Has Labor Income Become More Volatile? Evidence from International Industry-Level Data
Claudia M. Buch
German Economic Review,
No. 4,
2013
Abstract
Changes in labor market institutions and the increasing integration of the world economy may affect the volatility of capital and labor incomes. This article documents and analyzes changes in income volatility using data for 11 industrialized countries, 22 industries and 35 years (1970–2004). The article has four main findings. First, the unconditional volatility of labor income has declined in parallel to the decline in macroeconomic volatility. Second, the industry-specific, idiosyncratic component of labor income volatility has hardly changed. Third, cross-sectional heterogeneity is substantial. If anything, the labor incomes of high- and low-skilled workers have become more volatile relative to the volatility of capital incomes. Fourth, the volatility of labor income relative to the volatility of capital income declines in the labor share. Trade openness has no clear-cut impact.
Read article
Granularity in Banking and Growth: Does Financial Openness Matter?
Franziska Bremus, Claudia M. Buch
IWH Discussion Papers,
No. 14,
2013
Abstract
We explore the impact of large banks and of financial openness for aggregate growth. Large banks matter because of granular effects: if markets are very concentrated in terms of the size distribution of banks, idiosyncratic shocks at the bank-level do not cancel out in the aggregate but can affect macroeconomic outcomes. Financial openness may affect GDP growth in and of itself, and it may also influence concentration in banking and thus the impact of bank-specific shocks for the aggregate economy. To test these relationships, we use different measures of de jure and de facto financial openness in a linked micro-macro panel dataset. Our research has three main findings: First, bank-level shocks significantly impact on GDP. Second, financial openness lowers GDP growth. Third, granular effects tend to be stronger in financially closed economies.
Read article
Towards Deeper Financial Integration in Europe: What the Banking Union Can Contribute
Claudia M. Buch, T. Körner, Benjamin Weigert
IWH Discussion Papers,
No. 13,
2013
Abstract
The agreement to establish a Single Supervisory Mechanism in Europe is a major step towards a Banking Union, consisting of centralized powers for the supervision of banks, the restructuring and resolution of distressed banks, and a common deposit insurance system. In this paper, we argue that the Banking Union is a necessary complement to the common currency and the Internal Market for capital. However, due care needs to be taken that steps towards a Banking Union are taken in the right sequence and that liability and control remain at the same level throughout. The following elements are important. First, establishing a Single Supervisory Mechanism under the roof of the ECB and within the framework of the current EU treaties does not ensure a sufficient degree of independence of supervision and monetary policy. Second, a European institution for the restructuring and resolution of banks should be established and equipped with sufficient powers. Third, a fiscal backstop for bank restructuring is needed. The ESM can play a role but additional fiscal burden sharing agreements are needed. Direct recapitalization of banks through the ESM should not be possible until legacy assets on banks’ balance sheets have been cleaned up. Fourth, introducing European-wide deposit insurance in the current situation would entail the mutualisation of legacy assets, thus contributing to moral hazard.
Read article
Aktuelle Trends: ista-IWH-Energieeffizienzindex 2012: Weiter auf dem Pfad der Einsparung!
Claus Michelsen, Sebastian Rosenschon, Michael Barkholz
Wirtschaft im Wandel,
No. 5,
2013
Abstract
Der ista-IWH-Energieeffizienzindex zeigt für die aktuelle Abrechnungsperiode 2012, dass sich die Gesamtentwicklung des sinkenden Heizenergieverbrauchs in Mehrfamilienhäusern weiter verstetigt hat. Die durchschnittliche Veränderung zwischen 2010 und 2012 liegt bei rund −0,8% pro Jahr. Der für das Jahr 2011 festgestellte leichte Anstieg des Energieverbrauchs hat sich damit erwartungsgemäß nicht als wirkliche Trendwende erwiesen. Die Einsparung der letzten beiden Jahre fällt allerdings geringer aus als der längerfristige Trend von ca. −1,8% im Jahresdurchschnitt seit 2005.
Read article
Konjunktur aktuell: Deutsche Wirtschaft im Aufschwung
Konjunktur aktuell,
No. 4,
2013
Abstract
Für die deutsche Wirtschaft stehen die Zeichen auf Erholung. Das reale Bruttoinlandsprodukt zog nach einem Rückgang im vergangenen Winterhalbjahr im Sommer 2013 wieder an. Das preisbereinigte Bruttoinlandsprodukt dürfte im Jahr 2013 um 0,6% und im Jahr 2014 um 2% zulegen. Während die Arbeitslosenquote im Jahr 2014 zurückgeht, wird sich die Verbraucherpreisinflation etwas beschleunigen.
