Labour Market Institutions and Flexibility in Italy

ABSTRACT: The paper surveys three broad categories of labor market institutions in Italy: employment protection legislation unemployment benefit systems and wage bargaining arrangements In each we the recent evolution and current state of Italian institutions are evaluated and compared With those in other major European countries     

考虑保险机构参与的重大工程风险管理激励模型

重大工程建设过程往往面临着巨大的风险暴露，保险是重要的风险处置手段，承接保险合同的保险机构和业主一起成为风险损失的承担主体。考虑到保险机构拥有极强参与现场风险管理的动能，本文基于委托代理理论构建了保险机构介入下业主与承包商的激励模型，分别讨论了共同代理和独家代理两种模式下各方的策略与收益。研究结果表明：共同代理模式下，保险机构实现了主动风险管理，业主和保险机构的收益均得以提高，业主愿意提供比独家代理模式更高的激励系数；承包商在共同代理模式下将采取更为积极的风险管理努力，同时其机会主义行为得到了抑制；业主的最优激励系数受项目特征、承包商自身因素以及外界环境的不确定性共同作用。     

Taxes and Women in the Labour Force in a Southern European Country: The Case of Portugal

On looking at the female labour supply in Europe, it is immediately noticed that there is a large variation among countries. One possible explanation for this fact is that different countries have different tax policies, leading to variations in incentive and costs. This has been investigated in papers such as that of Gustafsson (1992a,b) for countries such as Germany and Sweden. The same exercise has been performed by the present authors for a low-income, southern European country, Portugal, which has one of the highest rates of female participation (out of line with neighbouring countries). Female labour supply does not seem to be very sensitive to fiscal policies, as those policies have only a small influence on the take-home wage. This result appears to be independent of the fact that the female labour supply shows a higher elasticity to wages than that which has been reported for other countries. The present authors also show that Portuguese women contribute a much larger proportion of family earnings than do their counterparts in Sweden and Germany, and that the Portuguese fiscal system is rather neutral. Further studies with data from other countries are needed in order to shed more light on the issue of tax harmonization.     

The Emergence of Flood Insurance in Canada: Navigating Institutional Uncertainty

Flood insurance has remained unavailable in Canada based on an assessment that it lacks economic viability. In response to Canada's costliest flood event to date in 2013, the Canadian insurance industry has started to develop a framework to expand existing property insurance to cover flood damage. Research on flood insurance has overlooked why and how insurance systems transition to expand insurance coverage without evidence of economic viability. This article will address this gap through a case study on the emergence of flood insurance in Canada, and the approach to its expansion. Between 2013 and 2016, insurance industry officials representing over 60% of premiums collected in Canada were interviewed. These interviews revealed that flood insurance is being expanded in response to institutional pressure, specifically external stakeholder expectations that the insurance industry will adopt a stronger role in managing flood risk through coverage of flood damage. Further evidence of this finding is explored by assessing the emergence of a unique flood insurance model that involves a risk‐adjusted and optional product along with an expansion of government policy supporting flood risk mitigation. This approach attempts to balance industry concerns about economic viability with institutional pressure to reduce flood risk through insurance. This analysis builds on existing research by providing the first scholarly analysis of flood insurance in Canada, important “empirical” teeth to existing conceptual analysis on the availability of flood insurance, and the influence of institutional factors on risk analysis within the insurance sector.     

A Long Cycle in Industrial Relations,or: Regulation Theory and Political Economy

ABSTRACT: The main purpose of this paper is to test the Regulation Theory (la Théorie de la Régulation) ‘ on a subject — the long cycle of rigidity/flexibility in labour markets and industrial relations we have experienced between the late sixties and now — that should be one of the central concerns of such a theory, being linked to one of its basic concepts: the Rapport Salarial. Does the theory of regulation help us (more than rival theoretical frameworks do) in explaining why we underwent a rigidity/flexibility cycle? And in explaining why this cycle took such different forms in different countries? In order to achieve this purpose, the author first distinguishes several meanings, or dimensions, or rigidity/flexibility (money and real wage, numerical, functional, intensive, dualistic, geographical) and goes to some length in analysing why comparisons in this field between national industrial relations systems and labour market arrangements are rather difficult to perform. Having done that, the author argues that regulation theory is of little help in understanding our diachronic question — why we went through a flexibility cycle — because such a theory does not make any strong bet on the causes of change in the institutional arrangements of labour markets and industrial relations. On the synchronic question — why the forms of the cycle have been so different cross-nationally — the conclusion is that Regulation Theory can be useful as a focusing device, as an ideal-type, but that a lot of nationally-specific materials have to be added in order to obtain adequate answers. The paper ends up with a methodological discussion on the statute of regulation theory. It is argued that it is neither theory nor history: it is a series of ideal-types of system-integration, connected by ex-post, historical linkages.     

