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  • Bonn: Institute for the Study of Labor (IZA)  (23)
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  • 1
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2019-03-13
    Description: This paper explores the relationship between two well-established concepts of measuring individual well-being: the concept of happiness, i.e. self-reported level of satisfaction with income and life, and relative deprivation/satisfaction, i.e. the gaps between the individual's income and the incomes of all individuals richer/poorer than him. Operationalizing both concepts using micro panel data from the German Socio-Economic Panel (SOEP), we provide empirical evidence for subjective well-being depending more on relative satisfaction than on absolute levels of income. This finding holds even after controlling for other influential factors in a multivariate setting.
    Keywords: D31 ; D63 ; I31 ; ddc:330 ; relative deprivation ; satisfaction ; subjective well-being ; SOEP ; Lebensqualität ; Einkommensverteilung ; Schätzung ; Deutschland
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 2
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2019-03-13
    Description: This paper explores the determinants of individual well-being as measured by self-reported levels of satisfaction with income. Making full use of the panel data nature of the German Socio-Economic Panel, we provide empirical evidence for well-being depending on absolute and on relative levels of income in a dynamic framework. This finding holds after controlling for other influential factors in a multivariate setting. The main novelty of the paper is the consideration of dynamic aspects: individual's own history as well as the relative income performance with respect to the others living in the society under analysis do play a major role in the assessment of well-being.
    Keywords: ddc:330 ; Lebenszufriedenheit ; Nutzen ; Einkommensverteilung ; Soziale Mobilität ; Schätzung ; Deutschland
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 3
    Publication Date: 2015-10-24
    Description: This paper contributes to the debate on the design of a centralised fiscal tool absorbing country-specific negative shocks in the euro area. Based on theoretical insights, it identifies the broad characteristics that a shock absorber based on unemployment should have in order to be incentive-compatible and politically feasible. It then derives empirically the combination of activation thresholds, experience rating, eligibility criteria, and benefit generosity which define the systems offering the highest stabilisation for given levels of redistribution, accounting for the large variation in benefit take-up rates across European countries. The analysis suggests that the shock absorber should: i) give rise to macro cross-national transfers, mimicking those that would be generated by a notional euro-wide unemployment benefit scheme of minimal coverage and generosity; ii) be activated by a trigger; and iii) feature partial experience rating. The simulation results, confirmed by robustness checks, show that even systems that do not redistribute resources between countries can have a non-negligible stabilisation impact in the medium run. Low benefit take-up rates in Southern Europe substantially reduce the stabilisation properties and the size of the scheme.
    Keywords: E6 ; J65 ; H53 ; ddc:330 ; unemployment benefits ; absorption of macroeconomic shocks ; fiscal union
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 4
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2015-12-15
    Description: Adopting a simple Phillips curve framework, we show that different labour market institutions across EU countries are associated with significant differences in the response of inflation to unemployment and exchange rate shocks. More wage coordination and higher union density flatten the Phillips curve and increase the inflation response to the real exchange rate, i.e. the exchange rate pass-through. In addition, using a new approach to the classification of goods and services as "traded" or "non-traded", we show that both these institutional effects are significantly stronger for the more exposed (traded) sector.
    Keywords: E31 ; J50 ; J60 ; ddc:330 ; sectoral inflation differentials ; inflation determinants ; labour market institutions ; EU 27
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 5
    Publication Date: 2015-05-22
    Description: We consider the estimation of a semiparametric location-scale model subject to endogenous selection, in the absence of an instrument or a large support regressor. Identification relies on the independence between the covariates and selection, for arbitrarily large values of the outcome. In this context, we propose a simple estimator, which combines extremal quantile regressions with minimum distance. We establish the asymptotic normality of this estimator by extending previous results on extremal quantile regressions to allow for selection. Finally, we apply our method to estimate the black-white wage gap among males from the NLSY79 and NLSY97. We find that premarket factors such as AFQT and family background characteristics play a key role in explaining the level and evolution of the black-white wage gap.
