Cross-cultural measurement equivalence of generalized trust. Evidence from the European Social Survey (2002 and 2004)

Generalized trust features as the most prominent attitudinal element of social capital, and as such the concept is widely used in comparative research. In this article we investigate the cross-cultural equivalence of the three-item scale on generalized trust that is included in the European Social Survey 2002 and 2004 waves. The use of metric equivalence tests demonstrates that these tree items can be considered as a reliable and cross-culturally valid concept. If we apply the stricter scalar equivalence test, however, the result is that the scale is not sufficiently equivalent across European societies, with especially the item on expecting help from others showing major problems in a number of countries. We close this article by offering some suggestions on how the generalized trust scale might be used in a (sufficiently) reliable manner in cross-cultural research across Europe.

Labour mobility and regional disparities: the role of female labour participation

Unemployment rates, as well as income per capita, differ vastly across the regions of Europe. Labour mobility can play a role in resolving regional disparities. This paper focuses on the questions of why labour mobility is low in the EU and how it is possible that it remains low. We explore whether changes in male and female labour participation act as an important alternative adjustment mechanism. We answer this question in the affirmative. We argue that female labour participation is very important in adjusting to regional disparities.

Ceilings or floors? Gender wage gaps by education in Spain

This paper analyzes the gender gap throughout the wage distribution in Spain using data from the European Community Household Panel. Quantile regression and panel data techniques are used to estimate wage regressions. In contrast with the steep increasing pattern found in other countries, the flatter evolution of the Spanish gender gap hides an intriguing composition effect. For highly educated workers, in line with the conventional glass ceiling hypothesis, the gap increases as we move up the distribution. However, for less-educated workers the gap decreases. We label this novel fact as a floor pattern and argue that it can be explained by statistical discrimination exerted by employers in countries where less-educated women have low participation rates.

More Participation,Happier Society? A Comparative Study of Civil Society and the Quality of Life

A ‘good society’ has recently been portrayed as one in which citizens engage in voluntary associations to foster democratic processes. Arguably, such a good society is considered as one where people are content with their own lives as well as public life. We consider whether participation in civil society leads to more satisfied individuals on the one hand and a better evaluation of society at a country level on the other. With data from the first round of the European Social Survey, we illustrate that participation in voluntary associations not only depends on individual characteristics, but that there is a clear country-level effect on civil society. This can be explained with measures of quality of society after socio-demographic determinants have been controlled for. Nonetheless, it remains difficult to say what comes first: a ‘good society’ or a thriving civil society.

Sacrificing Their Careers for Their Families? An Analysis of the Penalty to Motherhood in Europe

This paper examines the extent of and the mechanisms behind the penalty to motherhood in six European countries. Each country provides different levels of support for maternal employment allowing us to determine institutional effects on labour market outcome. While mothers tend to earn less than non-mothers, the penalty to motherhood is considerably lower in countries with policy support for working mothers. The paper establishes the United Kingdom and West Germany to have the least policy support for working mothers as well as the largest penalties to motherhood.

The Differentiation of Social Demands in Europe. The Social Basis of the European Models of Capitalism

This paper tests the impact of various determinants of the preference for two key elements of the European social models: redistribution and trade unions, using individual data from the first round of the European Social Survey. The basic hypothesis is that the main determinant of an individual’s support for these elements of the European models is the social position of the individual in terms of income, status and risks attached to their labour market insertion. The paper also considers the relative importance of less ‘materialist’ influences such as religion or other cultural determinants. The estimations show that ‘materialist’ determinants are by far the most important influences on individual preferences, contrary to what most social theories of modernisation contend.

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Personal Values as Mitigating Factors in the Link Between Income and Life Satisfaction: Evidence from the European Social Survey

Using data from the first two rounds of the European Social Survey, we examine the link between income, reference income and life satisfaction across Western Europe. We find that whilst there is a strong positive relationship between income and life satisfaction, reference or comparison income exerts a strong negative influence. Interestingly, our results confirm the importance of personal values and beliefs not only as predictors of subjective well-being, but also as mitigating factors in the relationship between income, reference income and life satisfaction. While our findings provide additional empirical support for the relative utility hypothesis, they are also consistent with Rojas’ (J Econ Psychol 28:1–14, 2007) Conceptual-Referent-Theory (CRT), which is based on the premise that the salience of income and comparison income depends on one’s intrinsic values and personal beliefs.

