Martin Gächter

Retaining the thin blue line: What shapes workers' intentions not to quit the current work environment

The purpose of this study is to investigate the determinants of police officers‘ willingness to quit their current department. For this purpose, we work with US survey data that covers a large set of police officers for the Baltimore Police Department in Maryland. Our results indicate that more effective cooperation between units, a higher trust in the work partner, a higher level of interactional justice and a higher level of work-life-balance reduces police officers‘ willingness to quit the department substantially. On the other hand, higher physical and psychological stress and the experiecene of traumatic events are not, ceteris paribus, correlated with the willingness to leave the department. It might be that police officers accept stress as an acceptable factor in their job description.

Monetary Policy and its Impact on Stock Market Liquidity: Evidence from the Euro Zone

The recent financial crisis has been characterized by unprecedented monetary policy interventions of central banks with the intention to stabilize financial markets and the real economy. This paper sheds light on the actual impact of monetary policy on stock liquidity and thereby addresses its role as a determinant of commonality in liquidity. To capture effects both at the micro and macro level of stock markets, we apply panel estimations and vector autoregressive models. Our results suggest that an expansionary monetary policy of the European Central Bank leads to an increase of stock market liquidity in the German, French and Italian markets. These findings are robust for seven proxies of liquidity and two measures of monetary policy.

Regional development in advanced countries: A within-country application of the Human Development Index for Austria

Abstract Since its implementation in 1990, the human development index (HDI), the flagship indicator of multidimensional development, has attracted a great deal of attention and critics in academic, political and media circles. It initiated a new stage in the discussion of appropriate indicators to measure socioeconomic development. Until now, the vast majority of empirical work using the HDI concept has taken a cross-country perspective. The main aim of this paper is the application of the HDI at the sub-country level in small, highly developed and socioeconomically homogenous countries. For this undertaking we use a slightly modified version of the HDI, called the regional development index (RDI). For the components of the RDI - life expectancy, education and standard of living - we use recent cross section information for Austria at the level of districts. There exists considerable heterogeneity across districts in the RDI and its components. Our Theil-decomposition reveals that the overwhelming part of the observed heterogeneity is based on differences within provinces (96 percent), although the differences in life expectancy between the provinces explain a substantial part of the overall heterogeneity in this indicator (54 percent).

The relationship between stress, strain and social capital

This paper analyzes the effectiveness of social capital in reducing the negative externalities associated with stress, as well as the physical and psychological strain indicators among police officers. Despite the fact that there is a large multidisciplinary literature on stress or on social capital, the link between both factors is still underexplored. In this empirical paper we therefore aim at reducing such a shortcoming. We focus on a strategically important work environment, namely law enforcement agents, that is not only characterized as physically and emotionally demanding, but also as an essential part for a well-functioning society due to the fact that inefficiencies in the police force can induce large negative externalities. Using a multivariate regression analysis focusing on eight different proxies for stress and strain, and two proxies for social capital and conducting several robustness checks, we find strong evidence that an increased level of social capital is correlated with a lower level of strain. From a policy perspective, our findings suggest that stress reduction programs should actively engage employees to build stronger social networks.

Physician density in a two-tiered health care system

We investigate the density of non-contract (private) physicians in a two-tiered health care system, i.e., one with co-existing public and private health care providers. In particular, we analyze how the densities of private and public suppliers of outpatient health care (general practitioners and specialists) are related to each other. Using a panel of 121 Austrian districts between 2002 and 2008, we apply a Hausman–Taylor estimator, which allows to treat each of these densities as endogenous. We find that the density of non-contract specialists is positively associated with the density of non-contract general practitioners, but not significantly related to the density of contract general practitioners. We also observe a negative relationship between the densities of non-contract and contract general practitioners and the ones of non-contract and contract specialists, indicating competitive forces between the private and the public sector of the outpatient health care provision in Austria. Our results contribute to the ongoing debate on the role of non-contract physicians for health care provision in Austria.

