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fileadmin/Documents/Publikationen/Studien_II/SI10.PolicyNote.How well does education travel-Education and occupation with and without migration.pdf

Abstract: Using the Labour Force Survey (LFS) we explore the difference international migration makes for the distribution of occupational levels for any given level of education in the two countries of interest: Austria and Germany. Migrant outcomes are also being compared with home country outcomes, i.e. Serbia and Turkey. We find that education is imperfectly portable across national borders. Austrian employers treat schooling from certain countries of origin differently from the way they treat schooling from natives. Educational levels completed in Western European countries are obviously more transferable across national borders than educational levels completed elsewhere. Workers in their home country all have similar occupational returns to education but migrants in Austria or Germany lag considerably behind. Middle and higher education in particular are not equally rewarded if from abroad. The low value of foreign-acquired education may reflect discrimination, differences in school quality across continents of origin, imperfect knowledge of the evaluation of foreign credentials on the side of the employer or the low compatibility of the foreign-acquired education with the requirements and the specific orientation of the host country labour market.

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fileadmin/Documents/Publikationen/Studien_II/SI10.ExecutiveSummary.How well does education travel-Education and occupation with and without migration.pdf

Abstract: Using the Labour Force Survey (LFS) we explore the difference international migration makes for the distribution of occupational levels for any given level of education in the two countries of interest: Austria and Germany. Migrant outcomes are also being compared with home country outcomes, i.e. Serbia and Turkey. We find that education is imperfectly portable across national borders. Austrian employers treat schooling from certain countries of origin differently from the way they treat schooling from natives. Educational levels completed in Western European countries are obviously more transferable across national borders than educational levels completed elsewhere. Workers in their home country all have similar occupational returns to education but migrants in Austria or Germany lag considerably behind. Middle and higher education in particular are not equally rewarded if from abroad. The low value of foreign-acquired education may reflect discrimination, differences in school quality across continents of origin, imperfect knowledge of the evaluation of foreign credentials on the side of the employer or the low compatibility of the foreign-acquired education with the requirements and the specific orientation of the host country labour market.

Weblink:	fileadmin/Documents/Publikationen/Studien_II/Studien_2009_adapted_file_names/SI10.PolicyNote.How_well_does_education_travel_Education_and_occupation_with_and_without_migration.pdf _blank
File:	fileadmin/Documents/Publikationen/Studien_II/Studien_2009_adapted_file_names/SI10.ResearchReport..How_well_does_education_travel_Education_and_occupation_with_and_without_migration.pdf

Abstract: Using the Labour Force Survey (LFS) we explore the difference international migration makes for the distribution of occupational levels for any given level of education in the two countries of interest: Austria and Germany. Migrant outcomes are also being compared with home country outcomes, i.e. Serbia and Turkey. We find that education is imperfectly portable across national borders. Austrian employers treat schooling from certain countries of origin differently from the way they treat schooling from natives. Educational levels completed in Western European countries are obviously more transferable across national borders than educational levels completed elsewhere. Workers in their home country all have similar occupational returns to education but migrants in Austria or Germany lag considerably behind. Middle and higher education in particular are not equally rewarded if from abroad. The low value of foreign-acquired education may reflect discrimination, differences in school quality across continents of origin, imperfect knowledge of the evaluation of foreign credentials on the side of the employer or the low compatibility of the foreign-acquired education with the requirements and the specific orientation of the host country labour market.

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fileadmin/Documents/Publikationen/Policy_Briefs/05.FIW_PolicyBrief.Wechselkurse.final.pdf

Abstract: Zuerst war es die Hartwährungspolitik, dann die Mitgliedschaft im Euroraum, die den Zusammenhang zwischen Wechselkursen und österreichischem Außenhandel in Vergessenheit geraten ließen. Der massive Einbruch des Welthandels im Zuge der Finanzmarktkrise und die jüngste Euroschwäche ge-genüber dem USD rückten ihn jedoch wieder ins Blickfeld. Tatsächlich reagierte der Außenhandel in Österreich in der Krise wesentlich stärker als das BIP, wobei der Handel mit EU-Partnern deutlich stärker einbrach als der Handel mit Drittstaaten. Ausschlaggebend dafür war vor allem der Nachfrageeinbruch auf den österreichischen Exportmärkten, insbesondere jener bei dauerhaften Konsumgütern, Maschinen und Fahrzeugen. Angesichts des massiven Nachfrageausfalls blieb die Wechselkursentwicklung nur von untergeordneter Bedeutung. Offensichtlich haben der Vertrauensverlust in der Krise, aber auch unterschiedliche Reaktionen von Produzenten und Konsumenten oder auch auf Firmenebene die preislich bedingten Reaktionsmechanismen stark gedämpft.

