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Conference Guide

15th IZA European Summer School in Labor Economics

April 23-29, 2012

Buch, Ammersee, Conference Center of Deutsche Post DHL

Organizer: Anne Gielen (IZA and Erasmus University Rotterdam) 15th IZA European Summer School in Labor Economics= April 23-29, 2012

= 1. Introduction

The IZA European Summer School in Labor Economics was created in 1998, as an annual event taking place at the conference center of Deutsche Post AG at the Ammersee Lake (near ) in , Germany. The Summer School is supported by the Centre for Economic Policy Research (CEPR), the European Economic Association (EEA), the European Association of Labor Economists (EALE), and the European Society for Population Economics (ESPE).

The objective of the Summer School is to bring together a large number of PhD students and senior lecturers to study new areas in labor economics. Students have the opportunity to present their work and discuss ideas with established researchers in a relaxed and open atmosphere. The School is open to advanced graduate students from European universities, or Europeans studying abroad, engaged in the preparation of a doctoral dissertation or approaching that stage.

Lecturers for the 15th IZA Summer School are Andrew Oswald (IZA and Warwick University) and Rainer Winkelmann (University of Zurich and IZA).

Contents

1. Introduction ...... 2

2. Institute for the Study of Labor (IZA): Aims and Scope ...... 3

3. Lecturers of the Summer School ...... 4

4. Scientific Program ...... 5

5. Course Outlines and Reading Lists ...... 6

6. Guidelines for Paper Presentations and Poster Sessions ...... 10

7. Conference Center ...... 11

a. Description ...... 11

b. How to Reach the Conference Center ...... 12

8. Travel Guidelines and Reimbursement ...... 14

9. Maps ...... 16

a. Travelling by Car ...... 16

b. Munich City ...... 17

c. Munich Airport Information ...... 17

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2. Institute for the Study of Labor (IZA): Aims and Scope

The Institute for the Study of Labor (IZA) analyzes the problems associated with the organization of labor in a rapidly developing globalized economic environment. Within a framework of seven research areas, IZA focuses on original and internationally competitive research activities in all fields of labor economics. In addition, IZA provides policy consultancy concerning crucial topics of labor market policy.

Main tasks of IZA

• To undertake original and internationally competitive research activities in all fields of labor economics • To promote the transfer of scientific findings into practical policy concepts • To disseminate research results and concepts to the interested public

Nature and contents of research activities at IZA

• Innovative, empirical research using econometric analysis of large individual data sets • A microeconomic research focus oriented towards the business sector • International comparative research in close cooperation with foreign scientific institutes and organizations • Examination, documentation and evaluation of new concepts in labor market policy and of employment initiatives in business (scientific advice and evaluation)

Personnel in areas of research, documentation, and information is supported by external economists within the framework of international joint research activities as well as by doctoral students taking part in the IZA research program. Both international and national research fellows work temporarily at IZA. A close cooperation with the University of Bonn has been established in order to give additional momentum to academic research and teaching.

P 3. Lecturers of the Summer School

Andrew Oswald (IZA and Warwick University)

Andrew Oswald is Visiting Research Fellow at IZA in Bonn (since May 2011). He is also a Professor of Economics at Warwick University and held permanent and visiting posts at Oxford, the London School of Economics, Princeton, Dartmouth College, Cornell and Harvard University. His doctorate, in 1980 from Oxford, was on the theory of trade union behaviour. He has also worked on wages, unemployment, entrepreneurship, job satisfaction, happiness, and mental health. Andrew’s current research lies at the borders between economics, psychology, epidemiology and medicine. He has received a number of awards for contributions to economics and social science, including Princeton University's Lester Prize for the book The Wage Curve published by MIT Press, and an ESRC Professorship in the U.K.

He joined IZA as a Research Fellow in October 1999.

