Policy Conclusions Research Articles

Abuse of economic dependence and its interaction with competition policy: the economics perspective

A number of jurisdictions, including in the European Union, have adopted legal provisions that ban situations in which one contractual party holds and abuses a position of economic strength relative to a counterparty. This practice, typically referred to as ‘abuse of economic dependence’, can be invoked by companies before national courts, or by or before national competition authorities if they deem that such abuse has implications for competition. A recent yet sudden increase in abuse of economic dependence decisions by national competition authorities indicates that this enforcement tool is gaining traction, possibly due to its lower evidentiary bar compared to the more established abuse of dominance under EU or national competition law. However, if competition policy is intended to protect competition and ultimately consumers, it is unclear how the relationship between two companies can affect competition, especially if the stronger negotiating party is not dominant and the weaker party is too small to make a tangible impact on consumer welfare ‒ unless the same contractual terms are imposed on a large number of weaker parties. This article sets out the principal provisions of such legislation in Belgium, France, Germany and Italy and its enforcement in France and Italy, before considering the economics of bargaining and offering some policy recommendations and conclusions. This article shows that the issues that laws prohibiting the abuse of economic dependence are intended to safeguard can be dealt with by other means, for example contract law. If it is intended to apply these legal provisions to highly innovative sectors such as digital, other regulatory tools may be better placed to bring competition and fairness in the online world, such as the EU’s Digital Markets Act. Nevertheless, it is likely that these enforcement tools will be used more often. As such, it is important to set high thresholds for when such enforcement tools can be used by competition authorities and to introduce quantitative analyses to inform their assessment.

Refugee migration and the labour market: lessons from 40 years of post-arrival policies in Denmark

Abstract Denmark has accepted refugees from a large variety of countries and for more than four decades. Denmark has also frequently changed policies and regulations concerning integration programmes, transfer payments, and conditions for permanent residency. Such policy variation in conjunction with excellent administrative data provides an ideal laboratory to evaluate the effects of different immigration and integration policies on the outcomes of refugee immigrants. In this article, we first describe the Danish experience with refugee immigration over the past four decades. We then review different post-arrival refugee policies and summarize studies that evaluate their effects on the labour market performance of refugees. Lastly, we discuss and contrast these findings in the context of international studies of similar policies and draw conclusions for policy.

THE INJUSTICE OF UNDER-POLICING IN AMERICA

THE INJUSTICE OF UNDER-POLICING IN AMERICA

The Effectiveness of Pay Transparency Laws

Governments around the globe have introduced various types of pay transparency laws with the aim of reducing the gender pay gap. Due to the heterogeneity of legislation and scattered academic evidence, it is difficult to draw general conclusions for policy and research. This article aims to answer whether and which pay transparency laws are effective in reducing the gender pay gap. Using a systematic review, it first provides a complete collection of pay transparency laws in the US and Europe. The laws are characterized in terms of whether they influence 1) pay communication transparency 2) pay outcome transparency, or 3) pay processes transparency. Second, the article systematically reviews the empirical literature evaluating pay transparency interventions and map these studies to the conceptual framework. The empirical research shows that pay transparency laws can be effective in reducing the gender pay gap. However, effectiveness depends on the type of pay transparency. Evidence on the underlying mechanisms is discussed. In addition, the article identifies laws that have not yet been researched and highlights laws that should be studied with particular urgency from a theoretical perspective.

A monetary Keynesian view of modern monetary theory

Both monetary Keynesian theory and modern monetary theory (MMT) place money at the center of the analysis and highlight the important economic role of the state in a monetary market economy in which full employment is neither the norm nor the center of gravity. Whereas monetary Keynesian theory implies that economic policy is considerably constrained by market forces, MMT considers economic policy to be all-powerful and able to ensure full employment. Polarizing MMT policy conclusions such as the proposition that modern states have no budget constraint result from MMT-ers’ neglect of crucial elements of the Keynesian framework. As Hajo Riese tirelessly argued, monetary financing of budget deficits has limits even in the presence of unemployment because the stability of a monetary market economy hinges on the scarcity of its money.