Abstract: This paper examines the export experience of China and other East Asian economies in the aftermaths of the global financial crisis against the backdrop of pre-crisis trade patterns. The analysis is motivated by the ‘decoupling’ thesis, which was a popular theme in the Asian policy circles in the lead-up to the onset of the recent financial crisis, and aims to probe three key issues: Was the East Asian trade integration story that underpinned the decoupling thesis simply a statistical artifact or the massive export contraction caused by an overreaction of traders to the global economic crisis and/or by the drying up of trade credit, which overpowered the cushion provided by intra-regional trade? What are the new policy challenges faced by the East Asian economies? Is there room for an integrated policy response that marks a clear departure from the pre-crisis policy stance favoring export-oriented growth? The findings caution against a possible policy backlash against openness to foreign trade arising from the new-found enthusiasm for rebalancing growth, and make a strong case for a long-term commitment to non-discriminatory multilateral and unilateral trade liberalization.

Abstract: This paper deals with firms’ decision related to international activities in a twocountry oligopoly model with a homogeneous product and unionized labor markets. Using a three-stage non-cooperative game with firms being first movers, it is found that firms’ strategies are affected by the scale of fixed costs of direct investments, trade costs and union wage strategies in labor markets, giving rise to different productive structures in equilibrium. Scopes and incentives for unions’ collusion are analyzed. The consequences on national welfare levels of both unions and firms’ strategic behavior are also investigated, deriving some policy insights.

Abstract: This paper contributes to the empirical literature on the home-country effects of FDI. Instead of comparing FDI firms to non-FDI firms, we look at what happens within multi-plant FDI firms and we compare headquarters to onheadquarter plants belonging to the same firm. Using survey data on Italian industrial firms, we find that in FDI firms non-headquarter plants show a significantly worse performance in terms of employment and investment than headquarter plants. This suggests that the home-country effects of FDI tend to be biased in favour of headquarters.

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fileadmin/Documents/Publikationen/Studien_II/SI09.PolicyNote.Migrants_and_Economic_Performance_in_the_EU15.pdf

Abstract: Studies regarding the migrants’ impact upon performance variables and in particular upon productivity growth – which is the focus of this study - are few although there has been an increased interest in this area. This study addresses this issue in a cross-country and regional perspective with a focus on EU-27 countries at the industry level. In the first part of the study the focus is on employment patterns of migrants regarding their shares in employment, the composition in terms of places of origin, and an important aspect of the analysis is the study of their ‘skills’ (measured by educational attainment levels) and the utilisation of these skills relative to those of domestic workers. The second part of the study conducts a wide range of ‘descriptive econometric’ exercises analysing the relationship between migrants employment across industries and regions and output and productivity growth. We do obtain robust results with respect to the positive impact of the presence of high-skilled migrants especially in high-education-intensive industries and also more generally – but less robustly – on the relationship between productivity growth and the shares of migrants and of high-skilled migrants in overall employment. There is also an analysis of the impact of different policy settings with respect to labour market access of migrants and to anti-discrimination measures. The latter have a significant positive impact on migrants’ contribution to productivity growth. In the analysis of impacts of migrants on value added and labour productivity growth at the regional level we add migration variables to robust determinants of growth and find positive and significant relationships between migrants’ shares (and specifically of high-skilled migrants) and regional productivity growth. The limitations of the study with respect to data issues, causality and selection effects are discussed which give scope for further research.

