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  1. High skilled migration and the exertion of effort by the local population
    Autor*in: Epstein, Gil S.; Kunze, Astrid; Ward-Warmedinger, Melanie
    Erschienen: 2002
    Verlag:  IZA, Bonn

    The design of optimal immigration policy, particularly in the face of the spiralling demand for highly skilled workers, such as IT workers and engineers, is a topical issue in the policy debate as well as the economic literature. In this paper, we... mehr

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    The design of optimal immigration policy, particularly in the face of the spiralling demand for highly skilled workers, such as IT workers and engineers, is a topical issue in the policy debate as well as the economic literature. In this paper, we present empirical evidence from firm level data collected in 2000 on the demand in Europe for highly skilled workers in general and abroad and their determinants. Major findings are that the fraction of highly skilled recruited from the international labour market is very small, and it seems that foreign and domestic workers are very similar in terms of formal education, that is subject of specialisation, and job characteristics. We suggest an efficiency wage model that can explain why firms recruit foreign workers in small numbers and are willing to pay migrants the same wage as local workers and at the same time are willing to pay for moving costs, for example, that are specific to immigrating workers. -- migration ; labour demand ; firm data ; highly skilled workers ; globalization

     
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    Weitere Identifier:
    hdl: 10419/21388
    Schriftenreihe: Discussion paper series / Forschungsinstitut zur Zukunft der Arbeit ; 540
    Umfang: Online Ressource, 593 KB, text
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  2. Effort and performance in public-policy contests
    Autor*in: Epstein, Gil S.; Nitsan, Shemuʾel
    Erschienen: 2002
    Verlag:  CESifo, München

    Government intervention often gives rise to contests in which the possible ‘prizes’ are determined by the existing status-quo and some new public- policy proposal . In this paper we study the general class of such two-player public-policy contests... mehr

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    Government intervention often gives rise to contests in which the possible ‘prizes’ are determined by the existing status-quo and some new public- policy proposal . In this paper we study the general class of such two-player public-policy contests and examine the effect of a change in the proposed policy, a change that may affect the payoffs of the two contestants, on their effort and performance. We extend the existing comparative statics studies that focus on the effect of changes either in the value of the prize in symmetric contests or in one of the contestants’ valuation of the prize in asymmetric contests. Our results hinge on the relationship between the strategic own-stake (“income”) effect and the strategic rival’s-stake (“substitution”) effect. This relationship is determined by three types of ability and stakes asymmetry between the contestants. In particular, we specify the asymmetry condition under which a more restrained government intervention that reduces the contestants’ prizes has the perverse effect of increasing their aggregate lobbying efforts.

     
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    hdl: 10419/75980
    Schriftenreihe: Array ; 634
    Umfang: Online-Ressource (23 S.)
  3. Political culture and monopoly price determination
    Autor*in: Epstein, Gil S.; Nitsan, Shemuʾel
    Erschienen: 2002
    Verlag:  CESifo, München

    In this paper we study the endogenous determination of monopoly price. Our proposed game of endogenous monopoly-price setting extends the literature on monopoly-price, monopoly rent-seeking contests and monopoly rent-seeking rent-avoidance contests... mehr

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    In this paper we study the endogenous determination of monopoly price. Our proposed game of endogenous monopoly-price setting extends the literature on monopoly-price, monopoly rent-seeking contests and monopoly rent-seeking rent-avoidance contests by (i) determining the monopoly price such that it maximizes a composite utility function that depends on two components: expected social welfare and lobbying efforts. The welfare component has a positive or no effect on the utility while the lobbying efforts have a positive, negative or no effect on the utility (ii) introducing the political culture of the government and clarifying its role in the endogenous determination of monopoly price. In the proposed model the single parameter representing political culture is the weight assigned to the enhancement of social welfare. Our main concern is with the study of the relationship between this parameter and the proposed monopoly price and, in turn, the rent-seeking rent-avoidance efforts of the potential monopoly and the consumers and their aggregate expected benefit.

