Balsvik and Bennett present at EALE
Ragnhild Balsvik and Patrick Bennett are at the European Association of Labour Economists (EALE) conference this week to present their papers.
The 29th EALE Conference 2017 takes place at the University of St.Gallen, Switzerland, 21.- 23.09.2017.
Balsvik at EALE
Ragnhild Balsvik is an associate professor at FAIR-CELE and is presenting her paper "Rent Sharing with Footloose Production: Foreign Ownership, Unions and Wages" co-authored with Morten Sæthre.
We present a bargaining model of wage setting that predicts that foreign acquisitions might hurt the bargaining outcome of powerful unions by giving the firm a credible threat to shift production abroad. We test this prediction with matched employer--employee data that include plant-level information on union density. In particular, we use a differences-in-differences approach to compare the change in wages after an acquisition in plants with high and low union density. Foreign acquisitions are associated with significantly lower wages for the group of plants with high union density compared with the group of plants with low union density, and the estimated effect is in the range of 2--7%. A matching estimator gives similar results.
Bennett at EALE
Patrick Bennett is an assistant professor at FAIR-CELE and is presenting his paper "Negative Attitudes, Networks and Education” at the European Association of Labour Economists (EALE) conference this week.
This paper assesses, both theoretically and empirically, the potential explanations behind the educational gap between young natives and immigrants using two measures, negative attitudes towards immigrants and networking. The paper considers the impact of negative attitudes and networking and that these parameters may influence high and uneducated workers as well as immigrants and natives differently, creating different incentives to acquire education for the two ethnic groups. Using rich Danish administrative data, this paper finds suggestive evidence rejecting the theoretical case where negative attitudes decrease 1st generation immigrant education and indications that the quality of networks seems to matter more for immigrants than the quantity of individuals in a potential network.