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Market Outcomes (market + outcome)
Kinds of Market Outcomes Selected AbstractsCredit Reporting, Relationship Banking, and Loan RepaymentJOURNAL OF MONEY, CREDIT AND BANKING, Issue 8 2007MARTIN BROWN credit market; information sharing; relationship banking How does information sharing between lenders affect borrowers repayment behavior? We show,in a laboratory credit market,that information sharing increases repayment rates, as borrowers anticipate that a good credit record improves their access to credit. This incentive effect of information sharing is substantial when repayment is not third-party enforceable and lending is dominated by one-shot transactions. If, however, repeat interaction between borrowers and lenders is feasible, the incentive effect of credit reporting is negligible, as bilateral banking relationships discipline borrowers. Information sharing nevertheless affects market outcome by weakening lenders' ability to extract rents from relationships. [source] THE IMPACT OF RENT CONTROLS IN NON-WALRASIAN MARKETS: AN AGENT-BASED MODELING APPROACHJOURNAL OF REGIONAL SCIENCE, Issue 3 2006Ralph Bradburd ABSTRACT We use agent-based models to consider rent ceilings in non-Walrasian housing markets, where bargaining between landlord and tenant leads to exchange at a range of prices. In the non-Walrasian setting agents who would be extramarginal in the Walrasian setting frequently are successful in renting, and actually account for a significant share of the units rented. This has several implications. First, rent ceilings above the Walrasian equilibrium price (WEP) can affect the market outcome. Second, rent ceilings that reduce the number of units rented do not necessarily reduce total market surplus. Finally, the distributional impact of rent controls differs from the Walrasian setting. [source] Persistent Advantage or Disadvantage?: Evidence in Support of the Intergenerational Drag HypothesisAMERICAN JOURNAL OF ECONOMICS AND SOCIOLOGY, Issue 2 2001William Darity By utilizing the Integrated Public Use Microdata Series (IPUMS) and a measure of occupational prestige (OCCSCORE) as a labor market outcome, the authors examine variations in the degree of labor market discrimination faced by several ethnic and racial groups in the United States between 1880 and 1990. Results demonstrate that the sharpest decline in labor market discrimination against blacks occurred between 1960 and 1980. For black males the extent of labor market discrimination was greater in all census years in IPUMS after 1880 until 1970, evidence contradicting the conventional expectation that market-based discrimination will decline progressively over time by dint of competitive pressure. Finally, after replicating George Borjas' "ethnic capital" exercise, the authors pool the 1880, 1900, and 1910 data to determine the relative magnitude of a group's gains and losses in occupational prestige due to group advantage or disadvantage in human capital endowments and due to favorable or unfavorable treatment (nepotism or discrimination) of those endowments in the labor market. The authors then examine statistically whether the group human capital advantage or disadvantage and group exposure to nepotism or discrimination at the turn of the century affects labor market outcomes for their descendants today. Results indicate strong effects of the past on present labor market outcomes. Hence, the essence of the study is the statistical demonstration that there are significant and detectable effects on current generations of the labor market experiences of their racial/ethnic ancestors. [source] RETAIL PRICE REGULATION AND THE OPTION TO DELAYANNALS OF PUBLIC AND COOPERATIVE ECONOMICS, Issue 3 2009Fernando T. Camacho ABSTRACT,:,This paper examines a two-period model of an investment decision in a network industry characterized by demand uncertainty, economies of scale and sunk costs. In the absence of regulation we identify the market conditions under which a monopolist decides to invest early as well as the underlying overall welfare output. In a regulated environment, we consider a monopolist who faces no downstream (final good) competition but is subject to retail price regulation. We identify the welfare-maximizing regulated prices when the unregulated market outcome is set as the benchmark. We show that if the regulator can commit to ex post regulation , that is, regulated prices that are contingent to future demand realization , then regulated prices that allow the firm to recover its total costs of production are welfare-maximizing. Thus, under ex post price regulation there is no need to compensate the regulated firm for the option to delay that it foregoes when investing today. We argue, however, that regulators cannot make this type of commitment and, therefore, price regulation is often ex ante , that is, regulated prices are not contingent to future demand. We show that the optimal ex ante regulation, and the extent to which regulated prices need to incorporate an option to delay, depend on the nature of demand uncertainty. [source] A NOTE ON MARKET COVERAGE IN VERTICAL DIFFERENTIATION MODELS WITH FIXED