Comparative regional perspectives: the Bologna process and higher education attainment. Jean Monnet/Robert Schumann Paper Series Vol 13 No. 11, August 2013

Since 1999, countries have voluntarily chosen to reform their higher education systems to join the European Higher Education Area. This paper compares Bologna Process implementation across four regions within the European Union. While there are 47 countries participating in the Bologna Process, this paper uses statistical analysis to consider 25 of the 28 EU Member States. The time period of analysis is 2000-2011, prior to Croatia’s accession to the EU on 1 July 2013. Across Europe there are inter-regional differences in how the Bologna Process has been implemented and in the political economy contexts that influence higher education reform for policy convergence. There are three explanatory variables in the political economy context: 1. competitive economic pressures and globalization 2. domestic politics at the national level 3. leadership from the supranational European Union that socially constructs regional norms Tertiary education attainment is the dependent variable of interest in this research. The objective of 40%, for 30-34 year olds, is Europe 2020 benchmark target. There are additional higher education reform criteria encompassed in the Bologna Process. These criteria concern Credit and Degree Structure, Quality Assurance, and Recognition of academic degrees among countries in the EHEA. This tertiary education attainment variable, which is of interest in this paper, does not capture the entire implementation process. Nevertheless, it is a measure of one important indicator of success in providing higher education access to populations within the context of democratic governance. This research finds that statistically GDP Per Capita is the most significant variable in relationship to tertiary education attainment across four regional areas in the European Union.

Productivity and Credit Constraints: Firm-Level Evidence from Propensity Score Matching. Factor Markets Working Paper No. 3, September 2011

Drawing on a unique, farm-level panel dataset with 37,409 observations and employing a matching estimator, this paper analyses how farm access to credit affects farm input allocation and farm efficiency in the Central and Eastern European transition countries. We find that farms are asymmetrically credit constrained with respect to inputs. Farm use of variable inputs and capital investment increases up to 2.3% and 29%, respectively, per €1,000 of additional credit. Our estimates also suggest that farm access to credit increases total factor productivity up to 1.9% per €1,000 of additional credit, indicating that an improvement in access to credit results in an adjustment in the relative input intensities on farms. This finding is further supported by a negative effect of better access to credit on labour, suggesting that these two are substitutes. Interestingly, farms are found not to be credit constrained with respect to land.

Framing Banking Union in the Euro Area: Some empirical evidence. CEPS Working Document No. 389, 3 February 2014

Evidence shows that financial integration in the euro area is retrenching at a quicker pace than outside the union. Home bias persists: Governments compete on funding costs by supporting ‘their’ banks with massive state aids, which distorts the playing field and feeds the risk-aversion loop. This situation intensifies friction in credit markets, thus hampering the transmission of monetary policies and, potentially, economic growth. This paper discusses the theoretical foundations of a banking union in a common currency area and the legal and economic aspects of EU responses. As a result, two remedies are proposed to deal with moral hazard in a common currency area: a common (unlimited) financial backstop to a privately funded recapitalisation/resolution fund and a blanket prohibition on state aids.

Determinants to Leave Agriculture and Change Occupational Sector: Evidence from an Enlarged EU. Factor Markets Working Document No. 46, May 2013

The objective of this paper is to explore the determinants to leave agriculture and change occupational sector. We adopt a 3-step multivariate probit where we control for selection bias at two stages in the decisions to work and, at a later stage, exit agriculture. The analysis is based on the European Union Labour Force Survey data expanded with additional regional indicators. The main results suggest that younger individuals are more likely to leave farming activities, although the largest outflows of agricultural labour are mainly associated with the retirement of people. Self-employed and family workers are generally less likely to leave agriculture and those with low levels of educations are found to be significantly constrained in entering the non-farm economy. Moreover, labour market conditions at the regional level do matter for switching occupational sector. Differences in the results among the selected new member states and the EU-15 can be explained by the diverse production structures, suggesting different capacities to release and absorb labour.