Does accounting conservatism pay?

We investigate whether or not there is a link between conservative accounting practices and the sensitivity of executive pay to accounting performance. Using several accrual‐based measures of accounting conservatism as well as alternative measures of accounting performance, we estimate an econometric model of CEO compensation that incorporates the interaction of accounting conservatism and accounting performance. Consistent with optimal contracting theory, we find that the sensitivity of executive pay to accounting performance is higher for firms that report conservative accounting earnings. These results support the hypothesis that accounting conservatism, by limiting earnings management opportunities and improving the reliability of accounting performance measures, allows firms to formulate contracts that tie executive compensation more closely to accounting performance.     

Flexibility at the Margin and Labor Market Volatility in OECD Countries*

We study the business‐cycle behavior of segmented labor markets with flexibility at the margin (e.g., just affecting fixed‐term contracts). We present a matching model with temporary and permanent jobs (i) where there is a gap in the firing costs associated with these types of jobs and (ii) where there are restrictions in the creation and duration of fixed‐term contracts. We show that a labor market with ``flexibility at the margin'' increases the unemployment volatility with respect to one that is fully regulated. This analysis yields new insights into the interpretation of the recent volatility changes witnessed in the OECD area.     

Incentives and the Sorting of Altruistic Agents into Street‐Level Bureaucracies*

Many street‐level bureaucrats have the dual task of helping some clients, while sanctioning others. We develop a model of a street‐level bureaucracy, and we study the implications of its personnel policy on the self‐selection and allocation decisions of agents who differ in altruism towards clients. When bureaucrats are paid flat wages, they do not sanction, and the most altruistic types sort into bureaucracy. Pay‐for‐performance induces some bureaucrats to sanction, but it necessitates an increase in compensation, which can result in sorting from the top and bottom of the altruism distribution. We also explain why street‐level bureaucrats often experience an overload of clients.     

Earnings inequality and the informal economy

We analyse the extent and evolution of informality and inequality in the Serbian labour market between 2002 and 2007, using data from the Living Standard Measurement Surveys. Two surprising results emerge. First, the level of informal employment has risen significantly over the period, despite strong economic growth and the introduction of a range of market‐oriented reforms. Secondly, the level of inequality in earnings seems to have remained more or less constant over the period, in contrast to the experience of other countries at a similar stage of transition. We show that informal employees earn significantly less than those in the formal sector, controlling for a range of other variables, and informality plays an increasingly important role in explaining earnings inequality.     

基于51IP核的数字钟设计

本设计基于FPGA 51JP软核技术的数字钟,在VHDL语言环境下,采用自顶向下的设计方法,在FPGA中嵌入51软核.在FPGA 中嵌入51软核后,使其兼有51单片机的功能.系统主芯片采用EP2C5T144C8,由时钟模块、控制模块、显示以及报时模块组成.设计具有年、月、日、时、分、秒显示功能,以24小时循环计时显示,同时该数字钟可实现整点提示、定时报警功能,通过键盘对数字钟的校时、清零、启停等进行设置.     

The Dynamics of Poverty and the Promotion of Transition from Non‐Regular to Regular Employment in Japan: Economic Effects of Minimum Wage Revision and Job Training Support

Comparison between Japan and other advanced countries shows that the relative poverty rate is high in Japan, and that many of the poor households are those with a non‐regular worker. As for mobility between income classes, the proportion of households remaining in the poor class for a long period of time in Japan is close to the average for EU countries. The panel estimation of its effect on wages shows that the raising of the minimum wage is statistically significantly associated with an increase in wages of non‐regular workers, in particular, female, but does not seem to decrease employment. The result shows that for male non‐regular workers, firm‐provided training promotes their transition to regular employment, and that for female non‐regular workers, occupational training promotes their transition to regular employment at different firms.     

Capital incentives and adequacy for securitizations

This paper analyzes the capital incentives and adequacy of financial institutions for asset portfolio securitizations. The empirical analysis is based on US securitization rating and impairment data. The paper finds that regulatory capital rules for securitizations may be insufficient to cover implied losses during economic downturns such as the Global Financial Crisis. In addition, the rating process of securitizations provides capital arbitrage incentives for financial institutions and may further reduce regulatory capital requirements. These policy-relevant findings assume that the ratings assigned by rating agencies are correct and can be used to build a test for the ability of Basel capital regulations to cover downturn losses.     

A LONG‐RUN VIEW OF THE UNIVERSITY GENDER GAP IN AUSTRALIA*

Australian universities were first established in the 1850s, well before the introduction of compulsory schooling. From the middle of the twentieth century, the introduction of mass secondary school education and the expansion of the number of universities widened student access to universities. Subjects offered in higher education increased in scope and labour market discrimination diminished. These factors, together with supply‐side changes, meant that women were more easily able to shift into investing in skills. By 1987, Australian women were more likely than men to be enrolled at a university. These aggregate figures, however, disguise considerable heterogeneity across fields of study.     

Mustn't Grumble: Immigration,Health and Health Service Use in the UK and Germany*

A rise in population caused by increased immigration is sometimes accompanied by concerns that the increase in population puts additional or differential pressure on welfare services, which might affect the net fiscal contribution of immigrants. The UK and Germany have experienced significant increases in immigration in recent years and this study uses longitudinal data from both countries to examine whether immigrants differ in their use of health services from native-born individuals on arrival and over time. While immigrants to Germany, but not the UK, are more likely to self-report poor health than the native-born population, the samples of immigrants use hospital and GP services at broadly the same rate as the native-born populations in both countries. Controls for observed and unobserved differences between immigrants and native-born sample populations make little difference to these broad findings.