Working papers results

This paper investigates the extent to which attitudes are affected by political regimes and government policies. We focus on female attitudes toward work and gender-role attitudes in the population at large, which have been shown to have significant effects on labor market outcomes. We exploit the imposition of state-socialist regimes across Central and Eastern Europe, and their efforts to promote women’s economic inclusion, for both instrumental and ideological reasons, presenting evidence from two different datasets. First, we take advantage of the German partition into East and West after 1945 and unique access to restricted information on place of residence to implement a spatial regression discontinuity design. We find more positive attitudes toward work in the sample of East German women. We also find evidence that increased female access to higher education and fulltime employment, arguably two of the very few positive aspects of living under state-socialism, may have served as channels for regime influence. Second, we employ a difference-in-differences strategy that compares attitudes formed in Central and Eastern European countries (CEECs) and Western European Countries (WECs), before and after the imposition of state socialism in CEECs. Gender-role attitudes formed in CEECs during the state socialist period appear to be significantly less traditional than those formed in WECs.

We study a setting where anti-discrimination legislation gives rise to adverse selection in the labor market. Firms rely on nonlinear compensation contracts to screen workers who differ in their family/career orientation. This results in a la- bor market equilibrium where career-oriented workers are offered an inefficiently low duration of parental leave. In addition, family-oriented workers are offered lower wages as compared to their equally skilled career-oriented counterparts. We demonstrate the usefulness of mandatory parental leave rules in mitigating the distortion in the labor market and derive conditions under which a Pareto im- provement is possible. We also characterize the optimal parental leave policy and highlight the possibility for parental leave legislation to eliminate the wage penalty of family-oriented workers by supporting pooling employment contracts.

Education is a key sociological variable in the explanation of health and health disparities. Conventional wisdom emphasizes a life course-human capital perspective with expectations of causal effects that are quasi-linear, large in magnitude for high levels of educational attainment, and reasonably robust in the face of measured and unmeasured explanatory factors. In this paper, we challenge this wisdom by offering an alternative theoretical account and an empirical investigation organized around the role of measured and unmeasured cognitive and non-cognitive skills as confounders in the association between educational attainment and health. Based on longitudinal data from the National Longitudinal Survey of Youth – 1997 spanning mid adolescence through early adulthood, results indicate that a) effects of educational attainment are very vulnerable to issues of omitted variable bias; b) that measured indicators of cognitive and non-cognitive skills account for a significant proportion of the traditionally observed effect of educational attainment; c) that such skills have effects larger than that of even the highest levels of educational attainment when appropriate controls for unmeasured heterogeneity are incorporated; and d) that models that most stringently control for such time-stable abilities show little evidence of a substantive association between educational attainment and health. Implications for theory and research are discussed.

This article analyzes the relative level and evolution of the net nutritional status of manufacturing workers and craftsmen born in the last third of the eighteenth century in central Spain. It uses the anthropometric and occupational data included in the records of the general conscription carried out during the Napoleonic invasion. The findings are interpreted in light of the recent contributions made regarding the evolution of the economy and industrial products of central Spain during the second half of the eighteenth century. Significant differences can be observed between the different professions and economic sectors, largely explained by income levels, a possible selection for some occupations in accordance with physical characteristics, and access to animal proteins. Furthermore, the data also reveal an overall decrease in height and an increase in inequality between professions during the period.

How do tax incentives affect firms’ investment? Using confidential UK corporation tax returns, we provide new evidence on the effects of incentives in the form of depreciation allowances. We exploit a 2004 exogenous change in the qualifying thresholds for the first-year depreciation allowances (FYAs) and conduct a difference-in-difference analysis. Results suggest that the investment rate increased between 2.1 and 2.6 percentage points when firms became qualified for FYAs, relative to firms that never qualified. This implies an increase in investment rate of 11 percent at the mean. We exploit exogenous variation in the timing of tax payments to show that this large effect is not due to an increase in available cash and hence, this is primarily a cost of capital effect. Firms respond rather quickly to FYAs, within 12 to 18 months. Firms also bunch just below notches in the cost of capital created by the qualifying thresholds, suggesting salience of the FYAs. Such behaviour does not drive our main results.

