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What are the long-term effects of Communism on economically relevant notions such as social trust? To answer this question, we use the reunification of Germany as a natural experiment and study the post-reunification trajectory of convergence with regard to individuals' trust and risk, as well...
Persistent link: https://www.econbiz.de/10013137530
Interpersonal relations are shaped by the judgements associated with the social categories that individuals perceive in their social contacts. I develop a model of how those judgments form based on a theory of symbolic values. The model depicts the interaction between two values, one associated...
Persistent link: https://www.econbiz.de/10013157741
What happens when immigrant girls are given increased opportunities to integrate into the workplace and society, but their parents value more traditional cultural outcomes? Building on Akerlof and Kranton's identity framework (2000), we construct a simple game-theoretic model which shows how...
Persistent link: https://www.econbiz.de/10012827356
Using the 41-year division of Germany as a natural experiment, we show that the GDR's gender-equal institutions created a culture that has undone the male breadwinner norm and its consequences. Since reunification, East Germany still differs from West Germany not only by a higher female...
Persistent link: https://www.econbiz.de/10012870264
The focus of this paper is on the choice of the unemployed between becoming an entrepreneur or not. It contributes to the literature by empirically investigating two hitherto neglected issues: What is the impact of risk aversion and personal contact with a role model in shaping the decision to...
Persistent link: https://www.econbiz.de/10013320574
We explore the country-specific institutional characteristics likely to influence an individual's decision to become an entrepreneur. We focus on the size of the government, on freedom from corruption, and on 'market freedom' defined as a cluster of variables related to protection of property...
Persistent link: https://www.econbiz.de/10013141215
This paper compares the impact of institutions on individual decisions to become entrepreneurs in the form of new business start ups by males and females across 44 developed and developing economies between 1998 and 2004. We test four hypotheses; that women are less likely to undertake...
Persistent link: https://www.econbiz.de/10013153505
This paper analyzes the political sustainability of the welfare state in an environment where immigration is the main demographic force and where governments are able to influence the size and skill composition of immigration flows. Specifically, I present a dynamic political-economy model where...
Persistent link: https://www.econbiz.de/10013154988
Expansion of the public sector and redistributive policies may reduce income inequality, but formal tests suffer from the problem of endogeneity of government size with respect to the distribution of income. Studying 30 European countries over the period 2004-2015, we apply instrumental variable...
Persistent link: https://www.econbiz.de/10012894558
The aim of this discussion paper is not only to activate a debate over the interrelation between rising income inequality and economic policy measures but also to initiate comparative research in several European countries and North America. It discusses the consequences of a rising income...
Persistent link: https://www.econbiz.de/10013126141