Institute of Economics

WAGE DETERMINATION: THE CHANGING ROLE OF INSTITUTIONS IN ADVANCED INDUSTRIALIZED COUNTRIES Get access DAVID SOSKICE DAVID SOSKICE Wissenschaftszentrum, BerlinInstitute of Economics and Statistics, University of Oxford1 Search for other works by this author on: Oxford Academic Google Scholar Oxford Review of Economic Policy, Volume 6, Issue 4, WINTER 1990, Pages 36–61, https://doi.org/10.1093/oxrep/6.4.36 Published: 01 December 1990

5, 132 readers of the German weekly, "Die Zeit", participated in a three-person bargaining experiment. In our data analysis we focus on (1) the influence of age, gender, profession and medium chosen for participation and (2) the external validity of student behaviour (inside and outside the lab). We find that older participants and women care more about equal distributions and that Internet users are more self-regarding than those using mail or fax. Decisions made by students in the lab are rather similar to those made by participants in the newspaper experiment, indicating a high degree of external validity of student data. Copyright 2007 The Author(s). Journal compilation Royal Economic Society 2007.

Following a centuries-long decline in the rate of self-employment, a discontinuity in this downward trend is observed for many advanced economies starting in the 1970s and 1980s. In some countries, the rate of self-employment appears to increase. At the same time, cross-sectional analysis shows a U-shaped relationship between start-up rates of enterprise and levels of economic development. We provide an overview of the empirical evidence concerning the relationship between independent entrepreneurship, also known as self-employment or business ownership, and economic development. We argue that the reemergence of independent entrepreneurship is based on at least two ‘revolutions’. If we distinguish between solo self-employed at the lower end of the entrepreneurship spectrum, and ambitious and/or innovative entrepreneurs at the upper end, many advanced economies show a revival at both extremes. Policymakers in advanced economies should be aware of both revolutions and tailor their policies accordingly.

Summary Sun‐induced fluorescence ( SIF ) in the far‐red region provides a new noninvasive measurement approach that has the potential to quantify dynamic changes in light‐use efficiency and gross primary production ( GPP ). However, the mechanistic link between GPP and SIF is not completely understood. We analyzed the structural and functional factors controlling the emission of SIF at 760 nm (F 760 ) in a Mediterranean grassland manipulated with nutrient addition of nitrogen (N), phosphorous (P) or nitrogen–phosphorous ( NP ). Using the soil–canopy observation of photosynthesis and energy (SCOPE) model, we investigated how nutrient‐induced changes in canopy structure (i.e. changes in plant forms abundance that influence leaf inclination distribution function, LIDF ) and functional traits (e.g. N content in dry mass of leaves, N%, Chlorophyll a+b concentration ( C ab) and maximum carboxylation capacity ( V cmax )) affected the observed linear relationship between F 760 and GPP . We conclude that the addition of nutrients imposed a change in the abundance of different plant forms and biochemistry of the canopy that controls F 760 . Changes in canopy structure mainly control the GPP –F 760 relationship, with a secondary effect of C ab and V cmax . In order to exploit F 760 data to model GPP at the global/regional scale, canopy structural variability, biodiversity and functional traits are important factors that have to be considered.

Martin Conyon, Paul Gregg, Stephen Machin; Taking Care of Business: Executive Compensation in the United Kingdom, The Economic Journal, Volume 105, Issue 4

We use a representative and cross-country comparable sample of manufacturing firms (EFIGE) to document patterns of interaction among firm-level internationalization, innovation and productivity across seven European countries (Austria, France, Germany, Hungary, Italy, Spain, United Kingdom). We find strong evidence of positive association among the three firm-level characteristics across countries and sectors. We also find that the positive correlation between internationalization and innovation survives after controlling for productivity, with some evidence of causality running from the latter to the former. Our analysis suggests that export promotion per se is unlikely to lead to sustainable internationalization because internationalization goes beyond export and because, in the medium to long term, internationalization is likely driven by innovation. We recommend coordination and integration of internationalization and innovation policies ‘under one roof’ at both the national and EU levels, and propose a bigger coordinating role for EU institutions. — Carlo Altomonte, Tommaso Aquilante, Gábor Békés and Gianmarco I.P. Ottaviano

abstract Empirical studies based on individual data have found an inverse U‐shaped relationship between age and the decision to start a business. Other studies have shown that becoming an entrepreneur is a regional event, with potential entrepreneurs benefiting from their local networks. This article links both strands of literature by introducing age‐specific peer effects. Using changes in the age distribution of the population of western German regions over time, we found—in accordance with microlevel analyses—an inverse U‐shaped relationship between the regional age structure and start‐up activity in a region. Moreover, our findings suggest that the age‐specific likelihood of becoming an entrepreneur changes with the size of the age cohort, pointing to the existence of age‐specific peer effects.