This article provides a general chronology of Italian famines, incorporating earlier chronologies as well as recent research on preindustrial mortality crises and covering the whole period from circa 1250 to 1810. Hypotheses about the occurrence of famines are tested using the largest-existing database of time series of burials, covering northern Italy and part of central Italy, as well as a database of time series of wheat prices covering the whole of the Peninsula. The role played by food provisioning institutions is briefly detailed and a summary discussion of the causative factors of famines is provided. We argue that the majority of the most severe medieval and early modern famines happen when a situation of high demographic pressure on the available resources couples with periods of meteorological instability of the kind unfavorable to wheat crops, and the crisis is so widespread that institutions are unable to provide effective remedies.

This paper analyzes how advanced Medieval and Early Modern Italian economies attempted to cope with famines. First, it provides an overview of the occurrence of famines and food shortages in Italy from the fifteenth to the seventeenth century, underlining the connections with overall climatic and demographic trends. Second, it focuses on the 1590s famine (the worst to affect Italy in the period), providing a general discussion and interpretation of its causes and characteristics, and describing and evaluating the strategies for coping with the crisis that developed within the Republic of Genoa and the Duchy of Ferrara. The article argues that when such a large-scale food crisis as that of the 1590s occurred, public action played a key role in providing relief.

In the last few years, the UK has adopted a fiercely competitive business tax policy by reducing the general tax burden on business and expanding individual regimes targeted to mobile factors: CFC rules, interest deductibility rules, and the Patent Box have made the UK very attractive for internationally mobile capital and profits. As the same time, the UK has strongly supported the OECD BEPS project aimed at reducing multinationals’ tax avoidance and, hence, we argue, at eliminating or constraining forms of tax competition among countries based on individual regimes targeted to mobile capital and profits. We claim that, especially in the implementation phase of the BEPS recommendations, there will be tensions between the UK competitiveness agenda and its support for the BEPS. Such tensions will be reconciled by shifting the UK tax competition policy from a mix of rate-based plus individual regimes policy to more of a rate-based approach. In this scenario, the government will have to tighten some specific measures aimed at attracting highly mobile capital and profits, such as the patent box regime and possibly interest deductions. At the same time, it will reduce the tax burden on both mobile and less mobile activities by implementing economy-wide cuts, allowed under BEPS. Most likely, such cuts would come from a further reduction in the headline corporate tax rate and the cuts announced in the July 2015 Budget should be interpreted in this light. Cuts in the headline rate essentially reduce the taxation on profits but they do not take account of the fact that for other decisions such as investment in tangible assets and information and communications technology, other elements of the tax code, such as capital allowances, are more important. To foster real investment, the government could consider an increase in capital allowances. Another option would be the introduction of an Allowance for Corporate Equity (ACE). The interesting feature of the ACE in the context of BEPS is that it reduces the incentive to classify financing instruments as tax-advantaged debt.

Discrimination in access to public services can act as a major obstacle towards addressing racial inequality. We examine whether racial discrimination exists in access to a wide spectrum of public services in the US. We carry out an email correspondence study in which we pose simple queries to more than 19,000 local public service providers. We find that emails are less likely to receive a response if signed by a black-sounding name compared to a white-sounding name. Given a response rate of 72% for white senders, emails from putatively black senders are almost 4 percentage points less likely to receive an answer. We also find that responses to queries coming from black names are less likely to have a cordial tone. Further tests suggest that the differential in the likelihood of answering is due to animus towards blacks rather than inferring socioeconomic status from race.

This paper provides some initial results of long-term trends in economic inequality in Catalonia from 1400-1800 ca. These first findings show that the evidence collected for Catalonia matches quite well with some hypotheses suggested previously in the literature. Namely, the high inequality levels prevalent across pre-industrial Europe; an inequality gradient that linked urban, more populated, and wealthier communities with greater inequality and vice versa; and the importance of the trends followed by the share owned by the wealthy as good predictors of economic inequality trends. However, at this stage, one of the most appealing propositions—the idea that economic inequality grew for the whole of Europe during the early-modern period, shaping a long left side of a “super Kuznets curve”—does not seem to be fully confirmed for Catalonia. From the mid-17th century, inequality growth seems to go hand-in-hand with growth in per capita GDP. In earlier periods, though, the inequality trend seems to be unrelated to economic growth and even, during the second half of the 16th century, there is some evidence of inequality decline coupled with economic growth.