The fall in the US labor force participation during the Great Recession stands in sharp contrast with its parallel increase in the euro area. In addition to structural forces, cyclical factors are ...also shown to account for these patterns, with the participation rate being procyclical in the US since the inception of the crisis and countercyclical in the euro area. We rationalize these diverging developments by using a general equilibrium business cycle model, which nests the endogenous participation decisions into a search and matching framework. We show that the “added worker” effect might outweigh the “discouragement effect” if real wage rigidities are allowed for and/or habit in consumers’ preferences is sufficiently strong. We then draw the implications of variable labor force participation for inflation and establish the following result: if endogenous movements in labor market participation are envisaged, then the degree of real wage rigidities becomes almost irrelevant for price dynamics. Indeed, during recessions, the upward pressures on inflation stemming from the lack of downward adjustment of real wages are offset by an opposite influence from the additional looseness in the labor market, due to the higher participation associated with wage rigidities.
This paper proposes a framework based on the collective intelligence principle to understand how the healthcare ecosystem is facing the challenges posed by the COVID-19 by using the Internet of ...Things (IoT) combined with other digital technologies. The underlying assumption is to consider the Healthcare ecosystem as a collective intelligence system in which the multitude of actors can be coordinated to address the pandemic-specific management challenges. The Italian healthcare ecosystem is analyzed as scenario taking in consideration the ‘genes’ of the collective intelligence: What is being done?, Who is doing it?, Why are they doing it? and How is it being done?. Our analysis introduces policy implications based on a unique decision support system (DSS) to allocate a limited set of IoT devices to a larger group of patients, to balance the alternative needs to improve the conditions of the most severe patients but to maximize the efficiency of device use.
Using a representative panel of manufacturing firms, we estimate the response of job and hours worked to currency swings, showing that it depends primarily on firms' exposure to foreign sales and ...their reliance on imported inputs. We also show that, for a given international exposure, the response to exchange rate fluctuations is magnified when firms exhibit a lower monopoly power and when they face foreign pressure in the domestic market through import penetration. The degree of substitutability between imported and other inputs and the distribution of workers by type introduce additional degrees of specificity in the employment sensitivity to exchange rate swings. Moreover, we show that episodes of entry and exit in the export market are associated with a heterogeneous employment response depending on the degree of external orientation when the switch of export status occurs.
We characterize the process of digital transformation of Italian firms and the impact on TFP. Using information of unusual breadth on different types of investments in digital technologies, we ...consider various dimensions of digital adoption such as whether firms invested in advanced domains (like AI) or bundles of more than one technology. We investigate the effects of digital technologies on productivity using alternative criteria to classify firms as digital adopters. With our baseline definition, the estimated effect on the percentage change in TFP between 2015 and 2018 is about one percentage point (0.97). With more restrictive definitions of digital adoption, the estimated impact is found to be larger, and it is largest when digital adoption is associated with investments in at least one AI-related technology. We also show that, in general, the effect of digital adoption is more sizeable in the service sector, in larger firms and in older firms.
•We characterize digital transformation using firm-level data of unusual breadth.•Many dimensions of digital adoption are considered, including advanced domains.•Alternative criteria are used to classify Italian firms as digital adopters.•We estimate the effect of adopting digital technologies on the firm's TFP change.•In general, the effect is larger in services, in larger firms and in older firms.
Firm performance is known to benefit from participation in import markets. For this reason, understanding whether credit constraints hamper firms’ ability to purchase foreign inputs is a relevant ...issue. In this paper, we investigate the relationship between financial constraints and imports of intermediate inputs using a large sample of small‐ and medium‐sized enterprises from 66 developing countries. To measure credit constraints, we use information from a firm's in‐depth self‐assessment of its difficulties in having access to external finance. Furthermore, to tackle the endogeneity problems in the estimation, we rely on an instrumental variable approach that allows us to establish more directly the impact of financial constraints on importing activities. We provide statistically and economically significant evidence that credit‐constrained firms have a lower probability of importing intermediates (the extensive margin) and a smaller share of imported intermediates in their total input expenditure (the intensive margin). Moreover, we show that the impact on these margins of import is stronger for firms operating in countries where the financial system is less developed, the quality of institutions poorer and the overall level of economic freedom lower.
Growing evidence suggests that a large share of international trade transactions are made through intermediaries and that whether firms use them or not depends on different factors. The aim of this ...paper is to empirically investigate if credit constraints introduce a degree of difference among firms in their mode of importing. Building on the intuition provided by a simple theoretical framework, we use firm-level data from 66 developing and developed countries to test the possible links between credit constraints and reliance on import intermediaries. Our results show that indeed credit-constrained firms exhibit a higher probability of importing their inputs using an intermediary, while unconstrained firms are more likely to import directly. Our results also provide some evidence that the impact of credit constraints on the probability of indirect importing is amplified for firms with a higher distance from their international sourcing network. Moreover, if firms face other types of frictions to import, then the probability that credit-constrained firms rely on intermediaries is estimated to be higher. Remarkably, credit rationing affects the probability of indirect importing no matter what the mode of exporting is.
This study presents an optimisation model for scheduling homebound vaccination in a more efficient way to address the existing workforce management challenge. We consider a home healthcare routeing ...challenge for people to be vaccinated at home based on limited resources. There are different types of patients that are categorised based on the services they require and should be served by appropriate workforce teams or a single medical staff, where teams are transported by rental vehicles. In this context, our goal is to minimise the total cost of transportation while considering patient requirements and workforce qualifications, as well as resource constraints and the time limit within which the vaccine must be administered. To pursue this goal, a mathematical formulation, based on the vehicle routeing dynamics is proposed, along with an algorithm to address the challenge. A case study with a Physician who administers vaccinations at home in southeastern Italy is analysed. Driving and working times are subject to uncertainty and are defined by empirical data. Our approach allows the physician to identify the most promising solutions and thus the best one in terms of reducing work time and risk. The resulting schedule maximises the vaccine delivery rate.
A shift in the design of labor compensation occurred at around the mid-1980s in the U.S. and deals with an increased role of performance pay in driving the cyclical movements of wages. Using a DSGE ...model we show that this structural change accounts at least qualitatively for many observed changes in the U.S. labor market dynamics. It generates the disappearance of the procyclical response of labor productivity to non-technology shocks and the reduction of the contractionary effects of technology shocks on hours. Moreover, it is conducive to a drop in the volatility of output, a parallel increase in the volatility of wages and to changes in unconditional correlations consistent with what documented in the U.S. between the pre- and post-1984 periods.
Recent contributions have suggested that technology shocks have a negative impact on hours, contrary to the prediction of standard flexible-price models of the business cycle. Some authors have ...interpreted this finding as evidence in favor of sticky-price models, while others have either extended flexible-price models or disputed the empirical finding itself. In this paper, we estimate a variety of alternative total factor productivity measures for a representative sample of Italian manufacturing firms and on average find a negative effect of productivity shocks on hours growth. More interestingly, using the reported frequency of price reviews, we show that the contractionary effect is stronger for firms with stickier prices and weaker or not significant for firms with more flexible prices. Price stickiness remains a crucial factor in shaping the response of hours after controlling for product storability or market power.
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