Brian Nolan, Juan C. Palomino, Philippe Van Kerm, Salvatore Morelli, 19 September 2020

Whether and how much intergenerational transfers contribute to wealth inequality is still subject to debate. This column analyses household survey data on inheritance and gifts inter vivos in France, Germany, Great Britain, Ireland, Italy, Spain, and the US to relate current household wealth levels and inequality to the receipt of intergenerational wealth transfers. In these countries, large transfers increase overall wealth inequality. Strengthening taxation capacity and instating lifetime capital acquisitions tax for gifts and inheritances may help counter the dis-equalising effect of intergenerational transfers.

Sebastian Blesse, Massimo Bordignon, Pierre C Boyer, Piergiorgio Carapella, Friedrich Heinemann, Eckhard Janeba, Anasuya Raj, 18 August 2020

The ongoing Covid-19 crisis has the potential to change the institutional design of the European Union (EU). This column analyses survey data asking parliamentarians from France, Italy, and Germany about their stances on a broad range of reform issues covering fiscal and monetary policies as well as EU governance mechanisms. It finds that in general, party membership is quantitatively more important than nationality in determining political stances. Further, while national parliaments still differ on many policies, a broader consensus emerges for reforms on EU institutions such as providing the EU parliament with the right of proposing new legislation.

Cecile Gaubert, Oleg Itskhoki, 14 August 2020

Large firms play a pivotal role in international trade, shaping, at least in parts, the export patterns of their home countries This column studies the role of such individual superstar firms and their specific know-how and managerial talent in determining a country’s comparative advantage. Guided by a framework it finds that in France, sectors with more superstar firms export more compared to average sectors. The contribution of superstar firms to exports is particularly pronounced in the most export-intensive sectors. However, over the medium to long run, exports of such sectors tend to fall faster and reverse to the mean.

Marc Ivaldi, Jiekai Zhang, 10 August 2020

Television channels face a trade-off between the quality service (and number of viewers) and the revenue generated by advertisements. The market is said to be two-sided, with TV channels providing a platform through which advertisers and consumers are brought together during commercial breaks. This column examines the effects of the merge between two digital TV channels in France, and the regulatory intervention, on the quality of programming for viewers and the availability and cost of advertising space for commercial advertisers. 

Marcin Wolski, Patricia Wruuck, 05 August 2020

The COVID-19 crisis has had a substantial impact on labour markets throughout Europe. This column uses new data sources based on Google Trends reports in order to investigate the speed of transmission of the crisis into individuals’ concerns about becoming unemployed. The results indicate that this transmission is linked to corporate resilience. A stronger financial position of firms to withstand liquidity shortfalls may have helped to cushion the deterioration in job market sentiment during the outbreak of the pandemic, suggesting the importance of bolstering liquidity as a way of sheltering jobs. 

Philippe Andrade, Erwan Gautier, Eric Mengus, 04 August 2020

According to macroeconomic theory, managing inflation expectations is crucial for stabilising the economy. This is particularly true in times of crisis, when the nominal interest rate hits its lower bound. This column provides new evidence from France on how the inflation expectation channel operates in terms of consumer spending. The results suggest that households make consumption decisions based on the broad inflation regime that they expect, rather than with regards to the precise inflation forecast.

Jean Lacroix, Pierre-Guillaume Méon, Kim Oosterlinck, 18 July 2020

Rising populism has raised concerns that democracies may give in to authoritarian pressure. On 10 July 1940, exactly 80 years ago, the French parliament passed an enabling act granting full power to Marshal Philippe Pétain. Analysing how the Members of Parliament voted, this column shows that MPs belonging to a pro-democratic dynasty were more likely to oppose the act. Dynastic politicians may contribute to stabilising democracies by better resisting peer pressure.

Jean Benoit Eymeoud, Paul Vertier, 22 May 2020

While decades of research have investigated the reasons behind the underrepresentation of women in politics, uncovering discriminatory behaviours of voters remains a difficult task. This column examines the voting outcomes of French departmental elections in 2015, which required candidates to run in mixed-gender pairs, and isolates discriminatory behaviour of right-wing voters. Right-wing parties lost votes when the woman’s name appeared first on the ballot. However, the discriminatory effect disappears where information about the candidates is available on the ballot.

Pierre Cahuc, Jérémy Hervelin, 28 April 2020

It is widely believed that apprenticeships lead to better employment outcomes. This column presents the results of a field experiment conducted in France to show that apprentices do not perform significantly better than vocational students when they look for jobs outside the firm in which they trained. This means that the positive effects of apprenticeship on youth employment come from the retention of apprentices in their training firms. If the effectiveness of apprenticeship is the creation of better matches between labor market entrants and jobs, policies should focus more on the collaboration between schools and public employment services.