COSTSBULLETIN OF ECONOMIC RESEARCH, Issue 1 2008Pei-Cheng Liao L11; L13 ABSTRACT With fixed costs of quality improvement, we find that a covered market outcome with an interior solution in the price stage is not a Nash equilibrium. When the degree of consumer heterogeneity is high (low) enough, an uncovered market outcome (a covered market outcome with a corner solution in the price stage) is the only Nash equilibrium. When the degree of consumer heterogeneity is moderate, both of the two market outcomes are Nash equilibria, but an uncovered market outcome yields higher social welfare than a covered market outcome with a corner solution in the price stage. [source] An Equilibrium Theory of Learning, Search, and WagesECONOMETRICA, Issue 2 2010Francisco M. Gonzalez We examine the labor market effects of incomplete information about the workers' own job-finding process. Search outcomes convey valuable information, and learning from search generates endogenous heterogeneity in workers' beliefs about their job-finding probability. We characterize this process and analyze its interactions with job creation and wage determination. Our theory sheds new light on how unemployment can affect workers' labor market outcomes and wage determination, providing a rational explanation for discouragement as the consequence of negative search outcomes. In particular, longer unemployment durations are likely to be followed by lower reemployment wages because a worker's beliefs about his job-finding process deteriorate with unemployment duration. Moreover, our analysis provides a set of useful results on dynamic programming with optimal learning. [source] The Temporary Staffing Industry: Growth Imperatives and Limits to Contingency,ECONOMIC GEOGRAPHY, Issue 4 2002Nik Theodore Abstract: The temporary staffing industry (TSI) in the United States has enjoyed explosive growth since the 1970s, during which time the market for temporary labor has become increasingly complex and diverse. Rather than focus, as has typically been done, on the wider labor market effects of this sustained expansion in temporary employment, this article explores patterns and processes of industrial restructuring in the TSI itself. The analysis reveals a powerfully recursive relationship among evolving TSI business practices, the industry's strategies for building and extending the market, and urban labor market outcomes as the sector has grown through a series of qualitatively differentiated phases of development or "modes of growth." Moreover, the distinctive character of the TSI's geographic rollout raises a new set of questions concerning, inter alia, the links between temping and labor market deregulation, the nature of local competition, the scope for and limits of value-adding strategies, and the emerging global structure of the temp market. This idiosyncratic industry,which has been a conspicuous beneficiary of growing economic instability,has, throughout the past three decades, restructured continuously through a period of sustained but highly uneven growth. In so doing, it has proved to be remarkably inventive in extending the market for contingent labor, but has encountered a series of (possibly structural) obstacles to further expansion in its domestic market. These obstacles, in turn, have triggered an unprecedented phase of international integration in the TSI, along with a new mode of development,global growth. [source] The impact of health on individual retirement plans: self-reported versus diagnostic measuresHEALTH ECONOMICS, Issue 7 2010Nabanita Datta Gupta Abstract We reassess the impact of health on retirement plans of older workers using a unique survey-register match-up which allows comparing the retirement effects of potentially biased survey self-reports of health to those of unbiased register-based diagnostic measures. The aim is to investigate whether even for narrowly defined health measures a divergence exists in the impacts of health on retirement between self-reported health and objective physician-reported health. Our sample consists of older workers and retirees drawn from a Danish panel survey from 1997 and 2002, merged to longitudinal register data. Estimation of measurement error-reduced and selection-corrected pooled OLS and fixed effects models of retirement show that receiving a medical diagnosis is an important determinant of retirement planning for both men and women, in fact more important than economic factors. The type of diagnosis matters, however. For men, the largest reduction in planned retirement age occurs for a diagnosis of lung disease while for women it occurs for musculo-skeletal disease. Except for cardiovascular disease, diagnosed disease is more influential in men's retirement planning than in women's. Our study provides evidence that men's self-report of myalgia and back problems and women's self-report of osteoarthritis possibly yield biased estimates of the impact on planned retirement age, and that this bias ranges between 1.5 and 2 years, suggesting that users of survey data should be wary of applying self-reports of health conditions with diffuse symptoms to the study of labor market outcomes. On the other hand, self-reported