Purpose This study aims to examine the effect of paternity leave on fertility over time. It exploits the staggered expansion of paternity leave from 2 to 12 weeks to assess how the leave influenced birth rates overall and among specific maternal groups. Design/methodology/approach The authors use national birth records and apply a time series synthetic control framework within a Bayesian Structural Time Series model to construct counterfactual fertility series and estimate the effect of paternity leave over time. As leave entitlement is determined by the child’s date of birth, the authors exploit policy cutoffs to identify variation in exposure. This allows them to track the effects over time and beyond couples who had children immediately around each reform. Additionally, the authors distinguish impacts across maternal groups. Findings While no aggregate effect on fertility is observed, persistent increases in birth rates are found among specific groups. The introduction of a two-week paternity leave led to an 8.4% increase in third births and a doubling of birth rates among employed mothers. These effects remained for at least two years post-reform. Later extensions of paternity leave did not produce further changes in fertility. Originality/value This study provides novel evidence on the limited aggregate impact of paternity leave on fertility and highlights its heterogeneous effects over time across maternal characteristics and birth order. The findings underscore the potential of paternity leave to support fertility through father involvement among employed and non–first-time mothers, suggesting that targeted policies toward these groups could be more effective in promoting fertility.

Purpose This study aims to examine the geographical spread of the EU-funded circular economy projects in the European Union. Design/methodology/approach The authors use a novel database of research and development projects funded by the European Regional Development Fund related to the circular economy to estimate a fractional response model on data for 231 European regions. Findings First, the authors detect a geographical pattern in the share of circular economy funds. Second, the authors find that institutional quality, employment, human capital and income may drive the concentration of circular economy research and development funds. Third, the authors find overall differences between technology projects and circular economy projects, suggesting that addressing the circular economy at the subnational level is complex. Social implications This work can be helpful to disseminate Sustainable Development Goals (SDGs). In particular, the authors pay special emphasis on SDGs numbers 11 (Sustainable Cities and Communities) and 13 (Climate Action). Originality/value The findings confirm the existence of a geographical spread of the circular economy, which may be useful to move toward regional sustainable development in the European Union.

Purpose Within the framework of EU policies and measures to develop a just and fair green energy transition model. This paper aims to offer valuable insights into a paramount concern not so well debated in the literature, i.e. the spatial variation of energy poverty. Design/methodology/approach This empirical analysis investigates the regional variation of energy poverty we draw on a sample of more than 300,000 Spanish households, extracted from the Spanish Household Budget Survey (HBS) for the period 2006–2022. To characterize the probability of a household finding itself in a situation of energy poverty the authors use a discrete choice univariate probit model. Findings The results confirm that energy poverty is a phenomenon that is asymmetrically distributed across Spain, and mainly occurs in un-densely populated regions. In addition, the findings demonstrate that the incidence of energy poverty drivers is highly heterogeneous across regions. Research limitations/implications The paper ends with some recommendations for policymakers suggesting that countries need to design an energy poverty policy for the households that jointly pursue both a correct identification of vulnerable groups and a match with the type of measure to the characteristics of each region. Originality/value This study enhances previous research by considering the case of areas at a lower level of aggregation (i.e. on the NUTS two regions in Spain called autonomous communities) and offers the opportunity to tailor policies to those regions most in need. Furthermore, to provide a more realistic picture of the complex phenomenon of energy poverty, the authors use the information for the period 2006–2022 differentiating by economic micro-cycle. This timespan allows the authors to understand the dynamics of energy poverty in periods of economic crisis, including the effects of the 2008 crisis and the present global energy crisis.

Purpose This paper aims to analyse gender wage gaps by university majors along the entire wage distribution in Spain before and after the 2008 financial crisis. Design/methodology/approach The authors perform unconditional quantile regressions to estimate the gender wage gap and use the Oaxaca–Blinder approach to decompose the gender gap. Findings The observed gender gap among graduates hides significant differences across various fields of study, and both the gap and its unexplained part are highly dependent on the position in the distribution. Engineering and Experimental sciences are the fields with the highest wage differences, and the gap size worsens with the crisis. Health and Humanities, the majors with the highest women presence, show a higher proportion of unexplained part at the bottom tail of the wage distribution, especially after the crisis, suggesting that discrimination against low-paid women has aggravated in these majors. Originality/value The paper adds to the existing knowledge by analysing the role that educational decisions play in shaping the wage gap, the variability of the gap along the wage distribution and its response to a change in macroeconomic conditions.

