Institute for the Study of Labor

Displaying 1-40 of 693 results

  • White Papers // Aug 2011

    Gender Gaps Across Countries And Skills: Supply, Demand And The Industry Structure

    The gender wage gap varies widely across countries and across skill groups within countries. Interestingly, there is a positive cross-country correlation between the unskilled-to-skilled gender wage gap and the corresponding gap in hours worked. Based on a canonical supply and demand framework, this positive correlation would reveal the presence of...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Social Interactions In The Labor Market

    The authors examine theoretically and empirically social interactions in labor markets and how policy prescriptions can change dramatically when there are social interactions present. Spillover effects increase labor supply and conformity effects make labor supply perfectly inelastic at a reference group average. The demand for a good may also be...

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  • White Papers // Aug 2011

    Minimum Wages And Teen Employment: A Spatial Panel Approach

    The authors employ spatial econometrics techniques and Annual Averages data from the U.S. Bureau of Labor Statistics for 1990-2004 to examine how changes in the minimum wage affect teen employment. Spatial econometrics techniques account for the fact that employment is correlated across states. Such correlation may exist if a change...

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  • White Papers // Aug 2011

    The Trend Over Time Of The Gender Wage Gap In Italy

    The authors analyze gender wage inequalities in Italy in the mid-1990s and in the mid-2000s. In this period important labour market developments occurred: institutional changes have loosened the use of flexible and atypical contracts; the female employment rates and educational levels have substantially increased. They identify the time trends of...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Real Exchange Rate, Foreign Trade And Employment: Evidence From China

    Coordination of macro-economic development and employment is an essential issue for China's social development, which largely depends on economic expansion, as well as integration into the global market to create jobs. Through the literature review and empirical test, this paper analyzes the relationship between macro-economic policy and employment, and discusses...

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  • White Papers // Aug 2011

    Taxes, Wages And Working Hours

    This paper presents estimates of individuals' responses in hourly wages to changes in marginal tax rates. Estimates based on register panel data of Swedish households covering the period 1992 to 2007 produce significant but relatively small net-of-tax rate elasticities. The results vary with family type, with the largest elasticities obtained...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Elasticity Of Supply To The Firm And The Business Cycle

    A body of recent empirical work has found strong evidence that the labor elasticity of supply to the firm is finite, implying that firms may have wage setting power. However, these studies capture only snapshots of the parameter. The authors study this parameter over a period that provides substantial variation...

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  • White Papers // Aug 2011

    Multidimensional Affluence: Theory And Applications To Germany And The US

    This paper suggests multidimensional affluence measures for the top of the distribution. In contrast to commonly used top income shares, they allow the analysis of the extent, intensity and breadth of affluence in several dimensions within a common framework. The authors illustrate this by analyzing the role of income and...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Exports, Imports And Firm Survival: First Evidence For Manufacturing Enterprises In Germany

    This paper documents the relationship between firm survival and three types of international trade activities - exports, imports and two-way trade. It uses unique new representative data for manufacturing enterprises from Germany, one of the leading actors on the world market for goods, that merge information from surveys performed by...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    The Use Of Violence In Illegal Markets: Evidence From Mahogany Trade In The Brazilian Amazon

    Agents operating in illegal markets cannot resort to the justice system to guarantee property rights, to enforce contracts, or to seek protection from competitors' improper behaviors. In these contexts, violence is used to enforce previous agreements and to fight for market share. This relationship plays a major role in the...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Access To Justice And Entrepreneurship: Evidence From Brazil's Special Civil Tribunals

    Entrepreneurship is usually identified as an important determinant of aggregate productivity and long-term growth. The determinants of entrepreneurship, nevertheless, are not entirely understood. A recent literature has linked entrepreneurship to the development of the justice system. This paper contributes to this literature by evaluating the role of access to justice...

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  • White Papers // Aug 2011

    International Trade And Firm Performance: A Survey Of Empirical Studies Since 2006

    The literature on international trade and firm performance grows exponentially. This paper attempts to summarize what we learn from this literature to guide both future empirical and theoretical work in this area, and public debates and policy makers, in an evidence-based way. The focus is on the empirical part of...

