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Automation and taxation Oxford Economic Papers (IF 1.152) Pub Date : 2024-03-15 Kerstin Hötte, Angelos Theodorakopoulos, Pantelis Koutroumpis
Do automation-induced changes in labour and capital income undermine public revenues? Decomposing taxes by source (labour, capital, sales), we analyse the impact of automation on tax revenues and the structure of taxation in nineteen EU countries during 1995–2016. Before 2008 robot diffusion was associated with a decline in total tax revenues and taxes from capital, along with decreasing labour and
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The relationship between aggregate uncertainty and firm-level uncertainty Oxford Economic Papers (IF 1.152) Pub Date : 2024-03-13 Joshy Easaw, Christian Grimme
Many firm-level studies use aggregate uncertainty to proxy for firm-level uncertainty. Providing support for this strategy, we analyse the extent to which firm-level uncertainty is affected by aggregate uncertainty. Firm-level uncertainty is constructed from a large and monthly panel dataset of manufacturing firms. We find that aggregate uncertainty is associated positively and robustly with firm-level
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Increasing inequalities in longevity among Italian workers Oxford Economic Papers (IF 1.152) Pub Date : 2024-03-11 Chiara Ardito, Nicolás Zengarini, Roberto Leombruni, Giuseppe Costa, Angelo d’Errico
This article examines the evolution of inequalities in life expectancy at 65 and all-cause mortality by socio-economic position (SEP) among Italian workers. Period life tables and negative binomial regression models are used to estimate longevity inequalities. The empirical assessment is carried out on two administrative datasets, one covering the entire population of private sector workers for the
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Structural reforms and income distribution: new evidence for OECD countries Oxford Economic Papers (IF 1.152) Pub Date : 2024-02-07 Rasmus Wiese, João Tovar Jalles, Jakob de Haan
This article examines the impact of labour market and product market reforms on income inequality for 25 OECD countries between 1970 and 2020, using the local projections approach and an updated narrative-based dataset of the reform indicators. Our results suggest that both types of (endogenized) market-oriented reforms increase income inequality, but the effects are small. Consistent with this finding
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The gender pay gap in medicine: evidence from Britain Oxford Economic Papers (IF 1.152) Pub Date : 2023-12-22 Melanie Jones, Ezgi Kaya
This study quantifies the drivers of the gender pay gap among medical doctors in the British public sector, both at the mean and across the earnings distribution. We make comparisons to private sector doctors, as well as to other public sector health professionals and find that the substantial 22% hourly gender pay gap among public sector doctors, which is predominately unexplained by personal and
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Exporters under foreign heat Oxford Economic Papers (IF 1.152) Pub Date : 2023-12-18 Clément Nedoncelle
In this article, I estimate the effect of foreign weather shocks on firm-level exports, exploiting the French firm-level customs data from 1995 to 2009. I find support for a small, negative impact of foreign temperatures on average but estimate a robust and strong differential effect across exporters, leading to composition changes. Larger firms are more negatively harmed by foreign weather shocks
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Endogenous learning in international environmental agreements: the impact of research spillovers and the degree of cooperation Oxford Economic Papers (IF 1.152) Pub Date : 2023-11-07 Francisco J André, Michael Finus
We consider an endogenous learning-by-doing process where countries can invest in research that reduces the systematic uncertainty about climate change damages. We analyse a coalition model in which countries decide whether to join a treaty and then choose their level of research and abatement. Countries can cooperate on research and abatement or only on one of these items. We consider the entire range
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International co-movements of inflation, 1851–1913 Oxford Economic Papers (IF 1.152) Pub Date : 2023-11-06 Stefan Gerlach, Rebecca Stuart
We study inflation in a group of 15 countries before and during the classical Gold Standard using annual data spanning 1851–1913. The degree of co-movements between domestic and international inflation depends on geographical remoteness and openness to trade. Furthermore, international inflation acts as an ‘attractor’ for domestic inflation. Sub-sample estimates reveal little evidence of instability
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Banking structural reforms and top income shares: regulate or deregulate? Oxford Economic Papers (IF 1.152) Pub Date : 2023-11-06 Carola Casti
This article investigates if, and to what extent, banking structural reforms may affect the top income shares over time. Canada and Italy are used as case studies, as both countries undertook a major deregulation and liberalization process within their banking sector in the early 1990s. These banking policies aimed at privatizing the banking sector and reintroducing the quasi universal banking model
