Disentangling water usage in the European Union: A decomposition analysis

The Water Framework Directive (WFD) defines common objectives for water resources throughout the European Union (EU). Given this general approach to water preservation and water policy, the objective of this paper is to analyse whether common patterns of water consumption exist within Europe. In particular, our study uses two methods to reveal the reasons behind sectoral water use in all EU countries. The first method is based on an accounting indicator that calculates the water intensity of an economy as the sum of sectoral water intensities. The second method is a subsystem input‐output model that divides total water use into different income channels within the production system. The application uses data for the years 2005 and 2009 on water consumption in the production system of the 27 countries of the EU. From our analysis it emerges that EU countries are characterized by very different patterns of water consumption. In particular water consumption by the agriculture sector is extremely high in Central/Eastern Europe, relative to the rest of Europe. In most countries, the water used by the fuel, power and water sector is consumed to satisfy domestic final demand. However, our analysis shows that for some countries exports from this sector are an important driver of water consumption. Focusing on the agricultural sector, the decomposition analysis suggests that water usage in Mediterranean countries is mainly driven by final demand for, and exports of, agricultural products. In Central/Eastern Europe domestic final demand is the main driver of water consumption, but in this region the proportion of water use driven by demand for exports is increasing over time. Given these heterogeneous water consumption patterns, our analysis suggests that Mediterranean and Central/Eastern European countries should adopt specific water policies in order to achieve efficient levels of water consumption in the European Union. JEL codes: N5; C67 Keywords: Water use, Subsystem input–output model; Water intensity, European Union.

Decomposition of differences in PISA results in middle income countries

Programme for International Student Assessment

Decomposition of Ruppia cirrhosa (Petagna) Grande in the sediment of a coastal lagoon

The decomposition process of Ruppia cirrhosa was studied in a Mediterranean coastal lagoon in the Delta of the River Ebro (NE Spain). Leaves and shoots of Ruppia were enclosed in 1 mm-mesh and 100 pm-mesh litter bags to ascertain the effect of detritivores, macroinvertebrates, and bacteria and fungi, respectively. Changes in biomass and carbon, and, nitrogen and phosphorus concentrations in the detritus were studied at the sediment-water interface and in the sediment. Significant differences in biomass decay were observed between the two bag types. Significant differences in decomposition were observed between the two experimental conditions studied using 100 pm-mesh bags. These differences were not significant when using the 1 mm-mesh bags. The carbon content in the detritus remained constant during the decomposition process. The percentage of nitrogen increased progressively from an initial 2.4 % to 3 %. The percentage of phosphorus decreased rapidly during the first two days of decomposition from an initial 0.26 % to 0.17 %. This loss is greater in the sediment than in the water column or at the sediment-water interface. From these results we deduce that the activity of microorganisms seems to be more important in the sediment than in the water-sediment interface, and that grazing by macroinvertebrates has less importance in the sediment than in the water column.

Growth Models with Exogenous Saving Rates, Unemployment and Wage Inertia

[cat] El propòsit d'aquest article és introduir una mercat de treball no competitiu i atur en el model de creixement amb taxes d'estalvi exògenes que es pot trobar en els llibres de text de creixement (Sala‐i‐Martín, 2000; Barro and Sala‐i‐Martín, 2003; Romer, 2006). Primer, derivem un marc general amb una funció de producció neoclàssica per analitzar la relació entre creixement i ocupació. Utilitzem aquest marc per estudiar les dinàmiques conjuntes del creixement i l'ocupació sota diferents regles de fixació salarial.

Growth Models with Exogenous Saving Rates, Unemployment and Wage Inertia

[cat] El propòsit d'aquest article és introduir una mercat de treball no competitiu i atur en el model de creixement amb taxes d'estalvi exògenes que es pot trobar en els llibres de text de creixement (Sala‐i‐Martín, 2000; Barro and Sala‐i‐Martín, 2003; Romer, 2006). Primer, derivem un marc general amb una funció de producció neoclàssica per analitzar la relació entre creixement i ocupació. Utilitzem aquest marc per estudiar les dinàmiques conjuntes del creixement i l'ocupació sota diferents regles de fixació salarial.

