Template-type: ReDIF-Paper 1.0 Author-Name: Giovanna D'Adda Author-Email: giovanna.dadda@unimi.it Author-Name: Simone Ferro Author-Name: Tommaso Frattini Author-Name: Alessio Romarri Title: Riders in the Smog: How Air Pollution Affects Workers in Urban Environments Abstract: Using large-scale high-granularity data from a food delivery platform and granular pollution and weather information, we study how PM2.5 fluctuations affect riders’ absenteeism, productivity, and accidents. Exploiting exogenous pollution variation from inverse boundary layer height, we find that higher pollution increases absenteeism for all workers and raises delivery times and accident rates only among (e-)bike riders, who must exert physical effort while working. Affected workers compensate productivity losses by working longer hours. Monetary incentives mitigate the effects on absenteeism but do not offset the decline in productivity and appear to exacerbate accident risk. Classification-JEL: H4, J28, Q52 Keywords: Air Pollution; Food Delivery Riders; Absenteeism; Labor Productivity; Workplace Safety Length: 62 pages Creation-Date: 2026-11-16 Revision-Date: 2026-05-13 Number: 506 Handle: RePEc:csl:devewp:506 File-URL: https://dagliano.unimi.it/wp-content/uploads/2025/11/Riders-in-the-Smog_Nov25.pdf File-Format: application/pdf File-Size: 1.793 Template-type: ReDIF-Paper 1.0 Author-Name: Paolo E. Giordani Author-Email: paolo.giordani@uniroma2.it Author-Name: Alberto Petrucci Author-Name: Alberto Franco Pozzolo Title: Infrastructures and Productivity: A Country-Sector Panel Analysis Abstract: This paper investigates the impact of physical infrastructures on sectoral total factor productivity (TFP). In the first part, a neoclassical growth model with multiple productive sectors and public capital (in the form of infrastructures) uncovers a long-run relationship between infrastructures and sectoral TFP. In the second part, a panel-cointegration analysis evaluates the long-run impact of 4 distinct types of infrastructures-transport, energy, ICT, health-on the TFPs of 22 manufacturing sectors in a sample of 65 (developed and emerging) countries between 1995 and 2018. We find that infrastructures are a positive and significant determinant of sectoral TFPs. A panel error-correction model also confirms that causality runs from infrastructures to TFPs. These results are robust to further empirical analysis conducted on sub-samples segmented by several dimensions. Our findings can inform policy in designing targeted interventions and prioritizing investment. Classification-JEL: E22; H54; O47; O33; C33 Keywords: Public infrastructures, Sectoral productivity, Total factor productivity (TFP), Panel cointegration, Trade-based TFP estimation, Panel error correction Length: 49 pages Creation-Date: 2025-07-16 Number: 505 Handle: RePEc:csl:devewp:505 File-URL: https://dagliano.unimi.it/wp-content/uploads/2025/07/WP505.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Andrea Berlanda Author-Email: andrea.berlanda@unipd.it Author-Name: Elisabetta Lodigiani Author-Email: elisabetta.lodigiani@unipd.it Author-Name: Lorenzo Rocco Author-Email: lorenzo.rocco@unipd.it Title: Immigration and Adult Children's Care for Elderly Parents: Evidence from Western Europe Abstract: In this paper, we use the Survey of Health, Ageing, and Retirement in Europe (SHARE), complemented with register data on the share of the foreign population in the European regions, to examine the effects of migration on the level of informal care provided by children to their senior parents. Our main results show that migration decreases informal care among daughters with a university degree, while it increases the provision of informal care among daughters with low-to-medium levels of education. Viceversa, migration has practically no effect on sons’ care provision who remain little involved in care activities. These results depend on the combination of two supply effects. First, migration increases the supply of domestic and personal services, making formal care more affordable and available. Second, as immigrants compete with low-to-medium-educated native workers, while improve the labor market opportunities of the better educated, the supply of informal care can increase among the less educated daughters and decrease among the more educated. Classification-JEL: F22;J14;J22 Keywords: caregiving, home production, immigration, Europe Length: 42 pages Creation-Date: 2025-06-12 Revision-Date: 2025-07-12 Number: 504 Handle: RePEc:csl:devewp:504 File-URL: ttp://dagliano.unimi.it/wp-content/uploads/2025/06/WP504.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Miriam Manchin Author-Email: miriammanchin@gmail.com Author-Name: Alex Newnham Author-Name: Elena Nikolova Title: Fields and Foreign Lands: Pre-Industrial Climate Risk and International Migration Abstract: We study how pre-industrial climate risk during 1500-1800 influenced historical bilateral inward migration and present-day international migration stocks in Europe. Using high-resolution data, we find that one standard deviation increase in historical precipitation decreases the share of today’s migrants in a given location by 0.48 percentage points and also negatively influences historical migration flows. The results only hold in historically rural locations and are driven by climate variability during growing season, suggesting that climate risk affected migration through agriculture. Our findings suggest that the persistent effect of historical climate risk on current migration patterns is through differences in historical prosperity. Classification-JEL: F22;Q54 Keywords: International Migration, Climate Risk, Historical Migration Length: 62 pages Creation-Date: 2025-06-04 Number: 503 Handle: RePEc:csl:devewp:503 File-URL: https://dagliano.unimi.it/wp-content/uploads/2025/06/WP503.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Jacopo Bonan Author-Email: jacopo.bonan@cmcc.it Author-Name: Francesco Granella Author-Name: Stefania Renna Author-Name: Luis Sarmiento Title: The Effect of Air Purifiers in Schools Abstract: We randomize the installation of air purifiers across primary school classrooms to reduce children's exposure to air pollution. The intervention reduces indoor PM 2.5 concentrations by 32% and decreases student absenteeism by 12.5%. We find larger effects among students with higher pre-treatment absenteeism. The impact is also greater when outdoor air pollution is relatively low and diminishes as outdoor pollution intensifies, consistent with non-linear marginal effects of air quality on health. Treated students report fewer respiratory symptoms and exhibit greater awareness of air quality. Each avoided absence day costs approximately €11, yielding a conservative cost-benefit ratio of one-to-nine. Classification-JEL: C93; I21; Q53; Q51 Keywords: Indoor air quality, air purifiers, school absences, randomized controlled trial Length: 42 pages Creation-Date: 2025-04-22 Number: 502 Handle: RePEc:csl:devewp:502 File-URL: ttp://dagliano.unimi.it/wp-content/uploads/2025/04/WP502.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Salvatore Carrozzo Author-Email: salvatore.carrozzo@collaboratore.uniparthenope.it Author-Name: Elisabetta Lodigiani Author-Email: elisabetta.lodigiani@unipd.it Author-Name: Alessandra Venturini Author-Email: alessandra.venturini@unito.it Title: Does Migrants’ Consumption of Cultural Goods Impact Their Economic Integration? Disclosing the culture-to-market pathway Abstract: The consumption of cultural goods can play a crucial role in the social and economic integration of immigrants into their destination country. In this paper, we investigate the effect of the cultural national program, IoStudio, designed to enhance the consumption of cultural goods - by providing free or discount access - among upper secondary students in Italy, on post-secondary investment in education and early labor market conditions among young immigrants. Using data from a unique survey conducted by the Institute for Multiethnic Studies (ISMU) on a representative sample of the entire immigrant population in the Italian Lombardy region and employing a difference-in differences estimator, we find that the IoStudio policy has positive effects on investment in post-secondary education. Additionally, young foreigners exposed to the policy exhibit higher earnings, at least in the short run, when they enter the labour market. We claim that cultural consumption by immigrants is a relevant concern, deserving close attention in terms of increasing social capital and labour market inclusion. Classification-JEL: Z11; J61; J62; I26 Keywords: Cultural participation; migrants; integration; Italy Length: 34 pages Creation-Date: 2025-03-26 Revision-Date: 2025-03-26 Number: 501 Handle: RePEc:csl:devewp:501 File-URL: https://dagliano.unimi.it/wp-content/uploads/2025/03/WP501.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Sabrina Di Addario Author-Email: sabrina.diaddario@bancaditalia.it Author-Name: Michela Giorcelli Author-Email: mgiorcelli@econ.ucla.edu Author-Name: Agata Maida Author-Email: agata.maida@unimi.it Title: Women Inventors: The Legacy of Medieval Guilds Abstract: The share of female inventors remains significantly lower than that of men in both developed and developing countries. This paper studies gender bias in patenting activity, using a unique dataset that matches Italian administrative employer-employee records both to patent data from the European Patent Office (1987-2005) and to municipality-level information on medieval guilds from the Italian Central Archive of State. We empirically verify whether women's low propensity to patent can be explained by the historical local conception of women's role in society, which we measure with the share of women in guild founders from the Middle Ages. The results indicate that the presence of women in Medieval guilds is associated with a higher probability of observing a female inventor and a higher number of yearly patent submissions by women. Classification-JEL: J60 Keywords: patents, women, inventors, guilds Length: 32 pages Creation-Date: 2024-12-20 Number: 500 Handle: RePEc:csl:devewp:500 File-URL: https://dagliano.unimi.it/wp-content/uploads/2024/12/WP500.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Sara Giunti Author-Email: sara.giunti@unimi.it Author-Name: Andrea Guariso Author-Name: Mariapia Mendola Author-Name: Irene Solmone Title: Hacking Anti-Immigration Attitudes and Stereotypes: A Field Experiment in Italian High Schools Abstract: Global demographic shifts have increased population diversity in advanced economies, often leading to anti-immigrant attitudes and discrimination fueled by prejudice and stereotypes. In this paper, we study a short educational program for high-school students aimed at promoting cultural diversity and improving attitudes toward immigration through active learning. To identify the impact of the program, we designed a randomized controlled trial involving 4,500 students from 252 classes across 40 schools in northern Italy. The program led to more positive attitudes and behaviors toward immigrants, especially in more mixed classes. In terms of mechanisms, the intervention reduced students' misperception and changed their perceived norms toward immigration, while it had no impact on implicit bias, empathy, or social contacts. Our findings suggest that anti-immigrant attitudes are primarily driven by sociotropic concerns rather than individual inter-group experience, and that educational programs fostering critical thinking and group discussion in an issue-salient context can correct them. Classification-JEL: F22;J15;F68;H53 Keywords: Ethnic Stereotypes, Social Inclusion Policy, Impact Evaluation, Immigration attitudes Length: 69 pages Creation-Date: 2024-12-19 Number: 499 Handle: RePEc:csl:devewp:499 File-URL: https://dagliano.unimi.it/wp-content/uploads/2024/12/WP499.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Silke Anger Author-Email: silke.anger@iab.de Author-Name: Jacopo Bassetto Author-Email: jacopo.bassetto@unimi.it Author-Name: Malte Sandner Title: Lifting Barriers to Skill Transferability: Immigrant Integration through Occupational Recognition Abstract: While Western countries worry about labor shortages, their institutional barriers to skill transferability prevent immigrants from fully utilizing foreign qualifications. Combining administrative and survey data in a difference-in-differences design, we show that a German reform, which lifted these barriers for non-EU immigrants, led to a 15 percent increase in the share of immigrants with a recognized foreign qualification. Consequently, non-EU immigrants' employment and wages in licensed occupations (e.g., doctors) increased respectively by 18.6 and 4 percent, narrowing the gaps with EU immigrants. Despite the inflow of non-EU immigrants in these occupations, we find no evidence of crowding out or downward wage pressure for natives. Classification-JEL: J24;J31;J62;F22 Keywords: Skill Transferability, Occupational Recognition, Immigrant Integration Length: 86 pages Creation-Date: 2024-11-13 Number: 498 Handle: RePEc:csl:devewp:498 File-URL: https://dagliano.unimi.it/wp-content/uploads/2024/11/WP498.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Sabrina Lucia Di Addario Author-Email: sabrina.diaddario@bancaditalia.it Author-Name: Zhexin Feng Author-Name: Michel Serafinelli Title: Inventors' Coworker Networks and Innovation Abstract: This paper presents direct evidence on how firms' innovation is affected by access to knowledgeable labor through co-worker network connections. We use a unique dataset that matches patent data to administrative employer-employee records from "Third Italy"-a region with many successful industrial clusters. Establishment closures displacing inventors generate supply shocks of knowledgeable labor to firms that employ the inventors' previous co-workers. We estimate event-study models where the treatment is the displacement of a "connected" inventor (i.e., a previous coworker of a current employee of the focal firm). We show that the displacement of a connected inventor significantly increases connected inventors' hiring. Moreover, the improved access to knowledgeable workers raises firms innovative activity. We provide evidence supporting the main hypothesized channel of knowledge transfer through firm-to-firm labor mobility by estimating IV specifications where we use the displacement of a connected inventor as an instrument to hire a connected inventor. Overall, estimates indicate that firms exploit displacements to recruit connected inventors and the improved capacity to employ knowledgeable labor within the network increases innovation. Classification-JEL: J60;O30;J23 Keywords: social connections, firm-to-firm labor mobility, patents, establishment closure Length: 39 pages Creation-Date: 2024-10-24 Number: 497 Handle: RePEc:csl:devewp:497 File-URL: https://dagliano.unimi.it/wp-content/uploads/2024/10/WP497.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Angela Dalmonte Author-Email: angela.dalmonte@guest.unimi.it Author-Name: Tommaso Frattini Author-Email: tommaso.frattini@unimi.it Author-Name: Sofia Giorgini Title: The Overeducation of Immigrants in Europe Abstract: This paper explores the overeducation of tertiary-educated migrants in European labour markets. Using data from the European Labour Force Survey (2012-2022), we show that immigrants, particularly those from non-EU countries, are significantly more likely to be overeducated than natives. Despite a general decline in overeducation levels for all groups over time, the immigrant-native gap remains, especially for foreign-educated migrants. Furthermore, the likelihood of overeducation for foreign-educated migrants increases until 15-19 years after migration, a pattern consistent across all areas of origin and migration cohorts. Importantly, differences in educational quality between origin and destination countries do not primarily account for these overeducation differentials. The findings underscore the need for policies that better align immigrants' skills with labour market demands in Europe to avoid the waste of valuable immigrants' skills, which are harmful not only to migrants but to the economies of receiving countries too. Classification-JEL: J15;J61;F22 Keywords: EU labour markets, immigration, Skill mismatch Length: 62 pages Creation-Date: 2024-10-18 Number: 496 Handle: RePEc:csl:devewp:496 File-URL: https://dagliano.unimi.it/wp-content/uploads/2024/10/WP496.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Mirko Draca Author-Email: max.nathan@ucl.ac.uk Author-Name: Max Nathan Author-Name: Viet Nguyen-Tien Author-Name: Juliana Oliveira-Cunha Author-Name: Anna Rosso Author-Name: Anna Valero Title: The New Wave? The Role of Human Capital and STEM Skills in Technology Adoption in the UK Abstract: Which types of human capital influence the adoption of advanced technologies? We study the skill-biased adoption of information and communication technologies (ICT) across two waves in the UK. Specifically, we compare the 'new wave' of cloud and machine learning / AI technologies during the 2010s-pre-LLM-with the previous wave of personal computer adoption in the 1990s and early 2000s. At the area-level we see the emergence of a distinct STEM-biased adoption effect for the second wave of cloud and machine learning / AI technologies (ML/AI), alongside a general skill-biased effect. A one-standard deviation increase in the baseline share of STEM workers in areas is associated with around 0.3 of a standard deviation higher adoption of cloud and ML/AI. We find similar effects at the firm level where we are able to test for the influence of a wide range of skills. In turn, this STEM-biased adoption pattern has encouraged the concentration of these technologies, leading to more acute differences between high-tech and low-tech areas and firms. In contrast with classical technology diffusion, recent cloud and ML/AI adoption in the UK seems more likely to widen inequalities than reduce them. Classification-JEL: D22;J24;O33;R11 Keywords: Technology Diffusion, ICT, Human Capital, STEM Length: 51 pages Creation-Date: 2024-10-20 Number: 495 Handle: RePEc:csl:devewp:495 File-URL: https://dagliano.unimi.it/wp-content/uploads/2024/10/WP495.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Andrew Clare Author-Name: Carlos Manuel Pinheiro Author-Name: Alberto Franco Pozzolo Title: Do NEDs influence ESG corporate performance? Abstract: Being uninvolved in day-to-day management of a company, Non-Executive Directors (NEDs) are arguably well-suited to oversee the drive for more sustainable business practices. Our study explores the correlation between the professional capital of NEDs and ESG performance for a sample of FTSE-350 listed companies spanning the years 2012 to 2022. Our findings reveal that board connectedness, particularly the simultaneous presence on boards of companies exhibiting superior ESG performance, significantly influences a company's overall ESG score. Our results highlight the relevance of board capital on corporate ESG performance, with practical implications for corporate governance. Classification-JEL: G34; M14; D22; Q56 Keywords: ESG; Corporate Governance; Boards: Non-executive directors; Network Centrality Creation-Date: 2024-08-06 Number: 494 Handle: RePEc:csl:devewp:494 File-URL: https://dagliano.unimi.it/wp-content/uploads/2024/08/WP494.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Richard Daramola Author-Email: daramor@scf.edu Author-Name: Md Shahadath Hossain Author-Email: mhossai7@central.uh.edu Author-Name: Harounan Kazianga Author-Name: Karim Nchare Title: The Lasting Effects of Early Childhood Interventions: The National Vaccination Commando Program in Burkina Faso Abstract: This study evaluates the long-term impacts of the National Vaccination Commando Program, an early childhood health intervention in Burkina Faso, during the 1980s. Using a difference-in-differences approach, we find significant reductions in child mortality and improvements in educational attainment, including increased primary school completion rates. We also find significant positive effects on adult employment and agricultural productivity, yielding a substantial rate of return on the initial health intervention. These findings underscore the lasting benefits of early childhood health interventions in low-income countries. Classification-JEL: D61; I15; I25; O12; 013; O15 Keywords: Early Childhood Interventions, Vaccination, Measles, Long-term Impacts, Economic Returns, Burkina Faso Creation-Date: 2024-02-14 Number: 493 Handle: RePEc:csl:devewp:493 File-URL: https://dagliano.unimi.it/wp-content/uploads/2024/02/WP493.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Giuseppe Cavaliere Author-Name: Graziano Moramarco Author-Name: Alireza Naghavi Title: Intellectual Property Rights and the Efficiency of International Production Networks: Evidence from the Automotive Industry Abstract: This paper investigates the potential benefits of intellectual property rights (IPR) institutions for international production networks. Using unique data on manufacturer-supplier linkages in the automotive industry, we establish a positive empirical relationship between the productivity and efficiency of manufacturing firms and IPR protection in their suppliers’ locations. Notably, IPRs do not have the same impact on ownership networks, and protection of physical property rights does not generate any improvement in performance. We confirm that the results are not driven by other firm-level characteristics and address potential endogeneity concerns by employing a novel gravity-based IV approach, followed by a GMM analysis. Classification-JEL: F21; F23; L14; L25; L62; O34; G32 Keywords: International production networks, Intellectual property rights, Ownership, Internalization, Automotive industry, Knowledge dissipation, Firm efficiency Creation-Date: 2024-01-16 Number: 492 Handle: RePEc:csl:devewp:492 File-URL: https://dagliano.unimi.it/wp-content/uploads/2024/01/WP492.