| 1. |
- Albrecht, James, et al.
(författare)
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The career dynamics of high-skilled women and men : Evidence from Sweden
- 2018
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Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 105, s. 83-102
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Tidskriftsartikel (refereegranskat)abstract
- In this paper, we use matched worker-firm register data from Sweden to examine the career dynamics of high-skill women and men. Specifically, we track wages for up to 20 years among women and men born in the years 1960-70 who completed a university degree in business or economics. These women and men have similar wages and earnings at the start of their careers, but their career paths diverge substantially as they age. These men and women also have substantial differences in wage paths associated with becoming a parent. We look at whether firm effects account for the differences we observe between women's and men's wage profiles. We document differences between the firms where men work and those where women work. However, a wage decomposition suggests that these differences in firm characteristics play only a small role in explaining the gender log wage gap among these workers. We then examine whether gender differences in firm-to-firm mobility help explain the patterns in wages that we see. Men and women both exhibit greater mobility early in their careers, but there is little gender difference in this firmto-firm mobility. We find that the main driver of the gender difference in log wage profiles is that men experience higher wage gains than women do both as switchers and as stayers.
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| 2. |
- Balleer, Almut, et al.
(författare)
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Does short-time work save jobs? A business cycle analysis
- 2016
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Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 84, s. 99-122
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Tidskriftsartikel (refereegranskat)abstract
- In the Great Recession most OECD countries used short-time work (publicly subsidized working time reductions) to counteract a steep increase in unemployment. We show that short-time work can actually save jobs. However, there is an important distinction to be made: while the rule-based component of short-time work is a cost-efficient job saver, the discretionary component is completely ineffective. In a case study for Germany, we use the rich data available to combine micro- and macroeconomic evidence with macroeconomic modeling in order to identify, quantify and interpret these two components of short-time work.
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| 3. |
- Bisin, Alberto, et al.
(författare)
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Bend it like Beckham : Ethnic identity and integration
- 2016
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Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 90, s. 146-164
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Tidskriftsartikel (refereegranskat)abstract
- We propose a theoretical framework to study the determinants of ethnic and religious identity along two distinct motivational processes: cultural distinction and cultural conformity. Under cultural conformity, ethnic identity is reduced by neighborhood integration, which weakens group loyalties and prejudices. On the contrary, under cultural distinction, ethnic minorities are more motivated in retaining their own distinctive cultural heritage the more integrated are the neighborhoods where they reside and work. Using data on ethnic preferences and attitudes provided by the Fourth National Survey of Ethnic Minorities in the UK we find evidence that might be consistent with intense ethnic and religious identity mostly formed as a cultural distinction mechanism. Consistently, we document that ethnic identities might be more intense in mixed than in segregated neighborhoods.
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| 4. |
- Broer, Tobias
(författare)
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The home bias of the poor : Foreign asset portfolios across the wealth distribution
- 2017
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Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 92, s. 74-91
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Tidskriftsartikel (refereegranskat)abstract
- This paper documents how the share of foreign stocks in US household portfolios rises with the ratio of financial wealth to non-financial income. This is both because wealthier households are more likely to participate in foreign asset markets, and because portfolio shares of participants increase with financial wealth but decrease with non-financial income. A simple, standard two-country general equilibrium model shows that hedging of terms of trade movements and non-financial income risk produces non-trivial heterogeneity in portfolios across the wealth and income distribution within countries that is qualitatively in line with this evidence.
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| 5. |
- Davidson, Carl, et al.
(författare)
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Global Engagement and the Occupational Structure of Firms
- 2017
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Ingår i: European Economic Review. - : Elsevier BV. - 1873-572X .- 0014-2921. ; 100, s. 273-292
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Tidskriftsartikel (refereegranskat)abstract
- Global engagement can impact firm organization and the occupations firms need. We use a simple task-based model of the firm's choice of occupational inputs to examine how that choice varies with global engagement. We reveal a robust and causal relationship between global engagement and the skill mix of occupations within firms, using Swedish matched employer-employee data that link firms and the labor force for 1997–2005. Taking an instrumental variable approach, we find that increased export shares (driven by higher world import demand) skew the labor mix more toward high-skill occupations. Our results suggest that global engagement may require firms to employ more skilled labor to undertake complex tasks embodied in international businesses, which have further implications for the demand for specific occupational skills and overall wage dispersion.