     
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    hdl: 10419/75946
    Schriftenreihe: Array ; 646
    Umfang: Online-Ressource (24 S.), graph. Darst.
  4. Perceived income, promotion and incentive effects
    Autor*in: Epstein, Gil S.; Ward-Warmedinger, Melanie
    Erschienen: 2002
    Verlag:  Institute for the Study of Labor (IZA), Bonn

    This paper examines the disincentive effects of perceived underpayment on individuals' exerted effort and promotion. To this end we develop a theoretical framework and obtain empirical evidence by analysing British academia data. We find that,... mehr

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    This paper examines the disincentive effects of perceived underpayment on individuals' exerted effort and promotion. To this end we develop a theoretical framework and obtain empirical evidence by analysing British academia data. We find that, tenured academics will tend to invest less effort in publishing as the difference between their perceived deserved income and actual income increases. On the other hand, for non-tenured academics this relationship is ambiguous. Our model predicts that if, however, tenured staff also derive utility directly from publication, over and above that associated with income and promotion, the difference between perceived and actual income has a smaller negative effect on the actual effort invested in research.

     
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    hdl: 10419/21521
    Schriftenreihe: IZA Discussion paper series ; 435
    Schlagworte: Lohn; Arbeitsproduktivität; Akademiker; Erwartungsnutzen; Experiment; Großbritannien
    Umfang: Online-Ressource (20 S.)
  5. Informational cascades and decision to migrate
    Autor*in: Epstein, Gil S.
    Erschienen: 2002
    Verlag:  Institute for the Study of Labor (IZA), Bonn

    We introduce the idea that informational cascades can explain the observed regularity that emigrants from the same locations also tend to choose the same foreign locations. Thus informational cascades generate herd behavior. Herd behavior is compared... mehr

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    We introduce the idea that informational cascades can explain the observed regularity that emigrants from the same locations also tend to choose the same foreign locations. Thus informational cascades generate herd behavior. Herd behavior is compared with the network externalities explanation of the same phenomenon. The relation between social tensions and herd behavior is observed when local populations are xenophobic.

     
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    hdl: 10419/21511
    Schriftenreihe: IZA Discussion paper series ; 445
    Schlagworte: Wohnstandort; Informationsverhalten; Theorie; Migranten; Herdenverhalten; Soziales Netzwerk
    Umfang: Online-Ressource ([2], 21 S.)
  6. Government and cities
    contests and the decentralization of decision making
    Autor*in: Epstein, Gil S.; Gang, Ira N.
    Erschienen: August 2002
    Verlag:  IZA, Bonn

    Governments do not have perfect information regarding the priorities and the needs of different groups in the economy. This lack of knowledge opens the door for different groups to lobby the government in order to receive the government's support. We... mehr

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    Governments do not have perfect information regarding the priorities and the needs of different groups in the economy. This lack of knowledge opens the door for different groups to lobby the government in order to receive the government's support. We set up a model of hierarchical contests and compare the implications of a centralized allocation process with a decentralized allocation process. We show the potential existence of a poverty trap as a result of fiscal federalism.

     
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    hdl: 10419/21381
    Schriftenreihe: Discussion paper series / Institute for the Study of Labor ; IZA DP no. 547
    Schlagworte: Finanzbeziehungen; Rent-Seeking; Neue politische Ökonomie; Finanzausgleich; USA
    Umfang: 1 Online-Ressource (28 Seiten), Illustrationen
  7. Enclaves, language and the location choice of migrants
    Autor*in: Bauer, Thomas K.; Epstein, Gil S.; Gang, Ira N.
    Erschienen: August 2002
    Verlag:  IZA, Bonn

    Empirical studies in the migration literature have shown that migration enclaves (networks) negatively affect the language proficiency of migrants. These studies, however, ignore the choice of location as a function of language skills. Using data on... mehr

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    Empirical studies in the migration literature have shown that migration enclaves (networks) negatively affect the language proficiency of migrants. These studies, however, ignore the choice of location as a function of language skills. Using data on Mexican migration to the US, we show that migrants choose smaller networks as their English language proficiency improves.

