Monday, November 20th 2017 –  13:00 – 14:00

Maison des Sciences Économiques, Room S/3

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

Giuseppe Berlingieri
(ESSEC business school & OECD)
with Sara Calligaris (OECD) and Chiara Criscuolo (OECD)

 

Does the Sector Matter? Unbundling the Size-Productivity-Wage Premium

 

Abstract: Ever since Moore (1911) a large empirical and theoretical literature has established the existence of a firm size-wage premium. At the same time, a second regularity in empirical work, linking size and productivity, has inspired a vast literature in multiple fields. However, the majority of the existing evidence is based on manufacturing data only. With manufacturing nowadays accounting for a very small share of the economy in many countries, whether productivity, size, and wages are closely linked, and how tight this link is across sectors, is still an open question.
Using a unique dataset that collects micro-aggregated firm-level information on productivity, size, and wages for the entire economy in 14 countries over the 1994-2012 period, this paper unveils a much more subtle picture. First, while in the manufacturing sector both productivity and wages increase monotonically with firm size, the same is not true in the service sector. Second, a tight and positive link between wages and productivity is instead found in both manufacturing and services. The combination of these results suggests that, when looking at data for a much larger share of the economy, the “size-wage premium” becomes more a “productivity-wage premium”. Unbundling the relationship between size, wages, and productivity has first-order policy implications for both workers and firms.

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     Monday, November 6th 2017 –  13:00 – 14:00

Maison des Sciences Économiques, Room S/3

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

José de Sousa
(RITM, Université Paris-Sud)
with Thierry Mayer (SciencesPo) and Eve Sihra (Hebrew University)

 

Market Integration and Convergence in Consumption Patterns

 

Abstract: This paper explores whether market integration makes culture converge. Using household survey data on food consumption in France from 1974 to 2005, we find that (1) France is characterized by strong localized tastes, which (2) converge over time, but (3) this convergence is not only due to price and income convergence: in short, France becomes “flatter”, more homogenized. We use an Almost Ideal Demand System to identify regional residual parameters after taking into account price and income effects. These residuals allow us to compute a bilateral taste distance that we regress on bilateral trade costs, conditioning on region fixed effects. We find that distance in taste is positively correlated with trade costs, but with a decreasing effect over time, supporting evidence of a culture convergence.

     Monday, October 9th 2017 –  13:00 – 14:00

Maison des Sciences Économiques, Room S/3

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

Ahmed Tritah
(Université du Maine)
with Catherinee Laffineur (Nice), Eva Moreno-Galbis (Aix-Marseille), Jérémy Tanguy (Savoie)

 

Are immigrants’ skills price differently? Evidence from France

 

Abstract:

Over the last two decades, despite similar employment dynamics, immigrants and natives in France have experienced different wage changes along the occupational wage distribution. We explain this pattern within a Roy-type wage setting and relate changes in the occupational wage distribution to changes in task-specific skill returns and skill prices. We show that immigrants wage growth has outperformed that of natives along the whole occupational wage distribution. This pattern is explained by changes in immigrants’ relative skill endowment which allows them to move upward the occupational wage ladder. The sources of immigrants relative wage performance are also heterogeneous. Among the less skilled, minimum wage changes over the period are the main determinant. Instead, the wage performance of the more skilled is rather driven by the dynamics of their comparative advantages across tasks.

Monday, September 18th 2017 –  13:00 – 14:00

Maison des Sciences Économiques, Room S/3

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

Roland Rathelot
(Warwick)
with Marie Gadenne (Warwick) and Tushar Nandi (CSSS Calcutta)
Taxation and Supply Chains:
Evidence from Value-Added Taxes in West Bengal

Abstract:

How do tax systems in developing countries affect the efficiency of supply chains? West-Bengal (India) has a dual-tax system: firms whose size are below a threshold can choose between a VAT and a turnover tax. Firms that opt for the turnover scheme cannot issue tax receipts for their sales, so VAT-paying firms cannot deduct purchases from firms in the turnover scheme from their tax liability. All else equal, VAT-paying firms will prefer trading with VAT-paying firms than with firms in the turnover scheme.