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  • White Papers // Aug 2011

    Job Re-grading, Real Wages, And The Cycle

    This paper makes use of the British New Earnings Survey Panel Dataset between 1976 and 2010. It consists of individual-level payroll data and comprises a random sample of 1% of the entire male and female labor force. About two-thirds of within- and between-company moves involve job re-grading (measured at 3-digit...

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  • White Papers // Aug 2011

    Tax Policy And Income Inequality In The U.S., 1978-2009: A Decomposition Approach

    The authors assess the effects of U.S. tax policy reforms on inequality by applying a new decomposition method that allows them to disentangle mechanical effects due to changes in pre-tax incomes from direct effects of policy reforms. While tax reforms implemented under Democrat administrations, in particular the EITC reforms in...

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  • White Papers // Aug 2011

    Income Inequality, Mobility, And The Welfare State: A Political Economy Model

    In this paper, the authors set up a three-period stochastic overlapping generations model to analyze the implications of income inequality and mobility for demand for redistribution and social insurance. They model the size of two different public programs under the welfare state. They investigate bidimensional voting on the tax rates...

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  • White Papers // Aug 2011

    R&D And Employment: Some Evidence From European Microdata

    After discussing theory regarding the consequences of technological change on employment and surveying previous microeconometric literature, the authors' aim with this paper is to test the possible job creation effect of business R&D expenditures, using a unique longitudinal database covering 677 European manufacturing and service firms over the period 1990-2008....

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  • White Papers // Aug 2011

    Labor Markets And Labor Market Institutions In Transition Economies

    This paper summarizes the evolution of labor markets and labor market institutions and policies in the countries of Central and Eastern Europe as well as of Central Asia over the last two decades. The main focus is on the evolution of labor market institutions, which are among candidate explanations for...

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  • White Papers // Aug 2011

    Enforcement Of Labor Regulation And Informality

    Enforcement of labor regulations in the formal sector may drive workers to informality because they increase the costs of formal labor. But better compliance with mandated benefits makes it attractive to be a formal employee. The authors show that, in locations with frequent inspections workers pay for mandated benefits by...

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  • White Papers // Aug 2011

    Health And Economic Development: Evidence From The Introduction Of Public Health Care

    This paper investigates the causal effect of changes in health on economic development using a long panel of European countries. Identification is based on the particular timing of the introduction of public health care systems in different countries, which is the random outcome of a political process. The authors document...

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  • White Papers // Aug 2011

    How Policy Changes Affect Shareholder Wealth: The Case Of The Fukushima Daiichi Nuclear Disaster

    This paper analyzes how policy changes affect shareholder wealth in the context of environmental regulation. The authors exploit the unique and unexpected German reaction to the Fukushima Daiichi nuclear disaster, which involved the immediate shutdown of almost half of Germany's nuclear reactors while safety checks were carried out, and a...

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  • White Papers // Aug 2011

    Integrating Personality Psychology Into Economics

    This paper reviews the problems and potential benefits of integrating personality psychology into economics. Economists have much to learn from and contribute to personality psychology. What can economists learn from and contribute to personality psychology? What do we learn from personality psychology? Personality traits predict many behaviors - sometimes with...

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  • White Papers // Aug 2011

    Search, Effort, And Locus Of Control

    The authors test the hypothesis that locus of control - one's perception of control over events in life - influences search by affecting beliefs about the efficacy of search effort in a laboratory experiment. They find that reservation offers and effort are increasing in the belief that one's efforts influence...

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  • White Papers // Aug 2011

    Teachers~ Salaries In Latin America: How Much Are They (Under Or Over) Paid?

    This paper documents the extent to which teachers are underpaid vis-?-vis workers in other professional and technical occupations in Latin America circa 2007. These labor earnings differences, attributed to observable socio-demographic and job characteristics, are assessed using a matching methodology (?opo, 2008). Teachers' underpayment is found to be stronger than...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    The Causal Effect Of Education On Health: What Is The Role Of Health Behaviors?