Stephanie Ettmeier, Chi Hyun Kim, Alexander Kriwoluzky, 09 April 2020

The ongoing COVID-19 pandemic in Europe is severe and spreads economic uncertainty. This column explores the evolution of financial market participants’ expectations during the COVID-19 pandemic, estimating yield curves of bonds in France, Germany, Italy, and Spain. The authors carry out an event study to investigate the potential impact of European fiscal and monetary policy measures on these yields. The results suggest that policy measures must be large and coordinated on the European level, and that fiscal and monetary policy must act jointly to fight the pandemic’s negative economic consequences

Francis Kramarz, Julien Martin, Isabelle Mejean, 11 December 2019

Economists continue to disagree about whether international trade exacerbates or diminishes volatility. This column presents firm-level evidence from French exporters and their European trading partners over 15 years to show that firm-level volatility increases individual-level and aggregate-level volatility. High concentration among buyers as well as suppliers can amplify these shocks.

Declan Costello, Annika Eriksgård Melander, Martin Hallet, 22 November 2019

Over the past ten years there has been a substantial rise in income per capita differences between Germany and France.However, it is not a given that the German economy will continue to outperform the French one, and indeed the picture has changed during 2019. This column argues that structural divergences between member states in the euro area contributed to nominal and real divergences, and suggests what can be done to foster convergence between the two countries. 

Joan Costa-Font, Belén Sáenz de Miera, 20 October 2019

Changes in working hours and the associated time and energy consumed during work can exert an important influence on people’s fitness. However, the effects of such changes on health behaviour and obesity are not well understood. This column examines the effects of a 2001 French national reform that reduced working hours on employee obesity and overweight. Although reduced working times could, in theory, be used for health-promoting activities, in practice it had different effects on white- and blue-collar workers. Policies to reduce working hours alone do not necessarily produce better fitness for everyone.

Yasmine Bekkouche, Julia Cagé, 14 September 2019

There is growing concern that money has corrupted politics. This column uses data from French elections since 1993 to show that an increase in spending per voter has consistently increased a candidate’s vote share. Caps on spending may increase this impact, as marginal effects are large. The price of a vote varies widely, and is most expensive for the extreme right. 

Mara Squicciarini, 18 August 2019

Religion has had a complex relationship with technological progress throughout history, but there is scant empirical evidence on how conservative religious values may have affected the spread of new ideas and, by extension, economic development. This column examines the influence of the Catholic Church on technical education in France during the Second Industrial Revolution. It finds that areas with higher ‘religiosity’ had lower levels of industrial and economic development, suggesting that conservative religion can hamper economic development when it prevents primary schools from adopting technical education.

Laurence Boone, 26 July 2019

France has surprisingly low social mobility. OECD chief economist Laurence Boone tells Tim Phillips why this is the case, how the problem fuels the gilets jaunes protests, and what can be done about it.

Agnès Bénassy-Quéré, Olivier Blanchard, Laurence Boone, Gilbert Cette, Chiara Criscuolo, Anne Epaulard, Sébastien Jean, Margaret Kyle, Philippe Martin, Xavier Ragot, Alexandra Roulet, David Thesmar, 24 July 2019

In September 2016, the European Council invited all euro area members to set up a National Productivity Board to focus on productivity and competitiveness. This column summarises the main findings of the first report of the Conseil National de Productivité, which analyses the causes of the French productivity slowdown that are common to other OECD countries and those that are specific to France. It also proposes a definition of competitiveness that should be useful for euro area macroeconomic policy debates and explains why current account imbalances in the euro area are both a sign of deficient adjustment mechanisms and a cause of concern.

Pierre Cahuc, Franck Malherbet, Julien Prat, 11 June 2019

Standard economic models predict that employment protection legislation reduces both job destruction and job creation, with the negative impact on job creation caused by the anticipation of separation costs. This column shows that in France, this anticipation effect not only plays a key role in reducing job creation but also increases job destruction among low-skilled workers, an effect that is amplified by the presence of the minimum wage. This mechanism implies that job protection is strongly detrimental to employment in the French context.

Clémence Berson, Morgane Laouénan, Emmanuel Valat, 27 April 2019

Hiring discrimination against ethnic minorities remains an important issue in most industrialised countries, but few tools have proven their effectiveness in fighting this discrimination. Based on an original correspondence study in France, this column argues that the organisation of recruitment has a large impact on discrimination.The findings suggest that companies that centralise HR practices across establishments are less likely to discriminate against minority ethnic applicants in the first round of selection.

Al Slivinski, Nathan Sussman, 20 March 2019

The problem of tax compliance is as old as the levying of taxes. Innovations in tax administration that induce high compliance rates at reasonable cost are extremely important to governments. This column demonstrates how the taille, a tax collection mechanism from medieval Paris, raised compliance by turning the social cost of tax evasion into a private one. It offers a tax collection model that is still relevant to governments today.

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