We develop a theoretical framework to understand how firms’ production, choice of tax status (turnover vs VAT) and trading (choice of suppliers and clients) decisions are affected by tax policy. We then use administrative tax data on the nearly 200,000 firms paying taxes (in both the VAT or turnover schemes) in West Bengal over the period 2010 to 2015. On top of firms’ balance sheet, we have data on 4 billion firm-to-firm transactions which we use to characterize the production network in the economy.

We find considerable heterogeneity in firms’ tax status choices: (i) there is substantial bunching below the turnover tax threshold, (ii) 70% of firms eligible to both regimes choose to pay the VAT. Our evidence suggests that supply chain considerations drive this heterogeneity: we find that firms that enter our data in any given year are more likely to choose to enter the VAT scheme (as opposed to the turnover scheme) when their potential trading partners are in the VAT scheme.

Monday, June 12th 2017 –  13:00 – 14:00

Maison des Sciences Économiques, Room 19

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

Johannes Boehm
(Sciences Po)
with Ezra Oberfield (Princeton & NBER)
Misallocation in the Market for Inputs: Enforcement and the Organization of Production

Abstract – How costly is weak contract enforcement? Using microdata on Indian manufacturing plants, we show that in states with weaker enforcement, as measured by judicial lags, production and sourcing decisions appear systematically distorted, with the effect concentrated in industries that rely more heavily on inputs that require customization. To quantify the impact of these distortions on aggregate productivity, we construct a model in which plants have several ways of producing, each with different bundles of inputs. Weak enforcement exacerbates a holdup problem that arises when using inputs that require customization, distorting both the intensive and extensive margins of input use. The distortions accumulate along supply chains.

Monday, May 29th 2017 –  13:00 – 14:00

Maison des Sciences Économiques, Room 19

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

Sara Biancini
(CREM, Université de Caen)
with Pamela Bombarda (ThEMA, Université de Cergy-Pontoise)
Intellectual Property Rights, MNFs and Technology Transfers

Abstract – We consider a framework in which firms based in the North offshore production of an intermediate good in the South. Firms can decide to import the intermediate from vertically integrated producers, or to outsource to independent contractors using a licensing contract based on a Northern blueprint. The developing country is characterized by incomplete contracts and an imitation risk related to weak IPR enforcement. Our model shows that, under reasonable assumptions on model parameters, a reinforcement of intellectual property rights (IPR) in the South can increase the relative share of imports from vertically integrated suppliers. Using the U.S. Related-Party Trade database from Antras (2015), we   find empirical evidence supportive of our key prediction.

Monday, May 15th 2017 –  13:00 – 14:00

Maison des Sciences Économiques, Room 19

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

Evgenii Monastyrenko
(PhD candidate, PSE)
with Julian HINZ (Kiel Institute for the World Economy)
Bearing the Cost of Politics: Consumer Prices and Welfare in Russia

Abstract – In August 2014 the Russian Federation implemented an embargo on select food and agricultural imports originating from the European Union, United States, Australia, Canada and Norway. The measure was designed to be the response to economic sanctions against Russia by harming foreign producers of the targeted products. We aim to estimate the consequences of such abrupt restrictions on international trade for consumer prices and welfare in Russia. We employ detailed monthly data on consumer prices in Russia between 2011 and 2016 at different administrative levels. A simple difference-in-differences approach suggests that self-imposed embargo induced a well-predictable rise in the prices of targeted goods in the short run. Regions of Russia with previously above-average levels of food imports from sanctioned countries experienced a stronger impact. In the medium run imports from other sources replaced previous imports from embargoed countries and in the long run – after one year – domestic production significantly diminished the initial price surge. Meanwhile, a time trend in non-targeted goods suggests that their prices have been also altered. We hypothesize that the policy shock is translated to non-targeted sectors by means of input-output production linkages. We further quantify the outcomes of embargo using a Ricardian model with sectoral linkages, trade in intermediate goods and sectoral heterogeneity in production.