Working papers results

The general decline in alcohol and tobacco consumption among teenagers in recent years has been interpreted as a success of the European governments campaigns to increase adolescents’ awareness about the risk associated to drug use. At the same time, polydrug users – those who make use of more than one substance – are becoming a prevalent group among adolescent substance users. This evidence raises the question of whether the traditional approach to study risk perception related to substance use could be improved. Research in this field always deals with substance-specific risk perception indicators, while it lacks of a composite and synthetic measure of risk perception related to the overall attitudes towards substances use. This study explores whether there is a unique overall perception of risk associated with different legal and illegal substances use. Specifically, by making use of ESPAD data, we explore whether it is possible to derive an overall measure of attitude toward drugs consumption, by combining a set of indicators of risk perception regarding different types of substances (i.e. alcohol, tobacco, cannabis and other illegal drugs) and different frequencies of use (i.e. sporadic versus regular). Factor analysis results provide evidence of the existence of three indexes of perceived risk associated, respectively, to the use of legal drugs, the sporadic use of illegal drugs and the regular use of illegal drugs.

We study the educational choices of children of immigrants in a tracked school system. We first show that immigrant boys in Italy enroll disproportionately into vocational high schools, as opposed to technical and academically-oriented high schools, compared to natives of similar ability. Immigrant girls, instead, choose similar schools as native ones. We then estimate the impact of a large-scale, randomized intervention providing tutoring and career counseling to high-ability immigrant students. Male treated students increase their probability of enrolling into the high track to the same level of natives, also closing the gap in terms of grade retention. There are no significant effects on immigrant females, who exhibit similar choices and performance as native ones in absence of the intervention. Increases in academic motivation and the resulting changes in teachers’ recommendation regarding high school choice explain a sizable portion of the effect, while the effect of increases in cognitive skills is negligible. Finally, we find positive spillovers on immigrant classmates of treated students, while there is no effect on native classmates.

This paper provides an overview of economic inequality in Germany from the fourteenth to the nineteenth centuries. It represents the first attempt at reconstructing long-term trends in wealth inequality in a central European area. It builds upon the data produced by the German Historical School, which from the late nineteenth century pioneered inequality studies, but also adds new archival information for selected communities and areas. Overall during the early modern period inequality was found to be increasing, as seems to have been the case in most of the European continent, but with an important local specificity: the terribly destructive Thirty Years’ War (1618-48), together with the plague epidemic of 1627-29, are found to have caused a temporary but significant phase of reduction in inequality. This is in stark contrast to other European areas for which information is available, from Italy to the Low Countries, where during 1500-1800 inequality growth was monotonic. Some evidence of a drop in inequality is also found after the Black Death of 1348-49, but in at least part of Germany inequality growth seems to have resumed immediately after that plague. Our findings contribute to deepen and to nuance our knowledge of long-term inequality trends in preindustrial Europe, and offer new material to current debates on the determinants of inequality change in western societies, past and present.

This paper investigates the effect of using mobile money technology on children’s school participation in low-income societies. We argue that, by reducing transaction costs, and by making it easier and less expensive to receive remittances, mobile money technology reduces the need for coping strategies that are detrimental to child development, such as withdrawing children from school and sending them to work. We test this hypothesis using a set of comparative samples from seven low-income countries. We find that mobile money technology increases the chances of children attending school. This finding is robust to the use of estimation techniques that deal with possible endogeneity issues. We also show that the effect of mobile money is mainly driven by African countries and that, at least for girls, it is significantly higher when the household is living below the poverty line.