cardiovascular disease such as high blood pressure does not appear to bias the estimated impact on planned retirement. Copyright © 2009 John Wiley & Sons, Ltd. [source] Disentangling the effects of morbidity and life expectancy on labor market outcomesHEALTH ECONOMICS, Issue 6 2002M. Christopher Auld Abstract Using a unique longitudinal dataset tracking the experiences of patients diagnosed with HIV+ disease, this paper develops and estimates a model capable of recovering the effect of revisions in life expectancy on labor market outcomes. The data allow us to estimate the effect of changes in health status (as objectively measured by CD4 counts) and the impact of learning that one is HIV+, which we interpret as a negative shock to life expectancy. Both parametric and distribution-free models robustly indicate that decreases in health have little effect on labor demand but decrease probability of employment. We conclude that, in this sample, negative association between income and health is attributable mostly to the effect of altered incentives induced by changes in life expectancy. Copyright © 2002 John Wiley & Sons, Ltd. [source] The performance of sample selection estimators to control for attrition biasHEALTH ECONOMICS, Issue 5 2001Astrid Grasdal Abstract Sample attrition is a potential source of selection bias in experimental, as well as non-experimental programme evaluation. For labour market outcomes, such as employment status and earnings, missing data problems caused by attrition can be circumvented by the collection of follow-up data from administrative registers. For most non-labour market outcomes, however, investigators must rely on participants' willingness to co-operate in keeping detailed follow-up records and statistical correction procedures to identify and adjust for attrition bias. This paper combines survey and register data from a Norwegian randomized field trial to evaluate the performance of parametric and semi-parametric sample selection estimators commonly used to correct for attrition bias. The considered estimators work well in terms of producing point estimates of treatment effects close to the experimental benchmark estimates. Results are sensitive to exclusion restrictions. The analysis also demonstrates an inherent paradox in the ,common support' approach, which prescribes exclusion from the analysis of observations outside of common support for the selection probability. The more important treatment status is as a determinant of attrition, the larger is the proportion of treated with support for the selection probability outside the range, for which comparison with untreated counterparts is possible. Copyright © 2001 John Wiley & Sons, Ltd. [source] Depression and Retirement in Late Middle-Aged U.S. WorkersHEALTH SERVICES RESEARCH, Issue 2 2008Jalpa A. Doshi Objective. To determine whether late middle-aged U.S. workers with depression are at an increased risk for retirement. Data Source. Six biennial waves (1992,2002) of the Health and Retirement Study, a nationally representative panel survey of noninstitutionalized 51,61-year-olds and their spouses started in 1992. Study Design. Workers aged 53,58 years in 1994 were followed every 2 years thereafter, through 2002. Depression was coded as lagged time-dependent variables measuring active depression and severity of depression. The main outcome variable was a transition to retirement which was measured using two distinct definitions to capture different stages in the retirement process: (1) Retirement was defined as a transition out of the labor force in the sample of all labor force participants (N=2,853); (2) In addition a transition out of full time work was used as the retirement definition in the subset of labor force participants who were full time workers (N=2,288). Principal Findings. In the sample of all labor force participants, the presence of active depression significantly increased the hazard of retirement in both late middle-aged men (adjusted OR: 1.37 [95 percent CI 1.05, 1.80]) and women (adjusted OR: 1.40 [95 percent CI 1.10, 1.78]). For women, subthreshold depression was also a significant predictor of retirement. In the sample of full time workers, the relationship between depression and retirement was considerably weaker for women yet remained strong for men. Conclusions. Depression and depressive symptoms were significantly associated with retirement in late middle-aged U.S. workers. Policymakers must consider the potentially adverse impact of these labor market outcomes when estimating the cost of untreated depression and evaluating the value of interventions to improve the diagnosis and treatment of depression. [source] The impact of training and demographics in WIA program performance: A statistical analysisHUMAN RESOURCE DEVELOPMENT QUARTERLY, Issue 4 2009Richard W. Moore The Workforce Investment Act (WIA) measures participant labor market outcomes to drive program performance. This article uses statistical analysis to examine the relationship between participant characteristics and key outcome measures in one large California local WIA program. This study also measures the impact of different training interventions on program