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: J. Bonan Author-Name: C. Cattaneo Author-Name: G. d’Adda Author-Name: A. Galliera Author-Name: M. Tavoni Title: Widening the scope: the direct and spillover effects of nudging water efficiency in the presence of other behavioral interventions Abstract: Policymakers and firms use behavioral interventions to promote sustainable development in various domains. Correctly evaluating the impacts of a nudge on behavior and satisfaction requires looking beyond the targeted domain and assessing its interactions with other similar interventions. Existing evidence on these aspects is limited, leading to potential misestimation of the cost-effectiveness of this type of intervention and poor guidance on how to design them best. Through a large-scale randomized controlled trial implemented with a multi-resource utility company, we test the impact of a social information campaign to nudge water conservation over two years. We find that the water nudge significantly decreases water and electricity usage, but not gas. The effect is driven by customers who do not receive nudges targeting the other resources. Customers receiving the water report are also significantly less likely to deactivate their gas and electricity contracts, regardless of whether they receive other reports. Our results suggest that multiple nudges strain users’ limited attention and ability to enact conservation efforts. Users’ constraints in attending to multiple stimuli pose important challenges for designing policy interventions to foster sustainable practices. Classification-JEL: Q5; Q25; D9 Keywords: Social information, spillover effects, resource conservation Creation-Date: 2023-12-12 Number: 491 Handle: RePEc:csl:devewp:491 File-URL: https://dagliano.unimi.it/wp-content/uploads/2023/12/WP491.pdf File-Format: application/pdf File-Size: 683 Template-type: ReDIF-Paper 1.0 Author-Name: J. Bonan Author-Name: C. Cattaneo Author-Name: G. d’Adda Author-Name: A. Galliera Author-Name: M. Tavoni Title: Social Norms and Economic Incentives: An Experimental Study on Household Waste Management Abstract: We study the introduction of a social information program on waste disposal in a setting characterized by varying economic incentives. Households pay for unsorted waste a fixed amount if their yearly disposal is below a pre-defined cap, and pay per disposal after exceeding the cap. We randomise the receipt of a report informing customers of their disposal relative to that of similar neighbours. An additional treatment couples the social comparison with information on the customer’s disposal cap. We find that the report containing the social norm alone leads to a 7% reduction in the volume of unsorted waste, while making the cap salient reduces the effectiveness of the social norm. Both types of treatments have the same effect on the likelihood of exceeding the disposal cap. The reduction in unsorted waste is partly achieved through an increase in waste sorting, and is not accompanied by any increase in illegal disposals or a decrease in the quality of sorted waste. Our results confirm the effectiveness of descriptive norms in coordinating behaviour in a novel decision domain and in the absence of economic benefits resulting from changing behaviour. They indicate that their effectiveness as focal points is undermined by the provision of alternative reference points. Classification-JEL: C93; D90; Q53 Keywords: Field experiments, household waste, social norm, norm-based feedback Creation-Date: 2023-12-12 Number: 490 Handle: RePEc:csl:devewp:490 File-URL: https://dagliano.unimi.it/wp-content/uploads/2023/12/WP490.pdf File-Format: application/pdf File-Size: 1.442 Template-type: ReDIF-Paper 1.0 Author-Name: Francesco Fasani Author-Workplace-Name: University of Milan, CEPR, CReAM, and IZA Author-Name: Tommaso Frattini Author-Workplace-Name: University of Milan, LdA, CEPR, CReAM, and IZA Author-Name: Maxime Pirot Author-Workplace-Name: University of Milan Title: From Refugees to Citizens: Labor Market Returns to Naturalization Abstract: Is naturalization an effective tool to boost refugees’ labor market integration? We address this novel empirical question by exploring survey data from 21 European countries and leveraging variation in citizenship laws across countries, time, and migrant groups as a source of exogenous variation in the probability of naturalization. We find that obtaining citizen status allows refugees to close their gaps in labor market outcomes relative to non-refugee migrants while having non-significant effects on the latter group. We then further explore the heterogeneity of returns to citizenship in a Marginal Treatment Effect framework, showing that migrants with the lowest propensity to naturalize would benefit the most if they did. This reverse selection on gains can be explained by policy features that make it harder for more vulnerable migrant groups to obtain citizenship, suggesting that a relaxation of eligibility constraints would yield benefits for both migrants and host societies. Classification-JEL: J15; J61; F22 Keywords: Forced migration, citizenship, asylum policy Length: 64 pages Creation-Date: 2023-12-01 Revision-Date: 2024-06-11 Number: 489 Handle: RePEc:csl:devewp:489 File-URL: https://dagliano.unimi.it/wp-content/uploads/2024/06/WP489.pdf File-Format: application/pdf File-Size: 1090 Template-type: ReDIF-Paper 1.0 Author-Name: Marco Compagnoni Author-Email: marco.compagnoni@unitn.it Author-Workplace-Name: Dept. of Economics and Management, University of Trento (Italy) Author-Name: Marco Grazzi Author-Workplace-Name: Dept. of Economic Policy, Catholic University of the Sacred Heart, Milan (Italy) Author-Name: Fabio Pieri Author-Workplace-Name: Dept. of Economics and Management, University of Trento (Italy) Author-Name: Chiara Tomasi Author-Workplace-Name: Dept. of Economics and Management, University of Trento (Italy) Title: Extended producer responsibility and trade flows in waste: The case of batteries Abstract: In the debate on international waste trade, the focus on resource efficiency and recycling has gradually begun to accompany the focus on negative environmental externalities. In this context, we examine the impact of Extended Producer Responsibility (EPR) on the export of waste batteries (WB). EPR is considered as a key policy for the “marketization of waste”. On the other hand, WB are a hazardous waste that also contain a high concentration of critical raw materials. As such, they are of strategic importance for the recovery of critical resources, while at the same time requiring proper environmental management. Therefore, it is crucial to understand where WB are treated and how this is affected by related policies. Our results, based on difference-in-difference models in a gravity framework, show a consistent increase in WB exports after EPR implementation compared to the trend for other wastes. This result is likely to be an indirect consequence of the ability of EPR to support growth in waste collection rates, more accurate tracking of transboundary waste flows, and specialization of national waste management systems. In particular, EPR exports appear to be directed to countries with more advanced waste management systems rather than to developing countries. Classification-JEL: K32; Q51; Q53; Q56 Keywords: Extended producer responsibility, batteries, trade, recycling, circular economy Length: 56 Creation-Date: 2023-10-25 Number: 488 Handle: RePEc:csl:devewp:488 File-URL: https://dagliano.unimi.it/wp-content/uploads/2023/10/WP488.pdf File-Format: application/pdf File-Size: 1.453 Template-type: ReDIF-Paper 1.0 Author-Name: Alireza Naghavi Author-Name: Giuseppe Pignataro Author-Name: Katja Zajc Kejzar Title: Culture, Law, and Contractual Relations Abstract: This paper explores the role of culture in firm organization and its interplay with legal enforcement in determining the organization and longevity of buyer-supplier relationships. We provide theory and evidence, showing how individualism and legal enforcement interact and affect firm behavior in industries with different technological characteristics. A higher level of individualism in source countries encourages integration (outsourcing) in high-(low-) technology industries. Legal institutions could increase the duration of contractual relationships by encouraging customization effort by individualistic suppliers with a sense of pride, while preventing infringement of sensitive technologies by those less concerned about self-achievement. Enforcement could however adversely affect the continuity of trade relations in more individualistic societies. Classification-JEL: L24; O32; Z10; K42; F14; F23; D23 Keywords: Individualism; Supplier relation longevity; Legal institutions; Firm organization; Technology; Infringement; Knowledge absorption; Contract enforcement; Customization; Pride Creation-Date: 2023-05-10 Revision-Date: 2024-01-16 Number: 487 Handle: RePEc:csl:devewp:487 File-URL: https://dagliano.unimi.it/wp-content/uploads/2024/01/WP487.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Alireza Naghavi Author-Name: Mohsen Shaeyan Title: Qanats Abstract: Qanats – traditional small-scale Persian irrigation systems – required a complex of cooperative local institutions for their construction and maintenance. We show that these institutions produced a (local) culture of cooperation in Iran that persists to the present day when qanats are no longer of economic value. We use unique geo-coded data on qanat coordinates in Iran and build an IV using grid-level geological preconditions necessary for construction and functioning of qanats: gently-sloped terrains and intermediate clay content. Qanats impact positively activities of cooperatives, as well as pervasiveness of credit institutions and trust in neighbors, particularly under stable climatic conditions. Classification-JEL: N55; O13; O53; Q13; Q15; Z10; D70 Keywords: Irrigation, Cooperation, Qanat, Cooperatives, Social capital, Trade routes, Culture, Persistence Creation-Date: 2023-05-10 Revision-Date: 2024-01-16 Number: 486 Handle: RePEc:csl:devewp:486 File-URL: https://dagliano.unimi.it/wp-content/uploads/2023/05/WP486.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Sabrina Di Addario Author-Name: Vincenzo Pezone Author-Name: Ra↵aele Saggio Title: Managerial Horizon and Corporate Labor Policies: Evidence from Fixed-Term Boards Abstract: We examine the relationship between managerial incentives and firms’ human resource policies by combining Italian social security records with newly collected data on board terms. We exploit the fact that boards of listed companies are appointed every three years as a source of variation in directors’ and top executives’ horizons. Our evidence shows that average wages cyclically decline in the last year of the board term, as managers approach the end of their tenure, consistent with executives trying to cut labor expenses and, hence, maximize profitability when they are up for reappointment. By leveraging individual administrative data, we also show that involuntary separations that occur close to the end of a board term lead to significantly worse outcomes for workers compared to involuntary separations that occur at the beginning of a board term; this result is driven by outsourcing events. These effects are not present in firms where managers are more likely to be entrenched, such as family-managed firms. Creation-Date: 2022-12-12 Number: 485 Handle: RePEc:csl:devewp:485 File-URL: https://dagliano.unimi.it/wp-content/uploads/2023/03/WP485.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Federico Barbiellini Amidei Author-Name: Sabrina Di Addario Author-Name: Matteo Gomellini Author-Name: Paolo Piselli Title: Female labour force participation and fertility in Italian history Abstract: This paper investigates the relationship between fertility dynamics and female labor force participation in Italy after WWII. By integrating extant statistics with census data and new reconstructions at the regional level, we first provide stylized facts about the relationship between female participation and fertility, also in international comparison. Second, we analyze possible causal links between female participation and fertility rates using the Bank of Italy’s Survey of Household Income and Wealth micro-data. Our macro and micro results confirm that the relationship between fertility and mothers’ participation has been negative in the past three decades. Our regional analysis shows that this result is mostly driven by the least educated women, who are probably the poorest as education positively correlates with income. By the use of micro-data we consistently show that this effect is driven by women in the lowest two quartiles of household’s income distribution. Classification-JEL: This paper investigates the relationship between fertility dynamics and female labor force participation in Italy after WWII. By integrating extant statistics with census data and new reconstructions Keywords: Fertility, Women, Labour participation, Economic history. Creation-Date: 2022-12-12 Number: 484 Handle: RePEc:csl:devewp:484 File-URL: Fertility, Women, Labour participation, Economic history. File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Nicolò Gatti Author-Email: nicolo.gatti@usi.ch Author-Name: Fabrizio Mazzonna Author-Email: fabrizio.mazzonna@usi.ch Author-Name: Raphaël Parchet Author-Email: raphael.parchet@usi.ch Author-Name: Giovanni Pica Author-Email: giovanni.pica@usi.ch Title: Opening the labor market to qualified immigrants in absence of linguistic barriers Abstract: This paper investigates the impact of opening the labor market to qualified immigrants who hold fully equivalent diplomas as natives and share the same mother tongue. Leveraging the 2002 opening of the Swiss labor market to qualified workers from the European Union, we show that the policy led to a large inflow of young immigrants with highly heterogeneous effects on the wages and employment status of qualified natives. While incumbent natives experienced a wage gain and a decrease in the likelihood of becoming inactive, the opposite happened for young natives entering the labor market after the policy change. Classification-JEL: F22, J08, J31, J61 Keywords: qualified immigration, wage effects, worker substitutability, experience Length: 49 Number: 483 Handle: RePEc:csl:devewp:483 File-URL: https://dagliano.unimi.it/wp-content/uploads/2022/11/WP483.pdf File-Format: application/pdf File-Size: 2400 Template-type: ReDIF-Paper 1.0 Author-Name: Fabio Pieri Author-Name: Massimiliano Vatiero Title: Firm hierarchy and the market for knowledge Abstract: This paper investigates the role of the market for knowledge in shaping firm hierarchy—that is, the span of control and the number of layers. We predict that, the larger the extent of the market for knowledge, the larger the span of control and the fewer the layers. We test our predictions using a rich database representing industrial firms in Italy during 2005-2018. Our identification strategy is based on existing cross-regional and cross-industry heterogeneity within the extent of the market for business services’ providers and instrumental variables. Results confirm that firms are flatter as the regional market for knowledge expands. Classification-JEL: D21, D22, D23, L22, L23 Keywords: firm hierarchy, number of layers, span of control, market for knowledge Number: 482 Handle: RePEc:csl:devewp:482 File-URL: https://dagliano.unimi.it/wp-content/uploads/2022/08/WP482.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Marco Augliera Author-Email: marco.augliera@unitn.it Author-Workplace-Name: University of Trento Author-Name: Gabriella Berloffa Author-Email: gabriella.berloffa@unitn.it Author-Workplace-Name: University of Trento Author-Name: Fabio Pieri Author-Email: fabio.pieri@unitn.it Author-Workplace-Name: University of Trento Title: Labor flexibility and innovation: the importance of firms’ heterogeneity Abstract: This work investigates the relationship between the numerical flexibility of a firm’s workforce and its innovative performance, taking into account the heterogeneity of firms and labor contracts. Using longitudinal data on Italian firms, we find that the share of temporary employees has a positive and significant effect on innovation for small and micro firms in low-tech and less knowledge-intensive sectors and a negative effect for medium and large firms in high-tech and knowledge-intensive sectors. These results suggest that managers and entrepreneurs may use temporary employment as an effective human resource practice to foster innovation in those firms whose technology or knowledge do not require vast and firm- specific investments. They also highlight possible unintended consequences of changes in the employment protection legislation for firms’ innovative performance. Functional flexibility (training policies) and wage flexibility (second-level wage bargaining scheme) are neither substitutes nor complements to numerical flexibility, suggesting that firms use numerical, functional, and wage flexibility in different combinations. Classification-JEL: D22; L23; M54; M55; J41 Keywords: Numerical flexibility; labor contracts; firm innovation; industrial relations Creation-Date: 2022-12-12 Number: 481 Handle: RePEc:csl:devewp:481 File-URL: https://dagliano.unimi.it/wp-content/uploads/2022/05/WP481.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Claudio Deiana Author-Workplace-Name: University of Cagliari and University of Essex Author-Name: Ludovica Giua Author-Workplace-Name: University of Cagliari and University of Essex Author-Name: Roberto Nisticò Author-Workplace-Name: University of Naples Federico II, CSEF and IZA Title: Legalization and Long-Term Outcomes of Immigrant Workers Abstract: This paper establishes a new fact about immigration policies: legalization has long- term effects on formal employment of undocumented immigrants and their assimilation. We exploit the broad amnesty enacted in Italy in 2002 together with rich survey data collected in 2011 on a representative sample of immigrant households to estimate the effect of regularization in the long run. Immigrants who were not eligible for the amnesty have a 14% lower probability of working in the formal sector a decade later, are subject to more severe ethnic segregation on the job and display less linguistic assimilation than their regularized counterparts. Classification-JEL: J15, J61, K37 Keywords: Undocumented immigrants; Amnesty program; Formal employment; Discrimination; Segregation Number: 480 Handle: RePEc:csl:devewp:480 File-URL: https://dagliano.unimi.it/wp-content/uploads/2022/03/WP480.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Andrea Greppi Author-Email: andrea.greppi@oecd.org Author-Workplace-Name: OECD Author-Name: Alireza Naghavi Author-Workplace-Name: University of Bologna, Department of Economics Title: Institutions, Development, and Patterns of Trade Abstract: This study investigates how easing international transactions through im- proved legal institutions can result in divergent trade patterns for different economies. We provide evidence that the level of development governs the relevance of intellectual property rights (IPR) institutions in determining a country’s comparative advantage. While IPR protection changes the composi- tion of OECD exports towards IP-intensive sectors, contract enforcement is the key driver of specialization of non-OECD exports in relation-specific inputs. The findings suggest a concentration of innovation activities in the OECD, with non-OECD countries serving as potential outsourcing destinations. We exploit information on IPR reforms over time to show the robustness of our results through both an instrumental variable and a difference-in-difference approach. We extend the analysis to a bilateral framework to show that better IPR quality could nevertheless encourage technology transfer by encouraging imports of IP-intensive goods into non-OECD countries. Classification-JEL: F13, F14, F63, O34, D23 Note: Intellectual property rights, Rule of law, Comparative advantage, Institu- tions, IP-intensity, Level of development, Relation-specificity, Outsourcing Creation-Date: 2022-12-12 Number: 479 Handle: RePEc:csl:devewp:479 File-URL: https://dagliano.unimi.it/wp-content/uploads/2022/02/WP479.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Jacopo Bonan Author-Name: Sergiu Burlacu Author-Name: Arianna Galliera Title: Consistency of prosocial behavior and cognitive skills: Evidence from children in El Salvador Abstract: We investigate the consistency of prosocial behaviors in response to changes in the in- stitutional setting of a lab-in-the-field experiment involving primary school students in El Salvador. Students play variants of the dictator game allowing the option to take and with relative unequal initial endowments. We exploit within-subject variation and find that children are sensitive to the enlargement of the choice-set, with a significant drop in the offers when the take option becomes available. Higher cognitive skills are systematically associated with higher levels of prosociality and lower sensitivity to changes in the choice set. However they do not correlate with responses to relative unequal initial endowments. Children, irrespective of their cognitive skills levels, care about equality and converge to a similar split of the final payoff, regardless of the initial inequality in the endowment, consistent with inequality aver- sion. The relationship between individual traits in childhood and the degree of consistency of prosocial behaviors appears to vary depending on the type of institutional change in the dictator game. Classification-JEL: D91, C91 Keywords: prosocial behavior, preference consistency, choice-set, cognitive skills, inequality aversion, El Salvador Creation-Date: 2022-12-01 Number: 478 Handle: RePEc:csl:devewp:478 File-URL: https://dagliano.unimi.it/wp-content/uploads/2021/12/WP478.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Mariapia Mendola Author-Name: Giovanni Prarolo Author-Name: Tommaso Sonno Title: Curse or Blessing? Multinational Corporations and Labour Supply in Africa Abstract: Do multinational enterprises impact locals’ labor opportunities in developing countries? We address this largely unanswered question by combining geolocalised individual-level data with information on domestic and foreign multinationals’ affiliates spanning Sub-Saharan Africa. Having a multinational’s affiliate within walking distance correlates with an average boost in employment (+4.3%), in comparison to those without. Multinationals’ activity is correlated with higher off–farm (+13%) and lower on–farm (-7%) employment, a result par- ticularly driven by affiliates from foreign companies. Average job quality increases around affiliates, but only when part of foreign groups. Classification-JEL: F23, F66, F16, O12, J01 Keywords: multinational enterprises, labour supply, job participation Creation-Date: 2022-12-01 Number: 477 Handle: RePEc:csl:devewp:477 File-URL: https://dagliano.unimi.it/wp-content/uploads/2021/08/WP477.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Laura Pagani Author-Email: laura.pagani@unimib.it Author-Workplace-Name: University of Milano Bicocca Author-Name: Giovanni Pica Author-Email: giovanni.pica@usi.ch Author-Workplace-Name: Università della Svizzera Italiana (USI), CSEF, Centro Luca D’Agliano, Paolo Baffi Centre Title: A Peer Like Me? Early Exposure to High Achievers in Math and Later Educational Outcomes Abstract: This paper investigates whether exposure to academically gifted peers of the same and opposite gender in primary school (grade 5, at age 10) affects later academic achievement (grade 8, at age 13) and high-school track choice. For identification we exploit random allocation of kids across classes within primary schools. We document that, conditional on primary school fixed effects and grade 8 class fixed effects, as well as on baseline achievement, a higher share of same/opposite gender high-achievers in math in primary school is related, both for boys and girls, to better/worse later math academic achievement in grade 8 and to a higher/lower probability of choosing a scientific high-school track. We argue that these results are consistent with a role model channel. Classification-JEL: I21, I24, J24 Keywords: Peer effects, early education stage, gender-specific effects Creation-Date: 2021-07-27 Number: 476 Handle: RePEc:csl:devewp:476 File-URL: https://dagliano.unimi.it/wp-content/uploads/2021/07/WP476.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Silvia Marchesi Author-Email: silvia.marchesi@unimib.it Author-Workplace-Name: University of Milano Bicocca, CefES and Centro Studi Luca D’Agliano Author-Name: Tania Masi Author-Email: tania.masi@unich.it Author-Name: Pietro Bomprezzi Author-Email: p.bomprezzi@campus.unimib.it Author-Workplace-Name: University of Milano Bicocca and CefES Title: Is to Forgive to Forget? Sovereign Risk in the Aftermath of a Default Abstract: We examine the link between sovereign defaults and credit risk, by taking into account the depth of a debt restructuring and by distinguishing between commercial and official debt. The focus is on debt restructuring events, which take place at the end of a default spell. We use a novel methodology (Jordà and Taylor 2016) to estimate the average treatment effect of a default episode on our outcome variables, agency ratings and bond yield spreads, accounting for the endogeneity of the default. Our results show that the average treatment effect on ratings is negative (and positive for bond spreads) up to seven years following a default, while the opposite holds for a default with official creditors. Our results are robust to using a panel analysis, which allows us to investigate on the importance of the (final) haircut size. Specifically, we and that the rating (spread) variation (increase) is larger for cases with deeper haircuts. Therefore, we and evidence that official and private defaults may have different costs and then induce selective defaults. Classification-JEL: F34, G15, G24, H63 Keywords: Sovereign defaults, Haircut, Credit Rating Agencies, bond yield spreads, local projection Creation-Date: 2021-07-16 Number: 475 Handle: RePEc:csl:devewp:475 File-URL: https://dagliano.unimi.it/wp-content/uploads/2021/07/WP475.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Emilia Barili Author-Email: emilia.barili@edu.unige.it Author-Workplace-Name: University of Genoa Author-Name: Veronica Grembi Author-Email: veronica.grembi@unimi.it Author-Workplace-Name: University of Milan Author-Name: Anna Rosso Author-Email: anna.rosso@unimi.it Author-Workplace-Name: University of Milan, Centro Studi Luca d’Agliano and CEP Title: Domestic Violence and Gender Stereotypes: Perceptions, Justifications, and Reactions. Abstract: Using a new measure of the strength of gender stereotypes defined at the individual level and based on responses to a survey conducted with more than 4,500 Italian women in July 2020, we show that women with stronger stereotypes are more likely to state that they know a victim of violence but are not more likely to state that violence (physical or psychological) is widespread in their area of residence. They are also more likely to rank behaviours meant to control a victim’s interpersonal contacts and access to financial resources as more serious than physically and sexually violent behaviours and to justify violent acts using distressing, event-specific circumstances (e.g., a period of economic distress) rather than the deep-seated psychological issues of the attackers. Finally, when personal stereotyping is stronger, respondents are more likely to suggest that a hypothetical victim of violence either not react to or deal directly with the partner rather than look for formal help. Using different controls for the impact of the first wave of the COVID-19 pandemic on the respondents’ personal and economic lives does not affect our main findings. Classification-JEL: J12, I18 Keywords: Gender Stereotypes, Domestic Violence Perceptions, Justifications for Violent Behaviour, COVID-19 Creation-Date: 2021-06-07 Number: 474 Handle: RePEc:csl:devewp:474 File-URL: https://dagliano.unimi.it/wp-content/uploads/2021/06/WP474.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Giampaolo Lecce Author-Email: G.Lecce@rug.nl Author-Workplace-Name: Groningen University Author-Name: Laura Ogliari Author-Email: laura.ogliari@unimi.it Author-Workplace-Name: University of Milan Author-Name: Tommaso Orlando Author-Email: tommaso.orlando@bancaditalia.it Author-Workplace-Name: Bank of Italy Title: Resistance to Institutions and Cultural Distance: Brigandage in Post-Unification Italy Abstract: What determines the rejection of exogenously imposed institutions? To address this question, we exploit the transplantation of institutions that occurred when southern Italy was annexed to Piedmont, during the Italian unification process of the 1860s. We assemble a novel dataset on episodes of brigandage, a form of violent uprising against the unitary government, and on pre-unification social and economic characteristics of southern Italian municipalities. We find that the intensity of institutional rejection is ceteris paribus lower in and close to settlements of Piedmontese origin. We argue that geographical distance from these communities is a proxy for cultural distance from the Piedmontese rulers. Thus, our results suggest that cultural proximity to the ‘donor’ reduces institutional rejection by ‘recipient’ communities in the context of institutional transplantations. We rule out alternative mechanisms proposed by the economic literature, provide suggestive evidence of cultural persistence and diffusion in our context, and discuss two possible culture-based interpretations of our results: a clash between local values and the content of the new institutions, and social identification with the Piedmontese rulers. Classification-JEL: N43, D74, P16, Z10 Keywords: Institutions, Culture, Institutional Transplantations, Cultural Diffusion Creation-Date: 2021-04-14 Number: 473 Handle: RePEc:csl:devewp:473 File-URL: https://dagliano.unimi.it/wp-content/uploads/2021/04/WP473.