Firms' Main Market, Human Capital and Wages

Recent international trade literature emphasizes two features in characterizing the current patterns of trade: efficiency heterogeneity at the firm level and quality differentiation. This paper explores human capital and wage differences across firms in that context. We build a partial equilibrium model predicting that firms selling in more-remote markets employ higher human capital and pay higher wages to employees within each education group. The channel linking these variables is firms’ endogenous choice of quality. Predictions are tested using Spanish employer-employee matched data that classify firms according to four main destination markets: local, national, European Union, and rest of the World. Employees’ average education is increasing in the remoteness of firm’s main output market. Market–destination wage premia are large, increasing in the remoteness of the market, and increasing in individual education. These results suggest that increasing globalization may play a significant role in raising wage inequality within and across education groups

CloudFlex: A Flexible Parametric Model for the Small-Scale Structure of the Circumgalactic Medium

We present CloudFlex, a new open-source tool for predicting the absorption-line signatures of cool gas in galaxy halos with complex small-scale structure. Motivated by analyses of cool material in hydrodynamical simulations of turbulent, multiphase media, we model individual cool gas structures as assemblies of cloudlets with a power-law distribution of cloudlet mass $\propto m_{\rm cl}^{-\alpha}$ and relative velocities drawn from a turbulent velocity field. The user may specify $\alpha$, the lower limit of the cloudlet mass distribution ($m_{\rm cl,min}$), and several other parameters that set the total mass, size, and velocity distribution of the complex. We then calculate the MgII 2796 absorption profiles induced by the cloudlets along pencil-beam lines of sight. We demonstrate that at fixed metallicity, the covering fraction of sightlines with equivalent widths $W_{2796} < 0.3$ Ang increases significantly with decreasing $m_{\rm cl,min}$, cool cloudlet number density ($n_{\rm cl}$), and cloudlet complex size. We then present a first application, using this framework to predict the projected $W_{2796}$ distribution around ${\sim}L^*$ galaxies. We show that the observed incidences of $W_{2796}>0.3$ Ang sightlines within 10 kpc < $R_{\perp}$ < 50 kpc are consistent with our model over much of parameter space. However, they are underpredicted by models with $m_{\rm cl,min}\ge100M_{\odot}$ and $n_{\rm cl}\ge0.03$ $\rm cm^{-3}$, in keeping with a picture in which the inner cool circumgalactic medium (CGM) is dominated by numerous low-mass cloudlets ($m_{\rm cl}\lesssim100M_{\odot}$) with a volume filling factor ${\lesssim}1\%$. When used to simultaneously model absorption-line datasets built from multi-sightline and/or spatially-extended background probes, CloudFlex will enable detailed constraints on the size and velocity distributions of structures comprising the photoionized CGM.Comment: 22 pages, 7 figures. Submitted to AAS Journals, with minor modifications. Comments welcome. (1) Co-first authors who made equal contributions to this wor

A New International Division of Labor in Europe: Offshoring and Outsourcing to Eastern Europe

Europe is reorganizing its international value chain. I document these changes in Europe’s international organization of production with new survey data of Austrian and German firms investing in Eastern Europe. I show estimates of the share of intra-firm trade between Austria and Germany on the one hand and Eastern Europe on the other. Furthermore, I present empirical evidence of the drivers of the new division of labor in Europe. I find among other things that falling trade costs and falling corruption levels as well as improvements in the contracting environment in Eastern Europe are affecting the level of intra-firm imports from Eastern Europe. They are also favoring outsourcing over offshoring. Low organizational costs of hierarchies and large costs of hold-up (when there are no alternative investors in Old Europe or no alternative suppliers in Eastern Europe) are favoring offshoring over outsourcing. Tax holidays granted by host countries in Eastern Europe also mildly affect the organizational choice

From Ideas to Practice, Pilots to Strategy: Practical Solutions and Actionable Insights on How to Do Impact Investing

This report is the second publication in the World Economic Forum's Mainstreaming Impact Investing Initiative. The report takes a deeper look at why and how asset owners began to include impact investing in their portfolios and continue to do so today, and how they overcame operational and cultural constraints affecting capital flow. Given that impact investing expertise is spread among dozens if not hundreds of practitioners and academics, the report is a curation of some -- but certainly not all -- of those leading voices. The 15 articles are meant to provide investors, intermediaries and policy-makers with actionable insights on how to incorporate impact investing into their work.The report's goals are to show how mainstream investors and intermediaries have overcome the challenges in the impact investment sector, and to democratize the insights and expertise for anyone and everyone interested in the field. Divided into four main sections, the report contains lessons learned from practitioner's experience, and showcases best practices, organizational structures and innovative instruments that asset owners, asset managers, financial institutions and impact investors have successfully implemented

Organization of Multinational Activities and Ownership Structure

We develop a model in which multinational investors decide about the modes of organization, the locations of production, and the markets to be served. Foreign investments are driven by market-seeking and cost-reducing motives. We further assume that investors face costs of control that vary among sectors and increase in distance. The results show that (i) production intensive sectors are more likely to operate a foreign business independent of the investment motive, (ii) that distance may have a non-monotonous effect on the likelihood of horizontal investments, and (iii) that globalization, if understood as reducing distance, leads to more integration

Exploring Halo Substructure with Giant Stars III: First Results from the Grid Giant Star Survey and Discovery of a Possible Nearby Sagittarius Tidal Structure in Virgo

We describe first results of a spectroscopic probe of selected fields from the Grid Giant Star Survey. Multifiber spectroscopy of several hundred stars in a strip of eleven fields along delta approximately -17^{circ}, in the range 12 <~ alpha <~ 17 hours, reveals a group of 8 giants that have kinematical characteristics differing from the main field population, but that as a group maintain coherent, smoothly varying distances and radial velocities with position across the fields. Moreover, these stars have roughly the same abundance, according to their MgH+Mgb absorption line strengths. Photometric parallaxes place these stars in a semi-loop structure, arcing in a contiguous distribution between 5.7 and 7.9 kpc from the Galactic center. The spatial, kinematical, and abundance coherence of these stars suggests that they are part of a diffuse stream of tidal debris, and one roughly consistent with a wrapped, leading tidal arm of the Sagittarius dwarf spheroidal galaxy.Comment: 8 pages including 4 figures. Accepted for publication in ApJ