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Maternal Labour Supply and School Enrolment Laws: Empirical Evidence from Brazilian Primary School Reforms The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2024-03-16 Alessandro Cusimano, Diego da Silva Rodrigues, Ian Jackson
The relationship between childcare provision and mothers’ labour supply decisions is highly debated due to the potential reverse causality and resultant empirical challenges. We contribute meaningfully to this debate by discussing the effects from a reform on Brazil’s primary education system on maternal labour supply. This reform, which advanced the compulsory children’s enrolment in primary education
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The Trouble with Take-Up The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2024-03-08 Karina Doorley, Theano Kakoulidou
Take-up of social welfare is key to its success in alleviating poverty. For a variety of reasons, including stigma, transaction costs and information asymmetry, take-up of welfare benefits is imperfect. This research note discusses the issue of take-up of social welfare and its measurement. We explore the difficulties of estimating welfare take-up, using the example of the Irish Working Family Payment
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Keeping Mobile Firms at Home: The Role of Public Enterprise The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2024-03-07 Kenneth Fjell, John S. Heywood, Debashis Pal
We show that the presence of a public firm can deter private firms from relocating to foreign countries in response to high domestic taxation. We also examine partially privatized public firms showing that the higher the exogenous domestic profit tax, the larger the public ownership share needs to be to deter private firm mobility. We illustrate that deterring mobility increases domestic welfare.
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Pricing Personalised Drugs: Comparing Indication Value Based Prices with Performance Based Schemes The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2024-03-07 Laura Levaggi, Rosella Levaggi
Price strategies are essential to balance timely access to drugs with expenditure containment. This is especially true for personalised drugs, whose effectiveness is heterogeneous across patients. For these drugs, some authors suggest to use Indication Based Price schemes (IBPs), while others argue that Performance-Based managed entry Agreements (PBAs) are more appropriate. We develop a theoretical
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Industrial Technology Boundary, Product Quality Choice, and Market Segmentation The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2024-02-14 Haoxing Ma
This paper studies how firms in a duopoly market choose product qualities when facing two types of consumers: high-end consumers value quality more than low-end consumers. Firms’ highest possible quality (referred to as industrial technology boundary) is determined by an industrial common technology. I consider price competition and show that in equilibrium, an increase in the technology boundary can
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Pay as You Throw Threshold Tariff: Evidence on the Incentive to Recycle The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2024-02-10 Leonzio Rizzo, Riccardo Secomandi
We study the impact of the introduction of a pay as you throw tariff in Ferrara which presented a low status-quo level of waste recycling. We find that it increased the waste recycling share by 40 % points and decreased the total waste per capita by 30 % points. Our dataset allows the split of the overall effect on waste recycling, finding that 63 % of recycling is due to organic material and 37 %
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Human Capital Investments and Family Size in Italy: IV Estimates Using Twin Births as an Instrument The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2024-02-10 Michela Ponzo, Vincenzo Scoppa
Human capital investments at an early age appear crucial for individual outcomes. Family size might affect these investments influencing parental time and economic resources invested in children’s education. This feature is related to the children quantity-quality trade-off proposed by Becker that has been investigated only for a few countries because of data limitations. We investigate this issue
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Close But Not Too Close? Optimal Copycat Strategies in the Light of Negative Publicity by the Original Product The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2024-01-17 Joachim Grosser, Hendrik Sonnabend, Bastian Westbrock
This paper contributes to the understanding of how brand scandals related to a brand leader’s product affect the follower firm’s choice between copycatting and independent product development. In a model of vertical product differentiation, we show that it is optimal for the copycatter to follow a ‘safe distance’ strategy which guarantees a certain degree of protection against the negative spillovers
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Tradeoffs in the Power of Regulatory Regimes The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2024-01-16 Dennis L. Weisman
