Convergence in West German Regional Unemployment Rates

Abstract. Differences in regional unemployment rates are often used to describe regional economic inequality. This paper asks whether changes in regional unemployment differences in West Germany are persistent over time. Understanding the persistency of regional unemployment differences helps us to assess how effective regional policy can be. While univariate tests suggest that changes in regional unemployment differences are persistent in West Germany, more powerful panel tests lend some support to the hypothesis that regional unemployment rates converge. However, these tests reveal a moderate speed of convergence at best. Because there is a structural break following the second oil crisis, we also use tests that allow for such a break. This provides evidence for both convergence and quick adjustment to an equilibrium distribution of regional unemployment rates that is, however, subject to a structural break.     

Who Has the Time? Community College Students’ Time-Use Response to Financial Incentives

We evaluate the effect of performance-based scholarship programs for post-secondary students on student time use and effort and whether these effects are different for students we hypothesize may be more or less responsive to incentives. To do so, we administered a time-use survey as part of a randomized experiment in which community college students in New York City were randomly assigned to be eligible for a performance-based scholarship or to a control group that was only eligible for the standard financial aid. This paper contributes to the literature by attempting to get inside the “black box” of how students respond to a monetary incentive to improve their educational attainment. We find that students eligible for a scholarship devoted more time to educational activities, increased the quality of effort toward and engagement with their studies, and allocated less time to leisure. Additional analyses suggest that students who were plausibly more myopic (place less weight on future benefits) were more responsive to the incentives, but we find no evidence that students who are arguably more time constrained were less responsive to the incentives.

     

More reasons why farmers have so little interest in futures markets

The use by farmers of futures contracts and other hedging instruments has been observed to be low in many situations, and this has sometimes seemed to be considered surprising or even mysterious. We propose that it is, in fact, readily understandable and consistent with rational decision making. Standard models of the decision about optimal hedging show that it is negatively related to basis risk, to quantity risk, and to transaction costs. Farmers who have less uncertainty about prices and those with a diversified portfolio of investments have lower optimal levels of hedging. If a farmer has optimistic price expectations relative to the futures market, the incentive to hedge can be greatly reduced. And finally, farmers who have low levels of risk aversion have little to gain from hedging in terms of risk reduction, in that the certainty‐equivalent payoff at their optimal hedge may be little different than the certainty equivalent under zero hedging. These reasons are additional to the argument of Simmons (2002) who showed that, if capital markets are efficient, farmers can manage their risk exposure through adjusting their leverage, obviating the need for hedging instruments.     

In Vino ‘No’ Veritas: impacts of fraud on wine imports in China

China is one of the largest wine importing countries in the world and is poised for continued import growth in the future. Increased wine purchases throughout China have given rise to persistent fraud where fake wines are packaged and sold with counterfeit contents and labels. For exporting countries like France, counterfeit wines displace market share, damage foreign brand reputation, and cause distrust in consumers who are aware of counterfeiting problems throughout the country. We examine the impact of fraudulent wine events (as measured by negative media reports) on Chinese wine demand differentiated by supplying country. We employ the Rotterdam demand system and a switching regression procedure to estimate import demand and compare results across different media variable specifications. Results consistently show that negative reports disproportionately affect French wine regardless of how the media variable is specified. This is not surprising because most fraudulent events involve French wine counterfeits.     

Robotics in the early childhood classroom: learning outcomes from an 8-week robotics curriculum in pre-kindergarten through second grade

In recent years there has been an increasing focus on the missing “T” of technology and “E” of engineering in early childhood STEM (science, technology, engineering, mathematics) curricula. Robotics offers a playful and tangible way for children to engage with both T and E concepts during their foundational early childhood years. This study looks at N = 60 children in pre-kindergarten through second grade who completed an 8-week robotics curriculum in their classrooms using the KIWI robotics kit combined with a tangible programming language. Children were assessed on their knowledge of foundational robotics and programming concepts upon completion of the curriculum. Results show that beginning in pre-kindergarten, children were able to master basic robotics and programming skills, while the older children were able to master increasingly complex concepts using the same robotics kit in the same amount of time. Implications for developmentally appropriate design of technology, as well as structure and pace of robotics curricula for young children are addressed.     

Reducing perceptions of overqualification and its impact on job satisfaction: the dual roles of interpersonal relationships at work

A sizeable portion of the working population perceives that they are overqualified for their jobs. This is problematic, given that research consistently shows that such beliefs translate into lower levels of job satisfaction. Hence, it behoves human resource management (HRM) scholars to identify factors that influence perceptions of overqualification and also moderators that may reduce the negative effect of perceived overqualification on job satisfaction. In this study, we present a moderated path model that posits that the quality of the relationships that employees hold with their leader and with their team is not only antecedents of perceived overqualification but it is also hypothesised to weaken the negative relationship between perceived overqualification and job satisfaction. Survey data that were gathered from two organisations in the Netherlands (n = 183) supported the model. Implications for theory and practice in HRM are discussed. © 2015 John Wiley & Sons Ltd     

Faculty Gender in the College Classroom: Does It Matter for Achievement and Major Choice?

Many feel that faculty members of the same gender may serve as role models, helping students to perform better in classes and encouraging them to continue in a subject. However, while higher education research has found evidence of positive effects of matching on gender, there are also many findings of zero impact. The main hurdle in this literature is identifying the exogenous impact in the absence of student sorting by gender. This article addresses this difficulty by using institutional data from a private liberal arts institution to examine outcomes for students in courses taught by new faculty members for which the students would not know the gender before registering. Results provide evidence of a role model effect for both genders; students earn higher grades in courses taught by same‐gender instructors in fields traditionally dominated by the opposite gender. Major choice and course‐taking behavior are mostly unaffected by faculty gender.