Environmental Structural Decomposition Analysis of Italian Emissions, 1995-2005

[spa] El estudio analiza la evolución de los gases de efecto invernadero (GEI) y las emisiones de acidificación para Italia durante el periodo 1995-2005. Los datos muestran que mientras las emisiones que contribuyen a la acidificación han disminuido constantemente, las emisiones de GEI han aumentado debido al aumento de dióxido de carbono. El objetivo de este estudio es poner de relieve cómo diferentes factores económicos, en particular el crecimiento económico, el desarrollo de una tecnología menos contaminante y la estructura del consumo, han impulsado la evolución de las emisiones. La metodología propuesta es un análisis de descomposición estructural (ADE), método que permite descomponer los cambios de la variable de interés entre las diferentes fuerzas y revelar la importancia de cada factor. Por otra parte, este estudio considera la importancia del comercio internacional e intenta incluir el “problema de la responsabilidad”. Es decir, a través de las relaciones comerciales internacionales, un país podría estar exportando procesos de producción contaminantes sin una reducción real de la contaminación implícita en su patrón de consumo. Con este fin, siguiendo primero un enfoque basado en la “responsabilidad del productor”, el ADE se aplica a las emisiones causadas por la producción nacional. Sucesivamente, el análisis se mueve hacia un enfoque basado en la “responsabilidad del consumidor" y la descomposición se aplica a las emisiones relacionadas con la producción nacional o la producción extranjera que satisface la demanda interna. De esta manera, el ejercicio permite una primera comprobación de la importancia del comercio internacional y pone de relieve algunos resultados a nivel global y a nivel sectorial.

Environmental Structural Decomposition Analysis of Italian Emissions, 1995-2005

[spa] El estudio analiza la evolución de los gases de efecto invernadero (GEI) y las emisiones de acidificación para Italia durante el periodo 1995-2005. Los datos muestran que mientras las emisiones que contribuyen a la acidificación han disminuido constantemente, las emisiones de GEI han aumentado debido al aumento de dióxido de carbono. El objetivo de este estudio es poner de relieve cómo diferentes factores económicos, en particular el crecimiento económico, el desarrollo de una tecnología menos contaminante y la estructura del consumo, han impulsado la evolución de las emisiones. La metodología propuesta es un análisis de descomposición estructural (ADE), método que permite descomponer los cambios de la variable de interés entre las diferentes fuerzas y revelar la importancia de cada factor. Por otra parte, este estudio considera la importancia del comercio internacional e intenta incluir el “problema de la responsabilidad”. Es decir, a través de las relaciones comerciales internacionales, un país podría estar exportando procesos de producción contaminantes sin una reducción real de la contaminación implícita en su patrón de consumo. Con este fin, siguiendo primero un enfoque basado en la “responsabilidad del productor”, el ADE se aplica a las emisiones causadas por la producción nacional. Sucesivamente, el análisis se mueve hacia un enfoque basado en la “responsabilidad del consumidor" y la descomposición se aplica a las emisiones relacionadas con la producción nacional o la producción extranjera que satisface la demanda interna. De esta manera, el ejercicio permite una primera comprobación de la importancia del comercio internacional y pone de relieve algunos resultados a nivel global y a nivel sectorial.

Growth, unemployment and wage inertia

We introduce wage setting via efficiency wages in the neoclassical one-sector growth model to study the growth effects of wage inertia. We compare the dynamic equilibrium of an economy with wage inertia with the equilibrium of an economy without it. We show that wage inertia affects the long run employment rate and that the transitional dynamics of the main economic variables will be different because wages are a state variable when wage inertia is introduced. In particular, we show that the model with wage inertia can explain some growth patterns that cannot be explained when wages are flexible. We also study the growth effects of permanent technological and fiscal policy shocks in these two economies.

Wage inequality and economic growth in Mexican regions

Only a few studies have analysed the relationship between intraregional inequality and growth, although several studies have measured inequality at the regional level. The objective of this paper is to analyse the relationship between income (wage) inequality and economic growth in different regions of Mexico. We also try to identify factors that explain the variation of intra-regional inequality across Mexican regions and over time. Using macroeconomic databases and publicly available microdata, we apply techniques used in the fields of statistics and econometrics to obtain robust evidence on the relationship between growth and inequality. Our aim is to provide policy recommendations to support the design and implementation of growth-promoting measures thatavoid the exclusion of certain social groups. This paper provides reasons to use a spatial approach and an analysis of particular regions to avoid «one size fits all» policy recommendations.