Purpose The purpose of this study is to explore the link between aggregate production efficiency and the extent of linguistic clustering in Indonesia. Design/methodology/approach The author draws on the stochastic frontier model and applies it to the data on Indonesian provinces to compute the effects of various determinants on these provinces' aggregate production efficiency. The key determinant is the spatial index of linguistic clustering that the author believes has never been applied before in this context. Findings Linguistic clustering is an important determinant of aggregate production efficiency. Linguistic diversity is positively associated with productive efficiency if members of a specific linguistic group are not clustered beyond a certain level. Originality/value To the best of the author’s knowledge, this is the first study that links the spatial index of linguistic clustering (because of Massey and Danton) to production efficiency. In other words, the contribution of this study is to introduce a geographical dimension to the mainstream analysis of the association between ethnic diversity and economic performance.

Purpose This paper aims to apply regression-tree analysis to capture the nonlinear effects of corruption on economic growth. Using data of 103 countries for the period 1996–2017, the authors endogenously detect two distinct areas in corruption quality in which the members share the same model of economic growth. Design/methodology/approach The authors apply regression tree analysis to capture the nonlinearity of the influences. This methodology allows us to split endogenously the whole sample of countries and characterize the different ways through which corruption impacts economic growth in each group of countries. Findings The traditional determinants of economic growth have different impacts on countries depending on their level of corruption, which, in turn, confirms the parameter heterogeneity of the Solow model found in other strands of the literature. Originality/value The authors apply a new approach to a worldwide sample obtaining novel results.

PurposeThis study aims to analyse the inequalities in access to teleworking in Spain. More specifically, the study examines what factors determine remote working in a pre-pandemic period and during the state of alarm (March 2020). Moreover, the study examines whether telecommuting is related to the likelihood of suffering emotional disorders during lockdowns.Design/methodology/approachThe methodological approach followed to analyse access to teleworking mainly consists of the estimation of ordered response models. Two datasets are used: the first is the Survey on Equipment and Use of Information and Communication Technologies (ICTs) in Households, conducted by the Spanish National Statistics Institute (INE) in the pre-pandemic period (2018). The second is the Social Survey 2020. Habits and Living Conditions of the Andalusian Population during the State of Alarm, conducted by the Institute of Statistics and Cartography of Andalusia (IECA) once the state of alarm was declared in Spain.FindingsThe results obtained indicate that ICT training is a key element in helping to explain the likelihood of working from home. However, some groups of workers might experience difficulties in their transition to teleworking. This could increase labour market segmentation and hinder the transition to the knowledge economy. Moreover, the findings detect that employees working both on the company premises and from home are more likely to suffer emotional disorders.Originality/valueThe paper sheds new empirical evidence on teleworking in Spain and Andalusia, including some novel methodological aspects to estimate the regressors’ effects on the probability of working from home.

Purpose This paper aims to weigh the restrictions to job creation imposed by labor market imperfections with respect to financial market imperfections. The authors want to see which restriction is more severe, and thus assess which is more powerful in creating permanent employment if it were removed. Design/methodology/approach A structural estimation is performed. The policy rules of the dynamic programming model are integrated into a simulated maximum likelihood procedure by which the model parameters are recovered. Data come from the CBBE (Balance Sheet data from the Bank of Spain). Identification of key parameters comes mainly from the observation of debt variation and sluggish adjustment to permanent labor. Findings Long-run permanent employment increases up to 69% when financial constraints are removed, whereas permanent employment only increases up to 54% when employment protection or firing costs are eliminated. The main finding of this paper is that the long-run expansion of permanent employment is larger when financial imperfections are removed than when firing costs are removed, even when there are important wage increases that moderate these employment expansions. Social implications The removal of firing costs has been suggested by several economists as a result of the analysis of labor market imperfections. These policies, however, face the strong opposition of labor unions. This paper shows that the goals of permanent job creation can be accomplished without removing employment protection but by means of enhancing financial access to firms. Originality/value The connection between financial constraints and employment has been studied in recent years, motivated by the Great Recession. However, there is no assessment of how financial and labor market imperfections compare with each other to restrict permanent job creation. This comparison is crucial for policy analysis. This study is an attempt to fill out this gap in the economic literature. No previous research has attempted to perform this very important comparison.