outcomes while controlling for participant characteristics. The findings suggest that adjusting future performance measures for participant characteristics would create more valid performance measures. Further, we find that WIA training interventions do not yield consistent positive labor market outcomes after controlling for participant demographics. Finally, we recommend directions for future research. [source] Globalization, Financial Crisis, and Industrial Relations: The Case of South KoreaINDUSTRIAL RELATIONS, Issue 3 2003Dong-one Kim The South Korean case shows that the globalization trend in the 1990s and the 1997,1998 financial crisis had two contrasting effects on labor rights. First, these developments resulted in negative labor market outcomes: increased unemployment, greater use of contingent workers, and widened income inequalities. On the other hand, they led international organizations such as the Organization for Economic Co-operation and Development (OECD) and the International Labor Organization (ILO) to play important roles in improving labor standards in Korea. Also, continued restructuring drives prompted unions to merge into industrial unions and wage strikes with increased frequency and intensity. Contrary to the common belief, the Korean case shows that globalization and intensified competition resulted in stronger and strategic responses from labor by stimulating employees' interest in and reliance on trade unionism. [source] Enlargement and the labour market: perception, theory and factINDUSTRIAL RELATIONS JOURNAL, Issue 6 2004Mike Ingham ABSTRACT Favourable labour market outcomes are essential for economic and social cohesion within the newly enlarged European Union. However, Eurobarometer evidence indicates that many in the 10 incoming countries are not convinced that membership will deliver such a result. Also, there is no unambiguous theoretical framework that suggests otherwise. A more optimistic scenario can be obtained by reference to the experiences of earlier low-income Community entrants during their first years of membership, although long-term convergence has remained elusive. [source] Retrenching or renovating the Australian welfare state: the paradox of the Howard government's neo-liberalismINTERNATIONAL JOURNAL OF SOCIAL WELFARE, Issue 1 2009Philip Mendes Most conventional studies of the former Australian Liberal,National Coalition government refer to its neo-liberal ideological agenda: its concern to reduce government interference with free market outcomes by restricting access to social security payments. That analysis suggests a substantial retrenchment of the Australian welfare state based on redirecting responsibility for the disadvantaged from government to corporations, private individuals and families. Yet there is increasing evidence from reliable sources that the government has not reduced social expenditure, and that increasing resources have been directed, particularly via the family payments system, towards some disadvantaged groups such as low-income families and the aged. Utilising the theory of the US political scientist Paul Pierson, this article explores the joint paradox of Australian neo-liberalism: the punitive treatment of some disadvantaged groups such as the disabled and lone parents versus the generosity towards other groups and, more generally, the growth rather than decline in social expenditure. The author asks what this paradox tells us about the likely future of the welfare state in Australia and elsewhere. [source] Spot water markets and risk in water supplyAGRICULTURAL ECONOMICS, Issue 2 2005Javier Calatrava Water markets; Economic risk; Water availability; Irrigated agriculture Abstract Water availability patterns in semiarid regions are typically extremely variable. Even in basins with a highly developed infrastructure, users are subject to unreliable water supplies, incurring substantial economic losses during periods of scarcity. More flexible instruments, such as voluntary exchanges of water among users, can help users to reduce risk exposure. This article looks at the effects of spot water markets on the economic risk caused by water availability variations. Our theoretical and empirical risk analyses are based on the random profits of water users. Profit probability density functions are formally and graphically characterized for both water sellers and buyers under several possible market outcomes. We conclude from this analysis that, where water supply is stochastic, water markets unambiguously reduce both parties' risk exposure. The empirical study is conducted on an irrigation district in the Guadalquivir Valley (Southern Spain), where there is a high probability of periods of extreme water scarcity. Water demand functions for the district representative irrigators and a spatial equilibrium model are used to simulate market exchanges and equilibrium. This programming model is combined with statistical simulation techniques. We show that the profit probability distribution of a representative irrigator is modified if water exchanges are authorized, leading to risk reductions. Results also indicate that if the market were extended to several districts and