Micro-level Dataset Research Articles

Neodualism in the Italian business firms: training, organizational capabilities, and productivity distributions

What has been the dynamics of productivity in the Italian business firms in the aftermath of the crisis? And what has been the impact of training efforts upon such dynamics? In this work, we address these questions exploring a unique Italian micro-level dataset which links information on the amount and the nature of training and firm balance-sheet data. First, we document what we call a neodualist tendency with a leader-laggard dynamics entailing a widening support of the productivity distributions. Second, we analyze the relationship between productivities and training intensities by means of quantile regression analysis. There is indeed some relationship in the whole sample which however gets much weaker when disaggregating by sector and by size. Moreover, hardly any dynamic relationship appears, either between initial training intensities and subsequent productivity changes or between changes in both variables. Our results do not imply that training is not important, but that its effectiveness must be shaped by the interaction with other firm-specific characteristics, associated with idiosyncratic organizational capabilities.

Climate and poverty in Africa South of the Sahara.

To estimate the effects of weather conditions on welfare globally, cross-country comparisons need to rely on international poverty lines and comparable data sources at the micro-level. To this end, nationally representative household surveys can offer a useful instrument, also at the sub-national level. This study seeks to expand the existing knowledge on the determinants of poverty in Africa south of the Sahara (SSA), examining how long-term climatic conditions and year-specific weather shocks affect expenditure per capita. We take advantage of a novel and unique dataset combining consumption-based household surveys for 24 SSA countries -representative of more than half of the African population and two thirds of SSA- and geospatial information on agro-climatic conditions, market access and other spatial covariates of poverty. To our knowledge, it is the first time that a welfare-based, multidisciplinary, micro-level dataset with such wide spatial coverage has been assembled and examined. Our analysis relies on a linear and spatial model at the household- and district-level, respectively, both controlling for socio-economic, demographic, and geographic confounding factors. Results are consistent across econometric approaches, showing that living in more humid areas is positively associated with welfare, while the opposite occurs living in hotter areas, as existing literature shows. Flood shocks -defined as annual rainfall higher than one standard deviation from the 50-year average- are associated to a 35% decrease in total and food per-capita consumption and 17 percentage point increase in extreme poverty. On the other hand, extreme shortages of rain and heat shocks show an uncertain effect, even when estimates control for spatial correlation between welfare and weather conditions using the spatial error correction model. Given the heterogeneous effects of climatic events across SSA macro-regions, local-specific adaptation and mitigation strategies are suggested to help bringing households on a sustainable path.

Rockets and votes

Citizens in many countries are forced to make their political decisions under the threat of terrorism. This paper explores the effects of rocket attacks from the Gaza Strip on voting patterns in Israeli elections between 1999 and 2015. Relying on a micro-level dataset of claims for rocket-related property damages as a proxy for the severity of the rocket attacks, I find that an additional one thousand claims in a locality increases right-bloc parties’ vote-share by about 4 percentage points. Recent attacks, initial exposure and geographical proximity lead to stronger effects on voting behavior. The results are driven by actual exposure of the locality to rocket fire rather than by the mere threat of an attack.

Social capital – a topsoil for democracy

Political theorists are familiar with the proposition that social capital in the form of trust, membership in voluntary organizations, and community engagement, is conducive to democracy. Corroborating empirical evidence exists but it is patchy and inconclusive because it is usually based on aggregate, often country-level data or isolated case studies, and the identified relationship is associative rather than causal. In this paper, I use some of the most recent large-scale micro-level datasets to establish that the relationship between social capital and democracy is indeed strong and causal as predicted by theory. I find that citizens who have more trust in others, attend community meetings, and belong to voluntary organizations tend to prefer democracy to any other kind of governance.

Firms’ innovation performance and the role of the metropolitan location. Evidence from the European periphery

ABSTRACTThis paper assesses the role of metropolitan location in explaining firms’ innovation performance while accounting for other internal and external determinants of innovation. Using micro-level dataset and controlling for firm-specific, sector-specific and region-specific features, we identify a nuanced effect of location within metropolitan areas on the innovative performance of companies The results prove to vary for the different measures of innovation output of firms and in particular there is no metropolitan advantage detected for binary self-declared measures of innovations. The advantage is detected for the count-based quantity of innovation measures which is shown to critically depend on the higher performance of metropolitan-based firms in patenting and licencing. The interlinkages between location and firm-size matter and the results are asymmetric with particular benefits arising for micro-firms in their patenting and licencing.

