What explains the rise in CEO pay in Germany? A Panel Data Analysis for 1977-2009

The compensation of executive board members in Germany has become a highly controversial topic since Vodafone's hostile takeover of Mannesmann in 2000 and it is again in the spotlight since the outbreak of the financial crisis of 2009. Based on unique panel data evidence of the 500 largest firms in Germany in the period 1977-2009 we test two prominent hypothesis in the literature on executive pay: the manager power hypothesis and the efficient pay hypothesis. We find support for the manager power hypothesis for Germany as executives tend to be rewarded when the sector is doing well rather than the firm they work for. We reject, however, the efficient pay hypothesis as CEO pay and the demand for managers increases in Germany in difficult times when the typical firm size shrinks. We find further that domestic and global competition for managers has contributed to the rise in executive pay in Germany. Lastly, we show that CEOs in the banking sector are provided with incentives for performance and that the great recession of 2009 acted as a disciplining devise on CEO pay in Germany

What Explains the Rise in CEO Pay in Germany? A Panel Data Analysis for 1977-2009

The compensation of executive board members in Germany has become a highly controversial topic since Vodafone's hostile takeover of Mannesmann in 2000 and it is again in the spotlight since the outbreak of the financial crisis of 2009. Based on unique panel data evidence of the 500 largest firms in Germany in the period 1977-2009 we test two prominent hypotheses in the literature on executive pay: the manager power hypothesis and the efficient pay hypothesis. We find support for the manager power hypothesis for Germany as executives tend to be rewarded when the sector is doing well rather than the firm they work for. We reject, however, the efficient pay hypothesis as CEO pay and the demand for managers increases in Germany in difficult times when the typical firm size shrinks. We find further that domestic and global competition for managers has contributed to the rise in executive pay in Germany. Lastly, we show that CEOs in the banking sector are provided with incentives for performance and that the great recession of 2009 acted as a disciplining devise on CEO pay in Germany

Gender and Ethnicity-Married immigrants in Britain

In this paper we investigate economic activity of female immigrants and their husbands in Britain. We distinguish between two immigrant groups: foreign born females who belong to an ethnic minority group and their husbands, and foreign born females who are white and their husbands. We compare these to native born white women and their husbands. Our analysis deviates from the usual mean analysis and investigates employment, hours worked and earnings for males and females, as well as their combined family earnings, along the distribution of husbands' economic potential. We analyse the extent to which economic disadvantage may be reinforced on the household level. We investigate to what extent disadvantage can be explained by differences in observable characteristics. We analyse employment assimilation for all groups over the migration cycle. Our main results are that white female immigrants and their husbands are quite successful, with an overall advantage in earnings over white native born both individually and at the household level. On the other hand, minority immigrants and their husbands are less successful, in particular at the lower end of the husband's distribution of economic potential. This is mainly due to low employment of both genders, which leads to disadvantage in earnings, intensified at the household level. Only part of this differential can be explained by observable characteristics. Over the migration cycle, the data suggests that employment differentials are large at entry for white immigrant females, and even larger for minority females, but the gap to the native born closes. Assimilation is more rapid for white females.Migration, Ethnicity, Attitudes

Immigrants in the British Labour Market

The main objective of this paper is to provide a comprehensive description of the economic outcomes and performance of Britain's immigrant communities today and over the last two decades. We distinguish between males and females and, where possible and meaningful, between immigrants of different origin. Our comparison group are white British born individuals. Our data source is the British Labour Force Survey (LFS). We first provide descriptive information on the composition of immigrants in Britain, and how this has changed over time, their socio-economic characteristics, their industry allocation, and their labour market outcomes. We then investigate various labour market performance indicators (labour force participation, employment, wages, and self-employment) for immigrants of different origin, and compare them to British-born whites of same age, origin, and other background characteristics. We find that over the last 20 years, Britain's immigrant population has changed in origin composition, and has dramatically improved in skill composition - not dissimilar from the trend in the British born population. We find substantial differences in economic outcomes between white and ethnic minority immigrants. Within these groups, immigrants of different origin differ considerably with respect to their education and age structure, their regional distribution, and sector choice. In general, white immigrants are more successful in Britain, although there are differences between groups of different origin. The investigation shows that immigrants from some ethnic minority groups, and in particular females, are particularly disadvantaged, with Pakistanis and Bangladeshis at the lower end of this scale.International Migration, Economic Performance