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Migration, technology diffusion, and growth Oxford Economic Papers (IF 1.152) Pub Date : 2023-10-13 Bright Isaac Ikhenaode, Carmelo Pierpaolo Parello
This article proposes a two-country AK model of growth with cross-country knowledge diffusion and endogenous migration to study the relationship between migration, income inequality, and economic growth. In contrast with mainstream AK literature, the article shows that introducing knowledge diffusion from rich to poor countries makes AK models predict conditional convergence, but also that migration
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Changing gender norms and household resource allocation Oxford Economic Papers (IF 1.152) Pub Date : 2023-10-13 Jung Hyuk Lee
Traditional gender norms that assume gendered household resource allocation are persistent. What happens when society-wide gender norms begin to change? By collecting newspaper articles about feminism in the past 10 years in Korea and exploiting their region–year variations, we first provide evidence that an explosive increase in newspaper coverage of feminism after the mid-2010s caused a steep change
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Public sector wage compression and wage inequality: gender and geographic heterogeneity Oxford Economic Papers (IF 1.152) Pub Date : 2023-10-09 Jørn Rattsø, Hildegunn E Stokke
Studies of wage inequality concentrate on private wages. Public sector wages are typically assumed to contribute to the overall wage equality. We challenge this understanding in an analysis of the relative skill premium in the public versus private sectors. The analysis of heterogeneity across gender and geography is based on rich register data for Norway. The raw data confirm the relative wage compression
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The essentiality of money in a trading post economy with random matching Oxford Economic Papers (IF 1.152) Pub Date : 2023-09-10 Alessandro Marchesiani
This article studies how the structure of centralized markets can affect efficient allocation in anonymous decentralized trades. In line with previous studies, we show that efficiency in decentralized markets can be sustained in a moneyless finite-number-of-agents setting if agents are patient enough and the price is observed with noise. We additionally show that, if there are no gains from trade,
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Inflation dynamics: a traditional perspective Oxford Economic Papers (IF 1.152) Pub Date : 2023-08-23 Christopher Malikane
We derive a traditional Phillips curve (TPC) under the assumption that a fraction of firms sells output at optimal prices, while the other fraction sells at contract prices. Our derivation delivers a pricing mechanism where inflation depends on expected inflation and the real optimal price, which is the real marginal cost. The parameters of this Phillips curve have a clear structural interpretation
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Introduction to the special issue on ‘new directions in understanding philanthropic activities’ Oxford Economic Papers (IF 1.152) Pub Date : 2023-08-23 Maja Adena, Michalis Drouvelis, Steffen Huck
The papers in this Special Issue contribute to a rich literature on the economics of charitable giving. They address several novel questions covering a wide range of open issues in the philanthropic realm. For example, many of our papers study what works and what does not work for a charitable organization to boost giving money or time. Other papers examine fundraising mechanisms and possible underlying
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On the public provision of positional goods Oxford Economic Papers (IF 1.152) Pub Date : 2023-08-13 Désirée I Christofzik, Sebastian G Kessing
We investigate whether the public provision of positional goods can be a sensible instrument to address inefficiencies arising from relative-standing externalities associated with the excessive consumption of such goods. In situations where consumers face a discrete choice between a private and a public alternative, providing the latter for free or at a subsidized rate generates incentives to opt for
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Marital sorting, family output, and wealth inequality Oxford Economic Papers (IF 1.152) Pub Date : 2023-08-10 Emin Gahramanov, Xueli Tang, Zhenhai Yang, Shenghao Zhu
In this article, we analytically model marital sorting, intergenerational transfers, and inequality in a household optimization model with uncertainty. We modify and apply a ‘sorting, reverse sorting’ numerical approach by Demirtas in the context of marriage market mating, illustrating the robustness of our analytical results. We show that the parameters of the family production function play an important
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Performance pay and work hours: US survey evidence Oxford Economic Papers (IF 1.152) Pub Date : 2023-08-08 Benjamin Artz, John S Heywood