POLICIES AND IMPACT: AN ANALYSIS OF VILLAGE‐LEVEL MICROFINANCE INSTITUTIONS

This paper uses variation in policies and institutional characteristics to evaluate the impacts of village‐level microfinance institutions in rural Thailand. To identify impacts, we use policies related to the successful/unsuccessful provision of services as exogenous variation in effective financial intermediation. We find that institutions, particularly those with good policies, can promote asset growth, consumption smoothing and occupational mobility, and can decrease moneylender reliance. Specifically, cash‐lending institutions—production credit groups and especially women's groups—are successful in providing intermediation and its benefits to members, while buffalo banks and rice banks are not. The policies identified as important to intermediation and benefits: the provision of savings services, especially pledged savings accounts; emergency services; and training and advice. Surprisingly, much publicized policies such as joint liability, default consequences, or repayment frequency had no measured impacts. (JEL: 012, 016)     

Implied Preference for Seismic Design Level and Earthquake Insurance

Seismic risk can be reduced by implementing newly developed seismic provisions in design codes. Furthermore, financial protection or enhanced utility and happiness for stakeholders could be gained through the purchase of earthquake insurance. If this is not so, there would be no market for such insurance. However, perceived benefit associated with insurance is not universally shared by stakeholders partly due to their diverse risk attitudes. This study investigates the implied seismic design preference with insurance options for decisionmakers of bounded rationality whose preferences could be adequately represented by the cumulative prospect theory (CPT). The investigation is focused on assessing the sensitivity of the implied seismic design preference with insurance options to model parameters of the CPT and to fair and unfair insurance arrangements. Numerical results suggest that human cognitive limitation and risk perception can affect the implied seismic design preference by the CPT significantly. The mandatory purchase of fair insurance will lead the implied seismic design preference to the optimum design level that is dictated by the minimum expected lifecycle cost rule. Unfair insurance decreases the expected gain as well as its associated variability, which is preferred by risk-averse decisionmakers. The obtained results of the implied preference for the combination of the seismic design level and insurance option suggest that property owners, financial institutions, and municipalities can take advantage of affordable insurance to establish successful seismic risk management strategies.     

System reform in integrated health systems

As the debate progresses on health care reform and the ultimate form of the U.S. system, important lessons can be drawn from examinations of other health care systems. From the U.S. perspective, European health systems appear to have a certain homogeneity about them. Americans tend to look at all European arrangements as single-source financing systems. Because these systems all provide universal coverage, the assumption is that there must be a strong cohesion and similarity among them. Viewed from the European perspective, the reality appears to be rather different. In this article, the health cae systems of Nordic countries are analyzed in terms of their differences both from other European systems and from the United States approach.     

The Financial Management of Catastrophic Flood Risks in Emerging-Economy Countries

This article examines the potential of pre- and post-disaster instruments for funding disaster response and recovery and for creating incentives for flood loss mitigation in countries with emerging or transition economies. As a concrete case, we discuss the disaster recovery arrangements following the 1997 flood disaster in Poland. We examine the advantages and limitations of hedging instruments, which are instruments for transferring the risk to investors either through insurance or capital market-based securities. We compare these mechanisms with financing instruments whereby the government sets aside funds prior to a disaster or taps its own funding sources after the event occurs. We show how hedging instruments can be designed to create incentives for the mitigation of damage to public infrastructure using the flood proofing of a water-treatment plant on the hypothetical Topping River as an illustrative example. We conclude that hedging instruments can be an attractive alternative to financing instruments that have been traditionally used in the poorer, emerging-economy countries to fund disaster recovery. Since very poor countries are likely to have difficulty paying the price of protection prior to a disaster, we suggest that international lending institutions consider innovations for subsidizing these payments.     

中国外商直接投资产业政策测量和有效性研究:1979~2003

本文以我国正式颁布的1987、1995、1997和2002年4次外资产业政策及其投资目录为研究对象,通过将投资目录按照标准的2位数产业代码进行归类,并对各种政策类别赋予权重,以此测量外资产业政策指数,在这基础上,再对外资产业政策的有效性进行研究。结果表明:在产业开放趋势上,我国对外资产业开放程度越来越大。在产业开放导向上,这4次外资产业政策表现出了一致性,集中反映了我国的引资目的,而且,在产业开放效果上,对于各种不同的产业分组,以及对于港澳台企业和外国企业,外资产业政策都能够有效地引导外资的产业流向。     

Physician payment in Canada, Germany, and the United States

As the debate about reforming the U.S. health care system intensifies, interest has focused on three alternative delivery systems: the predominantly private-sector model in the United States, the provincial-government health insurance model of Canada, and the social insurance model of Germany. The organization of physician payment is an important part of all these health care systems. To maintain an affordable system that delivers high-quality care, payment to physicians must be sufficient to attract and maintain an able group of doctors, while not exceeding an amount that the country can afford. In this article, these three systems will be examined, and an attempt will be made to apply the lessons learned from Germany and Canada to the direction of physician payment reform in the United States.     