Read article
Leverage, Balance-Sheet Size and Wholesale Funding
H. Evren Damar, Césaire Meh, Yaz Terajima
Journal of Financial Intermediation,
No. 4,
2013
Abstract
Positive co-movements in bank leverage and assets are associated with leverage procyclicality. As wholesale funding allows banks to quickly adjust leverage, banks with wholesale funding are expected to exhibit higher leverage procyclicality. Using Canadian data, we analyze (i) if leverage procyclicality exists and its dependence on wholesale funding, (ii) market factors associated with this procyclicality, and (iii) if banking-sector leverage procyclicality forecasts market volatility. The findings suggest that procyclicality exists and that its degree positively depends on use of wholesale funding. Furthermore, funding-market liquidity matters for this procyclicality. Finally, banking-sector leverage procyclicality can forecast volatility in the equity market.
Read article
Banking Market Competition, Opaque Firms, and the Reallocation Component of Aggregate Growth
R. Inklaar, Michael Koetter, Felix Noth
Abstract
Read article
Cost of Transaction and the Search for Skilled Workers: A Theoretical Explanation Based on the Theory of Institutions
Herbert S. Buscher, R. Ohliger, Andreas Siegert
IWH Discussion Papers,
No. 11,
2013
Abstract
In den kommenden Jahren werden in Deutschland einige Branchen und Regionen einen steigenden Bedarf an Fachkräften haben. Hierbei handelt es sich nicht nur um Hochqualifizierte der so genannten MINT-Berufe (Mathematik, Ingenieurwesen, Natur-wissen¬schaften, Technik), sondern verstärkt auch um qualifizierte Arbeitnehmer des Gesundheitswesens und Handwerks. Aus der „Stillen Arbeitsmarktreserve“ ist der Bedarf nicht zu decken, was u. a. auch eine Folge des demographischen Wandels ist. Gesellschaftliche Verantwortung erfordert deshalb die Anwerbung qualifizierter und hochqualifizierter Arbeitnehmer. Damit eine ausreichend hohe Bereitschaft zur Einwande-rung ausländischer Fachkräfte nach Deutschland erzielt werden kann, bedarf es neben den harten Faktoren wie Beschäftigung und Einkommen weiterer Voraussetzungen, so genannter weicher Faktoren, die eine Entscheidung für Deutschland als Migrationsziel herbeiführen. Hierunter ist eine Politik zu verstehen, die den Einwanderern vermittelt, dass sie und ihre Familie willkommen sind und eine langfristige Bleibeperspektive haben. Dieses als „Willkommenskultur“ bezeichnete Konzept signalisiert einen Paradigmenwechsel in der deutschen Politik. Eine derart umrissene Willkommenskultur besteht derzeit in Deutschland noch nicht oder zumindest nicht auf einem Niveau, das von potenziellen Einwanderern als ausreichend wahrgenommen wird. Auf Grundlage der Institutionenökonomik werden Ansätze zu einem neuen politischen Ansatz und seiner Umsetzung skizziert, aus dem sich umfassende staatliche, gesellschaftliche und unter-nehmerische Implikationen ableiten. Dabei konzentriert sich der Beitrag auf die Anwerbung von Fachkräften aus Drittstaaten.
Read article
Is There a Gap in the Gap? Regional Differences in the Gender Pay Gap
Boris Hirsch, Marion König, Joachim Möller
Scottish Journal of Political Economy,
No. 4,
2013
Abstract
In this paper, we investigate regional differences in the gender pay gap both theoretically and empirically. Within a spatial model of monopsonistic competition, we show that more densely populated labour markets are more competitive and constrain employers’ ability to discriminate against women. Utilizing a large administrative data set for western Germany and a flexible semi-parametric propensity score matching approach, we find that the unexplained gender pay gap for young workers is substantially lower in large metropolitan than in rural areas. This regional gap in the gap of roughly 10 percentage points remained surprisingly constant over the entire observation period of 30 years.
Read article
Granularity in Banking and Growth: Does Financial Openness Matter?
Franziska Bremus, Claudia M. Buch
CESifo Working Paper No. 4356, August,
2013
Abstract
We explore the impact of large banks and of financial openness for aggregate growth. Large banks matter because of granular effects: if markets are very concentrated in terms of the size distribution of banks, idiosyncratic shocks at the bank-level do not cancel out in the aggregate but can affect macroeconomic outcomes. Financial openness may affect GDP growth in and of itself, and it may also influence concentration in banking and thus the impact of bank-specific shocks for the aggregate economy. To test these relationships, we use different measures of de jure and de facto financial openness in a linked micro-macro panel dataset. Our research has three main findings: First, bank-level shocks significantly impact on GDP. Second, financial openness lowers GDP growth. Third, granular effects tend to be stronger in financially closed economies.
Read article