users that are subject to varying hydrological risk exposure, extremely low-profit events would be less likely to occur. In sum, we show that exchanging water in annual spot markets can reduce farmers' economic vulnerability caused by water supply variability across irrigation seasons. These results support the water policy reform carried out in Spain in 1999 to allow for voluntary water exchanges among right holders. [source] The labour market effects of globalization in KenyaJOURNAL OF INTERNATIONAL DEVELOPMENT, Issue 1 2004Damiano Kulundu Manda Since the 1980s, Kenya has been gradually integrating with the global economy. Using both industry-level and firm-level data, the paper examines the effects of globalization on employment and earnings in the Kenyan manufacturing sector. The industry-level analysis suggests that the overall effect of international trade on manufacturing employment has been negative in the 1990s. The firm-level analysis indicates that less skilled workers experienced losses in earnings, and that the inequality in earnings between skilled and unskilled workers increased during this period. This suggests that globalization has been associated with adverse labour market outcomes in Kenya. Copyright © 2004 John Wiley & Sons, Ltd. [source] WELCOME TO THE NEIGHBORHOOD: HOW CAN REGIONAL SCIENCE CONTRIBUTE TO THE STUDY OF NEIGHBORHOODS?,JOURNAL OF REGIONAL SCIENCE, Issue 1 2010Ingrid Gould Ellen ABSTRACT We argue in this paper that neighborhoods are highly relevant for the types of issues at the heart of regional science. First, residential and economic activity takes place in particular locations, and particular neighborhoods. Many attributes of those neighborhood environments matter for this activity, from the physical amenities, to the quality of the public and private services received. Second, those neighborhoods vary in their placement in the larger region and this broader arrangement of neighborhoods is particularly important for location choices, commuting behavior and travel patterns. Third, sorting across these neighborhoods by race and income may well matter for educational and labor market outcomes, important components of a region's overall economic activity. For each of these areas we suggest a series of unanswered questions that would benefit from more attention. Focused on neighborhood characteristics themselves, there are important gaps in our understanding of how neighborhoods change , the causes and the consequences. In terms of the overall pattern of neighborhoods and resulting commuting patterns, this connects directly to current concerns about environmental sustainability and there is much need for research relevant to policy makers. And in terms of segregation and sorting across neighborhoods, work is needed on better spatial measures. In addition, housing market causes and consequences for local economic activity are under researched. We expand on each of these, finishing with some suggestions on how newly available data, with improved spatial identifiers, may enable regional scientists to answer some of these research questions. [source] New Evidence of the Effect of Transaction Costs on Residential Mobility,JOURNAL OF REGIONAL SCIENCE, Issue 4 2005Jos Van Ommeren Transaction costs are thought to cause suboptimal consumption of housing but may also negatively affect labor market outcomes. In the current paper, we demonstrate empirically for the Netherlands that transaction costs have a strong negative effect on the owners' probability of moving. Under a range of different specifications, it appears that a 1 percent-point increase in the value of transaction costs,as a percentage of the value of the residence,decreases residential mobility rates by (at least) 8 percent. The estimates imply that ownership to ownership mobility rates would be substantially higher in the absence of the current 6 percent ad valorem buyer transaction tax. Our estimates are consistent with the observation that in the Netherlands ad valorem transaction costs mainly consist of buyer transaction costs. [source] Damages Caps, Insurability, and the Performance of Medical Malpractice InsuranceJOURNAL OF RISK AND INSURANCE, Issue 1 2005W. Kip Viscusi This article uses the complete property-casualty insurance files of the National Association of Insurance Commissioners from 1984 to 1991 to assess the effect of medical malpractice reforms pertaining to damages levels and the degree to which these damages are insurable. Limits on noneconomic damages were most influential in affecting insurance market outcomes. Several punitive damages variables specifically affected the medical malpractice insurance market, including limits on punitive damage levels, prohibitions of the insurability of punitive damages, and prohibition of punitive damages awards. Estimates for insurance losses, premiums, and loss ratios indicate effects of reform in the expected directions, where the greatest constraining effects were for losses. The quantile regression analysis of losses indicates that punitive damages reforms and limits were most consequential for firms at the high end of the loss spectrum. Tort reforms also enhanced insurer profitability during