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| 6. |
- Elinder, Mikael, et al.
(författare)
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Promises, policies and pocketbook voting
- 2015
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Ingår i: European Economic Review. - : Elsevier. - 0014-2921 .- 1873-572X. ; 75, s. 177-194
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Tidskriftsartikel (refereegranskat)abstract
- Do voters respond to political parties' promises or to their past actions? We use a suitable sequence of events in Swedish politics to provide the first answer to this question. In the 1994 election campaign the Social Democrats proposed major cuts in transfers to parents with young children, whereas in the 1998 campaign they promised to increase transfers. The Social Democrats won both elections and delivered on both promises. Using voting among parents with slightly older children as counterfactual, we find that voters with young children responded markedly to economic promises rather than to implemented policies.
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| 7. |
- Engström, Per, et al.
(författare)
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Income underreporting among the self-employed : a permanent income approach
- 2017
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Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 92, s. 92-109
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Tidskriftsartikel (refereegranskat)abstract
- The consumption based method to estimate underreporting among self-employed, introduced by Pissarides andWeber (1989), is one of the workhorses in the empirical literature on tax evasion/avoidance. We show that failure to account for transitory income fluctuations in current income may overestimate the degree of underreporting by around 40 percent. Previous studies typically use instrumental variable methods to address the issue. In contrast, our access to registry based longitudinal income measures allows a direct approach based on more permanent income measures. This also allows us to evaluate the performance of a list of instruments widely used in the previous literature. Our analysis shows that capital income is the most suitable instrument in our application, while education and housing related measures do not seem to satisfy the exclusion restrictions.
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| 8. |
- Freier, Ronny, et al.
(författare)
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Do parties matter? Estimating the effect of political power in multi-party systems
- 2015
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Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 80, s. 310-328
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Tidskriftsartikel (refereegranskat)abstract
- When there are more than two parties, policy outcomes are typically the result of a bargaining process. We investigate whether changes in political power for various parties have an effect on tax policies. We use an instrumental variable approach where close elections provide the exogenous variation in our variable of interest: voting power. In order to isolate close elections in a proportional election system, we develop a new simulation algorithm. Using data from German municipalities in the state of Bavaria, our estimation results suggest that political power does matter for policies. Somewhat surprisingly, the center-left party SPD is found to lower all three locally controlled taxes, whereas The Greens increase both property taxes considerably. These results remain robust across a range of specifications. Our partisan effect for the SPD is also confirmed by a simple regression discontinuity estimation using mayoral elections.
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| 9. |
- Gaigné, Carl, et al.
(författare)
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Agglomeration, city size and crime
- 2015
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Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 80, s. 62-82
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Tidskriftsartikel (refereegranskat)abstract
- This paper analyzes the relationship between crime and agglomeration where the land, labor, product, and crime markets are endogenously determined. Our main theoretical findings are the following: (i) better accessibility to jobs decreases crime in the short run but may increase crime in the long run; (ii) the per-capita crime rate increases with city size; (iii) when allowing for endogenous policing, lower commuting costs make the impact of police on crime more efficient.
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| 10. |
- Habla, Wolfgang, et al.
(författare)
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The political economy of mitigation and adaptation
- 2017
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Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 92, s. 239-257
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Tidskriftsartikel (refereegranskat)abstract
- Climate policies have very uneven effects in terms of their fiscal impact. While mitigation of climate change typically raises revenues, adaptation is costly to the taxpayer, and the more so, the more distortionary the tax system. Moreover, the benefits and costs of mitigation and adaptation vary across generations. In an OLG model with majority voting, we show that even in the absence of international pollution spillovers and strategic considerations, neither mitigation nor adaptation can be expected to be set efficiently. The reason is that voters have incentives to use climate policy as an instrument for redistribution. We find that these incentives depend on the underlying tax system. Furthermore, the chosen mitigation or adaptation level may be inefficiently high in a political equilibrium with a distortionary income tax system, although not simultaneously. This finding suggests that a distortionary income tax system favors one policy (mitigation or adaptation) at the expense of the other. The calibration of our model to the German economy reveals that both mitigation and adaptation are lower than their socially optimal levels.
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