New SSE Riga/BICEPS working paper2017 28-08
New SSE Riga/BICEPS working paper by Anete Pajuste (SSE Riga) and Hernan Ruffo (UTDT) - "Wage rigidity and workers’ flows during recessions"
Entrepreneurship in Transition Economies2017 07-08
The new book, "Entrepreneurship in Transition Economies", edited by Arnis Sauka and Alexander Chepurenko, presents a state-of-the-art portrait of entrepreneurship in the transition economies of Central and Eastern Europe (CEE) and the Commonwealth of Independent States (CIS) as well as Georgia and Ukraine. The book contains a chapter “The Business Cycle and Early-Stage Entrepreneurship in Latvia” written by Marija Krumina and Anders Paalzow (BICEPS/SSE Riga).
On July 1st BICEPS researchers - Nicolas Gavoille, Marija Krūmiņa and Anna Zasova - participated in the annual festival "LAMPA" and showed how economists use models to answer questions like "Why do people decide to form a relationship?" or "How do people exploit imperfections of benefit systems to extract extra gains?". It was great fun and thank you to all participants who came to listen to us to the Swedish tent and initiated very interesting discussions. Hope to meet you again at LAMPA!
European Pillar of Social Rights and Social Harmonization in the Eyes of Latvian Stakeholders2017 02-03
The policy brief "European Pillar of Social Rights and Social Harmonization in the Eyes of Latvian Stakeholders" by Ieva Moore was prepared within a research project entitled “SocialBoost – effective measures of social harmonization as a boost for employability in times of demographic changes”, which received funding under the Nordic Council of Ministers’ Programme for NGOs in the Baltic Sea Region.
New FREE Policy Brief2017 30-01
Gaming the System: Side Effects of Earnings-Dependent Benefits by Anna Zasova (BICEPS) and Vitalijs Jascisens (SITE). Today policy makers in developing and middle-income countries face tremendous challenges in combating various forms of tax evasion. Increasingly it is proposed to tie social security benefits to the reported income and in this way increase tax compliance incentives. We use administrative data from Latvia to study generous childcare benefits, which depend on the reported wages in the pre-childbirth period. Our analysis reveals pronounced wage growth shortly before the childbirth, which we rationalize by the legalization of previously undeclared wages. Obtained results show that the wage growth is temporary and lasts only until the end of the period, which is taken into account when calculating parental benefits.