Monday, December 16th, 2019 –  13:00 – 14:00

Maison des Sciences Économiques, Room 116

 Maison des Sciences Économiques, 106-112 bd de l’Hôpital, 75013 Paris, Métro 5 Campo Formio, bus 57, 67, 22.

Davide Suverato
(ETH Zurich)
with Sebastian Doerr (University of Zurich), Dalia Marin (Technical University of Munich) and Thierry Verdier (Paris School of Economics)

Mis-allocation within Firms: Internal and International Trade.

In the global market firms operating in many market segments coexist with single-segment firms, each behaving as a competitive monopolist. Multi-segment organizations are characterized by agency problems between the owner and divisional managers competing for funds. In equilibrium, divisions of multi-segment firms are financed with more capital than single-segment firms with the same technology. The distortion is greater in the more efficient divisions of the more efficient firms. This within-firm mis-allocation explains why the market-to-book value of multi-segment firms is lower than for single-segment firms (conglomerate discount) as observed in the data. The model also predicts that the cost structure of a multi-segment firm responds endogenously to competition. This is a distinctive feature of our theory, which leads to conclude that a more integrated open economy imposes greater discipline on internal competition for capital within firms, thus improving the efficiency of internal capital markets. We test the predictions of the model on publicly listed US firms. We find that the increase in Chinese imports between 1999-2007 causally reduces mis-allocation. The conglomerate discount decreases by 32%. The marginal cost at the segment level falls, by 5% in the worst segments and up to 15% in the best segments of multi-segment firms.

 

 

 

Monday, December 2nd, 2019 –  13:00 – 14:00

Maison des Sciences Économiques, Room 116

 Maison des Sciences Économiques, 106-112 bd de l’Hôpital, 75013 Paris, Métro 5 Campo Formio, bus 57, 67, 22.

Ilham Ksebi
(PSE)

Are they over satisfied? The gap between subjective and objective position of immigrants in the Italian labor market.

Abstract: According to objective standards, women and immigrants have worse labour market achievements than men and locals, yet they report relatively high levels of perceived income and job satisfaction. In this paper, I use a large sample of workers taken from the Italian labour force survey to investigate this matter in two steps. First, I separately asses the determinants of the objective and the subjective work perspective by stressing the role of the gender and the migration status, together with other personal characteristics of workers and labour market variables. Moreover, I estimate the gap between subjective and objective work perception by breaking it along many dimensions. The estimation results reveal that gender has a stronger effect on the gap with respect to the migration status. In addition, I show that a substantial subjective gap is observed among immigrants coming from developing countries.

 

Monday, November 18th, 2019 –  13:00 – 14:00

Maison des Sciences Économiques, Room 116

 Maison des Sciences Économiques, 106-112 bd de l’Hôpital, 75013 Paris, Métro 5 Campo Formio, bus 57, 67, 22.

Francesco Manaresi
(Bank of Italy)
with Vicenzo Scrutinio (University of Bologna), Alessandro Palma (University of Naples Parthenope) and Luca Salvatici (Rome 3 university)

Export Management and Labour Demand: Evidence from an Italian Policy Experiment.

Abstract: We study the effect of improving the export orientation of management on firm behavior, exploiting an ideal natural experiment. In 2016 the Italian Government introduced a subsidy for firms hiring temporary export managers, granted to applications received on a specific “click day” on a first come-first served basis until available resources were exhausted. Combining complete information on winning and losing applicants with detailed firm balance-sheets and linked employer-employee data, we identify how the new management capabilities affected firm’s employment and investment policies and, ultimately, its productivity.

 

Monday, November 4th, 2019 –  13:00 – 14:00

Maison des Sciences Économiques, Room 116

 Maison des Sciences Économiques, 106-112 bd de l’Hôpital, 75013 Paris, Métro 5 Campo Formio, bus 57, 67, 22.

Michelangelo Vasta
(Università di Siena)
with Giovanni Federico (New York University, Abu Dhabi), Alessandro Nuvolari (Sant’Anna School of Advanced Studies, Pisa), Leonardo Ridolfi (Sant’Anna School of Advanced Studies, Pisa)

The race between the snail and the tortoise: skill premium and early industrialisation in Italy (1861-1913).

