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  • 1. Albrecht, James
    et al.
    Bronson, Mary Ann
    Skogman Thoursie, Peter
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Vroman, Susan
    The career dynamics of high-skilled women and men: Evidence from Sweden2018In: European Economic Review, ISSN 0014-2921, E-ISSN 1873-572X, Vol. 105, p. 83-102Article in journal (Refereed)
    Abstract [en]

    In this paper, we use matched worker-firm register data from Sweden to examine the career dynamics of high-skill women and men. Specifically, we track wages for up to 20 years among women and men born in the years 1960-70 who completed a university degree in business or economics. These women and men have similar wages and earnings at the start of their careers, but their career paths diverge substantially as they age. These men and women also have substantial differences in wage paths associated with becoming a parent. We look at whether firm effects account for the differences we observe between women's and men's wage profiles. We document differences between the firms where men work and those where women work. However, a wage decomposition suggests that these differences in firm characteristics play only a small role in explaining the gender log wage gap among these workers. We then examine whether gender differences in firm-to-firm mobility help explain the patterns in wages that we see. Men and women both exhibit greater mobility early in their careers, but there is little gender difference in this firmto-firm mobility. We find that the main driver of the gender difference in log wage profiles is that men experience higher wage gains than women do both as switchers and as stayers.

  • 2. Albrecht, Konstanze
    et al.
    von Essen, Emma
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Parys, Juliane
    Szech, Nora
    Updating, self-confidence, and discrimination2013In: European Economic Review, ISSN 0014-2921, E-ISSN 1873-572X, Vol. 60, p. 144-169Article in journal (Refereed)
    Abstract [en]

    In this laboratory experiment, we show that people incorporate irrelevant group information when evaluating others. Individuals from groups that perform badly on average receive low evaluations, even when it is known that the individuals themselves perform well. This group-bias occurs both in a gendered setup, where women form the worse performing group, and in a non-gendered setup. The type of discrimination that we identify is neither taste-based nor statistical; it is rather due to conservatism in updating beliefs, and is even more pronounced among women. Furthermore, self-confident men overvalue male performers. When our data is used to simulate a job promotion ladder, we observe that women are driven out quickly.

  • 3.
    Balleer, Almut
    et al.
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies. RWTH Aachen, Germany.
    Gehrke, Britta
    Lechthaler, Wolfgang
    Merkl, Christian
    Does short-time work save jobs? A business cycle analysis2016In: European Economic Review, ISSN 0014-2921, E-ISSN 1873-572X, Vol. 84, p. 99-122Article in journal (Refereed)
    Abstract [en]

    In the Great Recession most OECD countries used short-time work (publicly subsidized working time reductions) to counteract a steep increase in unemployment. We show that short-time work can actually save jobs. However, there is an important distinction to be made: while the rule-based component of short-time work is a cost-efficient job saver, the discretionary component is completely ineffective. In a case study for Germany, we use the rich data available to combine micro- and macroeconomic evidence with macroeconomic modeling in order to identify, quantify and interpret these two components of short-time work.

  • 4. Bisin, Alberto
    et al.
    Patacchini, Eleonora
    Verdier, Thierry
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics. CEPR, UK; IFN, Sweden.
    Bend it like Beckham: Ethnic identity and integration2016In: European Economic Review, ISSN 0014-2921, E-ISSN 1873-572X, Vol. 90, p. 146-164Article in journal (Refereed)
    Abstract [en]

    We propose a theoretical framework to study the determinants of ethnic and religious identity along two distinct motivational processes: cultural distinction and cultural conformity. Under cultural conformity, ethnic identity is reduced by neighborhood integration, which weakens group loyalties and prejudices. On the contrary, under cultural distinction, ethnic minorities are more motivated in retaining their own distinctive cultural heritage the more integrated are the neighborhoods where they reside and work. Using data on ethnic preferences and attitudes provided by the Fourth National Survey of Ethnic Minorities in the UK we find evidence that might be consistent with intense ethnic and religious identity mostly formed as a cultural distinction mechanism. Consistently, we document that ethnic identities might be more intense in mixed than in segregated neighborhoods.