    In this paper, the authors investigate the contribution of health related behaviors to the education gradient, using an empirical approach that addresses the endogeneity of both education and behaviors in the health production function. They apply this approach to a multi-country data set, which includes 12 European countries and has...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    The Stability Of Big-five Personality Traits

    The authors use a large, nationally-representative sample of working-age adults to demonstrate that personality (as measured by the Big Five) is stable over a four-year period. Average personality changes are small and do not vary substantially across age groups. Intra-individual personality change is generally unrelated to experiencing adverse life events...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Underreporting Of Earnings And The Minimum Wage Spike

    This paper documents a positive correlation within European labor markets between the proportion of full-time employees with earnings on the minimum wage and the extent of underreporting of earnings in the economy. Using a simple model of a competitive labor market, the author shows how this correlation can emerge as...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    The Effect Of Variable Pay Schemes On Workplace Absenteeism

    The authors estimate the effect of variable pay schemes on workplace absenteeism using two cross sections of British establishments. Private sector establishments that explicitly link pay with individual performance are found to have significantly lower absence rates. This effect is stronger for establishments that offer variable pay schemes to a...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Economic Conditions At The Time Of Birth And Cognitive Abilities Late In Life: Evidence From Eleven European Countries

    With ageing populations and a stronger reliance on individual financial decision-making concerning asset portfolios, retirement schemes, pensions and insurances, it becomes increasingly important to understand the determinants of cognitive ability among the elderly. Macro-economic recession and boom periods provide a unique opportunity to study the effect of changes in the...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Conflict And Its Impact On Educational Accumulation And Enrollment In Colombia: What We Can Learn From Recent IDPS

    Forty years of low-intensity internal armed conflict has made Colombia home to the world's second largest population of Internally Displaced Persons (IDPs). The effect of being directly impacted by conflict on a child's educational accumulation and enrollment is of particular concern because of the critical role that education plays in...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Does It Pay To Be Productive? The Case Of Age Groups

    Using longitudinal matched employer-employee data for the period 1999-2006, the authors investigate the relationship between age, wage and productivity in the Belgian private sector. More precisely, they examine how changes in the proportions of young (16-29 years), middle-aged (30-49 years) and older (more than 49 years) workers affect the productivity...

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  • White Papers // Aug 2011

    Wage Dispersion And Labor Turnover With Adverse Selection

    The authors consider a model of on-the-job search where firms offer long-term wage contracts to workers of different ability. Firms do not observe worker ability upon hiring but learn it gradually over time. With sufficiently strong information frictions, low-wage firms offer separating contracts and hire all types of workers in...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2011

    Teachers' Salaries In Latin America: How Much Are They (Under Or Over) Paid?

    This paper documents the extent to which teachers are underpaid vis-?-vis workers in other professional and technical occupations in Latin America circa 2007. These labor earnings differences, attributed to observable socio-demographic and job characteristics, are assessed using a matching methodology (?opo, 2008). Teachers' underpayment is found to be stronger than...

    Provided By Institute for the Study of Labor

  • White Papers // Jul 2011

    The Effect Of An Acute Health Shock On Work Behavior: Evidence From Different Health Care Regimes

    The authors study how severe acute health shocks affect the probability of not working in the U. S. versus in Denmark. The results not only provide insight into how relative disease risk affects labor force participation at older ages, but also into how different types of health care and health...

    Provided By Institute for the Study of Labor

  • White Papers // Jul 2011

    Explaining Differences In Job Search Outcomes Between Employed And Unemployed Job Seekers

    The authors use individual data for Great Britain over the period 1992-2009 to compare the probability that employed and unemployed job seekers find a job and the quality of the job they find. The job finding rate of unemployed job seekers is 50 percent higher than that of employed job...

    Provided By Institute for the Study of Labor

  • White Papers // Jul 2011

    Informal Caring And Labour Market Outcomes Within England And Wales

    This paper focuses on the links between informal care provision and labour market activity at the sub-national level. Within-country analysis of this issue has been very limited to date despite the wide regional variations in informal care provision that often exist. This issue is important in the context of policy...

    Provided By Institute for the Study of Labor

  • White Papers // Jul 2011

    Severance Pay Mandates: Firing Costs, Hiring Costs, And Firm Avoidance Behaviors

    The potentially adverse labor market effects of severance pay mandates are a continuing source of policy concern. In a seminal study, Lazear (1990) found that contract avoidance of severance pay firing costs was theoretically simple - a bonding scheme would do - but that empirically the labor market distortions were...