Performance-based regulation (PBR) has recently experienced increased popularity in North America and Europe. The genesis for this renewed interest in PBR is the potential to strengthen the regulated firm’s incentives for efficiency relative to traditional rate-of-return regulation. The strength of these incentives is referred to as the power of the regulatory regime (PRR). The PRR depends on the share
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Does Excellence Pay Off? Evidence from the Italian Wine Market The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2024-01-13 Stefano Castriota, Alessandro Fedele
Considering the Italian wine market, we investigate the relationship between product quality, on the one hand, and profits and profitability, on the other hand. Using data from 1052 wineries over the period 2006–2015, we find robust evidence of a positive relationship between product quality, measured by the wineries’ reputation for quality, and profits, measured by the Earnings Before Interest, Depreciation
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Active Labour Market Policies: What Works for the Long-Term Unemployed? The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-12-13 Rainer Eppel, Ulrike Huemer, Helmut Mahringer, Lukas Schmoigl
There is still a lack of knowledge on how to effectively help the long-term unemployed into employment. We evaluate a wide range of active labour market policies for this target group, using a dynamic matching approach. Measures vary considerably in the extent to which they improve labour market prospects. Human capital-intensive training programs that substantially enhance vocational skills and employment
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Does Abolishing a Copayment Increase Doctor Visits? A Comparative Case Study The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-12-09 Tapio Haaga, Petri Böckerman, Mika Kortelainen, Janne Tukiainen
Insurance coverage increases health care consumption, but less is known whether moderate copayments affect adults’ primary care utilization in a system characterized by gatekeeping. We analyze whether abolishing a 14-euro copayment for visits to general practitioners (GP) in Helsinki, the capital of Finland, increased the number of GP visits among adults and especially among low-income individuals
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An Experimental Analysis of Patient Dumping Under Different Payment Systems The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-12-09 Massimo Finocchiaro Castro, Domenico Lisi, Domenica Romeo
Physicians behave differently depending on the payment systems, giving rise to several problems such as patient dumping in which patients are refused because of economic or liability reasons. This paper tests whether and to which extent the adoption of either fee-for-service or Salary system induces physicians to practice patient dumping. Through the combination of an artefactual field experiment and
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Lobbying for Tariff Protection, International Technology Licensing and Consumer Surplus The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-11-17 Yao Liu, Arijit Mukherjee
It is well known that the protectionist view for tariff protection can be justified if the tariff induced international technology licensing benefits the consumers. We show that this view may not hold true if the domestic firm lobbies for tariff protection. If lobbying determines tariff following the “tariff-function formation” approach, lobbying reduces consumer surplus by reducing the incentive for
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The New Form Agency Problem: Cooperation and Circular Agency The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-11-06 Chun-Hung Chen, Kuan-Wei Chen, Yu-Fan Chen, Chia-Yin Lin
This study explores cooperation in the circular agency problem. In circular agency, an agent has weak power in the face of its principal. This research explores a cooperation mechanism in which three participants simultaneously have the identity of principal and agent, in order to illuminate the power struggle between the board of directors, the external shareholder, and the manager of a company. We
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Data-Driven Health Innovation and Privacy Regulation The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-10-31 Chiara Conti, Anna D’Annunzio, Pierfrancesco Reverberi
Data-driven health innovation may lead to develop targeted treatments using health data. We consider privacy-sensitive patients who may decide to share personal health data if compensated. Each patient does not internalize the impact of sharing data on drug innovation. We show that investment incentives in targeted treatments are too weak as long as such innovation has a public good nature so that
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Estimating the Socio-Economic Status of the U.S. Capitol Insurrectionists The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-10-28 John Komlos
The income of those who attacked the U.S. Congress on January 6, 2021 and were subsequently arrested is estimated for the first time using the annual per-capita income in the neighborhood of their residence as a proxy measure. Contrary to common wisdom, we find that two groups were conspicuously underrepresented from this subset of the insurrectionists (N = 933): the utterly poor (whose estimated per-
