Browsing Discussion paper (CEBR) by Title
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Rose Skaksen, Jan; Malchow-Møller, Nikolaj; Aastrup Jensen, Claus (København, 2007)[More information][Less information]
Abstract: We set up a theoretical model to analyze the implications of coordination of immigration policies among destination countries. The model contains two types of spill-overs between destination countries: A terms of trade externality and a welfare policy externality. We show that while coordination unambiguously increases welfare of the destination countries, the effects on the level of immigration and on the income distribution of natives are ambiguous. Thus, coordination among destination countries does not necessarily solve the global coordination problem of inoptimally low levels of migration. Coordination, Externalities, Immigration Policy, Spill-overs, Terms of Trade, Welfare. URI: http://hdl.handle.net/10398/7698 Files in this item: 1
artikel 15.pdf (289.0Kb) -
Dalgaard, Carl-Johan; Schultz, Esben Anton; Sørensen, Anders (Frederiksberg, 2009)[More information][Less information]
Abstract: Is the wage gap between majors in human arts and other fields caused by the education? If the educational choice is endogenous, the wage gap may instead be caused by selection. We document that individuals’ educational choice is correlated with that of older students and by the concentration of women in their high school. Conditional on high school fixed effects, these characteristics are unlikely to affect post-university wages and are plausible instruments for the educational choice. Our 2SLS estimates reveal that the gap in returns to education is negligible, implying that the wage gap is attributable to selection. URI: http://hdl.handle.net/10398/7989 Files in this item: 1
WP_Dalgaard_Schultz_Sorensen.pdf (417.8Kb) -
le Maire, Daniel; Schjerning, Bertel (København, 2007)[More information][Less information]
Abstract: This paper investigates the relationship between self-employment choice, expected earnings, and uncertainty. Several interesting results emerge from our analysis on Danish longitudinal register data: Firstly, self-employed (taxable) personal income bunch at kink points in the tax system since self-employed can retain earnings and thereby transfer income across tax-years. Secondly, expected income level and income variance are important determinants in choice of occupation. Thirdly, men put more emphasis on expected earnings level, while women appears more risk averse, which contribute to explain why fewer women are self-employed. Finally, our results suggest that non-western immigrants are marginalized into self-employment. Occupational choice, self-employment, wage-dierentials, income uncertainty, risk aversion, overcon dence, self-selection, gender dierences. URI: http://hdl.handle.net/10398/7701 Files in this item: 1
artikel 04.pdf (261.1Kb) -
Iversen, Jens; Malchow-Møller, Nikolaj; Sørensen, Anders (Frederiksberg, 2009)[More information][Less information]
Abstract: We argue that formal schooling and wage-work experience are complementary types of human capital for entrepreneurs. Strong empirical support is found for this hypothesis as the interaction term between schooling and actual wage-work experience enters positively and significantly in a Mincer equation, whereas the effect of schooling in the absence of wage-work experience is insignificant. These results are extremely robust towards more flexible specifications, including fixed-effects estimations dealing with unobserved heterogeneity. For wage workers, the interaction term is negligible, confirming that the complementarity is a distinct characteristic of entrepreneurial human capital. URI: http://hdl.handle.net/10398/7990 Files in this item: 1
WP_Iversen_Malchow_Sorensen.pdf (256.4Kb) -
Malchow-Møller, Nikolaj; Schjerning, Bertel; Sørensen, Anders (København, 2008)[More information][Less information]
Abstract: This paper analyses the importance of entrepreneurs for job creation and wage growth. Relying on unique data that covers all plants, firms and individuals in the Danish private sector, we are able to distil a number of different measures of entrepreneurial plants from the set of new plants, including measures that much more precisely capture the "truly new” or "entrepreneurial” plants than in previous studies. Using these data, we find that while new plants in general account for one third of the gross job creation in the economy, entrepreneurial plants are responsible for between 15% and 25% of this, and thus only account for up to 8% of total gross job creation in the economy. However, entrepreneurial plants seem to generate more additional jobs than other new plants in the years following entry. Finally, the jobs generated by entrepreneurial plants are to a large extent low-wage jobs, as they are not found to contribute to the growth in average wages. However, this insight varies across the different types of entrepreneurial plants. URI: http://hdl.handle.net/10398/7713 Files in this item: 1
dp 2008-13.pdf (122.6Kb) -
