Employee referrals and the inter-industry wage structure

This paper investigates the role of employee referrals in the labor market.Using an original data set, I find that industries that pay wage premia andhave characteristics associated with high-wage sectors rely mainly on employeereferrals to fill jobs. Moreover, unemployment rates are higher in industries which use employee referrals more extensively. This paper develops an equilibrium matching model which can explain these empirical regularities. Inthis model, the matching process sorts heterogeneous firms and workers into two distinct groups: referrals match "good" jobs to "good" workers, while formalmethods (e.g., newspaper ads and employment agencies) match less-attractive jobs to disadvantaged workers. Thus, well-connected workers who learn quickly aboutjob opportunities use referrals to jump job queues, while those who are less well placed in the labor market search for jobs through formal methods. The split of firms and workers between referrals and formal search is, however, not necessarily efficient. Congestion externalities in referral search imply that unemployment would be closer to the optimal rate if firms and workers 'at themargin' searched formally.

Regional Labor Market Disparities

Regionale Arbeitsmärkte unterscheiden sich erheblich hinsichtlich wesentlicher Kennzahlen wie der Arbeitslosenquote, des Lohnniveaus oder der Beschäftigungsentwicklung. Wegen ihrer Persistenz sind diese Unterschiede von hoher Relevanz für die Politik. Die wirtschaftswissenschaftliche Literatur liefert bereits theoretische Modelle für die Analyse regionaler Arbeitsmärkte. In der Regel sind diese Modelle aber nicht dazu geeignet, regionale Arbeitsmarktunterschiede endogen zu erklären. Das bedeutet, dass sich die Unterschiede regionaler Arbeitsmärkte in der Regel nicht aus den Modellzusammenhängen selbst ergeben, sondern „von außen“ eingebracht werden müssen. Die empirische Literatur liefert Hinweise, dass die Unterschiede zwischen regionalen Arbeitsmärkten auf die Höhe der regionalen Arbeitsnachfrage zurückzuführen sind. Die Arbeitsnachfrage wiederum leitet sich aus den Gütermärkten ab: Es hängt von der Entwicklung der regionalen Gütermärkte ab, wie viele Arbeitskräfte benötigt werden. Daraus folgt, dass die Ursachen für Unterschiede regionaler Arbeitsmärkte in den Unterschieden zwischen den regionalen Gütermärkten zu suchen sind. Letztere werden durch die Literatur zur Neuen Ökonomischen Geographie (NÖG) untersucht. Die Literatur zur NÖG erklärt Unterschiede regionaler Gütermärkte, indem sie zentripetale und zentrifugale Kräfte gegenüberstellt. Zentripetale Kräfte sind solche, welche hin zur Agglomeration ökonomischer Aktivität wirken. Im Zentrum dieser Diskussion steht vor allem das Marktpotenzial: Unternehmen siedeln sich bevorzugt an solchen Standorten an, welche nahe an großen Märkten liegen. Erwerbspersonen wiederum bevorzugen solche Regionen, welche ihnen entsprechende Erwerbsaussichten bieten. Beides zusammen bildet einen sich selbst verstärkenden Prozess, der zur Agglomeration ökonomischer Aktivität führt. Dem stehen jedoch zentrifugale Kräfte gegenüber, welche eine gleichmäßigere Verteilung ökonomischer Aktivität bewirken. Diese entstehen beispielsweise durch immobile Produktionsfaktoren oder Ballungskosten wie etwa Umweltverschmutzung, Staus oder hohe Mietpreise. Sind die zentripetalen Kräfte hinreichend stark, so bilden sich Zentren heraus, in denen sich die ökonomische Aktivität konzentriert, während die Peripherie ausdünnt. In welchem Ausmaß dies geschieht, hängt von dem Verhältnis beider Kräfte ab. Üblicherweise konzentriert sich die Literatur zur NÖG auf Unterschiede zwischen regionalen Gütermärkten und geht von der Annahme perfekter Arbeitsmärkte ohne Arbeitslosigkeit aus. Die Entstehung und Persistenz regionaler Arbeitsmarktunterschiede kann die NÖG daher üblicherweise nicht erklären. An dieser Stelle setzt die Dissertation an. Sie erweitert die NÖG um Friktionen auf dem Arbeitsmarkt, um die Entstehung und Persistenz regionaler Arbeitsmarktunterschiede zu erklären. Sie greift dazu auf eine empirische Regelmäßigkeit zurück: Zahlreiche Studien belegen einen negativen Zusammenhang zwischen Lohn und Arbeitslosigkeit. In Regionen, in denen die Arbeitslosigkeit hoch ist, ist das Lohnniveau gering und umgekehrt. Dieser Zusammenhang wird als Lohnkurve bezeichnet. Auf regionaler Ebene lässt sich die Lohnkurve mithilfe der Effizienzlohntheorie erklären, die als theoretische Grundlage in der Dissertation Anwendung findet. Konzentriert sich nun die ökonomische Aktivität aufgrund der zentripetalen Kräfte in einer Region, so ist in diesem Zentrum die Arbeitsnachfrage höher. Damit befindet sich das Zentrum auf einer günstigen Position der Lohnkurve mit geringer Arbeitslosigkeit und hohem Lohnniveau. Umgekehrt findet sich die Peripherie auf einer ungünstigen Position mit hoher Arbeitslosigkeit und geringem Lohnniveau wieder. Allerdings kann sich die Lohnkurve in Abhängigkeit des Agglomerationsgrades verschieben. Das komplexe Zusammenspiel der endogenen Agglomeration mit den Arbeitsmarktfriktionen kann dann unterschiedliche Muster regionaler Arbeitsmarktdisparitäten hervorrufen. Die Dissertation zeigt auf, wie im Zusammenspiel der NÖG mit Effizienzlöhnen regionale Arbeitsmarktdisparitäten hervorgerufen werden. Es werden theoretische Modelle formuliert, die diese Interaktionen erklären und welche die bestehende Literatur durch spezifische Beiträge erweitern. Darüber hinaus werden die zentralen Argumente der Theorie einem empirischen Test unterworfen. Es kann gezeigt werden, dass das zentrale Argument – der positive Effekt des Marktpotentials auf die Arbeitsnachfrage – relevant ist. Außerdem werden Politikimplikationen abgeleitet und der weitere Forschungsbedarf aufgezeigt.