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Giampaolo Lecce Author-Email: G.Lecce@rug.nl Author-Workplace-Name: Groningen University Author-Name: Laura Ogliari Author-Email: laura.ogliari@unimi.it Author-Workplace-Name: University of Milan Author-Name: Mara P. Squicciarini Author-Email: mara.squicciarini@unibocconi.it Author-Workplace-Name: Bocconi University and CEPR Title: Birth and Migration of Scientists: Does Religiosity Matter? Evidence from 19th-Century France Abstract: Can religiosity affect the emergence and migration patterns of scientists? We focus on 19th-century France, a period in which the Catholic Church had embraced a particularly antiscientific attitude, and we exploit variation in intensity of Catholicism. Using data on the places of birth and death of famous individuals from 1790 to 1880, we show that more religious cantons were less likely to give birth to scientists, but religiosity did not play a role for their migration choices. We shed light on the mechanism and suggest that accumulation of scientific human capital earlier in life was key: religious vs. secular secondary education can partly explain the negative relationship between religiosity and the “birth” of scientists. Finally, placebo regressions show that religiosity is not associated with the birth and migration patterns of famous individuals in nonscientific professions—nor is it associated with the emergence of scientific human capital in the pre-1790 period. Classification-JEL: J24, N13, Z12 Keywords: Religiosity, Scientific Development, Upper-Tail Human Capital Creation-Date: 2021-04-14 Number: 472 Handle: RePEc:csl:devewp:472 File-URL: https://dagliano.unimi.it/wp-content/uploads/2021/04/WP472.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Francesco Nucci Author-Email: francesco.nucci@uniroma1.it Author-Workplace-Name: Sapienza University Author-Name: Filomena Pietrovito Author-Email: filomena.pietrovito@unimol.it Author-Workplace-Name: University of Molise Author-Name: Alberto Franco Pozzolo Author-Email: alberto.pozzolo@uniroma3.it Author-Workplace-Name: Roma Tre University Title: Intermediated Trade and Credit Constraints: The Case of Firm's Imports Abstract: Growing evidence suggests that a large share of international trade transactions are made through intermediaries and that whether firms use them or not depends on different factors. In this paper, we investigate whether credit constraints introduce a degree of difference among firms in their mode of importing. To begin, we develop a simple analytical framework highlighting the possible links between credit constraints and reliance on import intermediaries, and then use firm-level data from 66 developing and developed countries to test the model's predictions. The results show that credit-constrained firms exhibit a higher probability of importing their inputs using an intermediary, while unconstrained firms are more likely to import directly. Our results also establish that the impact of credit constraints on the probability of indirect importing is amplified for firms with a higher distance from their international sourcing network. Moreover, if firms face other types of frictions to imports, then the probability that credit-constrained firms rely on intermediaries is estimated to be higher. The frictions we consider relate to the degree of regulatory burden and the extent of documentary compliance, time to import and other costs involved in import activities. Classification-JEL: F10, F14, F36, G20 Keywords: Firms' Import Mode; Trade Intermediaries; Financial Constraints Creation-Date: 2021-03-29 Number: 471 Handle: RePEc:csl:devewp:471 File-URL: https://dagliano.unimi.it/wp-content/uploads/2021/03/WP471.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Emilia Barili Author-Email: emilia.barili@edu.unige.it Author-Workplace-Name: University of Genoa Author-Name: Veronica Grembi Author-Email: veronica.grembi@unimi.it Author-Workplace-Name: University of Milan Author-Name: Anna Rosso Author-Email: anna.rosso@unimi.it Author-Workplace-Name: University of Milan Title: Women in Distress: Mental Health and the COVID-19 Pandemic Abstract: Relying on a survey of more than 4,000 female respondents, we investigate the main determinants of women's mental distress during the first wave of the COVID-19 pandemic in Italy. We focus on two groups of variables to capture both the health and the economic emergency: present concerns and future expectations. Our results show that the main predictors of mental health are future expectations, such as the fear of losing a job, which is more relevant than concerns related to the spread of the virus. Younger women (less than 35), those lacking a high school degree, and those working in education or in remote work with school-aged children are in most distress. Using a panel fixed effects model that includes respondents to a re-call run in February 2021, we show that there was no adjustment to the new normal. Finally, using data on gender norms, we show that where the role of women is conceived in a more traditional way, the level of mental distress as driven by future employment is lower, suggesting that women's expectations for their role in society do play a relevant role in self-assessed well-being. Classification-JEL: I1,I12,J16 Keywords: Mental health, COVID-19, Expectations, Gender Stereotypes Creation-Date: 2021-03-19 Number: 470 Handle: RePEc:csl:devewp:470 File-URL: https://dagliano.unimi.it/wp-content/uploads/2021/04/WP470.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Giorgio Barba Navaretti Author-Email: barba@unimi.it Author-Workplace-Name: University of Milan Author-Name: Anna Rosso Author-Email: anna.rosso@unimi.it Author-Workplace-Name: University of Milan Title: Access to Capital Markets and the Geography of Productivity Leaders and Laggards Abstract: This paper examines whether access to the capital market of convertible and non-convertible bonds affects total factor productivity (TFP) for the population of Italian joint stock manufacturing companies, based in highly segmented local financial markets, between 2007 and 2017. The hypothesis, well grounded in the literature, is that long term capital favours investment in intangibles and other risky assets necessary for productivity growth. In order to identify this effect, we exploit the exogenous shock of the Italian banking deregulation of the mid-Nineties as an instrument for firm level access to capital, interacted with distance from logistic networks. These reforms changed the distribution of the type of branches at the local level, increasing the share of joint stock banks, which have high connections to international capital markets. This geographical reallocation of banking activities ultimately affected firms’ financial structure, favouring their access to capital, even when based in peripheral financial areas. Firms which issued instruments of market debt achieved higher levels of productivity and a higher probability to reach top percentiles of productivity distribution. Classification-JEL: R1, O4, G21 Keywords: Productivity, Bank Liberalization, logistic networks dynamics Number: 469 Handle: RePEc:csl:devewp:469 File-URL: https://dagliano.unimi.it/wp-content/uploads/2022/11/WP469.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Margherita Comola Author-Email: margherita.comola@psemail.eu Author-Workplace-Name: University Paris-Saclay and Paris School of Economics Author-Name: Carla Inguaggiato Author-Email: carla.inguaggiato@cde.unibe.ch Author-Workplace-Name: University of Bern, Centre for Development and Environment Author-Name: Mariapia Mendola Author-Email: mariapia.mendola@unimib.it Author-Workplace-Name: University of Milano{Bicocca and IZA Title: Learning about Farming: Innovation and Social Networks in a Resettled Community in Brazil Abstract: We study the role of social learning in the diffusion of cash crops in a resettled village economy in northeastern Brazil. We combine detailed geo-coded data on farming plots with dyadic data on social ties among settlers, and we leverage natural exogenous variation in network formation induced by the land occupation movement and the agrarian reform. By using longitudinal data on farming decisions over 15 years we find consistent evidence of significant peer effects in the decision to farm new cash fruits (pineapple and passion fruit). Our results suggest that social diffusion is heterogeneous along observed plot and crop characteristics, i.e. farmers growing water-sensitive crop are more likely to respond to the actions of peers with similar water access conditions. Classification-JEL: C45, D85, J15, O33, Q15 Keywords: Technology Adoption, Agrarian Reform, Social Networks, Peer Effects, Brazil Creation-Date: 2021-02-09 Number: 468 Handle: RePEc:csl:devewp:468 File-URL: https://dagliano.unimi.it/wp-content/uploads/2021/02/WP468.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Gaetano Basso Author-Email: gaetano.basso@bancaditalia.it Author-Workplace-Name: Banca d’Italia Author-Name: Eleonora Brandimarti Author-Email: eleonora.brandimarti@unige.ch Author-Workplace-Name: University of Geneva Author-Name: Michele Pellizzari Author-Email: Michele.Pellizzari@unige.ch Author-Workplace-Name: University of Geneva, CEPR and IZA Author-Name: Giovanni Pica Author-Email: giovanni.pica@usi.ch Author-Workplace-Name: Universita della Svizzera Italiana, CSEF and LdA Title: Quality and Selection in Regulated Professions Abstract: Entry in many occupations is regulated with the objective to screen out the least able producers and guarantee high quality of output. Unfortunately, the available empirical evidence suggests that in most cases these objectives are not achieved. In this paper we investigate entry into the legal profession in Italy and we document that such a failure is due to the combination of the incomplete anonymity of the entry exam and the intergenerational transmission of business opportunities. We use microdata covering the universe of law school graduates from 2007 to 2013 matched with their careers and earnings up to 5 years after graduation. Variation generated by the random assignment of the entry exam grading commissions allows us to identify the role of family ties in the selection process. We find that connected candidates, i.e. those with relatives already active in the profession, are more likely to pass the exam and eventually earn more, especially those who performed poorly in law school. When we simulate the process of occupational choice assuming family connections did not matter, we find that strong positive selection on ability would emerge. Classification-JEL: J24, J44, J62 Creation-Date: 2021-01-15 Number: 467 Handle: RePEc:csl:devewp:467 File-URL: https://dagliano.unimi.it/wp-content/uploads/2021/01/WP467.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Mauro Caselli Author-Email: mauro.caselli@unitn.it Author-Name: Paolo Falco Author-Email: paolo.falco@econ.ku.dk Title: As Long as They are Cheap Experimental Evidence on the Demand for Migrant Workers Abstract: How does demand for migrant vs native workers change with price? We conduct an experiment with 56,000 Danish households (over 2 percent of all households in the country), who receive an advertisement from a cleaning company whose operators vary randomly across areas but meet the same quality standards and have equal customer ratings. When the operator has a migrant background, we find that demand is significantly lower than when the operator is a native. The gap, however, is highly sensitive to price, with demand for the migrant increasing steeply as the price falls. For an hourly pay close to the 25th percentile of the earnings distribution in similar occupations (24 USD per hour), demand for the migrant is one-fifth of the demand for the native. A 25 percent reduction in the price makes the gap in demand disappear. Classification-JEL: C93, J23, J61, J71 Length: 34 pages Creation-Date: 2020-09-08 Revision-Date: 2020-09-08 Number: 466 Handle: RePEc:csl:devewp:466 File-URL: https://dagliano.unimi.it/wp-content/uploads/2020/09/WP466.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Michael A. Clemens Author-Email: mclemens@cgdev.org Author-Workplace-Name: Center for Global Development Author-Name: Mariapia Mendola Author-Email: mariapia.mendola@unimib.it Author-Workplace-Name: Università degli Studi di Milano Bicocca Title: Migration from Developing Countries: Selection, Income Elasticity and Simpson's Paradox Abstract: How does immigration affect incomes in the countries migrants go to, and how do rising incomes shape emigration from the countries they leave? The answers depend on whether people who migrate have higher or lower productivity than people who do not migrate. Theory on this subject has long exceeded evidence. We present estimates of emigrant selection on both observed and unobserved determinants of income, from across the developing world. We use nationally representative survey data on 7,013 people making active, costly preparations to emigrate from 99 developing countries during 2010–2015. We model the relationship between these measures of selection and the income elasticity of migration. In low-income countries, people actively preparing to emigrate have 30 percent higher incomes than others overall, 14 percent higher incomes explained by observable traits such as schooling, and 12 percent higher incomes explained by unobservable traits. Within low-income countries the income elasticity of emigration demand is 0.23. The world’s poor collectively treat migration not as an inferior good, but as a normal good. Any negative effect of higher income on emigration within subpopulations can reverse in the aggregate, because the composition of subpopulations shifts as incomes rise—an instance of Simpson’s paradox. Creation-Date: 2020-09-07 Revision-Date: 2020-09-07 Number: 465 Handle: RePEc:csl:devewp:465 File-URL: https://dagliano.unimi.it/wp-content/uploads/2020/09/WP465.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Francesco Campo Author-Email: francesco.campo@unimib.it Author-Workplace-Name: University of Milano Bicocca Author-Name: Mariapia Mendola Author-Email: mariapia.mendola@unimib.it Author-Workplace-Name: University of Milano Bicocca, IZA, LdA and CefES Author-Name: Andrea Morrison Author-Email: andrea.morrison@unibocconi.it Author-Workplace-Name: ICRIOS-Bocconi University and Utrecht University Author-Name: Gianmarco Ottaviano Author-Email: gianmarco.ottaviano@unibocconi.it Author-Workplace-Name: Bocconi University, BAFFI-CAREFIN, IGIER, CEP, CEPR and IZA Title: Immigrant Inventors and Diversity in the Age of Mass Migration Abstract: A possible unintended but damaging consequence of anti-immigrant rhetoric, and the policies it inspires, is that they may put high-skilled immigrants off more than low-skilled ones at times when countries and businesses intensify their competition for global talent. We investigate this argument following the location choices of thousands of immigrant inventors across US counties during the Age of Mass Migration. To do so we combine a unique USPTO historical patent dataset with Census data and exploit exogenous variation in both immigration flows and diversity induced by former settlements, WWI and the 1920s Immigration Acts. We find that coethnic networks play an important role in attracting immigrant inventors. However, we also find that immigrant diversity acts as an additional significant pull factor. This is mainly due to externalities that foster immigrant inventors’ innovativeness. These findings are relevant for today’s advanced economies that have become major receivers of migrant flows and,in a long-term perspective,have started thinking about immigration in terms of not only level but also composition. Number: 464 Handle: RePEc:csl:devewp:464 File-URL: https://dagliano.unimi.it/wp-content/uploads/2020/06/WP464.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Diego Daruich Author-Workplace-Name: University of Southern California (Marshall) Author-Name: Sabrina Di Addario Author-Workplace-Name: Bank of Italy Author-Name: Raffaele Saggio Author-Workplace-Name: University of British Columbia Title: The Effects of Partial Employment Protection Reforms: Evidence from Italy Abstract: We combine matched employer-employee data with firms’ financial records tostudy a 2001 Italian reform that lifted constraints on the employment of temporary contract workers while maintaining rigid employment protection regulationsfor employees hired under permanent employment contracts. Exploiting the stag-gered implementation of the reform across different sectoral collective bargainingagreements, we find that this policy change led to an increase in the incidence oftemporary contracts but failed to raise employment significantly. The reform hadboth winners and losers. Firms appear to be the main winners as the reform wassuccessful in decreasing labor costs, leading to higher profits. By contrast, youngworkers are the main losers since their earnings were substantially depressed follow-ing the policy change. Rent-sharing estimates show that workers on a temporarycontract receive only 68% of the rents shared by firms with workers hired under apermanent contract, helping explain the post-reform labor cost reductions. Creation-Date: 2020-04-27 Revision-Date: 2020-04-27 Number: 463 Handle: RePEc:csl:devewp:463 File-URL: https://dagliano.unimi.it/wp-content/uploads/2020/04/WP463.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Francesco Fasani Author-Workplace-Name: Queen Mary University London Author-Name: Tommaso Frattini Author-Workplace-Name: University of Milan Author-Name: Luigi Minale Author-Workplace-Name: Universidad Carlos III de Madrid Title: Lift the Ban? Initial Employment Restrictions and Refugee Labour Market Outcomes Abstract: This article investigates the medium to long-term effects on refugee labour market outcomes of the temporary employment bans being imposed in many countries on recently arrived asylum seekers. Using a newly collected dataset covering almost 30 years of employment restrictions together with individual data for refugees entering European countries between 1985 and 2012, our empirical strategy exploits the geographical and temporal variation in employment bans generated by staggered introduction and removal coupled with frequent changes at the intensive margin. We find that exposure to a ban at arrival reduces refugee employment probability in postban years by 15%, an impact driven primarily by lower labour market participation. These effects are not mechanical, since we exclude refugees who may still be subject to employment restrictions, are non-linear in ban length, confirming that the very first months following arrival play a key role in shaping integration prospects, and last up to 10 years post arrival. We further demonstrate that the detrimental effects of employment bans are concentrated among less educated refugees, translate into lower occupational quality, and seem not to be driven by selective migration. Our causal estimates are robust to several identification tests accounting for the potential endogeneity of employment ban policies, including placebo analysis of non-refugee migrants and an instrumental variable strategy. To illustrate the costs of these employment restrictions, we estimate a EUR 37.6 billion output loss from the bans imposed on asylum seekers who arrived in Europe during the so-called 2015 refugee crisis. Length: 55 pages Creation-Date: 2020-04-15 Number: 462 Handle: RePEc:csl:devewp:462 File-URL: https://dagliano.unimi.it/wp-content/uploads/2020/04/WP462.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Francesco Nucci Author-Workplace-Name: Sapienza University Author-Name: Filomena Pietrovito Author-Workplace-Name: University of Molise Author-Name: Alberto Franco Pozzolo Author-Workplace-Name: Roma Tre University and Centro Studi Luca d’Agliano Title: Imports and Credit Rationing: A Firm-Level Investigation Abstract: Firm performance is known to benefit from participation in import markets. For this reason, understanding whether credit constraints hamper firms’ ability to purchase foreign inputs is a relevant issue. In this paper, we investigate the relationship between financial constraints and imports of intermediate inputs using a large sample of small- and medium-sized enterprises from 66 developing countries. To measure credit constraints we use information from a firm’s in-depth self-assessment of its difficulties in having access to external finance. Furthermore, to tackle the endogeneity problems in the estimation, we rely on an instrumental variable approach that allows us to establish more directly the impact of financial constraints on importing activities. We provide robust evidence of a statistically and economically significant restraining effect of credit constraints on both the probability of importing intermediates (the extensive margin) and the incidence of imported intermediates in total input expenditure (the intensive margin). Moreover, we show that the impact on these margins of import is stronger for firms operating in countries where the financial system is less developed, the quality of institutions poorer and the overall level of economic freedom lower. Classification-JEL: D22; F10; F14; F23; M21 Keywords: import market participation; import margins; credit constraints. Length: 33 Creation-Date: 2020-02-25 Revision-Date: 2020-02-25 Number: 461 Handle: RePEc:csl:devewp:461 File-URL: https://dagliano.unimi.it/wp-content/uploads/2020/02/WP461.pdf File-Format: application/pdf File-Size: 1400 Template-type: ReDIF-Paper 1.0 Author-Name: Silvia Marchesi Author-Email: silvia.marchesi@unimib.it Author-Homepage: https://sites.google.com/site/ssilviamarchesi/contact Author-Workplace-Name: University of Milan Bicocca Author-Name: Tania Masi Author-Email: tania.masi@unimib.it Author-Homepage: https://sites.google.com/view/taniamasi Author-Workplace-Name: University of Milan Bicocca Title: The price of haircuts: private and official default Abstract: This paper studies the relationship between sovereign debt default and sovereign credit risk by taking into account the depth of a debt restructuring and by distinguishing between commercial and officialdebt. We take rating agencies as well as bond yield spreads(EMBIG)as measures of a country’s creditworthiness. Our results show that defaults with private creditors seem to involve some reputational costs up to seven years since the last agreement,while offcial defaulters may even benefit from the restructuring episodes.Therefore,we find evidence that official and private defaults may have different costs and then induces elective defaults. Length: 42 Creation-Date: 2020-02-06 Revision-Date: 2020-02-06 Number: 460 Handle: RePEc:csl:devewp:460 File-URL: https://dagliano.unimi.it/wp-content/uploads/2020/02/WP460.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Maria Cipollina Author-Email: cipollina@unimol.it Author-Homepage: http://docenti.unimol.it/index.php?u=cipollina Author-Name: Filomena Pietrovito Author-Email: filomena.pietrovito@unimol.it Author-Name: Alberto Franco Pozzolo Author-Email: alberto.pozzolo@uniroma3.it Author-Homepage: http://www.uniroma3.it/en/persone/M3BIZGdST2hjdGNiQ3Q3RkZyWGRacnNDNktwK3VQTW54WkV2aUhHQWZndz0=/inseg Title: Does the participation to global value chains impact on cross-border mergers and acquisitions? Abstract: Global value chains (GVCs) are a major feature of globalization, with a strong impact on the patterns of international trade. In this paper we take the analysis one step forward, studying the impact of GVCs on cross-border mergers and acquisitions (M&As). We test the two symmetric hypotheses that a higher degree of participation in GVCs of a supplier sector to the exports of a user sector (e.g., the assembly in China of cell-phones eventually exported to US and, in turn, to the rest of the world) encourages: (i) firms in the user sector to acquire foreign participations in the supplier sector; and (ii) firms in the supplier sector to acquire foreign participations in the user sector. Our analysis is based on a unique dataset covering 12 supplier and user sectors, for over 22 investor countries and 47 target countries between 1995 and 2010. Estimating an augmented gravity equation model of cross-border M&As, inflated with a large number of bilateral sector and country fixed effects, we find strong support that a higher GVC participation has a positive impact on the size of M&As in both the user and the supplier sectors. Classification-JEL: F14; F23; F60 Keywords: Global Value Chains; Mergers and Acquisitions; Sector level Length: 34 Creation-Date: 2020-01-17 Number: 459 Handle: RePEc:csl:devewp:459 File-URL: https://dagliano.unimi.it/wp-content/uploads/2020/01/WP459.