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  • White Papers // Jul 2011

    Let's Take Bargaining Models Seriously: The Decline In Union Power In Germany, 1992-2009

    Building on the right-to-manage model of collective bargaining, this paper tries to infer union power from the observed results in wage setting. It derives a time-varying indicator of union strength and confronts it with annual data for Germany. The results show that union power was relatively stable in the 1990s...

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  • White Papers // Jul 2011

    What Explains Prevalence Of Informal Employment In European Countries: The Role Of Labor Institutions, Governance, Immigrants, And Growth

    European Social Survey data on 30 countries, covering years 2004-2009, are used to look into joint institutional [and other macro] determinants of the rates of dependent employment without a contract, informal self-employment, and unemployment (secondary jobs are not accounted for). Consistently with theoretical predictions, quality of business environment has a...

    Provided By Institute for the Study of Labor

  • White Papers // Jul 2011

    Informal Workers Across Europe: Evidence From 30 Countries

    The European Social Survey data are used to analyze informal employment at the main job in 30 countries. Overall, informality decreases from South to West to East to North. However, dependent work without contract is more prevalent in Eastern Europe than in the West, except for Ireland, the UK and...

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  • White Papers // Jul 2011

    Temporary Contracts And Monopsony Power In The UK Labour Market

    This paper addresses the applicability of the theory of equalizing differences (Rosen, 1987) in a market in which temporary and permanent workers co-exist. The assumption of perfect competition in the labour market is directly questioned and a model is developed in which the labour market is described as a duopsony...

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  • White Papers // Jun 2010

    Automatic Stabilisers And Economic Crisis: US Vs Europe

    This paper analyzes the effectiveness of the tax and transfer systems in the European Union and the US to act as an automatic stabilizer in the current economic crisis. The authors find that automatic stabilizers absorb 38 per cent of a proportional income shock in the EU, compared to 32...

    Provided By Institute for the Study of Labor

  • White Papers // Feb 2009

    The Crux Of The Matter: Ratings And Credit Risk Valuation At The Heart Of The Structured Finance Crisis

    The 2007/2008 global credit crisis was born out of opaque securitization transactions. Introducing structured products risk estimation techniques shows how the most basic investment analysis could not be done without detailed and updated knowledge on the assets of the pool. Access to such details was crucial for investors to perform...

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  • White Papers // Jan 2011

    Enrolment In Micro Life And Health Insurance: Evidences From Sri Lanka

    Microinsurance is an emerging concept protecting households from the potentially catastrophic expenditures associated with family related shocks. Therefore, this paper presents evidence on the determinants of insurance participation using probit models on household survey data from Sri Lanka, conditional on household's microfinance institution enrolment. Further, the authors employ multivariate probit...

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  • White Papers // Feb 2010

    Accounting For China's Growth

    China has achieved impressive growth over the last three decades. However, there has been debate over the sources of the growth, and the role of the intensive versus extensive margin. Growth accounting exercises at the aggregate level (Rawski and Perkins, 2008; Bosworth and Collins, 2008) suggest an equal role for...

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  • White Papers // Sep 2008

    Race, Ethnicity And The Dynamics Of Health Insurance Coverage

    Using matched data from the 1996 to 2004 Current Population Survey (CPS), the authors examine racial patterns in annual transitions into and out of health insurance coverage. They first decompose racial differences in static health insurance coverage rates into group differences in transition rates into and out of health insurance...

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  • White Papers // Jan 2009

    Self-employment And The Role Of Health Insurance

    The authors investigate the effect of health insurance on labor market transitions in and out of self-employment as well as on the likelihood of being self-employed. They consider the role of individual health insurance coverage along with that from a spouse. Next, they examine a series of tax deductions granted...

    Provided By Institute for the Study of Labor

  • White Papers // Apr 2009

    The Effect Of An Employer Health Insurance Mandate On Health Insurance Coverage And The Demand For Labor: Evidence From Hawaii

    Over the past few decades, policy makers have considered employer mandates as a strategy for stemming the tide of declining health insurance coverage. In this paper, the authors examine the long term effects of the only employer health insurance mandate that has ever been enforced in the United States, Hawaii's...

