People‘s Attitudes and the Eff ects of Immigration to Australia

This paper compares the eff ects of immigration fl ows on economic outcomes and crime levels to the public opinion about these eff ects using individual and regional data for Australia. We employ an instrumental variables strategy to account for non-random location choices of immigrants and fi nd that immigration has no adverse eff ects on regional unemployment rates, median incomes, or crime levels. This result is in line with the economic eff ects that people typically expect but does not confi rm the public opinion about the contribution of immigration to higher crime levels, suggesting that Australians overestimate the eff ect of immigration on crime.International migration; eff ects of immigration; attitudes towards immigrants

There Goes the Neighborhood? People’s Attitudes and the Effects of Immigration to Australia

This paper compares the effects of immigration flows on economic outcomes and crime levels to the public opinion about these effects using individual and regional data for Australia. We employ an instrumental variables strategy to account for non-random location choices of immigrants and find that immigration has no adverse effects on regional unemployment rates, median incomes, or crime levels. This result is in line with the economic effects that people typically expect but does not confirm the public opinion about the contribution of immigration to higher crime levels, suggesting that Australians overestimate the effect of immigration on crime.effects of immigration, attitudes towards immigrants, international migration

There Goes the Neighborhood? People’s Attitudes and the Effects of Immigration to Australia

This paper compares the effects of immigration flows on economic outcomes and crime levels to the public opinion about these effects using individual and regional data for Australia. We employ an instrumental variables strategy to account for non-random location choices of immigrants and find that immigration has no adverse effects on regional unemployment rates, median incomes, or crime levels. This result is in line with the economic effects that people typically expect but does not confirm the public opinion about the contribution of immigration to higher crime levels, suggesting that Australians overestimate the effect of immigration on crime.

External Eff ects of Education: Human Capital Spillovers in Regions and Firms

Using a matched employer-employee panel dataset for Germany, we analyze the external eff ects of education on individual wages. Following the basic framework of Moretti (2004), we allow spillover eff ects to occur both within a specifi c fi rm and a specifi c region rather than analyzing spillover eff ects only on a regional level. Controlling for individual- and fi rm-specifi c fi xed eff ects and using an instrumental variable strategy, our results confi rm the existence of positive but small external eff ects of human capital. Positive spillover eff ects within fi rms occur only for the group of high-skilled workers.External eff ects; human capital; employer-employee matched data

Neighborhood Effects and Individual Unemployment

Using a unique dataset for Germany that links individual longitudinal data from the GSOEP to regional data from the federal employment agency and data of real estate prices, we evaluate the impact of neighborhood unemployment on individual employment prospects. The panel setup and richness of the data allows us to overcome some of the identification problems which are present in this strand of literature. The empirical results indicate that there is a significant negative impact of neighborhood unemployment on the individual employment probability.social interactions, unemployment, neighborhood characteristics

Blood Money: Incentives for Violence in NHL Hockey

The level of violence in the National Hockey League (NHL) reached its highest point in 1987 and has reduced somewhat since then, although to levels much larger than before the first team expansions in 1967. Using publicly available information from several databases 1996–2007, the incentives for violence in North American ice hockey are analyzed.We examine the role of penalty minutes and more specifically, fighting, during the regular season in determining wages for professional hockey players and team-level success indicators. There are substantial returns paid not only to goal scoring skills but also to fighting ability, helping teams move higher in the playoffs and showing up as positive wage premia for otherwise observed low-skill wing players. These estimated per-fight premia, depending on fight success ($10,000 to$18,000), are even higher than those for an additional point made. By introducing a “fight fine” of twice the maximum potential gain ($36,000) and adding this amount to salaries paid for the team salary cap (fines would be 6.7% of the team salary cap or the average wage of 2 players), then all involved would have either little or no incentives to allow fighting to continue.Compensating wage differentials, health risk, violence, subjective indicators

Killing them with Kindness: Negative Distributional Externalities of Increasing UI Benefits

Of the many labour market Hartz IV reforms that have been implemented in Germany since 2005, the role of short-term unemployment insurance has not received much attention. In this paper we examine distributional effects of labour earnings and unemployment benefits using simulated increases in unemployment insurance replacement rates or equivalently, increases in the net present value of benefit duration. Starting around an 18%-point increase in the replacement rate, there are significant negative labour supply effects, drawing those employed into unemployment shifting the mass of the earnings distribution to the left. At around a 25%-point increase in the replacement rate, the mass of the distribution shifts right again, as those receiving unemployment benefits simply enjoy an increased transfer. Thus, due to the substantial negative labour supply effects, German economic policy should avoid potentially increasing the UI benefit replacement rate (or equivalently, increasing the benefit duration) in the near future as a response to the worldwide economic crisis.Unemployment, income distribution, labour supply

Neighborhood Eff ects and Individual Unemployment

Using a unique dataset for Germany that links individual longitudinal data from the GSOEP to regional data from the federal employment agency and data of real estate prices, we evaluate the impact of neighborhood unemployment on individual employment propects. The panel setup and richness of the data allows us to overcome some of the identifi cation problems which are present in this strand of literature. The empirical results indicate that there is a signifi cant negative impact of neighborhood unemployment on the individual employment probability.Social interactions; unemployment; neighborhood characteristics

The Regional Economic Effects of Military Base Realignments and Closures in Germany

Within the context of the current political discussion over base realignments and closures (BRACs) in Germany, this study provides policy guidance by examining the economic consequences to the surrounding community. We identify the causal effect of a reduction in military personnel on a number of socioeconomic indicators within the peripheries of military bases. The BRACs within the German armed forces is used an exogenous source of variation that allows for the estimation of the causal effect of a particular demand shock on household income, output, unemployment, and tax revenue within a specified buff er zone around each base. The analysis covers 298 communities for the period 2003–2007. Consistent with evidence found elsewhere, we find that these base adjustments have only a marginal impact on the local community in which the bases are located.Geographic information system; armed forces; regional adjustment

Local Determinants of Crime: Do Military Bases Matter?

Using a unique panel dataset, we estimate the impact of the military base realignments and closures (BRACs) in Germany on the intensity of criminal activity surrounding the base. We use a fixed-effect model to account for time-invariant unobservables in our panel of 298 military bases for the period 2003–2007. We also take advantage of geographic information system software to mitigate estimation issues arising from the spatial nature of the dataset. Estimation results are presented for total crime and four other subcategories: breaking and entering, automobile-related crime, violent crime, and drug-related crime. The estimates indicate that there is no effect of BRACs on criminal activity surrounding the base. We also confirm existing findings in the literature on the determinants of crime.Armed forces; BRAC; deviant behavior; geographic information system