this time period. [source] Experimental evidence on trading behavior, market efficiency and price formation in double auctions with unknown trading durationMANAGERIAL AND DECISION ECONOMICS, Issue 8 2005Darren Duxbury The reasons for the highly efficient market outcomes observed under the double auction remain unclear. This paper presents a series of experimental financial markets designed to investigate the importance of unknown trading period duration on trading behavior and the convergence tendencies of such markets. Using panel data techniques the results support the conclusions that individuals generally display more aggressive trading strategies, trading earlier in a period, and that markets exhibit reduced levels of informational efficiency when unknown duration is present. Markets with imperfect information structures are also studied and, in a unique result, are associated with significantly slower rates of trade, as traders become more cautious over their trading strategies. Investigation of the price formation process provides evidence that the pricing error varies over time and the estimation of a fixed effects model provides unique support that learning effects and unknown trading period duration influence the price formation process. Future refinement of theoretical models of the price formation process or institutions of exchange should recognize the effect of unknown trading period duration on market behavior, along with potential learning effects. Copyright © 2005 John Wiley & Sons, Ltd. [source] R&D spillovers and strategic delegation in oligopolistic contestsMANAGERIAL AND DECISION ECONOMICS, Issue 3 2004Matthias Kräkel Considering oligopolistic contests with R&D spillovers and strategic delegation three results can be obtained: (1) There exist multiple asymmetric equilibria where one owner highly favors sales as a basis for his manager's incentives which drives the other firm out of the market. (2) If R&D spillovers are zero, a managerial firm will have a strong strategic advantage when competing with an entrepreneurial firm. If both owners endogenously decide about delegation, each owner's dominant strategy will be to delegate, given that the manager's reservation value is not too large. (3) If R&D spillovers are maximal, collusive market outcomes become very likely, which makes strategic delegation less important. Copyright © 2004 John Wiley & Sons, Ltd. [source] Stereotypes, Asian Americans, and Wages: An Empirical Strategy Applied to Computer Use at WorkAMERICAN JOURNAL OF ECONOMICS AND SOCIOLOGY, Issue 2 2009Sanae Tashiro This article examines the effect on wages of the Asian-American stereotype as mathematically and technically adept, and the role this stereotype may play in explaining racial wage differences. We propose an empirical strategy to examine the influence of stereotypes on labor market outcomes, with a specific application to the wage premium associated with computer use at work. Using Current Population Survey data, ordinary least squares estimates do not provide compelling evidence that a positive stereotype affects wages for Asian Americans. [source] Persistent Advantage or Disadvantage?: Evidence in Support of the Intergenerational Drag HypothesisAMERICAN JOURNAL OF ECONOMICS AND SOCIOLOGY, Issue 2 2001William Darity By utilizing the Integrated Public Use Microdata Series (IPUMS) and a measure of occupational prestige (OCCSCORE) as a labor market outcome, the authors examine variations in the degree of labor market discrimination faced by several ethnic and racial groups in the United States between 1880 and 1990. Results demonstrate that the sharpest decline in labor market discrimination against blacks occurred between 1960 and 1980. For black males the extent of labor market discrimination was greater in all census years in IPUMS after 1880 until 1970, evidence contradicting the conventional expectation that market-based discrimination will decline progressively over time by dint of competitive pressure. Finally, after replicating George Borjas' "ethnic capital" exercise, the authors pool the 1880, 1900, and 1910 data to determine the relative magnitude of a group's gains and losses in occupational prestige due to group advantage or disadvantage in human capital endowments and due to favorable or unfavorable treatment (nepotism or discrimination) of those endowments in the labor market. The authors then examine statistically whether the group human capital advantage or disadvantage and group exposure to nepotism or discrimination at the turn of the century affects labor market outcomes for their descendants today. Results indicate strong effects of the past on present labor market outcomes. Hence, the essence of the study is the statistical demonstration that there are significant and detectable effects on current generations of the labor market experiences of their racial/ethnic ancestors. [source] Disability Support Pension Recipients: Who Gets Off (and Stays Off) Payments?THE AUSTRALIAN ECONOMIC REVIEW, Issue 1 2007Lixin Cai We use Centrelink payment records on Disability Support Pension (DSP) recipients over the period 1995 to 2002 to investigate individual transitions off payments. Our