Trade, Taxes and Technology: CERGE-EI Insights, Winter 2024

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Winter 2024 Online Version

A Digest of CERGE-EI Research and Events

Located in Prague, CERGE-EI is dedicated to excellence and innovation in economic research and education. Chartered by the State of New York, CERGE-EI is a joint workplace of Charles University and the Czech Academy of Sciences, and is supported by numerous donors.

» Journal Articles » Working Papers » Meet the graduate » At CERGE-EI

	Selected Journal Articles
	Activated History: The Case of the Turkish Sieges of Vienna Christian Ochsner and Felix Roesel American Economic Journal: Applied Economics 16(3):76–112 How can history resonate in present-day debates and influence voting and xenophobia? The authors show that populist campaigning interacts with local collective memories and activates beliefs and actions. The results help to understand the increase in anti-Muslim sentiment in Austria and underscore the need for an education system that critically discusses historical constructions and a critical democratic discourse. Read more

	Redistributive Capital Taxation Revisited Özlem Kina, Ctirad Slavík, and Hakki Yazici American Economic Journal: Macroeconomics 16(2):182–216 What is the optimal tax rate on capital? The authors quantify the optimal tax rate on capital is 67%, which is higher than previous recommendations. This is because a rise in capital taxes decreases the demand for skilled workers more relative to the demand for unskilled workers, providing indirect redistribution from the skilled to the unskilled. Redistributive governments should factor in this effect when taxing capital. Read more

	Who Divorces Whom: Unilateral Divorce Legislation and the Educational Structure of Marriage Geghetsik Afunts and Štepán Jurajda Demography 61(4):1097–1116 Does making divorce easier affect the educational structure of marriage? Using the US marriage and divorce certificate data covering 1970-1988, the authors find that the unilateral divorce legislation affected the educational structure of marriage by making hypogamous couples (women marrying less educated partners) and homogamous couples (partners with similar educational level) less likely to divorce. Read more

	More journal articles here


Selected Working Papers
Disappearing Stepping Stones: Technological Change and Career Paths Daniil Kashkarov and Valentin Artemev The authors examine the effect of technological change on career paths towards high-skilled non-routine jobs. Using job ad data from 1940 to 2000 in a model of occupational choice, they estimate that 6% of US workers ending up in high-skilled occupations used middle-skilled routine occupations as stepping stones. At least 1.37 million high-skilled workers were lost due to decreased employment opportunities in middle-skilled jobs. Read more or listen to Talking Economics.

Education Under Attack? The Impact of a Localized War on Schooling Achievements Lusine Ivanov-Davtyan How does a localised conflict impact educational outcomes in neighbouring regions? Studying the 2020 Armenian-Azerbaijani war, this paper shows that family-level exposure to war-related casualties resulted in improved pupils’ performance in subjects related to national heritage and homeland. In contrast, community-level exposure led to increased proficiency in the language of a popular migration destination. Read more

Competition and the Gender Pay Gap: Evidence from the Russian Trade Withdrawal Margarita Pavlova This is the first study to show that a decrease in competition widens the gender wage gap. Pavlova examines reduced trade flows and import competition due to the 2014 Russian embargo. The embargo worsened the relative position of women, particularly those with higher education, and led to their withdrawal from trade-related industries. A 10% reduction in import competition resulted in a 4% increase in the gender pay gap. Read more

More working papers here


	Meet the Graduate
	Essays in Development Economics Ella Sargsyan The first chapter, motivated by rising concerns over food insecurity due to various crises, investigates strategies households use to mitigate the lasting effects of income shocks and related nutritional deficits. The second chapter examines whether long-term exposure to violent conflicts influences and shapes parents' gender preferences for their children. In the final chapter, Ella explores the enduring impacts of natural disasters on parental gender preferences, focusing on memories triggered by the 1988 Armenian earthquake. During her PhD studies, Ella had the opportunity to visit the MIT Sloan School of Management and Columbia University’s School of International and Public Affairs. She also appeared as the first guest in the new CERGE-EI Talking Economics podcast series Emerging Scholars. You can listen to her inspiring story on podcast platforms, including Spotify, Apple Podcasts, and YouTube.
We are pleased to introduce our recent PhD graduate Ella Sargsyan, now a postdoctoral researcher at the Institute of Economics and Social Research (IRES) at UCLouvain in Belgium. Ella defended her dissertation, titled Essays in Development Economics, in July 2024 under the supervision of Nikolas Mittag. Her research focuses on effective household coping strategies during significant economic shocks and how violent conflicts and natural disasters influence parental gender preferences in developing countries.	"My journey at CERGE-EI was unlike anything I had experienced before. It was challenging yet immensely fulfilling. What kept me going were the incredible people at CERGE-EI who believed in me. Knowing that my mentors, colleagues, and friends appreciated my work and provided support gave me the strength to push forward and succeed. CERGE-EI also gave me the opportunity to spend almost a year in the USA, visiting Columbia University and MIT. It was encouraging to realize that the preparation I received at CERGE-EI is on par with what students at these top institutions receive," Ella shares. We wish Ella all the best in her future career!

	More dissertations here

At CERGE-EI



Professor Jan Švejnar Awarded State Decoration for His Work	Talking Economics: Emerging Scholars Podcast	New Academic Director for Master in Economic Research

On the 106th anniversary of the establishment of the Czechoslovak state, Professor Jan Švejnar, co-founder of CERGE-EI, received the Medal of Merit in Science from Czech President Petr Pavel. Švejnar’s research focuses on labor economics, corporate structure, global economic governance, and transformation economics. He has authored numerous publications in journals including American Economic Review, Econometrica, Economics of Transition, European Economic Review, and Journal of Comparative Economics. Read more	We are excited to launch Talking Economics: Emerging Scholars, a podcast series highlighting the research and journeys of recent CERGE-EI PhD graduates. In the first episodes, Ella Sargsyan, a postdoctoral researcher at UCLouvain, shares her work in development economics, while Daniil Kashkarov, a postdoc at Universidad Carlos III in Madrid, discusses his innovative research drawing on adaptation theory from biology, ecology, and economics to explore how workers adapt to automation, AI, and climate change.	Jan Zápal, Associate Professor at CERGE-EI, is the new director of the Master in Economic Research program. Bringing fresh energy and enthusiasm, Jan has restructured the program to provide a more effective blend of economics, data science, and public policy. “We designed the Master in Economic Research program to educate the next generation of economists who will use their knowledge to drive positive change,” he says. The application deadline is March 31, 2025. Read more

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