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on Microeconomic European Issues |
| By: | Colella, Fabrizio |
| Abstract: | This paper analyzes the composition of the wage differentials among part-time and full-time working women in seven European countries: France, Germany, Italy, Netherlands, Spain, Sweden and United Kingdom. Using cross-sectional microdata from the eighth waves of the European Union Statistics on Income and Living Conditions project (EU-SILC), the study investigates the variances in part-time/full-time hourly wage gap and the role of different occupational profiles as a possible explanation. Applying an Oaxaca-Blinder Wage Decomposition, corrected for double sample selection to account for participation decisions and part-time/full-time choice, the adjusted wage gap is found to be negative in all countries except Sweden, where data show a significant part-time premium. Controlling for different job-related characteristics, the research points to a reduction of the gap in all countries; the unexplained portion remains, however, relevant in some countries. In order to shed light on the latter, existing studies are evaluated showing how cross-country dissimilarities can be due to cultural characteristics connected to workers' preferences and different institutional frameworks. |
| Keywords: | Part-Time Endogenous Switching Model Wage Differentials Women |
| JEL: | J0 J3 J5 J7 |
| Date: | 2014–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55287&r=eur |
| By: | Godart, Olivier (Kiel Institute for the World Economy); Görg, Holger (Kiel Institute for the World Economy); Hanley, Aoife (Kiel Institute for the World Economy) |
| Abstract: | We explore whether the introduction of trust based working hours is related to the subsequent innovation performance of firms. Employing a panel data set of over 5,000 German establishments, we implement a propensity score matching approach where we only consider firms that did not use trust based work contracts initially. Our results show that firms which adopt such contracts tend to be between 11 to 14 percent more likely to improve products. These results hold when we control for another form of flexible time work arrangements, namely working time accounts. Thus, the positive relationship between the adoption of trust based working hours and innovation seems to be driven by the degree of control and self-management over working days, rather than by merely allowing time flexibility. |
| Keywords: | trust based work time, innovation, firm performance |
| JEL: | M54 M12 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8097&r=eur |
| By: | Floriana Cerniglia; Laura Pagani |
| Abstract: | The allocation of competences between the EU and Member States is one of most burning issues in the history of the European integration. From a theoretical economic perspective, this ongoing process calls into question the theory of fiscal federalism. In this paper, we study empirically the impact of European citizens’ knowledge about the EU on their attitudes toward the allocation of competences. We use micro-data from the Eurobarometer survey. We find that more knowledgeable citizens are more willing to favour centralization of competences to the EU in areas where public intervention by individual Member States causes externalities, where scale economies in the provision of public goods are important and where redistributive and stabilization functions have to be pursued. |
| Keywords: | European Union, Information, Policy opinions, Political Economy |
| JEL: | H7 D8 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:mib:wpaper:272&r=eur |
| By: | Renee Luthra (University of Essex); Lucinda Platt (London School of Economics); Justyna Salamońska (University of Chieti-Pescara) |
| Abstract: | The expansion of the European Union eastwards in 2004, with an ensuing massive increase in East-West migration from the accession countries has been represented as a new migration system of a kind unique in recent migration history, with its specific features of rights of movement and low mobility and information costs accompanying persistent East-West wage differentials. In principle, it provides an ideal context in which to develop understandings of the ‘new migration’ reflecting complex motivations and migration trajectories as well as chain migration and transnational lives. Despite a rapid expansion of research in this area, new insights into the complexities of mixed migration motivations and migrant heterogeneity have tended to be focused on country-specific qualitative studies. In this paper we utilise a unique, four-country data source covering over 3,500 Poles migrating to Germany, the Netherlands, London and Dublin in 2009-2010, to enable the quantitative characterization of the new migration. Exploiting information on pre-migration experience as well as expressed migration motivations and post-migration structural, subjective and social measures of integration in the receiving country, we conduct a three-stage analysis. First we employ latent class analysis to allocate the migrants to six migrant types. Second, we link these migrant types to pre-migration characteristics and estimate multinomial logit models for class membership. Third, controlling for these pre-migration characteristics we are able to explore how the migrant types are associated with measures of integration. We reveal substantial heterogeneity among migrants and some evolving ‘new’ migrant types alongside more traditional labour migrants. We show how these types are associated with differences in pre-migration human capital, region of origin and employment experience and with post-migration social and subjective integration in receiving societies. |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:1412&r=eur |