Regional dimension of firm level productivity determinants: the case of manufacturing and service firms in Ukraine

AbstractThe main goal of this paper is to empirically investigate the regional dimension of productivity determinants for 24 regions of Ukraine using micro-level dataset for individual firms in 2013. The novelty of our analysis is the comparison of the determinants of productivity in the manufacturing and service sectors. We estimate both pooled regressions for all regions and separate regressions for particular regions. The estimation results obtained for the entire country demonstrate that the majority of our explanatory variables are statistically significant for the manufacturing sector and all are statistically significant for the service sector although at different levels of significance. At the same time, the estimation results obtained separately for each region show a large degree of heterogeneity across the regions and sectors and the lack of scale economies at the firm-level.

Beyond Econometrics: A Roadmap Towards Financial Machine Learning

One of the most exciting recent developments in financial research is the availability of new administrative, private sector and micro-level datasets that did not exist a few years ago. The unstructured nature of many of these observations, along with the complexity of the phenomena they measure, means that many of these datasets are beyond the grasp of econometric analysis. Machine learning (ML) techniques offer the numerical power and functional flexibility needed to identify complex patterns in a high-dimensional space. However, ML is often perceived as a black box, in contrast with the transparency of econometric approaches. This article demonstrates that each analytical step of the econometric process has a homologous step in ML analyses. By clearly stating this correspondence, our goal is to facilitate and reconcile the adoption of ML techniques among econometricians.

Intra-urban location of stores and labour turnover in retail

ABSTRACTThe aim of this paper is to analyse labour turnover in retail firms with stores in different city locations. This case study of a Swedish mid-sized city uses comprehensive longitudinal register data on individuals. In a first step, an unconditional descriptive analysis shows that labour turnover in retail is higher in out-of-town locations, compared to more central locations in the city. In a second step, a generalized linear model (GLM) analysis is conducted where labour turnover in downtown and out-of-town locations are compared. Firm internal and industry factors, as well as employee characteristics, and location-specific factors are controlled for. The results indicate that commuting costs and intra-urban location have no statistically significant effect on labour turnover in retail firms. Instead, firm internal factors, such as human resource management, has a major influence on labour turnover rates. The findings indicate that in particular firms with multiple locations may need to pay extra attention to work conditions across stores in different places in a city, in order to avoid diverging levels of labour mobility. This paper complements previous survey-based studies on labour turnover by using a comprehensive micro-level dataset to analyse revealed rather than stated preferences concerning job-to-job mobility. An elaborated measure of labour turnover is used to analyse differences between shopping areas in different locations within the city. The particular research design used in this paper makes it possible to isolate the effect of intra-organizational conditions by analysing mobility within firms with workplaces in both downtown and out-of-town locations. This is the first comprehensive study of labour turnover and mobility with an intra-urban perspective in the retail sector.

Communities and regularities in the behavior of investment fund managers

We analyze a large microlevel dataset on the full daily portfolio holdings and exposures of 22 complex investment funds to shed light on the behavior of professional investment fund managers. We introduce a set of quantitative attributes that capture essential distinctive features of manager allocation strategies and behaviors. These characteristics include turnover, attitude toward hedging, portfolio concentration, and reaction to external events, such as changes in market conditions and flows of funds. We find the existence and stability of three main investment attitude profiles: conservative, reactive, and proactive. The conservative profile shows low turnover and resilience against external shocks; the reactive one is more prone to respond to market condition changes; and members of the proactive profile frequently adjust their portfolio allocations, but their behavior is less affected by market conditions. We find that exogenous shocks temporarily alter this configuration, but communities return to their original state once these external shocks have been absorbed and their effects vanish.

Regional Wage Responsiveness to Unemployment — Rural–Urban Heterogeneity and Policy Implications

AbstractPrevious studies of regional wage formation in Norway have indicated low regional wage responses to regional unemployment. However, previous analyses have not investigated whether wages are more rigid in rural areas than in urban areas, which in the case of Norway is important for the efficiency of regional differentiated payroll taxes. In the paper, the authors focus on the rural–urban nature of the wage curve in Norway. We re‐estimate the wage curve on the basis of a large Norwegian microlevel dataset covering the entire Norwegian labour market during the years 2008–13. Our findings are rural–urban heterogeneity in the wage curve, with higher unemployment elasticity of pay in the urban region than in the rural regions. The elasticity of the average rural wage curve is about 70 per cent that of the of the urban wage curve. The authors conclude that to achieve the goals of regional policy in Norway, more rigid wages in rural areas seem to be an argument for continuing to have an active labour market policy for rural regions.