Using US survey data, we show that those on performance pay work substantially longer hours. This remains in worker fixed-effect estimates and in worker with employer fixed-effect estimates. The magnitudes confirm increased hours as a dimension of the anticipated effort response and long hours as a potential intermediary between performance pay and reduced worker health. Despite managers being the
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Charitable donations to natural disasters: evidence from an online platform Oxford Economic Papers (IF 1.152) Pub Date : 2023-08-04 Rajshri Jayaraman, Michael Kaiser, Marrit Teirlinck
We investigate the demand and supply of charitable donations to natural disasters on a large online platform. We document that the bulk of charitable donations goes to a tiny fraction of natural disasters, which tend to be severe disasters that receive media coverage. Charities do not fundraise for the remaining 96% of disasters, which account for 80% of casualties. Using an event study-type design
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How difficult is it to interpret subjective well-being questions during crises? Evidence from the onset of conflict in Yemen Oxford Economic Papers (IF 1.152) Pub Date : 2023-07-29 Sharad Tandon
Subjective well-being (SWB) measures, such as satisfaction with income, are increasingly being used to measure changes in well-being in response to policy changes and shocks. However, large policy changes or shocks themselves might cause individuals to change how they answer SWB questions in ways that have little to do with changes in objective well-being measures. For example, respondent-specific
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The evolution of preferences and charitable giving: a panel study of the university years Oxford Economic Papers (IF 1.152) Pub Date : 2023-07-25 Catherine Eckel, Nishita Sinha, Rick Wilson
Economic preferences are often taken as given, yet evidence shows that preferences respond to life events and change over time. We examine the evolution of other-regarding preferences for a cohort of university students over 5 years, starting before they matriculate and extending one year beyond graduation. Using survey and incentivized measures of preferences, we show that altruism declines over the
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How does less public spending affect the motivation of citizens to contribute to nature conservation? Oxford Economic Papers (IF 1.152) Pub Date : 2023-07-19 Andries Richter, Stijn Reinhard
Contributions to public goods, such as nature areas, are often made by private actors, as well as governmental agencies. Typically, the motivation of citizens to voluntarily contribute depends on how the distribution of such tasks has evolved between public and private actors, and wider contextual factors. Therefore, it is unclear whether decreased public spending on nature areas affects private funding
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Can prosocial incentives and self-chosen goals improve performance? An online real-effort experiment Oxford Economic Papers (IF 1.152) Pub Date : 2023-07-19 Yu Cao, C Mónica Capra, Yuxin Su
We study incentive schemes that combine self-chosen goals with prosocial rewards. We design a real-effort task experiment with MTurk workers. Upon achieving self-chosen goals, rewards are paid to the worker in the monetary treatments or to charities in the prosocial treatments. To explore the mechanisms whereby rewards can improve performance with prosocial incentives, we develop a theoretical model
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Charitable giving role-modeling: parent transmission frequency and adolescent reception. Oxford Economic Papers (IF 1.152) Pub Date : 2023-07-18 Mark Ottoni-Wilhelm,Una Osili,Xiao Han
Experiments indicate that adult role-modeling of giving has a causal effect on giving done by children, but a previous investigation using data from a natural setting suggests zero causal effect of parent role-modeling on their adolescents' giving. This article presents new evidence about the divergent findings: (i) parent giving does not automatically translate into adolescents knowing that their
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Effects of the minimum wage on the nonprofit sector Oxford Economic Papers (IF 1.152) Pub Date : 2023-07-14 Jonathan Meer, Hedieh Tajali
The nonprofit sector’s ability to absorb increases in labor costs differs from the private sector in a number of ways. We analyse how nonprofits are affected by changes in the minimum wage utilizing data from the Bureau of Labor Statistics and the Internal Revenue Service, linked to state minimum wages. We examine changes in reported employment and volunteering, as well as other financial statements
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Charitable giving and intermediation: a principal agent problem with hidden prices Oxford Economic Papers (IF 1.152) Pub Date : 2023-07-13 Nadine Chlaß, Lata Gangadharan, Kristy Jones
Donations are often made through charitable intermediaries that can fund themselves from these same donations. After intermediation, only a fraction of the amount donated may reach the intended beneficiary. The price of charitable output is therefore higher after intermediation than if donors donated directly toward the end cause. At the same time, this price is hidden from donors since they cannot
