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11. Resilience or Relocation? Expectations and Reality in the City of London since the Brexit Referendum.

Author:
Manolis Kalaitzake
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The fate of British finance following the Brexit referendum revolves around the “resilience or relocation” debate: will the City of London continue to thrive as the world’s leading financial centre or will the bulk of its activity move to rival hubs after departure from EU trading arrangements? Despite extensive commentary, there remains no systematic analysis of this question since the Leave vote. This paper addresses that lacuna by evaluating the empirical evidence concerning jobs, investments, and share of key trading markets (between June 2016 and May 2020). Contrary to widely held expectations, the evidence suggests that the City has been remarkably resilient. Brexit has had no significant impact on jobs and London has consolidated its position as the chief location for financial FDI, FinTech funding, and attracting new firms. Most unexpectedly, the City has increased its dominance in major infrastructure markets such as (euro-denominated) clearing, derivatives, and foreign exchange – although it has lost out in the handling of European repurchase agreements. Based upon this evidence, the paper argues that the UK’s negotiating position is stronger than typically recognised, and outlines the competitive ramifications for both the UK and EU financial sector.
Topic:
Regional Cooperation, European Union, Brexit, Urban, and Local
Political Geography:
United Kingdom and Europe

12. Normative Social Influence on Meat Consumption

Author:
Laura Einhorn
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Studies from various disciplines show that including more meat-free dishes in our diets benefits our environment and our health while also promoting animal welfare. However, little is known about what encourages the adoption of more meat-free meal choices into our everyday diets. This paper focuses on the role of normative social influence on food choice as a potential answer to this question. In a real-world setting and based on the combination of a field and a survey experiment in seven German university dining halls, I analyze the impact of social norms on meat consumption in a single meal choice situation. I distinguish between descriptive and injunctive norms as well as between remote and direct norms. In a first step, descriptive and injunctive remote norm message interventions promoting a vegetarian diet were implemented. In a second step, the influence of direct social norms, i.e., the influence of vegetarian peers on non-vegetarians’ meal choice, was assessed. I find that neither type of remote eating norm influences food choice, while direct normative influence leads to con- vergence towards vegetarian meal choices in a university setting. I summarize the implica- tions of these findings, discuss their limitations, and point to directions for future research.
Topic:
Food, Culture, Academia, and Dietary Habits
Political Geography:
Europe, Germany, and Central Europe

13. Not All Firms Are Created Equal SMEs and Vocational Training in the UK, Italy, and Germany

Author:
Chiara Benassi, Niccolò Durazzi, and Johann Fortwengel
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Why do skill formation systems put SMEs at greater disadvantage in some countries than others vis-à-vis large employers? By comparing vocational education and training (VET) institutions and their differential effect on firms of different sizes across three countries (UK, Italy, and Germany), we show that the design of VET has profound implications for shap- ing the ability of SMEs to use institutions as resources. In particular, quasi-market institu- tions in the UK amplify SMEs’ disadvantage, while non-market coordinating institutions in Italy and Germany narrow the gap between SMEs and large employers. By unpacking the comparative disadvantage of SMEs, we offer important nuances to the argument that institutions help firms coordinate their business activities in different varieties of capitalism.
Topic:
Political Economy, Capitalism, and Vocational Training
Political Geography:
United Kingdom, Europe, Germany, and Italy

14. Ownership in the Electricity Market Property, the Firm, and the Climate Crisis

Author:
Gregory Ferguson-Cradler
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Electricity is a key area in climate mitigation. The sector needs to significantly expand while transitioning to renewable production, all in an extremely short timeframe. This paper fo- cuses on ownership and control in the electricity sector in an era of climate change. Bor- rowing substantially from classical American Institutionalism, heterodox theories and his- tories of the firm, and legal institutionalism, this paper discusses the historically constituted nature of the categories of property, capital, and the firm and how these literatures provide helpful frameworks for analyzing the recent history and possible futures of electricity sec- tors. A short discussion of the recent history of the German electricity sector, particularly the large utility RWE, will briefly illustrate the approach. Climate change mitigation will require revised notions of ownership and an updated theory of the firm, property, and cor- porate governance for the Anthropocene.
Topic:
Climate Change, Energy Policy, Governance, and Electricity
Political Geography:
Europe, Germany, and Central Europe

15. Housing and Voting in Germany Multi-Level Evidence for the Association between House Prices and Housing Tenure and Party Outcomes, 1980–2017

Author:
Paul Beckman, Barbara Fulda, and Sebastian Kohl
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Traditional predictors of election outcomes in Germany are increasingly losing their explana- tory power. Rather than new cultural divides, this paper introduces the idea of housing cleav- ages, i.e., homeownership versus tenancy and high-price versus low-price areas, drawing on macro data for electoral districts and urban neighborhoods from the last three elections (2009– 2017) in combination with Immoscout24 ad price data and microdata from the ALLBUS sur- vey (1980–2016). Although, due to its low homeownership rate and conservative house price development, Germany represents a least-likely case for housing to be of importance, we find housing effects beyond traditional predictors. Generally, we find that high house prices, house price increases, and homeownership are positively associated with voting for center-right par- ties and voter turnout, while social tenancy is associated with votes for the left, but these effects weaken over time due to embourgeoisement effects. Beyond this expected left-right distinction between tenants and wealthier homeowners, we also find outliers along two other dimensions. First, there are center-periphery effects that housing can better capture than simple geographical divisions; second, house prices contain a populist dimension, for example when skyrocketing rents increase votes for the urban left or regions where house prices lag behind benefit the AfD. The paper argues against the more causal self-interest and socialization theories of the influence of housing on voting and instead suggests considering housing as an important socioeconomic proxy to explain political outcomes.
Topic:
Elections, Voting, Homeownership, and Housing
Political Geography:
Europe, Germany, and Central Europe

