Three Essays On The Determinants Of Economic Growth

Author : Michael Klaus Jetter
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (959 download)

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Download or read book Three Essays in Economics written by Michael Klaus Jetter and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: My dissertation consist of three essays analyzing the results of decisions made by workers, both on the microeconomic as well as the macroeconomic level. My first essay, which is a coproduction with Wayne Grove and Andrew Hussey, investigates the determinants of the gender wage gap. Specifically, the paper points out that noncognitive skills, preferences for life and career, but also preferences for work ethics and work environment, are able to account for as much as one third of the explained portion of the gender wage gap.My second essay, which is co-authored with Dr. Pinaki Bose, provides a possible explanation why some tax amnesties are successful in terms of revenue collection and participation rates (for example Ireland, Colombia, India twice, and France), whereas others are not. In particular, I am modeling the taxpayer's decision whether to accept an amnesty offer from the tax authority and derive conditions under which she will be inclined to do so. The results show that if economic conditions change substantially, for example by a trade liberalization of the domestic country, a perfectly rational agent will find it optimal to accept a tax amnesty. In my third essay, I am developing a theoretical model identifying the relationship between the volatility of private sector wages and growth. The model suggests two distinct channels in which wage volatility affects growth: a positive direct way (working through precautionary savings) and a negative indirect way (working through the mediating role of government size). Applying a 3SLS approach to a panel of 19 countries, my empirical analysis provides strong evidence for the existence of both effects. Thus, this paper establishes wage volatility as a growth determinant and explains why previous growth analyses on other sorts of volatility could not reach a consensus, as the indirect effect was not recognized.