Entrepreneurship,globalization, and public policy

This paper examines the impact of governmental policies in influencing the path of internationalization of small- and medium-sized enterprises (SMEs). It focuses on the role of institutions mandated to assist internationalization, as exemplified by Canada's Export Development Corporation (EDC). We illustrate and examine critically the role that governments typically play in assisting and influencing the international expansion of domestic firms. We argue that the activities of agencies such as EDC — mainly in financing and in insuring against the risks inherent in export activities — may actually be counterproductive to the long-term interests of many SMEs by skewing managers' decisions toward direct exporting, rather than toward indirect exporting by entering the value chain of already-established multinational enterprises (MNEs). A consequence may be to divert the constrained resources of entrepreneurial firms away from their greatest comparative advantage — innovation — toward managing direct entry into international markets in which they are at a comparative disadvantage relative to larger established MNEs. Highly innovative SMEs might be better off by leaving the internationalization of their innovations to MNEs and sharing some of the international direct exporting profits with them instead. The implications are relevant for governmental policies toward internationalizing SMEs not just in Canada but in open, market-oriented economies everywhere.     

Potential for Flexibility in EC Countries

Abstract. There are two economic reasons for supporting the Internal Market Programme of the EC by social policies: the fust argument refers to welfare theory, the second to policies of distribution. First, it could be possible that an economic integration without social completion will lead to welfare losses. Therefore, it could be necessary to correct market forces or to support them respectively because, due to market imperfections, they do not provide the best possible use of productive facilities. Second, it cannot be excluded that level and structure of social provisions will not be accepted because of superior aspects of policies of distribution. Market results could miss the aim of adjusting life and working conditions within the EC and developing them further. These two arguments mentioned above should be followed up in the discussion of the pros and cons of a harmonization of social systems in the EC. For the purposes of this paper these. rather fundamental considerations are applied to the following concrete items: dismissal protection, non-standard forms of employment, and working hours. These regulations influence numerical flexibility of enterprises, i.e. the possibilities of quantitative adjustments in staff use. The steadily growing competition in Europe will also increase the importance of flexibility potentials of enterprises in the different countries as a relevant factor for enterprise location. Extensive flexibility restrictions could prove to be competitive disadvantage in view of countries with more possibilities of flexibilization.Therefore, after the comparison of flexibility potentials in the EC-countries the implications for European laws (key-word: Social Charter) are to be discussed.     

Context,Cultural Bias,and Health Risk Perception: The “Everyday” Nature of Pesticide Policy Preferences in London,Calgary, and Halifax

Risk perception and the cultural theory of risk have often been contrasted in relation to risk‐related policy making; however, the local context in which risks are experienced, an important component of everyday decision making, remains understudied. What is unclear is the extent to which localized community beliefs and behaviors depend on larger belief systems about risk (i.e., worldviews). This article reports on a study designed to understand the relative importance of health risk perceptions (threat of harm); risk‐related worldviews (cultural biases); and the experiences of local context (situated risk) for predicting risk‐related policy preferences regarding cosmetic pesticides. Responses to a random telephone questionnaire are used to compare residents’ risk perceptions, cultural biases, and pesticide bylaw preferences in Calgary (Alberta), Halifax (Nova Scotia), and London (Ontario), Canada. Logistic regression shows that the most important determinants of pesticide bylaw preference are risk perception, lack of benefit, and pesticide “abstinence.” Though perception of health risk is the best single predictor of differences in bylaw preferences, social factors such as gender and situated risk factors like conflict over chemical pesticides, are also important. Though cultural biases are not important predictors of pesticide bylaw preference, as in other studies, they are significant predictors of health risk perception. Pesticide bylaw preference is therefore more than just a health risk perception or worldview issue; it is also about how health risk becomes situated—contextually—in the experiences of residents’ everyday lives.     

Federalism and the Implementation of Environmental Policy: Changing Trends in Canada and the United States

In a federal system of government, powers are shared by the national and sub-national units in accordance with the provisions of the Constitution. However, the process of policy implementation may differ on the basis of allocation of power and the nature of the system. Canada and the United States of America adopted federal systems of government, and faced similar pressures for implementing policies on environmental issues. Yet, the degree of success and outcome appear to be different due to variations in the strength of the respective federalist systems. An analysis of the various aspects of the federal system in the two countries reveals noticeable differences in institutional configurations, relationship between national and sub-national units, and variances in intra-institutional relations. All these have contributed to a divergence in the past, but there is an emerging trend of convergence as both the Canadian and American governments are gradually moving away from their existing patterns of policy implementation toward a new approach involving private-sector initiatives and self-enforcement with strong inclinations toward voluntarization, corporatization and marketization.     

