Can Denmark’s Flexicurity System Be Replicated In Developing Countries? The Case Of Turkey

Finding a new balance between flexibility and security is a big challenge for all. According to the European Council “Providing the right balance between flexibility and security will support the competitiveness of firms, increase quality and productivity at work and help firms and workers to adapt to economic change”. Denmark provides an interesting combination of high labor market dynamism and relatively high social protection –the so-called flexicurity approach. The Danish model of flexicurity points to a third way between the flexibility often attributed to deregulated Anglo-Saxon countries and strict job protection characterising Southern European countries. In this paper, the Danish case of flexicurity will be analyzed and the answers of these questions will be searched: Can a new balance between flexibility and security solve labor market problems of developing world? Can Denmark’s flexicurity system be replicated in developing countries? Can a new flexicurity system be improved for developing countries?Flexicurity, Labor Market, Developing Countries, Danish Model

Quality Adjusted Cost Functions for Child Care Centers

Using a newly compiled data set, this paper estimates multi- product translog cost functions for 399 child care centers from California, Colorado, Connecticut, and North Carolina. Quality of child care is controlled by a quality index, which has been shown to be positively related to child outcomes by previous research. Nonprofit centers that receive public money, either from the state or federal government, (which is tied to higher standards), have total variable costs that are 18 percent higher than other centers, keeping quality of services constant. No statistically significant differences between general categories of for-profit and non-profit centers are detected. Furthermore, various types of nonprofits are not distinguishable from their for-profit counterparts. In agreement with previous studies, the data show that the average quality of center-based child care is between 'minimal' and 'good', and it costs 13 cents per hour per child to increase this average quality to the level considered developmentally appropriate by child care experts.

Can Consumers Detect Lemons? Information Asymmetry in the Market for Child Care

This paper applies direct tests for adverse selection and moral hazard in the market for child care. A unique data set containing quality measures of various characteristics of child care provided by 746 rooms in 400 centers, as well as the evaluation of the same attributes by 3,490 affiliated consumers (parents) is employed. Comparisons of consumer evaluations of quality to actual quality show that, after adjusting for scale effects, parents are weakly rational. The hypothesis of strong rationality is rejected, indicating that parents do not utilize all available information in forming their assessment of quality. Parent characteristics impact the accuracy of their evaluations. An analysis of easy-to-observe versus difficult-to-observe aspects of quality reveals that parents are trying to extract signals more heavily in cases of difficult-to-observe items. A comparison of parent assessments to results obtained from standard quality production functions reveals that, for the most part, parents interpret the signals incorrectly. The results demonstrate the existence of information asymmetry and adverse selection in the market. There is some limited evidence for moral hazard as nonprofit centers with very clean reception areas tend to produce lower level of quality for unobservable items. These results provide an explanation for low average quality in the child care market.

Ugly Criminals

Using data from three waves of Add Health we find that being very attractive reduces a young adult's (ages 18-26) propensity for criminal activity and being unattractive increases it for a number of crimes, ranging from burglary to selling drugs. A variety of tests demonstrate that this result is not because beauty is acting as a proxy for socio-economic status. Being very attractive is also positively associated adult vocabulary test scores, which suggests the possibility that beauty may have an impact on human capital formation. We demonstrate that, especially for females, holding constant current beauty, high school beauty (pre-labor market beauty) has a separate impact on crime, and that high school beauty is correlated with variables that gauge various aspects of high school experience, such as GPA, suspension or having being expelled from school, and problems with teachers. These results suggest two handicaps faced by unattractive individuals. First, a labor market penalty provides a direct incentive for unattractive individuals toward criminal activity. Second, the level of beauty in high school has an effect on criminal propensity 7-8 years later, which seems to be due to the impact of the level of beauty in high school on human capital formation, although this second avenue seems to be effective for females only.

Joblessness and Perceptions about the Effectiveness of Democracy

Using micro data on more than 130,000 individuals from 69 countries, we analyze the extent to which joblessness of the individuals and the prevailing unemployment rate in the country impact perceptions of the effectiveness of democracy. We find that personal joblessness experience translates into negative opinions about the effectiveness of democracy and it increases the desire for a rouge leader. Evidence from people who live in European countries suggests that being jobless for more than a year is the source of discontent. We also find that well-educated and wealthier individuals are less likely to indicate that democracies are ineffective, regardless of joblessness. People's beliefs about the effectiveness of democracy as system of governance are also shaped by the unemployment rate in countries with low levels of democracy. The results suggest that periods of high unemployment and joblessness could hinder the development of democracy or threaten its existence.unemployment duration, democracy, education, development, World Values Survey

The Determinants of the Willingness to be an Organ Donor

The total value of life lost due to death because of waiting for an organ transplant is greater than $4 billion annually in the United States, and the excess demand for organs has been increasing over time. To shed light on the factors that impact the willingness to donate an organ, we analyze data from the United States and the European Union. The rate of willingness to donate an organ is 38 % among young adults in the U.S., and it is 42 % in Europe. Interesting similarities emerge between the U.S. and Europe regarding the impact of gender, political views and education on the willingness to donate. In the U.S. Blacks, Hispanics and Catholics are less likely to donate. In Europe, individuals who reveal that they are familiar with the rules and regulations governing the donation and transplantation of human organs are more likely to donate. In both data sets individuals who had some encounter with the health care sector %u2013either through a recent emergency room visit (in the U.S.), or perhaps because of a long-standing illness (in the E.U), are more likely to become organ donors. Mother%u2019s education has a separate positive impact.