     
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    hdl: 10419/21370
    Schriftenreihe: Discussion paper series / Institute for the Study of Labor ; IZA DP no. 558
    Schlagworte: Sprache; Englisch (Sprache); Ethnische Gruppe; Mexikaner; Netzwerk; Wohnstandort; USA; Migranten
    Umfang: 1 Online-Ressource (12 Seiten)
  8. Networks and the duration of temporary migration
    Autor*in: Gang, Ira N.; Bauer, Thomas
    Erschienen: July 15, 2002
    Verlag:  Rutgers University, Department of Economics, New Brunswick, NJ

    This paper analyzes the determinants and timing of return migration. Special attention is paid to the role of social and informational migration networks. A simple theoretical model of temporary migration demonstrates that the effect of migration... mehr

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    This paper analyzes the determinants and timing of return migration. Special attention is paid to the role of social and informational migration networks. A simple theoretical model of temporary migration demonstrates that the effect of migration networks on optimal migration duration is ambiguous. We investigate the determinants of migration duration using a semiparametric proportional hazard model for discrete duration data. Our data consists of a sample of return migrants from six villages in Egypt. Controlling for human capital and demographic characteristics of the migrants and economic indicators of the host country, the estimation results show that social and informational networks have a statistically significant negative effect on migration duration.

     
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    hdl: 10419/94262
    Schriftenreihe: Departmental working papers / Rutgers University, Department of Economics ; 98, 11
    Umfang: 1 Online-Ressource (circa 20 Seiten), Illustrationen
  9. Immigrants and unemployment in the European Community
    from the eyes of natives
    Autor*in: Gang, Ira N.; Rivera-Batiz, Francisco L.; Yun, Myeong-Su
    Erschienen: May 31, 2002
    Verlag:  Rutgers University, Department of Economics, New Brunswick, NJ

    This paper examines whether immigrants increase the likelihood of unemployment among native-born workers in the European Union. Earlier papers measure the presence of immigrants in the local labor market by computing the share of the foreigners in... mehr

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    This paper examines whether immigrants increase the likelihood of unemployment among native-born workers in the European Union. Earlier papers measure the presence of immigrants in the local labor market by computing the share of the foreigners in specific regions. This paper, instead, utilizes a unique feature of the 1988 Eurobarometer, which asks the native-born workers' assessment of the number of immigrants in the local market. By doing so, the association between unemployment of native-born workers in the European Union and presence of immigrants in the local labor market is evaluated fromthe native-bornworkers' own perspective. The empirical results indicate that there is little, if any, association between the presence of immigrants and unemployment among native-born workers.

     
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    hdl: 10419/94339
    Schriftenreihe: Departmental working papers / Rutgers University, Department of Economics ; 96, 11
    Schlagworte: Einwanderung; Arbeitsmigranten; Arbeitslosigkeit; Arbeitsmarkt; Humankapital; Schätzung; EU-Staaten; Frankreich; Deutschland; Italien; Niederlande; Großbritannien
    Umfang: 1 Online-Ressource (circa 20 Seiten)
  10. Immigrants and unemployment in the European Community
    from the eyes of natives
    Autor*in: Gang, Ira N.; Rivera-Batiz, Francisco L.; Yun, Myeong-Su
    Erschienen: 2002
    Verlag:  Institute for the Study of Labor (IZA), Bonn

    This paper examines whether immigrants increase the likelihood of unemployment among native-born workers in the European Union. Earlier papers measure the presence of immigrants in the local labor market by computing the share of the foreigners in... mehr

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    This paper examines whether immigrants increase the likelihood of unemployment among native-born workers in the European Union. Earlier papers measure the presence of immigrants in the local labor market by computing the share of the foreigners in specific regions. This paper, instead, utilizes a unique feature of the 1988 Eurobarometer, which asks the native-born workers' assessment of the number of immigrants in the local market. By doing so, the association between unemployment of native-born workers in the European Union and presence of immigrants in the local labor market is evaluated from the native-born workers' own perspective. The empirical results indicate that there is little, if any, association between the presence of immigrants and unemployment among native-born workers.