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Jacopo Bonan Author-Email: jacopo.bonan@polimi.it Author-Workplace-Name: Politecnico di Milano Author-Name: Harounan Kazianga Author-Email: harounan.kazianga@okstate.edu Author-Workplace-Name: Oklahoma State University Author-Name: Mariapia Mendola Author-Email: mariapia.mendola@unimib.it Author-Homepage: https://sites.google.com/site/mariapiamendola/ Author-Workplace-Name: Università Milano Bicocca Title: Agricultural Transformation and Farmers' Expectations: Experimental Evidence from Uganda Abstract: Adoption rate of profitable agricultural technologies in Africa remains low and variations in adoption choices across farmers are yet to be fully understood. This paper studies Ugandan subsistence smallholders’ decisions to adopt profitable cash crops (oilseeds) that can allow them to transition to commercial farming. More specifically, we exploit the randomized roll-out of a national extension service program in order to investigate the role of farmers’ expectations in crop take–up decisions as well as the extent to which ex-ante beliefs about crop profitability explain adoption. We find that, randomly assigned extension services lead to an increase of oilseeds adoption by 15%, and farmers who under-estimate the oilseeds price at baseline are the most likely to adopt new crops. By testing how farmers update their beliefs after being randomly provided with extension services, our results point towards changes in expectations as an important driver of agricultural technology take-up. Classification-JEL: O13; O33; Q14; Q15; Q16 Keywords: Technology Adoption; Commercial Farming; Randomized Controlled Trial; Uganda Length: 62 Creation-Date: 2019-12-23 Number: 458 Handle: RePEc:csl:devewp:458 File-URL: https://dagliano.unimi.it/wp-content/uploads/2020/01/WP458.pdf File-Format: application/pdf File-Size: 987 Template-type: ReDIF-Paper 1.0 Author-Name: Olena Ivus Author-Email: olena.ivus@queensu.ca Author-Workplace-Name: Queen's University Author-Name: Alireza Naghavi Author-Email: alireza.naghavi@unibo.it Author-Workplace-Name: University of Bologna Author-Name: Larry D. Qiu Author-Email: larryqiu@hku.hk Author-Workplace-Name: University of Hong-Kong Title: Migration and Imitation Abstract: This paper develops a North-South trade model with heterogeneous labour and horizontally differentiated products and compares the implications of two policies: Southern intellectual property rights (IPRs) and Northern immigration policy that aims to attract Southern talent as means of preempting imitation. Individuals self-select into becoming entrepreneurs and innovate (imitate) in the North (South). The likelihood of imitation depends on product quality, imitator’s ability, and strength of IPRs. Several interrelated channels of competition are identified. Allowing high-ability migration when IPRs protection in the South is weak shifts imitation to low-quality and innovation to high-quality products. The outcome is in stark contrast to the policy of strengthening IPRs, which limits low-quality imitation and encourages low-quality innovation. High-ability migration also increases the income of lowability entrepreneurs, as well as the average quality of products in the high-ability imitation sector in the South. Classification-JEL: F22; O31; O34; J24; K37; O38 Keywords: Intellectual propert yrights; High-skilled migration; Imitation; Innovation; Product quality; Entrepreneurability Length: 45 Creation-Date: 2019-12-20 Number: 457 Handle: RePEc:csl:devewp:457 File-URL: https://dagliano.unimi.it/wp-content/uploads/2019/12/WP457.pdf File-Format: application/pdf File-Size: 776 Template-type: ReDIF-Paper 1.0 Author-Name: Yi Fan Chen Author-Email: yfchen@smu.edu.sg Author-Workplace-Name: Singapore Management University Author-Name: Alireza Naghavi Author-Email: alireza.naghavi@unibo.it Author-Workplace-Name: University of Bologna Author-Name: Shin-Kun Peng Author-Email: speng@econ.sinica.edu.tw Author-Workplace-Name: National Taiwan University Title: Learning by supplying and Competition Threat Abstract: This study proposes a model of learning by supplying in an international outsourcing framework, where the supplier of a relationship-specific input can reverse engineer and become a competitor to its partner in the final goods market. Transmitting knowledge to a more capable supplier therefore creates competitive threat despite the benefits it brings within an outsourcing relationship. In particular, in markets with less differentiated products and for standard inputs that require less knowledge to be shared, choosing an intermediate capability level supplier prompts a strategic expansion of output to deter supplier entry in the final goods market, resulting in higher profits and welfare. A highly capable supplier is instead accommodated as a rival and is a source of royalty income when the relationship specific input embeds more knowledge about the final product and when the competing varieties are differentiated. Classification-JEL: F12; F23; L13; L22; L24; D23; O34 Keywords: International outsourcing; Supplier heterogeneity; Competitive threat; Reverse engineering; Strategic predation; Technological capability; Learning by supplying; Royalty payment; Knowledge intensity Length: 43 Creation-Date: 2019-12-20 Number: 456 Handle: RePEc:csl:devewp:456 File-URL: https://dagliano.unimi.it/wp-content/uploads/2019/12/WP456.pdf File-Format: application/pdf File-Size: 1740 Template-type: ReDIF-Paper 1.0 Author-Name: Giorgio Barba Navaretti Author-Email: barba@unimi.it Author-Workplace-Name: Univesity of Milan Author-Name: Davide Castellani Author-Email: davide.castellani@henley.ac.uk Author-Workplace-Name: Henley Buisness School, University of Reading Author-Name: Fabio Pieri Author-Email: fabio.pieri@unitn.it Author-Workplace-Name: University of Trento Title: CEO age, shareholders’ monitoring and organic growth among European firms Abstract: We examine the relation between CEO age and firm organic growth in a large sample of mostly privately held European manufacturing firms of all size classes. Firms managed by a young CEO grow faster in terms of both sales and assets. Results are robust to the inclusion of a large vector of firm and CEO characteristics and to controls for time horizon, survival bias and endogeneity. We hypothesize that this relation is explained by an incentive of young CEOs to boost firm growth both to signal their talent in the market for managers and to get a longer stream of future compensation benefits. This may create an agency problem, due to a divergence of this corporate strategy from shareholders’ targets. In line with this hypothesis, a larger blockholder ownership, allowing for a more effective monitoring, moderates the relation between CEO age and firm growth. Classification-JEL: G32; G34; L11; L25; L60 Keywords: Chief Executive Officer; CEO age; organic growth; agency theory; blockholder ownership; European manufacturing firms Length: 54 Creation-Date: 2019-11-12 Number: 455 Handle: RePEc:csl:devewp:455 File-URL: https://dagliano.unimi.it/wp-content/uploads/2020/01/WP455.pdf File-Format: application/pdf File-Size: 2010 Template-type: ReDIF-Paper 1.0 Author-Name: Bernt Bratsberg Author-Email: bernt.bratsberg@frisch.uio.no Author-Workplace-Name: Ragnar Frisch Centre for Economic Research and University of Oslo Author-Name: Giovanni Facchini Author-Email: giovanni.facchini@nottingham.ac.uk Author-Workplace-Name: University of Nottingham, CEPR, CES-Ifo, CReAM, GEP and IZA Author-Name: Tommaso Frattini Author-Email: tommaso.frattini@unimi.it Author-Homepage: https://sites.unimi.it/tommasofrattini/ Author-Workplace-Name: Universita’ degli Studi di Milano, CEPR, CReAM, IZA and LdA Author-Name: Anna Cecilia Rosso Author-Email: anna.rosso@unimi.it Author-Workplace-Name: Universita’ degli Studi di Milano, LdA and CEP Title: Are Political and Economic Integration Interwinded? Abstract: Economic incentives play a key role in the decision to run for office, but little is known on how they shape immigrants’ selection into candidacy. We study this question using a two-period Roy model and show that if returns to labour market experience are higher for migrants than natives, migrants will be less likely to seek office than natives. We empirically assess this prediction using administrative data from Norway, a country with a very liberal regime for participation in local elections. Our results strongly support our theoretical model and indicate that immigrants’ political and economic integration are closely intertwined. Classification-JEL: F22; J45; P16 Keywords: Immigration; Local Elections; Candidacy Decision; Labour Markets Length: 50 Creation-Date: 2019-10-07 Number: 454 Handle: RePEc:csl:devewp:454 File-URL: https://dagliano.unimi.it/wp-content/uploads/2020/01/WP454.pdf File-Format: application/pdf File-Size: 1100 Template-type: ReDIF-Paper 1.0 Author-Name: Giorgio Barba Navaretti Author-Email: barba@unimi.it Author-Workplace-Name: University of Milan and LdA Author-Name: Lionel Fontagnè Author-Email: lionel.fontagne@univ-paris1.fr Author-Workplace-Name: Paris School of Economics – Universit´e Paris I and CEPII Author-Name: Gianluca Orefice Author-Email: gianluca.orefice@cepii.fr Author-Workplace-Name: CEPII Author-Name: Giovanni Pica Author-Email: giovanni.pica@usi.ch Author-Workplace-Name: Università della Svizzera Italiana, LdA and CSEF Author-Name: Anna Cecilia Rosso Author-Email: anna.rosso@unimi.it Author-Workplace-Name: Università degli Studi di Milano and LdA Title: TBTs, Firm Organization and Labour Structure Abstract: This paper investigates the effects on firms’ occupational structure of shocks induced by the introduction of Technical Barriers to Trade (TBTs) in importing countries. We rely on the Specific Trade Concern (STC) data released by the WTO to identify trade-restrictive TBT measures, combined with matched employer-employee data for the population of French exporters over the period 1995-2010, and with information on the list of product-destinations served by each French exporter. Controlling for time-invariant firm/occupation effects and for time-varying sector/occupation shocks, IV estimates show that exporters respond to increased complexity associated with restrictive TBTs at destination by raising the share of managers at the expense of blue collars, white collars and professionals. This evidence is consistent with the growing literature exploring how firms organize their workforce composition in presence of exogenous (foreign) shocks; and it is also related to the well-beaten literature on the labour market effects of trade. Keywords: Skill composition; labor demand; job polarization; trade barriers Length: 30 pages Creation-Date: 2019-09-13 Revision-Date: 2020-09-01 Number: 453 Handle: RePEc:csl:devewp:453 File-URL: https://dagliano.unimi.it/wp-content/uploads/2024/02/WP453.pdf File-Format: application/pdf File-Size: 621 Template-type: ReDIF-Paper 1.0 Author-Name: Nicholas Ingwersen Author-Workplace-Name: Mathematica Policy Research Author-Name: Harounan Kazianga Author-Email: harounan.kazianga@okstate.edu Author-Workplace-Name: Oklahoma State University, Centro Studi Luca d'Agliano Author-Name: Leigh L. Linden Author-Email: leigh.linden@austin.utexas.edu Author-Workplace-Name: The University of Texas at Austin, BREAD, IPA, IZA, J-PAL, NBER Author-Name: Arif Mamun Author-Workplace-Name: Mathematica Policy Research Author-Name: Ali Protik Author-Email: protik-ali@norc.org Author-Workplace-Name: NORC at the University of Chicago Author-Name: Matt Sloan Author-Workplace-Name: Mathematica Policy Research Title: The Long-Term Impacts of Girl-Friendly Schools: Evidence from the BRIGHT School Construction Program in Burkina Faso Abstract: We evaluate the long-term effects of a "girl-friendly" primary school program in Burkina Faso, using a regression discontinuity design. Ten years later, primary school-age children in villages selected for the program attend school more often and score significantly higher on standardized tests. We also find long-term effects on academic and social outcomes for children exposed earlier in the program. Secondary-school-age youths and young adults (those old enough to have finished secondary school) complete primary and secondary school at higher rates and perform significantly better on standardized tests. Women old enough to have completed secondary school delay both marriage and childbearing. Classification-JEL: I24; I25; I28; O15 Keywords: Africa; Education; Gender Inequality; Infrastructures Length: 27 Creation-Date: 2019-07-02 Number: 452 Handle: RePEc:csl:devewp:452 File-URL: https://dagliano.unimi.it/wp-content/uploads/2019/07/WP452.pdf File-Format: application/pdf File-Size: 324 Template-type: ReDIF-Paper 1.0 Author-Name: Mariapia Mendola Author-Email: mariapia.mendola@unimib.it Author-Homepage: https://sites.google.com/site/mariapiamendola/ Author-Workplace-Name: Università di Milano Bicocca, IZA and Centro Studi Luca d'Agliano Author-Name: Mengesha Yayo Negasi Author-Email: ymanga28@gmail.com Author-Workplace-Name: Ababa Science and Addis Ababa Science and Technology University Title: Nutritional and Schooling Impact of a Cash Transfer Program in Ethiopia: A Retrospective Analysis of Childhood Experience Abstract: The rate of malnutrition among under-five children in Ethiopia is among the highest in Sub-Saharan Africa and in the world. Since 2005, the Government of Ethiopia has been implementing a nation-wide social protection program, with the aim to improve nutrition and food security, decrease poverty and enhance human capital accumulation. This paper investigates the direct impact of this program on long-term anthropometric measures of nutritional status and the indirect effects on enrollment delay and educational attainment. Our research design uses unique administrative data on the regional coverage of the program and combines differences in program intensity across regions with differences across cohorts induced by the timing of the program. Findings show that early childhood exposure to the program leads to better nutritional status and hence higher human capital accumulation. Results are robust to different measures of program intensity, estimation samples, empirical models and some placebo tests. Classification-JEL: J15; D85; C45 Keywords: Cash Transfers; Social Protection; Nutrition; Primary Education; Ethiopia Length: 50 Creation-Date: 2019-06-19 Number: 451 Handle: RePEc:csl:devewp:451 File-URL: https://dagliano.unimi.it/wp-content/uploads/2019/06/WP451.pdf File-Format: application/pdf File-Size: 611 Template-type: ReDIF-Paper 1.0 Author-Name: Giorgio Brunello Author-Email: giorgio.brunello@unipd.it Author-Workplace-Name: University of Padova, IZA, Cesifo and ROA Author-Name: Elisabetta Lodigiani Author-Email: elisabetta.lodigiani@unipd.it Author-Workplace-Name: University of Padova and LdA Author-Name: Lorenzo Rocco Author-Email: lorenzo.rocco@unipd.it Author-Workplace-Name: University of Padova and IZA Title: Does Low Skilled Immigration Increase Profits? Evidence from Italian Local Labour Markets Abstract: We study the effects of low skilled immigration on firm profits, average wages, capital and total factor productivity (TFP) by combining firm-level and local labour market data from Italy. We find that low skilled immigration increases profits. This effect is small on average, larger for small firms and considerably larger for firms operating in local labour markets with a higher than median share of (before sample) low skilled employment. In these areas, substitution effects reduce average wages much more than elsewhere. Low skilled immigration has increased profits by lowering average wages and by increasing the capital stock, with no effect on TFP. Length: 52 Creation-Date: 2019-05-28 Number: 450 Handle: RePEc:csl:devewp:450 File-URL: https://dagliano.unimi.it/wp-content/uploads/2019/05/WP450.pdf File-Format: application/pdf File-Size: 3318 Template-type: ReDIF-Paper 1.0 Author-Name: Giorgio Barba Navaretti Author-Email: barba@unimi.it Author-Workplace-Name: University of Milan and LdA Author-Name: Giacomo Calzolari Author-Workplace-Name: European University Institute, CEPR and LdA Author-Name: Gianmarco Ottaviano Author-Email: gianmarco.ottaviano@unibocconi.it Author-Workplace-Name: Bocconi University, London School of Economics, CEP, CEPR and LdA Author-Name: Alberto Franco Pozzolo Author-Workplace-Name: University of Molise and LdA Title: Capital Market Union and Growth Prospects for Small and Medium Enterprises Abstract: One of the key aims of the CMU is easing the access of SMEs to credit and capital markets. This paper examines the role of SMEs in the European economy and their financial structure. It looks at the potential effects of the CMU, by specifically focusing on the informational market failures affecting SMEs finance. A fully integrated European Capital market will be beneficial to SMEs, and the European economy, if it does entice adequate large-scale technologies and actions to solve market failures related to informational issues. Otherwise, it may generate core-periphery outcomes, with peripheral regions and weakers SMEs further excluded from crucial sources of finance. Length: 27 Creation-Date: 2019-04-29 Number: 449 Handle: RePEc:csl:devewp:449 File-URL: https://dagliano.unimi.it/wp-content/uploads/2019/05/WP449.pdf File-Format: application/pdf File-Size: 784 Template-type: ReDIF-Paper 1.0 Author-Name: Giorgio Barba Navaretti Author-Email: barba@unimi.it Author-Workplace-Name: University of Milan and LdA Author-Name: Giacomo Calzolari Author-Workplace-Name: European University Institute, CEPR and LdA Author-Name: José Manuel Mansilla-Fernández Author-Workplace-Name: Universidad Pùblica de Navarra and LdA Author-Name: Alberto Franco Pozzolo Author-Workplace-Name: University of Molise and LdA Title: Doom Loop or Incomplete Union? Sovereign and Banking Risk Abstract: This chapter discusses the foremost regulatory advances and policy proposals for the so-called "doom loop", i.e. the perverse and destabilizing interconnections between sovereigns' and banks liabilities. We discuss how the merits of the proposed regulatory reforms are strictly intertwined with the mechanisms of risk sharing being built up and implemented within the Baking Union, and more broadly within the Eurozone. We argue that it is very unlikely that there might be viable solutions to the regulatory treatment of Sovereign exposures without a strenghtening of risk-sharing mechanisms. Length: 22 Creation-Date: 2019-04-29 Number: 448 Handle: RePEc:csl:devewp:448 File-URL: https://dagliano.unimi.it/wp-content/uploads/2019/05/WP448.pdf File-Format: application/pdf File-Size: 1140 Template-type: ReDIF-Paper 1.0 Author-Name: Silvia Marchesi Author-Email: silvia.marchesi@unimib.it Author-Workplace-Name: University of Milano Bicocca and Centro Studi Luca d'Agliano Author-Name: Tania Masi Author-Email: tania.masi@unimib.it Author-Workplace-Name: University of Milano Bicocca Title: Allocation of Implementing Power: Evidence from World Bank Projects Abstract: In this paper we explore the factors that determine the level at which World Bank projects are implemented. In particular, focusing on the importance of informational asymmetry between levels of government, we empirically assess whether this choice is influenced by the relative importance of local information at the recipient country level. Using an AidData dataset that provides information on more than 5800 World Bank projects for the period 1995-2014, and controlling for characteristics at both country and project level, we find that transparency does influence the probability that a project is implemented locally rather than nationally. More specifically, a one standard deviation decline in transparency increases the probability that a World Bank project will be implemented locally by 3 percent. Classification-JEL: F35; O19; D83 Keywords: World Bank projects; Implementing Agency; Transparency Length: 40 Creation-Date: 2019-03-18 Number: 447 Handle: RePEc:csl:devewp:447 File-URL: https://dagliano.unimi.it/wp-content/uploads/2019/05/WP447.pdf File-Format: application/pdf File-Size: 1346 Template-type: ReDIF-Paper 1.0 Author-Name: Antonella Nocco Author-Email: antonella.nocco@unisalento.it Author-Workplace-Name: Università del Salento Author-Name: Gianmarco I.P. Ottaviano Author-Email: gianmarco.ottaviano@unibocconi.it Author-Workplace-Name: Bocconi University Author-Name: Matteo Salto Author-Email: matteo.salto@ec.europa.eu Author-Workplace-Name: European Commission Title: Geography, Competition, and Optimal Multilateral Trade Policy Abstract: How should multilateral trade policy be designed in a world in which countries differ in terms of market access and technology, and firms with market power differ in terms of productivity? We answer this question in a model of monopolistic competition in which variable markups increasing in firm size are a key source of misallocation across firms and countries. We use 'disadvantaged' to refer to countries with smaller market size, worse state of technology (in terms of higher innovation and production costs), and worse geography (in terms of more remoteness from other countries). We show that, in a global welfare perspective, optimal multilateral trade policy should: promote the sales of low cost firms to all countries, but especially to disadvantaged ones; trim the sales of high cost firms to all countries, but especially to disadvantaged ones; reduce firm entry in all countries, but especially in disadvantaged ones. This would not only restore efficiency but also reduce welfare inequality between advantaged and disadvantaged countries if their differences in market size, state of technology and geography are large enough. Classification-JEL: D4; D6; F1; L0; L1 Keywords: International trade policy; monopolistic competition; firm heterogeneity; pricing to market; multilateralism Length: 37 Creation-Date: 2019-03-12 Number: 446 Handle: RePEc:csl:devewp:446 File-URL: https://dagliano.unimi.it/wp-content/uploads/2019/05/WP446.pdf File-Format: application/pdf File-Size: 365 Template-type: ReDIF-Paper 1.0 Author-Name: Vasiliki Fouka Author-Email: vfouka@stanford.edu Author-Workplace-Name: Stanford University Author-Name: Soumyajit Mazumder Author-Email: smazumder@g.harvard.edu Author-Workplace-Name: Harvard University Author-Name: Marco Tabellini Author-Email: mtabellini@hbs.edu Author-Workplace-Name: Harvard Business School Title: From Immigrants to Americans: Race and Assimilation during the Great Migration Abstract: How does the appearance of a new out-group affect the economic, social and cultural integration of previous outsiders? We study this question in the context of the first Great Migration (1915-1930), when 1.5 million African Americans moved from the US South to urban centers in the North, where 30 million Europeans had arrived since 1850. We test the hypothesis that black inflows led to the establishment of a binary black-white racial classification, and facilitated the incorporation of - previously racially ambiguous - European immigrants into the white majority. We exploit variation induced by the interaction between 1900 settlements of southern-born blacks in northern cities and state-level outmigration from the US South after 1910. Black arrivals increased both the effort exerted by immigrants to assimilate and their eventual Americanization. These average effects mask substantial heterogeneity: while initially less integrated groups (i.e. Southern and Eastern Europeans) exerted more assimilation effort, assimilation success was larger for those that were culturally closer to native whites (i.e. Western and Northern Europeans). These patterns are consistent with a framework in which changing perceptions of out-group distance among native whites lower the barriers to the assimilation of white immigrants. Classification-JEL: J11; J15; N32 Keywords: Immigration; Assimilation; Great Migration; Race; Group Identity Length: 85 Creation-Date: 2019-02-04 Number: 445 Handle: RePEc:csl:devewp:445 File-URL: https://dagliano.unimi.it/wp-content/uploads/2019/05/WP445.pdf File-Format: application/pdf File-Size: 2226 Template-type: ReDIF-Paper 1.0 Author-Name: Maria Rosaria Carillo Author-Email: carillo@uniparthenope.it Author-Workplace-Name: University of Naples Parthenope Author-Name: Vincenzo Lombardo Author-Email: vincenzo.lombardo@uniparthenope.it Author-Workplace-Name: University of Naples Parthenope Author-Name: Alberto Zazzaro Author-Email: alberto.zazzaro@unina.it Author-Workplace-Name: Universit of Naples Federico II, CSEF and MoFiR Title: The Rise and Fall of Family Firms in the Process of Development Abstract: This paper explores the causes and the consequences of the evolution of family firms in the growth process. The theory suggests that in early stages of development, valuable family specific human capital stimulated the productivity of family firms and the development process. However, in light of the rise in the importance of managerial talents for firms' productivity in later stages, family firms generated a misallocation of managerial talents, curbing productivity and economic growth. Evidence supports the dual impact of family firms in the development process and the role of socio-cultural characteristics in observed variations in the productivity of family firms. Classification-JEL: D2; J62; L26; O14; O33; O4; Z1 Keywords: Family firms; economic development and growth; culture and social structure; allocation of talents; industrialization Length: 78 Creation-Date: 2019-01-22 Number: 444 Handle: RePEc:csl:devewp:444 File-URL: https://dagliano.unimi.it/wp-content/uploads/2019/01/WP444.pdf File-Format: application/pdf File-Size: 1671 Template-type: ReDIF-Paper 1.0 Author-Name: Jacopo Bonan Author-Email: jacopo.bonan@polimi.it Author-Workplace-Name: Politecnico di Milano, EIEE and LdA Author-Name: Cristina Cattaneo Author-Email: cristina.cattaneo@eiee.org Author-Workplace-Name: EIEE, Centro Euro-Mediterraneo sui Cambiamenti