Abstract: In this paper, we estimate series of the skill premium for Italy during the early stages of the industrialization with a refined version of the regression approach originally introduced by Clark (2005). We compute series for the whole country as well as separate series for macro-regions and for construction and manufacturing, and, within manufacturing, we estimate high and low skill-premia for blue collars. We interpret the results with an extended version of the classic Katz and Autor (1999) framework. The overall premium remained stable until the 1890s and then declined for the joint effect of migrations (almost exclusively of unskilled workers) and the rise in literacy, which was not compensated by the modest increase in industrial employment.

 

Monday, October 21th, 2019 –  13:00 – 14:00

Maison des Sciences Économiques, Room 116

 Maison des Sciences Économiques, 106-112 bd de l’Hôpital, 75013 Paris, Métro 5 Campo Formio, bus 57, 67, 22.

Olivier Bargain
(Bordeaux university)
with Anders B. Jonassen (Rockwool Foundation, Denmark)

Welfare’s Disincentive for the Youth: Evidence from Danish Administrative Panel Data.

Abstract: Age conditions are frequently encountered in policy rules, lending themselves to regression discontinuity designs (RDD). Yet, age is a specific forcing variable and several issues may arise. We address them using a panel administrative dataset covering the whole Danish population. We focus on the sharp increase in social assistance levels at age 25 during the period 2000-06. Cross-sectional RDD based on age variation points to a significant effect of welfare payments on the employment level of high-school dropouts at 25. Using the panel dimension, we validate this result while unveiling the dynamics underlying the RDD estimate. First, we show that the effect is not much affected by business cycles or cohort effects. Then, we track different cohorts as they pass through the discontinuity and confirm the interpretation in terms of an adverse employment effect. The timing of adjustment is well identified and does not invalidate the RDD approach. Only two-thirds of the effect is attributable to transitions from work to welfare, while another third is due to a reduced entry on the labor market, with potentially different policy implications. Finally, we provide heterogeneous estimates of the employment response along the earnings distribution, confirming that high responses are concentrated at very low earnings levels, which is a crucial input for optimal tax-benefit designs.

 

Monday, October 7th, 2019 –  13:00 – 14:00

Maison des Sciences Économiques, Room 116

 Maison des Sciences Économiques, 106-112 bd de l’Hôpital, 75013 Paris, Métro 5 Campo Formio, bus 57, 67, 22.

Jérôme Valette
(CES – University Paris 1 Panthéon Sorbonne)
with Simone Bertoli (CERDI, Clermont Auvergne university) and Morgane Laouenan (CNRS, University Paris 1 Panthéon Sorbonne) 

Border  Apprehensions, Salience of Hispanic Identity and Sentences in the US Federal Criminal Justice System.

Abstract: This paper provides econometric evidence that Hispanic citizens receive significantly harsher sentences in the US Federal Criminal Justice System when there is an increase in the number of illegal aliens that are apprehended along the US-Mexico border. Conversely, sentences for Hispanic immigrants remain unaffected. We interpret that this effect is due to the induced increase in the salience of Hispanic ethnic identity, in response to an increase in media attention and public interest towards immigration, which is often associated with negative stereotypes such as a propensity to commit crimes. This blurs the distinction between Hispanics citizens and immigrants, thus eroding the differential in sentences between the two groups that is typically observed in the data. The proposed interpretation is corroborated by the analysis of the heterogeneity of the results along several dimensions. Notably, the estimated effect is at play when judges have fewer elements to base their decisions and the increase in sentence length is such that it remains within the US Sentencing Commission guideline prescribed range.

 

Monday, September 23th, 2019 –  13:00 – 14:00

Maison des Sciences Économiques, Room 116

 Maison des Sciences Économiques, 106-112 bd de l’Hôpital, 75013 Paris, Métro 5 Campo Formio, bus 57, 67, 27, 83 or 47

Guillaume Daudin
(University Paris-Dauphine)
with Elizaveta Archanskaia (Ku Leven) 

Product substitutability and the Distance Puzzle.

Abstract: We propose a novel explanation of the non-decreasing distance elasticity of trade over 1963-2013, commonly referred to as “the distance puzzle”. Consistently with previous work, we find that the changing composition of world trade point to a distance puzzle: trade has become more sensitive to distance through time. Our original contribution consists in documenting an increase of between 20 and 30 percent in the perceived substitutability of products traded on the world market over the same period. This elasticity corresponds to the elasticity of trade flows to trade costs on the intensive margin. In the Armington framework it determines the elasticity of trade flows to trade costs.The evolution of this parameter suffices to explain the non-decreasing distance elasticity of trade.