Invariant co-ordinate selection

Summary.  A general method for exploring multivariate data by comparing different estimates of multivariate scatter is presented. The method is based on the eigenvalue–eigenvector decomposition of one scatter matrix relative to another. In particular, it is shown that the eigenvectors can be used to generate an affine invariant co-ordinate system for the multivariate data. Consequently, we view this method as a method for invariant co-ordinate selection . By plotting the data with respect to this new invariant co-ordinate system, various data structures can be revealed. For example, under certain independent components models, it is shown that the invariant co- ordinates correspond to the independent components. Another example pertains to mixtures of elliptical distributions. In this case, it is shown that a subset of the invariant co-ordinates corresponds to Fisher's linear discriminant subspace, even though the class identifications of the data points are unknown. Some illustrative examples are given.     

Robust Inference for Near-Unit Root Processes with Time-Varying Error Variances

The autoregressive Cauchy estimator uses the sign of the first lag as instrumental variable (IV); under independent and identically distributed (i.i.d.) errors, the resulting IV t-type statistic is known to have a standard normal limiting distribution in the unit root case. With unconditional heteroskedasticity, the ordinary least squares (OLS) t statistic is affected in the unit root case; but the paper shows that, by using some nonlinear transformation behaving asymptotically like the sign as instrument, limiting normality of the IV t-type statistic is maintained when the series to be tested has no deterministic trends. Neither estimation of the so-called variance profile nor bootstrap procedures are required to this end. The Cauchy unit root test has power in the same 1/T neighborhoods as the usual unit root tests, also for a wide range of magnitudes for the initial value. It is furthermore shown to be competitive with other, bootstrap-based, robust tests. When the series exhibit a linear trend, however, the null distribution of the Cauchy test for a unit root becomes nonstandard, reminiscent of the Dickey-Fuller distribution. In this case, inference robust to nonstationary volatility is obtained via the wild bootstrap.     

Union Bargaining,Wage Differentials and Employment

Abstract. Reviewing empirical studies concerning the corporatism-flexibility-performance nexus the paper discusses decentralized and centralized bargaining systems. Revenue pay systems, concession bargaining and two-tier wage systems as means to enhance wage flexibility at the firm level are also considered. Both theoretical and empirical evidence is presented, showing that unions are bargaining for greater employment security for the already employed (the insiders). In return, unions are ready to accept greater wage flexibility and even wage decreases. By contrast, the insider-outsider theory does suggest how unions may accentuate involuntary unemployment, because there may be ways in which a union can help to raise the wages of the insiders without reducing their chances of continued employment.     

The Ambivalent Appraisal of Job Demands and the Moderating Role of Job Control and Social Support for Burnout and Job Satisfaction

Social Indicators Research - Within an extended challenge–hindrance framework, it is assumed that job demands are subjectively appraised both as challenges (that is, as working conditions...     

The East German Wage Structure in the Transition to a Market Economy

ABSTRACT: An important question for the development of the East German labour market in the transition to a market economy is whether wage differentials by qualification, industry or region (which were relatively small in the former GDR) adjust to those in market economies which are more in line with differences in productivities and economic conditions. We estimate empirical earnings functions to quantify the contribution of various important factors shaping the earnings distribution in the East German transition process. Estimation is based on the first six waves of the Labour Market Monitor which is a representative panel data set of the East German working-age population covering the period 1990 to 1992. The specification of the estimated earnings functions is motivated by the various hypotheses of the development of the East German wage structure in the transformation process. Although we find some similarities with the existing wage structure in West Germany, the East German wage structure still differs in some important dimensions.     

Verzerrte Beteiligung

To cope with the erosion of civic engagement, the expansion of public participation is postulated an efficacious remedy. Many authors notice the drawback of low turnout with unequal and biased participation compared to institutional elections. As the very first, this article not only emphasizes biased participation, but empirically analyses the biased output of participation methods.The example is the referendum on Stuttgart 21 (S21) in the year 2011. The counterfactual result for nonvoters is predicted by linking macro and micro-data. Estimations on municipality-level show participation-bias above elections, but below petitions and demonstrations. The counterfactual result predicts an enhanced rejection of S21.     