Gender and Ethnicity – Married Immigrants in Britain

In this paper we investigate the economic activity of married or cohabiting female immigrants in Britain. We distinguish between two immigrant groups: foreign-born females who belong to an ethnic minority group and their husbands, and foreign-born white females and their husbands. We compare these to native-born white women and their husbands. Our analysis deviates from the usual mean analysis and investigates employment, hours worked and earnings for males and females, as well as their combined family earnings, along the distribution of husbands’ economic potential. We analyse the extent to which economic disadvantage may be reinforced at the household level and investigate to what extent it can be explained by differences in observable characteristics. We find that white female immigrants and their husbands have an overall advantage in earnings over white native born, both individually and at the household level. Minority immigrants do less well, in particular at the lower end of the husband’s economic potential distribution. This is mainly due to the low employment of both genders, which leads to a disadvantage in earnings, intensified at the household level. Only part of this differential can be explained by observable characteristics.

Lebanon on the edge. EPC Policy Brief 26 April 2018

Lebanon has frequently been praised for its resilience in the face of regional turmoil. But behind its solid façade, there are structural weaknesses – a polarised political class, dysfunctional institutions, deteriorating living standards, and social divisions – that threaten the country’s stability in the long term. On the eve of the long-delayed parliamentary elections, this paper takes a closer look at the political dynamics at play in Lebanon and assesses whether political change is imminent

The European External Investment Plan in the Southern Neighbourhood: how to make it work. EPC Commentary, 7 December 2017

The EU is putting an increasing emphasis on blended finance for development. However, analysis suggests that its use should not be seen as a panacea, but as part of a coordinated effort to implement a broader reform agenda. The EU’s External Investment Plan (EIP), aimed at boosting investment in Africa and the EU neighbourhood, is now fully operational.1 The key areas for the plan’s implementation (investment windows) have been approved and potential projects presented.2 While mostly aiming to contribute to achieving the Sustainable Development Goals (SDGs), the EIP was also developed to tackle the ’root causes’ of the growing migration flows to the EU. The objective is to create jobs and stimulate growth in target regions, with the presumption that this would reduce migration flows in the short to medium term

The Impact of Immigration on the UK Labour Market

This paper provides an empirical investigation of the way immigration affects labour market outcomes of native born workers in the UK, set beside a theoretical discussion of the underlying economic mechanisms. We discuss the problems that may arise in empirical estimations, and suggest ways to address these problems. Our empirical analysis is based on data from the British Labour Force Survey. We show that the overall skill distribution of Britain's immigrant workforce is remarkably similar to that of the native born workforce. We investigate the impact of immigration on employment, participation, unemployment and wages of the resident population. We find no evidence that immigration has overall effects on any of these outcomes at the aggregate level. There is some evidence that effects are different for different educational groups.Migration, Survey, Attitudes

The Local Labour Market Effects of Immigration in the UK

This paper provides an empirical analysis of the employment effects of immigration using UK data. We show that on a theoretical level, the effects of immigration on labour market outcomes depend on assumptions regarding the number of goods produced in the economy, and whether these goods are tradable or not. We then discuss the problems that may arise in empirical estimations, and suggests ways to address these problems. Our empirical analysis is based on data from the Labour Force Survey. There is some evidence that immigration affects employment prospects negatively; however, estimated effects are not significantly different from zero.immigration, labour market

Racial Harassment, Ethnic Concentration and Economic Conditions

In this paper, we analyse the association between spatial concentration of ethnic minorities, and racial harassment. Ethnic concentration relates to racial harassment through at least three channels: hostility in attitudes of majority individuals that find expression in harassment behaviour, the probability of minority individuals meeting majority individuals, and the cost of expressing hostility aggressively. Harassment can thus not simply be modeled as a stronger form of hostility. Using unique data for Britain, we show that, in area of higher local ethnic concentration, experience of harassment is lower, even though hostility on the side of the majority population is not.economics of minorities, interracial relations