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This chapter reviews the interplay of agglomeration and pollution as well as the effect of energy policies on pollution in an urban context. It starts by describing the effect of agglomeration on pollution. While this effect is theoretically ambiguous, empirical research tends to find that larger cities are more polluted, but per capita emissions fall with city size. The chapter discusses the implications for optimal city size. Conversely, urban pollution tends to discourage agglomeration if larger cities are more exposed to pollution. The chapter then considers various energy policies and their effect on urban pollution. Specifically, it looks at the effects of energy and transport policies as well as urban policies such as zoning.
Labor unions’ greatest potential for political influence likely arises from their direct connection to millions of individuals at the workplace. There, they may change the ideological positions of both unionizing workers and their non-unionizing management. In this paper, we analyze the workplace-level impact of unionization on workers’ and managers’ political campaign contributions over the 1980-2016 period in the United States. To do so, we link establishment-level union election data with transaction-level campaign contributions to federal and local candidates. In a difference-in-differences design that we validate with regression discontinuity tests and a novel instrumental variables approach, we find that unionization leads to a leftward shift of campaign contributions. Unionization increases the support for Democrats relative to Republicans not only among workers but also among managers, which speaks against an increase in political cleavages between the two groups. We provide evidence that our results are not driven by compositional changes of the workforce and are weaker in states with Right-to-Work laws where unions can invest fewer resources in political activities.
Although the literature on the determinants of training has considered individual and firm-related characteristics, it has generally neglected regional factors. This is surprising, given the fact that labour markets differ by regions. Regional factors are often ignored because (both in Germany and abroad) many data sets covering training information do not include detailed geographical identifiers that would allow a merging of information on the regional level. The regional identifiers of the National Educational Panel Study (Starting Cohort 6) offer opportunities to advance research on several regional factors. This article summarizes the results from two studies that exploit these unique opportunities to investigate the relationship between training participation and (a) the local level of firm competition for workers within specific sectors of the economy and (b) the regional supply of training measured as the number of firms offering courses or seminars for potential training participants.
We conduct a laboratory experiment to study how locus of control operates through people's preferences and beliefs to influence their decisions. Using the principal-agent setting of the delegation game, we test four key channels that conceptually link locus of control to decision-making: (i) preference for agency; (ii) optimism and (iii) confidence regarding the return to effort; and (iv) illusion of control. Knowing the return and cost of stated effort, principals either retain or delegate the right to make an investment decision that generates payoffs for themselves and their agents. Extending the game to the context in which the return to stated effort is unknown allows us to explicitly study the relationship between locus of control and beliefs about the return to effort. We find that internal locus of control is linked to the preference for agency, an effect that is driven by women. We find no evidence that locus of control influences optimism and confidence about the return to stated effort, or that it operates through an illusion of control.
Does personality matter? Is an individual who is open to experience more or less likely to become an entrepreneur? Is it better to score low or high in agreeableness for surviving as an entrepreneur? To the extent that personality captures one part of entrepreneurial abilities, which are usually unobservable, the analysis of traits and personality characteristics helps better understanding such abilities. This chapter reviews research on the relationship between personality and entrepreneurship since 2000 and shows that possessing certain personality characteristics will make it more likely that an individual will start an own business and hire staff. More specifically, with respect to the entry decision, research finds that nearly all so-called Big Five factors as well as several specific personality characteristics influence the entry probability into entrepreneurship. Further, entrepreneurs are more likely to hire, the higher they score in risk tolerance, trust, openness to experience, and conscientiousness. However, different factors such as low scores in agreeableness, the only Big Factor that does not affect entrepreneurial entry, influence entrepreneurial survival. And for some of characteristics that influence entrepreneurial entry, like high scores in the factor openness for experience or in risk tolerance, “revolving door effects” are found, explaining why some entrepreneurs subsequently exit again the market.
Steigende Mieten?
(2022)
Vor dem Hintergrund rasant steigender Mieten in deutschen Großstädten untersuchen wir in einer neuen Studie die Auswirkungen von Gentrifizierung sowie von politischen Gegenmaßnahmen auf unterschiedliche Einkommensgruppen anhand eines quantitativen Modells für Berlin. Wir finden, dass eine Mietpreisbindung (wie der „Mietendeckel“) allen Haushalten, vor allem aber den ärmeren Haushalten, schadet. Andere Maßnahmen wie Neubau oder direkte Subventionen schneiden besser ab.
Beyond good faith
(2021)
The ambitious climate targets set by industrialized nations worldwide cannot be met without decarbonizing the building stock. Using Germany as a case study, this paper takes stock of the extensive set of energy efficiency policies that are already in place and clarifies that they have been designed “in good faith” but lack in overall effectiveness as well as cost-efficiency in achieving these climate targets. We map out the market failures and behavioural considerations that are potential reasons for why realized energy savings fall below expectations and why the household adoption of energy-efficient and low-carbon technologies has remained low. We highlight the pressing need for data and modern empirical research to develop targeted and cost-effective policies seeking to correct these market failures. To this end, we identify some key research questions and identify gaps in the data required for evidence-based policy.
Legal institutions, financial liberalization and financial development in transition economies
(2021)
Mit der Reform des Gründungszuschusses im Jahr 2011 wurden die Rahmenbedingungen der Gründungsförderung für Arbeitslose im Sozialgesetzbuch III umfassend reformiert und die Förderzahlen reduzierten sich drastisch. Insgesamt ist das Arbeitsmarktinstrument weiterhin ein Erfolg: Die meisten Geförderten sind auch knapp 3,5 Jahre nach der Gründung noch selbstständig und etwa ein Drittel von ihnen hat mindestens einen Beschäftigen. Von denjenigen, die ihre Selbstständigkeit inzwischen beendet haben, sind die meisten sozialversicherungspflichtig beschäftigt. Damit haben Geförderte eine deutlich höhere Beschäftigungsquote als vergleichbare Personen ohne diese Förderung. Auch ihre monatlichen Nettoverdienste sowie ihre Jobzufriedenheit sind höher. Verbesserungspotenzial gibt es allerdings bei der sozialen Absicherung: Geförderte zahlen seltener in eine Rentenversicherung oder in die Arbeitslosenversicherung ein und sind mit ihrer sozialen Absicherung unzufriedener als vergleichbare Personen.