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We model the decisions of young individuals to stay in school or drop out and engage in criminal activities. We build on the literature on human capital and crime engagement and use the framework of Banerjee (1993) that assumes that the information needed to engage in crime arrives in the form of a rumour and that individuals update their beliefs about the profitability of crime relative to education. These assumptions allow us to study the effect of social interactions on crime. In our model, we investigate informational spillovers from the actions of talented students to less talented students. We show that policies that decrease the cost of education for talented students may increase the vulnerability of less talented students to crime. The effect is exacerbated when students do not fully understand the underlying learning dynamics.
We test two hypotheses, based on sexual selection theory, about gender differences in costly social interactions. Differential selectivity states that women invest less than men in interactions with new individuals. Differential opportunism states that women’s investment in social interactions is less responsive to information about the interaction’s payoffs. The hypotheses imply that women’s social networks are more stable and path dependent and composed of a greater proportion of strong relative to weak links. During their introductory week, we let new university students play an experimental trust game, first with one anonymous partner, then with the same and a new partner. Consistent with our hypotheses, we find that women invest less than men in new partners and that their investments are only half as responsive to information about the likely returns to the investment. Moreover, subsequent formation of students’ real social networks is consistent with the experimental results: being randomly assigned to the same introductory group has a much larger positive effect on women’s likelihood of reporting a subsequent friendship.
The 2011 Arab Spring marked the opening of the Central Mediterranean Route for irregular border crossings between Libya and Italy, which produced heterogeneous reductions of bilateral smuggling distances between country pairs in the Mediterranean region. We exploit this source of spatial and temporal variation in bilateral distance along land and sea routes to estimate the elasticity of irregular migration intentions for African and Near East countries. We estimate an elasticity of migration intentions to smuggling distances exceeding −3, mainly driven by countries with weak rule of law and high internet penetration. Our findings are consistent across irregular migration measures both at the aggregate and individual levels. We show that irregular migration elasticity is higher for youth, relatively skilled individuals and those with an informative advantage (having a social network abroad or a mobile phone).
Can right‐wing terrorism increase support for far‐right populist parties and if so, why? Exploiting quasi‐random variation between successful and failed attacks across German municipalities, we find that successful attacks lead to significant increases in the vote share for the right‐wing, populist Alternative für Deutschland (AfD) party in state elections. Investigating channels, we find that successful attacks lead to differential increases in turnout which are mainly captured by the AfD. Using the German SOEP, a longitudinal panel of individuals, we investigate terror’s impact on individual political attitudes. We first document that people residing in municipalities that experience successful or failed attacks are indistinguishable. We then show that successful terror leads individuals to prefer the AfD, adopt more populist attitudes and report significantly greater political participation at the local level. Terror also leads voters to migrate away from (some) mainstream parties to the AfD. We also find differential media reporting: successful attacks receive more media coverage among local and regional publishers, coverage which makes significantly more use of words related to Islam and terror. Our results hold despite the fact that most attacks are motivated by right‐wing causes and targeted against migrants. Moreover, successful attacks that receive the most media coverage have nearly double the effect on the AfD vote share in state elections and they also increase the AfD vote share in Federal elections, highlighting media salience as a driver of our overall results.
Der Ökonom Prof. Guido Friebel hat zusammen mit anderen Wissenschaftler*innen die Einführung eines sogenannten Mitarbeiterempfehlungsprogramms (ERP = Employee Referral Program) in einer Lebensmittelkette untersucht. Der größte Effekt liegt in der gestiegenen Wertschätzung der Mitarbeitenden seitens der Unternehmensleitung.