Poutvaara, Panu (København, 2007)[More information][Less information]
Abstract: This paper analyzes educational choices and political support for subsidies to higher education in the presence of a time-consistency problem in income redistribution. There may be political support for so generous subsidization that it motivates the median voter to obtain higher education. As a result of increasing own income, the median voter prefers in the future lower taxes than without higher education. Therefore, the expansion of participation in higher education during the second half of the 20th century may have partly been driven by the aim to limit the political support for overly generous income redistribution. education, time-consistency problem, voting, subsidies to education URI: http://hdl.handle.net/10398/7684 Files in this item: 1
artikel 17.pdf (191.4Kb) -
Malchow-Møller, Nikolaj; Munch, Jakob Roland; Schroll, Sanne; Rose Skaksen, Jan (København, 2007)[More information][Less information]
Abstract: In this paper, we use data from the first two rounds of the European Social Survey to analyze the extent to which differences in average attitudes towards immigration across the EU-15 countries may be explained by differences in socioeconomic characteristics and individually perceived consequences of immigration, using an extension of a decomposition technique developed by Fairlie (2005). We find that despite the significant effects of socioeconomic characteristics on attitudes, differences in the distributions of these characteristics can only explain a modest share of the cross-country variation in average attitudes. A larger part can be explained by differences in perceived consequences of immigration, but the main part is still left unexplained. Apart from providing useful input for policy makers working in the area of immigration policy, this raises a number of questions for further research for which the ESS data can be successfully applied. Attitudes, Immigration, Cross-country differences URI: http://hdl.handle.net/10398/7687 Files in this item: 1
artikel 05.pdf (511.8Kb) -
Glazer, Amihai; Kanniainen, Vesa; Poutvaara, Panu (København, 2008)[More information][Less information]
Abstract: This paper develops a theory of consumer boycotts. Some consumers care not only about the products they buy but also about whether the firm behaves ethically. Other consumers do not care about the behavior of the firm but yet may like to give the impression of being ethical consumers. Consequently, to affect a firm’s ethical behavior, moral consumers refuse to buy from an unethical firm. Consumers who do not care about ethical behavior may join the boycott to (falsely) signal that they do care. In the firm’s choice between ethical and unethical behavior, the optimality of mixed and pure strategies depends on the cost of behaving ethically. In particular, when the cost is (relatively) low, ethical behavior arises from a prisoners’ dilemma as the firm’s optimal strategy. URI: http://hdl.handle.net/10398/7706 Files in this item: 1
dp 2008-08.pdf (225.8Kb) -
Koskela, Erkki; Poutvaara, Panu (København, 2008)[More information][Less information]
Abstract: In European Welfare States, low-skilled workers are typically unionized, while the wage formation of high-skilled workers is more competitive. To focus on this aspect, we analyze how flexible international outsourcing and labour taxation affect wage formation, employment and welfare in dual domestic labour markets. Higher productivity of outsourcing, lower cost of outsourcing and lower factor price of outsourcing increase wage dispersion between the high-skilled and low-skilled workers. Increasing wage tax progression of low-skilled workers decreases the wage rate and increases the labour demand of low-skilled workers. It decreases the welfare of lowskilled workers and increases both the welfare of high-skilled workers and the profit of firms. URI: http://hdl.handle.net/10398/7696 Files in this item: 1
dp 2008-15.pdf (183.1Kb) -
Kaiser, Ulrich; Grimpe, Christoph (København, 2008)[More information][Less information]
Abstract: Determining the research and development (R&D) boundaries of the firm as the choice between internal, collaborative and external technology acquisition has since long been a major challenge for firms to secure a continuous stream of innovative products or processes. While research on R&D cooperation or strategic alliances is abundant, little is known about the outsourcing of R&D activities to contract research organizations and its implications for innovation performance. This paper investigates the driving forces of external technology sourcing through contract research based on arguments from transaction cost theory and the resource-based view of the firm. Using a large and comprehensive data set of innovating firms from Germany our findings suggest that technological uncertainty, contractual experience and openness to external knowledge sources motivate the choice for engaging in contract research activities. Moreover, we show that internal and external R&D sourcing are complements: the marginal contribution of internal (external) R&D is the larger the more firms spend on external (internal) R&D. URI: http://hdl.handle.net/10398/7690 Files in this item: 1