Bridging the Gap: Lottery-Based Procedures in Early Parliamentarization

AbstractHow is the use of political lotteries related to party development? This article discusses the effects of a lottery-based procedure used to distribute committee appointments that was once common across legislatures in nineteenth-century Europe. The authors analyze the effects of a political lottery in budget committee selection in the French Third Republic using a microlevel data set of French deputies from 1877 to 1914. They argue that the adoption and benefit of lottery-based procedures were to prevent the capture of early institutions by party factions or groups of self-interested political elites. The authors find that partial randomization of selection resulted in the appointment of young, skilled, middle-class deputies at the expense of influential elites. When parties gained control of committee assignments in 1910, selection once again favored elites and loyal party members. The authors link lottery-based procedures to party development by showing that cohesive parties were behind the institutional reform that ultimately dismantled this selection process. Lottery-based procedures thus played a sanitizing role during the transformation of emerging parliamentary groups into unified, cohesive political parties.

The spatially asymmetric evolution of mining services suppliers during the expansion and contraction phases of the copper super-cycle in Chile

Mining services suppliers (MSS) have become one of the main targets of mining-led development policies, but there are not works that analyze their evolution during mineral prices cycles at a local level. The study of this group of firms is especially relevant to understand the curse or blessing consequences of mining prices volatility. We describe the performance of Chilean MSS during and after the “super-cycle”, between 2006 and 2016, and analyze to what extent it is related to the location in municipalities specialized or not in mining activities. For these purpose, we use two unusually rich micro-level datasets that allow us to follow around 3500 services supplier during the period of analysis, describe their evolution, and conduct a series of variance-decomposition exercises to assess the differences in the MSS sector along the cycle and according to the firms´ location. Result show that the expansion phase of the cycle especially benefitted mining municipalities in terms of business formation and growth, while the contraction phase since 2012 negatively affected the whole group of suppliers independently of their location.

International Shocks, Variable Markups, and Domestic Prices

Abstract How strong are strategic complementarities in price setting across firms? In this article, we provide a direct empirical estimate of firms’ price responses to changes in competitor prices. We develop a general theoretical framework and an empirical identification strategy, taking advantage of a new micro-level dataset for the Belgian manufacturing sector. We find strong evidence of strategic complementarities, with a typical firm adjusting its price with an elasticity of 0.4 in response to its competitors’ price changes and with an elasticity of 0.6 in response to its own cost shocks. Furthermore, we find evidence of substantial heterogeneity in these elasticities across firms. Small firms exhibit no strategic complementarities in price setting and complete cost pass-through. In contrast, large firms exhibit strong strategic complementarities, responding to both competitor price changes and their own cost shocks with roughly equal elasticities of around 0.5. We show that this pattern of heterogeneity in markup variability across firms is important for explaining the aggregate markup response to international shocks and the observed low exchange rate pass-through into domestic prices.

Linking Survey and Administrative Data to Measure Income, Inequality, and Mobility.

BackgroundIncome is one of the most important measures of well-being, but it is notoriously difficult to measure accurately. In the United States, income data are available from surveys, tax records, and government programs, but each of these sources has important strengths and major limitations when used alone.ObjectivesWe link multiple data sources to develop the Comprehensive Income Dataset (CID), a prototype for a restricted micro-level dataset that combines the demographic detail of survey data with the accuracy of administrative measures.MethodsBy incorporating information on nearly all taxable income, tax credits, and cash and in-kind government transfers, the CID surpasses previous efforts to provide an accurate and comprehensive measure of income for the population of United States individuals, families, and households. We also evaluate the accuracy of different income sources and imputation methods.ConclusionsWhile still in development, we envision the CID enhancing Census Bureau surveys and statistics by investigating measurement error, improving imputation methods, and augmenting surveys with the best possible estimates of income. It can also be used for policy related research, such as forecasting and simulating changes in programs and taxes. Finally, the CID has substantial advantages over other sources to analyze numerous research topics, including poverty, inequality, mobility, and the distributional consequences of government transfers and taxes.

Dynamics of Party-Member Recruitment in Rural China

The recruitment of new party membership is crucial for the survival of incumbent parties in authoritarian regimes. The incumbent party needs to adjust its recruitment strategy in response to the changing task of the party organization. For a revolutionary party that just took the power, it needs to implement its ideal from the revolutionary period (such as repressing pre-revolution elites) in order to establish its own credibility. However, for a long-standing incumbent party that relies on performance-based legitimacy, it recruits among individuals with higher human capital. In this paper, we test the implications of the above logic by examining the recruitment dynamics of the Chinese Communist Party in rural China. By analyzing a national-wide micro-level dataset, we find that before 1979, pre-revolution elites were less likely to be recruited as party members, whereas after 1980, we no longer detect such an identity-based strategy. Instead, the recruitment involves a significant weight on individuals’ human capital. Furthermore, we also track the transition path between the two phases as well as its regional heterogeneity.

