In this paper, we examine the determinants of educational selectivity in immigration using immigrant stock data for 70 source countries and 21 OECD destination countries, as observed in the year 2000/2001. We develop a variant of the Roy model to estimate the determinants of educational selectivity. Two key findings emerge. First, the effect of the skill premium, which is at the core of the Roy model, can be observed only after we take into account the poverty constraints operating in the source countries. Second, cultural similarities, colonial legacies, and physical distance are often more important determinants of educational selectivity than wage incentives or selective immigration policy.
This paper derives new results on the welfare effects of employment protection. Using data from 17 OECD countries, we show that there exists an inverse U-shape relationship between employment protection and economic growth. Using a simple theoretical model with non-contractible specific investments, we show that over some range increasing employment protection does indeed raise welfare. We also show that the optimal level of employment protection depends on other labour market features, such as the bargaining power of workers and the existence of wage rigidities like the minimum wage. Copyright (c) The London School of Economics and Political Science 2007.
Health nudge interventions to steer people into healthier lifestyles are increasingly applied by governments worldwide, and it is natural to look to such approaches to improve health by altering what people choose to eat. However, to produce policy recommendations that are likely to be effective, we need to be able to make valid predictions about the consequences of proposed interventions, and for this, we need a better understanding of the determinants of food choice. These determinants include dietary components (e.g. highly palatable foods and alcohol), but also diverse cultural and social pressures, cognitive-affective factors (perceived stress, health attitude, anxiety and depression), and familial, genetic and epigenetic influences on personality characteristics. In addition, our choices are influenced by an array of physiological mechanisms, including signals to the brain from the gastrointestinal tract and adipose tissue, which affect not only our hunger and satiety but also our motivation to eat particular nutrients, and the reward we experience from eating. Thus, to develop the evidence base necessary for effective policies, we need to build bridges across different levels of knowledge and understanding. This requires experimental models that can fill in the gaps in our understanding that are needed to inform policy, translational models that connect mechanistic understanding from laboratory studies to the real life human condition, and formal models that encapsulate scientific knowledge from diverse disciplines, and which embed understanding in a way that enables policy-relevant predictions to be made. Here we review recent developments in these areas.
This paper uses a unique set of new indicators enabling us to test the effects of cultural and institutional barriers on migration between OECD countries. Using data on migration flows between 22 OECD countries over the period 1990-2003, we find strong evidence for the negative effect of cultural differences on international migration flows. Cultural barriers do a much better job in explaining the pattern of migration flows between developed countries than traditional economic variables such as income and unemployment differentials.
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