     
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    hdl: 10419/20905
    RVK Klassifikation: QV 000
    Auflage/Ausgabe: November 1999 (revised: May 2002)
    Schriftenreihe: IZA Discussion paper series ; 70, rev.
    Schlagworte: Einwanderung; Arbeitsmigranten; Arbeitslosigkeit; Arbeitsmarkt; Humankapital; Schätzung; EU-Staaten; Frankreich; Deutschland; Italien; Niederlande; Großbritannien
    Umfang: Online-Ressource ([3], 15 S.)
  11. Politics of randomness
    Autor*in: Epstein, Gil S.; Nitsan, Shemuʾel
    Erschienen: October 2002
    Verlag:  CESifo, Center for Economic Studies & Ifo Institute, Munich

    The main drawback of the public-policy contest is that the notion of contest success function, a crucial component of the contest model, does not have micro-foundations and, therefore, the random behavior of the government seems ad-hoc. In the... mehr

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    The main drawback of the public-policy contest is that the notion of contest success function, a crucial component of the contest model, does not have micro-foundations and, therefore, the random behavior of the government seems ad-hoc. In the present paper we propose a partial micro-foundation for the public-policy contest. The possible rationalization of random government behavior is illustrated in the case of the all-pay auction and Tullock's lottery logit functions. We also clarify how stake asymmetry, lobbying-skill asymmetry and return to lobbying effort determine the relative desirability, from the government's point of view, of these CSFs

     
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    hdl: 10419/76315
    Schriftenreihe: Array ; no. 803
    Umfang: 1 Online-Ressource (circa 22 Seiten)
  12. Self-employment and wage earning
    Hungary during transition
    Autor*in: Co, Catherine Yap; Gang, Ira N.; Yun, Myeong-Su
    Erschienen: September 2002
    Verlag:  IZA, Bonn

    We examine the earnings determinants of the self-employed and wage earners in Hungary in the mid-1990's, taking into account two forms of selection: selection into working or nonworking for every individual in our sample and selection into... mehr

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    We examine the earnings determinants of the self-employed and wage earners in Hungary in the mid-1990's, taking into account two forms of selection: selection into working or nonworking for every individual in our sample and selection into self-employment or wageearning jobs for workers only. Previous studies use switching regression to examine the returns to individual characteristics taking into account only selection into self-employment or wage-earning jobs. We find that the estimated returns to individual characteristics when accounting for both forms of selection differ from estimates correcting for only selection into self-employment or wage-earning jobs. We also find that the earnings determinants of the two sectors are not significantly different from one another.

     
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    hdl: 10419/21356
    Schriftenreihe: Discussion paper series / Institute for the Study of Labor ; IZA DP no. 572
    Schlagworte: Selbstständige; Einkommen; Lohn; Systemtransformation; Schätzung; Ungarn; Selbstselektion
    Umfang: 1 Online-Ressource (27 Seiten)
  13. Economic strain, ethnic concentration and attitudes towards foreigners in the European Union
    Autor*in: Gang, Ira N.; Rivera-Batiz, Francisco L.; Yun, Myeong-Su
    Erschienen: September 2002
    Verlag:  IZA, Bonn

    This paper provides a statistical analysis of the determinants of attitudes towards foreigners displayed by Europeans sampled in Eurobarometer surveys in 1988 and 1997. Europeans who compete with immigrants in the labor market have more negative... mehr

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    This paper provides a statistical analysis of the determinants of attitudes towards foreigners displayed by Europeans sampled in Eurobarometer surveys in 1988 and 1997. Europeans who compete with immigrants in the labor market have more negative attitudes towards foreigners. In addition, an increased concentration of immigrants in local neighborhoods increases the likelihood of negative attitudes. Racial prejudice exerts a strong influence on anti-foreigner sentiment. The generally rising trend towards greater racial prejudice, and the decline in the strength of educational attainment in reducing negative attitudes towards foreigners, contribute to the increasing anti-foreigner attitudes between 1988 and 1997.