    Keywords: C21 ; C24 ; J31 ; ddc:330 ; sample selection models ; extremal quantile regressions ; black-white wage gap
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 6
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2015-05-22
    Description: 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 54,000 individuals living in Germany from 1985 to 2012 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 cause of poverty entry which explains the overall lack of poverty adaptation.
    Keywords: I31 ; D60 ; ddc:330 ; income ; poverty ; subjective well-being ; adaptation ; SOEP
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 7
    Publication Date: 2015-05-22
    Description: This paper investigates the determinants of the service sector employment share in the EU-15, for the aggregate service sector, four sub-sectors and twelve service sector branches. Recently, both Europe and the US have experienced an increase in the share of service-related jobs in total employment. Although converging in all European countries, a significant gap in the share of service jobs in Europe relative to the US persists. Understanding the main factors behind this gap is key to achieving higher employment levels in Europe. This paper focuses on the role of barriers in the EU-15 which may have hindered its ability to absorb labour supply and therefore to adjust efficiently to the sectoral reallocation of labour. We find that a crucial role in this process has been played by the institutional framework affecting flexibility in the labour market and by the mismatch between workers' skills and job vacancies.
    Keywords: E24 ; J21 ; J23 ; J24 ; L80 ; ddc:330 ; services ; sectoral adjustment ; employment share ; Europe ; US ; institutions in the labour and product market ; Dienstleistungssektor ; Beschäftigungseffekt ; Institutionelle Infrastruktur ; Institutioneller Wandel ; EU-Staaten ; USA
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 8
    Publication Date: 2015-05-22
    Description: This paper considers the semiparametric identification of endogenous and exogenous peer effects based on group size variation. We show that Lee (2006)'s linear-in-means model is generically identified, even when all members of the group are not observed. While unnecessary in general, homoskedasticity may be required in special cases to recover all parameters. Extensions to asymmetric responses to peers and binary outcomes are also considered. Once more, most parameters are semiparametrically identified under weak conditions. However, recovering all of them requires more stringent assumptions. Eventually, we bring theoretical evidence that the model is more adapted to small groups
    Keywords: ddc:330 ; Gruppentheorie ; Gruppentheorie ; Soziale Gruppe ; Soziale Beziehungen ; Verhalten
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 9
    Publication Date: 2015-10-24
    Description: Italy is not immune from the long term process towards greater bargaining decentralization under way in Western Europe. The article surveys the main actions, either defined by social partners or by government intervention, which have attempted to encourage this process in recent years, without altering the relative importance of different levels of bargaining. Empirical evidence shows that firm-level bargaining has been associated with innovative managerial practices, but also that a significant share of firms would be willing to sign contracts that would grant higher wages or preserve occupational levels in order to obtain higher flexibility in the use of the workforce. From an institutional standpoint, the main obstacles preventing the adoption of such deals are: i) unresolved issues related to the measurement of trade unions' weight at the national level and to the coexistence of two different workers' representation systems, ii) limits to contract enforcement, iii) limited scope for action of second level bargaining in determining both wages and work organization. The effectiveness of tax breaks encouraging a closer link between wage and productivity at the firm level has been undermined by poor monitoring and frequent changes to the eligibility criteria.
    Keywords: J31 ; J41 ; J51 ; J53 ; ddc:330 ; industrial relations ; labour law ; salary structure
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 10
    Publication Date: 2015-05-22
    Description: We use data from the European Community Household Panel to investigate the impact of obesity on wages in 9 European countries, ranging from Ireland to Spain. We find that the common impact of obesity on wages is negative and statistically significant, independently of gender. Given the nature of European labor markets, however, we believe that a common impact is overly restrictive. When we allow this impact to vary across countries, we find a negative relationship between the BMI and wages in the countries of the European olive belt and a positive relationship in the countries of the beer belt. We speculate that such difference could be driven by the interaction between the weather, BMI and individual (unobserved) productivity.
    Keywords: I12 ; J3 ; ddc:330 ; wages ; body mass index ; Europe
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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