Climatici and FEEM Author-Name: Giovanna d'Adda Author-Email: giovanna.dadda@unimi.it Author-Workplace-Name: University of Milan Author-Name: Massimo Tavoni Author-Workplace-Name: Politecnico di Milano, EIEE and CMCC Title: Heterogeneity of social information programs: the role of identity and values Abstract: Social information programs are increasingly used to nudge behavioral change, but still relatively little is known about sources of heterogeneity in their impact. This paper examines whether individual values are associated with heterogeneous responses to social information. Using data from a large field experiment of household energy conservation, we combine electricity metering and survey data to study how environmental values affect the impact of the program. We then leverage the role of values by augmenting social information messages with an environmental self-identity prime. Results show that values are important drivers of heterogeneity. Moreover, enhancing social information by making environmental self-identity more salient boosts the social information impact, but only among individuals who acted pro-environmentally in the past. Classification-JEL: D91; Q49 Keywords: Energy consumption; Environmental identity; Social norms; RCT Length: 58 Creation-Date: 2019-01-21 Number: 443 Handle: RePEc:csl:devewp:443 File-URL: https://dagliano.unimi.it/wp-content/uploads/2019/05/WP443.pdf File-Format: application/pdf File-Size: 942 Template-type: ReDIF-Paper 1.0 Author-Name: Mi Dai Author-Workplace-Name: Beijing Normal University Author-Name: Francesco Nucci Author-Email: francesco.nucci@uniroma1.it Author-Workplace-Name: Sapienza University Author-Name: Alberto Franco Pozzolo Author-Workplace-Name: University of Molise and Centro Studi Luca d'Agliano Author-Name: Jianwei Xu Author-Workplace-Name: Beijing Normal University Title: Access to Finance and the Exchange Rate Sensitivity of Exports Abstract: The recent empirical literature estimating the elasticity of exports to exchange-rate fluctuations has shown that, while devaluations have in general a positive effect on exports, the size of it varies significantly depending on firm, sector and country characteristics. In this paper we lend theoretical and empirical support to the view that the financial conditions of a firm have a relevant effect on the way in which exchange rate movements affect its export decisions. In particular, we show that exporting activities by more financially constrained firms are more sensitive to exchange rate fluctuations than those by firms with a better ability to raise external capital. This finding is detected at both the intensive and extensive margin of export. Consistent with the result on export quantities, we also document that the exchange rate pass-through to export prices denominated in the domestic currency is lower for firms facing stronger financial constraints. Moreover, we show that our results are robust to controlling for a variety of alternative features that may affect the firm-level elasticity of exports to exchange-rate, such as the intensity of use of imported inputs, labor productivity, the degree of price stickiness and firm size. Classification-JEL: F14; F31 Keywords: Exports; Exchane Rate; Financial Constraints Length: 40 Creation-Date: 2019-01-11 Number: 442 Handle: RePEc:csl:devewp:442 File-URL: https://dagliano.unimi.it/wp-content/uploads/2019/01/WP442.pdf File-Format: application/pdf File-Size: 781 Template-type: ReDIF-Paper 1.0 Author-Name: Filomena Pietrovito Author-Email: filomena.pietrovito@unimol.it Author-Workplace-Name: University of Molise Author-Name: Alberto Franco Pozzolo Author-Email: pozzolo@unimol.it Author-Workplace-Name: University of Molise and Centro Studi Luca d'Agliano Title: Credit constraints and firm exports: Evidence from SMEs in emerging and developing countries Abstract: We study the relationship between credit contraints and export behavior using a large and heterogeneous sample of small and medium size firms from 65 emerging and developing countries between 2003 and 2014. We measure credit contraints by means of each firm's self-assessment of whether it is credit rationed, and we follow an instrumental variable approach that uses firm-level instruments to address the potential endogeneity of credit constraints with respect to export performance. We find robust evidence of a negative, statistically and economically significant effect of financial constraints on both the probability that a firm exports (the extensive margin of exports) and the share of exports over total sales (the intensive margin of exports). Classification-JEL: D22; F10; F14 Keywords: export decisions; margin of exports; credit contraints; firm level Length: 33 Creation-Date: 2019-01-11 Number: 441 Handle: RePEc:csl:devewp:441 File-URL: https://dagliano.unimi.it/wp-content/uploads/2019/01/WP441.pdf File-Format: application/pdf File-Size: 659 Template-type: ReDIF-Paper 1.0 Author-Name: Anna Rosso Author-Email: anna.rosso@unimi.it Author-Workplace-Name: University of Milan and Centro Studi Luca d'Agliano Title: Emigrant Selection and Wages: the Case of Poland Abstract: In this paper, I use a unique individual-level pre-migration labour market dataset for Poland to examine emigrant selection in two major destination countries, the United Kingdom and Germany. I compare the pre-migration observable and unobservable characteristics of emigrants with those of non-emigrants in Poland. First, I find that Polish emigrants to the UK are more similarly educated to non-emigrants while being more negatively selected on residual wages. Second, emigrants to Germany are disproportionately more likely to fall in the middle of the education distribution but they are no different than non-emigrants in terms of unobservable skills. The familiar predictions of the Borjas (1987) model allow me to partially undercover the mechanism driving the selection patterns of Polish emigrants. I contribute to the migrant selection literature by providing additional evidence on how migrants respond to differences in both labour markets and migration policies across countries. Classification-JEL: F22; J61; O15; D33 Keywords: International migration; selection; skill prices; EU enlargement; inequality Length: 59 Creation-Date: 2018-09-28 Revision-Date: 2019-04-08 Number: 440 Handle: RePEc:csl:devewp:440 File-URL: https://dagliano.unimi.it/wp-content/uploads/2019/04/WP2018_440.pdf File-Format: application/pdf File-Size: 2655 Template-type: ReDIF-Paper 1.0 Author-Name: Mariapia Mendola Author-Email: mariapia.mendola@unimib.it Author-Homepage: https://sites.google.com/site/mariapiamendola/ Author-Workplace-Name: University of Milan BIcocca, Centro Studi Luca d'Agliano and IZA Title: Global evidence on prospecitve migrants from developing countries Abstract: This paper examines the determinants of individual intentions to migrate abroad by using a recent global survey and by exploiting both within and cross-country variation in standard migration drivers. The sample includes more than 1 million individuals, drawn as representative samples from 159 countries around the world, representing 98 percent of the world's population and income. The analysis focuses on developing regions and shows that migration intentions differ substantially across countries and are correlated with structural economic factors such as farmland availability, rural population share and especially local joblessness. Heterogeneity within countries is even more pronounced though. International migration intentions vary systematically with key individual characteristics - age, gender, education and income - but some of these relationships are not similar across countries. Finally, we quantify the hump shape of the 'individual mobility transition' in countries with different levels of development and show that cross-border migration intentions rise sharply with income when respondents get richer among poorer people, while the same does not hold when richer respondents are in richer contexts. Classification-JEL: F01; F22; O15 Keywords: International Migration; Migration Intentions; Developing Countries; Cross-country Survey Data Length: 33 Creation-Date: 2018-09-18 Revision-Date: 2019-01-02 Number: 439 Handle: RePEc:csl:devewp:439 File-URL: https://dagliano.unimi.it/wp-content/uploads/2019/01/WP2018_439.pdf File-Format: application/pdf File-Size: 2772 Template-type: ReDIF-Paper 1.0 Author-Name: Giorgio Barba Navaretti Author-Email: barba@unimi.it Author-Workplace-Name: Università degli Studi di Milano and Centro Studi Luca d'Agliano Author-Name: Giulia Felice Author-Email: giulia.felice@unimi.it Author-Workplace-Name: Politecnico di Milano and Centro Studi Luca d'Agliano Author-Name: Emanuele Forlani Author-Email: emanuele.forlani@unibo.it Author-Workplace-Name: Università degli Studi di Bologna and Centro Studi Luca d'Agliano Author-Name: Paolo Garella Author-Email: paolo.garella@unimi.it Author-Workplace-Name: Università degli Studi di Milano and Centro Studi Luca d'Agliano Title: Non-tariff measures and competitiveness Abstract: In this paper, we explore how tariff and standard-like Non-Tariff Measures (NTMs) introduced by the EU are related with market conditions in domestic EU markets. While Tariffs work as a pure tax on import, standard-like NTMs potentially affcet costs of both domestic firms and foreign exporters. NTMs may not necessarily work as protectionist measures and even induce pro-competitive effects in the domestic market in the longer term, especially if we allow for firms mobility. The impact could be different for large and small firms. We extend the model by Melitz and Ottaviano (2008) to include Non-Tariff barriers. We derive some testable implications relating Non-Tariff barriers to the number of firms selling in the domestic market and average efficiency. The link between NTMs and domestic market conditions depends on whether they involve new standards and technical specifications imposed on both domestic and foreign firms or, rather, the extension to foreign firms of standards and technical specifications already adopted by domestic firms. In the first case, there is a decline in the number of firms and in average productivity; in the second case, NTMs induce pro-competitive effects: an increase in the number of firms and of average productivity. We then take the model to the data for a group of European countries and manufacturing industries. We combine Compnet data for 15 EU countries in 2001-2012, providing information on firms performance at the industry level and by size class, with the STC WTO-I-TIP database, with information on Specific Trade Concerns raised at the WTO on NTMs and with the Trains database with information on Tariffs. The NTMs that we consider have similar effects as in the second NTMs case in the theoretical model; the results for Tariff are in the same direction, albeit of a larger magnitude. These results are consistent with a theoretical framework allowing for firm mobility in the longer term. Classification-JEL: F13; F14 Keywords: Tariffs; Non-tariff Measures; Heterogeneous Firms; International Trade; EU Length: 41 Creation-Date: 2018-09-12 Revision-Date: 2023-02-01 Number: 438 Handle: RePEc:csl:devewp:438 File-URL: https://dagliano.unimi.it/wp-content/uploads/2023/01/WP2018_438.pdf File-Format: application/pdf File-Size: 1313 Template-type: ReDIF-Paper 1.0 Author-Name: Silvia Marchesi Author-Email: silvia.marchesi@unimi.it Author-Workplace-Name: University of Milano Bicocca and Centro Studi Luca D'Agliano Author-Name: Tania Masi Author-Email: tania.masi@unimib.it Author-Workplace-Name: University of Milano Bicocca Title: Life After Default: Private vs. Official Sovereign Debt Restructurings Abstract: This paper studies the relationship between sovereign debt default and annual GDP growth taking into account the depth of a debt restructuring and distinguishing between private and official deals, as well as between debt flow and stock reduction. Analyzing 520 restructuring episodes, over the period 1975-2013, we find that private and official defaults may have different growth outcomes. Most importantly, controlling for the severity of the debt crisis, we are able to detect a more lasting and negative relationship between default and growth. While private defaults are generally associated with lower growth during the crisis and over the long run (mitigated by the amount involved), for official defaulters we do not observe a growth contraction throughout the years of the crisis and they are associated with higher growth over the long run (independently of the amount involved). When debt relief operations involve debt write offs, however, the negative relationship between private default and growth becomes blurred, while official defaulters strongly benefit in terms of growth from the face value reduction. Using the Synthetic Control Method, we present further evidence for the heterogeneity of the economic impact of debt restructurings, confirming that official and private defaults may have different effects on GDP growth and should then be treated differently. Classification-JEL: F34; G15; H63 Keywords: Haircuts; Output losses; Sovereign defaults Length: 76 Creation-Date: 2018-06-04 Number: 437 Handle: RePEc:csl:devewp:437 File-URL: https://dagliano.unimi.it/wp-content/uploads/2019/05/WP2018_437.pdf File-Format: application/pdf File-Size: 981 Template-type: ReDIF-Paper 1.0 Author-Name: Harounan Kazianga Author-Email: harounan.kazianga@okstate.edu Author-Workplace-Name: Oklahoma State University Author-Name: Zaki Wahhaj Author-Email: z.wahhaj@kent.ac.uk Author-Workplace-Name: University of Kent Title: Will Urban Migrants Formally Insure their Rural Relatives? Family Networks and Rainfall Index Insurance in Burkina Faso Abstract: We present findings from a pilot study exploring whether and how existing ties between urban migrants and rural farmers may be used to provide the latter improved access to formal insurance. Urban migrants in Ouagadougou (the capital of Burkina Faso) originating from nearby villages were offered, at the prevailing market price, a rainfall index insurance product that can potentially protect their rural relatives from adverse weather shocks. The product had an uptake of 22% during the two-week subscription window. Uptake rates were higher by 17-22 ppts among urban migrants who were randomly offered an insurance policy that would make pay-outs directly to the intended beneficiary rather than the subscriber. We argue that rainfall index insurance can complement informal risk-sharing networks by mitigating problems of informational asymmetry and self-control issues. Classification-JEL: O15; O16; G21 Keywords: Microinsurance markets, Indexed insurance, Rainfall, Migration, Informal insurance networks Length: 35 Creation-Date: 2018-03-15 Number: 436 Handle: RePEc:csl:devewp:436 File-URL: https://dagliano.unimi.it/wp-content/uploads/2018/03/WP2018_436.pdf File-Format: application/pdf File-Size: 896 Template-type: ReDIF-Paper 1.0 Author-Name: Francesco Fasani Author-Workplace-Name: QMUL, CReAM, IZA and CEPR Author-Name: Tommaso Frattini Author-Email: tommaso.frattini@unimi.it Author-Homepage: https://sites.unimi.it/tommasofrattini/ Author-Workplace-Name: University of Milan, LdA, CReAM, IZA and CEPR Author-Name: Luigi Minale Author-Workplace-Name: Universidad Carlos III de Madrid, CReAM and IZA Title: (The Struggle for) Refugee Integration into the Labour Market: Evidence from Europe Abstract: In this paper, we use repeated cross-sectional survey data to study the labour market performance of refugees across several EU countries and over time. In the first part, we document that labour market outcomes for refugees are consistently worse than those of other comparable migrants. The gap remains sizeable even after controlling for individual characteristics as well as for cohort and destination country. Refugees are 11.6 percent less likely to have a job and 22.1 percent more likely to be unemployed than migrants with similar characteristics. Moreover, their income, occupational quality and labour market participation are also relatively weaker. This gap persists until about 10 years after immigration. In the second part, we assess the role of asylum policies in explaining the observed refugee gap. We conduct a difference-in-differences analysis that exploits the differential timing of dispersal policy enactment across European countries: we show that refugee cohorts exposed to these policies have persistently worse labour market outcomes. Further, we find that entry cohorts admitted when refugee status recognition rates are relatively high integrate better into the host country labour market. Classification-JEL: F22; J61; J15 Keywords: Asylum seekers; assimilation; refugee gap; asylum policies. Length: 57 Creation-Date: 2018-02-13 Number: 435 Handle: RePEc:csl:devewp:435 File-URL: https://dagliano.unimi.it/wp-content/uploads/2020/03/WP435.pdf File-Format: application/pdf File-Size: 1558 Template-type: ReDIF-Paper 1.0 Author-Name: Matteo Fiorini Author-Email: Matteo.Fiorini@EUI.eu Author-Workplace-Name: RSCAS (European University Institute) Author-Name: Giorgia Giovannetti Author-Email: giorgia.giovannetti@unifi.it Author-Workplace-Name: University of Florence and RSCAS (European University Institute) Author-Name: Mauro Lanati Author-Email: Mauro.Lanati@EUI.eu Author-Workplace-Name: RSCAS (European University Institute) Author-Name: Filippo Santi Author-Email: filippo.santi@unifi.it Author-Workplace-Name: University of Florence Title: Asymmetric Cultural Proximity and Greenfield FDI Abstract: This paper investigates the role of asymmetric cultural proximity (CP) on greenfield foreign direct investment (FDI). We build a conceptual framework that explicitly accounts for cultural attractiveness as an asymmetric dimension within a broad notion of CP. We revisit the existing supply/origin-side theories of bilateral FDI to derive a gravity equation suited for testing the impact of (i) the attractiveness of destination's culture for citizens in the origin country, and (ii) the attractiveness of origin's culture for individuals in the destination economy. While the role of the former direction of CP is well understood in the literature, we propose new mechanisms to rationalize that of the latter. We use exports and imports of cultural goods to proxy for the two directions of asymmetric and time-dependent CP in the same empirical specification. The econometric analysis confirms a positive role of asymmetric CP as a determinant of Greenfield FDI. Moreover, it suggests a stronger investment effect of the origin's culture attractiveness for the destination country. Finally, it provides support for the mechanisms proposed in the theoretical discussion. Classification-JEL: F14; F21; F23; Z10 Keywords: Cultural proximity; Greenfield FDI; Cultural trade; Gravity model Length: 50 Creation-Date: 2018-01-29 Number: 434 Handle: RePEc:csl:devewp:434 File-URL: https://dagliano.unimi.it/wp-content/uploads/2018/01/WP2018_434.pdf File-Format: application/pdf File-Size: 1753 Template-type: ReDIF-Paper 1.0 Author-Name: Cristina Cirillo Author-Workplace-Name: University of Florence and University of Trento Author-Name: Giorgia Giovannetti Author-Email: giorgia.giovannetti@unifi.it Author-Workplace-Name: University of Florence, European University Institute and Luca D'Agliano Center Title: Do Cash Transfers Trigger Investment? Evidence for Peru Abstract: This paper provides an impact evaluation of the Juntos programme on households' decision to invest in livestock and agricultural and non-agricultural assets used for income generating activities. Using Propensity Score Matching and Difference in Difference techniques, we show: i) that beneficiaries are significantly more likely to invest in productive assets and activities with respect to non-beneficiaries; ii) that Juntos is more likely to relax liquidity contraints rather than to be used as an insurance for risky investments; iii) that the program benefits the poor but not the poorest of the poor. Duration and transfers regularity do not produce significant differences between groups of beneficiaries. However, results show a sustained impact of the programme over time. Classification-JEL: I38; H20; O12; H43 Keywords: Conditional cash transfers; Impact evaluation; Households investments; Juntos Length: 25 Creation-Date: 2018-01-29 Number: 433 Handle: RePEc:csl:devewp:433 File-URL: https://dagliano.unimi.it/wp-content/uploads/2019/05/WP2018_433.pdf File-Format: application/pdf File-Size: 743 Template-type: ReDIF-Paper 1.0 Author-Name: Guido Friebel Author-Email: gfriebel@wiwi.uni-frankfurt.de Author-Workplace-Name: Goethe University Frankfurt, CEPR and IZA Author-Name: Miriam Manchin Author-Email: m.manchin@ucl.ac.uk Author-Workplace-Name: University College of London Author-Name: Mariapia Mendola Author-Email: mariapia.mendola@unimib.it Author-Homepage: https://sites.google.com/site/mariapiamendola/ Author-Workplace-Name: Università di Milano-Bicocca and IZA Author-Name: Giovanni Prarolo Author-Email: giovanni.prarolo@unibo.it Author-Workplace-Name: Università di Bologna Title: Human Smuggling and Intentions to Migrate: Global Evidence From a Supply Shock along Africa-to-Europe Migration Routes Abstract: Africa-to-Europe irregular migration depends heavily on human smuggling services. The demise of the Gaddafi regime in 2011 marked the end of a bilateral agreement between Italy and Libya and opened the Central Mediterranean Route for irregular border crossing. How did this remarkable increase in human smuggling services affect migration intentions in the rest of the region? This paper isolates a causal impact by exploiting the spatial dimension of the smuggling network and its change over time, which produced a heterogeneous decrease in bilateral migration distances between countries in Africa and Europe. We use this source of variation and a novel dataset of bilateral distances along irregular land and sea routes, combined with cross-country survey data on individual intentions to move from Africa to Europe between 2010 and 2012. Netting out pair- and country-by-time-specific fixed effects, we find a large negative effect of distance along smuggling routes on individual migration intentions. Shorter distances increase the willingness to migrate especially for youth, (medium) skilled individuals and those with a network abroad. The effect is stronger in origin countries not too far from Libya and with weak rule of law. Classification-JEL: K23; K42 Keywords: International Migration, Human Smuggling, Illegal Migration, Libyan Civil War Length: 31 Creation-Date: 2018-01-29 Number: 432 Handle: RePEc:csl:devewp:432 File-URL: https://dagliano.unimi.it/wp-content/uploads/2017/12/WP2017_432.pdf File-Format: application/pdf File-Size: 1076 Template-type: ReDIF-Paper 1.0 Author-Name: Jacopo Bonan Author-Email: jacopo.bonan@feem.it Author-Workplace-Name: FEEM, LdA and CMCC Author-Name: Pietro Battiston Author-Workplace-Name: University of Milan-Bicocca, Italy Author-Name: Jaimie Bleck Author-Workplace-Name: University of Notre Dame, USA Author-Name: Philippe LeMay Boucher Author-Workplace-Name: Heriot Watt University, UK Author-Name: Stefano Pareglio Author-Workplace-Name: Università Cattolica del Sacro Cuore and FEEM, Italy Author-Name: Bassirou Sarr Author-Workplace-Name: Paris School of Economics, France Author-Name: Massimo Tavoni Author-Workplace-Name: Politecnico di Milano and FEEM, Italy Title: Social Interaction and Technology Adoption: Experimental Evidence from Improved Cookstoves in Mali Abstract: We investigate the role of social interaction in technology adoption by conducting a field experiment in urban Mali. We invite women to attend a training session, where information on a more efficient cooking stove is provided along with the opportuinity to purchase the product at market price. During that session we randomly assign participants to receive information on a peer's actual purchase of an improved cookstove. We find that women are more likely to purchase during our intervention and use the product in the following six to nine months if the information they receive is on a peer who purchased the product and whose opinion is respected. In general, we find positive direct and spillover effects on attending the session. We then investigate whether social interaction plays a role in the natural diffusion of this technology by putting forward evidence that women who participated in the session and did not buy are more likely to later adopt the product when more women living around them own it. We investigate the various mechanisms of social interaction potentially at play and provide evidence supporting imitation effects, rather than social learning or constraint interaction. Classification-JEL: D91; O33; O13; M31 Keywords: Technology Adoption, Social Interaction Cookstoves, Mali Length: 59 Creation-Date: 2018-01-29 Number: 431 Handle: RePEc:csl:devewp:431 File-URL: https://dagliano.unimi.it/wp-content/uploads/2019/05/WP2017_431.pdf File-Format: application/pdf File-Size: 1582 Template-type: ReDIF-Paper 1.0 Author-Name: Tommaso Frattini Author-Email: tommaso.frattini@unimi.it Author-Homepage: https://sites.unimi.it/tommasofrattini/ Author-Workplace-Name: University of Milan Author-Name: Elena Meschi Author-Workplace-Name: University of Venice Ca'Foscari Title: The effect of immigrant peers in vocational schools Abstract: This paper provides new evidence on how the presence of immigrant peers in the classroom affects native student achievement. The analysis is based on longitudinal administrative data on two cohorts of vocational training students in Italy’s largest region. Vocational training institutions provide the ideal setting for studying these effects