Décision de baisser les salaires ou non: Le rôle de l'empathie face à une recommandation d'un supérieur hiérarchique (The role of Empathy in wage cut decisions).

En entreprise, les supérieurs hiérarchiques ont une influence non négligeable sur la prise de décision de leurs subordonnés. Ces derniers tendent à se conformer à l'avis de leur supérieur pour prendre leurs décisions. Toutefois, cette conformité des subordonnés à l'avis de leur supérieur peut devenir un problème lorsque l'avis reçu est questionnable d'un point de vue éthique. Les études antérieures menées à ce sujet ont démontré que le contenu n'a pas d'impact, c'est-à-dire que du moment qu'un avis est donné par un supérieur hiérarchique, les subordonnés tendent à se conformer à cet avis quelque soit son contenu. Dans la présente expérience, nous nous sommes intéressés à ce phénomène de conformité dans une prise de décision ayant des conséquences sur des personnes. En particulier, nous avons étudié le rôle de l'empathie, définit comme l'habilité de ressentir les émotions des autres ou de se mettre à leur place. Notre première hypothèse concerne l'effet principal de l'avis du supérieur : les participants tiennent compte de l'avis de leur supérieur dans leur prise de décision. Notre seconde hypothèse concerne le rôle modérateur de l'empathie: les participants haut en empathie sont moins sensibles à l'avis de leur supérieur que les participants bas en empathie étant donné qu'ils anticipent les conséquences de leur décision vis-à-vis des personnes concernées. Cent-douze étudiants ont participé à un exercice de mise en situation. Dans la peau d'un chef de Département d'une entreprise, ils devaient entre autres réfléchir au problème du niveau des salaires du personnel peu qualifié et en particulier au fait que cette catégorie de salariés était surpayée par rapport à ce qui se pratiquait sur le marché du travail. Cette expérience était composée de deux conditions, où l'avis du supérieur était manipulé. Dans la condition 1, l'avis du supérieur était de baisser les salaires, alors que dans la condition 2 l'avis était de garder les salaires constants. Les résultats ont confirmé nos hypothèses. Les participants recevant l'avis de leur supérieur de baisser les salaires ont effectivement pris la décision de baisser les salaires. Il a aussi été démontré que le niveau d'empathie modère cette relation. Les participants haut en empathie ont eu tendance à ne pas suivre l'avis donné contrairement aux participants bas en empathie. Cela démontre ainsi l'influence que peut avoir le contexte sur les individus et leur prise de décision mais aussi que les caractéristiques personnelles ont une influence non négligeable.

Overeducation, skills and wage penalty: Evidence for Spain using PIAAC data

The literature on educational mismatches finds that overeducated workers suffer a wage penalty compared with properly educated workers with the same level of education. Recent literature also suggests that individuals’ skill heterogeneity could explain wage differences between overeducated and properly matched workers. The hypothesis is that overeducated workers earn less due to their lower competences and skills in relative terms. However, that hypothesis has been rarely tested due to data limitations on individuals’ skills. The aim of this paper is to test the individuals’ skill heterogeneity theory in Spain using microdata from PIAAC, because it is one of the developed countries supporting the highest overeducation rates and where its adult population holds the lowest level of skills among a set of developed countries. Our hypothesis is that the wage penalty of overeducation in Spain is explained by the lower skill level of overeducated workers. The obtained evidence confirms this hypothesis but only to a certain extent as skills only explain partially the wage penalty of overeducation.

Is the wage curve formal or informal? Evidence for Colombia

Using microdata from the 2002-2006 Colombian Continuous Household Survey, we find an elasticity of individual wages to local unemployment rates of -0.07. However, the elasticity for informal workers is significantly higher, a result which is consistent with efficiency wage theoretical models and relevant for regional labour markets analysis in developing countries.

Labor Market Signaling and Self-Confidence: Wage Compression and the Gender Pay Gap

I extend Spence's signaling model by assuming that some workers are overconfident-they underestimate their marginal cost of acquiring education-and some are underconfident. Firms cannot observe workers' productive abilities and beliefs but know the fractions of high-ability, overconfident, and underconfident workers. I find that biased beliefs lower the wage spread and compress the wages of unbiased workers. I show that gender differences in self-confidence can contribute to the gender pay gap. If education raises productivity, men are overconfident, and women underconfident, then women will, on average, earn less than men. Finally, I show that biased beliefs can improve welfare.