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  • ddc:330  (145)
  • Bonn: Institute for the Study of Labor (IZA)  (145)
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  • 1
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2015-05-22
    Description: Natural and agricultural resources for which there is a substantial black market, such as coca, opium, and diamonds, appear especially likely to be exploited by the parties to a civil conflict. Even legally traded commodities such as oil and timber have been linked to civil war. On the other hand, these resources may also provide one of the few reliable sources of income in the countryside. In this paper, we study the economic and social consequences of a major exogenous shift in the production of one such resource coca paste into Colombia, where most coca leaf is now harvested. Our analysis shows that this shift generated only modest economic gains in rural areas, primarily in the form of increased self-employment earnings and increased labor supply by teenage boys. The results also suggest that the rural areas which saw accelerated coca production subsequently became more violent, while urban areas were affected little. The acceleration in violence is greater in departments (provinces) where there was a pre-coca guerilla presence. Taken together, these findings are consistent with the view that the Colombian civil conflict is fueled by the financial opportunities that coca provides, and that the consequent rent-seeking activity by combatants limits the economic gains from coca cultivation.
    Keywords: ddc:330 ; Koka ; Ländliches Einkommen ; Ländliche Entwicklung ; Bürgerkrieg ; Kolumbien
    Language: English
    Type: doc-type:workingPaper
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  • 2
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2018-11-15
    Description: We estimate the effect of immigrant flows on native employment in Western Europe, and then ask whether the employment consequences of immigration vary with institutions that affect labor market flexibility. Reduced flexibility may protect natives from immigrant competition in the near term, but our theoretical framework suggests that reduced flexibility is likely to increase the negative impact of immigration on equilibrium employment. In models without interactions, OLS estimates for a panel of European countries in the 1980s and 1990s show small, mostly negative immigration effects. To reduce bias from the possible endogeneity of immigration flows, we use the fact that many immigrants arriving after 1991 were refugees from the Balkan wars. An IV strategy based on variation in the number of immigrants from former Yugoslavia generates larger though mostly insignificant negative estimates. We then estimate models allowing interactions between the employment response to immigration and institutional characteristics including business entry costs. These results, limited to the sample of native men, generally suggest that reduced flexibility increases the negative impact of immigration. Many of the estimated interaction terms are significant, and imply a significant negative effect on employment in countries with restrictive institutions.
    Keywords: J23 ; J61 ; O52 ; ddc:330 ; Immigrant absorption ; European unemployment ; labor market flexibility ; entry costs ; Einwanderung ; Beschäftigungseffekt ; Arbeitsmarkt ; Arbeitsmarktflexibilisierung ; EU-Staaten
    Language: English
    Type: doc-type:workingPaper
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  • 3
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2016-08-27
    Description: In an effort to increase booster seat use among children, the National Highway Traffic Safety Administration is encouraging state legislators to promote stricter booster seat laws, yet there is a paucity of information on booster seat efficacy relative to other forms of restraint. Using data from the Fatality Analysis Reporting System for the period 2008-2014 and the sample selection correction proposed by Levitt and Porter (2001), the current study examines the effectiveness of booster seats relative to child safety seats and adult seat belts. For children 6 to 8 years of age, we find that booster seats are more than twice as effective as child safety seats and over 30 percent more effective than standard seat belts at decreasing the likelihood of fatality in a motor vehicle accident. For children 2 to 5 years of age, all three forms of restraint appear equally effective.
    Keywords: I12 ; I18 ; ddc:330 ; booster seats ; child safety seats ; traffic fatalities
    Language: English
    Type: doc-type:workingPaper
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  • 4
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2019-03-13
    Description: This article studies the long run patterns and explanations of wage mobility as a characteristic of regional labor markets. Using German administrative data we describe wage mobility since 1975 in West and since 1992 in East Germany. Wage mobility declined substantially in East Germany in the 1990s and moderately in East and West Germany since the late 1990s. Therefore, wage mobility does not balance recent increases in cross-sectional wage inequality. We apply RIF (recentered influence function) regression based decompositions to measure the role of potential explanatory factors behind these mobility changes. Increasing job stability is an important factor associated with the East German mobility decline.
