Multinational enterprises, location choice, multinomial choice, labor demand, translog cost function,

This paper complements previous studies on the effects of health on wages by addressing the problems of unobserved heterogeneity, sample selection, and endogeneity in one comprehensive framework. Using data from the German Socio-Economic Panel (GSOEP) we find the health variable to suffer from measurement error and a number of tests provide evidence that selection corrections are necessary. Good health leads to higher wages for men, while there appears to be no significant effect for women. Contingent on the method of estimation, healthy males are estimated to earn between 1.3% and 7.8% more than those in poor health.

We provide first evidence that a soft commitment device enhances progress in education and, more generally, improves the completion of complex tasks—such as passing exams. In our field experiment, students can sign a nonbinding agreement and commit to staying on track for graduation. We find that those who were offered the soft commitment device are more likely to sign up for, take part in, and pass exams. A pure reminder treatment does not change behavior, which suggests that the effects are not driven by increased salience. We also show that procrastinators benefit most from the commitment device. (JEL C93, D12, D91, I23)

Abstract:A number of recent studies nd evidence for the existence of a persistent performance gap between multinational enterprises (MNE) and their domestic competitors. Therefore, the question arises whether successful rms become MNEs or whether going abroad improves home market performance. This paper investigates to what extent MNEs have superior performance characteristics, both prior to and after they have switched from national to multinational activities. In the rst case results are quite clear: Future multinationals outperform domestic rms. Since self-selection occurs, an endogenous treatment approach is necessary for comparing ex-post performance of rms. Using probit estimates of the decision to become a MNE, Heckman's (1978) treatment model is applied to account for potential endogeneity issues. The results suggest that after switching, both productivity and wage growth are higher for newly founded MNEs than for national rms. Employment growth is superior before switching but does not exhibit signi cantly higher ex-post growth rates. Moreover, capital intensities at multinationals evolve towards the use of capital. Keywords:Multinational enterprises; productivity; endogenous treatment JEL-Classi cation:F10, F21, F23, D24 Non Technical SummaryThis paper investigates to what extent a regime change from national to multinational activities (switching) affects home market performance of parent rms relative to purely national rms in Germany. The analysis is conducted both prior to and after rms have gone multinational. In order to assess a broad range of rm attributes, I have constructed ve different performance measures: 1) rm size; 2) total factor productivity (TFP); 3) labour productivity; 4) average wage per rm; 5) capital intensities. Since multinationals do not arise randomly -only good rms accept the risk to invest abroad -Heckman's (1978) treatment model is used to account for potential endogeneity issues in the ex-post analysis.Theoretical predictions are clear cut if ex-ante (before switching) performance differences between switchers and nationals are considered. When starting up or acquiring foreign af liates, rms need to overcome legal, cultural, and social barriers.Only good rms are able to cope with this kind of x ed costs and, thus, self-select into foreign markets. Whether the regime change from national to multinational activities also improves home market performance after switching is less obvious.If there is no other alternative to serve foreign markets besides the set-up or acquisition of an af liate (horizontal perspective), becoming a MNE would have no negative or even positive effects on domestic operations. If, in contrast, the purpose of a multinational's foundation is to vertically divide its production process, performance measures could rise or decline. The question whether investing abroad improves home market performance or not is therefore essentially an empirical issue.My ndings provide clear evidence throughout the following points: During the years prior to the regime cha...

Feedback can help individuals put their performance into perspective, especially when transitioning into a new environment such as university or a different job. In a randomized field experiment we give first-year university students normatively framed relative performance feedback about their accumulated course credits. We find an increase in subsequent performance, but only when the feedback is positive. Using a regression discontinuity design, we show that the improved performance is not driven by unobserved characteristics of those receiving positive feedback, but that it is indeed due to the positive rather than negative nature of the feedback. We administer a replication experiment with the next wave of first-year students one year later and reproduce the results. Survey data provides suggestive evidence that positive feedback has an effect on behavior when students underestimate their relative performance, and that consistent with a mechanism of selective information processing, individuals focus on positive feedback to adjust their beliefs.