because they attract not only disproportionately high shares of immigrants but also the lowest ability native students. We adopt a value added model, and exploit within-school variation both within and across cohorts for identification. Our results show small negative average effects on maths test scores that are larger for low ability native students, strongly non-linear and only observable in classes with a high (top 20%) immigrant concentration. These outcomes are driven by classes with a high average linguistic distance between immigrants and natives, with no apparent role played by ethnic diversity. Classification-JEL: I20; J15 Keywords: Immigration, education, peer effects, vocational training, language Length: 39 Creation-Date: 2017-10-09 Number: 430 Handle: RePEc:csl:devewp:430 File-URL: https://dagliano.unimi.it/wp-content/uploads/2019/05/WP2017_430.pdf File-Format: application/pdf File-Size: 129 Template-type: ReDIF-Paper 1.0 Author-Name: Max Nathan Author-Email: m.nathan@bham.ac.uk Author-Workplace-Name: University of Birmingham and CEP Author-Name: Anna Rosso Author-Email: anna.rosso@unimi.it Author-Workplace-Name: University of Milan and Centro Studi Luca d'Agliano Title: Innovative events Abstract: We take a fresh look at firms' innovation-productivity linkages, using novel data capturing new aspects of innovative activity. We combine UK administrative microdata, media and website content to develop experimental metrics - new product/service launches - for a large panel of SMEs. Extensive validation and descriptive exercises show that launches complement patents, trademarks and innovation surveys. We also establish connections between launches and previous innovative activity. We then link IP, launches and productivity, controlling for media exposure and firm heterogeneity. Launch activity is associated with higher SME productivity, especially in the service sector. High-quality launches and medium-size firms help drive this result. Classification-JEL: C55; L86; O81 Keywords: innovation, productivity, ICT, data science Length: 77 Creation-Date: 2017-10-09 Revision-Date: 2019-04-08 Number: 429 Handle: RePEc:csl:devewp:429 File-URL: https://dagliano.unimi.it/wp-content/uploads/2019/04/WP2017_429.pdf File-Format: application/pdf File-Size: 126 Template-type: ReDIF-Paper 1.0 Author-Name: Armando Rungi Author-Email: armando.rungi@imtlucca.it Author-Workplace-Name: IMT Lucca Author-Name: Davide Del Prete Author-Workplace-Name: IMT Lucca Title: The ‘Smile Curve’: where Value is Added along Supply Chains Abstract: In this paper we analyze where value is added along supply chains on a sample of more than 2 million of firms in the European Union. We detect a non-linear U-shaped relationship between the value added generated by firms and their position on a productive sequence, for which tasks at the top and at the bottom show higher value added. Our findings are in line with previous hypotheses on the existence of a so-called 'smile curve', resumed by both business and economic studies and discussed at length in international fora. Our results are robust to different empirical strategies for flexible functional forms. As far as we know, ours is the first firm-level successful attempt to test for value generation along supply chains. Further, we find empirical support for a phenomenon of domestic retention of value added by MNEs, which may prefer keeping at home the tasks at higher potential to safeguard present and future competitive advantages. By country, intermediate stages of production are at higher value when performed by foreign affiliates, whereas domestic producers retain higher value at the very top and at the very bottom of the supply chain, organized either as independent suppliers or as domestic affiliates. Although an economic theory is still missing for explaining how and why value generation is non-linear along a typical technological sequence, here we argue that a microfoundation with firm-level data is useful for understanding the growth potential of countries' specialization patterns along different segments of supply chains. Classification-JEL: F23; F15; F14; L23; L25; L22 Keywords: global value chains, global supply chains, downstreamness, smile curve, downstreamness, value added, heterogeneous firms, multinational enterprises Length: 21 Creation-Date: 2017-04-10 Number: 428 Handle: RePEc:csl:devewp:428 File-URL: https://dagliano.unimi.it/wp-content/uploads/2017/03/WP2017_428.pdf File-Format: application/pdf File-Size: 657 Template-type: ReDIF-Paper 1.0 Author-Name: Tommaso Frattini Author-Email: tommaso.frattini@unimi.it Author-Workplace-Name: Università degli Studi di Milano Title: Integration of immigrants in host countries - what we know and what works Abstract: Integration of immigrants is at the forefront of policy concerns in many countries. This paper starts by documenting that in most European countries immigrants face significant labour market disadvantages relative to natives. Then it discusses how public policies may affect immigrants’ integration. First, we review the evidence on the effectiveness of language and introduction courses. Then, we discuss how different aspects of the migration policy framework may determine immigrants’ integration patterns. In particular, based on a review of the recent literature, we highlight the role of visa length and of predictability about migration duration in shaping migrants’ decisions on investments in country-specific human and social capital. Further, we discuss implications for refugee migration and also review the role of citizenship acquisition rules. The paper ends with an outlook of the consequences for sending countries. Classification-JEL: F22; J15; J61 Keywords: migration policy, citizenship, refugee migration Length: 25 Creation-Date: 2017-04-10 Number: 427 Handle: RePEc:csl:devewp:427 File-URL: https://dagliano.unimi.it/wp-content/uploads/2017/03/WP2017_427.pdf File-Format: application/pdf File-Size: 893 Template-type: ReDIF-Paper 1.0 Author-Name: Lionel Fontagné Author-Email: lionel.fontagne@univ-paris1.fr Author-Workplace-Name: PSE (Paris 1) and CEPII Author-Name: Jean Fouré Author-Workplace-Name: CEPII Author-Name: Gianluca Santoni Author-Workplace-Name: CEPII Title: Value Added in Motion: Macroeconomic Implications of Energy Price Trajectories Abstract: Taking a 2035 horizon, we examine how world energy consumption and emission patterns will be shaped by the changing demand and technological capabilities of different regions. We combine a convergence model fitting three production factors (capital, labour and energy) and two factor-specific productivities, along with a dynamic CGE model of the world economy. We consider three possible “worlds” with very different energy scarcity, and how Copenhagen pledges change economic agents’ calculus in each of these three situations. We find that the most dramatic changes in terms of location of value added are to be expected from the intrinsic differences among the three considered “worlds”, not so much in terms of economic impact of environmental pledges. Classification-JEL: E23; E27; F02; F47 Keywords: Growth, Macroeconomic Projections, long run, global economy Length: 18 Creation-Date: 2017-02-24 Number: 426 Handle: RePEc:csl:devewp:426 File-URL: https://dagliano.unimi.it/wp-content/uploads/2017/01/WP2017_426.pdf File-Format: application/pdf File-Size: 824 Template-type: ReDIF-Paper 1.0 Author-Name: Lionel Fontagné Author-Email: lionel.fontagne@univ-paris1.fr Author-Workplace-Name: PSE (Paris 1) and CEPII Author-Name: Jean Fouré Author-Workplace-Name: CEPII Title: Value Added in Motion: Modelling World Trade Patterns at the 2035 Horizon Abstract: We address in this paper the future geography of production, migration and energy at the world level, and the consequences for the largest European countries. We take scant account of the wide range of possible evolutions of the world economy in terms of technological progress and diffusion, education, demography including migrations and finally energy price and efficiency. Taking a 2035 horizon, we examine how world trade patterns will be shaped by the changing comparative advantages, demand, and capabilities of different regions, and what will be the implications in terms of location of value added at the sector and country level. We combine a convergence model fitting three production factors (capital, labour and energy) and two factor-specific productivities, alongside a dynamic CGE model of the world economy calibrated to reproduce observed elasticity of trade to income. Each scenario involves three steps. First, we project growth at country level based on factor accumulation, demography and migration, educational attainment and efficiency gains, and discuss uncertainties related to our main drivers. Second, we impose this framework on the CGE baseline. Third, we implement trade policy scenarios (tariffs as well as non-tariff measures in goods and services), in order to get factor allocation across sectors from the model as well as demand and trade patterns. Classification-JEL: E23; E27; F02; F17; F47 Keywords: Growth, Macroeconomic Projections, Dynamic Baselines Length: 68 Creation-Date: 2017-02-24 Number: 425 Handle: RePEc:csl:devewp:425 File-URL: https://dagliano.unimi.it/wp-content/uploads/2017/01/WP2017_425.pdf File-Format: application/pdf File-Size: 2524 Template-type: ReDIF-Paper 1.0 Author-Name: Lionel Fontagné Author-Email: ionel.fontagne@univ-paris1.fr Author-Workplace-Name: PSE (Paris 1) and CEPII Author-Name: Gianluca Santoni Author-Workplace-Name: CEPII Title: Value Added in Motion: Determinants of Value Added Location within the EU Abstract: In this paper we approach the determinants of value added location across European countries, from the recent developments to the 2035 horizon. In the first part of the paper, using detailed trade data, we show how competitiveness, demand and export composition have shaped the market shares of European countries, hence the location of production in Europe. Variance and covariance analysis point to the specificity of two countries: the overall market share development seems to be significantly affected by aggregate demand conditions in Germany and Italy. We then turn to trade in value added and observe that bigger countries tend to report a higher share of domestic value added because they can count on more efficient national value chains or a higher diversity of goods upstream. Interestingly, such evidence does not apply to Germany, or Poland, which exhibit a more dynamic insertion in international value chains. In the second part of the paper, we present the main prospects for the allocation of labour (i.e. migration), value added and the macro-economic effects of energy prices across European countries up to year 2035. The projections presented in the paper aim to summarize the main results obtained by other researchers within the "Value Added in Motion (VAM)" project. Classification-JEL: F10; F14; F40; C43 Keywords: Export competitiveness, trade performance, trade patterns after the global crisis Length: 39 Creation-Date: 2017-02-24 Number: 424 Handle: RePEc:csl:devewp:424 File-URL: https://dagliano.unimi.it/wp-content/uploads/2017/03/WP2017_424.pdf File-Format: application/pdf File-Size: 1330 Template-type: ReDIF-Paper 1.0 Author-Name: Christian Dustmann Author-Workplace-Name: University College London and CReAM Author-Name: Francesco Fasani Author-Workplace-Name: Queen Mary University of London, CReAM, CEPR and IZA Author-Name: Xin Meng Author-Workplace-Name: Australian National University, CReAM and IZA Author-Name: Luigi Minale Author-Workplace-Name: Universidad Carlos III de Madrid, CReAM and IZA Title: Risk Attitudes and Household Migration Decisions Abstract: This paper analyses the relation between individual migrations and the risk attitudes of other household members when migration is a household decision. We develop a simple model that implies that which member migrates depends on the distribution of risk attitudes among all household members, and that the risk diversification gain to other household members may induce migrations that would not take place in an individual framework. Using unique data for China on risk attitudes of internal (rural-urban) migrants and the families left behind, we empirically test three key implications of the model: (i) that conditional on migration gains, less risk averse individuals are more likely to migrate; (ii) that within households, the least risk averse individual is more likely to emigrate; and (iii) that across households, the most risk averse households are more likely to send migrants as long as they have at least one family member with sufficiently low risk aversion. Our results not only provide evidence that migration decisions are taken on a household level but also that the distribution of risk attitudes within the household affects whether a migration takes place and who will emigrate. Classification-JEL: J61, 015, R23, D81 Keywords: : risk aversion, internal migration, household decisions Creation-Date: 2017-02-24 Revision-Date: 2017-02-24 Number: 423 Handle: RePEc:csl:devewp:423 File-URL: https://dagliano.unimi.it/wp-content/uploads/2017/02/WP2017_423.pdf File-Format: application/pdf File-Size: 1811 Template-type: ReDIF-Paper 1.0 Author-Name: Giovanni Facchini Author-Email: giovanni.facchini@nottingham.ac.uk Author-Workplace-Name: University of Nottingham, CEPR, CES-Ifo, CReAM, GEP, and LdA Author-Name: Maggie Y. Liu Author-Email: yl372@georgetown.edu Author-Workplace-Name: Georgetown University Author-Name: Anna Maria Mayda Author-Email: amm224@georgetown.edu Author-Workplace-Name: Georgetown University, CEPR, IZA and LdA Author-Name: Minghai Zhou Author-Email: Minghai.Zhou@nottingham.edu.cn. Author-Workplace-Name: University of Nottingham, Ningbo China Title: The impact of China's WTO accession on internal migration Abstract: In this paper we focus on the changes in internal migration flows triggered by China’s 2001 entry into the World Trade Organization (WTO). We use a difference-in-difference empirical specification based on variation across Chinese prefectures before and after 2001. We relate changes in internal migration rates to the reduction in trade policy uncertainty faced by Chinese exporters to the U.S., as measured by the normal-trade relations (NTR) gap (Handley and Limao 2013, Pierce and Schott 2015). We find that Chinese prefectures facing a larger decline in their average NTR-gap experience a greater increase in internal migration. Our results also show that the impact on skilled and unskilled internal migration rates is consistent with the average skill intensity of export industries of a prefecture. Classification-JEL: F22; J61 Keywords: Immigration Policy, Trade Policy, Political Length: 52 Creation-Date: 2017-02-24 Number: 422 Handle: RePEc:csl:devewp:422 File-URL: https://dagliano.unimi.it/wp-content/uploads/2017/01/WP2017_422.pdf File-Format: application/pdf File-Size: 1335 Template-type: ReDIF-Paper 1.0 Author-Name: Frédéric Docquier Author-Email: frederic.docquier@uclouvain.be Author-Workplace-Name: FNRS and IRES, Université Catholique de Louvain Author-Name: Joël Machado Author-Email: joel.machado@uclouvain.be Author-Workplace-Name: IRES, Université Catholique de Louvain Title: Income disparities, population and migration flows over the 21st century Abstract: This paper provides worldwide projections of population, educational attainment, international migration and income for the 21st century. We develop and parametrize a dynamic, stylized model of the world economy that accounts for the key interdependencies between demographic and economic variables. Our baseline scenario is in line with the ‘high-fertility’ population prospects of the United Nations, assumes constant education and migration policies, long-run absolute convergence in total factor productivity (TFP) between emerging and high-income countries, and the absence of economic takeoff in Africa. It predicts a rise in the income share of Asia (from 38 to 59 percent of the world income) and in the demographic share of Africa (from 10 to 25 percent of the world population). However, over the 21st century, the worldwide proportion of adult migrants will only increase by one percentage point (from 3.5 to 4.5 percent). Half of this change is explained by the increased attractiveness of China and India; and the remaining part is explained by the increased migration pressure from Africa to Western Europe. Keeping its immigration policy unchanged, the 15 members of the European Union will see their average immigration rate increase from 7.5 to 17.2 percent. On the contrary, immigration rates will remain stable in the other high-income countries. Then, we assess the sensitivity of our projections to changes in migration policies, TFP disparities, fertility and education. The evolution of productivity in emerging economies and in Africa will have a drastic impact on the worldwide population size, income disparities and the migration pressure to the European Union. The world economy will also be drastically affected if TFP convergence is accompanied by a fall in migration costs to China and India. However, a large increase in the average European immigration rate is obtained under all the scenarios. More than ever, the management of immigration will become a major societal challenge for Europe. Keywords: Income prospects, Population prospects, Migration, World economy, Growth, Inequality Length: 29 Creation-Date: 2017-02-23 Number: 421 Handle: RePEc:csl:devewp:421 File-URL: https://dagliano.unimi.it/wp-content/uploads/2017/01/WP2017_421.pdf File-Format: application/pdf File-Size: 736 Template-type: ReDIF-Paper 1.0 Author-Name: Bernt Bratsberg Author-Email: bernt.bratsberg@frisch.uio.no Author-Workplace-Name: Frisch Centre Author-Name: Oddbjørn Raaum Author-Workplace-Name: Frisch Centre Author-Name: Ole Rogeberg Author-Workplace-Name: Frisch Centre Title: Migrant labor in the Norwegian petroleum sector Abstract: Drawing on comprehensive sets of administrative register data, we examine employment and pay structures in the Norwegian petroleum sector between 1992 and 2013, with a particular emphasis on foreign workers. The period covers a number of important changes taking place, with rising oil prices and growing investments during the 2000s and a large influx of labor migrants into Norwegian labor markets following the 2004 expansion of the European Union. Relative to foreign workers in other private‐sector industries, we find that the petroleum sector is characterized by greater use of posted workers, a higher occupational skill mix of immigrants, and, for those in skilled occupations, wages on par with native workers. Migrant petroleum workers have shorter durations in the country than other migrants, and the data reveal only modest job mobility to other industries, particularly among high‐skilled workers. Nonetheless, the evidence points to spillover effects from the petroleum sector as workers who move on to jobs in mainland industries earn a wage premium relative to those without petroleum experience. Length: 37 Creation-Date: 2017-02-23 Number: 420 Handle: RePEc:csl:devewp:420 File-URL: https://dagliano.unimi.it/wp-content/uploads/2017/01/WP2017_420.pdf File-Format: application/pdf File-Size: 536 Template-type: ReDIF-Paper 1.0 Author-Name: Zhi Wang Author-Workplace-Name: United States International Trade Commission Author-Name: Shang-Jin Wei Author-Workplace-Name: Asia Development bank Author-Name: Xinding Yu and Kunfu Zhu Author-Workplace-Name: University of International Business and Economics Title: Characterizing Global and Regional Manufacturing Value Chains: Stable and Evolving Features Abstract: Since the extent of offshoring and production sharing varies by sector and country, we develop measures of GVCs in terms of length, intensity, and location of participation at the levels of country, country-sector, and bilateral sector, and distinguish among pure domestic, directly traded, and indirectly traded production activities. Using these measures, we characterize cross-country production sharing patterns and GVC related trade activities for 35 sectors and 40 countries over 17 years. We find that the production chain for the world as a whole has become longer. While the relative ranking of the length at the Sector level is stable across countries, the average length for a given country-sector, of both the domestic and international components, and their participation and position in GVCs in general, do evolve significantly over time. The results contribute to a better understanding of features of global value chains and patterns of participation by individual country-sectors. Classification-JEL: F1; F6 Keywords: Production length, Position and Participation in Global Value Chains Length: 77 Creation-Date: 2017-02-23 Number: 419 Handle: RePEc:csl:devewp:419 File-URL: https://dagliano.unimi.it/wp-content/uploads/2017/01/WP2017_419.pdf File-Format: application/pdf File-Size: 1591 Template-type: ReDIF-Paper 1.0 Author-Name: Diego Puga Author-Email: diego.puga@cemfi.es Author-Workplace-Name: CEMFI and CEPR Title: The changing distribution of firms and workers across cities Abstract: This paper explores the changing distribution of firms and workers across cities. Cities have become increasingly specialized by function rather than sector, with business services, management and innovation concentrating in large urban areas and manufacturing dispersing across smaller cities instead. Big cities attract more educated workers, but the main factor distinguishing big cities is not so much who goes there but what happens to them as a result: locating in a big city allows firms to become more productive and workers to increase their earnings. And yet, as cities have become more different, they have also become more interdependent with important life-cycle patterns emerging. Many new firms and products start up in big diverse cities but eventually relocate, making up space for the next generation of new firms and products. Workers are often willing to pay the higher living cost of bigger cities not just to get higher wages today, but in the hope of learning and acquiring skills that, depending on their own characteristics and luck, they may exploit there or somewhere else. Classification-JEL: R14 Keywords: cities, heterogeneity Length: 33 Creation-Date: 2017-02-21 Number: 418 Handle: RePEc:csl:devewp:418 File-URL: https://dagliano.unimi.it/wp-content/uploads/2017/01/WP2017_418.pdf File-Format: application/pdf File-Size: 478 Template-type: ReDIF-Paper 1.0 Author-Name: Keith Head Author-Email: keith.head@sauder.ubc.ca Author-Workplace-Name: Sauder School of Business, University of British Columbia and CEPR Author-Name: Thierry Mayer Author-Email: thierry.mayer@sciencespo.fr Author-Workplace-Name: Sciences Po, Banque de France, CEPII, and CEPR Title: From Torino to Tychy: The limits of offshoring in the car industry Abstract: This paper estimates the role of country/variety comparative advantage in the decision to offshore assembly of nearly 2000 models of 184 car brands headquartered in 25 countries. While offshoring in the car industry has risen from 2000 to 2013, the top five offshoring brands account for the majority of car assembly relocated to low wage countries. We show that the decision to offshore a particular car model depends on two types of cost (dis)advantage of the home country relative to foreign locations. The first type, the component of assembly costs common to all models, is estimated via a structural triadic gravity equation. The second effect, model-level comparative advantage, is an interaction between proxies for the model’s skill and capital intensity and the factor abundance of the headquarters country. Length: 34 Creation-Date: 2017-02-21 Number: 417 Handle: RePEc:csl:devewp:417 File-URL: https://dagliano.unimi.it/wp-content/uploads/2017/01/WP2017_417.pdf File-Format: application/pdf File-Size: 1034 Template-type: ReDIF-Paper 1.0 Author-Name: Gordon H. Hanson Author-Email: gohanson@ucsd.edu Author-Workplace-Name: UC San Diego and NBER Title: What Do We Really Know about Offshoring? Industries and Countries in Global Production Sharing Abstract: Theories of offshoring model how firms divide production stages across borders. Empirical work on the phenomenon has long been hampered by a paucity of cross-country data on specialization within industries. In standard trade sources, we observe flows of goods between countries at the product level, but not the specific tasks that countries perform in manufacturing these products. The literature has consequently developed an inventive arsenal of indirect measures of industry fragmentation. In this paper, I turn to data on trade in assembly services - a labor- intensive task that typically occurs at the end of the production chain - to document which industries and countries are engaged in this common form of global production sharing. Trade in assembly services is prominent in just a handful of sectors, including apparel, electronics, footwear, furniture, toys, and transportation equipment. Data for the United States - prior to the post-1980 growth in trade with developing countries - reveal that most offshoring industries are relatively intensive in the employment of very low-wage labor, exhibit relatively wide variation in the wages paid to their employees, and use capital relatively unintensively. These industries tend to be less likely to hire workers in occupations that are intensive in routine tasks. Offshoring thus appears to be most prominent in sectors for which firms have a strong incentive to divide production between high-wage and low-wage countries and in which the automation of routinized jobs offer few opportunities to reduce labor