Health status convergence at the local level: empirical evidence from Austria

IntroductionHealth is an important dimension of welfare comparisons across individuals, regions and states. Particularly from a long-term perspective, within-country convergence of the health status has rarely been investigated by applying methods well established in other scientific fields. In the following paper we study the relation between initial levels of the health status and its improvement at the local community level in Austria in the time period 1969-2004.MethodsWe use age standardized mortality rates from 2381 Austrian communities as an indicator for the health status and analyze the convergence/divergence of overall mortality for (i) the whole population, (ii) females, (iii) males and (iv) the gender mortality gap. Convergence/Divergence is studied by applying different concepts of cross-regional inequality (weighted standard deviation, coefficient of variation, Theil-Coefficient of inequality). Various econometric techniques (weighted OLS, Quantile Regression, Kendalls Rank Concordance) are used to test for absolute and conditional beta-convergence in mortality.ResultsRegarding sigma-convergence, we find rather mixed results. While the weighted standard deviation indicates an increase in equality for all four variables, the picture appears less clear when correcting for the decreasing mean in the distribution. However, we find highly significant coefficients for absolute and conditional beta-convergence between the periods. While these results are confirmed by several robustness tests, we also find evidence for the existence of convergence clubs.ConclusionsThe highly significant beta-convergence across communities might be caused by (i) the efforts to harmonize and centralize the health policy at the federal level in Austria since the 1970s, (ii) the diminishing returns of the input factors in the health production function, which might lead to convergence, as the general conditions (e.g. income, education etc.) improve over time, and (iii) the mobility of people across regions, as people tend to move to regions/communities which exhibit more favorable living conditions.JEL classification: I10, I12, I18

The Relationship between Stress and Social Capital among Police Officers

This paper analyzes the effectiveness of social capital in reducing the negative externalities associated with stress, as well as the physical and psychological indicators of stress among police officers. Despite the fact that there is a large multidisciplinary literature on stress or on social capital, the link between both factors is still underexplored. In this empirical paper we therefore aim at reducing such a shortcoming. We focus on a strategically important work environment, namely law enforcement agents, that is not only characterized as physically and emotionally demanding, but also as an essential part for a well-functioning society due to the fact that inefficiencies in the police force can induce large negative externalities. Using a multivariate regression analysis focusing on nine different proxies for stress and two proxies for social capital and conducting several robustness checks, we find strong evidence that an increased level of social capital is correlated with a lower level of stress. From a policy perspective, our findings suggest that stress reduction programs should actively engage employees to build stronger social networks.

Regional density of private dentists: empirical evidence from Austria

OBJECTIVES We investigated the determinants of disparities in the regional density of private dentists in Austria. Specifically, we focused on the relationship between the density of private dentists and their public counterparts, thereby controlling for other possible covariates of dentist density. METHODS Dentist density was measured at the district level. We used panel data of dentist density from 121 Austrian districts over the years 2001-2008. We applied a Hausman-Taylor framework to cope with possible endogeneity and to control for cross-district effects in the dentist density. RESULTS A significant negative relationship was found between the density of private and public dentists, indicating a substitution effect between the two dentist groups. A significant positive spatial relationship also existed for private and public dentists in the neighboring regions. Dental capacities in public and private hospitals and dental laboratories run by the public health insurance system did not have a significant effect on private dentist density. CONCLUSIONS Although a strong negative relationship existed between private and public dentists within the districts, one should not draw the conclusion that private dentists in Austria are close substitutes for public dentists. Such a conclusion would require further empirical analysis on the utilization patterns of dental services and their relationships with financing mechanisms.

Wage divergence, business cylce co-movement and the currency union effect

The European debt crisis reminded us that some member countries of Economic and Monetary Union (EMU) experienced unsustainable pre-crisis booms accompanied by an increase in wages far beyond what would have been justified by long-lasting trends in labor productivity. Within a currency union, such diverging trends in wages and competitiveness cannot be mitigated by simply adjusting nominal exchange rates. Against this background, it is astonishing that the impact of labor cost dynamics on business cycle co-movement – the most widely used meta-criterion for an optimum currency area – has not been analyzed so far. In our empirical analysis, we reveal a highly significant and policy-relevant finding: While wage developments do not affect business cycle convergence outside a currency union, wage growth differentials across countries significantly reduce business cycle co-movement within a common currency area. The economic significance of the effect is surprisingly large and even exceeds the impact of bilateral trade relations.

Business Cycle Convergence or Decoupling? Economic Adjustment in CESEE During the Crisis

We analyze business cycle convergence in the EU by focusing on the decoupling vs. convergence hypothesis for central, eastern and south eastern Europe (CESEE). In a nutshell, we fnd that business cycles in CESEE have decoupled considerably from the euro area (EA) during the financial crisis in terms of both cyclical dispersion (i.e. the deviation of output gaps) and cyclical correlation. The results are mainly driven by smaller countries, which can be explained by the fact that small economies seem to have larger cyclical swings as they are more dependent on external demand, which causes a decoupling in terms of higher output gap deviations from the EA cycle in times of economic crises. At the same time, this does not necessarily affect business cycle synchronization as measured by cyclical correlations, where the strength of the linear relationship of two cycles is measured. However, despite the recent declines in the co-movement, we generally observe high correlation levels of CESEE countries with the EA after their EU accession in 2004. Finally, we find a significant decoupling of trend growth rates between EA and CESEE until the onset of the financial crises. Since the beginning of the crisis, trend growth rates have declined both in CESEE and the EA with the trend growth differential decreasing significantly from about three to below two percentage points in 2011.