findings are consistent with the existence of a close correspondence between disability benefit receipt and labour market outcomes: entry to DSP via unemployment benefits is associated with substantially reduced prospects of exiting DSP, while employment during the DSP spell is associated with not only an increased probability of exiting DSP, but also more success in staying off payments once an exit has been made. A further finding of our analysis is that persons who exit DSP due to take-up of employment have a relatively high rate of return to payments compared with persons who exit for other reasons, and indeed exhibit a high propensity to cycle off and on payments. [source] WHY SOCIAL PREFERENCES MATTER , THE IMPACT OF NON-SELFISH MOTIVES ON COMPETITION, COOPERATION AND INCENTIVESTHE ECONOMIC JOURNAL, Issue 478 2002Ernst Fehr A substantial number of people exhibit social preferences, which means they are not solely motivated by material self-interest but also care positively or negatively for the material payoffs of relevant reference agents. We show empirically that economists fail to understand fundamental economic questions when they disregard social preferences, in particular, that without taking social preferences into account, it is not possible to understand adequately (i) effects of competition on market outcomes, (ii) laws governing cooperation and collective action, (iii) effects and the determinants of material incentives, (iv) which contracts and property rights arrangements are optimal, and (v) important forces shaping social norms and market failures. [source] Schooling, Literacy, Numeracy and Labour Market SuccessTHE ECONOMIC RECORD, Issue 245 2003Barry R. Chiswick The present paper uses data from the 1996 Australian Aspects of Literacy survey to examine the effects on labour market outcomes of literacy, numeracy and schooling. The survey includes a range of literacy and numeracy variables that are highly intercorrelated. A ,general to specific' approach identifies the most relevant literacy and numeracy variables. Including the others adds little explanatory power. Among males and females separately, approximately half of the total effect of schooling on labour force participation and on unemployment can be attributed to literacy and numeracy (the indirect effect) and approximately half to the direct effect of schooling. There is apparently no indirect effect of labour market experience through literacy and numeracy on participation or unemployment. The direct and total effects of experience are the same. Similarly, the direct and total effects of literacy and numeracy are reasonably similar to each other. [source] Do Selection Criteria Make a Difference?: Visa Category and the Labour Market Status of Immigrants to AustraliaTHE ECONOMIC RECORD, Issue 232 2000DEBORAH A. COBB-CLARK This paper assesses the role of selection criteria in the immigrant settlement process. Do skill-based immigrants have higher participation and employment rates than family-based immigrants? Does this represent a head start or a persistent labour market advantage? The Longitudinal Survey of Immigrants to Australia is used to address these questions. Generally, migrants selected for their skills have better labour market outcomes. Over time, the relative gap in participation rates increases, while the gap in employment rates decreases. Net of visa category, outcomes are better for native English speakers and for those who visited Australia prior to migration. [source] Active labour market policy in East GermanyTHE ECONOMICS OF TRANSITION, Issue 4 2009Waiting for the economy to take off Matching estimation; causal effects; programme evaluation; panel data Abstract We investigate the effects of the most important East German active labour market programmes on the labour market outcomes of their participants. The analysis is based on a large and informative individual database derived from administrative data sources. Using matching methods, we find that over a horizon of 2.5 years after the start of the programmes, they fail to increase the employment chances of their participants in the regular labour market. However, the programmes may have other effects for their participants that may be considered important in the especially difficult situation experienced in the East German labour market. [source] Is the Corporate Loan Market Globally Integrated?THE JOURNAL OF FINANCE, Issue 6 2007A Pricing Puzzle ABSTRACT We offer evidence that interest rate spreads on syndicated loans to corporate borrowers are economically significantly smaller in Europe than in the United States, other things equal. Differences in borrower, loan, and lender characteristics do not appear to explain this phenomenon. Borrowers overwhelmingly issue in their natural home market and bank portfolios display home bias. This may explain why pricing discrepancies are not competed away, though their causes remain a puzzle. Thus, important determinants of loan origination market outcomes remain to be identified, home bias appears to be material for pricing, and corporate financing costs differ across Europe and the United States. [source] | ||||||||||||||||||||||||||||||||||