Regional Entrepreneurial Ecosystems: The case of the Basque Country

By using the concept of regional entrepreneurial ecosystems, the article analyses the case of the Basque Country (Spain). Specifically, the paper focuses on the analysis of two ecosystems: machine tool and smart mobility. While the former serves as a reference of a consolidated ecosystem, the latter represents an incipient and emerging activity in the region. Based on qualitative methodologies and stakeholder’s participation it presents a description of each of the ecosystems described focusing on socio-economic aspects in a context of digital transformation. In addition, the article includes some policy implications and conclusions that can contribute to ecosystem development. In particular, the ability to extract knowledge that can be transferred from one ecosystem to another.

OFDI activity and urban-regional development cycles: a co-evolutionary perspective

PurposeWhile conventional views of foreign investment activity primarily relate to efficiency-seeking investments, the authors argue that most other outward foreign direct investments (OFDIs) likely have positive effects on income development in the home region. Data on the US urban system not only illustrates this but also shows that this impact is not equal in all city-regions. The purpose of this paper is to develop an explanation as to why high- and low-income cities are associated with self-reinforcing cycles of OFDI activity that have different home-region impacts.Design/methodology/approachConventional views assume that inward foreign direct investments (IFDIs) have a positive impact on target regions, while OFDIs are often treated as the flip side of this story, being seen as having negative effects by shifting jobs and income abroad. This paper counters this logic by developing a conceptual argument that systematically distinguishes different types of OFDIs and relates them to economic development effects in the home (investing) region.FindingsUsing a co-evolutionary conceptualization, this paper suggests that many high-income cities are characterized by a virtuous cycle of development where high, successful OFDI activity generates both positive income effects as well as incentives to engage in further OFDIs in the future, thus leading to additional income increases. In contrast, it is suggested that low-income cities are characterized by what we refer to as vicious cycles of development with low OFDI activity, few development impulses and a lack of incentives and capabilities for future investments.Originality/valueThis paper develops a counter-perspective to conventional views of OFDI activity, arguing that these investments have a positive impact on regional income levels. The authors develop a spatially sensitive explanation which acknowledges that OFDIs do not trigger a linear process but are associated with diverging inter-urban development paths and may contribute to higher levels of intra-urban inequality. From these findings, the authors derive conclusions for future research and public policy.

The 1964 US Surgeon General's report on smoking and health.

The 1964 report of the US Surgeon General on smoking and health made an authoritative case that tobacco smoking was a cause of premature deaths from lung cancer and chronic bronchitis. It justified the practice of drawing causal inferences from epidemiological studies, specified influential criteria for doing so, and made use of an early form of meta-analysis.

The Gender Gap in Income and the COVID-19 Pandemic in Ireland

The gender income gap is large and well documented in many countries. Recent research shows that it is mainly driven by differences in working patterns between men and women but also by wage differences. The tax–benefit system cushions the gender income gap by redistributing it between men and women. The COVID-19 pandemic has resulted in unprecedented levels of unemployment in 2020 in many countries, with some suggestions that men and women have been differently affected. This research investigated the effect of the COVID-19 pandemic on the gender gap in income in Ireland. By using nowcasting techniques and microsimulation, we modeled the effect of pandemic-induced employment and wage changes on the market and disposable income. We showed how the pandemic and the associated tax–benefit support could be expected to change the income gap between men and women. Policy conclusions were drawn about future redistribution between men and women.