An evaluation of the methods used by European countries to compute their official house price indices

[eng] Since 2012, Eurostat requires the national statistical institutes (NSIs) in all European Union (EU) countries to compute official House Price Indices (HPIs) at a quarterly frequency. Eurostat recommends computing the HPI using a hedonic method. Most NSIs have followed this advice, although they differ in their choice of method. Some NSIs use stratified medians instead of hedonic methods. We evaluate the theoretical and empirical properties of both hedonic and stratified median methods. Of particular concern is the comparability of the HPIs across countries when computed using different methods. Our empirical comparisons use detailed micro-level data sets for Sydney and Tokyo, containing about 867,000 actual housing transactions. All the hedonic methods perform better than stratified medians. The hedonic methods generate quite similar results, except when applied to new dwellings in Tokyo. This finding shows that the choice of hedonic method can be important for smaller countries with less data. Also, the widely used hedonic repricing method becomes unreliable when the reference shadow prices are not updated frequently.

Linking Survey and Administrative Data to Measure Income, Inequality, and Mobility

Income is one of the most important measures of well-being, but it is notoriously difficult to measure accurately. Income data are available from surveys, tax records, and government programs, but each of these sources has important strengths and major limitations when used alone. We are linking multiple data sources to develop the Comprehensive Income Dataset (CID), a restricted micro-level dataset that combines the demographic detail of survey data with the accuracy of administrative measures. By incorporating information on nearly all taxable income, tax credits, and cash and in-kind government transfers, the CID surpasses previous efforts to provide an accurate and comprehensive measure of income for the population of U.S. individuals, families, and households. We use models to evaluate differences across the data sources and explore imputation methods and trends over time. The CID can enhance Census Bureau surveys and statistics through investigating measurement error, improving imputation methods, and augmenting surveys with the best possible estimates of income. It can also be used to improve the administration of taxes by the Internal Revenue Service and forecast and simulate changes in programs and taxes. Finally, the CID has substantial advantages over other sources to analyze numerous research topics, including poverty, inequality, mobility, and the distributional consequences of government transfers and taxes.

Testing the effect of investments in IT and R&D on labour productivity: New method and evidence for Indian firms

Utilizing a micro-level dataset of 900 firms for the period 2000–2016 from Indian manufacturing, this paper explores the effects of technological investments on labour productivity performance of firms by looking at investments in Information Technology (IT) and Research & Development (R&D). The present study is the first to assess the role of IT and R&D jointly for Indian manufacturing. To control for transmission bias in production function estimation, a GMM-based one step control function estimator is applied. We find large effects of both IT and R&D across various sub-samples. Further, our results imply that there is a complementarity between IT and R&D in generating labour productivity growth.

Why do firms default on their foreign currency loans? The case of Hungary

I isolate the effect of the choice of foreign currency on the loan performance of firms borrowing in different currencies in crisis times. I use a novel micro-level dataset from Hungary to decompose the factors contributing to the worse loan performance of foreign currency borrowers compared to local currency debtors. I find that foreign currency denomination can worsen loan performance considerably, while selection also contributes significantly to the default differences. On the one hand, per se less creditworthy firms borrowed in foreign currency and during the crisis the foreign currency shocks further weakened their loan performances. On the other hand, more creditworthy firms that were also well-prepared for the currency risks also borrowed in foreign currency. My results suggest that not the institution of foreign currency lending per se that should be blamed for the bad loan performance of foreign currency borrowers, instead one should consider the characteristics of the borrowers.

Social Exclusion of Multicultural Families in Korea

In recent years, Korea has experienced an increase in the number of international marriages and multicultural families, and the treatment of these families has become an important social policy issue for the Korean government. Adopting a social exclusion perspective and employing comprehensive micro-level datasets, this study examined the exclusion of multicultural families in Korea and compared them with ethnic Korean families. Largely based on indicators developed in the EU, this paper examined the extent of social exclusion across six dimensions: income, employment, housing, education, health and social networks. Comparison of social exclusion showed that multicultural families tend to experience a higher level of social exclusion in general than Korean families do. A multivariate analysis using a zero-inflated Poisson regression model revealed that females, elderly marriage migrants and those with lower social status were exposed to particularly higher risks of exclusion, whereas those who spoke fluent Korean or possessed fertile social networks were less likely to face social exclusion. This paper’s findings underscore the need to provide a wider and more demand-oriented social policy to support immigrants and also emphasises the role of Korean language proficiency and social networks in integrating multicultural families.