intensity. Countries that specialize in manufacturing tend to cycle through off-shoring industries as they accumulate capital, starting out in apparel, footwear, and toys and later moving into electronics and electrical machinery. These industry dynamics are most pronounced in labor-abundant East Asia. They are not present in the resource-abundant countries that specialize in primary commodities. Length: 43 Creation-Date: 2017-02-21 Number: 416 Handle: RePEc:csl:devewp:416 File-URL: https://dagliano.unimi.it/wp-content/uploads/2017/01/WP2017_416.pdf File-Format: application/pdf File-Size: 2621 Template-type: ReDIF-Paper 1.0 Author-Name: Frederick van der Ploeg Author-Email: rick.vanderploeg@economics.ox.ac.uk Author-Workplace-Name: University of Oxford Title: Rapacious Oil Exploration in face of Regime Switches: Breakthrough Renewable Energy and Dynamic Resource Wars Abstract: Rapacious fossil fuel extraction occurs if fossil fuel producers fear that there is a probability that their under-the-ground assets becomes worth less. They show that rapacious depletion of oil reserves occurs if there is a probability of a breakthrough renewable energy coming to the market or a probability of climate policy finally becoming seriously ambitious. These are examples of one-way regime switches leading to the so-called Green Paradox. Two-way regimes switches also lead to rapacious oil depletion. They occur if there is a chance of being removed from office in a partisan political context with perennial election cycles or if there are dynamic resource wars with the hazard of being removed from office dependent on fighting efforts. This rapacity effect is stronger in societies with bad institutions and lack of political cohesiveness. Classification-JEL: D81; H20; Q31; Q38 Keywords: regime switches, breakthrough renewable energy, Green Paradox, resource Length: 40 Creation-Date: 2017-02-21 Number: 415 Handle: RePEc:csl:devewp:415 File-URL: https://dagliano.unimi.it/wp-content/uploads/2017/01/WP2017_415.pdf File-Format: application/pdf File-Size: 839 Template-type: ReDIF-Paper 1.0 Author-Name: Arik Levinson Author-Email: arik.levinson@georgetown.edu Author-Workplace-Name: Georgetown University and NBER Title: Energy Intensity: Prices, Policy, or Composition in US States Abstract: This project uses the historical experience of US states to ask why energy intensity has declined in some places more than in others, and whether that difference can help provide guidance for other states and countries to pursue less energy-intensive (and therefore less pollution-intensive) economic growth. There are several advantages to studying US states. The variation in energy intensity across states has been similar to the changes across countries, and some states – notably California – have been held up as models for the rest of the world by international organizations such as the World Bank. More importantly, the industrial composition of US states can be studied at a highly disaggregated level. The 473 six-digit NAICS codes in the manufacturing sector are measured comparably across states, ameliorating concerns about industry definition or aggregation bias. And finally, if California, Texas, New York and Florida were independent countries, they would rank among the world’s top twenty largest economies. What happens in individual US states matters not just for local and US national policy but for the climate across the globe. I show that US energy intensity fell by 40 percent between 1982 and 2007; that much of that decline was in the industrial sector; but that the decline is not explained by the decreasing industrial share of the US economy or the changing composition of the industrial sector. Across US states, prices and policies are correlated with the decreasing share and composition of manufacturing, but not with the technique of production, which appears to be the most important source of US energy intensity gains. Length: 32 Creation-Date: 2017-02-21 Number: 414 Handle: RePEc:csl:devewp:414 File-URL: https://dagliano.unimi.it/wp-content/uploads/2017/01/WP2017_414.pdf File-Format: application/pdf File-Size: 985 Template-type: ReDIF-Paper 1.0 Author-Name: Sylvain Weber Author-Workplace-Name: University of Neuchâtel Author-Name: Reyer Gerlagh Author-Email: R.Gerlagh@tilburguniversity.edu Author-Workplace-Name: Tilburg University Author-Name: Nicole A. Mathys Author-Workplace-Name: Federal Office for Spatial Development and University of Neuchâtel Author-Name: Daniel Moran Author-Workplace-Name: Norwegian University of Science and Technology Title: CO2 embedded in trade: trends and fossil fuel drivers Abstract: The amount of CO2 embedded in trade has substantially increased since 1990. We study the trends and some drivers over the period 1995-2009. We find that traded goods tend to have higher emission-intensities compared to average final demand. The second finding is that independently of sector structure, dirty countries tend to specialize in emission intensive sectors. This finding suggests a comparative advantage mechanism for CO2 and lends support to the hypothesis that trade liberalization tends to increase global emissions. The third finding is that, on average, emission-intensive countries have shifted from trade deficits to surpluses, so a larger share of goods is now produced in emission-intensive countries, consequently increasing global emissions. Finally, our analysis points to coal abundance as an important driver for high levels of both domestic emissions per value added and Sector specialization into emission-intensive sectors. Hence coal abundance is an important driver of net CO2 exports. Keywords: CO2 embedded in trade, fossil fuel Length: 37 Creation-Date: 2017-02-21 Number: 413 Handle: RePEc:csl:devewp:413 File-URL: https://dagliano.unimi.it/wp-content/uploads/2017/01/WP2017_413.pdf File-Format: application/pdf File-Size: 1152 Template-type: ReDIF-Paper 1.0 Author-Name: Marzio Galeotti Author-Email: marzio.galeotti@unimi.it Author-Workplace-Name: Università degli studi di Milano, Centro Studi Luca D’Agliano, and IEFE-Bocconi Author-Name: Silvia Salini Author-Email: silvia.salini@unimi.it Author-Workplace-Name: Università degli Studi di Milano Author-Name: Elena Verdolini Author-Email: elena.verdolini@feeem.it Author-Workplace-Name: Fondazione Eni Enrico Mattei and CMCC Title: Measuring Environmental Policy Stringency: Approaches, Validity, and Impact on Energy Efficiency Abstract: Proponents of the green growth strategy worldwide hold that reductions of harmful greenhouse gas emissions through environmental policy can be pursued together with increased growth and can result in higher competitiveness. Solid tests of this theory are impaired by the lack of appropriate empirical proxies for the commitment to, and stringency of, environmental policy. We contribute to the literature by: (1) computing different indicators of environmental policy stringency, both previously used in the literature and novel, (2) testing to what extent they convey similar insights through a comparison exercise, and (3) showing the implications of using one or the other methodology in an empirical application testing whether countries with more stringent environmental and energy policy have indeed shown historically higher degree of energy efficiency. The application is cast in an Energy Kuznets Curve framework. The analysis quite naturally carries over to the role of, more generally, economic policy. Classification-JEL: Q58; O57; C33 Keywords: Energy policy, environmental policy, ranking, Energy Kuznets Curve Length: 40 Creation-Date: 2017-02-21 Number: 412 Handle: RePEc:csl:devewp:412 File-URL: https://dagliano.unimi.it/wp-content/uploads/2017/01/WP2017_412.pdf File-Format: application/pdf File-Size: 3359 Template-type: ReDIF-Paper 1.0 Author-Name: Gaetano Alfredo Minerva Author-Email: ga.minerva@unibo.it Author-Workplace-Name: University of Bologna and Centro Studi Luca d’Agliano Title: Integration versus Outsourcing with Vertical Linkages Abstract: In the model by Grossman and Helpman (2002) no industry has both vertically integrated and specialized producers in equilibrium. I generalize their model by assuming that final goods producers (irrespective of whether they are vertically integrated with the upstream stage or specialized in the downstream stage only) need a basket of differentiated commodities, in addition to labor, as a fixed requirement for production. I then show the existence of an equilibrium populated simultaneously by vertically integrated and disintegrated firms. Classification-JEL: D23; D43; L24 Keywords: Vertical integration; Outsourcing; Vertical linkages; Industry equilibrium; Contractual Length: 9 Creation-Date: 2017-02-21 Number: 411 Handle: RePEc:csl:devewp:411 File-URL: https://dagliano.unimi.it/wp-content/uploads/2017/01/WP2017_411.pdf File-Format: application/pdf File-Size: 256 Template-type: ReDIF-Paper 1.0 Author-Name: Sultan Orazbayev Author-Email: s.orazbayev@ucl.ac.uk Author-Workplace-Name: University College London Title: International knowledge flows and the administrative barriers to mobility Abstract: The literature on diffusion of knowledge has shown positive influence of physical and cultural proximity, common Language and contiguity on the speed and magnitude of international knowledge flows. Knowledge diffusion is also facilitated by co-location, even temporary one, which helps researchers form personal ties and exchange tacit information through face-to-face contact. However, the ability of researchers to disseminate the results of their work, especially recent or on-going research, through temporary co-location (including international conferences, workshops and seminars) will be affected by the administrative barriers to mobility (‘paper walls’), for example travel visas. This paper uses a gravity-style empirical model to examine the link between the administrative barriers to mobility of the skilled workers (and students) and the magnitude/direction of international knowledge flows between 45 countries from 1990 to 2014. Additional calculations use information on travel visa requirements between 134 countries in year 2004. The results suggest that higher administrative barriers to mobility between countries are associated with reduced bilateral knowledge flows, especially of recent knowledge, and this negative effect can persist for about 9 years. The persistent effect of ‘paper walls’ is asymmetric and a country’s ability to import knowledge is affected more by the administrative barriers of the knowledge-exporting country, suggesting that co-location plays an important role for successful transfer of knowledge. Classification-JEL: F10; F29; O33; R10 Keywords: visa; diffusion of knowledge; academic mobility; skilled workers; immigration policy Length: 38 Creation-Date: 2016-12-22 Revision-Date: 2016-12-22 Number: 410 Handle: RePEc:csl:devewp:410 File-URL: https://dagliano.unimi.it/wp-content/uploads/2016/12/WP2016_410.pdf File-Format: application/pdf File-Size: 481 Template-type: ReDIF-Paper 1.0 Author-Name: Miriam Manchin Author-Email: manchin@ucl.ac.uk Author-Workplace-Name: University College London Author-Name: Sultan Orazbayev Author-Email: s.orazbayev@ucl.ac.uk Author-Workplace-Name: University College London Title: Social networks and the intention to migrate Abstract: Using a large survey spanning several years and more than 150 countries, we examine the importance of social networks in influencing individuals’ intention to migrate domestically or internationally. We distinguish close social networks (composed of friends and family) and broad social networks (composed of same-country residents with intention to migrate), both at home and abroad. We find that social networks abroad are important driving forces of migration intentions, more important than work-related aspects or income. In addition, we find that close social networks abroad with remittances matter significantly more than those without remittances as the individuals become more educated, indicating that networks might work through different channels for individuals with different level of education. On other hand, we find that having stronger close social networks at home reduces the likelihood of migration intentions. Classification-JEL: F22; F24; R23; O15 Keywords: intention to migrate, social networks, local migration, international migration, remittances Length: 51 Creation-Date: 2016-12-01 Revision-Date: 2016-12-01 Number: 409 Handle: RePEc:csl:devewp:409 File-URL: https://dagliano.unimi.it/wp-content/uploads/2016/12/WP2016_409.pdf File-Format: application/pdf File-Size: 932 Template-type: ReDIF-Paper 1.0 Author-Name: Harounan Kazianga Author-Email: harounan.kazianga@okstate.edu Author-Workplace-Name: Oklahoma State University Author-Name: Zaki Wahhaj Author-Email: z.wahhaj@kent.ac.uk Author-Workplace-Name: University of Kent Title: Intra-household Resource Allocation and Familial Ties Abstract: In this paper, we investigate the link between intra-household resource allocation and familial ties between household members. We show that, within the same geographic, economic and social environments, households where members have ‘stronger’ familial ties (nuclear family households) achieve near Pareto efficient allocation of productive resources and Pareto efficient allocation of consumption while households with ‘weaker’ familial ties (extended family households)do not. We propose a theoretical model of the household based on the idea that altruism between household members vary with familial ties which generates predictions consistent with the observed empirical patterns. Classification-JEL: O12; D13; Q1 Keywords: Intra-household Allocation, Social Norms, Extended Families, Altruism, Household Length: 56 Creation-Date: 2016-11-28 Number: 408 Handle: RePEc:csl:devewp:408 File-URL: https://dagliano.unimi.it/wp-content/uploads/2016/11/WP2016_408.pdf File-Format: application/pdf File-Size: 1170 Template-type: ReDIF-Paper 1.0 Author-Name: Davide Del Prete Author-Workplace-Name: IMT Lucca Author-Name: Giorgia Giovannetti Author-Email: giorgia.giovannetti@unifi.it Author-Workplace-Name: University of Firenze Author-Name: Enrico Marvasi Author-Workplace-Name: Politecnico di Milano Title: Global Value Chains Participation and Productivity Gains for North African Firms Abstract: This paper analyzes the participation of North African countries and …firms into Global Value Chains (GVCs) and its implications for competitiveness. First it shows that North African countries are not (yet) fully integrated into international production networks, although large part of their (low) trade is due to value added related upstream activities, and the importance of global linkages has been increasing over time. Then, it empirically investigates if and how the performance of North African …firms is affected by GVC participation. We fi…nd that …firms that have had access to international supply chains perform better, showing further productivity gains over time. The ability to get such improvements however relies on speci…fic characteristics, such as an adequate level of quality and compliance with international standards, along with specialized skills. Policies designed to support the latter represent then an important tool for linking developing countries to global production and trade, with possible positive consequences on their economic development. Classification-JEL: F14; F15; L23; L25; 055 Keywords: global value chains, firm heterogeneity, North Africa, productivity Length: 21 Creation-Date: 2016-11-14 Revision-Date: 2016-11-14 Number: 407 Handle: RePEc:csl:devewp:407 File-URL: https://dagliano.unimi.it/wp-content/uploads/2016/11/WP2016_407.pdf File-Format: application/pdf File-Size: 555 Template-type: ReDIF-Paper 1.0 Author-Name: Harounan Kazianga Author-Email: harounan.kazianga@okstate.edu Author-Workplace-Name: Oklahoma State University Author-Name: Leigh Linden Author-Workplace-Name: University of Texas at Austin Author-Name: Ali Protik Author-Workplace-Name: Mathematica Policy Research Author-Name: Matt Sloan Author-Workplace-Name: Mathematica Policy Research Title: The Medium-Term Impacts of Girl-Friendly Schools: Seven-Year Evidence from School Construction in Burkina Faso Abstract: We evaluate the long-term effect of a “girl-friendly” primary school program in Burkina Faso, using a regression discontinuity design. The intervention consisted of upgrading existing three-classroom schools to six-classroom schools to accommodate more grades. After six years, the program increased enrollment by 15.5 percentage points and increased test scores by 0.29 standard deviations. Students in treatment schools progress further through the grades, compared to students in non-selected schools. These upgraded schools are effective at getting children into school, getting children to start school on time, and keeping children in school longer. Overall, we find that the schools sustain the large impacts observed about three years earlier, with enrollment declining slightly from 18.5 to 14.9 for the cohorts of children who were exposed to both the first and second phases of the intervention. Classification-JEL: I24; I25; I28; O15 Keywords: Africa, Education, Gender Inequality, Infrastructures Length: 48 Creation-Date: 2016-11-11 Revision-Date: 2016-11-11 Number: 406 Handle: RePEc:csl:devewp:406 File-URL: https://www.dagliano.unimi.it/media/WP2016_406.pdf File-Format: application/pdf File-Size: 845 Template-type: ReDIF-Paper 1.0 Author-Name: Anna Rosso Author-Email: anna.rosso@unimi.it Author-Workplace-Name: University of Milan and Centro Studi Luca d'Agliano Title: Skill Transferability and Immigrant-Native Wage Gaps Abstract: In this paper, I examine wage developments among Eastern European immigrants versus UK natives between 1998 and 2008 by measuring the extent to which intergroup wage differentials are explainable by these groups’ changing attributes or by differences in returns to these characteristics. Specifically, by applying unconditional quantile regression to immigrant-native wage gaps before and after the 2004 EU enlargement to Eastern countries, I show that a major part of the decrease in the average wages of Eastern European migrants in the UK results from a large decrease in wage levels at the top of the distribution. At all distribution points, major role is played by occupational downgrading, which increases over time. The results further suggest that the decreased wage levels at the top of the distribution stem mainly from low transferability of skills acquired in the source country. Classification-JEL: J31; J61; F22 Keywords: migration, EU enlargement, labour market outcomes Length: 52 Creation-Date: 2016-10-21 Revision-Date: 2016-10-21 Number: 405 Handle: RePEc:csl:devewp:405 File-URL: https://www.dagliano.unimi.it/media/WP2016_405.pdf File-Format: application/pdf File-Size: 170 Template-type: ReDIF-Paper 1.0 Author-Name: Emanuele Forlani Author-Email: emanuele.forlani@eco.unipv.it Author-Workplace-Name: University of Pavia and Centro Studi Luca d'Agliano Author-Name: Elisabetta Lodigiani Author-Email: elisabetta.lodigiani@unipd.it Author-Workplace-Name: University of Padova and Centro Studi Luca d'Agliano Author-Name: Concetta Mendolicchio Author-Email: Concetta.Mendolicchio@iab.de Author-Workplace-Name: Institute for Employment Research Title: Natives and Migrants in Home Production: The Case of Germany Abstract: In this paper, we assess the impact of international migration, and the induced homecare service labour supply shock, on fertility decisions and labour supply of native females in Germany. Specifically, we consider individual data of native women from the German Socio-Economic Panel and we merge them with the data on the share of female immigrants and other regional labour market characteristics. We find that an increase of the share of female immigrants at the local level induces women to work longer hours and positively affects the probability to have a child. This effect strengthens for (medium) skilled women and, among them, for women younger than 35 years of age. The negative change in household work attitude confirms the behavioural validity of our results. Classification-JEL: J13; J22; J61 Keywords: Female labour, time allocation, fertility, international migration Length: 26 Creation-Date: 2016-10-21 Revision-Date: 2016-10-21 Number: 404 Handle: RePEc:csl:devewp:404 File-URL: https://www.dagliano.unimi.it/media/WP2016_404.pdf File-Format: application/pdf File-Size: 172 Template-type: ReDIF-Paper 1.0 Author-Name: Christian Dustmann Author-Workplace-Name: University College London Author-Name: Francesco Fasani Author-Workplace-Name: Queen Mary University London Author-Name: Tommaso Frattini Author-Email: tmmaso.frattini@unimi.it Author-Homepage: https://sites.unimi.it/tommasofrattini/ Author-Workplace-Name: University of Milan Author-Name: Luigi Minale Author-Workplace-Name: Universidad Carlos III de Madrid Author-Name: Uta Schӧnberg Author-Workplace-Name: University College London Title: On the Economics and Politics of Refugee Migration Abstract: This paper provides a comprehensive analysis of refugee migration, with emphasis on the current refugee crisis. After first reviewing the institutional framework laid out by the Geneva Convention for Refugees, we demonstrate that, despite numerous attempts at developing a common European asylum policy, EU countries continue to differ widely in interpretation and implementation. We then describe key features of the current refugee crisis and document the overall magnitudes and types of refugee movements, illegal border crossings, and asylum applications to EU member states. We next turn to the economics of refugee migrations, contrasting economic and refugee migrants, discussing the trade-offs between long-term asylum and temporary protection, and highlighting the economic advantages of increasingly coordinating the different national asylum policies. Finally, we illustrate the economic integration of past refugee migrants to EU countries and conclude with several policy recommendations. Classification-JEL: F22; J15; J61 Keywords: asylum policy, asylum seekers, refugee crisis Length: 65 Creation-Date: 2016-09-28 Revision-Date: 2016-09-28 Number: 403 Handle: RePEc:csl:devewp:403 File-URL: https://www.dagliano.unimi.it/media/WP2016_403.pdf File-Format: application/pdf File-Size: 1174 Template-type: ReDIF-Paper 1.0 Author-Name: Marco Alfano Author-Workplace-Name: University of Strathclyde Author-Name: Christian Dustmann Author-Workplace-Name: University College London Author-Name: Tommaso Frattini Author-Email: tommaso.frattini@unimi.it Author-Homepage: https://sites.unimi.it/tommasofrattini/ Author-Workplace-Name: University of Milan Title: Immigration and the UK: Reflections After Brexit Abstract: This paper describes the main features of immigration in the UK, and puts it in perspective with the experience of other advanced economies. It then reviews the most recent available evidence on the labour market and fiscal effects of immigration in the UK. This evidence is assessed in relation to some of the claims that were made in the run up to the Brexit referendum. Classification-JEL: J31; J61; J68 Keywords: Immigration, Brexit, labour market impact, fiscal impact Length: 25 Creation-Date: 2016-09-28 Revision-Date: 2016-09-28 Number: 402 Handle: RePEc:csl:devewp:402 File-URL: https://www.dagliano.unimi.it/media/WP2016_402.pdf File-Format: application/pdf File-Size: 982 Template-type: ReDIF-Paper 1.0 Author-Name: Richard Chisik Author-Email: rchisik@arts.ryerson.edu Author-Workplace-Name: Ryerson University Author-Name: Julian Emami Namini Author-Email: emaminamini@ese.eur.nl Author-Workplace-Name: Erasmus University Rotterdam Title: International Trade and Labor Market Discrimination Abstract: We embed a competitive search model with labor market discrimination, or nepotism, into a two-sector, two-country framework in order to analyze how labor market discrimination impacts the pattern of international trade and also how trade affects discrimination. Discrimination, or nepotism, reduces the matching probability and output in the skilled-labor intensive differentiated-product sector so that the country with more discriminatory firms has a comparative advantage in the simple sector. As countries alter their production mix in accordance with their comparative advantage, trade liberalization can then reinforce the negative effect of discrimination on development in the more discriminatory country and reduce its effect in the country with fewer discriminatory firms. Similarly, the profit difference between non-discriminatory and discriminatory firms increases in the less discriminatory country and shrinks in the more discriminatory one. In this way trade can further reduce discrimination in a country where it is less prevalent and increase it where it is more firmly entrenched. Classification-JEL: F16; F66; J71 Keywords: Discrimination, Nepotism, International Trade, Competitive Search Length: 37 Creation-Date: 2016-09-14 Revision-Date: 2016-09-14 Number: 401 Handle: RePEc:csl:devewp:401 File-URL: https://www.dagliano.unimi.it/media/WP2016_401.pdf File-Format: application/pdf File-Size: 591 Template-type: ReDIF-Paper 1.0 Author-Name: Axel Dreher Author-Workplace-Name: Heidelberg University Author-Name: Andreas Fuchs Author-Workplace-Name: Heidelberg University Author-Name: Roland Hodler Author-Workplace-Name: University of St. Gallen Author-Name: Bradley C. Parks Author-Workplace-Name: College of William and Mary Author-Name: Paul A. Raschky Author-Workplace-Name: Monash University Author-Name: Michael J. Tierney Author-Workplace-Name: College of William and Mary Title: Aid on Demand: African Leaders and the Geography of China's Foreign Assistance Abstract: This article investigates whether China's foreign aid is particularly prone to capture by political leaders of aid-receiving countries. We examine whether more Chinese aid is allocated to the birth regions of political leaders and regions populated by the ethnic groups to which leaders belong, controlling for indicators of need and various fixed effects. We have collected data on 117 African leaders' birthplaces and ethnic groups and have geocoded 1,650 Chinese development finance projects across 3,097 physical locations that were committed to Africa over the 2000{2012 period. Our econometric results show that when leaders hold power their birth regions receive substantially more funding from China than other subnational regions. We also find -less robust- evidence that African leaders direct more Chinese aid to areas populated by individuals who share their ethnicity. However, when we replicate the analysis for the World Bank, our regressions show no evidence of favoritism. We also evaluate the impact of Chinese aid on regional development, exploiting time variation in the amount of Chinese aid that results from China's production of steel and geographical variation in the probability that a subnational region will receive such aid. We find that Chinese aid improves local development outcomes, as measured by per-capita nighttime light emissions at the first and second subnational administrative level. We therefore conclude that China's foreign aid program has both distributional and developmental consequences for Africa. Classification-JEL: D73; F35; P33; R11 Keywords: Foreign aid, Favoritism, Aid allocation, Aid effectiveness, Africa, China, Official Development Assistance, Georeferenced data, Spatial analysis Length: 73 Creation-Date: 2016-09-13 Revision-Date: 2016-09-13 Number: 400 Handle: RePEc:csl:devewp:400 File-URL: https://www.dagliano.unimi.it/media/WP2016_4001.