Regional Blood Flow Distribution and Oxygen Metabolism During Mesenteric Ischemia and Congestion

Background. Acute mesenteric ischemia is a potentially fatal vascular emergency with mortality rates ranging between 60% and 80%. Several studies have extensively examined the hemodynamic and metabolic effects of superior mesenteric artery occlusion. On the other hand, the cardiocirculatory derangement and the tissue damage induced by intestinal outflow obstruction have not been investigated systematically. For these reasons we decided to assess the initial impact of venous mesenteric occlusion on intestinal blood flow distribution, and correlate these findings with other systemic and regional perfusion markers. Methods. Fourteen mongrel dogs were subjected to 45 min of superior mesenteric artery (SMAO) or vein occlusion (SMVO), and observed for 120 min after reperfusion. Systemic hemodynamics were evaluated using Swan-Ganz and arterial catheters. Regional blood flow (ultrasonic flow probes), intestinal O(2)-derived variables, and mesenteric-arterial and tonometric-arterial pCO(2) gradients (D(mv-a)pCO(2) and D(t-a)pCO(2)) were also calculated. Results. SMVO was associated with hypotension and low cardiac output. A significant increase in the regional pCO(2) gradients was also observed in both groups during the ischemic period. After reperfusion, a progressive reduction in D(mv-a)pCO(2) occurred in the SMVO group; however, no improvement in D(t-p)CO(2) was observed. The histopathologic injury scores were 2.7 +/- 0.5 and 4.8 +/- 0.2 for SMAO and SMVO, respectively. Conclusions. SMV occlusion promoted early and significant hemodynamic and metabolic derangement at systemic and regional levels. Additionally, systemic pCO(2) gradient is not a reliable parameter to evaluate the local intestinal oxygenation. Finally, the D(t-a)pCO(2) correlates with histologic changes during intestinal congestion or ischemia. However, minor histologic changes cannot be detected using this methodology. (C) 2010 Elsevier Inc. All rights reserved.

