"It's not that I'm a racist, it's that they are Roma": Roma Discrimination and Returns to Education in South Eastern Europe

This paper uses a unique survey of Roma and non-Roma in South Eastern Europe to evaluate competing explanations for the poor performance of Roma in the labour market. The analysis seeks to identify the determinants of educational achievement, employment and wages for Roma and non-Roma. LIML methods are employed to control for endogenous schooling and two sources of sample selection bias in the estimates. Nonlinear and linear decomposition techniques are applied in order to identify the extent of discrimination. The key results are that: the employment returns to education are lower for Roma than for non-Roma whilst the wage returns are broadly similar for the two groups; the similar wage gains translate into a smaller absolute wage gain for Roma than for non-Roma given their lower average wages; the marginal absolute gains from education for Roma are only a little over one-third of the marginal absolute gains to education for majority populations; and, there is evidence to support the idea that a substantial part of the differential in labour market outcomes is due to discrimination. Explanations of why Roma fare so badly tend to fall into one of two camps: 'low education' vs. 'discrimination'. The analysis suggests that both of these explanations have some basis in fact. Moreover, a direct implication of the lower absolute returns to education accruing to Roma is that their lower educational participation is, at least partially, due to rational economic calculus. Consequently, policy needs to address both low educational participation and labour market discrimination contemporaneously.Roma, discrimination, transition, returns to education

Are Imitative Strategies Game Specific? Experimental Evidence from Market Games

This paper studies imitation in price and quantity markets. We analyse the results of two experiments designed with different information settings. The analysis shows that information is used differently and has diverse effects according to the market under investigation.Cournot, Bertrand experiments, imitation

Fat and Out in Salerno and Province: Adolescent Obesity and Early School Leaving in Southern Italy

In this paper, we focus on the causes and consequences of adolescent obesity from an economic perspective. The paper examines the determinants of obesity and its role in influencing early school leaving amongst adolescents in the province of Salerno in Southern Italy. A simple human capital investment model is employed and this provides a framework within which to analyse the interrelated 'decisions' regarding schooling and overeating, taking into account the importance of time preference and the differential effects of adolescent obesity for males and females. We find that: a) there is a strong and robust positive effect of obesity on early school leaving; b) there are significant gender differences in the nature of this relationship; and, c) although not statistically significant, there is support for the idea that contextual factors – such as the type of school attended - are important in determining the effects of obesity on early school leaving. These findings have important policy implications. In particular, evidence on the positive causal link running from obesity to early school leaving suggests: i) that action aimed at reducing obesity – such as the encouragement of sporting activity - may also have beneficial effects in terms of reducing early school leaving rates; ii) the introduction of financial incentives to encourage educational participation; and, iii) the significant differences identified between young men and young women suggest the adoption of some gender- specific policy measures.early school-leaving, obesity

measures of social capital and trust

Trust and trustworthiness are important components of social capital and much attention has been devoted to the problems of their correct evaluation. Attitudinal survey questions as reported in the EVS – European Value Survey - are often regarded as inefficient indicators of trust, since they lack of behavioural underpinnings (Putnam, 1995) which one might desire when measuring trust. In this paper, we consider alternative measures of trust and trustworthiness, based on behavioural assumptions. We construct two relative behavioural measures of trust (RBM1 and RBM2), both based on the ex post measurement of trust, once individuals are informed on the level of trustworthiness of the social group to which they have been allocated during the experiment. Our main finding is that the relative behavioural measures show that trust strongly varies once the individual is informed on the on the level of trustworthiness of the social group to which he\she has been allocated during the experiment. This difference is higher the higher is the family level of income and the parental education status. As for previous findings (Glaeser et al., 2000, Lazzarini, 2005) which have found no correlation between attitudinal and behavioural measures of trust, we find that relative behavioural measures are not correlated to attitudinal measures but they are strongly correlated to groups’ trustworthiness. We also find that similar social preferences profiles (between Senders and Recipients) tend to enhance the individual level of trust, in the RBM2 context. This result seems to confirm the importance of the homogeneity of the social environment when studying the effects of policy interventions (Alesina and La Ferrara, 2002).social capital, trust, experiments

Youth Labour Markets in Europe and Central Asia

Transition to the market economy in ECA opened up a range of potential opportunities for young people. It has also raised a series of challenges. Youth unemployment and joblessness have emerged as serious problems with the potentially very high costs. Formal Education and Training systems have been slow to adapt to the changing requirements placed upon them by the rapidly changing industrial structure arising from transition. The damage arising from on the one hand rising expectations and on the other the failure of systems to accommodate these is likely to have long-term consequences. It is important then that countries in ECA support young people in fulfilling their potential. This paper looks at developments in and around the transition of young people from education to work in the ECA region in recent years. The purpose of the paper is to aid understanding of the current situation and to suggest areas where action is most needed and is likely to be most effective. The first section considers developments in the general economic context of relevance to young people. Section 2 goes onto consider the current situation of (and trends in) factors affecting young people’s entry into work. Section 3 assesses policies affecting youth employment and unemployment and section concludes identifying key issues and areas where action is needed and where it is likely to be effective.youth labour markets, Europe and Central Asia, active labour market policies, vocational education and training, joblessness