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The Effect of Elevating the Supplemental Poverty Measure on Government Program Eligibility and Spending The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-10-28 Kevin Corinth
A recent National Academy of Sciences report recommends elevating the Supplemental Poverty Measure (SPM) to the “nation’s headline poverty statistic.” I project how making the SPM the official poverty measure would affect eligibility for government assistance programs whose eligibility thresholds are tied to the official poverty line. Making the SPM the official poverty measure would increase the poverty
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The Effect of Soft Skills on Academic Outcomes The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-10-23 Shao-Hsun Keng
This paper uses administrative data and a soft skill index integrating seven personality traits to examine the relationship between soft skills and academic outcomes. I exploit the timing of soft skill assessment and study the interaction between soft and cognitive skills in education production. The results show that soft skills are positively associated with academic outcomes. Soft and cognitive
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Gender Differences and Firm Performance: Evidence from India The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-10-13 Aditi Roy
Despite a growing literature investigating the effect of gender diversity of CEOs and firm performance, the answer is still unclear. This study estimates the effect of gender differences in ownership and Leadership (CEOs) on firm performance simultaneously. The paper exploits a unique data from more than 9000 Indian firms by using fixed effects and propensity score matching techniques. Findings reveal
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Early Childhood Education Attendance and Students’ Later Outcomes in Europe The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-10-09 Daniela Del Boca, Chiara Monfardini, Sarah Grace See
The importance of investments in early childhood education (ECE) has been widely documented in the literature. Among the benefits, particularly for children from disadvantaged backgrounds, is its potential to mitigate educational inequality. However, some evidence also suggests that the positive effects of ECE on later outcomes tend to dissipate over time, leaving children who attended such programmes
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Search and Matching in Political Corruption The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-10-07 Maurizio Lisciandra, Antonio Miralles Asensio, Fabio Monteforte
We develop a search and matching model to analyze the dynamics of the political corruption market. This model serves as a framework for evaluating the effectiveness of a set of anti-corruption policies. Contrary to expectations, conventional policies such as enhancing penalties or allocating greater resources to criminal investigations do not universally emerge as the most effective tools. For mitigating
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Relational Voluntary Environmental Agreements with Unverifiable Emissions The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-09-29 Berardino Cesi, Alessio D’Amato
Environmental regulation and pollution control may clash against the presence of unverifiable tasks, like source-specific emissions. To tackle this issue, we reshape a voluntary agreement instrument, already available in the existing literature, from a dynamic perspective by means of a relational contracting approach. We define a Relational Voluntary Environmental Agreement (RVEA) in an N firms symmetric
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Pension Reform and Improved Employment Protection: Effects on Older Men’s Employment Outcomes The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-09-28 Shinya Kajitani, Mari Kan
This study examines the impacts of demand-side (the improved employment protection law) and supply-side (pension reform) government interventions on older male workers’ employment outcomes in Japan. To identify the effects of interventions implemented concurrently, we employ a difference-in-difference-in-differences (DDD) approach with variation in the bindingness of the revision of employment protection
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Variants of Gender Bias and Sexual-Orientation Discrimination in Career Development The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-09-27 Nicholas Litsardopoulos, George Saridakis, Andrew E. Clark
We use a nationally-representative dataset that includes a large sample of sexual-orientation minorities to investigate gender bias and sexual-orientation discrimination in career progression. Our results are consistent with persistent gender bias findings and non-heterosexual identity-based employment discrimination. Our findings are consistent with previous work noting that protective legislation
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The Long-Term Effects of Unilateral Divorce Laws on the Noncognitive Skill of Conscientiousness The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-09-21 Iryna Hayduk, Kristin J. Kleinjans