Research analyzing the importance of human capital for innovation usually focuses on secondary and tertiary education. This paper takes a different perspective by focusing on in‐firm training. We argue that continuous training guarantees access to leading‐edge knowledge and thus increases a firm’s propensity to innovate. Using German establishment‐level data, we show a strong association between lagged continuous training and innovation. Applying instrumental variable methods, we cautiously argue that the association between training and innovation is indeed a causal effect. In the quest for a relevant and valid instrument, we exploit legal regulations of the German Works Constitution Act.

BACKGROUND AND PURPOSE: Although Parkinson's disease (PD) is characterized by typical motor manifestations, non-motor symptoms (NMS) are an outstanding part of the disease. At present, several specific instruments for assessment of NMS are available. The objective of our study was to determine the performance of the Movement Disorder Society-Unified Parkinson's Disease Rating Scale (MDS-UPDRS): Part I - Non-Motor Aspects of Experiences of Daily Living (nM-EDL) compared with the Non-Motor Symptoms Scale (NMSS). METHODS: To this purpose, 434 consecutive patients with PD were included in an international, observational, cross-sectional study. The association between scores of both scales was determined by the Spearman rank correlation coefficient. Equations for transformation of total score of a scale to the other were constructed from weighted regression models and both, transformed and observed score, contrasted by means of the Lin's Concordance Correlation Coefficient (LCCC) and Bland-Altman plot. RESULTS: As a whole, the prevalence of the NMS according to each scale was quite similar, and most of the correlations between their corresponding components were high (r(S) > 0.60). The total score correlation of the MDS-UPDRS Part I with the NMSS was high (r(S) = 0.81). Concerning the transformed scores, estimated scores only partially approach the observed ones (sharing about 60-64% of the variance) because residual variance increased with increasing magnitudes of the scores, i.e. the most severe patients (Bland-Altman plot; LCCC < 0.60 for severe patients). CONCLUSIONS: (i) MDS-UPDRS Part I (nM-EDL) and NMSS showed a strong convergent validity; (ii) however, transformed scores using the equations from weighted regression models showed that for patients with the most severe NMS they are not concordant.

The economic theory of “Dutch disease” is extended and applied to the 1976–79 coffee boom in Kenya in this article. When a commodity boom is perceived as temporary, a large fraction will tend to be saved out of transient income. The spending effect of the boom is supplemented by relative price changes resulting from capital stock increases. In the presence of foreign exchange and import controls, the benefits of a sudden export price increase may be transferred intersectorally. Using a general equilibrium model, it is estimated that in Kenya the benefits of the boom were largely transferred from coffee growers to urban groups.

This note extends the analysis of Armstrong, Doyle and Vickers [1996] to the case of retail price deregulation. It is shown (i) that the optimal access price may be above, below, or (in the linear case) equal to marginal cost, (ii) that optimal regulation of the margin between the retail price and the access price entails the ECPR, and (iii) that welfare and entrant profit are higher when the level of the access price, rather than the margin, is regulated.

Abstract We perform an experimental investigation using a dictator game in which individuals must make a moral decision — to give or not to give an amount of money to poor people in the Third World. A questionnaire in which the subjects are asked about the reasons for their decision shows that, at least in this case, moral motivations carry a heavy weight in the decision: the majority of dictators give the money for reasons of a consequentialist nature. Based on the results presented here and of other analogous experiments, we conclude that dicator behavior can be understood in terms of moral distance rather than social distance and that it systematically deviates from the egoism assumption in economic models and game theory.

Improving national competitiveness is fundamental to raising long-term economic growth rates and enhancing living standards. The determinants of competitiveness change along with macroeconomic factors, business environment and consumer demand. These changes are visible in the growing importance of digitalization of enterprises of all sectors that has become a critical factor for competitiveness in recent years and will likely become even more essential. The main determinants of competitiveness performance in the European Union (EU) were analyzed in the proposed research. The study included a holistic approach to competitiveness and economic growth and aimed to reveal the factors that determine and contribute to the growth of European economies, as well as to identify clusters of the EU countries. The criteria of competitiveness that are significant for estimation of competitiveness factors and their relationship with economic growth were revealed by using factor analysis. The results indicate that the most significant factors are F1 Macroeconomic Stability, F2 Research and Development (R&amp;D) and Digitalization, F3 Foreign Direct Investment and F4 Trade Openness. By applying cluster analysis, the EU countries were grouped into five clusters on the basis of the contribution of competitiveness factors to economic growth.

This analysis differs from previous studies of labor demand in its explicit inclusion of the costs to the firm of adju sting its workforce. These costs include institutional factors such a s employment protection legislation and unions, and market factors su ch as the degree of slack in the labor market. Two questions are addr essed: what is the quantitative impact of these forces and does their inclusion improve the fit of a labor-demand function. The results sh owed these factors to have a strong influence on the rate of hiring/f iring and to improve significantly on conventional labor-demand funct ions. Copyright 1988 by Royal Economic Society.