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Substitutes or complements: a budget-based analysis of the relationship between donating and volunteering Oxford Economic Papers (IF 1.152) Pub Date : 2023-07-09 Lieke Voorintholt
Are charitable gifts of money and time substitutes or complements? The answer to this question would benefit non-profit organizations and governments aiming to maximize charitable gifts, but previous research has not yet delivered a final conclusion. Therefore, I introduce an alternative approach to this question that focuses on variation in individuals’ budgets instead of previously used variation
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What drives overhead aversion in charity? Evidence from field-experimental variation in fundraising costs Oxford Economic Papers (IF 1.152) Pub Date : 2023-07-08 Tobias Cagala, Johannes Rincke, Amanda Tuset Cueva
This article explores donors’ aversion to financing charities’ fundraising expenses. We hypothesize that such expenses can signal a charity’s efficiency, or affect the donors’ perception of the impact a donation has on the cause. Using data from a randomized field experiment, we disentangle both effects, differentiating between weakly and strongly committed donors. Among potential donors who are weakly
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It’s me again… Ask avoidance and the dynamics of charitable giving Oxford Economic Papers (IF 1.152) Pub Date : 2023-06-27 Maximilian Späth
Charities typically ask potential donors repeatedly for a donation. These repeated requests might trigger avoidance behaviour. Considering that, this article analyses the impact of offering the option to opt-out of receiving future fundraising asks on charitable giving. In a proposed utility framework, any opt-out option decreases the social pressure to donate. At the same time, an unconditional opt-out
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An experimental test of cause-related marketing and charitable giving Oxford Economic Papers (IF 1.152) Pub Date : 2023-06-24 James J Murphy, Molly Conlin, Bryan Haugstad
We conducted a natural field experiment at a local toy store in Anchorage, Alaska to estimate the effect on consumer behavior when the firm’s charitable donation is conditional on the total dollar amount of the individual transaction. Results suggest that the donation offer resulted in a modest increase in both the share of transactions exceeding the minimum amount needed to qualify for the donation
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The role of student effort on performance in PISA: revisiting the gender gap in achievement Oxford Economic Papers (IF 1.152) Pub Date : 2023-05-31 Lina M Anaya, Gema Zamarro
International assessments are important to benchmark the quality of education internationally. However, ignoring students’ efforts in low-stakes tests can lead to biased interpretations of test performance. We use data from the PISA to analyse the potential role of student effort in explaining gender achievement gaps across countries. We build two effort measures based on students’ response times to
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Unemployment insurance design with repeated choices Oxford Economic Papers (IF 1.152) Pub Date : 2023-05-19 Sumudu Kankanamge, Thomas Weitzenblum
This article characterizes the relation between the equilibrium unemployment insurance replacement rate and the frequency of its political choice. We first use a tractable analytical model to show how insurance, incentive, and redistribution effects interact at the equilibrium. We then examine a fully repeated choices equilibrium in a quantitative heterogeneous agents model and show that unemployment
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Bernanke and Kindleberger on financial crises, 1978–2003 Oxford Economic Papers (IF 1.152) Pub Date : 2023-05-05 Emmanuel Carré, Laurent Le Maux
Ben Bernanke and Charles Kindleberger both studied financial crises. One interpretation in monetary macroeconomics associates them over their endorsement of the credit view as opposed to the money view. We suggest another interpretation and compare their contributions on financial crises more closely. This comparison makes all the more sense as the two authors were engaged in a discussion that the
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Work experience, information revelation, and study effort Oxford Economic Papers (IF 1.152) Pub Date : 2023-04-29 Thanos Mergoupis, Robertas Zubrickas
Firms screen graduates using grade thresholds, which can turn into students’ targeted learning outcomes or reference points in the model of study effort choice. Variability in the usage of grade thresholds implies students’ uncertainty about the value of grades. Work experience from internships can reduce this uncertainty and, in turn, affect the choice of study effort. We theoretically show that a
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Uncertainty shocks and employment fluctuations in Germany: the role of establishment size Oxford Economic Papers (IF 1.152) Pub Date : 2023-04-27 Tim Kovalenko