  • 5. Bisin, Alberto
    et al.
    Patacchini, Eleonora
    Verdier, Thierry
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Formation and persistence of oppositional identities2011In: European Economic Review, ISSN 0014-2921, E-ISSN 1873-572X, Vol. 55, no 8, p. 1046-1071Article in journal (Refereed)
    Abstract [en]

    We develop a dynamic model of identity formation that explains why ethnic minorities may choose to adopt oppositional identities (i.e. some individuals may reject or not the dominant culture) and why this behavior may persist over time. We first show that the prevalence of an oppositional culture in the minority group cannot always be sustained in equilibrium. Indeed, because the size of the majority group is larger, there is an imposed process of exposition to role models from the majority group that favors the diffusion of mainstream values in the minority community. In spite of this, an oppositional culture in the minority group can nevertheless be sustained in steady state if there is enough cultural segmentation in terms of role models, or if the size of the minority group is large enough, or if the degree of oppositional identity it implies is high enough. We also demonstrate that the higher the level of harassment and the number of racist individuals in the society, the more likely an oppositional minority culture will emerge. We finally show that ethnic identity and socialization effort can be more intense in mixed rather than segregated neighborhoods.

  • 6. Brock, William
    et al.
    Engström, Gustav
    Stockholm University, Faculty of Science, Stockholm Resilience Centre. Stockholm University, Faculty of Social Sciences, Department of Economics. The Beijer Institute of Ecological Economics, Sweden.
    Xepapadeas, Anastasios
    Spatial climate-economic models in the design of optimal climate policies across locations2014In: European Economic Review, ISSN 0014-2921, E-ISSN 1873-572X, Vol. 69, p. 78-103Article in journal (Refereed)
    Abstract [en]

    We couple a one-dimensional energy balance climate model with heat transportation across latitudes, with an economic growth model. We derive temperature and damage distributions across locations and optimal taxes on fossil fuels which, in contrast to zero-dimensional Integrated Assessment Models, account for cross latitude externalities. We analyze the impact of welfare weights on the spatial structure of optimal carbon taxes and identify conditions under which these taxes are spatially nonhomogeneous and are lower in latitudes with relatively lower per capita income populations. We show the way that heat transportation affects local economic variables and taxes, and locate sufficient conditions for optimal mitigation policies to have rapid ramp-up initially and then decrease over time.

  • 7.
    Broer, Tobias
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    The home bias of the poor: Foreign asset portfolios across the wealth distribution2017In: European Economic Review, ISSN 0014-2921, E-ISSN 1873-572X, Vol. 92, p. 74-91Article in journal (Refereed)
    Abstract [en]

    This paper documents how the share of foreign stocks in US household portfolios rises with the ratio of financial wealth to non-financial income. This is both because wealthier households are more likely to participate in foreign asset markets, and because portfolio shares of participants increase with financial wealth but decrease with non-financial income. A simple, standard two-country general equilibrium model shows that hedging of terms of trade movements and non-financial income risk produces non-trivial heterogeneity in portfolios across the wealth and income distribution within countries that is qualitatively in line with this evidence.

  • 8.
    Forslid, Rikard
    et al.
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Okubo, Toshihiro
    On the development strategy of countries of intermediate size an analysis of heterogeneous firms in a multi region framework2012In: European Economic Review, ISSN 0014-2921, E-ISSN 1873-572X, Vol. 56, no 4, p. 747-756Article in journal (Refereed)
    Abstract [en]

    This paper compares two policies: trade cost reduction and firm relocation cost reduction using a three-country version of a heterogeneous-firms geography and trade model, where the three countries have different market (population) sizes. We show how the effects of the two policies differ, in particular for the country of intermediate size. Unless the intermediate country is very small, in a relative sense, it will gain industry when relocation costs are reduced, but lose industry when trade costs are reduced. The smallest country loses industry in both cases, but only experiences lower welfare in the case of lower relocation costs. Thus, the ranking of the policies from the point of view of the two small and intermediate countries tends to be the opposite.

  • 9. Freier, Ronny
    et al.
    Odendahl, Christian
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Do parties matter? Estimating the effect of political power in multi-party systems2015In: European Economic Review, ISSN 0014-2921, E-ISSN 1873-572X, Vol. 80, p. 310-328Article in journal (Refereed)
    Abstract [en]

    When there are more than two parties, policy outcomes are typically the result of a bargaining process. We investigate whether changes in political power for various parties have an effect on tax policies. We use an instrumental variable approach where close elections provide the exogenous variation in our variable of interest: voting power. In order to isolate close elections in a proportional election system, we develop a new simulation algorithm. Using data from German municipalities in the state of Bavaria, our estimation results suggest that political power does matter for policies. Somewhat surprisingly, the center-left party SPD is found to lower all three locally controlled taxes, whereas The Greens increase both property taxes considerably. These results remain robust across a range of specifications. Our partisan effect for the SPD is also confirmed by a simple regression discontinuity estimation using mayoral elections.