| By: | Saniter, Nils (DIW Berlin); Siedler, Thomas (University of Hamburg) |
| Abstract: | This study examines the causal link between individuals' occupational knowledge, educational choices, and labor market outcomes. We proxy occupational knowledge with mandatory visits to job information centers (JICs) in Germany while still attending school. Exogenous variation in the location and timing of JIC openings allow estimating causal effects in a difference-in-difference setup. Combining linked survey-administrative data with data on JICs permits to detect whether individuals benefited from the comprehensive information service when they were young. The results suggest that individuals, who went to school in administrative districts with a JIC, have higher educational attainments and a smoother transfer to the labor market than students who did not have access to these facilities. However, we find no effects on individuals' earnings in their first job or later in life. Overall, our results confirm the importance of policies that promote occupational knowledge among young adults. |
| Keywords: | education, uncertainty, job matching, information, job information centers |
| JEL: | I2 J24 J31 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8100&r=eur |
| By: | Stancanelli, Elena G. F. (CNRS, Sorbonne Economics Research Center (CES)) |
| Abstract: | The many facets of retirement have been studied widely by economists. However, the effect of retirement on marriage stability has been ignored in the literature. Retirement represents a dramatic change in individual time allocation that may affect marriage stability. In particular, individuals that grew up in traditional households in which the father did little domestic work and both spouses worked very long hours such as farmer household may find their marriage especially proven by the transition into retirement. We study the effect of retirement on marriage outburst rates using observations on over 200 000 French men and over 166 000 French women aged 50 to 70, drawn from the French Labor Force Surveys over the period 1990 to 2002. Due to reverse causality concerns, we instrument retirement in our divorce model by exploiting legal retirement age in France and applying a regression discontinuity approach. We find a significant increase in divorce rates which soar and almost double upon retirement for individuals of either gender that grew up in a traditional family environment such as a farmer household. |
| Keywords: | ageing, retirement, regression discontinuity |
| JEL: | J14 C1 C36 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8117&r=eur |
| By: | Bossler, Mario (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]) |
| Abstract: | "Using new and unique linked employer-employee data from Germany, I examine the extent to which immigrants sort into worse-paying establishments and worse job positions within establishments. The results demonstrate that recent immigrants are particularly likely to work at low-paying workplaces. Similarly, when examining job positions within establishments, I find that immigrants are employed in lower hierarchical positions. Both the non-random sorting across establishments and the hierarchical sorting within establishments explain much of the immigrant-native wage differential. Policy measures designed to address the wage differential should therefore address immigrants' access to well-paying workplaces and job positions. With respect to career development, immigrant participation in performance assessments is low, and immigrants feel disadvantaged in personnel decisions, which in turn might be relevant channels that explain immigrants' under-representation in well-paid positions." (Author's abstract, IAB-Doku) ((en)) |
| JEL: | J31 J61 |
| Date: | 2014–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabdpa:201410&r=eur |
| By: | Kluve, Jochen (Humboldt University Berlin, RWI); Schmitz, Sebastian (Freie Universität Berlin) |