Uncertainty shocks are found to affect labour market outcomes adversely. Most studies interrelate non-convex labour adjustment costs with the propagation of macroeconomic uncertainty to the labour market. I show that non-convex labour adjustment costs differ by establishment size in Germany. Hence, uncertainty shocks should affect large and small establishments differently. Therefore, this article
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Macroprudential policy implementation in a heterogeneous monetary union Oxford Economic Papers (IF 1.152) Pub Date : 2023-04-22 Margarita Rubio
In this article, I develop a two-country new Keynesian general equilibrium model with housing and collateral constraints to explore how macroprudential policies should be conducted in a heterogeneous monetary union. I consider several types of cross-country heterogeneity: asymmetric shocks, different leveraged countries, and mortgage contract heterogeneity (fixed and variable rates). As a macroprudential
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How does low-skilled immigration affect native wages? Evidence from Employment Permit System in Korea Oxford Economic Papers (IF 1.152) Pub Date : 2023-04-21 Michell Dong, Jongkwan Lee, Hee-Seung Yang
This study examines the effects of low-skilled immigration on the wages of native workers by analysing Korea’s temporary immigrant worker programme. Using firm-level survey data, we exploit exogenous variations in the number of foreign workers firms can hire to estimate the wage effects of immigration. We find that an increase in immigrant workers in a firm does not affect the firm-specific native
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Government funding incentives and study program capacities in public universities: theory and evidence Oxford Economic Papers (IF 1.152) Pub Date : 2023-04-12 Jan Morten Dyrstad, Mia Marie Wallgren Sohlman, Tor Henrik Teigen
Objectives aimed at increasing higher education productivity, for instance, measured by credits per student, have stimulated the use of performance-based funding (PBF) by higher education institutions (HEIs). On theoretical grounds, PBF is expected to speed-up study program capacity adjustments through (re)allocations of study places. We conclude from analyses of Norwegian data that study places are
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Distributional effect of import shocks on British local labour markets Oxford Economic Papers (IF 1.152) Pub Date : 2023-03-08 Anwar S Adem
This article investigates the causal effect of import shocks on the wage distribution using individual-level data from the UK in the period 1997–2010. The analysis exploits regional variation in initial industrial structure and concentration for identification, and applies a group IV quantile approach to estimate the effect of import shocks on workers at different parts of the wage distribution. The
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Beyond human capital: how does parents’ direct influence on their sons’ earnings vary across eight OECD countries? Oxford Economic Papers (IF 1.152) Pub Date : 2023-02-25 Franco Bonomi Bezzo, Michele Raitano, Pieter Vanhuysse
This article asks to what degree the association between parents’ education and sons’ earnings is mediated by various forms of sons’ human capital across eight large OECD countries. We exploit the OECD Program for the International Assessment of Adult Competencies (PIAAC) database, which provides information on four dimensions of human capital (educational attainment, field of study, cognitive skills
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Wages of UK immigrant men across generations: who catches up? Oxford Economic Papers (IF 1.152) Pub Date : 2023-02-11 Nico Ochmann
This article examines UK immigrant-native wage differentials for men across major first- and second-generation immigrant groups with the UK Household Longitudinal Study (UKHLS) pooling cross-sections over the years 2009–19. I find that first-generation immigrants with UK human capital experience less of a wage disadvantage than their immigrant counterparts with foreign language proficiency, qualifications
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Identifying the economic determinants of individual voting behaviour in UK general elections Oxford Economic Papers (IF 1.152) Pub Date : 2023-02-02 Georgios Marios Chrysanthou, María Dolores Guilló
We explore the economic determinants of individual voting behaviour in five UK electoral cycles during 1992–2014. Using the Understanding Society and the British Household Panel Surveys, we investigate the importance of political sentiments and subjective economic evaluations disentangling persistence of party support and unobserved heterogeneity effects. We estimate joint dynamic tripartite models
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Housing, the credit market, and unconventional monetary policies: from the sovereign crisis to the great lockdown Oxford Economic Papers (IF 1.152) Pub Date : 2023-02-01 Hamed Ghiaie
This article evaluates the interactions between housing, the credit market, and the ECB’s asset purchase program (APP) from 2015 until 2020 and then in the course of the ECB’s pandemic emergency purchase program (PEPP) in 2020. The model is calibrated for the euro area. The findings illustrate the way in which macrohousing channels affect bank portfolio rebalancing which is the main channel for asset