This paper provides the first causal evidence of the effect of a change in divorce laws on noncognitive skills in adulthood. We exploit state-cohort variation in the adoption of unilateral divorce laws in the U.S. to assess whether children exposed to this law have different noncognitive skills in adulthood compared to those never exposed or exposed as adults. Using data from the National Survey of
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Pre-Exposure Prophylaxis and HIV Incidence The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-09-14 Samuel Mann
Pre-Exposure Prophylaxis (PrEP) is a drug that, as demonstrated in clinical trials, when taken makes the user virtually immune to HIV. This has led to numerous countries making the drug available, but little is known about the population level effects of PrEP. Using panel data from 40 European countries I study the effect of countries adopting WHO recommendations to make PrEP available to citizens
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Lab versus Online Experiments: Gender Differences The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-09-07 Beatrice Braut
Comparing the behaviour of subjects randomly allocated to perform tasks and tests online or in the lab, I find that the setting influences males’ and females’ behaviour differently. Males are more selfish in the online setting than in the lab, while females are more risk-averse when they answer online compared to the lab. Interestingly, performance in math is influenced by the setting for females:
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The Moderating Role of Decisiveness in the Attraction Effect The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-09-06 Guy Barokas, Eyal Gamliel
This study examines decisiveness as a potential moderator of the attraction effect. In an online experiment, we find that even though decisiveness moderates the attraction effect, it also moderates the preference reversal in the absence of a decoy. This suggests that the moderating role of decisiveness in the attraction effect lies, at least partially, in moderating choice reversals unrelated to the
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Reverses in Gender Salary Gaps Among STEM Faculty: Evidence from Mean and Quantile Decompositions The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-08-31 Virginia Wilcox, Md. Abdur Rahman Forhad
This research examines the gender salary gap in STEM and nonSTEM disciplines at a public research university. We estimate earnings regressions for female and White male faculty members as a whole as well as for those working in STEM departments. Controlling for productive characteristics and field salary differentials, we perform mean and quantile decomposition analyses to identify potential salary
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Downstream Profit Effects of Horizontal Mergers: Horn & Wolinsky and von Ungern-Sternberg Revisited The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-08-31 W. Benedikt Schmal
Mergers between previously contending firms are a permanent challenge for policymaking as they potentially harm competition. The core incentive to merge is the prospect of higher joint profits of the previously independent firms after the merger. We discuss and compare the core assumptions of Horn and Wolinsky (1988) and von Ungern-Sternberg (1996) that lead to contrary results regarding the attractiveness
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The Impact of the CARES Stimulus Payments on COVID-19 Transmission and Mortality The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-08-21 Alicia Atwood, Caitlyn Fleming
In this paper, we study the impact of the Coronavirus Aid, Relief, and Economic Security (CARES) Act economic impact payments to individuals on the spread of COVID-19 and subsequent mortality. There is a large economic literature linking income shocks and mortality. Using an event study approach and controlling for time-varying stay-at-home directives, we find no statistically significant change in
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Don’t Stop Me Now: Cross-Border Commuting in the Aftermath of Schengen The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-07-24 Angela Parenti, Cristina Tealdi
A Single European Labour Market has not been achieved yet, despite strong efforts in promoting cross-country labour mobility. In this paper, we assess the effectiveness of one of the most important policies implemented to reach this goal: the Schengen Agreement. Using data from the European Labour Force Survey, we show that the individual probability to become a cross-border commuter after the entrance
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Strategic Analysis of Petty Corruption with an Entrepreneur and Multiple Bureaucrats The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-07-11 Lin Hu, Mandar Oak
We consider a game of petty corruption between entrepreneurs and multiple bureaucrats. The potential value of the entrepreneur’s project is stochastic and private, and it can be realized only if the project is approved by all the bureaucrats. The bureaucrats simultaneously make take-it-or-leave-it demands of bribes in exchange for approving the project. The entrepreneur can either pay the required
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Labor Demand Responses to Changing Gas Prices The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-07-11 Mario Bossler, Alexander Moog, Thorsten Schank
