Brother correlations in earnings in Denmark, Finland, Norway and Sweden compared to the United States

The correlation in economic status among siblings is a useful “omnibus measure” of the overall impact of family and community factors on adult economic status. In this study we compare brother correlations in long-run (permanent) earnings between the United States, on one hand, and the Nordic countries (Denmark, Finland, Norway and Sweden) on the other. Our base case results, based on very similar sample criteria and definitions for all countries, show that this correlation is above 0.40 in the United States and in the range 0.14–0.26 in the Nordic countries. Even though these results turn out to be somewhat sensitive to some assumptions that have to be made, we conclude that the family and community factors are more important determinants of long-run earnings in the United States than in the Nordic countries. Received: 27 July 2000/Accepted: 7 March 2001 All correspondence to: Anders Bj?rklund. Comments from two referees, conference participants at ESPE2000 and the Canadian Employment Research Forum, seminar participants in Aarhus, Uppsala, Bonn, and Stockholm are gratefully acknowledged. We thank NOS-S for financial support. The Swedish data collection was also supported by HSFR and SFR. The Finnish data were obtained with support from the Yrj? Jahnsson Foundation. We thank Tom Erik Aab? for preparing the Norwegian data, and Esben Agerbo for computational assistance with the Danish data. Responsible editor: John F. Ermisch.     

SERVICES OUTSOURCING AND INNOVATION: AN EMPIRICAL INVESTIGATION

We provide a comprehensive empirical analysis of the links between international services outsourcing, domestic outsourcing, profits, and innovation using plant‐level data. We find a positive effect of international outsourcing of services on innovative activity at the plant level. Such a positive effect can also be observed for domestic outsourcing, but the magnitude is smaller. We also find that international services outsourcing has a positive effect on profitability, as predicted by theory, whereas this is not true for domestic sourcing. The results are robust to various specifications and an instrumental variables analysis. (JEL F19, O31)     

A test statistic based on ranked set sampling for two normal means

In this study, we considered a hypothesis test for the difference of two population means using ranked set sampling. We proposed a test statistic for this hypothesis test with more than one cycle under normality. We also investigate the performance of this test statistic, when the assumptions hold and are violated. For this reason, we investigate the type I error and power rates of tests under normality with equal and unequal variances, non-normality with equal and unequal variances. We also examine the performance of this test under imperfect ranking case. The simulation results show that derived test performs quite well.     

The changing relationship between unemployment and total fertility

The aim of this paper is to investigate whether there has been a fundamental change in the relationship between economic conditions and fertility. We use panel data methods to study the short-term changes in total fertility and the unemployment rate in a range of Organisation for Economic Co-operation and Development (OECD) countries from 1957 to 2014. We find that although fertility was counter-cyclical before 1970, with good economic times being associated with lower fertility, since then it has become pro-cyclical, with good economic times being associated with higher fertility.