| Abstract: | Increasing mothers' labor supply is a key policy challenge in many OECD countries. Germany recently introduced a generous parental benefit that allows for strong consumption smoothing after childbirth and, by taking into account opportunity costs of childbearing, incentivizes working women to become mothers and return to the labor force rapidly. Using a sharp regression discontinuity design, we estimate policy impacts for up to 5 years after childbirth and find significant and striking patterns. First, medium-run effects on mothers' employment probability are positive, significant and large, for some subgroups ranging up to 10 per cent. The effects are driven by gains in part-time but not full-time employment. We also find significant increases in working hours. Second, the probability of job continuity rises significantly, i.e. mothers return to their pre-childbirth employer at higher rates. Third, employers reward this return to work by raising job quality significantly and substantially. We argue that the policy generated a profound change in social norms: the new parental benefit defines an "anchor", i.e. a societally preferred point in time at which mothers return to work after childbirth. |
| Keywords: | regression discontinuity, female labor supply, parental benefits |
| JEL: | H31 J13 J22 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8115&r=eur |
| By: | Massimo Baldini; Costanza Torricelli; Maria Cesira Urzì Brancati |
| Abstract: | In this paper we analyse household members’ reactions in case of unforeseen negative income shocks due to a transition into unemployment and/or into income support. More specifically, we estimate the impact of an income loss suffered by one household member on the probability that another household member – not necessarily the wife - transit from out of the labour force into employment or into workforce. Since in a lifecycle setting the labour supply of secondary workers is also affected by credit constraints, we take into account financial wealth and liabilities as well as a measure of household illiquidity due to housing. To perform our analyses, we use a discrete choice model and data drawn from the Bank of Italy Survey on Household Income and Wealth (SHIW) over the period 2004-2012, so as to include the effects of the Great Recession. Even after accounting for standard socio-economic controls, results show significant reactions to income shocks, especially during the recession. As for portfolio controls, we find a significant difference (mostly in terms of intercept, but also of slope) between the level of illiquidity and labour market participation for households hit/not hit by a shock. |
| Keywords: | household labour decisions, household portfolios, discrete-choice models |
| JEL: | D12 D14 J22 C25 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:mod:wcefin:14104&r=eur |
| By: | Diederich, Johannees; Goeschl, Timo |
| Abstract: | Disentangling the motivational drivers of individuals is frequently regarded a key step in reconciling theory and empirical evidence on the voluntary provision of public goods. We present results of a large online field experiments with 12,624 contribution choices by members of the Internet-using German population. Subjects are assigned to six treatments targeted at motivations such as altruism, "warm glow", image motivation, or equity concerns. While evidence on treatment effects is mixed, the data point to signicant effects of framing and the sequence of presenting options. Exploiting variations within the highly heterogeneous sample, the results confirm previous results from a subset of the data on sociodemographics and exogenous environmental conditions as determinants of subjects' choices and add additional evidence that females and older subjects are more inclined to give to the public good. |
| Keywords: | private provision of public goods; online experiment; field experiment; warm glow; social norms; equity field experiment; online experiment |
| Date: | 2014–04–16 |
| URL: | http://d.repec.org/n?u=RePEc:awi:wpaper:0561&r=eur |
| By: | Escudero, Veronica |
| Abstract: | This paper examines the effectiveness of active labour market policies (ALMP) in improving labour market outcomes, especially of low-skilled individuals. The empirical analysis consists of an aggregate impact approach based on a pooled cross country and time-series database for 31 advanced countries during the period 1985–2010. A novelty of the paper is that the analysis includes aspects of the delivery system to see how the performance of ALMP is affected by different implementation characteristics. Among the notable results, the paper finds that ALMP matters at the aggregate level. Training, employment incentives, supported employment and direct job creation measures show the most favourable results, both, in terms of reduced unemployment, but also in terms of increased employment and participation. Interestingly, start-up incentives are more effective in reducing unemployment than other ALMP policies. Moreover, the positive effects seem to be particularly beneficial for the low-skilled. In terms of implementation, the paper finds that the most favourable aspect is the allocation of resources to programme administration. Finally, a disruption of policy continuity is associated with negative effects for all labour market variables analysed. |
| Keywords: | unemployment, employment, participation rate, active labour market policies, implementation, public employment services, training, start-up incentives. |
| JEL: | E24 H53 J08 J6 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55319&r=eur |
| By: | Mörk, Eva (Department of Economics, Uppsala University); Sjögren, Anna (IFAU - Institute for Evaluation of Labour Market and Education Policy); Svaleryd, Helena (Department of Economics, Uppsala University) |