Trends in the Youth Labour Market in Developing and Transition Countries

This paper looks at youth labour market trends concentrating on developing and transition countries. Questions relating to the integration of young people into decent work have in recent times once again begun to occupy a central position in Government Policy issues. Recently co-ordinated efforts also at the international level have begun to make themselves felt. In particular, on the initiative of Kofi Annan, UN Secretary-General, the Youth Employment Network (YEN) was established. This is a joint effort of the United nations, the World Bank and the ILO and has provided a focus for the work of these organisations on problems related to youth employment and unemployment. This paper aims to provide a contribution to debate on the issues by giving an overview of trends in the youth labour market, principally in Transition and developing countries. After giving an outline of the paper, some basic definitional issues are dealt with. In section two, the paper then looks at long-run trends in some broad aggregates relevant to youth labour markets. The section discusses long-run movements in population and population share, labour force and labour force participation, education and child labour. The third section then considers labour market outcomes. The discussion centres on which and whose outcomes are appropriate to examine as well as their determinants. The fourth, concluding section draws out some of the implications of the preceding analysis for policy, research and data collection purposes.youth labour markets, youth unemployment, youth lòabour force participation, youth employment

Eliciting Motives for Trust and Reciprocity by Attitudinal and Behavioural Measures

Value Surveys may reveal well-behaved societies by the statistical treatment of the agents’ declarations of compliance with social values. Similarly, the results of experiments conducted on games with conflict of interest trace back to two important primitives of social capital – trust and reciprocity – which can be used to explain deviations from the Nash equilibrium and which lead to the optimal cooperative outcome. In this paper we attempt to elicit the true motive(s) underlying the behaviour of players in experimental trust and dictator games and suggest that the most informative utilization of surveys in this regard goes beyond the simple comparison of answers to a questionnaire with actual behaviour. Specifically the paper uses descriptive statistics and ordered probit models to analyse whether, and to what extent, answers to a questionnaire about attitudes to trusting and reciprocating predict subjects’ behaviour and, by comparing behaviour in Trust and Dictator Game, disentangles the strategic and altruistic motivations. We find no simple or direct correlation between behavioural trust or trustworthiness and attitudinal trust or disposition to reciprocate. However, dividing subjects according to attitudinal trust and trustworthiness, we observe that the link between the questionnaire and experimental sessions is more subtle than the mere correlation between average attitudes and average behaviours. The information conveyed by a survey appears to be much more powerful ex post – once the two motivational components have been separated out.trust, reciprocity, experimental economics, ordered probit

"Its not that I’m a racist, its that they are Roma": Roma Discrimination &and Returns to Education in South Eastern Europe.

Purpose - This paper uses a unique survey of Roma and non-Roma in South Eastern Europe with the aim of evaluating competing explanations for the poor performance of Roma in the labour market. Design/methodology/approach - Following a descriptive analysis, econometric models are employed to identify the determinants of educational achievement, employment and wages for Roma and non-Roma. Limited information maximum likelihood (LIML) methods are employed to control for endogenous schooling and two sources of sample selection bias in the estimates. Non-linear and linear decomposition techniques are applied in order to identify the extent of discrimination. Findings - The key results are that: the employment returns to education are lower for Roma than for non-Roma whilst the wage returns are broadly similar for the two groups; the similar wage gains translate into a smaller absolute wage gain for Roma than for non-Roma given their lower average wages; the marginal absolute gains from education for Roma are only a little over one-third of the marginal absolute gains to education for majority populations; and, there is evidence to support the idea that a substantial part of the differential in labour market outcomes is due to discrimination. Research limitations/implications - The survey data employed do not include information on hours worked. In order to partially control for this, the analysis of wages is limited to employee wages excluding the self-employed. Practical implications - Explanations of why Roma fare so badly tend to fall into one of two camps: the "low education" and the "discrimination" schools. The analysis suggests that both of these explanations have some basis in fact. Moreover, a direct implication of the lower absolute returns to education accruing to Roma is that their lower educational participation is, at least in part, due to rational economic calculus. Consequently, policy needs to address both low educational participation and labour market discrimination contemporaneously. Originality/value - This is the first paper to attempt to econometrically distinguish between discrimination and educational explanations of Roma disadvantage in the labour market in Central and Eastern Europe. The survey data employed are unique and appropriate for the task. Unusually for analyses dealing with returns to education, the LIML econometric approach employed controls for both endogenous schooling and two sources of sample selection bias

Youth labour markets in Bosnia and Herzegovina.

Employment Policy Papers, 2009/2 ISBN (web pdf): 978-92-2-123243-

Employment policy implementation mechanisms in Bosnia and Herzegovina

This paper discusses the NEP implementation mechanisms in Bosnia and Herzegovina. It is organized in six sections. The first two sections introduce the political framework, and the institutional and economic context of employment policy formulation and implementation the country. The third section reviews the organizational structure for employment policies at national level, and in the two autonomous entities and an internationally - supervised district. The fourth section analyses the implementation mechanisms and their effectiveness. The last two sec tions discuss the obstacles and difficulties to be overcome in order to improve the functioning of the labour market and increase decent work, and also the gaps remained in terms of effective policymaking and implementation