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fileadmin/Documents/Publikationen/Studien_II/SI09.ExecutiveSummary.Migrants_and_Economic_Performance_in_the_EU15.pdf

Abstract: Studies regarding the migrants’ impact upon performance variables and in particular upon productivity growth – which is the focus of this study - are few although there has been an increased interest in this area. This study addresses this issue in a cross-country and regional perspective with a focus on EU-27 countries at the industry level. In the first part of the study the focus is on employment patterns of migrants regarding their shares in employment, the composition in terms of places of origin, and an important aspect of the analysis is the study of their ‘skills’ (measured by educational attainment levels) and the utilisation of these skills relative to those of domestic workers. The second part of the study conducts a wide range of ‘descriptive econometric’ exercises analysing the relationship between migrants employment across industries and regions and output and productivity growth. We do obtain robust results with respect to the positive impact of the presence of high-skilled migrants especially in high-education-intensive industries and also more generally – but less robustly – on the relationship between productivity growth and the shares of migrants and of high-skilled migrants in overall employment. There is also an analysis of the impact of different policy settings with respect to labour market access of migrants and to anti-discrimination measures. The latter have a significant positive impact on migrants’ contribution to productivity growth. In the analysis of impacts of migrants on value added and labour productivity growth at the regional level we add migration variables to robust determinants of growth and find positive and significant relationships between migrants’ shares (and specifically of high-skilled migrants) and regional productivity growth. The limitations of the study with respect to data issues, causality and selection effects are discussed which give scope for further research.

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File:	fileadmin/Documents/Publikationen/Studien_II/SI09.ResearchReport.Migrants_and_Economic_Performance_in_the_EU15.pdf

Abstract: Studies regarding the migrants’ impact upon performance variables and in particular upon productivity growth – which is the focus of this study - are few although there has been an increased interest in this area. This study addresses this issue in a cross-country and regional perspective with a focus on EU-27 countries at the industry level. In the first part of the study the focus is on employment patterns of migrants regarding their shares in employment, the composition in terms of places of origin, and an important aspect of the analysis is the study of their ‘skills’ (measured by educational attainment levels) and the utilisation of these skills relative to those of domestic workers. The second part of the study conducts a wide range of ‘descriptive econometric’ exercises analysing the relationship between migrants employment across industries and regions and output and productivity growth. We do obtain robust results with respect to the positive impact of the presence of high-skilled migrants especially in high-education-intensive industries and also more generally – but less robustly – on the relationship between productivity growth and the shares of migrants and of high-skilled migrants in overall employment. There is also an analysis of the impact of different policy settings with respect to labour market access of migrants and to anti-discrimination measures. The latter have a significant positive impact on migrants’ contribution to productivity growth. In the analysis of impacts of migrants on value added and labour productivity growth at the regional level we add migration variables to robust determinants of growth and find positive and significant relationships between migrants’ shares (and specifically of high-skilled migrants) and regional productivity growth. The limitations of the study with respect to data issues, causality and selection effects are discussed which give scope for further research.

Abstract: I use the STAN database of the OECD and different econometric methods to investigate the effects of exports towards the EU-15 on wages in the Visegrad countries (CEEC-4; Czech Republic, Hungary, Poland, and Slovakia). The results do not allow to draw any definite statements about this effect. While the impact of exports towards the EU-15 on wages in the countries investigated is likely to be negative in the short run (1-2 years), it seems to be positive in the medium and long run, at least for Hungary and Poland. Nevertheless, it is clear that the pattern of the CEEC-4 exports towards the EU-15 does not correspond with the predictions of the Heckscher-Ohlin model. Therefore, also the theorems of Stolper and Samuelson (1941) and concerning the equalization of factor prices, which are based on the Heckscher-Ohlin model, do not seem accurate to describe the underlying forces linking trade with factor prices. I argue that missing regional and related inter-sectoral labor mobility might be a potential factor preventing employees from taking advantage of trade liberalization. To substantiate this suspicion, however, analysis of more disaggregated data is necessary

Abstract: Using the dynamic conditional correlation (DCC) model due to Engle (2002), we estimate time varying correlations of quarterly real GDP growth among the G7 countries. In general, we find that rather heterogeneous patterns of international synchronization exist during U.S. recessions. During the 2007 - 2009 recession, however, international co-movement increased substantially.

