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Capitalism. Democracy. Rule of Law

Abstract

This paper studies how an introduction of paid parental leave (PPL) affects maternal labor market outcomes in the short run. Using a reform in Australia, the PPL scheme, that gave the primary caregiver of a child born or adopted on or after January 1 2011, $672.70 a week for a maximum of 18 weeks, this paper develops theoretical predictions of the effect of PPL on maternal labor market outcomes, and tests these predictions using confidential data from the Australian Pregnancy and Employment Transitions Survey. The theoretical results imply that after the introduction of PPL, hours of work in the pre-birth period should decrease for mothers who will qualify for PPL, and increase for mothers who are attempting to qualify for PPL. Post birth, the theoretical results imply that more mothers are out of work and on leave than would have been in the absence of PPL. The empirical results suggest that the PPL scheme had no significant effect on labor market outcomes pre birth or post birth.

Abstract

This article sheds new light on the portability of human capital. We estimate the returns to source country experiences, viz., general, occupation-specific, and task-specific experiences, using data from the New Immigrant Survey (NIS), conducted in 2003. While the “returns to general experience” has been discussed in the literature, we are not aware of any previous attempt to estimate the returns to source country occupation-specific and task-specific experiences. Our estimates show that even though the returns to source country general experience is negligible, returns to source country occupation-specific experience is economically and statistically significant. We also find that returns to source country abstract (specifically analytical) task-specific experience is substantial and significant. Our results are robust to inclusion of source country wage, which may reflect unobservable characteristics that influence wages. We explore whether returns to work experience vary by income level in the source country or by an immigrant’s skill level.

Abstract

Small- and medium-sized enterprises (SMEs) are the backbone of the economy and their need to be financed remains one of the most discussed topics in the business world (; ). Financial leasing is a midterm financial instrument mainly used for the procurement of machinery, equipment, tools and/or property (). Although the financial leasing in Albania started in 2001, this form of business financing has experienced difficulties in spreading, getting recognised and being used by the public in Europe which is different from other countries. About 19 years after the creation of the first leasing companies, this financing option continues to be used at a low scale by businesses and individuals and it remains segmented into the market despite its large potential and the need for financing similar to SMEs. Why is financial leasing not yet used in Albania and which are some of the factors that would influence its use in the future? The purpose of this article is to identify the reasons of why the financial leasing market in Albania is in stagnation and understand some of the factors that influence the demand from a SME to be financed through lease. To achieve this and understand firms’ behaviour, questionnaire has been distributed to companies that have used lease to finance their asts and those that have never used it before. The model used to analyse the results of the questionnaires is the logistic regression. As we will see through the article, factors in need for financing by SMEs or the knowledge firms have about leasing have a direct impact on the possibility of firms to use lease.

Abstract

According to the Organisation for Economic Co-operation and Development (OECD), violence should be considered by examining both actual and perceived crime. However, the studies related to violence and internal migration under the Mexican drug war episode focus only on one aspect of violence (perception or actual), so their conclusions rely mostly on limited evidence. This article complements previous work by examining the effects of both perceived and actual violence on interstate migration through estimation of a gravity model along three 5-year periods spanning from 2000 to 2015. Using the methods of generalized maximum entropy (to account for endogeneity) and the Blinder–Oaxaca decomposition, the results show that actual violence (measured by homicide rates) does affect migration, but perceived violence explains a greater proportion of higher average migration after 2005. Since this proportion increased after 2010 and actual violence, the results suggest that there was some adaptation to the new levels of violence in the period 2010–2015.

Abstract

Whether and to what extent corruption drives emigration has received growing attention in the literature in recent years, yet the nature of the relationship remains unclear. To test causal claims, we rely on representative global survey data of more than 280,000 respondents across 67 countries from 2010 to 2014. We use two different measures of emigration intentions and individual, as well as country-level measures of corruption, and propose to instrument the endogenous presence of corruption in a country with the prevalence of cashless transactions in the economy to correct for potential estimation bias. We find robust support for the hypothesis that corruption increases emigration intentions across countries. The effect, however, is likely to be underestimated in conventional models that do not account for endogeneity. The results highlight the need to look beyond purely economic, social, security-related, and environmental drivers when assessing the root causes of migration.

Abstract

Looking at the decentralized provision of public education in a middle-income country, this paper estimates the impact of local autonomy on service quality, finding large heterogeneity in the effect across different levels of local development. In the year 2002, Colombian municipalities were entrusted with autonomous management of their local public education based solely on a population threshold. I estimate the impact that autonomy has had on education performance across the territory, using a municipality and time fixed-effects model. I find a quality gap arising between highly developed and low-developed autonomous municipalities, in a trend that reinforces over time: the reform has induced regional inequality in education quality. I am able to support the hypothesis that autonomous and nonautonomous municipalities were on similar performance trends before decentralization was implemented, even when looking within different local development ranges. Based on the analysis of detailed municipal balance sheet data and administration indicators, I argue that local administration capacity represents the most likely explanation of why the autonomy-related discrepancies have been arising.

Abstract

The present study contributes to the limited literature on labor mobility in India using the India Human Development Survey panel data for the years 2004–2005 and 2011–2012. We use three different tools, viz., transition matrices, multinomial logistic regression, and wage regressions for this study. The results show significant mobility across sectors in the economy. Mobility patterns among workers are found to differ significantly along the lines of gender, caste, education, wealth, and family background, among others. There is a distress-driven movement of workers. Significant earnings differentials exist across paid work statuses. The paper concludes with some policy suggestions.

Abstract

Labour market reforms have been undertaken to eliminate labour market rigidities in European countries since 1970s. The important features of the reforms are the reduction in adjustment costs and the introduction of fixed-term contracts (FTC). Some empirical studies point out that employment fluctuations have become more volatile after the reforms. This paper presents a model with FTC and analyzes the effects of the key features of the reforms. Numerical examples show that an expected productivity shock causes the oscillatory behaviour of employment. Moreover, a reduction in adjustment costs amplifies fluctuations. In the labour market literature, a number of studies point out the importance of trade unions in European countries. This paper also analyzes the effects of union influence, and the numerical examples indicate that the stronger union influence leads to larger employment fluctuations.