1,721,087 research outputs found
Long-run properties of some Danish macroeconometric models: an analytical approach
Full text linkThis paper provides an analytical treatment of various long-run aspects of the MONA model as well as the SMEC model of the Danish economy. More specifically, the analysis lays bare the long-run and steady-state nexus between unemployment and, respectively, inflation and the wage share implied by the wage and price dynamics of these modelsMONA; SMEC; Employment; Wage share; Inflation; Phillips curve; Error correction
How Many Danish Jobs Can (Potentially) Be Done Elsewhere?
Full text linkThis paper employs a new survey technique to arrive at estimates of the proportion of jobs with the characteristic that they can be performed elsewhere than currently, in particular in other countries. The results from the survey which was carried out in November 2008 indicate that the proportion of current jobs with offshorability characteristics in Denmark is in the 20 to 30 percent range. Danish jobs that could potentially be carried out elsewhere are primarily found in the services sector (financial and business services) and they are typically performed by employees from the middle of the wage distributionJobs; offshorability; outsourcing
Foreign Ownership Wage Premia in Emerging Economies: Evidence from Czech Republic
Full text linkIn this paper we examine the relationship between wages, labour productivity and ownership using a linked employer-employee dataset covering a large fraction of the Czech labour market in 2006. We distinguish between different origins of ownership and study wage and productivity differences. The raw wage differential between foreign and domestically owned firms is about 24 percent. The empirical analysis is carried out on both firm- and individual-level data. A key finding is that industry, region, and notably human capital explain only a small part of the foreign-domestic ownership wage differential. Both white and blue collar workers as well as skilled and unskilled employees obtain a foreign ownership wage premium. Foreign ownership premia are more prevalent in older and less technologically advanced firms. Joint estimation of productivity and wage equations show that, controlling for human capital, the difference in productivity is about twice as large as the wage differential. The results indicate that the international firms share their rents with their employeesForeign ownership; wages; productivity
Globalization, Superstars, and the Importance of Reputation: Theory & Evidence from the Wine Industry
Full text linkWe develop a simple model of the effects of reputation on wine prices. An increasing fraction of consumers who are “naïve” (less well informed about wine quality) results in a stronger sensitivity of wine prices to ratings of quality. We then use data on prices and Robert Parker’s ratings of wines, to show that prices have become more related to Parker ratings over time. In addition, we find that a change in Parker rating has a stronger effect on price, the stronger is the wine’s reputation.No; keywords
Economic Cooperation and Social Identity: Towards a Model of Economic Cross-Cultural Integration
Full text linkIn arguing that borders not only should be understood as economic barriers to trade, but also as cultural barriers to interaction, this paper attempts to operationalize a broader interpretation of borders with regards to economic cross-cultural integration. Thus, by formalizing the cultural effects of borders as mental distances (interpreted as social identities), and by using an agentbased simulation model, I analyze how the border affects, and is itself affected by, economic integration. The model is based on two regions separated by a border. Based on expected payoffs and mental distance, agents first choose whether to interact at home or to cross the border. Then, agents choose their action in a simple PD game based on a general disposition of trust, as well as the mental distance should the interaction partner be from across the border. The agent’s mental distance and trust level are then updated according to the agent’s experience of the interaction (positive or negative). The model generally reveals that underlying cultural processes may affect the success of economic integration considerably, and suggests that the success of the integration depends significantly (and in asymmetric ways) on mental distances between regions, on economically vs. culturally motivated behavior, and on collectivistic vs. individualistic characters of the regional cultures.Agent-Based Modeling; Cooperation; Culture; Social Identity; Economic Integration
Inequality of Opportunity and Income Inequality in Nine Chinese Provinces, 1989-2006
Full text linkWhile there is a large and growing body of research describing and analyzing changes in the Chinese income distribution, researchers have paid considerable less attention to inequality of opportunity. The aim of this paper is to contribute to filling this gap in the literature. The two main questions addressed empirically for the first time in a Chinese context are: To what extent are individuals’ incomes and individual income differences due to factors beyond the individual’s control (in Roemer’s terminology “circumstances”) and to what extent are they due to outcomes of the individual’s own choices (“effort”). What is the relationship between income inequality and inequality of opportunity? For this purpose we use data from the China Health and Nutrition Survey collected from nine provinces during the period 1989 to 2006. The CHNS has detailed information about incomes and other factors enabling us to construct a host of circumstance and effort variables for the offspring. We find that China has a substantial degree of inequality of opportunity. Parental income and parents’ type of employer explain about two thirds of the total inequality of opportunity. Notably, parental education plays only a minor role implying that parental connections remain important. The results show that the increase in income inequality during the period under study largely mirrors the increase in inequality of opportunity. Thus, increased income inequality does not reflect changes in effort variables, or expressed differently, increased income inequality has not been accompanied by a decrease in inequality of opportunityInequality of opportunity; Income inequality; China
Age Structure of the Workforce and Firm Performance.
