1,721,013 research outputs found
Gravity Models of Intra-EU Trade: Application of the CCEP-HT Estimation in Heterogeneous Panels with Unobserved Common Time-specific Factors
No full textWe follow recent developments of panel data studies and allow for the existence of both observed
and unobserved common factors where their individual responses are allowed to be heterogeneous. We
then develop a generalized Hausman–Taylor estimation methodology, and apply our proposed estimation
technique to an analysis of the gravity equation of bilateral trade flows among 15 European countries over
1960–2001. Empirical results demonstrate that our proposed approach provides more sensible results than
the conventional approach based on fixed time dummies. These findings may highlight the importance of
allowing for a certain degree of cross-section dependence through unobserved heterogeneous time-specific
effects; the resulting estimates would otherwise be severely biase
Monte Carlo Studies on Finite Sample Performance of the CCEP-HT Estimator in Panels with Heterogeneous Unobserved Common Factors
No full textReturn to Education and Income Inequality in Europe and the US
No full textIn this paper we study the relationship between wage inequality and education in 13 OECD countries over the
period 1985-2005 using the Luxembourgh Income Study (LIS) data. Our results show a great deal of heterogeneity
in the patterns of the rate-of-return estimates across countries. On the other hand, our results confi rm the fi nding
of a general increase in wage inequality. As for the correlation between wage premia and wage inequality, the
results show a positive but weak correlation between the estimates of the education return and the Gini index and
between the convexity of wage premia and wage inequality. The results show that the increase in wage inequality
in the countries considered can only partially be accounted for by observable characteristics such as education and
educational premia; i.e., it is largely residual in its nature
The returns to tertiary education in Italy and Europe
No full textIn this paper we use the EU-SILC data 2005 to estimate the private rates of return to higher education in 22 European countries. By implementing a Heckman selection model and an instrumental variables estimator we study the effects of schooling on employment and wages and compare them across European countries. Our results show a great deal of heterogeneity in the rate-of-return estimates across countries. Although a clear grouping of countries does not emerges, we observe that the returns to tertiary education appear generally high for Eastern countries and low for Nordic countries whereas the Mediterranean and Continental European countries mostly exhibit an intermediate position
"Returns to education and income inequality in Europe"
No full textIn this paper we study the relationship between wage inequality and education in 13 OECD countries over the period 1985-2005 using the Luxembourgh Income Study (LIS) data. Our results show a great deal of heterogeneity in the patterns of the rate-of-return estimates across countries. On the other hand, our results confirm the finding of a general increase in wage inequality. As for the correlation between wage premia and wage inequality, the results show a positive but weak correlation between the estimates of the education return and the Gini index and between the convexity of wage premia and wage inequality. The results show that the increase in wage inequality in the countries considered can only partially be accounted for by observable characteristics such as education and educational premia; i.e., it is largely residual in its nature
Upward and Downward Bias When Measuring Inequality of Opportunity
Full text linkEstimates of the level of inequality of opportunity have traditionally been interpreted as lower bounds due to the downward bias resulting from the partial observability of circumstances that affect individual outcome. We show that such estimates may also suffer from upward bias as a consequence of sampling variance. The magnitude of the latter distortion depends on both the empirical strategy used and the observed sample. We suggest that, although neglected in empirical contributions, the upward bias may be significant and challenge the interpretation of inequality of opportunity estimates as lower bounds. We propose a simple criterion to select the best specification that balances the two sources of bias. Our method is based on cross-validation and can easily be implemented with survey data.To show how this method can improve the reliability of inequality of opportunity measurement, we provide an empirical illustration based on income data from 31 European countries. Our evidence shows that estimates of inequality of opportunity are sensitive to model selection. Alternative specifications lead to significant differences in the absolute level of inequality of opportunity and to the re-ranking of a number of countries. This confirms the need for an objective criterion to select the best econometric model when measuring inequality of opportunity
MODELLING TECHNICAL EFFICIENCY IN CROSS SECTIONALLY DEPENDENT STOCHASTIC FRONTIER PANELS
No full textThis paper proposes a unified framework for accommodating both time and cross-sectional dependence in
modelling technical efficiency in stochastic frontier models by combining the exogenously driven factor-based
approach and an endogenous threshold efficiency regime selection mechanism. This approach is able to deal with
both weak and strong cross-sectional dependence in a flexible manner. Using a dataset of 26 OECD countries over
1970–2010, we provide satisfactory estimation results for the production technology parameters and the associated
efficiency ranking of individual countries. We find a positive spillover effect on efficiency, supporting the
hypothesis that knowledge spillover is more likely to be induced by technological proximity. Furthermore, our
approach enables us to identify efficiency clubs endogenously
Fair and unfair income inequality in Europe
No full textThis paper proposes an estimate of the extent of opportunity inequality and of its determinants in a sample of European countries. The present work aims to improve our understanding of the origin of standard income inequality, helping to identify the priorities of a redistributive policies and possible cases of inequality traps. Although the ranking among Northern European and Mediterranean countries is generally respected, our measures of equality of opportunity provide a different ranking with respect to the one offered by the measures of overall income inequality. Our figures also show that equality of opportunity might exhibit positive correlation with pre-primary education and de-tracked secondary school systems. Equality of opportunity is also positively associated to labour market regulation (with respect to gender differences only), to union density and to wage centralization whereas is positively related to fiscal redistribution
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