Internationalisation, innovation and productivity in services: evidence from Germany, Ireland and the United Kingdom

by Bettina Peters, Rebecca Riley, Iulia Siedschlag, Priit Vahter, John McQuinn
February, 2018

This paper examines the links between internationalisation, innovation and productivity in service enterprises. For this purpose, we use micro data from the Community Innovation Survey 2008 in Germany, Ireland and the United Kingdom, and estimate an augmented structural model. Our empirical evidence highlights the importance of internationalisation in the context of innovation outputs in all … Continued

Why do wages grow faster in urban areas? Sorting of high potentials matters

by Paul Verstraten, Gerard Verweij, Peter Zwaneveld
February, 2018

The existence of an urban wage growth premium is a well-established empirical fact. This article challenges the conventional view that faster wage growth for urban workers is caused by human capital spillovers. Instead, we find that the positive association between city size and individual wage growth is to a large extent driven by sorting of … Continued

The Internet and Jobs: Opportunities and ambiguous trends

by Lorenzo Pupillo, Eli Noam, Leonard Waverman
February, 2018

Virtually all of the empirical literature on the impact of the internet on jobs indicates that the internet has indeed created many new jobs, but that a large number of jobs may also have been destroyed or downgraded in the process, at least in the short run. Furthermore, studies suggest that routinisation, job market polarisation … Continued

Income Convergence in the EU: Within-country regional patterns

by Cinzia Alcidi, Jorge Núñez Ferrer, Roberto Musmeci, Mattia Di Salvo, Marta Pilati
February, 2018

Income convergence is clearly taking place within the EU as a whole, but contrasting trends emerge from one country to another, calling for a closer look at regional economic development. This contribution is the second in a new CEPS series on economic and social convergence in the EU, focusing on the features of income convergence … Continued

To own or not to own? Household portfolios, demographics and institutions in a cross-national perspective

by Eva Sierminska, Karina Doorley
February, 2018

Using harmonized wealth data and a decomposition approach novel to this literature, we identify differences in determinants and in income profiles of asset and debt portfolios in European and North American countries. We find that family structure and income play a significant role in explaining cross-country differences in asset participation for the younger cohort. Large … Continued

Borrowing constraints and housing market liquidity

by Niku Määttänen
February, 2018

We study how changes in household borrowing constraints influence housing market liquidity. To this end, we develop a housing market model with both matching and credit frictions. In the model, risk-averse households may save or borrow in order to smooth consumption over time and finance owner housing. Prospective sellers and buyers meet randomly and bargain … Continued