СОЦІАЛЬНЕ СЕРЕДОВИЩЕ ФОРМУВАННЯ ЛЮДСЬКОГО КАПІТАЛУ УКРАЇНИ: АНАЛІЗ ТА ВИСНОВКИ ДЛЯ ДЕРЖАВНОЇ ПОЛІТИКИ

The purpose of the study is to analyze the social environment of Ukraine in order to identify its impact on the parameters of formation and implementation of human capital to substantiate the conclusions for public policy in terms of effective measures for its development.
 In the course of the research general scientific and special methods of synthesis and system analysis were used (to substantiate the characteristics of human capital); system analysis and theoretical generalization (to assess the state of formation and use of human capital in Ukraine); statistical analysis (to assess the factors influencing the human capital of the country); logical analysis, strategic management (to substantiate the instruments of state policy to improve the human capital of the state); system and comparative analysis (taking into account the peculiarities of human capital formation in Ukraine).
 The urgency of the problem of analyzing the social environment of the country in the context of tracking its impact on various aspects of the formation and implementation of human capital. 
 The practical significance of the research results is that the indicators of employment and income of the population of Ukraine are analyzed. Negative preconditions for the formation of human capital related to the problems of the labor market and employment have been identified. The characteristic of indicators of social security in Ukraine is given. The growth of state expenditures on social assistance, the development of social infrastructure, which ambiguously affects the strengthening of human capital of the state. The analysis of parameters of social tension in Ukraine is carried out. It is established that high levels of unemployment, crime, and morbidity are problematic aspects (in the context of human capital). Indicators of provision of the population of Ukraine with social infrastructure are analyzed. It is shown that its specific indicators are deteriorating and this is a negative factor in the context of preserving the country's human capital. Conclusions are made regarding the negative preconditions for the impact of the state of the social sphere on the formation, as well as instruments of state policy to improve human capital in Ukraine.
 The scientific novelty of the research results is the development of methodological support - SWOT-analysis of advantages and disadvantages, tools for improving human capital in the country.

HOW DO CONSUMING ALTERNATIVE ENERGY SOURCES AND REMITTANCE INFLOWS IMPACT EGYPT’S ECOLOGICAL FOOTPRINT?

This research examines how the determinants of environmental degradation -including (combustible and non-combustible) alternative energy consumption and remittance inflows- impact Egypt’s ecological footprint for the 1977-2014 period. After confirming the co-integration among the selected variables, the short-run and the long-run coefficients are estimated by the autoregressive distributed lag method. The long-term findings indicate that the environmental Kuznets curve hypothesis is not accepted for Egypt, as income has a U-shape impact on ecological footprint. Moreover, fossil-fuel consumption and financial development worsen ecological footprint in the long-run. In addition, while non-combustible alternative energy utilization does not significantly impact ecological footprint in Egypt, combustible alternative energy usage and trade globalization decrease it in the long-run. The results further reveal that remittance inflows to Egypt increase ecological footprint in both the short-run and the long-run. Pursuant to the findings, some policy conclusions and suggestions are propounded.

Public transport users' willingness-to-pay for a multi-county and multi-operator integrated ticket: Valuation and policy implications

Willingness-to-pay (WTP) is an institutionally accepted approach for deriving the monetary values of transport policy measures in many countries. Public transport (PT) service providers around the world are implementing integrated ticketing schemes to improve synergy and to remove or reduce the barriers to travelling across operators that are created by multimodal and deregulated public transport markets. Yet, users' preferences and WTP for integrated ticketing systems is mostly unexplored, leaving policymakers with little means of evaluating their potential economic benefits. Consequently, this case study was conducted to estimate PT users' WTP for multi-county and multi-operator integrated ticketing. Multinomial and mixed multinomial logit models were estimated using stated preference (SP) data, collected in relation to the Movingo multi-county and multi-operator integrated season ticket scheme in Mälardalen, Sweden. The findings showed strong evidence of users WTP for regional ticketing integration. Users' valuation of the integration is estimated to be at least 26% of the average integrated monthly ticket price. The mean WTP of non-commuting PT users' is estimated to be 42% higher than that of PT commuters. Women PT users showed less variability in their WTP compared to men. Still, the mean WTP of men is about twice as high as that of women. A higher proportion of men are willing to pay over 50% of the average integrated season ticket price to get the benefits of an intercounty integrated ticketing system. The resulting range of WTP values could be used in cost-benefit-analysis to infer policy conclusions about the value of integrated ticketing for users and society.

Impact of Cash Transfers on the Use of Oral Health Services and Oral Health Outcomes: A Systematic Review.

