Edwin van Gameren

The internal economics of the firm: further evidence from personnel data

Abstract Baker, Gibbs and Holmstrom [Quarterly Journal of Economics 109 (1994) 881] [BGH] carried out a detailed description of the internal hierarchical structure of a firm together with its pay and promotion dynamics. Their work has become the basis of much theoretical work, but little attempt has been made to establish its generality. Accordingly, we replicate their analysis as closely as possible using data from a large British financial sector firm between 1989 and 1997. In many respects, our results are similar to those described by BGH, but they also differ in important ways, suggesting that more needs to be understood.

Health insurance and use of alternative medicine in Mexico

OBJECTIVES I analyze the effect of coverage by health insurance on the use of alternative medicine such as folk healers and homeopaths, in particular if it complements or substitutes conventional services. METHODS Panel data from the Mexican Health and Aging Study (MHAS) is used to estimate bivariate probit models in order to explain the use of alternative medicine while allowing the determinant of interest, access to health insurance, to be an endogenous factor. RESULTS The findings indicate that households with insurance coverage less often use alternative medicine, and that the effect is much stronger among poor than among rich households. CONCLUSIONS Poor households substitute away from traditional medicine towards conventional medicine.

The Role of Economic Incentives and Attitudes in Participation and Childcare Decisions

We analyzed the participation and childcare decisions made by mothers in two-parent households with children aged 0–12 in the Netherlands, paying special attention to the role of attitudes regarding work and care. In a multinomial logit model we distinguished between not working, a small part-time job, and a larger job. For working mothers we considered no childcare, informal, and formal childcare. We accounted for potential endogeneity of attitudes. The results showed that the role of the price of formal childcare in the decision-making process was negligible. A higher earnings capacity increased the take-up of larger jobs and formal childcare. Modern attitudes had a strong impact on the decisions to work and to use childcare.

Precautionary Savings in Mexico: Evidence from the Mexican Health and Aging Study

Precautionary saving is the additional saving done by individuals to protect them financially in situations of uncertainty and reduce their vulnerability for negative shocks that may affect their consumption levels. This paper investigates the existence and extent of savings motivated by precaution in Mexico for people aged between 50 and 75, using data from the Mexican Health and Ageing Study 2003. The empirical strategy is based on a test of the direct relationship between the accumulated wealth and the uncertainty generated by the social security status, in particular the availability of health insurance, accounting also for the expectation to receive a retirement pension. The endogeneity-corrected estimates do not yield results that unequivocally support the existence of private savings as a risk protection mechanism, implying that the public protection system has an important role in reducing the vulnerability of the population studied.

Quality differences of higher education and its determinants in a less-developed country

Two key measures to determine the quality of higher education are the performance of students and the accreditation of a programme’s quality. We analyse the difference in the distributions of the student’s scores in a standardised test of economics knowledge between accredited and non-accredited undergraduate economics programmes in a less-developed country. We estimate what the distribution of scores in non-accredited programmes would have been if their students possessed the characteristics of students in accredited programmes. The scores come from the Colombian National Exam of Higher Education in economics, while student, family, programme and institutional information is built from a survey held before the test. The score distributions indicate better performance in quality-accredited economics programmes compared to non-accredited programmes. Results suggest that individual characteristics explain the larger part of the quality gap, while family features contribute the least. The programme and insti...Two key measures to determine the quality of higher education are the performance of students and the accreditation of a programme’s quality. We analyse the difference in the distributions of the student’s scores in a standardised test of economics knowledge between accredited and non-accredited undergraduate economics programmes in a less-developed country. We estimate what the distribution of scores in non-accredited programmes would have been if their students possessed the characteristics of students in accredited programmes. The scores come from the Colombian National Exam of Higher Education in economics, while student, family, programme and institutional information is built from a survey held before the test. The score distributions indicate better performance in quality-accredited economics programmes compared to non-accredited programmes. Results suggest that individual characteristics explain the larger part of the quality gap, while family features contribute the least. The programme and institutional characteristics have opposing impacts, mainly around the mean of the score distribution.

Housing Consumption and Financial Policy Instruments in the Netherlands

Reforming the system of financial instruments on the housing market is a recurring issue. This paper constructs a model explaining household behaviour, in particular the effects of prices and income on the tenure choice and the level of housing consumption. It analyses the effects that may be expected of fundamental changes of financial policy instruments in the Netherlands: (1) a conversion of below market rents to market rent levels; (2) a switch from the current fiscal system for owner-occupiers to a general lump sum tax reduction; and (3) a combination of these measures. The results indicate that the initial disadvantageous effects on the housing costs are large, but the behavioural response of households and the expected changes of price levels considerably reduce or even eliminate longrun effects. Since the effects may be substantial for individual households, a well-considered transition path, as is done in other countries, should be used.

Desempleo y salud mental en la población de origen hispano en Estados Unidos: un análisis epidemiológico

The high unemployment rates observed in the United States during the recent economic crisis, that moreover vary between ethnic groups, make it relevant to inquire into how this problem is linked to the mental health of employed and unemployed persons. Therefore, in this paper the relationship between unemployment and mental health among Mexican immigrants, Mexicans born in the US, and other Hispanics in comparison with non-Hispanic native whites and Afro-Americans in the US is analyzed. To achieve this objective prevalence, prevalence ratios and odds ratios for the population between 18 and 65 years of age in the labor force was calculated using data from the 1999 and 2009 National Health Interview Surveys. It was seen that in times of crisis the prevalence of Non-Specific Psychological Disorders (NSPD) in the labor force increased in all ethnic groups. The prevalence ratios indicate that the unemployed face a higher risk of suffering from NSPD than the employed, especially for the non-Mexican Hispanics. Mexican immigrants, in contrast, show the lowest risks.

WORKING AND CARING: THE SIMULTANEOUS DECISION OF LABOR FORCE PARTICIPATION AND INFORMAL ELDERLY AND CHILD SUPPORT ACTIVITIES IN MEXICO

We analyze factors determining womens decisions to participate in the labor market and provide elderly care and non financial support to their (grand)children. We use data from the Mexican Health and Aging Study, a survey of people aged 50 and over, applying a three-equation, reduced- form SUR model. Results suggest that care needs are the driving force behind caregiving activities. Traditional roles also appear to be relevant in the labor force participation decision: women with a closer labor market connection when they were young are more likely to work. Simulations of demographic changes illustrate potential effects for future caregiving and participation rates.

The effect of care leave on burden and job performance

In this article the expected effects of the introduction of a fully paid long-term care leave programme in the Netherlands are investigated. In particular we are interested in the effects on perceived burden and job performance. We analyse data from a survey among workers who care for a person in their social circle for longer than two weeks. The caring workers with a high perceived burden and intention to participate in the programme were asked questions regarding the expected effects on burden. An econometric model in which we account for these two potentially nonrandom selection mechanisms is set up to analyse the expected reduction in burden due to the intended take-up of care leave. As a result of the introduction of the programme about 60% of the intended participants who perceive a high burden expect a reduction in their burden. The relation between burden and job performance shows that the programme would reduce the number of caring workers who perform less precise in their job by one-third. A modified version of the programme with more stringent requirements than analysed in this article was introduced in The Netherlands in 2005.