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  • White Papers // Dec 2009

    On The Rise Of Health Spending And Longevity

    The authors use a calibrated stochastic life-cycle model of endogenous health spending, asset accumulation and retirement to investigate the causes behind the increase in health spending and life expectancy over the period 1965-2005. They estimate that technological change along with the increase in the generosity of health insurance may explain...

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  • White Papers // Jul 2011

    The Effect Of An Acute Health Shock On Work Behavior: Evidence From Different Health Care Regimes

    The authors study how severe acute health shocks affect the probability of not working in the U. S. versus in Denmark. The results not only provide insight into how relative disease risk affects labor force participation at older ages, but also into how different types of health care and health...

    Provided By Institute for the Study of Labor

  • White Papers // Jan 2010

    Well-Being Inequality And Reference Groups: An Agenda For New Research

    In this paper it is argued that subjective well-being of the individual depends on two types of variables. The first type consists of characteristics of the individual himself, such as age, health, income, etc. The second type of variables consists of the characteristics of the individuals belonging to his reference...

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  • White Papers // Jan 2009

    The Financial And Operating Performance Of Privatized Firms In Sweden

    This paper examines the change in operating and financial performance of Swedish firms that were either partly or fully privatized during the period of 1989-2007. Two different methods are used to empirically investigate the performance of privatized firms. First, accounting data prior to and after the privatization are employed to...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2009

    Financial Liberalization And Democracy: The Role Of Reform Reversals

    The relationship between economic and political liberalization has received a great deal of attention lately, yet the possibility of a nonlinear relationship and the role of reversals remain largely neglected. Focusing on democratization and financial reform, this paper offers evidence for a U-shaped relationship across countries, over time as well...

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  • White Papers // Aug 2008

    Does Openness To International Financial Flows Contribute To Productivity Growth?

    Economic theory has identified a number of channels through which openness to international financial flows could raise productivity growth. However, while there is a vast empirical literature analyzing the impact of financial openness on output growth, far less attention has been paid to its effects on productivity growth. This paper...

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  • White Papers // Oct 2008

    Financial Development And The Distribution Of Income In Latin America And The Caribbean

    One of the central concerns in Latin America and the Caribbean (LAC) has been the reduction of poverty and inequality so prevalent in the continent. Using large world samples, the literature has found that financial development increases economic growth, increases the income of the poor, and reduces inequality. This paper...

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  • White Papers // Oct 2009

    How Sensitive Are Retirement Decisions To Financial Incentives: A Stated Preference Analysis

    The authors study effects of financial incentives on the retirement age using stated preference data. Dutch survey respondents were given hypothetical retirement scenarios describing age(s) of (partial and full) retirement and replacement rate(s). A structural model is estimated in which utility is the discounted sum of within period utilities that...

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  • White Papers // Oct 2010

    Trust And The Choice Between Housing And Financial Assets: Evidence From Spanish Households

    Trusting behavior has been shown to affect households' portfolio choice between risky and risk-free financial assets. The authors extend the analysis of the effect of trust on portfolio choice to include the dominant component of households' portfolios, real estate. In a simple model, they show how the effect of trust...

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  • White Papers // Aug 2009

    Who Is Hit Hardest During A Financial Crisis? The Vulnerability Of Young Men And Women To Unemployment In An Economic Downturn

    The current financial and economic crisis has resulted in the worst global recession since World War II. The subsequent destruction of jobs and increased duration of joblessness will ensure that unemployment across the world will continue to rise and stay stubbornly high for some time to come, well after the...

    Provided By Institute for the Study of Labor

  • White Papers // Oct 2008

    Two To Tangle: Financial Development, Political Instability And Economic Growth In Argentina (1896-2000)

    This paper investigates the effects of financial development and political instability on economic growth in a power-ARCH framework with data for Argentina from 1896 to 2000. The authors' findings suggest that informal or unanticipated political instability (e.g., guerrilla warfare) has a direct negative impact on growth; formal or anticipated instability...

