{"title":"A macro-level analysis of language learning and migration","authors":"Silke Uebelmesser, Annika Sommerfeld, Severin Weingarten","doi":"10.1515/ger-2020-0067","DOIUrl":"https://doi.org/10.1515/ger-2020-0067","url":null,"abstract":"Abstract This article investigates the macro-level drivers of adult-age language learning with a focus on migration based on a new dataset on German language learning in 77 countries (including Germany) for 1992–2006. Fixed-effects regressions show that language learning abroad is strongly associated with immigration from countries of the European Union and the Schengen Area whose citizens enjoy free access to Germany, while language learning in Germany is strongly associated with immigration from countries with restricted access. The different degrees of uncertainty about access to Germany seem to be of importance for preparatory language learning. To shed light on country heterogeneities, we substitute the location fixed effects with a vector of country characteristics, which include several distance measures among others, and we estimate a random-effects model. Last, we provide some tentative arguments in favour of a causal interpretation. The main results related to the role of uncertainty are mostly unaffected. The Skilled Immigration Act from 2020 removes part of this uncertainty with potential positive effects on preparatory language learning and economic and social integration.","PeriodicalId":46476,"journal":{"name":"German Economic Review","volume":"46 1","pages":"181 - 232"},"PeriodicalIF":1.1,"publicationDate":"2021-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90411555","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Skill complementarity in production technology: New empirical evidence and implications","authors":"Andrey Stoyanov, N. Zubanov","doi":"10.1515/ger-2020-0102","DOIUrl":"https://doi.org/10.1515/ger-2020-0102","url":null,"abstract":"Abstract Danish manufacturing firm data reveal that 1) industries differ in within-firm worker skill (= wage) dispersion, and 2) within-firm skill dispersion positively correlates with firm productivity in industries with higher average skill dispersion. We argue that these patterns reflect technological differences between industries: firms in the “skill complementarity” industries profit from hiring similarly able workers, while the “skill substitutability” firms thrive on skill differences. Our study produces a robust, data-driven and theoretically validated classification of industries into the complementarity and substitutability groups, unveils hitherto unnoticed technological heterogeneity between industries within the same economy, and illustrates its importance through simulations.","PeriodicalId":46476,"journal":{"name":"German Economic Review","volume":"52 1","pages":"233 - 274"},"PeriodicalIF":1.1,"publicationDate":"2021-10-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81208933","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"“Thanks in advance” – The negative effect of a polite phrase on compliance with a request","authors":"Lisa V. Bruttel, Juri Nithammer, Florian Stolley","doi":"10.1515/ger-2021-0020","DOIUrl":"https://doi.org/10.1515/ger-2021-0020","url":null,"abstract":"Abstract This paper studies the effect of the commonly used phrase “thanks in advance” on compliance with a small request. In a controlled laboratory experiment we ask participants to give a detailed answer to an open question. The treatment variable is whether or not they see the phrase “thanks in advance.” Our participants react to the treatment by exerting less effort in answering the request even though they perceive the phrase as polite.","PeriodicalId":46476,"journal":{"name":"German Economic Review","volume":"88 1","pages":"61 - 78"},"PeriodicalIF":1.1,"publicationDate":"2021-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79443842","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Do balanced-budget fiscal stimuli of investment increase its economic value?","authors":"C. Dosi, M. Moretto, R. Tamborini","doi":"10.1515/ger-2020-0059","DOIUrl":"https://doi.org/10.1515/ger-2020-0059","url":null,"abstract":"Abstract We examine the timing of a business investment providing valuable external benefits to society. A surge in uncertainty about private returns, a typical feature if not a cause of recessions, delays capital outlays to an extent that may be detrimental to social welfare. Is there an efficiency-improving public policy directed at accelerating investment? By real option analysis, we try answering this question by comparing three fiscal policies: (i) a simple subsidy on investment, (ii) a balanced-budget fiscal stimulus where the subsidy is subsequently covered by profit taxation, and (iii) by taxing external benefits as well. We show that, under a balanced-budget stimulus, investment acceleration may come at the expense of a net economic loss, and the higher is uncertainty on private returns, the higher the likehood of a negative outcome. However, this risk strongly declines when government spending is balanced by taxing both private and public returns on investment.","PeriodicalId":46476,"journal":{"name":"German Economic Review","volume":"34 1","pages":"157 - 179"},"PeriodicalIF":1.1,"publicationDate":"2021-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90112241","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A direct measure of subjective business uncertainty","authors":"C. Glocker, Werner Hölzl","doi":"10.1515/ger-2021-0025","DOIUrl":"https://doi.org/10.1515/ger-2021-0025","url":null,"abstract":"Abstract We present an uncertainty measure that is based on a business survey in which uncertainty is captured directly by a qualitative question on subjective uncertainty regarding expectations. Uncertainty perceptions display persistence at the firm level and changes are associated with past business assessments and expectations. While our uncertainty measure correlates with commonly used alternatives, it is superior in forecasting and suggests a larger role of uncertainty shocks for aggregate fluctuations. Its informational content is highest when considering smaller firms or firms with a low growth rate. Our results confirm the feasibility of constructing uncertainty measures from business survey questions that elicit information on uncertainty of respondents directly.","PeriodicalId":46476,"journal":{"name":"German Economic Review","volume":"51 1","pages":"121 - 155"},"PeriodicalIF":1.1,"publicationDate":"2021-07-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86829037","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Après-ski: The spread of coronavirus from Ischgl through Germany","authors":"Gabriel Felbermayr, Julian Hinz, Sonali Chowdhry","doi":"10.1515/ger-2020-0063","DOIUrl":"https://doi.org/10.1515/ger-2020-0063","url":null,"abstract":"Abstract The Austrian ski resort of Ischgl is commonly claimed to be ground zero for the diffusion of the SARS-CoV-2 virus in the first wave of infections experienced by Germany. Drawing on data for 401 German counties, we find that conditional on geographical latitude and testing behavior by health authorities, road distance to Ischgl is indeed an important predictor of infection cases, but – in line with expectations – not of fatality rates. Were all German counties located as far from Ischgl as the most distant county of Vorpommern-Rügen, Germany would have seen about 45 % fewer COVID-19 cases. A simple diffusion model predicts that the absolute value of the distance-to-Ischgl elasticity should fall over time when inter- and intra-county mobility are unrestricted. We test this hypothesis and conclude that the German lockdown measures have halted the spread of the virus.","PeriodicalId":46476,"journal":{"name":"German Economic Review","volume":"92 1","pages":"415 - 446"},"PeriodicalIF":1.1,"publicationDate":"2021-06-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85845588","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Nudging openly – An experimental analysis of nudge transparency in a public goods setting","authors":"Erika Große Hokamp, Joachim Weimann","doi":"10.1515/ger-2019-076","DOIUrl":"https://doi.org/10.1515/ger-2019-076","url":null,"abstract":"Abstract Around the world, policy makers and public authorities are increasingly turning to behaviorally informed interventions (“nudges”) in order to help tackle important contexts of public policy. Despite their impressive merit record, these policy tools have been heavily criticized as being obscure and manipulative, thus facing challenges for their legitimate assertion in the regulatory toolkit. In this study, we seek to assess whether transparency over the use of such interventions may constitute a viable way of addressing these ethical concerns, and focus particularly on the potentially moderating role of something we call “status quo experience”, i. e. subjects’ understanding of the behavioral consequences of different choice architectures. We conduct a laboratory experiment, whereby subjects play three rounds of a public good game, the first of which defaults them towards a fully non-cooperative contribution, while the rest default them towards a fully cooperative one. Subjects in our treatment groups further receive an “informational shock” at varying points in time, disclosing how and why a fully cooperative default contribution is being used. We find that providing subjects with informational disclosure about the nudge intervention did not result in significantly different aggregate behavioral measurements between control and treatment groups. This seems to be independent of status quo experience and of the timing of transparency provision. We nonetheless find some indication that the latter could help sustain cooperation over time.","PeriodicalId":46476,"journal":{"name":"German Economic Review","volume":"42 1","pages":"1 - 19"},"PeriodicalIF":1.1,"publicationDate":"2021-05-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91376717","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The effects of financing rules in pay-as-you-go pension systems on the life and the business cycle","authors":"Christian Scharrer","doi":"10.1515/ger-2020-0037","DOIUrl":"https://doi.org/10.1515/ger-2020-0037","url":null,"abstract":"Abstract Empirically, revenues of public pension systems are more volatile than expenditures. Therefore, the question arises how the social security authority should buffer its revenues and adjust its contributions over the business cycle. This paper studies the corresponding effects on the life cycle of households and the business cycle in a large-scale overlapping generations model. In particular, the labor supply is endogenous and takes the intertemporal links between contributions and pension benefits into account. Sluggish adjustments of contribution rates that are implemented by adjusting a financial buffer stock both stabilize an economy and decrease the volatility of lifetime utilities of most workers and retirees, in contrast to sole adjustments of contribution rates. However, changes of consumption, capital income, or lump sum taxes, which aim to balance public pension budgets, improve the allocation of aggregate risk across cohorts for people up to an age of at least 71 years.","PeriodicalId":46476,"journal":{"name":"German Economic Review","volume":"34 1","pages":"489 - 511"},"PeriodicalIF":1.1,"publicationDate":"2021-05-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81982336","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Financial literacy, institutions and education: Lessons from the German reunification","authors":"M. Davoli, J. Hou","doi":"10.1515/ger-2020-0027","DOIUrl":"https://doi.org/10.1515/ger-2020-0027","url":null,"abstract":"Abstract A growing body of literature highlights the importance of financial literacy in affecting household choices. However, much fewer studies focus on understanding the determinants of different levels of financial literacy. Our paper contributes to filling this gap by analyzing a specific determinant, i. e., the educational system, to explain the heterogeneity of financial literacy scores across Germany. The results suggest that the lower financial literacy observed in East Germany can be partially attributed to the different institutional framework experienced during the Cold War, more specifically, to the socialist educational system experienced in East Germany, which affected specific cohorts of individuals. By exploiting the unique set-up of the German reunification, we identify education as a channel through which institutions and financial literacy are related in the German context. In support of this hypothesis, we find that individuals exposed to the Eastern educational system exhibit 12 %12hspace{0.1667em}% to 21 %21hspace{0.1667em}% lower financial literacy scores compared with the households in the control group, not exposed to such system.","PeriodicalId":46476,"journal":{"name":"German Economic Review","volume":"16 1","pages":"447 - 488"},"PeriodicalIF":1.1,"publicationDate":"2021-05-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78322774","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}