Does deregulation decrease unemployment? An empirical analysis of the Spanish labour market

Spain underwent two major labour reforms in 2010 and 2012 under the assumption that deregulating the labour market and decentralizing collective bargaining would automatically reduce unemployment (deregulation hypothesis). This article highlights the impact of demand and the sectoral structure of the economy to explain the behaviour of this variable (structural hypothesis). Analysing subnational panel data, the authors assess the capacity of these two hypotheses to explain unemployment trends. Their results cast doubt on the deregulation hypothesis and indicate the importance of cyclical and structural factors.     

Causal inference in outcome-dependent two-phase sampling designs

Summary.  We consider estimation of the causal effect of a treatment on an outcome from observational data collected in two phases. In the first phase, a simple random sample of individuals is drawn from a population. On these individuals, information is obtained on treatment, outcome and a few low dimensional covariates. These individuals are then stratified according to these factors. In the second phase, a random subsample of individuals is drawn from each stratum, with known stratum-specific selection probabilities. On these individuals, a rich set of covariates is collected. In this setting, we introduce five estimators: simple inverse weighted; simple doubly robust; enriched inverse weighted; enriched doubly robust; locally efficient. We evaluate the finite sample performance of these estimators in a simulation study. We also use our methodology to estimate the causal effect of trauma care on in-hospital mortality by using data from the National Study of Cost and Outcomes of Trauma.     

From Rats to Riches: Game Playing and the Production of the Capitalist Self

This article examines Cashflow, a board game that readers of best-seller financial success books play in order to learn the basics of investing and to enhance their financial skills. Cashflow is a fictitious market, in which players buy and sell assets with the ultimate goal of becoming “financially free.” Based on participant observation of clubs in the United States and Argentina, and drawing on the ideas of performativity and governmentality, the article focuses on four topics. First, the role of the game in establishing definitions of what it means to be rich. Second, the development of calculative tools. Third, players’ work on the self, through which they explore what may be fostering or limiting their chances of financial success. Finally, the work done by players to fit the game with reality, which allows the game to be used in different national economic contexts.     

A Markov chain Monte Carlo algorithm for multiple imputation in large surveys

Important empirical information on household behavior and finances is obtained from surveys, and these data are used heavily by researchers, central banks, and for policy consulting. However, various interdependent factors that can be controlled only to a limited extent lead to unit and item nonresponse, and missing data on certain items is a frequent source of difficulties in statistical practice. More than ever, it is important to explore techniques for the imputation of large survey data. This paper presents the theoretical underpinnings of a Markov chain Monte Carlo multiple imputation procedure and outlines important technical aspects of the application of MCMC-type algorithms to large socio-economic data sets. In an illustrative application it is found that MCMC algorithms have good convergence properties even on large data sets with complex patterns of missingness, and that the use of a rich set of covariates in the imputation models has a substantial effect on the distributions of key financial variables.     

Determinants of the Safety Performance of Private Multi-storey Residential Buildings in Hong Kong

Given the high population and development density in Hong Kong, building failures can result in catastrophic consequences. It is thus worthwhile identifying those dilapidated buildings, and this explains why the Hong Kong government has considered launching a mandatory building inspection scheme in the city. Apart from the measurement of building safeness, however, it is equally important to explore the major determinants of the safety performance of buildings. Such information can help the government and other related organizations to rationalize their subsidies offered for building improvement and to make more informed strategies of urban regeneration in Hong Kong. To this end, the safety performance of 429 private multi-storey residential buildings was measured in this study using the Building Safety and Conditions Index developed by The University of Hong Kong. It was then followed by an explanatory analysis which found that older buildings were less safe than large, modern buildings. More importantly, the co-existence of a property management agent and a statutory owners’ association delivered the best building safety performance, and in this respect was the optimum building management regime for private multi-storey buildings in Hong Kong. These findings pose significant policy implications for building safety and urban regeneration in Hong Kong.     

Reducing unemployment? Examining the interplay between active labour market policies

Active labour market policies (ALMP) are important tools that welfare states utilize to influence the labour market. This study analyses the macroeconomic effects of different types of ALMP spending on aggregate unemployment rates, and especially if there is evidence of interdependencies between policies. The types of policies scrutinized are public employment services (PES), training programs, public job creation and subsidized employment, where the PES is singled out as a crucial factor that moderates the effects of other types of labour market programs. The study examines 19 welfare states between 1985 and 2013, using error correction modelling to separate between short‐ and long‐term effects. The results indicate that PES, training and subsidized employment reduce unemployment in the short‐run, whereas PES and wage subsidies are associated with reduced unemployment when considering long‐term effects. However, PES is found to have indirect effects on other policy types and increased spending on PES is shown to reinforce long‐term effects of training programs.