DETERMINANTS OF EMPLOYEES' MOVEMENT BETWEEN LABOUR MARKET SEGMENTS

The paper studies upgrading patterns between secondary and primary segments in Polish labour market, with reference to the Segmented Labour Market theory. The type of contact (permanent vs. fixed-term) and wage distribution were used within one framework to define these labour segments. The parameters of binary choice model, based on Labour Force Survey microdata, were estimated to calculate the probabilities of shift from secondary to primary segment, and to identify supply and demand-side determinants of this upgrading. The results are, in general, in line with the trap hypothesis, pointing out to limited chances of upward shift from secondary to primary labour segment. However, this upward mobility has increased in recent years, being a result of changes in real (measured by lowering unemployment rate) and institutional sphere of the Polish labour market. Individual’s age, education attainment, propensity to invest in human capital, as well as the size of an enterprise appeared to be the most important divers of inter-segments upgrading. Moreover, regional as well as sectoral differences in probability of upgrading were identified – this probability was higher in the case of workers living in regions with large agglomerations and close proximity to the German labour market.

An Experimental Economic Study of Loss Aversion in Stock Trading Decisions

The disposition effect is a form of behavioral bias that tends to result in investors holding on to their losing stocks for too long and selling winning stocks too soon. It can be explained by the behavioral economics theory of loss aversion. Even though many have studied this kind of behavioral bias in a variety of different countries, none of them have investigated the disposition effect in the case of Thailand. Therefore, the main objective of our study is to test the disposition effect among Thais by applying the experimental economic approaches of Weber & Camerer (1998) and Odean (1998) whilst also including the findings from questionnaires and interviews. We set up a simulation stock trading market to test the disposition effect of participants regardless of whether they had stock trading experienced or not. Subjects were required to trade among six stocks in 14 trading periods. We also added three more periods to test how different types of news impacted the subjects’ trading decisions. In addition, we analyzed socioeconomic factors that affect disposition effect behavior by using an econometric binary choice model. We found that this experiment can exhibit the disposition effect of subjects in terms of overall and individual measurement. In normal stock trading situations, we found that over 70% of subjects showed clear signs of the disposition effect, which seemed to decrease after they received fictional news.

Sambalpuri Handloom Weavers’ Livelihood: An Analysis of Western Odisha Clusters, India

The study aims to examine the livelihood of Sambalpuri handloom weavers of Western Odisha, India. By using the primary field survey data and analysing both the qualitative and quantitative data, it presents the socio-economic conditions of the weavers. A binary choice model is used to analyse the livelihood of weavers. The analysis shows that although the price of the product is quite high, almost all the weavers are not satisfied with the amount of the emoluments that they receive. The middleman plays a critical role in marketing. But the actual benefits from marketing the Sambalpuri handloom products are going to middleman rather than weavers. It recommends making necessary policies both by the central as well as the state governments to rescue these handloom weavers.

Identifiability of causal effects with multiple causes and a binary outcome

Unobserved confounding presents a major threat to causal inference from observational studies. Recently, several authors suggest that this problem may be overcome in a shared confounding setting where multiple treatments are independent given a common latent confounder. It has been shown that under a linear Gaussian model for the treatments, the causal effect is not identifiable without parametric assumptions on the outcome model. In this note, we show that the causal effect is indeed identifiable if we assume a general binary choice model for the outcome with a non-probit link. Our identification approach is based on the incongruence between Gaussianity of the treatments and latent confounder, andnon-Gaussianity of a latent outcome variable. We further develop a two-step likelihood-based estimation procedure.

A binary choice model with partial observability for panel data

We consider a panel model with a binary response variable that is a product of two unobservable factors, each determined by a separate binary choice equation. One of these factors is assumed to be time-invariant and may be interpreted as a latent class indicator. A simulation study shows that maximum likelihood estimates from even the shortest panel are much more reliable than those obtained from a cross-section. As an illustrative example, the model is applied to Russian Longitudinal Monitoring Survey data to estimate a proportion of the non-employed population who are participating in job search.

Determinantes de la pertenencia a entidades deportivas

The main motivation for this study lies in the importance sports have in our nowadays society and, more specifically, in the role sport organizations play as merging factor between sports and social relations. The main objective of this study is the analysis of the variables that have an effect on the decision of an individual to become a member of a given sport club. The proposed methodology of using a heteroskedastic binary choice model, and its application to a data set obtained from the survey of Spanish sport habits collected in the year 2005, allows us to be able to obtain a detailed analysis of the effect the different variables set have on the probability to become a member of a sport club. Results show that the demand of a sport club membership is closely related to individual characteristics such as gender, level of education, physical fitness and if the individual is an athlete or not.

Size and survival of the hospitality industry: The case of Spain

The aim of this study is to analyse the determinants of survival of the hospitality industry. The study pays particular attention to the size of the enterprises since the majority of Spanish hospitality enterprises are microenterprises. Two approaches are considered. The first approach uses a binary choice model to analyse the determinants of survival probability as well as the Blinder–Oaxaca decomposition, proposed by Yun (2004), to quantify the difference between enterprises according to their size and what proportion of this difference is due to observed factors or unobserved factors. The second approach is a survival analysis, carried out through the Cox proportional hazard model, which identifies the determinants of the duration of business activity of a hospitality enterprise. The empirical results show that enterprises without employees encounter less favourable conditions for survival than enterprises with employees and the risk of not surviving decreases as the size of the enterprise increases.

Contingency factors and entrepreneurship: influence in business activity

Purpose The purpose of this paper is to analyse the determinants of the survival of Spanish companies. Design/methodology/approach Two approaches are used and they are complementary. The first approach analyses the determinants of survival probability. For this purpose, a binary choice model is built and estimated using a sample of companies from the main economic sectors taken from the SABI database. Likewise, the Blinder–Oaxaca decomposition is applied to quantify the difference between companies with employees and without employees and the proportion of this difference that owes to observed factors or unobserved factors. Finally, the second approach is a survival analysis carried out through the Cox proportional hazard model that identifies the determinants of the duration of business activity. Findings The results of the empirical analysis show that companies without employees present less favourable conditions for survival at all stages of their evolution than companies with employees. Originality/value The contribution of this study to the empirical literature consists in analysing the difference between companies with and without employees. Due to the structure of Spanish companies, this aspect and the determinants of such difference are essential for policymakers to increase the survival for companies.

Misclassification in Binary Choice Models with Sample Selection

Most empirical work in the social sciences is based on observational data that are often both incomplete, and therefore unrepresentative of the population of interest, and affected by measurement errors. These problems are very well known in the literature and ad hoc procedures for parametric modeling have been proposed and developed for some time, in order to correct estimate’s bias and obtain consistent estimators. However, to our best knowledge, the aforementioned problems have not yet been jointly considered. We try to overcome this by proposing a parametric approach for the estimation of the probabilities of misclassification of a binary response variable by incorporating them in the likelihood of a binary choice model with sample selection.