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Germany experienced a unique rise in the level of self-employment in the first two decades following unification. Applying the nonlinear Blinder-Oaxaca decomposition technique, we find that the main factors driving these changes in the overall level of self-employment are demographic developments, the shift towards service sector employment and a larger share of population holding a tertiary degree. While these factors explain most of the development in self-employment with employees and the overall level of self-employment in West Germany, their explanatory power is much lower for the stronger increase in solo self-employment and in self-employment in former socialist East Germany.
The role of knowledge in the policy process remains a central theoretical puzzle in policy analysis and political science. This article argues that an important yet missing piece of this puzzle is the systematic exploration of the political use of policy knowledge. While much of the recent debate has focused on the question of how the substantive use of knowledge can improve the quality of policy choices, our understanding of the political use of knowledge and its effects in the policy process has remained deficient in key respects. A revised conceptualization of the political use of knowledge is introduced that emphasizes how conflicting knowledge can be used to contest given structures of policy authority. This allows the analysis to differentiate between knowledge creep and knowledge shifts as two distinct types of knowledge effects in the policy process. While knowledge creep is associated with incremental policy change within existing policy structures, knowledge shifts are linked to more fundamental policy change in situations when the structures of policy authority undergo some level of transformation. The article concludes by identifying characteristics of the administrative structure of policy systems or sectors that make knowledge shifts more or less likely.
We study voting over higher-education finance in an economy with two regions and two separated labor markets. Households differ in their financial endowment and their children's ability. Nonstudents are immobile. Students decide where to study; they return home after graduation with exogenous probability. The voters of the two regions decide on whether to subsidize higher-education costs or to rely on tuition fees only. We find that in equilibrium, in both regions a majority votes for subsidies when the return probability is sufficiently small. When that probability is large, both regions opt for full tuition finance.
Why do entrepreneurship rates differ so markedly by gender? Using data from a large representative German household panel, we investigate to what extent personality traits, human capital, and the employment history influence the start-up decision and can explain the gender gap in entrepreneurship. Applying a decomposition analysis, we observe that the higher risk aversion among women explains a large share of the entrepreneurial gender gap. We also find an education effect contributing to the gender difference. In contrast, the Big Five model and the current employment state have effects in the opposite direction, meaning that the gender gap in entrepreneurial entry would be even larger if women had the same scores and the same employment status as men. (JEL codes: L26, J16, D81, J24, M13).
We propose a combined approach of propensity score matching with difference-in-differences methods for reducing selection biases of products being reviewed by critics. Critics' decision to review products may be driven by observable (e.g., star power) and unobservable (e.g., critics' individual preferences) factors, raising the question of reverse causality and selection biases. Our proposed approach enables to rigorously control for selection biases by observable and unobservable characteristics. We apply our methodological framework on data from the German book market and estimate the sales effect of a well-known TV critic. We identify substantial selection effects of individual critics, which result in serious underestimation of the short-term effect (up to 29 %) and the long-term effect (up to 37 %). The results emphasize the relevance of the proposed methodological framework by demonstrating that observable and unobservable factors drive selection effects.
This article investigates collective team identification and team member alignment (i.e., the existence of short- and long-term team goals and team-based reward structures) as moderators of the association between task and relationship conflicts. Being indicators of cooperative goal interdependence in teams, both moderators are hypothesized to mitigate the positive association between the two conflict types. Findings from 88 development teams confirm the moderating effect for collective team identification, but not for team member alignment. Moreover, the moderating role of collective team identification is found to be dependent on the level of task conflict: It is more effective in decoupling task and relationship conflicts at medium as compared with high or low levels of task conflict.
Offering unemployed individuals a subsidy to become self-employed is a widespread active labor market policy strategy. Previous studies have illustrated its high effectiveness to help participants escaping unemployment and improving their labor market prospects compared to other unemployed individuals. However, the examination of start-up subsidies from a business perspective has only received little attention to date. Using a new dataset based on a survey allows us to compare subsidized start-ups out of unemployment with regular business founders, with respect to not only personal characteristics but also business outcomes. The results indicate that previously unemployed entrepreneurs face disadvantages in variables correlated with entrepreneurial ability and access to capital. Nineteen months after start-up, the subsidized businesses experience higher survival, but lag behind regular business founders in terms of income, business growth and innovation. Moreover, we show that expected deadweight effects related to start-up subsidies occur on a (much) lower scale than usually assumed.
Reworking postcolonialism
(2015)
An interdisciplinary collection of essays, Reworking Postcolonialism explores questions of work, precarity, migration, minority and indigenous rights in relation to contemporary globalization. It focuses on the impact of global market forces on the formation of new subject positions among urban dwellers, exiles, and other disenfranchised communities. Bringing together political, economic and literary approaches to texts and events from across the postcolonial world, the essays collected here investigate the transformative effects of the global dissemination of capital and goods and the movements of people. They call for a revision of existing discourses on rights, entitlements and citizenship.
We propose a merchant-regulatory framework to promote investment in the European natural gas network infrastructure based on a price cap over two-part tariffs. As suggested by Vogelsang (J Regul Econ 20:141-165, 2001) and Hogan et al. (J Regul Econ 38:113-143, 2010), a profit maximizing network operator facing this regulatory constraint will intertemporally rebalance the variable and fixed part of its two-part tariff so as to expand the congested pipelines, and converge to the Ramsey-Boiteaux equilibrium. We confirm this with actual data from the European natural gas market by comparing the bi-level price-cap model with different reference cases. We analyze the performance of the regulatory approach under different market scenarios, and identify relevant aspects that need to be addressed if the approach were to be implemented.