    Provided By Institute for the Study of Labor

  • White Papers // Oct 2010

    Differences By Degree: Evidence Of The Net Financial Rates Of Return To Undergraduate Study For England And Wales

    This paper provides estimates of the impact of higher education qualifications on the earnings of graduates in the UK by subject studied. The authors use data from the recent UK Labour Force Surveys which provide a sufficiently large sample to consider the effects of the subject studied, class of first...

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  • White Papers // Mar 2010

    The (Hidden) Financial Flows Of Terrorist And Organized Crime Organizations: A Literature Review And Some Preliminary Empirical Results

    The financial means of international terror and organized crime organizations are analyzed. First, some short remarks about the organization of international terror organizations are made. Second and in a much more detailed way a literature review is provided about the financing of terrorist and organized crime organizations, their sources and...

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  • White Papers // Jun 2011

    A Multi-Method Approach To Identifying Norms And Normative Expectations Within A Corporate Hierarchy: Evidence From The Financial Services Industry

    This paper presents the results of a field study at a large financial services firm that combines multiple methods, including two economic experiments, to measure ethical norms and their behavioral correlates. Standard survey questions eliciting ethical evaluations of actions in on-the-job ethical dilemmas are transformed into a series of incentivized...

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  • White Papers // Nov 2009

    Labor Market Discrimination And Capital Investment: The Effects Of Fan Discrimination On Stadium Investment

    The authors investigate the possibility that labor market discrimination affects economic outcomes in the complementary capital market. Previous research contains sample theoretical justification, and empirical evidence, that discrimination affects wages and employment in labor markets. However, the effects of discrimination against minority labor on transactions in markets for other inputs...

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  • White Papers // Sep 2008

    Human Capital Investment With Competitive Labor Search

    The authors study human capital accumulation in an environment of competitive search. Given that unemployed workers can default on their education loans, skilled individuals with a larger debt burden prefer riskier but better paid careers than is socially desirable. A higher level of employment risk in turn depresses the skill...

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  • White Papers // Feb 2009

    An Innovation Index Based On Knowledge Capital Investment: Definition And Results For The UK Market Sector

    The authors propose an implementable innovation index, relate it to existing innovation definitions and show whole-economy and industry-specific results for the UK market sector, 2000-2005. Their innovation measure starts by observing that they could get more GDP without innovation by simply duplicating existing physical capital and labour (e.g. adding a...

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  • White Papers // Dec 2009

    A Note On Informality In The Labor Market

    This paper provides a detailed analysis of various dimensions of informality in the Mexican labor market. To understand the nature of informality in terms of regulations and compliance, the legalistic view, and in terms of productivity view of the labor market this paper makes an empirical contribution to the debate...

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  • White Papers // May 2008

    Do Employment Subsidies Work? Evidence From Regionally Targeted Subsidies In Turkey

    This paper studies the effects on registered employment, earnings, and number of registered establishments of two employment subsidy schemes in Turkey. The authors implement a difference-in-differences methodology to construct appropriate counterfactuals for the covered provinces. Their findings suggest that both subsidy programs did lead to significant net increases in registered...

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  • White Papers // Sep 2009

    Substitution Effects In Parental Investments

    The paper estimates how parents adjust bride-prices and land divisions to compensate their sons for differences in their schooling investments in rural China. The main estimate implies that when a son receives one yuan less in schooling investment than his brother, he will obtain 0.7 yuan more in observable marital...

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  • White Papers // Nov 2009

    Repayment Versus Investment Conditions And Exclusivity In Lending Contracts

    Lenders condition future loans on some index of past performance. Typically, banks condition future loans on repayments of earlier obligations whilst international organizations (official lenders) condition future loans on the implementation of some policy action ('Investment'). The authors build an agency model that accounts for these tendencies. The optimal conditionality...

    Provided By Institute for the Study of Labor

  • White Papers // Jul 2009

    Labor Turnover Costs, Workers' Heterogeneity, And Optimal Monetary Policy

    The authors study the design of optimal monetary policy in a New Keynesian model with labor turnover costs in which wages are set according to a right to manage bargaining where the firms' counterpart is given by currently employed workers. Their model captures well the salient features of European labor...

