This paper investigates the dynamics of the Euro/US dollar exchange rate before, during and after the global financial crisis using intra‐day data in a sample covering the period 2003–2011. The paper extends over the conventional empirical framework and specifies an EGARCH (3,1) model to account for heterogeneity in three temporal trading zones and for asymmetric volatility to news. The findings indicate the presence and evolution of differences in Euro/US exchange rate dynamics across American, European and Asian trading zones before and during the financial crisis. As a result of the crisis, traders in the three areas have modified their reactions to scheduled news, unscheduled surprises and content of policies. Developing a better understanding of how traders' behaviour has adjusted since the onset of the crisis is an important issue given the global significance of this exchange rate and the considerable volatility experienced over the sample period.
PurposeThe purpose of the paper is to advocates the use of gendered economic policies to stimulate a post-COVID-19 recovery. It alerts on the risk of ignoring the female dimension of the current crisis and of resorting again to austerity programs that, like the ones enacted after the 2008 crisis, would hit women and mothers disproportionally harder than other groups.Design/methodology/approachThe authors use data from the British Household Panel Survey on female participation and account for gendered constraints and enablers missed by mainstream economics. Using a sequential empirical approach, the authors simulate various welfare policy scenarios that address factors, such as childcare costs, personal and social nudges, that could help women back into the labor market in the aftermath of a crisis.Findings The authors found that incentive-type interventions, such as subsidies, promote female labor market participation more effectively than punishment-austerity type interventions, such as benefits' cuts. Policies oriented to alleviate childcare constraints can be sustainable and effective in encouraging women back to work. Considering factors wider than the standard economic variables when designing labor market policies may provide fruitful returns.Originality/valueThe sequential methodology enables to estimate current and counterfactual incomes for each female in the sample and to calculate their prospective financial gains and losses in changing their labor market status quo, from not employed into employed or vice-versa. Welfare policies affect these prospective gains and losses and, by interacting with other factors, such as education, number and age of children and social capital, prompt changes in women's labor market choices and decision.
Purpose-The purpose of this paper is to adopt the principles of labour economics, behavioural economics and social influence to identify constraints and enablers that influence people's choices in relation to the labour market decisions. Design/methodology/approach-a sequential empirical methodology has been adopted, where data from the British Household Panel Survey (2009) has been collected to explain various statuses of labour market activity, with a focus on workless-ness, across the categories of unemployment, being a student, disability, retirement and being a carer-differentiating for gender and age. The paper develops and substantiates the hypothesis theoretically and gives some indications using a multidisciplinary approach. Findings-we found that labour market opportunities, choices and achievements are affected by the interrelations and interactions of an individual's demographic and psychological characteristics (such as age, gender, heuristics, perceptions, beliefs, attitude's goals and ambitions) along with external factors (such as geographical, socio-cultural and economic conditions). Originality/value-this study makes a unique contribution to labour economics as we abandon the traditional welfare approach and use a more general framework of capabilities and refined functioning to interpret how different types of constraints-ranging from socioeconomic conditions and environmental background to specific features of individual processes of choices and decision making-affect preferences and functioning's. The study also identifies how "under-employment" complements the use of BE/social influence in explaining labour market inactivity, and highlights how the findings of this study have important implications for policy. 1. Extending the Homo Economicus: horizontal and vertical dimensions Working and non-working decisions are the resultant of many interdependent forces at work. Sociality is one of those forces which interfaces with our sense of identity, affecting the emotional costs and benefits of nonemployment and employment beyond the factual monetary gains and losses.
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