ABSTRACTObjective:The objective of the present study was to summarize the evidence available on the impact of cash transfers on the use of oral health services and oral health outcomes.Materials and Methods:9 databases were searched for studies on cash transfers and oral health: PubMed, Embase, The Cochrane Library, CINAHL, EconLit, Dentistry and Oral Sciences Source, Scopus, Web of Science, and LILACS. We conducted a systematic review of studies that evaluated the impact of cash transfers on the use of oral health services and other oral health outcomes.Results:Three studies with more than 13,000 participants conducted in Brazil and Argentina were included. One study from Brazil found that participants in the Bolsa Familia Program (BFP) were more likely not to use oral health services (aPR: 6.18; 95% CI: 3.07–12.45; P < 0.001) and had a higher probability of presenting dental caries (aPR: 2.00; 95% CI: 1.47–2.69) and severe caries (aRR: 1.53; 95% CI: 1.18–2.00). Another study conducted in Brazil found that the BFP was associated with fewer dental caries among those enrolled in the first 2 years of the BFP as well as after six years. On the other hand, the Argentina study found that the Universal Child Allowance program did not have a statistically significant average treatment effect (ATE = -0.05; P > 0.05) on the use of dental health services.Conclusion:There is a lack of evidence about the impact of CT on the use of oral health services and oral health outcomes. The evidence suggests that cash transfers might not have a positive impact on the use of oral health services. The results regarding the impact of receiving cash transfers on dental caries are contradictory. However, more evidence is needed to draw stronger conclusions for policy taking.Registration:The protocol was registered in PROSPERO (CRD42021268234).

Impact of Education on Poverty Alleviation in Afghanistan: An Empirical Evaluation

Afghanistan has one of the lowest education levels and where 49.6 percent of the population lives under the poverty line. Moreover, poverty in Afghanistan is concentrated in rural areas and four out of five poor people live in poverty. The East, Northeast, and West-Central regions—where almost half of the inhabitants are poor—have the lowest per capita consumption and highest likelihood of poverty. In cognizance of the vitality of Sustainable Development Goals (SDGs) and education is promulgated as the primary weapon against poverty prevalence. Hence it is crucial to seek out the effect of different levels of education on poverty in Afghanistan. This study evaluates the effect of different levels of education, experience, and gender of the employed individuals (employers, self-employed, wage earners, and unpaid family workers) as the determinants of poverty. The data is collected from the Living Conditions Survey for 2008 and 2019. A logistic regression model is estimated based on data, with the probability of an individual being poor as the dependent variable and a set of educational levels, experience, and gender as explanatory variables. Further, the study identifies deficiencies related to basic education in poverty reduction and comes up with some policy conclusions that can be taken into account in the planning of effective basic education for poverty reduction.

The interpretation and use of social and emotional learning in British primary schools

ABSTRACT The promotion of social and emotional well-being and positive mental-health has become a key focus for governments across the world, with schools seen as prime locations to facilitate improvements in these areas for children. In response, schools have implemented a wide-ranging package of support designed to target well-being and mental health, including ‘Social and Emotional Learning’ (SEL). Although research points to complexities with the implementation of SEL, little is known about the influences behind how it is interpreted by schools and their staff. This paper, drawing on data from 24 individual interviews and ten focus groups with staff members working across primary schools located in North West England, offers insights into this research gap. The main finding of the study is that individual staff members framed, enacted and valued social, emotional and behavioural work in response to their own roles and working environment, and that schools utilised SEL in light of their own specific needs and priorities. Main conclusions for policy and practice are that ‘emotions’ should be prioritised as the basis of schooling to establish and maintain an ethos where SEL is valued and utilised effectively.

Considerations Around Coding the Membership Probability Function in a Latent Class Analysis: Renewed Insights.

This technical note discusses how dummy and effects coding of categorical respondent characteristics in a class membership probability function should be interpreted by researchers employing a latent class analysis to explore preference heterogeneity in a discrete-choice experiment. Previous work highlighted issues arising from such coding when interpreting an alternative specific constant that represents an opt-out alternative or current situation in a discrete-choice experiment and did not fully address how this coding impacts the interpretation of parameters resulting from the membership probability function in a latent class analysis. Although latent class membership probability could be predicted separately for each respondent or subgroup of respondents, conclusions are often drawn directly from the model estimation using the full sample, which requires correctly interpreting the estimated parameters. In these cases, the misinterpretation that may arise if the problem is ignored could impact the policy conclusions and recommendations drawn based on the discrete-choice experiment results. This note provides an example comparing dummy and effects coding used to model respondent characteristics in the membership probability function in a discrete-choice experiment aimed to explore preferences for the treatment of chronic pain in the USA.

Mobility values in a finite world: pathways beyond austerianism?

