Young Economics.

Some new QJE papers

with one comment

Guiso, Sapienza, and Zingales: “Cultural Biases in Economic Exchange?

There are remarkable differences in the level of trust among European managers. When asked to score fellow managers of different countries on the basis of their trustworthiness their responses implied the following ranking (where 1 is the best and 5 the worst):

1=high trust, 5=low trust

1=high trust, 5=low trust

. . .

We find that a higher level of bilateral trust can explain cross-country trade beyond what extended gravity models can account for. . . .  At sample means, a one-standard-deviation increase in the importer’s trust toward the exporter raises exports by 10%. . . . We find similar results when we analyze the pattern of foreign direct investments (FDI) and portfolio investments. A country is more willing to invest in another (either directly or via the equity market) when it trusts the other country’s citizens more. Not only do the latter results confirm our trade ones, but they also suggest that cultural effects are not limited to unsophisticated consumers, but are also present among sophisticated professionals such as mutual fund managers.

Lalive and Zweimuller: “How does Parental Leave Affect Fertility and Return to Work? Evidence from Two Natural Experiments”

This paper analyzes the effects of changes in the duration of paid, job-protected parental leave on mothers’ higher-order fertility and postbirth labor market careers. Identification is based on a major Austrian reform increasing the duration of parental leave from one year to two years for any child born on or after July 1, 1990. We find that mothers who give birth to their first child immediately after the reform have more second children than prereform mothers, and that extended parental leave significantly reduces return to work. Employment and earnings also decrease in the short run, but not in the long run. Fertility and work responses vary across the population in ways suggesting that both cash transfers and job protection are relevant. Increasing parental leave for a future child increases fertility strongly but leaves short-run postbirth careers relatively unaffected. Partially reversing the 1990 extension, a second 1996 reform improves employment and earnings while compressing the time between births.

Clingingsmith, Khwaja, and Kremer: “Estimating the Impact of the Hajj: Religion and Tolerance in Islam’s Global Gathering

We estimate the impact on pilgrims of performing the Hajj pilgrimage to Mecca. Our method compares successful and unsuccessful applicants in a lottery used by Pakistan to allocate Hajj visas. . . . We find that participation in the Hajj increases observance of global Islamic practices, such as prayer and fasting, while decreasing participation in localized practices and beliefs, such as the use of amulets and dowry. It increases belief in equality and harmony among ethnic groups and Islamic sects and leads to more favorable attitudes toward women, including greater acceptance of female education and employment. Increased unity within the Islamic world is not accompanied by antipathy toward non-Muslims. Instead, Hajjis show increased belief in peace, and in equality and harmony among adherents of different religions. The evidence suggests that these changes are likely due to exposure to and interaction with Hajjis from around the world, rather than to a changed social role of pilgrims upon return.

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Written by Alex

July 29, 2009 at 11:12 am

Posted in Uncategorized

Tagged with ,

One Response

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  1. Wow, great papers, I’m downloading the Guiso one right now (trying to find a version without the “Uncorrected Proof” across the pages).

    Brian

    July 29, 2009 at 10:23 pm


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