    Keywords: J30 ; J31 ; J60 ; D63 ; ddc:330 ; wage mobility ; earnings mobility ; income mobility ; Germany ; East Germany ; inequality ; transition matrix ; Shorrocks index ; administrative data ; Lohnstruktur ; Einkommen ; Soziale Mobilität ; Einkommensverteilung ; Alte Bundesländer ; Neue Bundesländer ; Deutschland
    Language: English
    Type: doc-type:workingPaper
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  • 5
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2019-03-13
    Description: This paper estimates sibling correlations in cognitive and non-cognitive skills to evaluate the importance of family background for skill formation. Based on a large representative German dataset including IQ test scores and measures of non-cognitive skills, a restricted maximum likelihood model indicates a strong relationship between family background and skill formation. Sibling correlations in non-cognitive skills range from 0.22 to 0.46; therefore, at least one-fifth of the variance in these skills results from shared sibling-related factors. Sibling correlations in cognitive skills are higher than 0.50; therefore, more than half of the inequality in cognition can be explained by shared family background. Comparing these findings with those in the intergenerational skill transmission literature suggests that intergenerational correlations capture only part of the influence of family on children's cognitive and non-cognitive skills, as confirmed by decomposition analyses and in line with previous findings on educational and income mobility.
    Keywords: J24 ; J62 ; ddc:330 ; sibling correlations ; family background ; non-cognitive skills ; cognitive skills ; intergenerational mobility
    Language: English
    Type: doc-type:workingPaper
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  • 6
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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
    Language: English
    Type: doc-type:workingPaper
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  • 7
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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
    Language: English
    Type: doc-type:workingPaper
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  • 8
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2015-05-22
    Description: A longstanding question in the economics of the family is the relationship between sibship size and subsequent human capital formation and economic welfare. If there is a causal quantity-quality tradeoff, then policies that discourage large families should lead to increased human capital, higher earnings, and, at the macro level, promote economic development. Ordinary least squares regression estimates and a large theoretical literature suggest that this is indeed the case. This paper presents new evidence on the child-quantity/child-quality trade-off. Our empirical strategy exploits exogenous variation in family size due to twin births and preferences for a mixed sibling-sex composition, as well as ethnic differences in the effects of these variables and preferences for male births in some ethnic groups. We use these sources of variation to look at the causal effect of family size on completed educational attainment, fertility, and earnings. For the purposes of this analysis, we constructed a unique matched data set linking Israeli Census data with information on the demographic structure of families drawn from a population registry. Our results show no evidence of a quantity-quality trade-off, though some estimates from one subsample suggest that first-born girls from large families marry sooner.
    Keywords: J13 ; J24 ; O12 ; ddc:330 ; fertility ; quantity-quality trade-offs ; instrumental variables ; Familienplanung ; Kinder ; Bildungsniveau ; Bildungsinvestition ; Humankapital ; Wohlfahrtseffekt ; Einkommensverteilung ; Statistische Methode
    Language: English
    Type: doc-type:workingPaper
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  • 9
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2015-05-22
    Description: Using Michigan Panel Study of Income Dynamics (PSID) data, we study the slowdown in the convergence of female and male wages in the 1990s compared to the 1980s. We find that changes in human capital did not contribute to the slowdown, since women's relative human capital improved comparably in the two decades. Occupational upgrading and deunionization had a larger positive effect on women's relative wages in the 1980s, explaining a portion of the slower 1990s convergence. However, the largest factor was that the unexplained gender wage gap fell much faster in the 1980s than the 1990s. Our evidence suggests that changes in labor force selectivity, changes in gender differences in unmeasured characteristics and in labor market discrimination, as well as changes in the favorableness of demand shifts each may have contributed to the slowing convergence of the unexplained gender pay gap.
    Keywords: J16 ; J31 ; ddc:330 ; gender pay gap ; wage differentials ; Lohnstruktur ; Geschlecht ; USA
    Language: English
    Type: doc-type:workingPaper
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  • 10
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    Bonn: Institute for the Study of Labor (IZA)
    Publication Date: 2015-05-22
    Description: It has been known for centuries that the rich and famous have longer lives than the poor and ordinary. Causality, however, remains trenchantly debated. The ideal experiment would be one in which status and money could somehow be dropped upon a sub-sample of individuals while those in a control group received neither. This paper attempts to formulate a test in that spirit. It collects 19th-century birth data on science Nobel Prize winners and nominees. Using a variety of corrections for potential biases, the paper concludes that winning the Nobel Prize, rather than merely being nominated, is associated with between 1 and 2 years of extra longevity. Greater wealth, as measured by the real value of the Prize, does not seem to affect lifespan.
    Keywords: ddc:330 ; Gesundheit ; Sterblichkeit ; Sozialer Status ; Reichtum ; Nobelpreis ; Wissenschaftler ; Schätzung ; Welt
    Language: English
    Type: doc-type:workingPaper
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