Balázs Muraközy’s presentation at the conference of the American Economic Association

In our previous post, we announced that the preliminary results of our recent project investigating the relationship between wage inequality and firms’ innovation activity were presented at the University College London’s seminar. This time, Balázs Muraközy had the chance to introduce these results also to the audience of the annual conference of the American Economic Association, in Atlanta. The presentation was discussed by Stanford’s economist, Nick Bloom.

The American Economic Association is a learned society, with a history of more than 130 years and a membership of over 20.000 economists. As one of the most renowned economic institutes, the organization’s aim is to discuss and facilitate the development of economic research around the world. AEA’s journals are among the most influential academic papers of their kind, as measured by the journals’ impact factor, which is indicative of how outstanding a chance is to present at their conference.

Further, one of our team members, Attila Lindner, has also had the privilege to organize a complete section of this year’s conference. He was responsible for the Innovation and Inequality: The Role of Firms section, which also featured Balázs’s presentation.

The presentation discussed ways in which it is possible to define the innovation activities of firms and the way in which these definitions affect our understanding of innovation’s impact on wage inequality within firms. One of the paper’s novelty is that, aside from innovation resulting from R&D activity, it also investigates the effect of low- and high-novelty innovation types by analysing firm-level microdata. Our results indicate that both the number of workers with tertiary educated and their wage increases in consequences of innovation activity by the firm, regardless of the innovation’s type. The presentation can be viewed here.

Balázs Muraközy’s presentation at UCL

Our team is currently investigating the relationship between corporate innovation and wage inequality. Balázs Muraközy presented the research’s preliminary results in a seminar at the University College London. Here, he introduced some new ways in which corporate innovation may be defined and discussed how these modifications are found to alter wage inequality within companies. One of the novelty of the research is that it employs micro-level analysis considering not only R&D-based achievements, but also low-novelty forms of innovation, such as re-organization and adaptation. The analysis shows that both the number of college educated workers and their wages increase, if a company participates in any kind of innovation. This widens the within company wage inequality, as is measured through the wage of variously skilled groups. The presentation can be found here.

Márta Bisztray’s paper on Voxeu

In our previous post we happily announced that the paper of Márta Bisztray, Miklós Koren and Ádám Szeidl was published in the Journal of International Economics. This also grabbed the attention of Voxeu, who then published a blogpost about the paper. The post, following the original article, titled ‘Do friends follow each other?’, describes how connections between firms enhance wider import activity and how these results can guide import-encouraging policies (such as the WTO’s goals). From the post, readers can find out that there is a siginificant effect of neighbors’ previous trade experience on a firm’s trade decisions. So if more companies operate in the same building and one of them is importing from a country the other will be more likely to import from the same country as well. The same is true if a manager with import experience moves from one firm to another. The effect is stronger for productive firms and for firms with many experienced neighbors. This shows the advantages of firm clusters. 

The publication can be found here and the blog post here.

New paper on the spillover effects of trade

In September, the new paper of Márta Bisztray, Miklós Koren and Ádám Szeidl was published in the Journal of International Economics. In this article, they investigate the spillover effect of knowledge between Hungarian importing firms. In particular, they seek to explain how neighbors’ or connected firms’ country-specific import experience help others to enter into a new import market. Results show that the probability of importing from a country doubles if at least one of the firm’s neighbors or the previous firms of its manager already imports from that country. This effect is stronger for big and more productive firms. With the help of a simple model they also show that the effects of an import-encouragement policy will be significantly higher if it targets firms with many and productive neighbors. The results of the paper confirm that firm clusters play a big role in facilitating the diffusion of business practices. The whole paper can be read here

Márta Bisztray’s presentation at the ERSA Congress in Cork

On 28-29th of August the 54th annual ERSA Congress was held in Cork, and our team member Márta Bisztray was among those who had a chance to present their research. ERSA (European Regional Science Association) is an international group, connecting different kinds of regional sciences. In addition to their annual conferences, they also organize summer schools and hand out awards for prominent scientists. This year, Márti presented two of her papers. One of them was about the role of corporate relationships in firms’ FDI decisions. This presentation, titled ‘Do friends follow each other?’, can be found here. The other sought to answer how a plant’s closure affects smaller firms operating in the plant’s proximity. The presentation can be viewed here.

Balázs Reizer’s presentation at the 30th EALE conference

The 30th EALE conference was held on 13-15th of September, with Balázs Reizer, our team member, among its participants. At the conference, new labour-related papers were discussed. Balázs’s paper (co-authored with Rita Pető) examined the reasons why women get less skill-intensive jobs than men at their workplace. The presentation can be found here. 

Márta Bisztray’s presentation at the ETSG conference

The annual conference of ETSG is now the largest trade-centred conference in the world. Each year a different city provides home for the conference and hence, the field’s prominent researchers to present their current work. This year in Warsaw, as in previous years, our team member Márta Bisztray also attended.  She talked about the role that corporate relationship may have in firms’ FDI decisions. The presentation – titled ‘Do Friends Follow Eachother’ – can be found here

Our team will participate in H2020

With the upcoming Horizon 2020 initiative, we will have the chance to participate in a research group called MICROPOD. Within the confines of this project, our goal will be to investigate the reasons for the productivity slowdown observable in developed countries in the recent period. The team – with the collaboration of some highly esteemed researcher centers from all over Europe (e.g. Bocconi University, Halle Institute, Paris School of Economics, University College London) – will set out to evaluate if productivity is measured correctly and if its underlying mechanisms are sufficiently well understood. We will also study the effect of globalization and technological change on new production methods, and whether the current policy environment is conducive to the new productivity environment. Our team’s main responsibility will be to utilise the outstanding quality of Hungarian linked micro-data for a more refined understanding of productivity growth. The research will begin in January 2019. 

We were granted a permanent position

We are happy to announce that our team’s 5-year-long research activity and its final report was deemed ‘excellent’ by the Hungarian Academy of Science and the Council of Research Insitutes’ joint committee.
Consequently, our team was granted a permanent position in the Academy’s Institute of Economics. More about our project here.