In course of the current energy crisis, the consequences of increasing gas prices are heavily discussed. To date, however, there is no evidence of the impact of gas prices on the labor market. Using administrative employment data from 2012 to 2020, we find for manufacturing establishments a gas price elasticity of labor demand of −0.02, likely reflecting a scale effect. We also show that a rise in
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Environmental Policy in Vertical Markets with Downstream Pollution: Taxes Versus Standards The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-07-07 Yang-Ming Chang, Manaf Sellak
This paper examines the performance of two environmental regulation policies – emission taxes and absolute standards – in a vertical market where an upstream foreign monopolist sells a specific input to two downstream multiproduct firms that generate pollution in the domestic country. Specifically, we use a three-stage game to analyze and compare the two policies for regulating downstream pollution
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Nudging Pro-social Behavior in a Market Experiment with Carbon Offsets The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-07-01 David McEvoy, Todd L. Cherry, Tanga M. Mohr
This study uses controlled experiments to analyze the effectiveness of peer-comparison nudges to promote pro-social behavior. Participants make decisions as consumers in a simple posted-offer market (i.e. buyers are price takers) in which reducing consumption produces positive externalities through the purchase of carbon offsets. We analyze the effectiveness of the nudge under two common pricing schemes
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Public Subsidies and Cooperation in Research and Development. Evidence from the LAB The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-06-05 Antonio Acconcia, Sergio Beraldo, Carlo Capuano, Marco Stimolo
We implement an experimental design based on a duopoly game in order to analyse the impact of public subsidies on the willingness to cooperate in research and development (R&D) activities. We first implement six experimental markets by exogenously varying the level of knowledge spillovers (low or high) and the intensity of competition in the product market (low, intermediate, or high). We find that
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On the Social Desirability of Centralized Wage Setting when Firms are Run by Biased Managers The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-06-01 Nicola Meccheri
This paper compares the welfare outcomes obtained under alternative unionization regimes (decentralized vs. centralized wage setting) in a duopoly market in which shareholders delegate strategic decisions to biased (overconfident or underconfident) managers. In such a framework, the common tenet that consumer surplus and overall welfare are always higher under decentralized wage setting is completely
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Bridging the Gap: The Role of the Charity in Voluntary Public Good Provision The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-05-26 Stephanie Karol
This paper investigates how donors to food assistance charities respond to exogenous changes in recipients’ unmet needs. When food insecurity rises by one percentage point, the average food assistance charity increases fundraising by 0.9 %. Without this response, private contributions would have fallen by at least 0.2 %. These results are consistent with a model in which economic inequality simultaneously
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Unpacking the Financial Incentives in Health by Revisiting India’s “Safe Motherhood Program” The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-05-10 Susmita Baulia
This paper investigates India’s nationwide health reform to understand its various channels of effect. The reform entitled socio-economically backward mothers with cash transfer if they chose to give birth at public health institutions, and simultaneously employed ASHAs as a direct link between pregnant women and the public healthcare delivery system. Using variations in mothers’ eligibility and differential
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Occupational Licensing and Skills Mismatches Among Immigrants and Natives in the United States The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-05-05 Massimiliano Tani
This paper studies the effect of occupational licensing on the education-occupation mismatches and the logarithm of hourly wages of natives and immigrants in the United States using longitudinal data from the 2014 sample of the Survey of Income and Program Participation (SIPP). On average, licensing reduces the skills mismatch and raises hourly wages among natives but not among immigrants. Over time
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The Impact of Environmental Taxation on Wage Inequality in the Presence of Subsidizing Renewable Energy The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-03-31 Jiancai Pi, Yanwei Fan
This paper explores how environmental taxation affects wage inequality in the presence of subsidizing renewable energy. It is necessary to take both traditional dirty energy and renewable energy into account. Take the case where the renewable energy sector is more skill-intensive than the traditional energy sector as an example. If the final product sector is more skill-intensive than the whole energy