Notes on market failure and the Paretian (Kaldor-Hicks) relevance and irrelevance of unfavourable externalities

The following are notes that have been distributed by me over the last few years to students in Environmental Economics at The University of Queensland. They give particular attention to whether externalities are Pareto or Kaldor-Hicks relevant from a policy point of view. Externalities are Kaldor-Hicks or Pareto irrelevant if no change is possible for which gainers could compensate losers. Both absolute and marginal externalities may be Kaldor-Hicks relevant. Infra-marginal negative externalities are often, but not always, Kaldor-Hicks irrelevant. There are at least two cases where such externalities can be relevant. First, the absolute impact of the negative externality may be so great that the source of the externality should be eliminated. Secondly, if the externality arises from production, its nature may depend on the type of production technique adopted. Although for the technique adopted, an infra-marginal negative externality occurs. That is Paretian irrelevant given that choice of this technique is the only available possibility, alternative techniques may actually be available in practice. Some of these may generate even smaller total external effects and be socially preferable. Both cases are outlined and illustrated in these notes. The analysis reveals the dangers of relying on marginalism for deciding on environmental policy. Total (external) effects are often of great social and economic importance and appropriate social choices cannot be made on the basis of marginalism alone.

A congestion management and transmission price simulator for competitive electricity markets

In a liberalized electricity market, the Transmission System Operator (TSO) plays a crucial role in power system operation. Among many other tasks, TSO detects congestion situations and allocates the payments of electricity transmission. This paper presents a software tool for congestion management and transmission price determination in electricity markets. The congestion management is based on a reformulated Optimal Power Flow (OPF), whose main goal is to obtain a feasible solution for the re-dispatch minimizing the changes in the dispatch proposed by the market operator. The transmission price computation considers the physical impact caused by the market agents in the transmission network. The final tariff includes existing system costs and also costs due to the initial congestion situation and losses costs. The paper includes a case study for the IEEE 30 bus power system.

Echocardiographic parameters associated with pulmonary congestion in Chagas cardiomyopathy

INTRODUCTION: Discrepancy between the intensity of pulmonary congestion and the grade of cardiomegaly seems to be a common finding of Chagas cardiomyopathy, in spite of significant systolic dysfunction of the left ventricle. Its mechanism has not been established. The aim of this study was to investigate pulmonary congestion and to analyze if it correlated with Doppler echocardiographic parameters in patients with Chagas dilated cardiomyopathy. METHODS: Fifty-five patients with positive serology tests for Trypanosoma cruzi and Chagas dilated cardiomyopathy were studied. Chest x-rays, Doppler echocardiogram and plasmatic brain natriuretic peptide levels were obtained in all patients. The degree of pulmonary venous vessels changes on chest x-ray was graded using a pulmonary congestion score, and then compared to Doppler echocardiographic parameters. RESULTS: Mean age was 48.5 ± 11.2 years and 29% were women. The majority (95%) of patients were in NYHA functional class I and II. Mild pulmonary congestion by chest x-ray was found in 80% of the patients. In a multivariate analysis, left ventricular ejection fraction, right ventricular TEI index and the color M-mode velocity correlated with the degree of pulmonary congestion. CONCLUSIONS: Pulmonary venous changes on chest x-rays are frequent, but usually mild in patients with Chagas dilated cardiomyopathy. The degree of pulmonary congestion correlates with Doppler echocardiographic left and right ventricular dysfunction and with color M-mode velocity.

