WTP vs. WTA: Christmas Presents and the Endowment Effect

Using data on the valuation of Christmas gifts received by students in different fields at a German university, we investigate whether the endowment effect differs between students of economics and other respondents and whether it varies with the market price of the object under consideration. Our estimation results suggest that economics students have both, a significant lower WTP and WTA, indicating that existing studies on the efficiency loss of holiday gifts and experimental studies on the endowment effect that rely on data from economics students may be biased. The result further indicates that the endowment effect is independent of the market price of the object.loss aversion, endowment effect, Christmas presents, deadweight loss

WTP vs.WTA: Christmas Presents and the Endowment Effect

Using data on the valuation of Christmas gifts received by students in different fields at a German university, we investigate whether the endowment effect differs between students of economics and other respondents and whether it varies with the market price of the object under consideration.Our estimation results suggest that economics students have both, a significant lower WTP andWTA, indicating that existing studies on the efficiency loss of holiday gifts and experimental studies on the endowment effect that rely on data from economics students may be biased. The result further indicate that the endowment effect is independent of the market price of the object.Loss aversion, endowment effect, Christmas presents, deadweight loss

International Labor Migration, Economic Growth and Labor Markets – The Current State of Affairs

Even though European labor markets are characterized by high average unemployment, there is a shortage of high-skilled labor, leading many European economists to argue for an immigration policy directed at actively recruiting highly qualified workers from abroad. It has further been argued that an immigration policy that is tailored to attract young and economically successful migrants can alleviate some of the demographic burden associated with an aging population.We embed this discussion into a systematic classification of economic migration research according to its major conceptual and applied questions. The state of theoretical and empirical research on the migration decision, the literature on the economic performance of immigrants and their economic impact is reviewed briefly, proceeding along the lines of a clear conceptual framework. In addition, the paper discusses expectations on future migration flows and the policy options of immigration countries for dealing with these flows.Immigration, European labor markets, Immigration policy

Fiscal Effects of Minimum Wages: An Analysis for Germany

Against the background of the current discussion on the introduction of statutory minimum wages in Germany, this paper analyzes the potential employment and fiscal effects of such a policy. Based on estimated labor demand elasticities obtained from a structural labor demand model, the empirical results imply that the introduction of minimum wages in Germany will be associated with significant employment losses that are concentrated among marginal and low- and semi-skilled full-time workers. Even though minimum wages will lead to increased public revenues from income taxes and social security benefits, they will result in a significant fiscal burden, due to increased expenditures for unemployment benefits and decreased revenues from corporate taxes.minimum wages, employment, public budget, fiscal effects

Fiscal Effects of Minimum Wages – An Analysis for Germany

Against the background of the current discussion on the introduction of statutory minimum wages in Germany, this paper analyzes the potential employment and fiscal effects of such a policy. Based on estimated labor demand elasticities obtained from a structural labor demand model, the empirical results imply that the introduction of minimum wages in Germany will be associated with significant employment losses that are concentrated among marginal and low- and semi-skilled full-time workers. Even though minimum wages will lead to increased public revenues from income taxes and social security benefits, they will result in a significant fiscal burden, due to increased expenditures for unemployment benefits and decreased revenues from corporate taxes.Minimum wages, employment, public budget, fiscal effects

Brother Sun, Sister Moon: The Lunar Cycle, Sunspots and the Frequency of Births

Based on multivariate linear regression models, we analyze the effect of the lunar cycle and the number of sunspots occurring on a particular day on the number of births using social security data and controlling for a number of other potential confounders. The daily number of births between 1920 and 1989 have been calculated from the full sample of individuals who have been registered at least once in the German social security system. While the lunar cycle does not affect the number of births, the number of sunspots has a positive, albeit small eff ect on the number of births which is decreasing over time. The empirical results may be explained by medical technological progress making natural influences on births less important over time. This interpretation is supported by the results on the intertemporal influence of weekends and holidays on the frequency of daily births.Daily frequency of births; lunar cycle; sunspots

Evaluating the Labor-Market Effects of Compulsory Military Service

We identify the causal effect of compulsory military service on conscripts’ subsequent labor-market outcomes by exploiting the regression-discontinuity design of the military draft in Germany during the 1950s. Unbiased estimates of the effect of military service on lifetime earnings, wages, and employment are obtained by comparing men born before July 1, 1937 (the "White Cohort") who were exempted from compulsory military service to men who were born on or shortly after this threshold date and hence faced a positive probability of being drafted. We find that the putative earnings advantage and wage premium of those who served in the armed forces vanish when selection effects are taken into account.causal effect, quasi-experimental estimators, conscription

Do Guns Displace Books? – The Impact of Compulsory Military Service on Educational Attainment

Compulsory military service typically drafts young men when they are at the height of their learning ability. Thus, it can be expected to depress the demand for higher education since skill atrophy and the delayed entry into the civilian labor market reduce the returns to human-capital investments. Attending university, however, might open the possibility to avoid the draft, leading to an increase in the demand for tertiary education. To estimate the causal eff ect of conscription on the probability to obtain a university degree, we use a regression-discontinuity design that employs special regulations associated with the introduction of conscription in Germany in 1956. We estimate conscription to increase the probability of having a university degree.Regression discontinuity; conscription; career interruption; skill atrophy;TS2SLS

Mindestlöhne und das Entsendungsgesetz

In der Regierungskoalition streitet man sich derzeit darüber, ob gesetzliche Mindestlöhne eingeführt und das Entsendegesetz auf weitere Branchen ausgeweitet werden sollten. Welchen Einfluss hat die intensivere internationale Arbeitsteilung auf den Arbeitsmarkt? Welche Wirkungen haben Mindestlöhne und das Entsendegesetz in der Theorie und Empirie? Brauchen wir einen Mindestlohn? --

Active sitting with backrest support : is it feasible?

Ergonomics science recommends office chairs that promote active sitting to reduce sitting related complaints. Since current office chairs do not fulfil this recommendation, a new chair was developed by inverting an existing dynamic chair principle. This study compares active sitting on the inverted chair during a simulated computer based office task to two existing dynamic office chairs (n=8). Upper body stability was analysed using Friedman ANOVA (p=.01). Additionally, participants completed a questionnaire to rate their comfort and activity after half a working day. The inverted chair allowed the participants to perform a substantial range of lateral spine flexion (11.5°) with the most stable upper body posture (≤11mm, ≤2°, p≤0.01). The results of this study suggest that the inverted chair supports active sitting with backrest support during computer based office work. However, according to comfort and activity ratings, results should be verified in a future field study with 24 participants.ZHAW Zurich University of Applied SciencesAccepte