Financial Development,Institutional Quality and Poverty Reduction: Worldwide Evidence

Social Indicators Research - There is a burgeoning literature on wealth in the rich world. It mainly focuses on the top. This paper shows that assets can also matter for the analysis of poverty and...     

The labor market costs of conflict: closures, foreign workers, and Palestinian employment and earnings

In this paper, we provide a lower bound estimate of the labor market costs of the Israeli–Palestinian conflict. The conflict is quantified by the number of overseas foreign workers in the Israeli labor market and the frequency of temporary closures of the West Bank and Gaza Strip. IV estimates, which exploit a source of exogenous variation in the number of overseas foreign workers, yield significant negative effects of the conflict on Palestinian employment rates in Israel and monthly earnings. Our cost-of-conflict estimates are also relevant for the literature on the economics of immigration.     

The role of trust and contracts in the internationalization of technology-intensive Born Globals

The purpose of this paper is to study the roles of trust and contracts in technology-intensive Born-Global firms (BGs). By definition these firms compete in the area of knowledge and cutting-edge innovation, use external resources, and internationalize at inception or soon thereafter. For entering global markets successfully, these firms typically need partners. However, attracting them requires disclosing critical knowledge, and thus BGs encounter the risk of losing their potential competitive advantage. Their global business environment is very competitive and dynamic, therefore traditional ways of operating may be too time-consuming to manage these risks. Consequently, we argue that for technology-based BGs, the role of trust and contracts are closely intertwined. The paper puts forward three propositions that highlight the roles of trust and contracting for technology-intensive BGs.     

Decomposition of the Shrinking Middle-class and Directional Mobility in Finland 1995–2012

This paper investigates the middle-class decline in Finland from 1995 to 2012. The purpose is to examine how changes in the probabilities of belonging to the middle class in different socioeconomic groups have contributed to the middle-class decline while taking into account changes in the relative sizes of the groups. A decomposition analysis indicates that most of the decline has been due to the probability effect, especially among the least-educated population. Changes in age demographics and educational structure have contributed to the decline. The results of the decomposition are supported by mobility results, which indicate that individuals with a tertiary (no secondary) degree have been subject to upward (downward) mobility over the observed time period. In conclusion, the middle-class decline and polarization in Finland are asymmetrically reflected in different education groups. The highly educated have climbed up the income distribution, while the least educated have fallen.