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fileadmin/Documents/Publikationen/Policy_Briefs/04.FIW_PolicyBrief.Which_Growth_Model_for_Central_and_Eastern_Europe_after_the_Crisis_final.pdf

Abstract: This Policy Brief discusses the growth prospects of the Central and Eastern European (CEEC) region following the current economic crisis. It argues that the 'integration model of growth' of the CEEC region was characterised by a very high degree of external liberalisation. In one group of economies (mostly the Central European economies) the model turned out to be successful in that it did not generate strong structural imbalances (in trade and current accounts and in growing private sector savings-investment gaps) prior to the crisis. This was quite different in the other group (mostly the Baltic states and the countries in Southeastern Europe, SEE) where unsustainable imbalances developed in part traced back to historical weaknesses of the tradable sectors and in part to choices of exchange rate regimes, to the importance of remittances and to missing instruments to deal with cross-border financial market integration. The analysis suggests a number of factors which will characterise post-crisis condi-tions in CEECs (such as increased savings rates of the household sector, deleveraging, more restricted fiscal pol-icy space, etc.) and in external factors (lower growth in the most important Western European export markets, more difficult effective entry conditions to the EMU, etc.) and discusses an adjusted policy agenda.

Abstract: This paper analyzes the influence of financial integration on institutional quality. We construct a dynamic political-economic model of an autocracy in which a ruling elite uses its political power to expropriate the general population. Although financial integration reduces capital costs for entrepreneurs and thereby raises gross incomes in the private sector, the elite may counteract this effect by increasing the level of expropriation. Since de facto political power is linked to economic resources, financial integration also has long-run consequences for the distribution of power and for the rise of an entrepreneurial class.

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File:	fileadmin/Documents/Publikationen/Studien_II/Studien_2009_adapted_file_names/SI08.Research_Report.Qualification_Structure.pdf

Abstract: This project focuses on comparing the qualification structure of migrants residing in Austria as well as their over- and underqualification rates to other EU countries. The skill structure of foreign born residing in Austria has improved slightly in the last years. Austria is, however, characterised by a high share of medium skilled migrants and a low share of highly skilled migrants. In addition among the pool of migrants in the EU from a given country, Austria generally selects the less qualified. The location decisions of highly skilled migrants are mostly governed by income opportunities, labour market conditions, ethnic networks and a common official language. Over- and under-qualification rates among the foreign born in Austria largely accord with the European average, the largest part of the differences can be explained by differences in qualification and country structure between the foreign born in Austria and the EU. Native-foreign born differentials in employment rates are, however, significantly higher in Austria than in other EU countries.

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fileadmin/Documents/Publikationen/Studien_II/SI08.Policy_Note.Qualification_Structure.pdf

Abstract: This project focuses on comparing the qualification structure of migrants residing in Austria as well as their over- and underqualification rates to other EU countries. The skill structure of foreign born residing in Austria has improved slightly in the last years. Austria is, however, characterised by a high share of medium skilled migrants and a low share of highly skilled migrants. In addition among the pool of migrants in the EU from a given country, Austria generally selects the less qualified. The location decisions of highly skilled migrants are mostly governed by income opportunities, labour market conditions, ethnic networks and a common official language. Over- and under-qualification rates among the foreign born in Austria largely accord with the European average, the largest part of the differences can be explained by differences in qualification and country structure between the foreign born in Austria and the EU. Native-foreign born differentials in employment rates are, however, significantly higher in Austria than in other EU countries.

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fileadmin/Documents/Publikationen/Studien_II/SI08.Executive_Summary.Qualification_Structure.pdf

Abstract: This project focuses on comparing the qualification structure of migrants residing in Austria as well as their over- and underqualification rates to other EU countries. The skill structure of foreign born residing in Austria has improved slightly in the last years. Austria is, however, characterised by a high share of medium skilled migrants and a low share of highly skilled migrants. In addition among the pool of migrants in the EU from a given country, Austria generally selects the less qualified. The location decisions of highly skilled migrants are mostly governed by income opportunities, labour market conditions, ethnic networks and a common official language. Over- and under-qualification rates among the foreign born in Austria largely accord with the European average, the largest part of the differences can be explained by differences in qualification and country structure between the foreign born in Austria and the EU. Native-foreign born differentials in employment rates are, however, significantly higher in Austria than in other EU countries.