Purpose This paper aims to analyze the effectiveness of aid in stimulating investment using different measures of aid and up-to-date panel time-series techniques. This study controls for endogeneity by using dynamic ordinary least squares (DOLS) and minimizes the risk of running a spurious long-run relationship by using series that are cointegrated. This paper finds evidence that aid promotes investment in countries with good institutional quality and gain interesting insights on the influence of country characteristics and the amount of aid received. Aid is ineffective in countries with unfavorable country characteristics such as a colonial past, being landlocked and with large distances to markets. Aid can boost investment in regions that receive high (above-median) amounts of aid such as Africa and the Middle East but not in regions that receive low amounts of aid. Investment-targeted aid is effective but non-investment-related aid can also enhance investment. Design/methodology/approach Regressions on the aid-investment nexus are based on either a rather simple (115 countries) or an extended/augmented investment model (91 countries). The data covers the period of 1973–2011 and 1985–2011 if the institutional quality is included. This study estimates the relationship between aid and investment by applying the DOLS/dynamic feasible generalized least squares technique which is based on a long-run relationship of the regression variables (cointegration). In this framework, this paper incorporates country-fixed effects, control for endogeneity, autocorrelation and take heteroscedasticity and cross-country correlation of the residuals into account. Findings This study finds empirical evidence that aid promotes investment in countries with good institutional quality and gain interesting insights on the role played by country characteristics and the amount of aid received. Aid is ineffective in countries with unfavorable country characteristics such as the colonial past, being landlocked, distant from markets. Aid can boost investment in regions that receive high (above-median) amounts of aid such as Africa and the Middle East. Investment-targeted aid is effective but non-investment-related aid also able to enhance investment. Research limitations/implications The study looks at the investment to gross domestic product (GDP) ratio (including domestic investment and foreign direct investment (FDI)) and, hence does not disentangle these factors. It looks at the net effect (positive and negative impact together) and, therefore does not allow to identify the direct crowding out the impact of aid. Of course, if this paper finds that aid has a negative impact on investment, it is clear that aid must have crowded out either domestic investment or FDI or both. Practical implications The authors think that it is relevant to have identified the circumstances and settings in which foreign aid can be particularly effective and in which foreign aid needs accompanying measures that improve the effectiveness of aid. Also, it is relevant that the relative amount of aid received (aid-to-GDP ratio) must be quite high so that aid can increase investment. Social implications This study sees that the least developed, low-income countries and (in terms of regions) the sub-Saharan Africa countries benefit from aid. This is very desirable. This paper further sees that higher relative amounts of aid do help more and that it is helpful to care about a better institutional quality in developing countries. Hence, this study provides some support for the desirability of aid. Originality/value The paper was done very diligently, and this study is very confident that the results are robust. This paper is also confident that this study has studied the long-run (which is of special importance) nexus between aid and investment. The estimation technique used is original, as it combines regular DOLS with corrections for autocorrelation and cross-section dependence.

Purpose This paper aims to review the economic impact of Covid in Spain and propose policies to deal with them. Design/methodology/approach Not relevant. Findings The pandemic is having a very severe effect, which varies across sectors and regions. Given the severity of the problem, a comprehensive policy strategy is needed. Specific proposals about such a strategy are made, distinguishing between the short and the long run. Originality/value It provides a discussion about the main measures that have been taken to mitigate the economic consequences of Covid in Spain and about what else should be done.