16. Causal Mechanism and Explanation in Social Science

Author:
Renate Mayntz
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
In the social sciences, the development of a specific social event or structure is often ex- plained by a statistical correlation between an independent variable and a variable assumed to be dependent upon it. This mode of explanation is contested by a methodology of causal reconstruction that operates with the concept of mechanisms. A mechanism is a process in which a set of linked steps leads from initial conditions to an outcome or effect. Mechanisms are general concepts, subjecting individual cases to a general category. Except for the litera- ture dealing specifically with the concept, the term “mechanism” is often used without defi- nition of its substantive content; there is no agreement with respect to the unique or plural character of the initial conditions, nor to the structure of the causal path leading to a specific outcome. Nevertheless, mechanisms have played a crucial role in detailed causal analysis of complex historical events, such as the financial crisis of 2008 and German unification of 1989.
Topic:
Cold War, Nationalism, Financial Crisis, and Unification
Political Geography:
Europe, Germany, West Germany, Central Europe, and East Germany

17. Has the “External Constraint” Contributed to Italy’s Stagnation? A Critical Event Analysis

Author:
Lucio Baccaro and Massimo D'Antoni
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Has the strategy of the “external constraint” (voluntarily limiting the country’s policy-mak- ing discretion by tying it to the European mast) contributed to Italy’s stagnation over the past twenty-five years? The existing literature is divided on this question. The dominant in- terpretation is that Italy’s stagnation is due to insufficient liberalization, and that the exter- nal constraint has had no negative and even a positive influence. An alternative interpreta- tion emphasizes the demand compression and supply-side effects of the external constraint. Based on three case studies of public debt management, privatization, and labor market policy, this paper reconstructs the process by which the external constraint has affected out- comes. It argues that it has had a negative impact, but more as a necessary condition than as a sufficient one. In other words, it would probably have been possible to manage the exter- nal constraint differently to produce better outcomes, but without the external constraint, the stagnation would likely have been less deep.
Topic:
Political Economy, European Union, Economic Growth, and Liberalism
Political Geography:
Europe, Italy, and Southern Europe

18. Is the Euro up for Grabs? Evidence from a Survey Experiment

Author:
Lucio Baccaro, Bjorn Bremer, and Erik Neimanns
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The COVID-19 pandemic may lead to a resurgence of the euro crisis. In this context, Italy seems particularly vulnerable: support for the euro is lower than in most other eurozone countries, and a possible exit could have serious consequences for the common currency. Based on a novel survey experiment, this paper shows that the pro-euro coalition is fragile in Italy and preferences are malleable. They are heavily dependent on the perceived costs of continued membership, as a majority of Italians would opt for Italexit rather than accepting a bailout plan requiring the implementation of austerity policies. Individuals who feel they have not benefited from the euro are most likely to support exit when faced with the pros- pect of austerity. This suggests that, differently from Greece, where voters were determined to remain in the euro at all costs, the pro-euro coalition may crumble if Italy is exposed to harsh conditionality.
Topic:
European Union, Eurozone, Voting, and Currency
Political Geography:
Europe, Italy, and Southern Europe

19. The German Undervaluation Regime under Bretton Woods How Germany Became the Nightmare of the World Economy

Author:
Martin Höpner
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Germany is an undervaluation regime, a regime that steers economic behavior towards deterioration of the real exchange rate and thereby towards export surpluses. This regime has brought the eurozone to the brink of collapse. But it is much older than the euro. It was established during the Bretton Woods years and has survived all subsequent European currency orders. The regime operates in two steps: competitive disinflation against trading partners; and resistance against correcting revaluations. The Bretton Woods order provid- ed perfect conditions for the establishment and perpetuation of the regime: it was flexible enough for sufficient macroeconomic policy autonomy to bring about differential inflation rates, and sticky enough to delay and minimize revaluations.
Topic:
Political Economy, Regional Cooperation, Capitalism, and Inflation
Political Geography:
Europe, Germany, and Central Europe

20. Is There a Motherhood Penalty in Academia? The Gendered Effect of Children on Academic Publications

Author:
Mark Lutter and Martin Schroder
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Based on data that tracks CV and publication records as well as survey information from sociologists in German academia, we examine the effects of parenthood on the publication output of male and female academics. Results indicate that having children leads to a sig- nificant decline in the number of publications by women, while not affecting the number of publications by men. We also find that the gendered effect of children on productivity hardly mitigates differences in publication output between men and women, as women still publish about 20 percent less than men after controlling for the adverse effects of chil- dren on productivity. We further find that the gendered effect of childbearing depends partly on prior levels of women’s academic achievements, which suggests mechanisms of performance-driven self-selection. Lower-performing women tend to suffer a stronger motherhood penalty, while the publication output of more successful women (who have been granted academic awards) is not reduced through childbirth. The results indicate that women are better at managing the “double burden” of parenthood and career if external, award-giving committees have bestowed prestige upon them and indicated their potential for a scientific career. Overall, these findings contribute to a better understanding of how to reduce the adverse effect of children on female publication output.
Topic:
Gender Issues, Children, Women, Feminism, and Academia
Political Geography:
Europe, Germany, and Central Europe