ABSTRACT When considering the environmental and economic crisis humanity is likely to experience in the near future, it becomes inescapable to ponder the values guiding decision-making and policy-making processes concerned with mobility and transport futures. Existing suggestions tend to centre around what this article denominates mobility austerianism. This is a frugal transport-related societal configuration in which mobility is heavily restricted based on a strict perception of environmental sustainability in terms of radical protection of the environment at the cost of human comfort. Trip purposes, in this context, should be as limited as possible to the satisfaction of primary needs, emphasizing sufficiency values. This research explores the desirability of mobility austerianism by engaging transport and mobility experts in mixed methods. The results provide a picture of the mobility values the experts endorse. They welcome a certain level of mobility austerianism regarding transport means. However, they remain sceptical about embracing mobility austerianism regarding trip purposes. The ramifications of these conclusions for transport policy are critically discussed, and the outlines of possible future pathways – some more and some less focused on mobility austerianism – are explored.

REACH authorisation and the substitution of hazardous chemicals: The case of trichloroethylene

Through a survey with European companies and expert interviews we study how REACH authorisation affects the phase-out of hazardous chemicals focusing on trichloroethylene, a well-studied solvent used in metal parts cleaning. We find that most of the firms have substituted trichloroethylene by perchloroethylene, which has similar chemical characteristics. This allows them to continue to use the same machines and routines at low costs. Although perchloroethylene is only classified as a suspected rather than a proven carcinogenic substance in Europe, the “improvement” as the result of much regulatory effort must be considered fairly limited, particularly in the light of less hazardous alternatives being used on the market for a long time. Our survey shows that the REACH authorisation process has some effect. Many firms cited as their main reason for substitution that they wanted to avoid the renewed application process. Still, the fact that many firms report using old machines reinforces the impression that some firms are not feeling enough pressure to modify routines and engage in a more fundamental substitution process.The results illustrate the limited effectiveness of a substance by substance approach in chemical risk management. When companies can substitute chemicals of concern to substances with similar chemical characteristics, the health and environmental objectives of chemical regulation are not achieved. An important policy conclusion is that additional incentives need to be introduced in order to realize the ambition of a non-toxic environment in the European Chemicals Strategy for Sustainability. Increased use of measures targeting broader groups of structurally similar hazardous chemicals, in combination with fees that incentivize substitution, are promising avenues for a more sustainable European chemicals strategy.

New regional industrial path development and innovation networks in times of economic crisis

ABSTRACT This paper presents novel research on how exogenous shocks and economic crises affect innovation, knowledge networks, and new path development in regions. Conceptually, we take a regional innovation systems perspective which views new path development as the outcome of innovation and knowledge exchange between firms and other actors, facilitated by a common institutional framework. Empirically, we draw on interviews and network data from the oil and gas industry in southern Norway. Following a long period of prosperity, the industry was hit by the oil price shock in 2014 and entered an economic crisis. The findings suggest that the shock triggered the firms to commit even more forcefully to innovation and to expand their knowledge networks geographically. To cope with the crisis, they applied a variety of strategies, which can be associated with different forms of path development. We draw conclusions for innovation policy in the context of exogenous shocks and crises.

Electric vehicle development in Pakistan: Predicting consumer purchase intention

Pakistan's government has been pushing for electric vehicles adoption to decrease energy consumption and pollution. Acceptance of large numbers of electric vehicles will undoubtedly help to ease important issues such as carbon pollution and fuel reliance and to improve economic success. Pakistan is now considering switching from non-Electric vehicle to Electric vehicle (EVs) in spite of numerous cross-sectoral and multifaceted roadblocks. The theory of planned behavior (TPB) model was utilized in this study to construct a model of purchase intention impact mechanism for electric vehicles (EVs). It considered consumer attitude (AT) and subjective norms (SN), cognitive states (CS), product perception (PA), perceived behavioral control (PBC), non-monetary incentive policy (NMIP), as well as monetary policy (MIP). In Pakistan, a questionnaire was administered to potential customers. A total 511 valid survey responses were collected. The factors affecting EV buying intent were examined by Structural equation modeling (SEM) using SPSS AMOS. According to the results no factors tested negative, most of the factors were significant beneficial outcome on consumers' intents to buy electric vehicles (EVs). These findings were discussed with policy recommendations and conclusion.