There is a growing concern that the widespread use of computers, mobile phones and other digital devices before bedtime disrupts our sleep with detrimental effects on our health and cognitive performance. High-speed Internet promotes the use of electronic devices, video games and Internet addiction (e.g., online games and cyberloafing). Exposure to artificial light from tablets and PCs can alterate individuals’ sleep patterns. However, there is little empirical evidence on the causal relationship between technology use near bedtime and sleep. This paper studies the causal effects of access to high-speed Internet on sleep. We first show that playing video games, using PC or smartphones, watching TV or movies are correlated with shorter sleep duration. Second, we exploit historical differences in pre-existing telephone infrastructure that affected the deployment of high-speed Internet across Germany (see Falck et al., 2014) to identify a source of plausibly exogenous variation in access to Broadband. Using this instrumental variable strategy, we find that DSL access reduces sleep duration and sleep satisfaction.

This paper integrates efficiency wage setting in the theory of optimal redistributive income taxation. In doing so, we use a model with two skill-types, where efficiency wage setting characterizes the labor market faced by the low-skilled, whereas the high-skilled face a conventional, competitive labor market. There are two types of jobs in this economy; a low-demanding job which can be carried out by everybody, and a high-demanding job which can only be carried out by the high-skilled, meaning that a potential mimicker may either adopt a conventional income-replication strategy or a job-replication strategy. In this framework, we show that the marginal income tax implemented for the high-skilled is negative under plausible assumptions. The marginal income tax facing the low-skilled can be either positive or negative in general, even if employment-related motives for policy intervention typically contribute to an increase in this marginal tax. An increase in the unemployment benefit contributes to relax the binding self-selection constraint (irrespective of the strategy adopted by a potential mimicker), which makes this instrument particularly useful from the perspective of redistribution.

In this paper, we show that unemployment increases child neglect in the United States during the period from 2004 to 2012. A one percentage point increase in the unemployment rate leads to a 20 percent increase in neglect. We identify this effect by instrumenting for the county-level unemployment rate with a Bartik instrument, which we create as the weighted average of the national-level unemployment rates across each of twenty industries, where the weights are the county-level fraction of the employed working-age population in each industry at the start of the sample period. An important mechanism behind this effect is that parents lack social and private safety nets. The effect on neglect is smaller in states that introduce longer extensions to unemployment benefits, and is greater in counties where an initially larger fraction of children are not covered by health insurance. We find no evidence that the effect is driven by alcohol consumption or divorce.

The spread of high-speed Internet epitomizes the digital revolution, affecting several aspects of our life. Using German panel data, we test whether the availability of broadband Internet influences fertility choices in a low-fertility setting, which is well-known for the difficulty to combine work and family life. We exploit a strategy devised by Falck et al. (2014) to obtain causal estimates of the impact of broadband on fertility. We find positive effects of high-speed Internet availability on the fertility of high-educated women aged 25 and above. Effects are not statistically significant both for men, low-educated women, and under 25. We also show that broadband access significantly increases the share of women reporting teleworking or part-time working. Furthermore, we find positive effects on time spent with children and overall life satisfaction. Our findings are consistent with the hypothesis that high-speed Internet allows high-educated women to conciliate career and motherhood, which may promote fertility with a “digital divide”. At the same time, higher access to information on the risks and costs of early pregnancy and childbearing may explain the negative effects on younger adults.

When exposed to similar migration flows, countries with different institutional systems may respond with different levels of openness. We study in particular the different responses determined by different electoral systems. We find that Winner Take All countries would tend to be more open than countries with PR when all other policies are kept constant, but, crucially, if we consider the endogenous differences in redistribution levels across systems, then the openness ranking may switch.

Although the European Union allows citizens from member countries to migrate freely within its confines to facilitate integration, it may be alienating public support for Europe. This paper investigates this by extending group threat theory to explain how internal migration influences mass public support using annual data from 1998 to 2014 across 15 Western European countries. We find that increases in the presence of foreigners from new member countries in Central and Eastern Europe have raised collective concerns about EU membership and there is some evidence that it may have eroded trust in European institutions as well. The results also show that this effect is exacerbated during an economic downturn. Our findings imply that collective opinion has responded ‘rationally’ to contextual changes in Europe’s internal migration patterns. The study concludes by discussing how group threat theory is relevant for understanding collective sentiment about the European Union.