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Non-governmental organizations’ motivation to diversify: self-interest or operation-related? Evidence from Uganda Oxford Economic Papers (IF 1.152) Pub Date : 2023-02-01 Canh Thien Dang, Trudy Owens
Understanding the mechanisms that guide non-governmental organizations’ (NGOs) managerial decisions is a key to effective development policies. One fundamentally strategic decision is the number of activities an NGO offers. We provide a conceptual framework based on the agency theory to study the motivations underlying strategic decisions of development NGOs in Uganda. We test whether diversifying
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COVID-19 and culture Oxford Economic Papers (IF 1.152) Pub Date : 2023-01-31 Aatishya Mohanty, James B Ang
The USA has been particularly hard hit by the COVID-19 pandemic and a wide spatial variation can be seen in its spread and mortality. This raises the question of why some regions are more resilient to the pandemic than others? We hypothesize that the individualism–collectivism cleavage explains the disparity in COVID-19 cases observed across sub-national units in the USA. Cultural disparity among different
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Ending civil wars through fraudulent elections Oxford Economic Papers (IF 1.152) Pub Date : 2023-01-30 Michael Christian Lehmann
Previous research finds a positive association between electoral fraud and post-election protests, violence, and civil conflict. This article contends that the effect of electoral fraud on peace can be heterogeneous. I investigate elections after civil wars that stalemated. My contribution is to present a theory and suggestive evidence that, in this context, electoral fraud by unpopular incumbents
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Does the depth of informality influence welfare in urban Sub-Saharan Africa? Oxford Economic Papers (IF 1.152) Pub Date : 2023-01-11 Eva-Maria Egger, Cecilia Poggi, Héctor Rufrancos
We explore the relationship between household welfare and informality, measuring household informality as the share of members’ activities (hours worked or income) without social insurance. We discretize these measures into four bins or portfolios and assess their influence on consumption, as a measure of welfare. Cross-sectional regressions for five urban Sub-Saharan African countries reveal a non-linear
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Do children increase the likelihood of homeownership? Evidence from a sample with twins Oxford Economic Papers (IF 1.152) Pub Date : 2022-12-07 Seolah Kim, Hanbyul Ryu
Homeownership status has a broad range of positive outcomes that accrue to both individuals and society. Although the determinants of homeownership have been studied in the past, there was little attention to the effect of family size. Using a twin birth as an exogenous change in the number of children, we examine the effect of increasing family size on the likelihood of owning a house. We found that
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Effects of bargaining legislation on worker and management reconciliation decisions—a bivariate duration analysis Oxford Economic Papers (IF 1.152) Pub Date : 2022-11-23 Sadat Reza, Paul Rilstone
We examine bargaining legislation effects on the union and management reconciliation decisions following announcement of a strike using a bivariate duration model. The durations associated with the two groups are latent, and we argue that under weak assumptions the key parameters are identified. Simulation studies show that the latent parameters are reliably estimable in finite samples. We use a large
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Identity, immigration, and subjective well-being: why are natives so sharply divided on immigration issues? Oxford Economic Papers (IF 1.152) Pub Date : 2022-11-18 Peter Howley, Muhammad Waqas
We put forward differences in the form of national identity across natives as a key mechanism explaining the sharp public divide on immigration issues. We show that inflows of migrants into local areas can be harmful for the self-reported well-being of natives, but this is only true for natives who self-identify with an ethnic form of national identity. On the other hand, we provide some evidence to
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A year of COVID: the evolution of labour market and financial inequalities through the crisis Oxford Economic Papers (IF 1.152) Pub Date : 2022-10-28 Thomas F Crossley, Paul Fisher, Hamish Low, Peter Levell
We use high-quality UK panel data to document the extent that pre-existing labour market and financial inequalities were exacerbated by the pandemic between April 2020 and September 2021. Some inequalities worsened, others did not, and in some cases, initial widening of labour market inequalities was subsequently reversed. We find no evidence of an overall divergence in labour market outcomes by gender
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Policing and crime: dynamic panel evidence from California Oxford Economic Papers (IF 1.152) Pub Date : 2022-10-21 Nicholas Lovett, David M Welsch, Yuhan Xue
