaining, innovation |
| JEL: | J51 J53 O31 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7871&r=eur |