Echocardiographic parameters associated with pulmonary congestion in outpatients with Chagas' cardiomyopathy and non-chagasic cardiomyopathy

INTRODUCTION: Despite significant left ventricular (LV) systolic dysfunction and cardiomegaly, pulmonary congestion does not seem to be a major finding in Chagas' cardiomyopathy (CC). This study sought to identify echocardiographic parameters associated with pulmonary congestion in CC and in dilated cardiomyopathy of other etiologies, such as non-CC (NCC), and to compare pulmonary venous hypertension between the two entities. METHODS: A total of 130 consecutive patients with CC and NCC, with similar echocardiographic characteristics, were assessed using Doppler echocardiography and chest radiography. Pulmonary venous vessel abnormalities were graded using a previously described pulmonary congestion score, and this score was compared with Doppler echocardiographic parameters. RESULTS: NCC patients were older than CC patients (62.4 ± 13.5 × 47.8 ± 11.2, p = 0.00), and there were more male subjects in the CC group (66.2% × 58.5%, p = 0.4). Pulmonary venous hypertension was present in 41 patients in the CC group (63.1%) and in 63 (96.9%) in the NCC group (p = 0.0), the mean lung congestion score being 3.2 ± 2.3 and 5.9 ± 2.6 (p = 0.0), respectively. On linear regression multivariate analysis, the E/e' ratio (β = 0.13; p = 0.0), LV diastolic diameter (β = 0.06; p = 0.06), left atrial diameter (β = 0.51; p = 0.08), and right ventricular (RV) end-diastolic diameter (β = 0.02; p = 0.48) were the variables that correlated with pulmonary congestion in both groups. CONCLUSIONS: Pulmonary congestion was less significant in patients with CC. The degree of LV of systolic and diastolic dysfunction and the RV diameter correlated with pulmonary congestion in both groups. The E/e' ratio was the hallmark of pulmonary congestion in both groups.

A systematic approach for externalities in occupational safety through the use of the delphi methodology

Ramos, D., Arezes, P. M., & Afonso, P. (2015). A systematic approach for externalities in occupational safety through the use of the delphi methodology. Paper presented at the Occupational Safety and Hygiene III - Selected Extended and Revised Contributions from the International Symposium on Safety and Hygiene.

Efficient bidding with externalities

We implement a family of efficient proposals to share benefits generated in environments with externalities. These proposals extend the Shapley value to games with externalities and are parametrized through the method by which the externalities are averaged. We construct two slightly different mechanisms: one for environments with negative externalities and the other for positive externalities. We show that the subgame perfect equilibrium outcomes of these mechanisms coincide with the sharing proposals.

Sharing the surplus: a just and efficient proposal for environments with externalities

Economic activities, both on the macro and micro level, often entail wide-spread externalities. This in turn leads to disputes regarding the compensation levels to the various parties affected. We propose a general, yet simple, method of deciding upon the distribution of the gains (costs) of cooperation in the presence of externalities. This method is shown to be the unique one satisfying several desirable properties. Furthermore, we illustrate the use of this method to resolve the sharing of benefits generated by international climate control agreements.

Consumption externalities, habit formation, and equilibrium efficiency

We analyze the welfare properties of the competitive equilibrium in a capital accumulation model where individual preferences are subjected to both habit formation and consumption spillovers. We also discuss how consumption externalities and habits interact to generate an inefficient dynamic equilibrium. Finally, we characterize optimal tax policies aimed to restore efficient decentralized paths.

Income taxation with habit formation and consumption externalities

We analyze the dynamic behavior and the welfare properties of the equilibrium path of a growth model where both habits and consumption externalities affect the utility of consumers. We discuss the effects of flat rate income taxes and characterize the optimal income taxation policy. We show that, when consumption externalities and habit adjusted consumption are not perfect substitutes, a counter-cyclical income tax rate allows the competitive equilibrium to replicate the efficient path. Our analysis highlights the crucial role played by complementarities between externalities and habits in order to generate an inefficient dynamic equilibrium.

Dividends and weighted values in games with externalities

We consider cooperative environments with externalities (games in partition function form) and provide a recursive definition of dividends for each coalition and any partition of the players it belongs to. We show that with this definition and equal sharing of these dividends the averaged sum of dividends for each player, over all the coalitions that contain the player, coincides with the corresponding average value of the player. We then construct weighted Shapley values by departing from equal division of dividends and finally, for each such value, provide a bidding mechanism implementing it.