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111. Age and Productivity. Human Capital Accumulation and Depreciation

Author:
Anna Ruzik-Sierdzińska, Claudia Villosio, Maciej Lis, Michele Belloni, and Monika Potoczna
Publication Date:
11-2013
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
This report, titled "Age and Productivity. Human Capital Accumulation and Depreciation", was released within a project NEUJOBS- “The Impact of Service Sector Innovation and Internationalisation on Growth and Productivity”, funded by the European Commission, Research Directorate General as part of the 7th Framework Programme. The report focuses on links between age, productivity and lifelong learning. Various data sources (EU-SILC, LFS, Structure of Earnings Survey, SHARE, ELSA, SHARELIFE) and methodological approaches were used in this report. The analysis identifies clusters of countries with common characteristics of age-earnings profiles (for certain groups of employees) and allows for an explanation of those differences. Some differences can be attributed to the share of sectors, education types, and occupations in country-specific employment. Others are due to labour market institutions and the (dis)incentives to work at older ages provided by social security systems. Additionally, the dynamics of earnings after age 50 differ less between educational and occupational groups than at earlier ages. The authors show that the dynamics of average wages are strongly influenced by the timing of entering and leaving labour market. An estimation of the impact of LLL on productivity (measuredby earnings) at older ages shows that for employees aged 50+, participation in training increases wages in the short-term.
Topic:
Demographics, Economics, Human Capital, Aging, Labor Market, and Capital
Political Geography:
Europe

112. The impact of institutional and Socio-Ecological Drivers on Activity at Older Ages

Author:
Aart Jan Riekhoff, Agnieszka Kaminska, Izabela Styczynska, and Maciej Lis
Publication Date:
11-2013
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
In the report, the authors present an insight of the socio-economic drivers of economic and noneconomic activity of persons 50+, as well as their ability to adopt to SET. Not only the labour market participation, but also social engagement, beliefs, education, religious activities and housework are studied. With the use of European Social Survey data they investigate the general level of the activity among people aged 50+ in Europe as well as the relation between various aspects of activity and general labour market performance. They obtain mixed results on the concomitance of non-market and labour-market activities. At the same time they check the role of personal traits as well as pull and push factors on prematurely leaving labour market in European countries. The differences among countries in terms of the results are confronted with the institutional characteristics of the countries. Finally, selected case studies of successful activation policies are presented.
Topic:
Social Policy, Social Services, Private Sector, Labor Market, and Productivity
Political Geography:
Europe

113. Study to quantify and analyse the VAT Gap in the EU-27 Member States

Author:
Leon Bettendorf, Luca Barbone, Michael Smart, Mikhail Bonch-Osmolovsky, Misha V. Belkindas, and Richard M. Bird
Publication Date:
12-2013
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
This report presents and discusses the findings of the “Study to quantify and analyse the VAT Gap in the EU-27 Member States”, conducted by CASE and CPB. The main aim of the study was to help better understand the recent trends in the field of VAT fraud and analyse determinants of VAT Gaps using a number of econometric techniques. The authors discuss the structure of the VAT systems in the EU, the broad trends in the EU economy over the period 2000-2011, and review the behaviour of VAT revenues, as well as the changes in VAT rates and exemptions that have occurred as a response to economic events or policy decisions. They pay particular attention to the events following the onset of the economic crisis in 2008. Moreover, they discuss the definition of VAT Gaps that has been used in this study, as well as other alternatives existing in the literature. They review possible shortcomings associated with different concepts. Subsequently, they present the results of the estimations for EU-26 countries for the period 2000-2011. The estimates are first discussed for the EU-26 as a whole, and then for each country individually. Finally, an econometric analysis of the determinants of VAT Gaps for the period under consideration is provided.
Topic:
European Union, Economic Growth, Fiscal Policy, VAT, and Financial Sector
Political Geography:
Europe

114. The Failed Political Economy of the Euro Crisis

Author:
Anders Åslund
Publication Date:
01-2012
Content Type:
Working Paper
Institution:
Center for Social and Economic Research - CASE
Abstract:
The euro crisis has been extensively discussed in terms of economics, finance, political intrigues, and European Institutions, but a key aspect—the political economy of the crisis—has received little attention. Politicians and social scientists from emerging economies, especially Eastern Europe, look with amazement at this oversight.
Topic:
Political Economy, Financial Crisis, and Macroeconomics
Political Geography:
Europe

115. Fiscal and Monetary Policy Determinants of the Eurozone Crisis and its Resolution

Author:
Marek Dabrowski
Publication Date:
08-2012
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
Unlike the crisis years of 2007-2009 (when the insolvency of large banks was a major problem), the current round of the global financial crisis has fiscal origins. Almost all developed countries suffer from an excessive public debt burden that has been built up over the last two decades or more. The financial crisis caused a further deterioration of government accounts as a result of ill-tailored countercyclical fiscal response and, in some cases, a costly financial sector rescue. All excessively indebted countries must conduct fiscal adjustment, even if this involves economic and political costs in terms of lower output and higher unemployment. Central banks can reduce these costs through accommodative monetary policies but without compromising their anti-inflationary missions and institutional independence. The ECB is additionally constrained by its institutional status which is based on a delicate cross-country political consensus. Excessive ECB involvement in quasi-fiscal rescue operations can undermine this consensus and lead to a disintegration of the Eurozone. There are also strong arguments in favor of strengthening fiscal and banking integration within the EU, especially the fiscal discipline mechanism at national levels, and building the EU rescue capacity in respect to sovereigns and banks based on strong policy conditionality.
Topic:
Financial Crisis, European Union, and Sovereign Debt
Political Geography:
Europe