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The Competitive Foundations of Price Cap Regulation The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-03-29 Dennis L. Weisman
Price cap regulation (PCR) as commonly implemented closely approximates atomistic Cournot competition in terms of the pass-through of industry and firm-specific cost-reducing innovation when the invariance property holds. A key finding is that the aggregate pass-through of cost-reducing innovation under PCR exceeds that under Cournot, holding the number of firms constant. The welfare gains under PCR
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Unions and Automation Risk: Who Bears the Cost of Automation? The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-03-24 Changkeun Lee, Olivia Hye Kim
Automation creates winners and losers. By examining establishment-level panel data, we explore how labour unions affect labor adjustment associated with automation. Although automation can increase new hires of junior and unskilled production workers, the presence of labour unions neutralizes these effects. The results suggest that labour unions have incentives to protect incumbent workers negatively
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Food Consumption in Argentina: The Deaton-Paxson Puzzle Beyond Mean Effects The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-03-24 Lucía Echeverría, Jose Alberto Molina
Deaton, A., and C. Paxson (1998. “Economies of Scale, Household Size, and the Demand for Food.” Journal of Political Economy 106 (5): 897–930. doi: 10.1086/250035) found the opposite to what theory predicts: food share declines with household size, keeping household per capita expenditure constant. This paper aims to explore the relationship between food demand and household size beyond the conditional
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Recovery from the COVID-19 Recession: Uneven Effects among Young Workers? The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-03-20 Pinka Chatterji, Yue Li
In this paper, we examine the labor market recovery from the COVID-19 recession and test for effects of termination of pandemic unemployment insurance programs among 15–24-year-olds. We use data from the January 2016–October 2022 Current Population Survey. Using regression-based methods, we show that while 15–19-year-olds experienced a brisk, full recovery in labor market outcomes from the COVID-19
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Is There Racial Bias in the Enforcement of Primary Seat Belt Laws? Evidence from Veil of Darkness Tests The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-03-06 Ben Brewer
State mandatory seat belt laws have become stricter over time, allowing for a vehicle to be stopped solely for a suspected seat belt infraction. While effective in reducing traffic fatalities, this additional discretion may also come with the possibility of increased racial targeting. Using individual-level traffic stop data, I combine recent advances in the Veil-of-Darkness test with a difference-in-difference
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Is There a Business Cycle Effect on the Incidence of Dual Job Holding? The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-03-06 Francesco Renna, Ronald L. Oaxaca, Chung Choe
This paper examines the extent to which the incidence of dual job holding is cyclically sensitive in the context of hours constraints on a worker’s weekly labor supply to their main job. Random effects logit models of the probability of dual job holding are estimated separately for men and women for each of three mutually exclusive, hours-constrained regimes: overemployment, unconstrained hours, and
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Productivity, Innovation Spillovers, and Mergers: Evidence from a Panel of U.S. Firms The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-03-03 Mahdiyeh Entezarkheir, Anindya Sen
We investigate the impact of mergers and product innovation on labour productivity through a unique panel data set of roughly 2000 publicly traded U.S. manufacturing firms from 1980 to 2003. OLS estimates reveal that mergers interacted with citation-weighted patents are significantly correlated with increases in labour productivity. OLS and IV estimates of citation-weighted patent stocks with respect
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Trade Policies and FDI with an Endogenous Market Structure The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-02-22 Chih-Yi Hsu, Hong Hwang, Yan-Shu Lin, Cheng-Hau Peng
Given an endogenous market structure, this research investigates the effects of tariff and equivalent quota policies on foreign firms’ FDI decisions. Findings show that foreign firms have symmetric (asymmetric) decisions in terms of FDI versus export under a tariff (quota) policy. Furthermore, FDI is more likely to occur under the tariff than the quota regime, but the former is definitely more (less)
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Failing Young and Temporary Workers? The Impact of a Disruptive Crisis on a Dual Labour Market The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-02-17 Carolina Nunes, Bruno P. Carvalho, João Pereira dos Santos, Susana Peralta, José Tavares
