Entrepreneurship and market size: the case of young college graduates in Italy

We analyse empirically the effects of urbanization on Italian college graduates' work possibilities as entrepreneurs three years after graduation. We !nd that doubling the province of work's population density reduces the chances of being an entrepreneur by 2–3 percentage points. This result holds after controlling for regional !xed effects and is robust to instrumenting urbanization. Provinces' competition, urban amenities and dis-amenities, cost of labour, earning differentials between employees and self-employed workers, unemployment rates and value added per capita account for more than half of the negative urbanization penalty. Our result cannot be entirely explained by the presence of negative differentials in returns to entrepreneurship between the most and the least denselypopulated areas. In fact, as long as they succeed in entering themost densely populated markets, young entrepreneurs are able to reap-off the bene!ts of urbanization externalities: the elasticity of entrepreneurs' net monthly earnings with respect to population density is 0.02–0.03

Smoking behaviour and individual well-being: a fresh look at the effects of the 2005 public smoking ban in Italy

This paper investigates the impact of the public smoking ban which came into effect in Italy in January 2005 on individual smoking behaviour. Current empirical evidence supports the existence of a negative effect of the Italian ban on smoking prevalence and consumption in the general population. Our analysis shows that the apparent success of the ban is due to the fact that existing results do not take into account seasonal differences in smoking behaviour. Using quarterly data from the 1999/2000 and 2004/2005 Italian Health Surveys and adopting a difference-in-difference approach that nets out monthly variation in smoking rates, we show that the Italian smoking ban had no impact on smoking behaviour for the population as a whole but only on some subgroups. This result notwithstanding, we find that the smoking ban increased the overall well-being of non-smokers

Child care choices by working mothers: the case of Italy

In spite of relatively generous public subsidies and a reputation for high quality, only a very limited proportion of Italian families use public child-care and a large proportion use informal care. In this paper, we attempt to explore the determinants of the use of child-care among dual workers families. Given the limitations of data available we match two different data sets: the Bank of Italy (SHIW) and ISTAT Multiscopo. We find evidence that the availability of public child-care affects in an important way its demand. We also find that increases in costs of public child-care reduce the use of public as well as private indicating a shift to informal child-care. The presence of a grandmother who lives near and is in good health is an important explanation of the choice especially in presence of very small children. An understanding of the importance of these factors is relevant in the evaluation of child-care policies. This is particularly important in Italy, where the majority of families with children have only one child and children would benefit also from the socialization aspects of the child-care system

Is there such a thing as a family constitution? A test based on credit rationing

The paper tests the hypothesis that private transfers can be explained by the existence of self-enforcing family constitutions prescribing the minimum level at which a person in middle life should support her young children and elderly parents. The test is based on the effect of a binding credit ration on the probability of making a money transfer, which can be positive only in the presence of family constitutions. Allowing for the possible endogeneity of the credit ration, we find that rationing has a positive effect on the probability of giving money if the potential giver is under the age of retirement, but no significant effect if the person is already retired. This appears to reject the hypothesis that transfer behavior is the outcome of unfettered individual optimization on the part of either altruistic or exchange motivated agents, but not the one that individuals optimize subject to a self-enforcing family constitution. The policy implications are briefly discusse

In a Small Moment: Class Size and Moral Hazard in the Italian Mezzogiorno

Instrumental variables (IV) estimates show strong class-size effects in Southern Italy. But Italy's Mezzogiorno is distinguished by manipulation of standardized test scores as well as by economic disadvantage. IV estimates suggest small classes increase manipulation. We argue that score manipulation is a consequence of teacher shirking. IV estimates of a causal model for achievement as a function of class size and score manipulation show that class-size effects on measured achievement are driven entirely by the relationship between class size and manipulation. These results illustrate how consequential score manipulation can arise even in assessment systems with few accountability concerns

Wages and weight in Europe: evidence using quantile regression model

The aim of this research is to investigate the relationship between obesity and wages, using data for nine countries from the European Community Household Panel (ECHP) over the period 1998-2001. We improve upon the existing literature by adopting a Quantile Regression approach to characterize the heterogenous impact of obesity at different points of the wage distribution. Our results show that i) the evidence obtained from mean regression and pooled analysis hides a significant amount of heterogeneity as the relationship between obesity and wages differs across countries and wages quantiles and ii) cultural, environmental or institutional settings do not seem to be able to explain differences among countries, leaving room for a pure discriminatory effect hypothesis

Seasonality in Smoking Behaviour: Re-Evaluating the Effects of the 2005 Public Smoking Ban in Italy

This paper investigates the impact of the public smoking ban which came into effect in Italy on January 2005 on individual smoking behaviour. Current empirical evidence supports the existence of a negative effect of the Italian ban on smoking prevalence and consumption in the general population. This is in contrast to what has been found in some other European countries. Our analysis shows that the apparent success of the Italian smoking ban is due to the fact that existing results do not take into account seasonal differences in smoking behaviour. Using quarterly data from the 1999/2000 and 2004/2005 Italian Health Surveys and adopting a difference-in-difference approach that nets out monthly variation in smoking rates, we show that the Italian smoking ban had no impact on individual smoking behaviour for the population as a whole, and only small effects on some groups of individuals

Joint Custody in the Italian Courts

This paper studies the impact of the introduction of joint custody in Italy (Law 54/2006) on judiciary outcomes. As to the formal (legal) assignment of joint custody, the reform envisaged very little judge discretion. With reference to the substance of the custody (the amount of time each parent spends with the child and the money involved in post-dissolution arrangements), the law established new principles while leaving plenty of implementation power to the judges. Our results - based on court data that covers the universe of separations from 2000 to 2010 - document that the law was only cosmetically applied by the judges. Compared to the pre-reform regime, the share of sole legal custody assignments to the mother drastically decreased. However, court implementation washed out the new principles: the provisions of the law related to the financial post-separation arrangements remained unapplied. This suggests that the main innovative aspect of the law - the possibility for a child to spend an adequate amount of time with both parents - was also left unchanged with respect to the previous regime of sole maternal custody. As joint effect of the introduction of the law and the little degree to which the new principles have been translated into actual verdicts, there was a surge in litigiousness among separating spouses and judicial inefficiency. Moreover, the incentives for a female partner to apply for a separation raised. The paper discusses a possible rationale for the findings and some related policy remedies. As for the former, the evidence we present can be explained by the adoption of gender-biased judiciary practices. As for the latter, our results suggest that a restatement of the law, to define a narrowed grid of prescriptions that constrain judge discretion, could be an effective corrective action