116. Determinants of Household Demand for Services - Formal Versus Informal Sector

Author:
Izabela Marcinkowska
Publication Date:
08-2012
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
This paper addresses the issue of household demand for services in Poland when informal sector is taken into consideration. The aim of the study is threefold: (i) to investigate the factors influencing households expenses for services, (ii) to find the determinants of households’ tax strategy (choice between acquiring services on regular labour market or not), (iii) to investigate the differences between the factors that influence the expenses for formal versus informal services. Two-step Heckman selection model is used to account for the selection into buying household services. Lee’s (1983) procedure is adopted to control for the selection into the particular choice of tax strategy when purchasing household services. The decision whether to buy household services and whether formally or informally is modelled as a sequential choice and estimated by bivariate probit with selection. An important novel feature of the model used is the inclusion of variables that capture social norms and personal attitudes toward tax evasion. The study concludes that factors influencing expenses for services are positively related to financial situation of households, education and age of household head. The probability of avoiding taxes is higher for lower income households, households with more than one member and for those where a positive attitude toward informal employment is expressed. The impact of determinants of expenses for formal and informal services separately is comparable. Only household structure has the opposite effect on expenses for formal services versus informal ones.
Topic:
Employment, Social Policy, Labor Market, and Informal Economy
Political Geography:
Europe and Poland

117. Private Sector Development in the South and East Mediterranean Region

Author:
Mehdi Safavi and Richard Woodward
Publication Date:
10-2012
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
This report is concerned with the analysis of privatization and private sector development for the eastern and southern Mediterranean countries partnered with the European Union and collectively known as MED-11. Noting that the analysis applies to the situation prior to the dislocations of the Arab Spring, we review the shift in the relative shares of the public and private sectors in these countries, as well as the business climate affecting the development of the private sector, examine a number of cultural factors that may influence the development of the private sector, and discuss some alternative scenarios for future developments. In the last 20 years, efforts have been made in all countries of the MED-11 to encourage private sector development and, to a greater or lesser extent, privatization of stateowned assets. However, there is a great deal of differentiation among the countries in the group. In the MED-11, Israel has not only the most business-friendly policy environment but also the most developed private sector, accounting for almost 80% of employment. The other countries of the region can be divided into two groups: one, including Algeria, Libya, and Syria, where reforms promoting privatization and private sector development have been very limited, and the rest, in which they have been much more extensive (the Palestine Authority is, for obvious reasons, a rather special case). A generally poor business environment makes for a large informal sector in almost every country in the region; however, generally speaking, we do not find the cultural factors we examine to be hostile to private sector development. Optimistic, reference and pessimistic scenarios are discussed; which of these is realized in any particular MED-11 country will depend greatly on the direction of change following the events of 2011’s Arab Spring.
Topic:
Development, Privatization, Economy, Innovation, and Private Sector
Political Geography:
Europe and Mediterranean

118. Innovation Systems and Knowledge-Intensive Enterpreneurship: a Country Case Study of Poland

Author:
Elzbieta Wojnicka, Richard Woodward, and Wojciech Pander
Publication Date:
10-2012
Content Type:
Working Paper
Institution:
Center for Social and Economic Research - CASE
Abstract:
This study surveys the current state of affairs in Poland with regard to the development of knowledge-intensive entrepreneurship (KIE), or new firm creation in industries considered to be science-based or to use research and development (R&D) intensively. We place KIE in Poland in the larger institutional context, outlining the key features of the country’s National Innovation System, and then focus on KIE itself. Our findings are perhaps more optimistic than many previous studies of knowledge-based economy development in Poland. We observe significant progress due to Polish access to the European Union. The frequency with which universities are playing a significant role as partners for firms in the innovation process has increased significantly; moreover, we observe a significant degree of internationalization of innovation-related cooperation. Another optimistic development is that the level of activity of venture capitalists seems to be fairly high in Poland considering the relatively low degree of development of capital markets offering VC investors exit opportunities. Moreover, after almost two decades of decline in the share of R&D spending in GDP, there are signs that this is beginning to rise, and that businesses are beginning to spend more on R&D. While demand-side problems continue to be significant barriers for the development of KIE, due to the relatively low level of education and GDP per capita in the country, the trends here are optimistic, with high rates of economic growth and improvements in the level of education of younger generations. Significant improvement is still needed in the area of intellectual property protection.
Topic:
Development, Entrepreneurship, Innovation, and Knowledge Economy
Political Geography:
Europe and Poland

119. Health Status, Functional Limitations and Disability: Changes in Poland

Author:
Agnieszka Sowa-Kofta
Publication Date:
11-2012
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
The social changes in Poland over the last two decades have had an impact on many dimensions of life, including on important elements of human capital, such as health and functional and instrumental daily activities. This article contains an overview of the available data and indicators on health status, morbidity and disability. It presents the changes in the level of functional and legal disability and aims to show the reasons for these trends. Functional disability is highlighted as one of the major challenges for social and health policy in the next few decades in the context of dynamic aging.
Topic:
Health Care Policy, Social Policy, Disability, Public Health, and Labor Market
Political Geography:
Europe and Poland

120. Innovation Strategies and Productivity in the Polish Services Sector in the light of CIS 2008

Author:
Krzysztof Szczygielski and Wojciech Grabowski
Publication Date:
12-2012
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
Industry - and firm-level research into both innovations and productivity has long been limited to manufacturing. With this paper, we aim to contribute to the stream of literature that aims at extending the scope of such investigations to the services industry. To this end we analyze the innovation strategies in several service sectors in Poland in 2008 and examine their relationship to productivity. Our results show that service firms differ considerably in their innovation strategies, but that most of those strategies lead to productivity gains.
Topic:
Development, Innovation, Private Sector, and Knowledge Economy
Political Geography:
Europe and Poland