The present paper aims to provide a critical review with respect to the literature on Local Agro-Food Systems (LAFS) in America and Europe over the last two decades, devoted to investigating the geographies of the relationships between territory and identity-based food products. In studies on LAFS, the concept of origin of food products is based upon a historical and bio-cultural analysis of food identity. Debates on territorial anchorage focus on the causal factors —natural, cultural and socio-economic— that a distinctive territory imprints on the specific attributes of identity-based foods. Moreover, the notion of geographical and organisational proximity aligns with a socio-cultural and economic approach to collective action aiming at rural development. A LAFS implies a certain spatial density and a network of mutually cooperating farms, firms and institutions, specialised in producing and marketing an identity-based food product, what can in turn be used to valorise the food identity both on the markets and also by contributing to the creation of common and public goods. A transdisciplinary view is required both for comprehending the emergence and evolution over centuries of the identity-based foods and also for understanding the role they play in constructing more sustainable rural development in the future.

The current period describes the impact of the global COVID-19 pandemic and the ensuing economic crisis on businesses and the lives of citizens. It has accelerated digital transformation in all areas. The work and learning of many individuals have moved to the digital environment. In order to use digital technologies, employees need to acquire new knowledge and skills. The aim of this research study is to perform an analysis of the development of digital transformation and relevant competencies for employees and to identify the opportunities and challenges in Latvia. The research methodology applied for this research study is based on examining relevant theoretical concepts and publications of the EU regarding digital transformation. A survey method was used to find out the opinions of Latvian employers regarding the importance of digital transformation and relevant competencies for employees. The analysis of the research indicated that the majority of the respondents surveyed rated the level of implementation of digital transformation as high or medium-high, which shows that this is a good trend, and the digitalization process continues to progress. However, about a third of enterprises are only at the early stage of digitalization, while some have not yet begun it. The problem is the development of human capital competencies and digital skills. This is a specific research study that expands and provides insights into the situation in Latvia on the possibilities of implementation of digital transformation, which is closely linked with the development of human capital competencies and digital skills. This requires maintaining a holistic approach to targeted digital transformation management.

Alphabetical name ordering on multi‐authored academic papers, which is the convention in economics and various other disciplines, is to the advantage of people whose last name initials are placed early in the alphabet. Professor A, who has been a first author more often than Professor Z, will have published more articles and experienced a faster productivity rate over the course of her career as a result of reputation and visibility. Authors know that name ordering matters and take ordering seriously. Several characteristics of an author‐group composition determine the decision to deviate from the default alphabetical name order to a significant extent.