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  • White Papers // Jul 2009

    Demand Side Analysis Of Microlending Markets In Germany

    In developing and transition economies, microlending has become an effective instrument for providing micro businesses with the necessary financial resources to launch operations. In the industrialized countries, with their highly developed banking systems, however, there has been ongoing debate on the question of whether an uncovered demand for microlending services...

    Provided By Institute for the Study of Labor

  • White Papers // Feb 2010

    Mortgage Finance In Central And Eastern Europe: Opportunity Or Burden?

    Household credit, especially for mortgages, has doubled over the past years in the new European Union member countries, raising concerns about the economic and social consequences of household indebtedness in the event of a macroeconomic crisis. Using household survey data for 2005, 2006, and 2007 for both old and new...

    Provided By Institute for the Study of Labor

  • White Papers // May 2011

    The Value Of Business Networks In Emerging Economies: An Analysis Of Firms' External Financing Opportunities

    The paper argues that networked firms are likely to have an advantage in securing external finance in countries with weak legal and judicial institutions since it helps financial institutions to minimize the underlying agency costs of lending. An analysis of recent BEEPS data from fifteen Central and Eastern European (CEE)...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2008

    Management Economics In A Large Retail Organization

    The authors study the impact of and reward to middle management ability using data from 245 stores of a nationwide retailer. The company scores six broad areas of management practice, the most important of which turns out to be "Commercial awareness", where able managers raise labour productivity by 17% compared...

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  • White Papers // Sep 2010

    Risk Management Among The Poor: The Case Of Microfinancial Services

    This paper argues that the level of financial services provision determines the risk management strategies among the poor. The paper estimates the determinants of the household's use of one, two or all three types of microfinancial services applying ordered probit models and additionally probit models for combinations of them. By...

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  • White Papers // May 2009

    Present-Biased Preferences And Credit Card Borrowing

    Some individuals borrow extensively on their credit cards. This paper tests whether present biased time preferences correlate with credit card borrowing. In a field study, the authors elicit individual time preferences with incentivized choice experiments, and match resulting time preference measures to individual credit reports and annual tax returns. The...

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  • White Papers // Mar 2010

    Gambling And The Use Of Credit: An Individual And Household Level Analysis

    The authors explore the relationship between gambling and other forms of risk-taking behaviour, i.e. exposure to debt and the use of credit, at the individual and household level using representative pooled cross-section data drawn from the UK Expenditure and Food Surveys (EFS), 2001 to 2007. Gambling and the use of...

    Provided By Institute for the Study of Labor

  • White Papers // Oct 2008

    Are Women More Credit Constrained? Experimental Evidence On Gender And Microenterprise Returns

    In a recent randomized experiment the authors found mean returns to capital of between 5 and 6 percent per month in Sri Lankan microenterprises, much higher than market interest rates. But returns were found to be much higher among men than among women, and indeed were not different from zero...

    Provided By Institute for the Study of Labor

  • White Papers // May 2010

    Who Benefits From The Earned Income Tax Credit? Incidence Among Recipients, Coworkers And Firms

    How are hourly wages affected by the Earned Income Tax Credit? Using variation in state EITC supplements, the author finds that a 10 percent increase in the generosity of the EITC is associated with a 5 percent fall in the wages of high school dropouts and a 2 percent fall...

    Provided By Institute for the Study of Labor

  • White Papers // Aug 2009

    Reputation And Credit Market Formation: How Relational Incentives And Legal Contract Enforcement Interact

    The evidence suggests that relational contracting and legal rules play an important role in credit markets but on the basis of the prevailing field data it is difficult to pin down their causal impact. Here the authors show experimentally that relational incentives are a powerful causal determinant for the existence...

    Provided By Institute for the Study of Labor

  • White Papers // Dec 2009

    Financial Dependence, Formal Credit, And Informal Jobs: New Evidence From Brazilian Household Data

    This paper examines a much overlooked link between credit markets and formalization: since access to bank credit typically requires compliance with tax and employment legislation, firms are more likely to incur such formalization costs once bank credit is more widely available at lower cost; if so, well-functioning credit markets help...

    Provided By Institute for the Study of Labor