| Abstract: | We analyze to what extent health outcomes of Swedish children are worse among children whose parents become unemployed. To this end we combine Swedish hospitalization data for 1992-2007 for children 3-18 years of age with register data on parental unemployment. We find that children with unemployed parents are 17 percent more likely to be hospitalized than other children, but that most of the difference is driven by selection. A child fixed-effects approach suggests a small effect of parental unemployment on child health. |
| Keywords: | Parental unemployment; child health; human capital |
| JEL: | I12 J13 |
| Date: | 2014–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ifauwp:2014_008&r=eur |
| By: | Hud, Martin; Hussinger, Katrin |
| Abstract: | This study investigates the impact of R&D subsidies on R&D investment during the past financial crisis. We conduct a treatment effects analysis and show that R&D subsidies increased R&D spending among subsidized small and medium sized firms in Germany during the crisis years. In the first crisis year, the additionality effect induced by public support was, however, smaller than in other years. This temporary decrease may be caused by an altered innovation subsidy scheme in crisis years or by a different innovation investment behavior of the subsidy recipients. We do not find support for the countercyclical innovation subsidy scheme having caused the smaller additionality effect and conclude that it is likely to be driven by subsidy recipient behavior. -- |
| Keywords: | R&D,Subsidies,Policy Evaluation,Financial Crisis,Treatment Effects |
| JEL: | C14 C21 G01 H50 O38 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:14024&r=eur |
| By: | Dewenter, Ralf (Helmut Schmidt University, Hamburg); Heimeshoff, Ulrich (DICE / Heinrich-Heine-Universität Düsseldorf) |
| Abstract: | This paper investigates the existence of a possible media bias by analyzing the impact of auto- mobile manufacturer’s advertisements on automobile reviews in a leading German car maga- zine. By accounting for both endogeneity and sample selection using a two-step procedure, we find a positive impact of advertising volumes on test scores. The main advantage of our study is the measurement of technical characteristics of cars to explain test scores. Due to this kind of measurement, we avoid serious biases in estimating media bias caused by omitted variables. |
| Keywords: | Car magazines; Media bias; Selection model; Instrumental variable estimation |
| JEL: | L15 L82 |
| Date: | 2014–04–17 |
| URL: | http://d.repec.org/n?u=RePEc:ris:vhsuwp:2014_139&r=eur |
| By: | Bejenariu, Simona (Department of Economics, School of Business, Economics and Law, Göteborg University); Mitrut, Andreea (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | Roma, Europe’s largest minority, face poverty, social exclusion and life-long inequalities, despite the intensified efforts to alleviate their plight. Surprisingly, despite substantial funding aimed at improving Roma outcomes, there is a very little evidence on the effectiveness of these programs. This is the first paper to analyze the Roma Health Mediation Program (RHM), a large-scale public health program implemented first in Romania and developed further in other countries, whose main aim was to improve the health status of pregnant and postpartum Roma women and children, with the help of specially trained Roma health mediators. Using unique registered data from Romania, we exploit the spatial and temporal variation in implementation dates of the program to investigate the effects of the RHM on prenatal care take-up rates and child health. We find that the program had a very large impact on the take-up of prenatal care services, but this improvement was not reflected in the health outcomes at birth of Roma children. However, we do find evidence of decreased stillbirths and infant deaths after the program implementation. |
| Keywords: | Roma; exclusion; poverty; program take-up; health at birth |
| JEL: | I14 J13 J15 |
| Date: | 2014–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0590&r=eur |
| By: | Stefan Lutz (Royal Docks Business School, University of East London) |
| Abstract: | Economic theory implies that research and development (R&D) efforts increase firm productivity and ultimately profits. In particular, R&D expenses lead to the development of intangible assets in the form of intellectual property (IP) and these assets command a return that increases overall profits of the firm. This hypothesis is investigated for the North American and European automotive supplier industries. Results indicate that R&D expenses in fact increase both intangible asset levels and their profit contributions. In particular, increases in the R&D expense to sales ratio lead to increases in the profit contribution of intangible assets relative to sales. This indicates that more R&D intensive IP should command higher royalty rates per sales when licensed to third parties and within multinational enterprises alike. |
| Keywords: | Productivity; Intellectual property; Royalties; MNE; Transfer pricing. |
