Wage and Mobility Effects of Trade and Migration on the Austrian Labour Market

This study analyses the effect of trade and migration on wages and labour marketmobility. We estimate wage growth equations and a multinomial logit mobilityequation on an individual data set ranging from 1991 to 1994. We find substantialdifferences in the reactions of white and blue-collar workers wages and mobilityto trade and migration. In Austria exports have a positive and imports a negativeimpact on wage growth only for blue-collar workers. Migrants also reduce onlyblue-collar workers wage growth. Our results indicate that higher imports and aninflow of migrants reduce sectoral mobility of all types workers. The risk of beingout of work by contrast is increased by migration and imports only for blue-collarworkers, but reduced by exports for all types of workers. In general our results suggestenlargement of the EU would have only small effects on the Austrian labour market.     

Pricing Double-Trigger Reinsurance Contracts: Financial Versus Actuarial Approach

This article discusses various approaches to pricing double‐trigger reinsurance contracts—a new type of contract that has emerged in the area of ‘‘alternative risk transfer.’’ The potential coverage from this type of contract depends on both underwriting and financial risk. We determine the reinsurer's reservation price if it wants to retain the firm's same safety level after signing the contract, in which case the contract typically must be backed by large amounts of equity capital (if equity capital is the risk management measure to be taken). We contrast the financial insurance pricing models with an actuarial pricing model that has as its objective no lessening of the reinsurance company's expected profits and no worsening of its safety level. We show that actuarial pricing can lead the reinsurer into a trap that results in the failure to close reinsurance contracts that would have a positive net present value because typical actuarial pricing dictates the type of risk management measure that must be taken, namely, the insertion of additional capital. Additionally, this type of pricing structure forces the reinsurance buyer to provide this safety capital as a debtholder. Finally, we discuss conditions leading to a market for double‐trigger reinsurance contracts.     

Etablierung einer nationalen Rohstoffbuchhaltung und dafür notwendige Informationen und Informationsgüte

The influence of anthropogenic processes on global material flow systems increasingly dominates the influence of natural processes. In this context, the provision of detailed knowledge on material flow systems is relevant for decision makers in resource policy. This information can be provided in the form of one-year material balances or, if repeated over a period of consecutive years, in the form of national resource budgets. In national resource budgets, all relevant flows of a material through a national economy are balanced and displayed in neatly arranged diagrams. By updating these material balances over a series of years, the development of material stocks can be estimated. Upcoming challenges both regarding supply and disposal of materials can be identified. Comprehensive balances are useful for decision makers in resource policy and, moreover, as an information basis for future exploitation of anthropogenic resources. However, both availability of data and possibilities for assessing the reliability of data are very limited. In this work, a methodology for investigating and evaluating the information basis of national resource budgets is presented. The methodology includes procedures for systematic characterization of resource budget data and formal procedures for evaluating their reliability. From a scientific perspective, the methodology contributes to understanding material flow systems better. It also enables implementing procedures towards national resource budgets in an administrative context.     

Anteil erneuerbarer Energien und klimarelevante CO2-Emissionen aus der thermischen Verwertung von Abfällen in Österreich

Since combustible wastes usually consist of biogenic (e.g. paper, wood, food waste) and fossil organic matter (plastics), their thermal recovery results in climate neutral and climate relevant CO₂ emissions. Moreover, the fraction of biogenic materials in the waste feed is relevant for the amount of renewable energy produced. The latter has to be reported and might be subsidized according to national laws (e.g. based on European directive 2009/28/EG). The present study represents the first comprehensive evaluation of the share of biogenic and fossil materials in the waste feed of waste-to-energy (WTE) plants on a national basis. The Balance Method, which is patented on a European level by TU Wien, was applied to 10 out of 13 Austrian WTE plants (around 2.3 Mio tons of waste corresponding to around 88 % of the overall waste feed in Austrian WTE plants). The method is based on the mathematical reconciliation of the material properties (e.g. mean chemical composition of biogenic and fossil materials) and routinely recorded operating data of WTE plants (e.g. flue gas volume, CO₂ and O₂-content in the dry flue gas, steam production). The results demonstrate large variations for the share of energy from biogenic sources in the different WTE plants, ranging from 35.7 ± 2.4 % to 61.2 ± 2.7 % (based on annual averages). Additionally, for several WTE plants large temporal variations can be observed based on monthly mean values. Thus, a plant-specific and continuous evaluation of the waste composition in WTE plants (which the Balance Method allows to do at reasonable efforts) can be recommended for a reliable reporting of the renewable share of energy or fossil CO₂ emissions from waste incineration. The energy input which stems from fossil and biogenic sources can be estimated to 11,450 ± 120 TJ and 10,730 ± 110 TJ, respectively for the year 2014 (for the 10 WTE plants). In total 1060 ± 24 kt fossil CO₂ emissions from the thermal recovery of waste in Austria’s WTE plants in 2014 could be determined (estimation for all 13 WTE plants).     

Structural vector autoregressions with Markov switching: Combining conventional with statistical identification of shocks

In structural vector autoregressive (SVAR) analysis a Markov regime switching (MS) property can be exploited to identify shocks if the reduced form error covariance matrix varies across regimes. Unfortunately, these shocks may not have a meaningful structural economic interpretation. It is discussed how statistical and conventional identifying information can be combined. The discussion is based on a VAR model for the US containing oil prices, output, consumer prices and a short-term interest rate. The system has been used for studying the causes of the early millennium economic slowdown based on traditional identification with zero and long-run restrictions and using sign restrictions. We find that previously drawn conclusions are questionable in our framework.     

Wertorientierte Unternehmenssteuerung in der Versicherung

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Who is Who     

Wage differences between Austrian men and women: <Emphasis Type="Italic">semper idem?</Emphasis>

In most OECD countries, the wage gap between men and women has narrowed during the past two decades. Developments of the last 20 years, e.g., increased labour market attachment of women or the introduction of equal pay laws, may have reduced the gender wage gap. We investigate the extent, persistence, and socio-economic determinants of the gender wage gap in Austria, for the years 1983 and 1997. Using wage decomposition techniques, we find that the average gender wage gap was almost as high in 1997 as it was in 1983. Not accounting for differences, the gender wage gap dropped from 25.5 to 23.3% of men’s wages. Taking observable differences between men and women into account, we estimate that the mean gender wage gap that cannot be explained, i.e., discrimination against women, dropped from 17 to 14% of men’s wages. A decomposition of the gender wage gap over time indicates that both returns to human capital and less discrimination were responsible for the narrowing of the gender wage gap.