     
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    hdl: 10419/21350
    Schriftenreihe: Discussion paper series / Institute for the Study of Labor ; IZA DP no. 578
    Schlagworte: Ethnische Diskriminierung; Beruflicher Status; Arbeitsmarkt; EU-Staaten; Migranten
    Umfang: 1 Online-Ressource (39 Seiten)
  14. Decomposing male inequality change in East Germany during transition
    Autor*in: Gang, Ira N.; Yun, Myeong-Su
    Erschienen: September 2002
    Verlag:  IZA, Bonn

    This paper studies the cause of the changes in male wage inequality in East Germany during its transition from a socialist to a market-oriented economic system. We are interested in how much of the change in the dispersion of wages can be explained... mehr

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    This paper studies the cause of the changes in male wage inequality in East Germany during its transition from a socialist to a market-oriented economic system. We are interested in how much of the change in the dispersion of wages can be explained by the changes in the characteristics of workers and how much can be explained by the changes in returns to the characteristics of workers.

     
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    hdl: 10419/21349
    Schriftenreihe: Discussion paper series / Institute for the Study of Labor ; IZA DP no. 579
    Schlagworte: Lohnstruktur; Männer; Wirtschaftliche Anpassung; Schätzung; Ostdeutschland
    Umfang: 1 Online-Ressource (14 Seiten), Illustrationen
  15. Gender differences in German upward income mobility
    Autor*in: Gang, Ira N.; Landon-Lane, John S.; Yun, Myeong-Su
    Erschienen: September 2002
    Verlag:  IZA, Bonn

    We examine the upward labor income mobility of men and women in Germany using the GSOEP Cross National Equivalent File. Women have greater overall income mobility. However, utilizing a measure of upward income mobility and calculating the posterior... mehr

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    We examine the upward labor income mobility of men and women in Germany using the GSOEP Cross National Equivalent File. Women have greater overall income mobility. However, utilizing a measure of upward income mobility and calculating the posterior probability that men's upward income mobility is greater than women's, we find that men have overall greater upward income mobility. Women have greater upward mobility in the lower initial income classes, in the upper initial income brackets men's mobility is higher than women's.

     
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    hdl: 10419/21348
    Schriftenreihe: Discussion paper series / Institute for the Study of Labor ; IZA DP no. 580
    Schlagworte: Lohnstruktur; Fraueneinkommen; Soziale Mobilität; Geschlecht; Schätzung; Deutschland
    Umfang: 1 Online-Ressource (14 Seiten)
  16. Caste, ethnicity and poverty in rural India
    Autor*in: Gang, Ira N.; Sen, Kunal; Yun, Myeong-Su
    Erschienen: November 2002
    Verlag:  IZA, Bonn

    This paper analyzes the determinants of rural poverty in India, contrasting the situation of the Scheduled Caste (SC) and Schedule Tribe (ST) households with the non-scheduled population. The incidence of poverty among SC and ST households is... mehr

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    This paper analyzes the determinants of rural poverty in India, contrasting the situation of the Scheduled Caste (SC) and Schedule Tribe (ST) households with the non-scheduled population. The incidence of poverty among SC and ST households is significantly higher than non-scheduled households. Using a probit decomposition analysis, we decompose the difference in the poverty rates between the scheduled castes (or tribes) and non-scheduled households into a part explained by the differences in characteristics and a part explained by the differences in probit coefficients. The paper finds that for SC households, differences in characteristics explain the gap in poverty rates more than differences in coefficients; while for ST households, it is the reverse. Differences in educational attainment explain about one quarter of the poverty gap for both social groups. Occupational structure strongly matters in determining the poverty gap for both SC and ST, as does differences in returns to individual occupations. While poverty rates are not very different between SC and ST households, the analysis suggests that the underlying factors for the higher incidence of poverty in these social groups are to a large extent different.

     
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    hdl: 10419/21039
    Schriftenreihe: Discussion paper series / Institute for the Study of Labor ; IZA DP no. 629
    Schlagworte: Ländliche Armut; Armut; Soziale Schicht; Ethnische Gruppe; Schätzung; Indien
    Umfang: 1 Online-Ressource (29 Seiten)