dp 2008-02.pdf (227.6Kb) -
Hagen Jørgensen, Ole (København, 2008)[More information][Less information]
Abstract: This paper shows how improved health conditions aect fertility decisions and economic growth. Survival rates for children and adults are incorporated into an overlapping generations model featuring endogenous fertility and altruism from workers towards their retired parents. The main nding is that a simultaneous increase in child and adult survival decreases fertility and increases savings and productivity growth. The analysis illustrates the key role of health in the demographic transition. URI: http://hdl.handle.net/10398/7695 Files in this item: 1
dp 2008-04.pdf (1.563Mb) -
Er Danskere Specielle?Munch, Jakob Roland; Rose Skaksen, Jan; Schroll, Sanne; Malchow-Møller, Nikolaj (København, 2006)[More information][Less information]
Abstract: Denne artikel belyser holdninger til immigration blandt borgere i Danmark og de øvrige EU-15 lande - herunder holdningerne til immigration, der følger af den seneste EU-udvidelse. Det analyseres, hvilke faktorer der ligger til frund for disse holdninger, samt i hvilken udstrækning danskere afviger fra EU-gennemsnittet. Den typiske dansker er lidt mere skeptisk overfor immigration end andre europæere. Danskerne afskiller sig desuden ved, at forholdsvis få forbinder øget immigration med negative konsekvenser for arbejdsmarkedet, men forholdsvis mange forbinder det med højere omkostninger for velfærdsstaten. Når der tages hensyn til opfattelserne af de økonomiske konsekvenser af immigration, kommer Danmark til at fremstå som et væsentligt mere immigrationsskeptisk land, end hvad der kommer til udtryk i de ukorrigerede holdninger. URI: http://hdl.handle.net/10398/7564 Files in this item: 1
ap_2006-01_001.pdf (411.2Kb) -
Do Police Reduce Group Violence?Priks, Mikael; Poutvaara, Panu (København, 2007)[More information][Less information]
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Munch, Jakob Roland; Rose Skaksen, Jan; Malchow-Møller, Nikolaj (København, 2007)[More information][Less information]
Abstract: We propose a complementary approach to analyze the impact of immigration on the wages of native workers. Using linked employer-employee data from Denmark for a relatively long time period (1993-2004), we study the consequences of an increased use of immigrants at the most disaggregate level – the workplace. We find that an increase in the share of workers from less developed countries at the workplace has a signifi cantly negative effect on the wages of natives – also when controlling for potential endogeneity using both fi xed effects and IV. The use of immigrants from more developed countries also appears to be correlated with wages. However, these correlations disappear when controlling for unobserved fi rm and worker characteristics and are thus likely to reflect selection rather than a causal effect of these immigrants. Finally, we find a positive impact on the wages of native workers from having Eastern European co-workers. URI: http://hdl.handle.net/10398/7638 Files in this item: 1
wp18-2007.pdf (697.2Kb) -
Kanniainen, Vesa; Poutvaara, Panu (København, 2007)[More information][Less information]
Abstract: This paper identifies several distortions which create barriers to entrepreneurship. First, in addition to the innate entry cost, there are entry costs caused by regulation. Second, union wage policies raise the opportunity cost of entrepreneurship. Third, inefficiencies in the transmission of tacit knowledge between generations of entrepreneurs can arise: with access to within-family ownership transfer, the outside market for entrepreneurship operates as a lemon’s market. This problem becomes relevant when the economic life of a business idea exceeds the active life of an entrepreneur. barriers to entrepreneurship, tacit knowledge, occupational choice URI: http://hdl.handle.net/10398/7711 Files in this item: 1
artikel 18.pdf (210.7Kb) -
Rosholm, Michael; Scheuer, Christian; Sørensen, Anders (København, 2007)[More information][Less information]
Abstract: This paper investigates the impact of globalization, in the sense of increasing international trade, on the demand for skills in Danish manufacturing companies. The study is based on a unique data set that enables us to develop rich measures of international outsourcing and import penetration. Moreover, the data also allows several strategies to strengthen the causal interpretation of our results. The main finding of the analysis is that it is of crucial importance to distinguish imports - both in the form of outsourcing and overall imports - by country-of-origin. We find that international trade with low-wage countries leads to skill-upgrading. This is especially pronounced for import penetration with a ceteris paribus contribution of around fifty percent to skill-upgrading. Moreover, we find that import penetration in goods originating from high-wage countries lead to skill-downgrading. This latter result suggests that Danish manufacturing has comparative advantage in skill intensive production when compared to low-wage countries, but in unskill-intensive production when compared to high-wage countries. Skill-upgrading, Low-wage country outsourcing, Low-wage country import penetration, Comparative advantage URI: http://hdl.handle.net/10398/7709 Files in this item: 1