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fileadmin/Documents/Publikationen/Working_Paper/N_046-Vujakovic.pdf

Abstract: In this article, a new composite globalisation index will be presented. With its 21 variables, it accounts for the multidimensionality of this phenomenon instead of relying purely on economic indicators. As compared to other existing globalisation indices, three major innovations are introduced in this New Globalisation Index (NGI). Firstly, five variables that have until now not been used in globalisation indices enter the calculations. Secondly, geographical distances between countries are incorporated into the index in the trade variable, so as to account for the distinction between globalisation and regional integration. A final innovation is a methodological one, which concerns the use of a statistical method (principal component analysis) to form subindices according to the statistical features of the variable structure. A control for country size is employed for significantly affected variables, as was done in some other globalisation indices before. The final index contains 70 countries and covers a period between 1995 and 2005.

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File:	fileadmin/Documents/Publikationen/Studien_II/SI07.Research_Report.Return_Migration.pdf

Abstract: In this study we analyse the labour market performance of Romanian and Bulgarian return migrants and whether it really pays off to return home. We looked at the employment dynamics of returnees from the perspective of employment and occupational status switches to capture the effects of the work experience abroad on the upgrade in the home labour market. After predicting the wages and measuring the wage premium upon return, we apply an endogenous switching ordered probit model to estimate simultaneously the decision to migrate temporarily and the determinants of an upgrading of labour market performance upon return. The labor market performance of return migrants is analysed by using the 2005 World Bank Surveys in Bulgaria and Romania. The main conclusion is that the interdependence in the decision-making between return migration and labour market participation requires counting them simultaneously. While, the labour market participation upon return are strongly determined by the intentions of a permanent return and the expectation of return premiums for the skills and experience acquired abroad, the permanent intentions of return are determined by the experience abroad, the family ties and by intentions of other household members to migrate.

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fileadmin/Documents/Publikationen/Studien_II/SI07.Policy_Note.Return_Migration.pdf

Abstract: In this study we analyse the labour market performance of Romanian and Bulgarian return migrants and whether it really pays off to return home. We looked at the employment dynamics of returnees from the perspective of employment and occupational status switches to capture the effects of the work experience abroad on the upgrade in the home labour market. After predicting the wages and measuring the wage premium upon return, we apply an endogenous switching ordered probit model to estimate simultaneously the decision to migrate temporarily and the determinants of an upgrading of labour market performance upon return. The labor market performance of return migrants is analysed by using the 2005 World Bank Surveys in Bulgaria and Romania. The main conclusion is that the interdependence in the decision-making between return migration and labour market participation requires counting them simultaneously. While, the labour market participation upon return are strongly determined by the intentions of a permanent return and the expectation of return premiums for the skills and experience acquired abroad, the permanent intentions of return are determined by the experience abroad, the family ties and by intentions of other household members to migrate.

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fileadmin/Documents/Publikationen/Studien_II/SI07.Executive_Summary.Return_Migration.pdf

Abstract: In this study we analyse the labour market performance of Romanian and Bulgarian return migrants and whether it really pays off to return home. We looked at the employment dynamics of returnees from the perspective of employment and occupational status switches to capture the effects of the work experience abroad on the upgrade in the home labour market. After predicting the wages and measuring the wage premium upon return, we apply an endogenous switching ordered probit model to estimate simultaneously the decision to migrate temporarily and the determinants of an upgrading of labour market performance upon return. The labor market performance of return migrants is analysed by using the 2005 World Bank Surveys in Bulgaria and Romania. The main conclusion is that the interdependence in the decision-making between return migration and labour market participation requires counting them simultaneously. While, the labour market participation upon return are strongly determined by the intentions of a permanent return and the expectation of return premiums for the skills and experience acquired abroad, the permanent intentions of return are determined by the experience abroad, the family ties and by intentions of other household members to migrate.