  • 10. Gaigné, Carl
    et al.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics. Research Institute of Industrial Economics (IFN), Sweden; GAINS, France.
    Agglomeration, city size and crime2015In: European Economic Review, ISSN 0014-2921, E-ISSN 1873-572X, Vol. 80, p. 62-82Article in journal (Refereed)
    Abstract [en]

    This paper analyzes the relationship between crime and agglomeration where the land, labor, product, and crime markets are endogenously determined. Our main theoretical findings are the following: (i) better accessibility to jobs decreases crime in the short run but may increase crime in the long run; (ii) the per-capita crime rate increases with city size; (iii) when allowing for endogenous policing, lower commuting costs make the impact of police on crime more efficient.

  • 11. Gonzalez-Eiras, Martin
    et al.
    Niepelt, Dirk
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Ageing, government budgets, retirement, and growth2012In: European Economic Review, ISSN 0014-2921, E-ISSN 1873-572X, Vol. 56, no 1, p. 97-115Article in journal (Refereed)
    Abstract [en]

    We analyze the short and long-run effects of demographic ageing - increased longevity and reduced fertility - on per-capita growth. The OLG model captures direct effects, working through adjustments in the savings rate, labor supply, and capital deepening, and indirect effects, working through changes of taxes, government spending components and the retirement age in politico-economic equilibrium. Growth is driven by capital accumulation and productivity increases fueled by public investment. The closed-form solutions of the model predict taxation and the retirement age in OECD economies to increase in response to demographic ageing and per-capita growth to accelerate. If the retirement age was held constant, the growth rate in politico-economic equilibrium would essentially remain unchanged, due to a surge of social-security transfers and crowding out of public investment.

  • 12.
    Larsson Seim, Anna
    et al.
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Parente, Stephen L.
    Democracy as a Middle Ground: A Unified Theory of Development and Political Regimes2013In: European Economic Review, ISSN 0014-2921, E-ISSN 1873-572X, Vol. 64, p. 35-56Article in journal (Refereed)
    Abstract [en]

    Although many of the worst performing countries over the post-World War II period were autocracies, many of the best were likewise autocratic. At the same time, no long-lived autocracy currently is rich whereas every long-lived democracy is. This paper proposes a theory to account for these observations that rests on the ideas that autocrats are heterogeneous and that elites experience lower land rents with industrialization. In a model calibrated to Britain's development, we show that elites democratize society only after the economy has accumulated enough wealth, and that the democratization date depends importantly on the history of rulers and distribution of land.

  • 13. Sato, Yasuhiro
    et al.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics. CEPR Centre for Economic Policy Research, United Kingdom.
    How urbanization affect employment and social interactions2015In: European Economic Review, ISSN 0014-2921, E-ISSN 1873-572X, Vol. 75, p. 131-155Article in journal (Refereed)
    Abstract [en]

    We develop a model where the unemployed workers in the city can find a job either directly or through weak or strong ties. We show that, in denser areas, individuals choose to interact with more people and meet more random encounters (weak ties) than in sparsely populated areas. We also demonstrate that, for a low urbanization level, there is a unique steady-state equilibrium where workers do not interact with weak ties, while, for a high level of urbanization, there is a unique steady-state equilibrium with full social interactions. We show that these equilibria are usually not socially efficient when the urban population has an intermediate size because there are too few social interactions compared to the social optimum. Finally, even when social interactions are optimal, we show that there is over-urbanization in equilibrium.

  • 14.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Search in Cities2009In: European Economic Review, ISSN 0014-2921, E-ISSN 1873-572X, Vol. 53, no 6, p. 607-624Article in journal (Refereed)
    Abstract [en]

    The aim of this paper is to expose the recent developments of urban search models which incorporate a land market into a search-matching framework. Using these models, we will be able to explain why unemployment rates vary within a city, how city structure affects workers’ labor-market outcomes, how unemployment benefits and the job-destruction rate affect the growth of cities and why workers living far away from job centers search less intensively and experience higher unemployment rates than those residing closer to jobs. We are also able to explain why, as compared to whites, black workers spend more time commuting to work but travel less miles and search for jobs over a smaller area.

1 - 14 of 14
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