Van der Zwan P., Verheul I., Thurik R. and Grilo I. Entrepreneurial progress: climbing the entrepreneurial ladder in Europe and the United States, Regional Studies. This study investigates which countries have the highest potential to achieve entrepreneurial progress. This progress is defined as an entrepreneurial ladder with five successive steps: ‘never thought about starting a business’, ‘thinking about it’, ‘taking steps’, ‘running a young business’ and ‘running a mature business’. The influences of individual-level and country-level variables on the progression through these stages are analysed. Data from twenty-seven European countries and the United States are used (2007 Flash Eurobarometer Survey on Entrepreneurship). Findings show that in the United States many people think about setting up a business, whereas Europeans are better at achieving higher levels of engagement. Country differences can be explained mainly by levels of risk tolerance and economic development. A country's level of administrative complexity does not play a role, but individual perceptions of this complexity are a hindering factor. Van der Zwan P., Verheul I., Thurik R. and Grilo I. 公司发展：欧洲与美国的公司阶梯，区域研究。本研究旨在考察哪个国家在实现创业发展中拥有最大的潜力。这一进展被定义为五个阶段：“从未考虑过创业”、“开始思考”，“迈出步伐”，“经营一个年轻的公司”，“经营一个成熟的企业”。个体层面及国家层面通过上述步骤对公司进展产生的影响进行了考察。数据来自美国与欧洲 27 个国家（2007 年对于公司看法的欧洲民意调查）。结果表明，大多数美国人在考虑开创新公司，而欧洲人更多地考虑的是如何实现更高目标上的参与。风险承受力与经济发展能够对上述国家差异进行解释。一个国家层面的管理复杂性并未发挥作用，但是个体对于上述复杂性的认知却构成了阻碍要素。 公司 决定因素 公司民意调查 公司发展 管理复杂性 Van der Zwan P., Verheul I., Thurik R. et Grilo I. Le progrès entrepreneurial: monter l'échelle entrepreneuriale en Europe et aux Etats-Unis, Regional Studies. Cette étude examine les pays qui font preuve du potentiel le plus élevé pour réaliser le progrès entrepreneurial. On définit ce progrès comme une échelle entrepreneuriale à cinq barreaux: ‘Je n'ai jamais pensé à créer une entreprise’; ‘j'y pense’; ‘je prends des mesures’; ‘je gère une jeune entreprise’, ‘je gère une entreprise à l’étape de la maturité'. On analyse l'influence des variables relatives à l'individu et au pays sur le progrès à chaque étape. On emploie des données auprès de vingt-sept pays européens et des Etats-Unis (provenant du sondage Baromètre Flash 2007 sur l'esprit d'entreprise). Les résultats laissent voir que beaucoup de gens aux Etats-Unis pensent à créer une entreprise, alors que les Européens réussissent mieux à s'y engager. Les différences s'expliquent dans une large mesure par les niveaux de tolérance au risque et par les niveaux de développement économique. La complexité administrative d'un pays ne joue aucun rôle, mais les idées que l'on se fait de cette complexité sont une entrave. Esprit d'entreprise Facteurs déterminants Esprit d'entreprise naissant Progrès entrepreneurial Complexités administratives Van der Zwan P., Verheul I., Thurik R. und Grilo I. Unternehmerischer Fortschritt: Aufstieg auf der unternehmerischen Leiter in Europa und den USA, Regional Studies. In dieser Studie wird untersucht, welche Länder das höchste Potenzial zur Erreichung von unternehmerischem Fortschritt aufweisen. Dieser Fortschritt wird als unternehmerische Leiter mit fünf aufeinanderfolgenden Sprossen definiert: ‘noch nie an Unternehmensgründung gedacht’, ‘denke daran’, ‘unternehme Schritte’, ‘leite ein neues Unternehmen’ und ‘leite ein etabliertes Unternehmen’. Wir analysieren den Einfluss der Variablen auf individueller und Landesebene auf die Progression durch diese Phasen. Zum Einsatz kommen Daten aus 27 europäischen Ländern sowie aus den USA (Flash-Eurobarometer-Umfrage von 2007 über Unternehmertum). Aus den Ergebnissen geht hervor, dass viele Menschen in den USA an eine Unternehmensgründung denken, während die Europäer bei der Erzielung eines höheren Engagementniveaus erfolgreicher sind. Die Unterschiede zwischen den einzelnen Ländern lassen sich vor allem durch das Niveau der Risikotoleranz und Wirtschaftsentwicklung erklären. Das Niveau der administrativen Komplexität in einem Land spielt keine Rolle, wohl aber sind die Auffassungen der einzelnen Personen hinsichtlich dieser Komplexität ein behindernder Faktor. Unternehmertum Determinanten Neuunternehmertum Unternehmerischer Fortschritt Administrative Komplexität Van der Zwan P., Verheul I., Thurik R. y Grilo I. Progreso empresarial: trepando la escalera empresarial en Europa y los Estados Unidos, Regional Studies. En este estudio investigamos qué países tienen el máximo potencial de conseguir el progreso empresarial. Este progreso es definido como una escalera empresarial con cinco peldaños sucesivos: ‘nunca pensé en abrir un negocio’, ‘lo estoy pensando’, ‘estoy preparando el terreno’, ‘gestiono un negocio nuevo’, y ‘gestiono un negocio establecido’. Analizamos la influencia de las variables a nivel individual y por países en la progresión a través de estas fases. Utilizamos los datos de veintisiete países europeos y de los Estados Unidos (Encuesta Flash del Eurobarómetro sobre el Espíritu Empresarial 2007). Los resultados indican que en los Estados Unidos muchas personas piensan en comenzar un negocio, mientras que los europeos son mejores a la hora de conseguir niveles más altos de participación. Las diferencias por países pueden explicarse principalmente por los niveles de tolerancia de riesgo y el desarrollo económico. La complejidad administrativa de los países no desempeña un papel importante pero las percepciones individuales de esta complejidad representan un factor obstaculizador. Empresariado Determinantes Nuevos empresarios Progreso empresarial Complejidades administrativas

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The removal of high levels of protection combined with substantial real devaluations have changed the environment in which Ghanaian manufacturing firms have operated in the 1990s. The changes in output, composition and productivity, which have occurred over this period, are examined in this article. Survey evidence for the growth of the sector is shown to be consistent with data from sales tax returns. Analysis of the panel survey shows that, in a comparative context, the rate of job creation in Ghana's manufacturing sector is high. This rate is highest in medium‐sized firms; small firms have not grown more rapidly than larger firms. There has been no underlying growth in technical efficiency and output growth has been matched by a commensurate growth in labour and capital inputs. Labour productivity differs substantially by firm size due primarily to differences in physical, not human, capital endowments.