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Patrick Puhani
Former Member
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PublicationTaxation and Internal Migration - Evidence from the Swiss Census using Community-Level Variation in Income Tax RatesWe investigate the relationship between income tax rate variation and internal migration for the unique case of Switzerland, whose system of determining tax rates primarily at the community level results in enough variation to permit analysis of their influence on migration. Specifically, using Swiss census data, we analyze migratory responses to tax rate variations for various groups defined by age, education, and nationality/residence permit. The results suggest that young Swiss college graduates are most sensitive to tax rate differences, but the estimated effects are not large enough to offset the revenue-increasing effect of a rise in tax rate. The migratory responses of foreigners and other age-education groups are even smaller, and reverse causation seems negligible.Type: journal articleJournal: Journal of Regional ScienceVolume: 47Issue: 4
Scopus© Citations 43 -
PublicationDeveloping an immigration policy for Germany on the basis of a nonparametric labor market classificationBased on a nonparametrically estimated model of labor market classifications, this paper makes suggestions for immigration policy using data from western Germany in the 1990s. It is demonstrated that nonparametric regression is feasible in higher dimensions with only a few thousand observations. In sum, labor markets able to absorb immigrants are characterized by above average age and by professional occupations. On the other hand, labor markets for young workers in service occupations are identified to exhibit rising unemployment due to wage rigidities and are therefore not recommended for immigration. This raises a potential conflict between financing Germany's ailing social security system and protecting decreasing or rigid labor markets by immigration control. Download Internet Companion Paper: (pdf, 1814 kb)Type: journal articleJournal: Allgemeines Statistisches ArchivVolume: 88Issue: 1
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PublicationA Note on Changes in the Earnings and Unemployment Structures in Spain: Evidence from the Luxembourg Income Studynot available in German This note tests whether the extraordinary rise in Spanish unemployment in the 1980s can be traced back to rigidities in the earnings structure in the face of relative net demand shocks against the unskilled (this claim is also known as the ‘Krugman hypothesis'). I can establish that youth joblessness is key to the Spanish unemployment problem, but sampling procedures in the data set make it impossible to track the youth unemployment problem across time in a satisfactory way. Even though high youth unemployment is consistent with the Krugman hypothesis, substantial skill upgrading of the Spanish labour force in the 1980s explains why the low education groups did not experience an increase in relative unemployment.Type: journal articleJournal: CESifo economic studiesIssue: 50
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PublicationWhat Happened to Wage and Non-Employment Structures During the 'Dutch Employment Miracle'?Not available in German The Netherlands have experienced an employment miracle since the 1980s. This note investigates what happened to the wage, unemployment, and non-employment structures between 1988 and 1998, when both unemployment and non-employment rates decreased markedly. Surprisingly, I find no significant changes in the wage structures, although there clearly was wage moderation on average. Although there have also been virtually no changes in the unemployment structure, the relative non-employment of older workers (due to incentives to retire) and men increased. Whereas supply effects and early retirement schemes can explain the constancy of the returns to age, the lack of an increase in the returns to education remains a puzzle in the face of well-documented skill-biased technological change in other major industrialised countries. Download Paper: (pdf, 368 kb)Type: journal articleJournal: Applied Economics QuarterlyVolume: 50Issue: 1
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PublicationSubject of degree and the gender wage differential: evidence from the UK and GermanyWe show that controlling for subject of degree explains a significant part of the male/female gender wage differential amongst graduates. Using data from the labour force surveys of the United Kingdom and Germany, we find similar results in these two countries: subject of degree explains about 2-4 percent higher wages of male over female graduates after controlling for age, industry, region, part-time and public sector employment. This is a significant part (between 9 to 19 percent) of the overall male/female gender wage gap, and an even larger amount of the part explained by factors entered into wage equations (at around 20 to 29 percent of the explained component).Type: journal articleJournal: Economics LettersVolume: 79Issue: 3
Scopus© Citations 112 -
PublicationActive labour market policy and employment flows: Evidence from Polish regional dataI analyse Polish active labour market policy programmes (ALMP) from a macroeconomic (regional) point of view. The effects of training programmes on the outflows from unemployment into employment and the effects of all ALMP programmes on the outflows from employment into unemployment (to identify displacement effects) are estimated. The empirical evidence gives no support to the view that public training programmes can be used to reduce unemployment, and there is no robust evidence for displacement effects by any ALMP programme. The result that start-up loans can reduce flows from employment into unemployment is only weakly significant.Type: journal articleJournal: International Journal of ManpowerVolume: 24Issue: 8