Are there gender and country of origin differences in immigrant labor market outcomes across European destinations?

The 1994–2000 waves of the European Community Household Panel are used to study the earnings of immigrants as compared to native workers in 15 European countries. At the time of arrival, there is a significant negative partial effect of foreign birth on individual earnings compared to the native born in the destination of around 40%. These differences vary across origins and destinations and by gender. Immigrant earnings catch-up to those of the native born after around 18 years in the destination. Schooling matters more for earnings for women, whereas, language skills are relatively more important for men.

Explaining Cross-Country Differences in Attitudes Towards Immigration in the EU-15

In this paper, we use data from the first two rounds of the European Social Survey to analyze the extent to which differences in average attitudes towards immigration across the EU-15 countries may be explained by differences in socioeconomic characteristics and individually perceived consequences of immigration, using an extension of a decomposition technique developed by Fairlie (2005). We find that despite the significant effects of socioeconomic characteristics on attitudes, differences in the distributions of these characteristics can only explain a modest share of the cross-country variation in average attitudes. A larger part can be explained by differences in perceived consequences of immigration, but the main part is still left unexplained. Apart from providing useful input for policy makers working in the area of immigration policy, this raises a number of questions for further research for which the ESS data can be successfully applied.

Projecting Long-Term Care Expenditure in Four European Union Member States: The Influence of Demographic Scenarios

This study examines the sensitivity of future long-term care demand and expenditure estimates to official demographic projections in four selected European countries: Germany, Spain, Italy and the United Kingdom. It uses standardised methodology in the form of a macro-simulation exercise and finds evidence for significant differences in assumptions about demographic change and its effect on the demand for long-term care, and on relative and absolute long-term care expenditure. It concludes that mortality-rate assumptions can have a considerable influence on welfare policy planning. Relative dispersion between country-specific and Eurostat official estimates was found to be higher for the United Kingdom and Germany than for Italy and Spain, suggesting that demographic projections had a greater influence in those countries.

The new economics of education: methods,evidence and policy

In this paper (my keynote talk from the 2006 ESPE conference), I discuss the recent upsurge in research on the economics of education that has occurred, especially in Europe. I discuss the reasons for the increased interest and present some examples from my recent research in the area. The paper concludes that the increased research interest seems likely to be sustained for some time to come.

Labor market transitions of immigrants with emphasis on marginalization and self-employment

In developed countries, immigrants are more likely to be nonemployed and self-employed compared to natives. Based on register data of male immigrants in Denmark, we performed a detailed investigation of the immigrant–native difference in transition patterns across labor market states. We find that a high proportion of immigrants from non-Western countries tend to be marginalized relative to natives, and they tend to use self-employment to escape marginalization.

The changing nature of wage inequality

The paper reviews recent developments in the literature on wage inequality with a particular focus on why inequality growth has been particularly concentrated in the top end of the wage distribution over the last 15 years. Several possible institutional and demand-side explanations are discussed for the secular growth in wage inequality in the United States and other advanced industrialized countries.

The Parental Leave Benefit Reform in Germany: Costs and Labour Market Outcomes of Moving towards the Nordic Model

Germany is known to have one of the lowest fertility rates among Western European countries and also relatively low employment rates of mothers with young children. Although these trends have been observed during the last decades, the German public has only recently begun discussing these issues. In order to reverse these trends, the German government recently passed a reform of the parental leave benefit system in line with the model practiced in Nordic countries. The core piece of the reform is the replacement of the existing means-tested parental leave benefit by a wage-dependent benefit for the period of one year. In this paper we simulate fiscal costs and expected labour market outcomes of this reform. Based on a micro-simulation model for Germany we calculate first-round effects, which assume no behavioural changes and second-round effects, where we take labour supply changes into account. Our results show that on average all income groups, couples and single households, benefit from the reform. The calculation of overall costs of the reform shows that the additional costs are moderate. As far as the labour market behaviour of parents is concerned, we find no significant changes of labour market outcomes in the first year after birth. However, in the second year, mothers increase their working hours and labour market participation significantly. Our results suggest that the reform will achieve one of its aims, namely the increase in the labour market participation of mothers with young children.

