Inter-Industry Wage Differentials: Evidence from Belgium in a Cross-National Perspective

This paper examines the existence and magnitude of inter-industry wage differentials in Belgium. Using the 1995 Structure of Earnings Survey, a rich employer-employee matched database, we find significant sectoral wage differentials among workers who are apparently similar from the point of view of their individual characteristics and working conditions. Results also suggest that these differences derive partly from the features of the employers in each sector (size of the establishment, bargaining regime). In an international perspective, results fit in with findings from earlier studies on the existence of a negative relation between the dispersion of inter-industry wage differentials and the degree of corporatism.     

Walloon & Flemish videotex trials

This article focuses on the problems surrounding ‘compunication’, ie the growing imbrication between electronic computers and telecommunications. (The corresponding French term is télématique). More precisely, the specific problems of videotex systems thrown up by different experiments in Belgium are examined. The CCITT of the ITU uses the term videotex as the generic name referring to all systems that make it possible to gain information through telecommunication networks (Hertzian waves, cable TV distribution networks or telephone lines). Requested information appears on a TV screen (at home, in a place of work or in a public place).     

The decentralization of credit: A selected summary of the Mayoux report

The Mayoux Report is the official report of a Committee of Inquiry headed by Jacques Mayoux that examined problems of the local and regional financial opportunities of small and medium-sized firms. This note, written by two of the aides to Mr. Mayoux in the preparation of the report, provides a summary of the major findings and suggestions of the Committee regarding banking reform. The principal recommendations include the simplification and decentralization of the granting of credit in France and continued steps toward the balancing of the rules and conditions governing lending and deposit collection among the various French financial institutions. It appeared to the Committee that the compartmentalization of French financial institutions due to the special rules under which specific institutions are permitted to operate was the major obstacle preventing better distributions of credit in France.     

Outcomes of voting and planning: Condorcet,Weber and Rawls locations

The paper is concerned with the comparison of the locations of a facility resulting from voting and planning procedures. It is shown that a voting location exists and coincides with that minimizing the total distance covered by the users to go to the facility when the transportation network contains no cycles. For a general network, least upper bounds on the ratio of the social values of the voting and planning locations are given in the cases where the total or the maximal travelled distance is minimized.     

Propensity to firm creation: empirical research using structural equations

The identification of the entrepreneurs’ characteristics and the knowledge of the entrepreneurial profile of university students have been assuming a growing importance in the development of educational programs directed towards the entrepreneurship and start-up processes. This study aims to identify the factors that most contribute for the intention to start up a business. The research also tries to identify the profile of a potential entrepreneur student concerning several characteristics: personal attributes, family, demographic variables and motivations. Research findings include the idea that entrepreneurship education is the most relevant factor in what concerns the propensity to business creation. On the other side, personal characteristics have an important role in shaping motivation to start-up a business and perceived hurdles have a negative impact in the intention to start-up. The results may be relevant when developing an adequate educational program directed to the entrepreneurship education and start-up processes.     

Assessing Productivity Gains from International Trade in a Small Open Economy

Empirical evidence suggests that exporter firms tend to charge higher markups than non-exporters due to trade barriers. The exporters’ markup premium, however, may disappear in a special case, namely when the home country is small relative to its trade partners and trade barriers are low. This can be because competition is more intense in the large export destination than in the small home country, so that firms are able to set higher markups for locally sold products but not for exports. This paper provides empirical evidence on the validity of this special case by estimating markups for firms in Luxembourg who generally export to larger countries. The estimated negative markup premium for exporters has important implications for the productivity measurement. In a sufficiently small open economy, exporters’ productivity may be biased downward, when the firm-level markup variation is not controlled for in the productivity estimation. The bias in the productivity estimates further leads to the inaccurate conclusion that openness to international trade lowers allocative efficiency.     

Price Rigidity in Turkey: Evidence from Micro Data

In this study we investigate the duration of consumer price spells and price change patterns for Turkey by employing a comprehensive micro price data covering around 6,000 items over four years. In detail, we analyze how long typical price spell lasts and we investigate the size, frequency, distribution and synchronization of price changes. Compared to advanced economies, a higher frequency of price changes is estimated. Findings suggest substantial heterogeneity among sub-groups in terms of frequency and synchronization indicators. The mixed evidence of both state and time-dependent pricing is also relevant for Turkey, an emerging market economy.