More Jobs Through Less Employment Protection? Evidence for West Germany

ABSTRACT: In reaction to growing criticism of the allegedly negative employment effects of job protection regulations (lay-off and dismissal restraints), the West German government in 1985 introduced new legislation facilitating the conclusion of temporary (i.e. fixed-term) work contracts in order to stimulate employment growth (‘Employment Promotion Act 1985‘AZPA). The research unit ‘Labour Market and Employment‘ at the WZB has evaluated the employment and labour market impact of the new legislation for the period 1985-1988, and apart from providing a detailed analysis of the socio-economic and institutional diversity of job arrangements covered by the category of temporary (i.e. fixed-term) employment, the project‘s focus has been on the impact of minor changes in the institutional frame- work as effected by the EPA on firms‘ employment policies, as well as on the overall level of employment. Results show that like in most other European countries the temporary work force in Germany has considerably grown over the past years in both absolute and relative terms, this increase, however, being largely due to cyclical factors as well as medium-term structural changes on the supply and demand side of the labour market rather than to changes in the regulatory framework as effected by the EPA. The impact of the new regulations on firms‘ hiring decisions and on the overall number of hirings in the total economy have to be regarded as rather modest, in fact amounting to not more than an estimated 25,000 additional hires per year or roughly 0.5|X% of all employment contracts concluded in the private sector. This marginal positive impact on firms‘ employment decisions, however, is counterbalanced by unintended substitution effects and an increase in involuntary quits arising from them when labour demand declines. Even under the overall positive employment development given in the period under investigation the net employment effects of the EPA temporary work legislation thus are shown to be at best marginal. In case of a deterioration of the overall economic situation, however, the increase in temporary job arrangements supported by the new legislation is likely to lead to accelerated workforce adjustments by firms and thus over time to result in a depression of the overall level of employment. From a theoretical point of view, the findings suggest that measures aiming at de-regulating labour relations such as the EPA largely fail to modify essential behavioral parameters of economic actors in economic environments which for decades have adjusted to a relatively high level of welfare state regulation, as has been the case in Western Germany.     

Continuity of f-projections and applications to the iterative proportional fitting procedure*

This paper proves continuity of f-projections and the continuous dependence of the limit matrix of the iterative proportional fitting procedure (IPF procedure) on the given matrix as well as the given marginals under certain regularity constraints. For finite spaces, the concept of f-projections of finite measures on a compact and convex set is introduced and continuity of f-projections is proven. This result is applied to the IPF procedure. Given a nonnegative matrix as well as row and column marginals the IPF procedure generates a sequence of matrices, called the IPF sequence, by alternately fitting rows and columns to match their respective marginals. The procedure is equivalent to cyclic f-projections. If the IPF sequence converges, the application of the continuity of f-projections yields the continuous dependence of the limit matrix on the given matrix. By generalized convex programming and under some constraints, it is shown that the limit matrix of the IPF sequence continuously depends not only on the given matrix but also on the marginals.     

Examining educational inequalities in two national systems: a comparison of the North African second generation in France and the Mexican second generation in the United States

This paper aims to compare the educational outcomes of children of immigrants in France and in the United States to highlight the ethnic educational inequalities in both countries. The comparison focuses on children from two groups: North Africans in France and Mexicans in the United States. By using two longitudinal datasets, the French Educational Panel Survey and Add Health, we examine aspirations, expectations, and secondary attainment in the two contexts. We explore in particular the role of parental education on attainment. Immigrant families have high educational aspirations in both contexts. North-African families express higher aspirations than native French with similar background, while there are no significant differences between second-generation Mexicans and the majority group net of parental education. Second-generation children are disadvantaged in school in both countries; they are more likely to drop out and less likely to graduate from high school, but most of the disadvantage is related to their social background. Net of social background, the Mexican second generation does not differ from the majority group while the North African second generation is more likely to get the French high school diploma than their peers of French origins, in line with their high aspirations. However, North Africans are more likely to receive the technological baccalauréat than the general baccalauréat.