Insurance Against Climate Change and Flooding in the Netherlands: Present, Future, and Comparison with Other Countries

Climate change is projected to cause severe economic losses, which has the potential to affect the insurance sector and public compensation schemes considerably. This article discusses the role insurance can play in adapting to climate change impacts. The particular focus is on the Dutch insurance sector, in view of the Netherlands being extremely vulnerable to climate change impacts. The usefulness of private insurance as an adaptation instrument to increased flood risks is examined, which is currently unavailable in the Netherlands. It is questioned whether the currently dominant role of the Dutch government in providing damage relief is justified from an economic efficiency perspective. Characteristics of flood insurance arrangements in the Netherlands, the United Kingdom, Germany, and France are compared in order to identify possible future directions for arrangements in the Netherlands. It is argued that social welfare improves when insurance companies take responsibility for part of the risks associated with climate change.     

UNEMPLOYMENT INSURANCE IN EUROPE: UNEMPLOYMENT DURATION AND SUBSEQUENT EMPLOYMENT STABILITY

This paper provides evidence on the effect of unemployment insurance on unemployment and subsequent employment duration in Europe using individual data from the European Community Household Panel. Country‐specific estimates based on a multivariate discrete‐time duration model, which takes into account dynamic selection issues and the endogeneity of benefit receipt, suggest that although receiving benefits has an adverse effect in the sense of increasing unemployment duration, there is also a positive effect associated with the increased duration of subsequent employment. This beneficial effect of unemployment insurance on employment stability is pronounced in countries with relatively generous benefit systems, and for recipients who have remained unemployed for at least six months. These findings are in line with theories that suggest a matching effect of unemployment insurance. (JEL: J64, J65, C41)     

A GLOBAL VIEW OF CROSS‐BORDER MIGRATION

This paper evaluates the global welfare impact of observed levels of migration using a quantitative multi‐sector model of the world economy calibrated to aggregate and firm‐level data. Our framework features cross‐country labor productivity differences, international trade, remittances, and a heterogeneous workforce. We compare welfare under the observed levels of migration to a no‐migration counterfactual. In the long run, natives in countries that received a lot of migration—such as Canada or Australia—are better off due to greater product variety available in consumption and as intermediate inputs. In the short run, the impact of migration on average welfare in these countries is close to zero, while the skilled and unskilled natives tend to experience welfare changes of opposite signs. The remaining natives in countries with large emigration flows—such as Jamaica or El Salvador—are also better off due to migration, but for a different reason: remittances. The welfare impact of observed levels of migration is substantial, at about 5% to 10% for the main receiving countries and about 10% in countries with large incoming remittances.     

Competition and Coordination in Two‐Tier Public Service Systems under Government Fiscal Policy

As a result of government budgetary limits and rapid market growth, many public service systems—such as health care—are characterized by extensive customer wait times that have become a serious problem. This problem might be solved by allowing private firms to enter these markets, which would provide customers with a choice between a free (governmental) public service provider (SP) and a fee‐charging (or “toll”) private SP. In such a two‐tier service system, the two SPs are differentiated by service quality and cost efficiency. This study focuses on the competition and coordination issues for two‐tier service systems with customers who are sensitive to both service quality and delay. The free system attempts to maximize its expected total customer utility with limited capacity, whereas the toll system attempts to maximize its profit. Neither goal is aligned with the social welfare goal of the public service. To achieve the social welfare goal, the government plays a crucial role in coordinating the two‐tier service system via the budget, the tradeoff of social members' goals, and tax‐subsidy policies. Using a mixed duopoly game, we establish Nash equilibrium strategies and identify the conditions for the existence of the two‐tier service system. We employ several interesting and counter‐intuitive managerial insights generated by the model to show that the public service can be delivered more efficiently via customer choice and SP competition. In addition, we show that a relatively low tax‐subsidy rate can almost perfectly coordinate the two SPs to achieve most of the maximum possible benefit of the two‐tier service system.     

CHOOSING (AND RENEGING ON) EXCHANGE RATE REGIMES

We use data on announced and actual exchange rate arrangements to ask which countries follow de facto regimes different from their de iure ones, that is, do not do what they say. Our results suggest that countries with poor institutional quality have difficulty in maintaining pegging and abandon it often. In contrast, many countries with relatively good institutions display fear of floating, that is, they manage more than announced, perhaps to signal their differences from those countries incapable of maintaining promises of monetary stability. (JEL: F3, O1)