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Axel Dreher Author-Email: mail@axel-dreher.de Author-Workplace-Name: Heidelberg University Author-Name: Sarah Langlotz Author-Email: sarah.langlotz@awi.uni-heidelberg.de Author-Workplace-Name: Heidelberg University Author-Name: Silvia Marchesi Author-Email: silvia.marchesi@unimib.it Author-Workplace-Name: University of Milano Bicocca and Centro Studi Luca d’Agliano Title: Information transmission and ownership consolidation in aid programs Abstract: We investigate the degree of leeway donors of foreign aid should grant to recipient governments when their preferences over how to implement the aid are different, and both the donor and recipient possess some private information about the most effective policies. Intuitively, our model shows that donors should stay in control of how their aid is spent when their own private information is more important than the private information of the recipient. Less obviously, an increase in the difference of preferences between donors and recipients can increase rather than decrease the leeway that donors should grant the recipients, as the recipients’ information gains in importance relative to those of the donors, and recipients become less likely to communicate truthfully. We test the model using dyadic data for 28 bilateral aid donors and 112 recipients, over the 1995-2010 period. Our proxy for “centralized” aid is project aid, while budget aid leaves more leeway to the recipient and thus proxies for “decentralized” aid. In line with the model, misaligned interests and informational asymmetries indeed influence the shares of aid given as budget and project aid. Classification-JEL: C23, D82, F33, O1 Keywords: Delegation, communication, ownership, foreign aid Length: 42 Creation-Date: 2016-08-26 Number: 399 Handle: RePEc:csl:devewp:399 File-URL: https://www.dagliano.unimi.it/media/WP2016_399.pdf File-Format: application/pdf File-Size: 1100 Template-type: ReDIF-Paper 1.0 Author-Name: Silvia Marchesi Author-Workplace-Name: University of Milano Bicocca and Centro Studi Luca d'Agliano Title: Life after default? Private vs. official sovereign debt restructurings Abstract: This paper studies the relationship between sovereign debt default and annual GDP growth taking into account the depth of a debt restructuring and distinguishing between commercial and official sovereign debt restructurings. Analyzing 73 default episodes in 117 countries over the period 1975-2013, I fi…nd that defaults are correlated with contraction of short-term output growth. Most importantly, controlling for the severity of the default, I am able to detect a more lasting and negative link between default and growth. While higher private haircuts imply a negative stigma which is associated to lower growth over a longer period, higher amount of official restructuring may have some costs in the short-run, but are associated to an increase in growth in the long run. Adopting an alternative speci…cation, in which the dependent variable is a country’'s credit rating, I fi…nd very similar results for private haircuts and official restructurings. They are both associated to lower ratings up to seven years after the default. To the extent that credit ratings is a good proxy for borrowing costs, positive growth prospects for official defaulters seem not to be in‡uenced by a lower reputation in the credit markets. Classification-JEL: F34, G15, H63 Keywords: Haircuts, Output losses, Sovereign defaults Length: 49 Creation-Date: 2016-08-26 Revision-Date: 2016-08-26 Number: 398 Handle: RePEc:csl:devewp:398 File-URL: https://www.dagliano.unimi.it/media/WP2016_398.pdf File-Format: application/pdf File-Size: 786 Template-type: ReDIF-Paper 1.0 Author-Name: Giacinta Cestone Author-Workplace-Name: Cass Business School, CSEF and ECGI Author-Name: Chiara Fumagalli Author-Workplace-Name: Università Bocconi, CSEF and CEPR Author-Name: Francis Kramarz Author-Workplace-Name: CREST (ENSAE) Author-Name: Giovanni Pica Author-Workplace-Name: Università di Milano, Centro Studi Luca d’Agliano, CSEF and Paolo Baffi Centre Title: Insurance Between Firms: The Role of Internal Labor Markets Abstract: We investigate how Internal Labor Markets (ILMs) allow organizations to accommodate shocks calling for costly labor adjustments. Using data on workers’ mobility within French business groups, we find that adverse shocks affecting affiliated firms boost the proportion of workers redeployed to other group units rather than external firms. This effect is stronger when labor regulations are stricter and destination-firms are more efficient or enjoy better growth opportunities. Affiliated firms hit by positive shocks rely on the ILM for new hires, especially high-skilled workers. Overall, ILMs emerge as a co-insurance mechanism within organizations, providing job stability to employees as a by-product. Classification-JEL: G30, L22, J08, J40 Keywords: Internal Labor Markets, Organizations, Business Groups Length: 61 Creation-Date: 2016-06-20 Revision-Date: 2020-01-21 Number: 397 Handle: RePEc:csl:devewp:397 File-URL: https://dagliano.unimi.it/wp-content/uploads/2020/01/WP2020_397_revised.pdf File-Format: application/pdf File-Size: 1118 Template-type: ReDIF-Paper 1.0 Author-Name: Alfonso Arpaia Author-Workplace-Name: European Commission Author-Name: Aron Kiss Author-Workplace-Name: European Commission Author-Name: Balazs Palvolgyi Author-Workplace-Name: European Commission Author-Name: Alessandro Turrini Author-Workplace-Name: European Commission, IZA and Centro Studi Luca d'Agliano Title: Labour Mobility and Labour Market Adjustment in the EU Abstract: This paper assesses macroeconomic determinants of labour mobility and its role in the adjustment to asymmetric shocks. First, the paper develops stylised facts of mobility at the national and sub-national levels in the EU. Then, it explores the macroeconomic determinants of bilateral migration flows. Econometric evidence suggests that labour mobility increases significantly when a country joins the EU. While euro area membership seems not to be associated with an overall rise in the magnitude of mobility flows, workers do appear more ready to move from countries where unemployment is high to those where it is lower. Thirdly, the paper looks at mobility as a channel of economic adjustment by means of a VAR analysis in the vein of Blanchard and Katz (1992). Results indicate that mobility absorbs about a quarter of an asymmetric shock within 1 year. Movements in response to shocks have almost doubled since the introduction of the euro. Real wages have also become more responsive to asymmetric shocks during the same period. Classification-JEL: J61, J64 Keywords: Labour mobility; geographic mobility; migration; gravity; adjustment; asymmetric shocks; optimal currency areas; European Union Length: 71 Creation-Date: 2016-06-10 Revision-Date: 2016-06-10 Number: 396 Handle: RePEc:csl:devewp:396 File-URL: https://www.dagliano.unimi.it/media/WP2016_396.pdf File-Format: application/pdf File-Size: 1123 Template-type: ReDIF-Paper 1.0 Author-Name: Arnab K. Basu Author-Workplace-Name: Cornell University Author-Name: Nancy H. Chau Author-Workplace-Name: Cornell University and Centro Studi Luca d’Agliano Author-Name: Gary S. Fields Author-Workplace-Name: Cornell University Author-Name: Ravi Kanbur Author-Workplace-Name: Cornell University Title: Job Creation in a Multi-Sector Labor Market Model for Developing Economies Abstract: This paper proposes an overlapping generations multi‐sector model of the labor market for developing countries with three heterogeneities – heterogeneity within self‐employment, heterogeneity in ability, and heterogeneity in age. We revisit an iconic paradox in a class of multi‐sector labor market models in which the creation of high‐ age employment exacerbates unemployment. Our richer setting allows for generational differences in the motivations for job search to be reflected in two distinct inverted U‐shaped relationships between unemployment and high‐wage employment, one for Youth and a different one for adults. In turn, the relationship between overall unemployment and high‐wage employment is shown to be non‐monotonic and multi‐peaked.  The model also sheds light on the implications of increasing high‐wage employment on self‐employed workers, who make up most of the world’s poor. Non‐monotonicity in unemployment notwithstanding, increasing high‐wage employment has an unambiguous positive impact on high‐paying self‐employment, and an unambiguous negative impact on free‐entry (low‐wage) self‐employment. Classification-JEL: O17, I32 Keywords: Multisector Labor Market, Overlapping Generations, Poverty Reduction, Harris‐Todaro Model Length: 54 Creation-Date: 2016-06-01 Revision-Date: 2016-06-01 Number: 395 Handle: RePEc:csl:devewp:395 File-URL: https://www.dagliano.unimi.it/media/WP2016_395.pdf File-Format: application/pdf File-Size: 991 Template-type: ReDIF-Paper 1.0 Author-Name: Subhayu Bandyopadhyay Author-Workplace-Name: Federal Reserve Bank of St. Louis Author-Name: Arnab K. Basu Author-Workplace-Name: Cornell University Author-Name: Nancy H. Chau Author-Workplace-Name: Cornell University and Centro Studi Luca d’Agliano Author-Name: Devashish Mitra Author-Workplace-Name: Syracuse University Title: Disentangling the Wage Impacts of Offshoring On a Developing Country: Theory and Policy Abstract: The various channels through which a reduction in the cost of offshoring can improve wages in a developed country are by now well understood. But does a similar reduction in the offshoring cost also benefit workers in the world's factories in developing countries? Using a parsimonious two-country model of offshoring we find very nuanced results. These include cases where wages monotonically improve or worsen as well as those where wages exhibit an inverted U-shaped relationship in response to parametric reductions in the cost of offshoring. We identify qualitative conditions under which wages and welfare increase or decrease in the developing world as a result of a reduction in offshoring costs. Since global welfare always rises with an improvement in offshoring technology, we find that there is a role for a wage tax or a minimum wage in the developing country. We derive the optimal levels of such policies. Classification-JEL: F11, F13, F16, F66, O19, O24 Keywords: Wages, International Offshoring, Wage Tax, Minimum Wage Length: 29 Creation-Date: 2016-06-01 Revision-Date: 2016-06-01 Number: 394 Handle: RePEc:csl:devewp:394 File-URL: https://www.dagliano.unimi.it/media/WP2016_394.pdf File-Format: application/pdf File-Size: 550 Template-type: ReDIF-Paper 1.0 Author-Name: Giulia Bettin Author-Workplace-Name: Università Politecnica delle Marche Author-Name: Alberto Zazzaro Author-Workplace-Name: Università Politecnica delle Marche and Università di Napoli Federico II Title: The Impact of Natural Disasters on Remittances to Low- and Middle-income Countries Abstract: In this paper, we offer novel empirical evidence on the impact of natural disasters on remittance flows towards low- and middle-income countries. We consider a panel of 98 countries over the period 1990-2010. Our findings show that remittances increase after a disaster, thus contributing ex post to the reconstruction process. At the same time, we find that remittances play a key role in terms of ex ante risk preparedness for those countries that experienced more disruptive events in the past. Finally, when taking into account the interaction with the level of development of the local financial sector, remittances seem to substitute for less efficient financial systems both in terms of ex post response to disasters and in terms of ex ante risk management strategy. Classification-JEL: F24, F22, Q54 Keywords: migrants' remittances, international migration, natural disasters Length: 29 Creation-Date: 2016-05-30 Revision-Date: 2016-05-30 Number: 393 Handle: RePEc:csl:devewp:393 File-URL: https://www.dagliano.unimi.it/media/WP2016_393.pdf File-Format: application/pdf File-Size: 515 Template-type: ReDIF-Paper 1.0 Author-Name: Natalie Chen Author-Workplace-Name: University of Warwick, CAGE, CESifo and CEPR Author-Name: Luciana Juvenal Author-Workplace-Name: International Monetary Fund Title: Quality and the Great Trade Collapse Abstract: We explore the heterogeneous effects of the global financial crisis on international trade flows differentiated by quality. Combining a dataset of Argentinean firm-level destination-specific wine exports with experts quality ratings, we show that higher quality exports collapsed more dramatically during the recession. This flight from quality was triggered by a fall in aggregate demand, and was stronger for smaller firms’ exports and in the countries where households could substitute imports by domestic alternatives. Quantitatively, our results suggest that the quality composition of exports can explain up to nine percentage points difference in trade performance. Classification-JEL: F10, F14, F41 Keywords: Exports, financial crisis, heterogeneity, multi-product firms, quality, wine. Length: 44 Creation-Date: 2016-05-09 Revision-Date: 2016-05-09 Number: 392 Handle: RePEc:csl:devewp:392 File-URL: https://www.dagliano.unimi.it/media/WP2016_392.pdf File-Format: application/pdf File-Size: 743 Template-type: ReDIF-Paper 1.0 Author-Name: Massimiliano Bratti Author-Email: massimiliano.bratti@unimi.it Author-Workplace-Name: Università degli Studi di Milano, IZA and Centro Studi Luca d’Agliano Author-Name: Tommaso Frattini Author-Email: tommaso.frattini@unimi.it Author-Homepage: https://sites.unimi.it/tommasofrattini/ Author-Workplace-Name: Università degli Studi di Milano, CReAM, IZA, Centro Studi Luca d’Agliano and Dondena Author-Name: Francesco Scervini Author-Workplace-Name: HDCP, Istituto Universitario di Studi Superiori di Pavia Title: Grandparental Availability for Child Care and Maternal Employment: Pension Reform Evidence from Italy Abstract: In this paper, we exploit pension reform-induced changes in retirement eligibility requirements to assess the role of grandparental child care availability in the employment of women who have children under 15. We focus on Italy for two reasons: first, it has low rates of female employment and little formal child care provision, and second, it has undergone several pension reforms in a relatively short time span. Our analysis shows that, among the women studied, those whose own mothers are retirement eligible have a 13 percent higher probability of being employed than those whose mothers are ineligible. The pension eligibility of maternal grandfathers and paternal grandparents, however, has no significant effect on the women’s employment probability. We also demonstrate that the eligibility of maternal grandmothers mainly captures the effect of their availability for child care. Hence, pension reforms, by potentially robbing households of an important source of flexible, low-cost child care, could have unintended negative consequences for the employment rates of women with children. Classification-JEL: J13; J22 Keywords: Grandparental child care, maternal employment, pension reform, retirement. Length: 43 Creation-Date: 2016-05-07 Revision-Date: 2016-05-07 Number: 391 Handle: RePEc:csl:devewp:391 File-URL: https://www.dagliano.unimi.it/media/WP2016_391.pdf File-Format: application/pdf File-Size: 1036 Template-type: ReDIF-Paper 1.0 Author-Name: Massimiliano Bratti Author-Email: massimiliano.bratti@unimib.it Author-Workplace-Name: Università degli Studi di Milano, IZA and Centro Studi Luca d’Agliano Author-Name: Simona Fiore Author-Workplace-Name: Università degli Studi di Bologna Author-Name: Mariapia Mendola Author-Email: mariapia.mendola@unimib.it Author-Homepage: https://sites.google.com/site/mariapiamendola/ Author-Workplace-Name: Università degli Studi di Milano - Bicocca, IZA and Centro Studi Luca d’Agliano Title: Family Size, Sibling Rivalry and Migration: Evidence from Mexico Abstract: This paper examines the effects of family size and demographic structure on offspring’s international migration. We use rich survey data from Mexico to estimate the impact of sibship size, birth order and sibling composition on teenagers’ and Young adults’ migration outcomes. We find little evidence that high fertility drives migration. The positive correlation between sibship size and migration disappears when endogeneity of family size is addressed using biological fertility miscarriages) and infertility shocks. Yet, the chances to migrate are not equally distributed across children within the family. Older siblings, especially firstborn males, are more likely to migrate, while having more sisters than brothers may increase the chances of migration, particularly among girls. Classification-JEL: J13; F22; O15 Keywords: International Migration, Mexico, Family Size, Birth Order, Sibling Composition Length: 46 Creation-Date: 2016-04-13 Revision-Date: 2016-06-21 Number: 390 Handle: RePEc:csl:devewp:390 File-URL: https://www.dagliano.unimi.it/media/WP2016_390.pdf File-Format: application/pdf File-Size: 582 Template-type: ReDIF-Paper 1.0 Author-Name: Gil S. Epstein Author-Workplace-Name: Bar-Ilan University, IZA, CReAM and Centro Studi Luca d'Agliano Author-Name: Odelia Heizler (Cohen) Author-Workplace-Name: Tel-Aviv_Yaffo Academic College Title: Networks in the Diaspora Abstract: In this paper, we examine possible types of network formation among immigrants in the diaspora and between those immigrants and the locals in different countries. We present the model by considering different possible interactions between immigrants and the new society in their host country. Spread of migrants from the same origin in the diaspora may well increase international trade between the different countries, depending on the types of networks formed. We present possible applications of network structure on the country of origin, such as on international trade. We find that when the size of the diaspora is sufficiently large, the natives in the different countries will be willing to bear the linking cost with the immigrants because the possible benefits increase with increasing size of the diaspora. Classification-JEL: D85, D74, J61, L14 Keywords: Immigrants, Networks, Diaspora Length: 29 Creation-Date: 2016-05-09 Number: 389 Handle: RePEc:csl:devewp:389 File-URL: https://www.dagliano.unimi.it/media/WP2016_389.pdf File-Format: application/pdf File-Size: 872 Template-type: ReDIF-Paper 1.0 Author-Name: Massimiliano Bratti Author-Email: massimiliano.bratti@unimi.it Author-Workplace-Name: University of Milan, IZA and Centro Studi Luca d'Agliano Author-Name: Mariapia Mendola Author-Email: mariapia.mendola@unimib.it Author-Homepage: https://sites.google.com/site/mariapiamendola/ Author-Workplace-Name: University of Milan Bicocca, IZA and Centro Studi Luca d'Agliano Author-Name: Alfonso Miranda Author-Email: alfonso.miranda@cide.edu Author-Workplace-Name: Centro de Investigaci�n y Docencia Econ�micas (CIDE) and IZA Title: Hard to Forget: the Long-Lasting Impact of War on Mental Health Abstract: In this paper we examine the impact of war trauma experienced during the 1992-1995 Bosnia and Herzegovina conflict on individual mental health and labor market outcomes. By using a medically-validated depression scale and an instrumental-variable approach we show that, six years after the conflict, traumatized individuals are more likely to be at risk of depression(by 60 percentage points) and have worse labor-market outcomes. Our results are robust to a number of sensitivity checks accounting for individual geographical mobility and different treatment intensities, and suggest that the negative effects of war trauma are not mainly mediated by physical health problems. Classification-JEL: I1; O1 Keywords: war trauma, mental health, depression, Bosnia and Herzegovina Length: 42 Creation-Date: 2015-11-10 Number: 388 Handle: RePEc:csl:devewp:388 File-URL: https://www.dagliano.unimi.it/media/WP2015_388.pdf File-Format: application/pdf File-Size: 537 Template-type: ReDIF-Paper 1.0 Author-Name: Maia Guell Author-Email: maia.guell@gmail.com Author-Workplace-Name: University of Edinburgh, CEPR, FEDEA and IZA Author-Name: Michele Pellizzari Author-Email: michele.pellizzari@unige.ch Author-Workplace-Name: University of Geneva, CEPR, fRDB and IZA Author-Name: Giovanni Pica Author-Email: giovanni.pica@unimi.it Author-Workplace-Name: Università degli Studi di Milano, LdA, CSEF, Baffi and fRDB Author-Name: José V. Rodriguez Mora Author-Email: sevimora@gmail.com Author-Workplace-Name: University of Edinburgh and CEPR Title: Correlating Social Mobility and Economic Outcomes Abstract: We apply a novel measure of intergenerational mobility (IM) developed by Guell, Rodriguez Mora, and Telmer (2014) to a rich combination of Italian data allowing us to produce comparable measures of IM of income for 103 Italian provinces. We then exploit the large heterogeneity across Italian provinces in terms of economic and social outcomes to explore how IM correlates with a variety of outcomes. We find that (i) higher IM is positively associated with a variety of "good" economic outcomes, such as higher value added per capita, higher employment, lower unemployment, higher schooling and higher openness and (ii) that also within Italy the "the Great Gatsby Curve" exists: in provinces in which mobility is lower cross-sectional income inequality is larger. We finally explore the correlation between IM and several socio-political outcomes, such as crime and life expectancy, but we do not find any clear systematic relationship on this respect. Classification-JEL: C31, E24, R10 Keywords: Surnames, intergenerational mobility, cross-sectional data analysis. Length: 45 Creation-Date: 2015-04-14 Number: 387 Handle: RePEc:csl:devewp:387 File-URL: https://www.dagliano.unimi.it/media/WP2015_387.pdf File-Format: application/pdf Template-type: ReDIF-Paper 1.0 Author-Name: Isabella Cingolani Author-Email: isabella.cingolani@polimi.it Author-Workplace-Name: Dipartimento di Ingegneria Gestionale, Politecnico di Milano Author-Name: Giulia Felice Author-Email: gfelice@eco.uc3m.es Author-Workplace-Name: Universidad Carlos III de Madrid and Centro Studi Luca d'Agliano Author-Name: Lucia Tajoli Author-Email: lucia.tajoli@polimi.it Author-Workplace-Name: Dipartimento di Ingegneria Gestionale, Politecnico di Milano Title: External Imbalances in the European Union and International Fragmentation of Production: Is There a Link? Abstract: In this paper we assess whether the expansion of international fragmentation of production (IFP) and the creation of production link- ages among European countries contribute to the trade imbalances registered within the European Union (EU) area in the past decade. Exporting intermediate and semi-finished goods and re-importing finished and assembled goods can give rise to a trade deficit, but such international reorganization of production allows countries to improve their efficiency and competitiveness (both in terms of cost reduction and higher quality of goods) and to gain access to new export markets. The net effect on the trade balances is therefore ambiguous. We test empirically the sign of this effect, using the recently released WIOD database on international production linkages. We find that the current account in EU countries worsens the higher the offshoring to low-income partners. By contrast, the current account improves by offshoring to high-income partners. This asymmetry suggests that when countries offshore to high-income partners the gains in competitiveness overcome the potentially negative effect of importing intermediate inputs. Classification-JEL: F14, F15, F62. Keywords: Trade balances, offshoring, European Union Length: 38 Creation-Date: 2015-04-14 Number: 386 Handle: RePEc:csl:devewp:386 File-URL: https://www.dagliano.unimi.it/media/WP2014_386.pdf File-Format: application/pdf