On the Effects of Career Choice: Matching Efficiency of Different Occupations and Education Levels

This paper investigates the differences in the matching process of job seekers and vacancies to be filled between different educational and occupational groups. To investigate this issue, matching functions are estimated across different occupations and educational cohorts, that is, on an even lower level of aggregation than previously investigated in the literature, and along different dimensions. In order to rule out spurious results, the panel data are tested for stationarity applying novel panel testing techniques based on bootstrapping methods. The data used also allow to distinguish inflows into jobs by previous job status of new hires.Matching, empirical matching functions, vacancies, unemployment, occupational structure, education, stationarity in panels

Life Expectancy and Economic Growth: The Role of the Demographic Transition

In this paper we investigate the causal effect of life expectancy on economic growth by explicitly accounting for the role of the demographic transition. In addition to focusing on issues of empirical identification, this paper emphasizes the role of the econometric specification. We present a simple theory of the economic and demographic transition where individuals' education and fertility decisions depend on their life expectancy. The theory predicts that before the demographic transition improvements in life expectancy primarily increase population. Improvements in life expectancy do, however, reduce population growth and foster human capital accumulation after the onset of the demographic transition. This implies that the effect of life expectancy on population, human capital and income per capita is not the same before and after the demographic transition. Moreover, a sufficiently high life expectancy is ultimately the trigger of the transition to sustained income growth. We provide evidence supporting these predictions using data on exogenous mortality reductions in the context of the epidemiological revolution.life expectancy, demographic transition, epidemiological revolution, heterogeneous treatment effects

Human Capital and Growth: Specification Matters

This paper suggests that the weak empirical effect of human capital on growth in existing cross-country studies is partly the result of an inappropriate specification that does not account for the different channels through which human capital aspects growth. A systematic replication of earlier results from the literature shows that both, initial levels and changes in human capital, have positive growth effects, while in isolation, each channel often appears insignificant. Studies that do not account for both channels might underestimate the effect of human capital due to convergence in human capital, in particular when measuring human capital in log average years of schooling. This study therefore complements alternative explanations for the weak growth effects of human capital based on outlier observations and measurement issues.Human Capital, Growth Regressions, Specification.

Health and Economic Development - Evidence from the Introduction of Public Health Care

This paper investigates the causal effect of changes in health on economic development using a long panel of European countries. Identification is based on the particular timing of the introduction of public health care systems in different countries, which is the random outcome of a political process. We document that the introduction of public health care systems had a significant immediate effect on the dynamics of infant mortality and crude death rates. The findings suggest that a reduction in infant mortality or crude death rates exhibited a positive effect on growth in income per capita and increased population growth.Mortality, Economic Development, Growth, Public Health Care.

Spatial Aspects of Job Creation: Evidence from Western Germany

This paper provides detailed information about spatial interactions in the job creation process in West German regional labor markets. We investigate spatial (auto-) correlations in the matching process of vacancies and unemployed, examine regional hiring patterns, and identify clusters of regions with intense inter-regional matching. An extensive specification analysis illustrates the extent of regional dependencies. We investigate the impact of German re-unification on regional patterns of job creation, and compare regional matching efficiencies using a stochastic frontier approach.internal migration, regional unemployment, stochastic frontiers

Human Capital Accumulation, Lifetime Duration and the Process of Economic Development

This paper presents a microfounded theory of long-term development. We model the interplay between economic variables, namely the process of human capital formation and technological progress, and the biological constraint of finite lifetime expectancy. All these processes affect each other and are endogenously determined. The model is analytically solved and simulated for illustrative purposes. The resulting dynamics reproduce a long period of stagnant growth as well as an endogenous and rapid transition to a situation characterized by permanent growth. This transition can be interpreted as industrial revolution. Historical and empirical evidence is discussed and shown to be in line with the predictions of the model.long-term development, endogenous lifetime duration, endogenous life expectancy, human capital, technological progress, growth externalities

Democratization, Violent Social Conflicts, and Growth

This paper investigates the empirical role of violent conflicts for the causal effect of democracy on economic growth. Exploiting within-country variation to identify the effect of democratization during the "Third Wave", we find evidence that the effect of democratization is weaker than reported previously once one accounts for the incidence of conflict, while the incidence of conflict itself significantly reduces growth. The results show in turn that permanent democratic transitions significantly reduce the incidence and onset of conflict, which suggests that part of the positive growth effect of democratization arises because democratization reduces conflict incidence. When accounting for the role of violence during democratization, we find evidence that peaceful transitions to democracy have a significant positive effect on growth that is even larger than reported in the previous literature, while violent transitions to democracy have no, or even negative, effects on economic growth.Democratization, Armed Conict, Civil War, Economic Growth, Democratization Scenario, Peaceful Transition.

Health and Economic Development: Evidence from the Introduction of Public Health Care

This paper investigates the causal effect of changes in health on economic development using a long panel of European countries. Identification is based on the particular timing of the introduction of public health care systems in different countries, which is the random outcome of a political process. We document that the introduction of public health care systems had a significant immediate effect on the dynamics of infant mortality and crude death rates. The findings suggest that a reduction in infant mortality or crude death rates exhibited a positive effect on growth in income per capita and increased population growth.growth, economic development, mortality, public health care

A Cultural Criminology of ‘New’ Jihad: Insights from Propaganda Magazines

The backgrounds and modus operandi of more recent jihadi terrorists tend to share factors and characteristics more typically associated with non-political violence such as mass- killings and gang violence. Their attacks, moreover, seem to have been precipitated not by the direct instructions of a formal hierarchy but by the encouragement of propaganda produced and disseminated by networked, media-savvy terrorist groups. It is necessary to explain how these ‘recruitment’ efforts work. Cultural criminology with its understanding of the relationship between mediated meaning and individual experience, can provide such an analysis. The paper presents a qualitative document analysis of 32 propaganda magazines produced by the Islamic State and Al-Qaeda. It demonstrates that they contain significantly more than religious rhetoric and military strategy. Rather, they are part of a process that crystalizes a jihadi subculture that appeals to disaffected and/or marginalized, excitement- seeking youths. The magazines cultivate violence by constructing a militarized style that celebrates outlaw status, where violence is eroticized and aestheticized. They idealize the notion of a jihadi terrorist that is tough and willing to commit brutal violence. The lifestyle portrayed offers the possibility of heroism, excitement, belonging and imminent fame, themes often espoused by conventional, Western consumer culture. The magazines occasionally draw on street jargon, urban music, fashion, films and video games. The subcultural model of jihadi propaganda we explicate provides a novel way of understanding terrorist recruiting tactics and motivations that are not necessarily in opposition to contemporary conventional criminal and ‘mainstream’ cultures, but in resonance with them

Dismissal Protection and Worker Flows in Small Establishments

The paper examines real and nominal wage rigidities.We estimate a switching regime model, in which the observed distribution of individual wage changes, computed from West German register data for 1976-1997, is generated by simultaneous processes of real, nominal or no wage rigidity, and measurement error. The fraction of workers facing wage increases that are due to nominal, but mostly real wage rigidity is substantial.The extent of real rigidity rises with inflation, whereas the opposite holds for nominal rigidity. Overall, the incidence of wage rigidity, which accelerates unemployment growth, is most likely minimized in an environment with moderate inflation.downward wage rigidity, real effects of inflation, collective bargaining, switching regime model,West Germany