The Social Consequences of Insecure Jobs

Forms of insecure employment have been increasing all over Europe in recent decades. These developments have been welcomed by those who argued that these types of flexible employment would not only foster employment but could also help women, in particular, to positively combine work and family life. This vision was questioned by others who argued that flexible employment could have negative consequences for both occupational prospects and private and family life since it is often associated with greater insecurity and poorer working conditions. Relatively little research has been dedicated to the “social consequences” of insecure employment and its specific implications for work-life reconciliation issues. This paper contributes to this topic by linking research that addresses work-life conflict to the wider body of work dealing with job insecurity. It investigates the consequences of certain employment contracts on private and family life, taking into account information on current family life, future family plans and general well-being. It provides a series of test relating to the extent to which negative consequences in these areas might be attributable to the type of employment contract and how these vary between European countries. Analysis using ESS data from 2004 for western European countries confirms that insecure employment is accompanied by more problematic “social and family” situations. These negative consequences are partly shaped by the specific context provided by the country in question.

Money Does not Buy Happiness: Or Does It? A Reassessment Based on the Combined Effects of Wealth,Income and Consumption

The paper uses household economic panel data from five countries—Australia, Britain, Germany, Hungary and The Netherlands—to provide a reassessment of the impact of economic well-being on happiness. The main conclusion is that happiness is considerably more affected by economic circumstances than previously believed. In all five countries wealth affects life satisfaction more than income. In the countries for which consumption data are available (Britain and Hungary), non-durable consumption expenditures also prove at least as important to happiness as income.

The Digital Divide Across All Citizens of the World: A New Concept

This paper is concerned with the requirements for and implications of, moving from the confines of the conventional concept of the digital divide to one that reflects a world distribution of Internet users with different income levels, with particular reference to those users living in poverty. The first part of the note provides a simple, sequential, two-country illustration of what such a transition would entail. The resulting framework is then used to revisit the much-discussed issue of recent changes in Internet use between rich and poor countries. One mechanism that is associated with the revised concept is shown to substantially reduce the size of the digital divide as conventionally measured. The other mechanism, by contrast, works in the opposite direction because the increased number of users in developing countries are drawn from high-income, educated and urban classes, creating a highly unequal distribution within these countries.

Causality Chains in the International Migration Systems Approach

Research into international migration lacks a commonly accepted theoretical framework, which would facilitate the accumulation of knowledge. This article aims to be a first attempt to construct such a framework and to incorporate causalities in the international migration systems approach. The author presents a theoretical framework in which four groups of factors acting on international migration are distinguished: economic, social, political and “linkages.” The causalities in this framework are derived from different international migration theories. The various positions of these whole theories within the framework are shown as causality chains. In a way, these causality chains form the time dimension of an international migration system

The dynamics of immigrant welfare and labor market behavior

This paper analyzes transitions into and out of social assistance, unemployment, and employment. We estimate a dynamic multinomial logit model, controlling for endogenous initial condition and unobserved heterogeneity, using a large representative Swedish panel data set. The empirical results suggest that particularly refugee immigrants display a greater degree of “structural” state dependence than natives. The high welfare participation rates among refugee immigrants may be due to the existence of a “welfare trap”, while participation among natives and non-refugee immigrants is largely due to permanent unobserved characteristics. These results suggest that welfare reforms may have differential effects on refugee immigrants and natives.

An Empirical Test of a Neo-Malthusian Theory of Fertility Change

Some neo-Malthusians regard fertility as being kept in check by scarcities and constraints and, conversely, as being raised by economic prosperity. Since out-migration to developed countries and the receipt of food aid from developed countries relax the constraints imposed by a country’s carrying capacity, both will have a positive effect on fertility rates in developing countries. Moreover, better economic prospects will also raise fertility, all other things equal. This article provides an empirical test of these hypotheses derived from a neo-Malthusian theory of fertility change. The results fail to confirm the theory and often contradict it.