artikel 20.pdf (389.3Kb) -
Glazer, Amihai; Kanniainen, Vesa; Poutvaara, Panu (København, 2008)[More information][Less information]
Abstract: We consider the effects of income redistribution when people can migrate from one country to another, and when land within each country is heterogeneous. Taxes related to income can then affect property values, and can induce migration, which further affects property values. We show that under these conditions a utilitarian government should never equalize after-tax incomes. If migration is impossible, it may even transfer income from the poor to the rich, reducing the rents earned by absentee landlords. The redistributive tax on the rich may be higher or lower when the rich can migrate than when they cannot. A Rawlsian government in the absence of mobility will equalize after-tax incomes. Under mobility, Rawlsian governments cut their taxes if and only if the relative pre-tax income of the poor is sufficiently low. URI: http://hdl.handle.net/10398/7689 Files in this item: 1
dp 2008-05.pdf (163.9Kb) -
Fehr, Hans; Habermann, Christian (København, 2007)[More information][Less information]
Abstract: The present paper studies the growth and efficiency consequences of tax-favored individual retirement accounts in a general equilibrium overlapping generations model with idiosyncratic lifespan and labor income uncertainty. We distinguish between economies with rational and with hyperbolic consumers and compare the consequences of mandatory and voluntary retirement plans with and without annuitized benefits. While a full taxation of capital income yields the highest efficiency gains in the rational consumer model, annuitization and hyperbolic discounting substantially improve the economic efficiency of IRAs. We also show that annuitization alters the intergenerational welfare consequences of the reform substantially, since it reduces accidental bequests. Finally, even if mandatory saving programs have a clear cost advantage, they are only recommendable if consumers are myopic. individual retirement accounts, annuities, stochastic general equilibrium, hyperbolic consumers URI: http://hdl.handle.net/10398/7710 Files in this item: 1
artikel 11.pdf (258.2Kb) -
Kaiser, Ulrich; Kongsted, Hans Christian; Rønde, Thomas (København, 2008)[More information][Less information]
Abstract: We measure the quantitative importance of labor mobility as a vehicle for the transmission of knowledge and skills across firms. For this purpose we create a unique data set that matches all applications of Danish firms at the European Patent Office to linked employer-employee register data for the years 1999-2002. The Danish workforce is split into "R&D workers", who hold a bachelor's or a master's degree in a technical field, and "non-R&D workers". We find that mobile R&D workers ("R&D joiners"') contribute more to patenting activity than immobile R&D workers. Furthermore, R&D workers who have previously been employed by a patenting firm ("patent exposed workers") have a larger effect on patenting activity than R&D workers without this experience. Patent exposed R&D joiners constitute the most productive group of workers: for firms that patented prior to 1999, one additional worker of this type relates to an increase in the number of patent applications of the new employer by 0.0646. This corresponds to a 14 percent increase in the mean number of yearly patent applications. We also find that mobility of R&D workers increases the joint patenting activity of the donor and recipient firms, confirming the importance of labor mobility for innovation in the economy. URI: http://hdl.handle.net/10398/7704 Files in this item: 1
dp 2008-16.pdf (363.9Kb) -
Fosfuri, Andrea; Rønde, Thomas (København, 2006)[More information][Less information]
Abstract: We study a situation in which an R&D department promotes the introduction of an innovation, which results in costly re-adjustments for production workers. In response, the production department tries to resist change by improving the existing technology. We show that firms balancing the strengths of the two departments perform better. This principle is employed to derive several implications concerning the hiring of talents, monetary incentives, and technology investment policies. As a negative effect, resistance to change might distort the R&D department’s effort away from radical innovations. The firm can solve this problem by implementing the so-called ”skunk works model” of innovation where the R&D department is isolated from the rest of the organization. Resistance to change, innovation, skunk works model, contest. URI: http://hdl.handle.net/10398/7691 Files in this item: 1
artikel 02.pdf (561.0Kb)