Gender and Promotions: Evidence from Academic Economists in FranceJournal articleClément Bosquet, Pierre-Philippe Combes et Cecilia Garcia-Peñalosa, Scandinavian Journal of Economics, Volume 121, Issue 3, pp. 1020-1053, 2019

The promotion system for French academic economists provides an interesting environment to examine the promotion gap between men and women. Promotions occur through national competitions for which we have information both on candidates and on those eligible to be candidates. Thus, we can examine the two stages of the process: application and success. Women are less likely to seek promotion, and this accounts for up to 76 percent of the promotion gap. Being a woman also reduces the probability of promotion conditional on applying, although the gender difference is not statistically significant. Our results highlight the importance of the decision to apply.

Inequality in Macroeconomic ModelsJournal articleCecilia Garcia-Peñalosa, Revue de l'OFCE, Volume 157, Issue 3, pp. 93-115, 2018

This articles focuses on the recent research efforts to incorporate income, wage and wealth inequality in macroeconomic models. I start by reviewing recent models on the impact of inequality on, on the one hand, long-run growth and, on the other, and macroeconomic fluctuations. The articles then reviews the literature concerned with the macroeconomic determinants of wage and wealth inequality. It concludes by discussing a number of possible avenues of research that seem to me particularly important, such as the impact of macroeconomic policy on distribution or the effect that firm size can have on both growth and wage inequality.

Top incomes, wealth and inheritance: special issue in homage to Tony AtkinsonJournal articleFacundo Alvaredo et Cecilia Garcia-Peñalosa, The Journal of Economic Inequality, Volume 16, Issue 2, pp. 131-136, 2018

No abstract is available for this item.

Constitutional rules as determinants of social infrastructureJournal articleTheo S. Eicher, Cecilia Garcia-Peñalosa et David J. Kuenzel, Journal of Macroeconomics, Volume 57, Issue C, pp. 182-209, 2018

A sizable literature has established the positive impact of social infrastructure on economic development, but the determinants of social infrastructure itself have yet to be fully explored. Competing theories suggest a variety of political institutions as driving forces of social infrastructure, but the empirical literature has been hampered by the small set of available proxies, many of which are broadly defined. We leverage a new, comprehensive dataset that codes political institutions directly from countries’ constitutions. By employing a statistical methodology that is designed to juxtapose candidate regressors associated with many competing theories, we test each individual political institution's effect on social infrastructure. Our results show that constitutional rules pertaining to executive constraints as well as to the structure of electoral systems are crucial for the development of high-quality social infrastructure. We also find that the determinants of social infrastructure are much more fundamental than previously thought: not only the general structure of electoral systems matter, but also highly detailed aspects such as limits on campaign contributions and the freedom to form parties. Moreover, the granularity of our data allows us to highlight the profound effect of basic human rights on social infrastructure, a dimension which has not been explored in the literature to date.

The long-term cost of protectionism for educationJournal articleVincent Bignon et Cecilia Garcia-Peñalosa, Rue de la Banque, Issue 47, 2017

The long-term costs of protectionism are difficult to evaluate as very few countries have switched back to this economic policy after a long period of free trade. One country that did make the move was France in 1892, when the Chamber of Deputies, encouraged by the president of the customs commission, Jules Méline, decided to sharply raise cereal import duties. This decision slowed the upwards trend in education levels as it made farming jobs more attractive than manufacturing jobs, thereby reducing the relative return on an education. These findings are consistent with the theory of unified growth which associates demand for education with technological improvement. They also suggest that educational progress is reversible.

Les inégalités dans les modèles macroéconomiquesJournal articleCecilia Garcia-Peñalosa, Revue de l'OFCE, Volume 153, Issue 4, pp. 105-131, 2017

Cet article s’intéresse aux inégalités de répartition des salaires et du patrimoine comme programme de recherche macroéconomique. Après un bref aperçu des modèles récents liant inégalités et croissance à long terme d’une part, et inégalités et fluctuations macroéconomiques d’autre part, nous passons en revue la littérature sur les facteurs macroéconomiques à l’origine des inégalités de répartition des salaires et du patrimoine. En guise de conclusion, nous proposons quelques pistes de recherches futures qui nous semblent importantes à mener telles que le rôle des politiques macroéconomiques sur la répartition ou encore celui de la taille des entreprises sur la croissance et leur contribution aux inégalités.