We exploit police and crime data from California over 26 years to construct a dynamic panel, which is then estimated using Arellano–Bover/Blundell–Bond techniques to address concerns about simultaneity, unobserved heterogeneity, and inertial effects in the policing-crime relationship. We find no evidence that increases in police staffing lead to meaningful reductions in crime through either deterrence
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Teenage conduct problems: a lifetime of disadvantage in the labour market? Oxford Economic Papers (IF 1.152) Pub Date : 2022-10-11 Sam Parsons, Alex Bryson, Alice Sullivan
Using data from British cohorts born in 1958 and 1970, we used quantile regression to investigate the impact of ‘mild’ and ‘severe’ teenage conduct problems on months spent in paid employment or paid employment, education, and training (EET) between ages 17 and 42. Those with conduct problems spent significantly less time in employment or EET by age 42. The penalty grows in one’s 20s and tends to persist
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Habit formation and trade unions Oxford Economic Papers (IF 1.152) Pub Date : 2022-09-28 Laszlo Goerke, Sven A Hartmann
We analyse how habit formation affects collective bargaining outcomes if a firm-specific trade union determines wages. For a wide variety of alternative analytical settings, such internal reference points induce the union to increase wages over time. A numerical example suggests that the resulting decline in employment can be substantial. Furthermore, policy changes in one period, which are either
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Long-term relatedness and income distribution: understanding the deep roots of inequality Oxford Economic Papers (IF 1.152) Pub Date : 2022-09-15 Trung V Vu
This article explores the role of long-term relatedness between countries, captured by an index of genetic distance, in driving worldwide differences in income inequality. The main hypothesis is that genetic distance gives rise to barriers to the international diffusion of redistributive policies and measures, and institutions, leading to greater income disparities. Using cross-country data, I consistently
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Do US top executives benefit from market concentration? Oxford Economic Papers (IF 1.152) Pub Date : 2022-09-10 Maria Bas, Caroline Paunov
The income share of the top 1% of earners in the USA increased to 20% in 2014. The increase in income inequalities is contemporaneous with the rising market concentration across industries. This article shows that both developments are linked: top executives in more concentrated markets receive more pay than those in less concentrated markets. Superstars—the best-paid and most experienced chief executive
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Economic insecurity and political preferences Oxford Economic Papers (IF 1.152) Pub Date : 2022-09-07 Walter Bossert, Andrew E Clark, Conchita D’Ambrosio, Anthony Lepinteur
Economic insecurity has attracted growing attention, but there is no consensus as to its definition. We characterize a class of individual economic-insecurity measures based on the time profile of economic resources. We apply this economic-insecurity measure to political-preference data in the USA, UK, and Germany. Conditional on current economic resources, economic insecurity is associated with both
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Population sorting and human capital accumulation Oxford Economic Papers (IF 1.152) Pub Date : 2022-08-30 Leonid V Azarnert
This article analyses the effect of population sorting on economic growth. The analysis is performed in a two-region growth model with endogenous fertility, in which public knowledge spillovers from the more advanced core amplify the productivity of investment in children’s human capital in the periphery. I show how migration affects the inter-temporal evolution of human capital in each of the regions
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The institutional wage adjustment to import competition: evidence from the Italian collective bargaining system Oxford Economic Papers (IF 1.152) Pub Date : 2022-07-30 Alessia Matano, Paolo Naticchioni, Francesco Vona
A growing body of research has contributed to understanding the labour market and political effects of globalization. This article explores an overlooked feature of trade-induced adjustments in the labour market: the institutional aspect. We take advantage of the Italian collectively bargained minimum wage system, which is based on a two-tier structure, whereby the first tier entails setting minimum
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Productivity-enhancing reallocation during the Great Recession: evidence from Lithuania Oxford Economic Papers (IF 1.152) Pub Date : 2022-07-23 Jose Garcia-Louzao, Linas Tarasonis
This article studies the impact of the Great Recession on the relationship between reallocation and productivity dynamics in Lithuania. Using detailed micro-level data, we first document the aggregate contribution of firm dynamics and employment reallocation to productivity growth. Next, we estimate firm-level regressions to confirm the findings and to perform a heterogeneity analysis. The analysis