| JEL: | D24 L20 L62 M21 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:ucm:doicae:1407&r=eur |
| By: | Nyberg, Sten (Dept. of Economics, Stockholm University); Priks, Mikael (Dept. of Economics, Stockholm University) |
| Abstract: | Should organizers of events, such as sport games or concerts, share the costs of maintaining public order in connection to the events? This question has been hotly debated in many countries, especially in connection to soccer hooliganism. Critics argue that organizers should do more to combat unruly behavior, which has significant external effects. The incentive to do so may be muted by the possibility of free riding on the police. We model how co-payments can address the under-provision of security on the part of organizers. However, it has been claimed that co-payments can backfire and lead financially constrained organizers to instead provide less, not more, security. We analyze under which circumstances this may be true. Finally, we exploit a natural experiment from the Swedish soccer league where police payments were introduced for some clubs only. The results are in line with the implications of the model. |
| Keywords: | Public order; private security; public events; co-payments for police; free-riding; externality; hooliganism; natural experiment |
| JEL: | H23 H49 K42 L83 |
| Date: | 2014–04–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:sunrpe:2014_0003&r=eur |
| By: | Pavel Hait; Petr Jansky |
| Abstract: | Inflation rates have traditionally been measured by the annualized percentage change in the price level of a market basket of consumer goods and services purchased by households. The market basket represents the spending patterns of average household. However, households differ in their spending patterns and there are differences in the price changes of various goods and services. Therefore, different households experience different inflation rates. This paper finds that these differences have been significant in the Czech Republic during the period 1995-2010. Only around 60 % of households actually experienced an inflation rate that was similar to the national average. Furthermore, the higher the average inflation rate over time, the lower the percentage of households whose inflation rate was similar to that average. The main determiners of inflation were expenditures for housing and energy and, especially for low-income households and pensioners, expenditures on food and non-alcoholic drinks. In most years, pensioners and low-income households faced significantly higher inflation rates than the average rate for the whole population. |
| Keywords: | households; inflation; inflation differentials; relative prices; |
| JEL: | D12 H22 I31 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:cer:papers:wp508&r=eur |
| By: | Avdic, Daniel (CINCH); Lundborg, Petter (Lund University); Vikström, Johan (IFAU) |
| Abstract: | Although learning-by-doing is believed to be an important source of productivity growth, there is limited evidence that production volume affects productivity in a causal sense. We document evidence of learning-by-doing in a highly skilled profession where stakes are high; advanced cancer surgery. For this purpose, we introduce a novel instrument that exploits the closure and opening of entire cancer clinics which have given rise to sharp and exogenous changes in the cancer surgical volumes at Swedish public sector hospitals. Using detailed register data on more than 100,000 episodes of advanced cancer surgery, our results suggest positive effects of surgery volumes on survival. In addition, we provide evidence on the mechanisms through which these improvements occur. We also show that the results are not driven by changes in patient composition or by other changes at the hospital level. |
| Keywords: | hospital volume, learning-by-doing, cancer surgery, survival, causal effect |
| JEL: | I11 I12 I18 L11 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8099&r=eur |
| By: | De Benedetto, Marco Alberto (Birkbeck, University of London); De Paola, Maria (University of Calabria) |
| Abstract: | We analyze the impact of the quality of candidates running for a mayor position on turnout using a large data set on Italian municipal elections held from 1993 to 2011. We firstly estimate a municipal fixed effects model and show that an increase in the average quality of candidates competing at the electoral race produces a positive impact on turnout. To handle endogeneity issues arising from time variant unobservable features of electoral races, we build on the literature showing that politicians' quality is positively affected by their wage and apply a Fuzzy Regression Discontinuity Design relying on the fact that in Italy the wage of the mayor increases non-monotonically at different thresholds. Results show that an exogenous increase in the average quality of candidates, induced by a higher wage, leads to an increase in turnout by about 2 percentage points. |
| Keywords: | politicians' quality, turnout, fuzzy regression discontinuity design, instrumental variables |
| JEL: | D72 D78 J45 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8102&r=eur |