Are changes in the dispersion of hours worked a cause of increased earnings inequality?Journal articleDaniele Checchi, Cecilia Garcia-Peñalosa et Lara Vivian, IZA Journal of European Labor Studies, Volume 5, Issue 1, pp. 1-34, 2016

Earnings are the product of wages and hours of work; hence, the dispersion of hours can magnify or dampen a given distribution of wages. This paper examines how earnings inequality is affected by the dispersion of working hours using data for the USA, the UK, Germany, and France over the period 1989–2012. We find that hours dispersion can account for over a third of earnings inequality in some countries and that its contribution has been growing over time. We interpret the expansion in hours inequality in European countries as being the result of weaker union power that led to less successful bargaining concerning working hours.

Income Inequality, Mobility, and the Accumulation of Capital.Journal articleCecilia Garcia-Peñalosa et Stephen J. Turnovsky, Macroeconomic Dynamics, Volume 19, Issue 06, pp. 1332-1357, 2015

We examine the determinants of income mobility and inequality in a Ramsey model with elastic labor supply and heterogeneous wealth and ability (labor endowment). Both agents with lower wealth and with greater ability tend to supply more labor, implying that labor supply decisions may have an equalizing or unequalizing effect depending on the relative importance of the two sources of heterogeneity. Moreover, these decisions are central to the extent of mobility observed in an economy. The relationship between mobility and inequality is complex. For example, a reduction in the interest rate and an increase in the wage rate reduce capital income inequality and allow upward mobility of the ability-rich. However, the increase in the labor supply of high ability agents in response to higher wages raises earnings dispersion and thus has an offsetting effect. As a result, high mobility can be associated with an increase or a decrease in overall income inequality. (This abstract was borrowed from another version of this item.)

8. Le monde universitaire, un laboratoire d'analyse des différences d'avancement de carrière des hommes et des femmesJournal articleClément Bosquet, Cecilia Garcia-Peñalosa et Pierre-Philippe Combes, Regards croisés sur l'économie, Volume 15, Issue 2, pp. 158-165, 2014

Focusing on the promotion system for French academics, the authors aim at understanding the causes behind the underrepresentation of women among the highest positions. Three potential explanations are tested: gender discrimination, self-selection of women into competition, and poorer performance of women in contests conditional on applying for promotion. A rich database including information on candidates, those eligible to be candidates and the results of competitive examinations is used. They find that women have a lower probability to be candidates. It remains to understand why women tend to participate less than men in contests.

Pourquoi les femmes occupent-elles moins de postes à responsabilité ?Journal articleClément Bosquet, Pierre-Philippe Combes et Cecilia Garcia-Peñalosa, Liepp Policy Brief, Volume 14, pp. 1-6, 2014

Gender gaps in employment and wages have decreased over the past decades, especially once we control for observable characteristics. However, women are still underrepresented in high paid jobs, and this is largely the result of lower promotion rates. Our study on French academic economists, whose promotion to senior positions occurs through a national contest, finds that women are not subject to discrimination during the promotion contests. Instead, female academics are between 30 and 40% less likely than men to enter these contests. We also find that this application gap is not due to a higher cost of promotion for women nor to women having a different trade-off between wages and department prestige than men, which leaves the expectation of discrimination and a dislike for entering competitions as the sole possible explanations. Long-term public policy can aim at encouraging self-confidence in girls so as to eventually make women as competitive as men. In the short term, making the application gap public knowledge so as to change women’s expectations of discrimination or making candidatures automatic, substituting the opting-in by an opting-out system, could reduce the gender gap in promotions