Scopus© Citations 5 -
PublicationRelative Demand Shocks and Relative Wage Rigidities During the Rise and Fall of Swiss UnemploymentLittle is known on the existence of negative relative demand shocks against low-skilled workers on a ‘US-style' deregulated labour market with a ‘German-style' vocational (apprenticeship) education system. Switzerland provides an appealing testing ground to investigate this question. Traditionally a ‘zero unemployment' economy, Switzerland has seen an unprecedented rise in joblessness in the 1990s, although unemployment fell again to a rather low level after 1997. This paper tests whether Switzerland experienced a negative relative demand shock against the low skilled during this period and whether this shock resulted in growing wage dispersion between education groups (like in the US) or in growing unemployment (like in continental Europe). It turns out that only workers with an educational level below apprenticeship were affected by a negative relative demand shock, which speaks in favour of the German-style vocational education system. The Swiss wage structure, however, did not react to the relative demand shock against low-skilled workers without apprenticeship, which resulted in higher relative unemployment for this group. Download Discussion Paper Version: (pdf, 298 kb)Type: journal articleJournal: KyklosVolume: 56Issue: 4
Scopus© Citations 2 -
PublicationAdvantage through Trainnig? A Microeconometric Evaluation of the Employment Effects of Training and Job Subsidy ProgrammesWe estimate the employment effects of training, intervention works (subsidised employment), and public works programmes in Poland. The analysis is based on retrospective monthly calendar information on the labour force state and active labour market programme (ALMP) participation between January 1992 and August 1996. The data are obtained from the Polish Labour Force Survey of August 1996 and its Supplement on Labour Market Policies. Because there is no general agreement on the appropriate evaluation methodology when working with non-experimental data, we use two widely applied approaches to identify causal effects. First, non-parametric estimates of the programme effects are obtained on the basis of matched samples. Second, we use traditional econometric modelling in the form of duration models with unobserved individual heterogeneity. We find that training improves the employment opportunities of both men and women, whereas intervention and public works do not: intervention works prolong unemployment for both genders as do public works for men. The number of observations on women in public works is too small to make a statistically safe statement. In general, all ALMP effects are larger in absolute size for men than for women. Frühere Version: Puhani, Patrick (2000), Advantage through Trainnig? A Microeconometric Evaluation of the Employment Effects of Active Labour Market Programmes in Poland, CEPR Discussion Paper, London; auch erschienen als: ZEW Discussion Paper 98-25, MannheimType: journal articleJournal: LabourVolume: 16Issue: 3
Scopus© Citations 6 -
PublicationRelative Wage and Unemployment Changes in Poland: Microeconometric EvidenceWe estimate changes in the Polish wage and unemployment structures between the years 1994 and 1998 in order to identify labour market characteristics associated with increasing and decreasing relative demand, as well as relative wage rigidities. The evidence shows that relative demand for workers with a low level of education decreased. Whereas relative wages for workers with basic vocational education also fell in this situation, relative wages of workers with only primary education did not, pointing to a relative wage rigidity for this group which faced an above-average unemployment risk throughout the observation period. Our results indicate that rather than just concentrating on average (macroeconomic) wage developments, collective wage bargaining institutions should consider microeconometric evidence which detects rigidities in the wage structure when setting European-style fixed pay scales by age, education, and region. Frühere Version: Puhani, Patrick (2000), On the Identification of Relative Wage Rigidity Dynamics. A Proposal for a Methodology on Cross-Section Data and Empirical Evidence for Poland in Transition, Diskussionspapier 2000-22, Volkswirtschaftliche Abteilung, Universität St. Gallen, auch erschienen als CEPR Discussion Paper 2670, London, IZA Discussion Paper 226, Bonn, ZEW Discussion Paper 0056, Mannheim, und The William Davidson Institute Working Paper 343. Download Internet-Appendix: (excel, 114 kb)Type: journal articleJournal: Economic SystemsVolume: 26Issue: 2
Scopus© Citations 1 -
PublicationLabour Mobility: An Adjustment Mechanism in Euroland? Empirical Evidence for Western Germany, France and ItalyWe evaluate whether labour mobility is likely to act as a sufficient adjustment mechanism in the face of asymmetric shocks in Euroland. As no adequate data on cross-border migration are available, migration elasticities within nation states (Western Germany, France and Italy) are estimated and interpreted as upper bounds for cross-border migration elasticities between European nation states. Labour mobility is highest in Germany, followed by France and Italy. However, the accommodation of a shock to unemployment by migration takes several years. We conclude that labour mobility is unlikely to act as a sufficient adjustment mechanism to asymmetric shocks in Euroland.Type: journal articleJournal: German Economic ReviewVolume: 2Issue: 2