Published by De Gruyter Oldenbourg

Volume 73 Issue 2

Issue of Review of Economics

Contents
Journal Overview

Publicly Available September 13, 2022

Research Articles

September 13, 2022

Education Mismatch and Wages in Mauritius: Premium or Penalty

Verena Tandrayen Ragoobur

Page range: 103-129

Abstract

The paper investigates into the link between education mismatch and wages in Mauritius. It adds to the existing literature on education mismatch and labour market outcomes by using Mauritius as a case study in Africa, where overeducation is a growing concern, with graduates struggling to find jobs corresponding to their education level and field, the so-called vertical and horizontal mismatches. This supply-demand inadequacy ascends from a mix of factors and one of them can be termed as the ‘diploma disease’. Using the Continuous Multi-Purpose Household Surveys from 2013 to 2017, the pooled estimation results find evidence for a wage penalty of 1.3% for overeducated individuals compared to perfectly matched workers. A wage penalty of around 9.6% is also noted for undereducated workers compared to their perfectly matched counterparts. Heckman two step estimation approach is adopted to account for sample selection bias whilst the instrumental variable two stage least squares is applied to cater for the endogeneity of overeducation. The wage penalty for overeducation and undereducation under Heckman estimation method compares to ordinary least squares estimates with slight differences in the magnitude of the wage penalty. Once we account for endogeneity, the wage penalty for overeducated workers rose to 11% while that of overeducation did not change.

September 13, 2022

Gender Gap in Schooling and Wages: Effects of Foreign Capital and Education Subsidies

Ujjaini Mukhopadhyay

Page range: 131-157

Abstract

The paper develops a two-sector full employment general equilibrium model with endogenous schooling decisions. It aims to evaluate the effects of educational demand management policies on gender inequality in schooling and wage inequality. The results point towards the role of social norms in shaping parental discrimination against girls’ education, which accentuates gender gap in schooling due to gender-neutral education subsidy and rise in household income induced by foreign capital inflow. The two policies are favourable for gender wage gap if the agricultural sector is more female labour intensive than the manufacturing sector and returns to schooling are considerably higher for women than men. However, gender targeted education subsidy policies are in general beneficial with respect to both gendered schooling and wages. The paper contributes to the literature by identifying the role of factor intensity conditions and gender differentiated returns to education on the gendered schooling and labour market outcomes of demand side interventions in education. It also provides theoretical explanations to diverse impacts of these policies and suggests appropriate policy recommendations.

September 13, 2022

Manager Delegation, Owner Coordination and Firms’ Investment in Automation

Manfred Stadler, Maximiliane Unsorg

Page range: 159-182

Abstract

This paper studies the combined effects of mixed ownership structures and manager delegation on firms’ investment in automation processes in a multi-stage triopoly game. We show that, in accordance with empirical evidence, firms owned by common shareholders invest less in automation and realize lower profits compared to a firm owned by independent shareholders. Direct collusion of owners in terms of coordinated investment increases the profits, the one of the independent firm even more than the profits of the commonly owned firms. Delegation of operational decisions to managers results in higher investment and lower profits. In markets with favorable technological opportunities for automation, common ownership combined with manager delegation leads to the highest social welfare.

About this journal

Welcome! As of 2016 the Review of Economics as well as all other journals of Lucius and Lucius Verlagsgesellschaft are published by De Gruyter Oldenbourg.

Aims and Scope
The Review of Economics (Jahrbuch für Wirtschaftswissenschaften) is a peer-reviewed general interest journal and publishes articles from all fields of economics.
Only articles with a strong policy focus are considered for publication. The Review of Economics will consider papers that are based on (i) a well defined theoretical model (ii) an empirical analysis or (iii) an experimental or (iv) an evidence-based framework.
The Review of Economics is also highly interested in survey articles on important policy issues.
Since the Review of Economics intends to deliver a forum for policy contributions and to influence the public debate we guarantee a quick and efficient referee process (the initial publication decision will be made within a maximum of 90 days). The editors may decide to publish papers without a referee process whenever authors send their submissions together with the referee reports and the decision letter of the previous submission and explain how they reacted to the reports. Accepted articles will be pre-published on the internet page of the journal as soon as they are accepted. Because the Review of Economics is not an e-Journal all articles also appear in a regular print version with some delay.

Partner Journal
Czech Journal of Economics and Finance

The Czech Journal of Economics and Finance (ISSN 0015-1920) is an English-language, double-blind refereed academic journal published in Prague since 1951. It devotes special attention to monetary economics, public finance, financial economics, and international economics, but it is open to high-quality papers from all fields of modern economics. The editors prefer empirically oriented papers, but do not exclude review articles or theoretical contributions provided that they are of high quality and relevant to the journal's aims.

Volume 73 Issue 2

Issue of Review of Economics

Frontmatter

Education Mismatch and Wages in Mauritius: Premium or Penalty

Abstract

Gender Gap in Schooling and Wages: Effects of Foreign Capital and Education Subsidies

Abstract

Manager Delegation, Owner Coordination and Firms’ Investment in Automation

Abstract