Full text linkIn this contribution, we examine the interrelation between corporate age structures and firm performance. In particular, we address the issues, whether firms with young rather than older employees are successful and whether firms with homogeneous or heterogeneous workforces are doing well. Several theoretical approaches are discussed with respect to these questions and divergent hypotheses are derived. Using Danish linked employer-employee data, we find that both mean age and dispersion of age in firms are inversely u-shaped related to firm performance.Firm performance; Corporate age structures; Demographic change
Mergers of Equals & Unequals
Full text linkWe examine the organizational dynamics of integration post merger. Our basic question is whether there is evidence of conflict between employees from the two merging firms. Such conflict can arise for several reasons, including firm-specific human capital, corporate culture, power, or favoritism. We examine this issue using a sample of Danish mergers. The results are consistent with the basic hypothesis. Controlling for other effects, employees from the acquirer fare better than employees from the acquired firm, suggesting that they have greater power in the newly merged hierarchy. As a separate effect, the more that either firm dominates the other in terms of number of employees, the better do its employees fare compared to employees from the other firm. This suggests that majority / minority status is also important to assimilation of workers, much as in ethnic conflicts. Finally, greater overlap of operations decreases turnover. This finding is inconsistent with the view that workers of the two firms may be better substitutes for each other. However, the result and our other findings are consistent with the view that more similar workers (in terms of either firm- or industry-specific human capital) are easier to integrate post mergerMergers; internal organization; conflicts; personnel economics
Small Open Economy Firms in International Trade: Evidence from Danish Transactions-Level Data
Full text linkIn this paper, we use a rich dataset disaggregating imports and exports decisions by product and origin/destination of all Danish companies for the period 1993-2003 to provide key elements in characterizing Danish firms in international trade. Most evidence to date emanates from the U.S. or developing economies like Columbia or Mexico. Benchmarking on these studies, we find some similarities but also differences which we think are representative of European-type, small open economies. We find that Danish exporters make up a fairly small fraction of the total of firms, but that this fraction is higher than in e.g., the U.S. Firms engaged in exporting have the same positive performance characteristics – size, capital and skilled labour intensity, labour as well as total factor productivity, and wages – found in also in previous studies. But most exporter premia are significantly larger in Denmark than in the U.S. There are few traces of the European Union’s Single Market Program and the adoption the Euro in 1998. We observe no impact of these changes on the number of exporters, but some signs of impacts on the number of products and export destination countries. Finally, we find that trade is positively related to productivity of firms. The association between productivity and the firm’s imports of intermediate goods is particularly strong.Exporters; exporter premium; firm heterogeneity
My Pay is Too Bad (I Quit). Your Pay is Too Good (You're Fired)
Full text linkThis paper is about how surpluses of labour contracts are shared by the employee and her firm. For this purpose, I look at the relationship between individual wages and employeremployee separation patterns. The paper suggests a model which estimates (otherwise unobserved) alternative wage and individual productivity measures from matched employer-employee data. These estimates can be used to address rent sharing hypotheses. Results of an application of the model to a large Danish register data set suggest that firms appropriate large shares of the returns to tenure. There is no evidence of gender discrimination with respect to rent sharing, and no evidence of rent sharing coefficients being different across regions which are distinguished by their labour market thickness.employer-employee separations; rent sharing
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