We study the impact of the pandemic crisis using monthly data covering the universe of individuals registered as unemployed in mainland Portuguese municipalities, complemented with electronic payments, linked employer–employee data, and furlough records. Event study designs identify a sharp increase in unemployment, driven mostly by termination of temporary contracts, and a decrease in new job placements
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Optimal Imprisonment with General Enforcement of Law The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-02-15 Massimo D’Antoni, Tim Friehe, Avraham Tabbach
We study the optimal use of imprisonment when enforcement efforts are general (i.e. when the probability of detection is common for a range of acts). In contrast to the conventional wisdom that optimal imprisonment rises with the act’s harmfulness and is equal to the maximum level only for the most harmful acts, we show that – when the distribution of criminal benefits exhibits a standard monotone
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Immigration and Perceived Social Position. Insights from an Unintended Survey Experiment The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-02-15 Andrea Fazio, Erminia Florio
Using data from an involuntary survey experiment in Germany, we investigate whether priming people on immigration affects their self-perceived social standing. Our findings suggest that individuals who are administered a module concerning attitudes toward immigration perceive themselves as in a higher social position than would otherwise. Consistently with previous literature, we find that this effect
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The Changing Determinants of Juvenile Crime The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-01-30 Philippe Belley, Gonzalo Castex, Evgenia Dechter
Following decades of increasing crime rates in the U.S., crime participation declined substantially throughout the 1990s, and have remained low in the 2000s. Using the 1979 and 1997 waves of the National Longitudinal Survey of Youth, we identify the determinants of criminal involvement and antisocial behavior. In the 1980s compared to the 2000s, youth from disadvantaged family backgrounds, those with
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Exploring the Existence of a Short-Run Kuznets Curve: Does the Fourth Industrial Revolution Affect Income distribution? The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-01-13 Angelo Castaldo, Valeria De Bonis
The link between technological change and income inequality is central to the Kuznets hypothesis. In a time of technological transition towards the digitization and intelligentization of manufacturing processes (the fourth industrial revolution), this paper investigates the relationship between economic development and income distribution through the implementation of both a system generalized method
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MRS Functions and the Pareto Interval in Public Good Provision The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2023-01-06 Norman L. Kleinberg, Barry K. Ma
The Lindahl-Samuelson condition is adapted to derive the range, or interval, of the efficient/Pareto levels of a public good. The size and bounds of the interval are shown to be dependent on the curvature of the marginal rate of substitution functions and the degree of heterogeneity of preferences. A policy implication is that unlike Nash or private provision, the relationship between the efficient
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Major-Occupation Match Quality: An Empirical Measure Based on Relative Productivity The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2022-12-19 Margaret Leighton, Jamin D. Speer
The match quality between a worker’s field of study in college and her occupation is an important labor market outcome. Yet this match quality is difficult to define and measure. We propose a new measure of major-occupation match quality based on relative productivity. A worker is well-matched if graduates from her major, working in her occupation, have high earnings relative to other major-occupation
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Network Effect, Business Dynamism and Wage Inequality in a Sharing Economy The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2022-12-16 Hamid Beladi, Chi-Chur Chao, Pamela Smith
This paper examines the network effect on income distribution and social welfare in a sharing economy with rural-urban migration. A rise in the urban network effect via an increase of the number of users attracts capital to the urban sector. Urban skilled wage rises but rural unskilled wage falls. Due to rising costs from capital rental and skilled wage, urban firms exit if the demand elasticity of
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Subsidized Crop Insurance under Limited Access to Incomplete Financial Markets The B.E. Journal of Economic Analysis & Policy (IF 0.905) Pub Date : 2022-12-16 Daniel C. Voica
Almost universally, crop insurance uptake has been very low in the absence of significant governmental subsidies. We proposed an explanation for the low uptake by analyzing farmers’ optimal behavior in the presence of subsidized crop insurance and incomplete financial markets. Under specific replication conditions, farmers’ valuation of crop insurance is lower than insurers’ valuation if farmers have