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Journal Cover CESifo Economic Studies
  [SJR: 0.501]   [H-I: 19]   [15 followers]  Follow
   Hybrid Journal Hybrid journal (It can contain Open Access articles)
   ISSN (Print) 1610-241X - ISSN (Online) 1612-7501
   Published by Oxford University Press Homepage  [364 journals]
  • The Monetary Value of Family Policy Measures in Germany over the Life
           Cycle: Evidence from a Dynamic Microsimulation Model
    • Authors: Bonin H; Reuss K, Stichnoth H.
      Abstract: This article quantifies the monetary value of key family policy measures in Germany over the life cycle. The analysis is based on a dynamic microsimulation model that combines simulated life cycles for a base population from the 2009 wave of the German Socio-Economic Panel with a comprehensive tax-benefit model. The results indicate that households in Germany receive family- and marriage-related transfers of considerable monetary value, yet there is also substantial variation behind the population average. Moreover, it is shown that some measures, such as income tax splitting, may make individuals in fact worse off, in financial terms, over the long course, as a result of negative labour supply incentives which are reinforced through detrimental effects on human capital accumulation (JEL codes: C53, C54, J12, J13, J22).
      PubDate: 2016-10-21
  • When Rationing Plays a Role: Selection Criteria in the Italian Early
           Childcare System*
    • Authors: Del Boca D; Pronzato C, Sorrenti G.
      Abstract: Our study explores the impact of selection criteria on the costs and benefits of early childcare for mothers’ employment, child development, and municipalities’ revenues by exploiting the selection criteria of different Italian municipalities in assigning childcare slots. In Italy, only around 13% of the demand for public childcare coverage is met, and the number of applications exceeds the number of places in childcare services in all regions. In conditions of excess demand, municipalities introduce selection criteria to give priority to families for whom access to public childcare appears to be more valuable. We analyse through simulations the consequences of introducing different selection criteria, using a representative Italian sample of households with children under 3 years of age (European Survey on Living and Income Conditions), and the selection criteria employed by six representative Italian municipalities. Our results have interesting policy implications. The benefits for child outcomes and mothers’ employment are stronger in municipalities where the selection criteria give priority to more disadvantaged households. However, in these contexts, selected households are less able to contribute to the financial sustainability of the service.
      PubDate: 2016-04-20
  • Unconditional Child Benefits, Mothers’ Labor Supply, and Family
           Well-Being: Evidence from a Policy Reform
    • Authors: Hener T.
      Abstract: In many parts of the developed world, governments devote a significant share of public funds to unconditional family cash transfers in an attempt to promote the economic well-being of households. But how successful are such policies? Germany has one of the world’s most generous child benefit systems, which was subject to a major reform in the mid-1990s. This article exploits the reform using a difference-in-differences approach. The main result suggests that child benefits lead to a substantial reduction of mothers’ labor supply at the intensive margin. The result implies that the policy in question is less effective at improving family finances and, consequently, expensive for the taxpayer because increases in benefit receipt are accompanied by negative labor supply responses. However, suggestive evidence seems to support that parents improve their time investment in children.
      PubDate: 2016-03-31
  • Formal Child Care and Family Structure: Theory and Evidence
    • Authors: Bauernschuster S; Borck R.
      Abstract: This article studies the effect of child care provision on family structure. We present a model of a marriage market with positive assortative matching, where in equilibrium, the poorest women stay single. Couples have to decide on the number of children and spousal specialization in home production of public goods and child care. We then study how child care provision affects the equilibrium. Due to specialization in home production, the incentive to use child care is smaller for married mothers than for single mothers. We show that this increases the number of single mothers and the divorce rate. Using survey data from Germany, we present suggestive empirical evidence consistent with this finding. (JEL codes: J12 and J13).
      PubDate: 2015-11-30
  • Two Steps Forward—One Step Back? Evaluating Contradicting Child
           Care Policies in Germany
    • Authors: Müller K; Wrohlich K.
      Abstract: We apply a structural model of mothers’ labor supply and child care choices to evaluate the effects of two child care reforms in Germany that were introduced simultaneously. A legal claim to subsidized child care became effective for children aged 1 year or older. Moreover, a new child care allowance (‘Betreuungsgeld’) came into effect. It is granted to families who do not use publicly subsidized child care. Both reforms target children of the same age group and are unconditional on parents’ income or employment status, yet affect mothers’ incentives for labor supply and child care choices differently. Our model facilitates estimating the joint reform impact as well as disentangling the individual effects of both policies. A new comprehensive data set with information on labor supply, the use of and potential access restrictions to various child care arrangements is used. We find the overall effect of both reforms to be small but positive as far as mother’s labor supply and the use of formal care is concerned. The legal claim’s positive impact on mothers’ labor supply and the use of formal child care is largely offset by the negative effect on both outcomes resulting from the introduction of the child care allowance. (JEL codes: J22, J18, and H31)
      PubDate: 2015-11-04
  • Early Birds in Day Care: The Social Gradient in Starting Day Care and
           Children’s Non-cognitive Skills
    • Authors: Peter FH; Schober PS, Spiess KC.
      Abstract: In recent years, almost all children below school age in Western industrialized countries have some experience of attending day care institutions. However, the age at which children enter day care and therefore the overall time spent in day care varies substantially. We investigate the potential impact of later day care entry on the social and emotional behaviour of children, one important aspect of non-cognitive skills. Based on the English sample of the Millennium Cohort Study, we analyse how later entries are associated with children’s development at the age of 5 and 7 years, using propensity score techniques. We find clear evidence of significant associations at the age of 7 years: Later day care entry appears to increase children’s peer problems and to reduce prosocial behaviour. We find hardly any associations with the emotional development of children. Children with low-educated mothers and those from families with a household income below the poverty line are most strongly affected, which provides support for a social gradient in how earlier day care entry impacts non-cognitive skills. (JEL codes: J13, I21.)
      PubDate: 2015-10-24
  • Fixed-Term Employment and Fertility: Evidence from German Micro Data
    • Authors: Auer W; Danzer N.
      Abstract: We study the short- to medium-run effects on subsequent fertility of starting a career with a fixed-term contract. We focus on career start since we expect that temporary contracts and their inherent economic uncertainty imply a path dependence that might have spill-over effects on other domains of life. Our empirical analysis is based on rich data from the German Socio-Economic Panel, which provides comprehensive information about individuals’ labour market history as well as about their fertility. Our main results are the following. Women (i) tend to postpone first birth due to fixed-term employment at labour market entry and (ii) reduce the number of children in the first 10 years after graduation. These associations are strongest in the subsample of native women with at least vocational training. (iii) In contrast, we find no significant correlations for men. We argue that these findings are robust to potential endogeneity threats.
      PubDate: 2015-07-02
School of Mathematical and Computer Sciences
Heriot-Watt University
Edinburgh, EH14 4AS, UK
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