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Paying Moms to Stay Home: Short and Long Run Effects on Parents and Children
VATT Working Papers : 151 (Valtion taloudellinen tutkimuskeskus, 29.11.2022)We study the impacts of a policy designed to reward mothers who stay at home rather than join the labor force when their children are under age three. We use regional and over time variation in child home care allowance ... -
Physician Prices and Competition: Evidence from Acquisitions in the Private Health Care Sector
VATT Working Papers : 130 (Valtion taloudellinen tutkimuskeskus, 30.04.2020)We consider the effects of mergers and acquisitions for private physicians, who compete for patients on price. To estimate the effects, we use nationwide administrative data on private physicians and the organization of ... -
Political Representation and Effects of Municipal Mergers
VATT Working Papers : 98 (Valtion taloudellinen tutkimuskeskus, 18.10.2017)We study the effects of municipal mergers using novel geocoded data on public sector jobs, housing transactions and local politicians’ place of residence. We find that total municipal expenditures evolve in the same way ... -
Primary Effect in Open-List Elections
VATT Working Papers : 79 (Valtion taloudellinen tutkimuskeskus VATT, 07.09.2016)We study how political parties select political leaders. Using regression discontinuity design and data from Finnish local elections, we find that parties use vote ranks to decide upon promotions. Moreover, we show that ... -
Profit shifting of multinational enterprises: evidence from the Nordics
VATT Working Papers : 155 (Valtion taloudellinen tutkimuskeskus, 16.05.2023)This paper studies how Nordic multinational enterprises (MNEs) react to tax incentives generated by international corporate income tax rate differences and shift profit to low tax countries. A firm level panel data set ... -
Public Employees as Politicians: Evidence from Close Elections
VATT Working Papers : 78 (Valtion taloudellinen tutkimuskeskus VATT, 27.09.2016)We analyze the effect of municipal employees' political representation in municipal councils on local public spending. To quantify the effect, we use within-party, as-good-as random variation in close elections in the ... -
Public Procurement versus Laissez-Faire: Evidence from Household Waste Collection
VATT Working Papers : 113 (Valtion taloudellinen tutkimuskeskus, 20.12.2018)We document that switching from laissez-faire production to public procurement in residential waste collection in Finland reduces the number of firms active in the local market, but induces a statistically significant and ... -
RD, investment and structural change in Finland: Is low investment a problem?
VATT Working Papers : 6 (Valtion taloudellinen tutkimuskeskus VATT, 10.06.2009)Low aggregate investment in Finland has been argued to merely reflect structural change to an innovation economy, with high R&D levels adequately compensating for reduced physical investment. This paper briefly reviews the ... -
Reconciling the evidence of Card and Krueger (1994) and Neumark and Wascher (2000)
VATT Working Papers : 24 (Valtion taloudellinen tutkimuskeskus VATT, 29.04.2011)We employ the original Card and Krueger (1994) and Neumark and Wascher (2000) data together with the changes-in-changes (CIC) estimator to re-examine the evidence of the effect of minimum wages on employment. Our study ... -
Regionalization and its effects in Finland – a regional AGE modelling analysis
VATT Working Papers : 45 (VATT Institute for Economic ResearchValtion taloudellinen tutkimuskeskus VATT, 10.04.2013)Regional structural change is currently among the greatest challenges facing the public sector in many EU countries. In countries like Finland, where the public sectors have a large role in providing educational, health ... -
Removing Welfare Traps: Employment Responses in the Finnish Basic Income Experiment
VATT Working Papers : 142 (Valtion taloudellinen tutkimuskeskus, 17.03.2021)This paper provides evidence that replacing minimum unemployment benefits with a basic income of equal size has minor employment effects at best. We examine an experiment in Finland in which 2,000 benefit recipients were ... -
Resource and Environmental Policies for the Mining Industry: What Should Governments Do About the Increasing Social and Environmental Risks?
VATT Working Papers : 137 (Valtion taloudellinen tutkimuskeskus, 29.12.2020)Growing demand for materials required in the construction of renewable technologies and zeroemission infrastructure may signal significant changes for the minerals and metals market. These in turn might exacerbate the ... -
Restaurant VAT cut: Cheaper meal and more service?
VATT Working Papers : 52 (Valtion taloudellinen tutkimuskeskus VATT, 09.10.2013)This paper provides causally plausible estimates of the effects of consumption taxes in a service sector on prices and demand for restaurant services. We utilize a large VAT reform affecting restaurant meals, where the VAT ... -
The role of information in tax compliance: Evidence from a natural field experiment
VATT Working Papers : 48 (Valtion taloudellinen tutkimuskeskus VATT, 16.09.2013)It is challenging to distinguish the role of information in tax compliance from other factors affecting it. This paper utilizes a novel natural field experiment design to study the issue. In the experiment firms reporting ... -
School starting age, maternal age at birth, and child outcomes
VATT Working Papers : 139 (Valtion taloudellinen tutkimuskeskus, 23.02.2021)This paper analyses the effects of maternal school starting age and maternal age-at-birth on children’s short and long-term outcomes using Finnish register data. We exploit a school-starting-age rule for identification. ... -
School tracking and development of cognitive skills
VATT Working Papers : 2 (Valtion taloudellinen tutkimuskeskus VATT, 30.03.2009)The Finnish comprehensive school reform replaced the old two-track school system with a uniform nine-year comprehensive school and significantly reduced the degree of heterogeneity in the Finnish primary and secondary ... -
Screening through Activation? Differential Effects of a Youth Activation Programme
VATT Working Papers : 101 (Valtion taloudellinen tutkimuskeskus, 19.12.2017)We study the dual role of active labour market policies: First, ALMP may perform a screening role by increasing the incentives for job search especially among individuals with good labour market prospects, already prior ... -
Seat competitiveness and redistricting: Evidence from voting on municipal mergers
VATT Working Papers : 38 (Valtion taloudellinen tutkimuskeskus VATT, 24.03.2013)We analyze how (anticipated) changes in the competitiveness of the seats of municipal councilors affect their voting behavior over municipal mergers. The competitiveness of the seats changes because the merger changes the ... -
Self-Selection of Emigrants: Theory and Evidence on Stochastic Dominance in Observable and Unobservable Characteristics
VATT Working Papers : 67 (Valtion taloudellinen tutkimuskeskus VATT, 19.04.2016)We show that the Roy model has more precise predictions about the self-selection of migrants than previously realized. The same conditions that have been shown to result in positive or negative selection in terms of expected ... -
Short-run and long-run food import elasticities with persistent trading habits
VATT Working Papers : 111 (Valtion taloudellinen tutkimuskeskus, 17.12.2018)This paper provides estimates and explores the role of own price import demand (Armington) elasticities between different source countries for five agricultural commodities in a framework that incorporates temporal dimension ...