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fileadmin/Documents/Publikationen/Studien_II/SI06.Policy_Note.FDI_Multinational.pdf

Abstract: The study examines the impact of Austrian outward foreign direct investments (FDI) on home based parent company employment. The analysis is based on the AMADEUS firm-level database and an improved methodology by applying matching methods and the difference in difference estimator. In this way we are able to overcome the major shortcomings of earlier studies on the home market effects of Austrian outward FDI, which included data on foreign direct investors only leading to biased estimates and preventing the deduction of causal relationships. Overall the results indicate that investing abroad strengthens the employment performance in the home country. This is also true for Austrian foreign direct investments in Eastern European locations. We also analyse the major factors determining the firms' decision to invest abroad as well as decisions on the degree of multinationality, which we measure by the number of foreign affiliates owned. Firm size, firm age, the capital intensity and the number of shareholders are significant determinants for the number of subsidiaries. The analysis also corroborates theoretical results establishing the fact that foreign direct investment activities are driven by firm specific advantages and a superior productivity performance in the pre-investment period. Thus, firms that start foreign activities are ex-ante different from non-investing purely domestic firms.

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fileadmin/Documents/Publikationen/Studien_II/SI06.Executive_Summary.FDI_Multinational_01.pdf

Abstract: The study examines the impact of Austrian outward foreign direct investments (FDI) on home based parent company employment. The analysis is based on the AMADEUS firm-level database and an improved methodology by applying matching methods and the difference in difference estimator. In this way we are able to overcome the major shortcomings of earlier studies on the home market effects of Austrian outward FDI, which included data on foreign direct investors only leading to biased estimates and preventing the deduction of causal relationships. Overall the results indicate that investing abroad strengthens the employment performance in the home country. This is also true for Austrian foreign direct investments in Eastern European locations. We also analyse the major factors determining the firms' decision to invest abroad as well as decisions on the degree of multinationality, which we measure by the number of foreign affiliates owned. Firm size, firm age, the capital intensity and the number of shareholders are significant determinants for the number of subsidiaries. The analysis also corroborates theoretical results establishing the fact that foreign direct investment activities are driven by firm specific advantages and a superior productivity performance in the pre-investment period. Thus, firms that start foreign activities are ex-ante different from non-investing purely domestic firms.

Weblink:	fileadmin/Documents/Publikationen/Studien_II/SI06.Policy_Note.FDI_Multinational.pdf _blank
File:	fileadmin/Documents/Publikationen/Studien_II/SI06.Research_Report.FDI_Multinational.pdf

Abstract: The study examines the impact of Austrian outward foreign direct investments (FDI) on home based parent company employment. The analysis is based on the AMADEUS firm-level database and an improved methodology by applying matching methods and the difference in difference estimator. In this way we are able to overcome the major shortcomings of earlier studies on the home market effects of Austrian outward FDI, which included data on foreign direct investors only leading to biased estimates and preventing the deduction of causal relationships. Overall the results indicate that investing abroad strengthens the employment performance in the home country. This is also true for Austrian foreign direct investments in Eastern European locations. We also analyse the major factors determining the firms' decision to invest abroad as well as decisions on the degree of multinationality, which we measure by the number of foreign affiliates owned. Firm size, firm age, the capital intensity and the number of shareholders are significant determinants for the number of subsidiaries. The analysis also corroborates theoretical results establishing the fact that foreign direct investment activities are driven by firm specific advantages and a superior productivity performance in the pre-investment period. Thus, firms that start foreign activities are ex-ante different from non-investing purely domestic firms.

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File:	fileadmin/Documents/Publikationen/Studien_II/Studien_2009_adapted_file_names/SI05.ResearchReport.CarbonContent.pdf

Abstract: In this study CO2 emissions embodied in Austrian international trade are quantified employing a 66-region input output model of multidirectional trade. We find that Austria’s final demand CO2 responsibilities on a global scale are 38% higher than conventional statistics report (110 Mt-CO2 versus 79 Mt-CO2 in 2004). For each unit of Austrian final demand, currently two thirds of the thus triggered CO2 emissions occur outside Austrian borders. We then develop a 19-region computable general equilibrium model of Austria and its major trading partners and world regions to find that future Austrian climate policy can achieve the EU 20-20 emission reduction targets, but that its carbon trade balance would worsen considerably. Both unilateral EU and internationally coordinated climate policies affect Austrian international trade stronger than its domestic production.