This paper estimates the effect of experiencing the onset of an adverse health condition on the retirement decision of European workers. Conditional on institutional characteristics (country and individual dependent) and a selection of socioeconomic and demographic characteristics of the individual, we are able to net out the effect of health conditions that occur before the decision to retire, if retired. This paper compares the effect of adverse health conditions on the decision to retire from individuals aged 50 and over from 11 European countries using the 2004 SHARE survey. The results suggest that suffering an adverse health condition can significantly increase the age of retirement although this may not necessarily imply an increase in total contributory pensions: some specific countries (Greece and Switzerland in particular) may deviate from the overall result. The results are carefully estimated controlling for potential sources of endogeneity and selection bias.
Surveys are often design so that initial non-respondents to some continuous amount can disclose partial information with follow-up questions. These questions are often based on prompting responses with a sequence of bids that classify the undisclosed amount within a category. Secondary variables may reduce the problem of nonresponse but are unlikely to eliminate the problem altogether, thus, identification of the population parameters remains problematic. Furthermore, eliciting partial information by ‘anchoring' the answers to a set of bids may induce anchoring bias. This paper develops from Horowitz and Manski (1995, 1998) to derive bounding intervals with partial information that allow for anchoring effects according to the experimental finding in Jacowitz and Kahneman (1995). The bounds provide regions of identification allowing for any type of non-random nonresponse. The method is illustrated using the 1996 wave of the Health and Retirement Study to show that bounding intervals can be used to detect for differences in health habit between income sub-groups in the population.
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 affects 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
Geringqualifizierte haben in Deutschland ein weitaus höheres Risiko arbeitslos zuwerden als Fachkräfte. Kann ein subventionierter Niedriglohnsektor - wie er derzeit im Bündnis für Arbeit diskutiert wird - zur Lösung ihres Arbeitsplatzproblems beitragen?
In welchem Umfang werden zusätzliche Arbeitsplätze geschaffen und was kosten sie?
Collecting biomarkers as part of general purpose surveys offers scientists - and socila scientists in particular - the ability to study biosocial phenomena, e.g. the realtion between genes and human behavior. We explore the feasibility of collecting buccal cells for genetic analyses with normal interviewers as part of a pretest for the German Socio-economic Panel Study (SOEP) using a probability sample. We introduce a new non-invasive technique for collecting cell material for genetic analyses and test its quality. We found no technical difficulites in collecting the genetic material and almost all samples collected could be analyzed. However, one third of interviewers reported it was hard to convince panel members to participate. The "biomarker wave" showed no reduction in response rate compared to the previous wave that included no biomarkers and the sample exhibited very little selectivity. We conclude that collecting cell material for genetic analyses with normal interviewers is feasible with no apparent same-wave attrition, though so far we cannot rule out attrition in subsequent waves.
This paper offers a rationale for limiting the delegation of (real) authority, which neither relies on insurance arguments nor depends on ownership structure. We analyse a repeated hidden action model in which the actions of a risk neutral agent determine his future outside option. Consequently, the agent can improve his future bargaining position, which gives the principal an incentive to retain sufficient control over the agent's actions. Using respective one-period contracts, the principal can implement the efficient outcome while "selling the shop" to the agent is sub-optimal. This provides an argument for integration if the boundary of the firm is defined by control rights rather than the entitlement to revenues.
We study an elimination tournament with heterogenous contestants whose ability is common-knowledge. Each pair-wise match is modeled as an all-pay auction where the winner gets the right to compete at the next round. Equilibrium efforts are in mixed strategies, yielding rather complex play dynamics: the endogenous win probabilities in each match depend on the outcome of other matches through the identity of the expected opponent in the next round. The designer can seed the competitors according to their ranks. For tournaments with four players we find optimal seedings with respect to three different criteria: 1) maximization of total effort in the tournament; 2) maximization of the probability of a final among the two top ranked teams; 3) maximization of the win probability for the top player. In addition, we find the seedings ensuring that higher ranked players have a higher probability to win the tournament. Finally, we compare the theoretical predictions with data from NCAA basketball tournaments.