Rainer Winkelmann (University of Zurich and IZA)

Rainer Winkelmann is Professor of Statistics and Empirical Economic Research at the University of Zurich. He studied economics at the Universities of Konstanz (Diplom Volkswirt, 1989), Paris, Washington University in St. Louis (M.A., 1990) and the University of Munich (Dr. oec. publ, 1993). From 1993-1995 he was Visiting Assistant Professor at Dartmouth College, New Hampshire and from 1995-1999, he was Senior Lecturer in Economics at the University of Canterbury, Christchurch, New Zealand. He has acted as an advisor to the New Zealand government on issues of immigration policy, the economic position of Maori and the effect of trade liberalization on income distribution. From December 1999 until October 2001, Rainer Winkelmann was Senior Research Associate at IZA, where he also served as Program Director for the IZA Research Program "The Future of Labor".

His research interests include empirical labor economics, in particular unemployment, migration, and income distribution; and econometric models for count and panel data. He has published a book "Econometric Analysis of Count Data", and numerous papers in edited books and national and international journals such as Economica, Econometric Reviews, Empirical Economics, Industrial and Labor Relations Review, Journal of Business and Economics Statistics, Journal of Econometrics, Journal of Economic Surveys, Journal of International Economics, Journal of Population Economics, and Weltwirtschaftliches Archiv.

Q 4. Scientific Program

- to be announced -

Program Start: Monday, April 23, 2012 at 3 pm Arrival during morning until 1:30 pm

End of Program: Saturday evening, April 28, departure Sunday April 29 after breakfast

Participants are required to stay for the entire duration of the Summer School.

R 5. Course Outlines and Reading Lists

A. Andrew Oswald (IZA and Warwick University)

"The Economics of Happiness and Health"

Lecture 1: The Microeconomic Foundations of Human Happiness

Lecture 2: Mental Health and the Biomarkers of Your Heart

Lecture 3: Easterlin’s Paradox and the Macroeconomics of Happiness

Lecture 4: Relative Comparisons and the Theory of Herd Behaviour

Lecture 5: Where Will Research Go in the Coming Century?

Reading List

References to the modern literature on the economics of happiness will be given out as the course proceeds, but a useful introduction, and one probably worth buying, is:

The Happiness Equation by N Powdthavee, Icon Books, London, 2010.

The classic reference on herd behaviour in mathematical biology, which builds on work by Francis Galton, and is a great read for economists, is:

Title: Geometry for the selfish herd Author(s): HAMILTON WD Source: JOURNAL OF THEORETICAL BIOLOGY Volume: 31 Issue: 2 Pages: 295-& DOI: 10.1016/0022-5193(71)90189-5 Published: 1971

Other reading if you have time:

Title: A simple model of herd behavior Author(s): BANERJEE AV Source: QUARTERLY JOURNAL OF ECONOMICS Volume: 107 Issue: 3 Pages: 797-817 DOI: 10.2307/2118364 Published: AUG 1992

Title: Inequality at work: The effect of peer salaries on job satisfaction Author(s): CARD D; MAS A; MORETTI E; SAEZ E. Source: NBER Working Paper 16396 Published: 2010

S Title: The spread of obesity in a large social network over 32 years Author(s): Christakis Nicholas A.; Fowler James H. Source: NEW ENGLAND JOURNAL OF MEDICINE Volume: 357 Pages: 370-379 DOI: 10.1056/NEJMsa066082 Published: JUL 2007

Title: Comparison-concave utility and following behaviour in social and economic settings Author(s): Clark AE; Oswald AJ Source: JOURNAL OF PUBLIC ECONOMICS Volume: 70 Issue: 1 Pages: 133-155 DOI: 10.1016/S0047-2727(98)00064-4 Published: OCT 1998

Title: Flocking is an effective anti-predation strategy in redshanks tringa-tetanus Author(s): CRESSWELL W Source: ANIMAL BEHAVIOUR Volume: 47 Issue: 2 Pages: 433-442 DOI: 10.1006/anbe.1994.1057 Published: FEB 1994

Title: Relative versus absolute income, joy of winning, and gender: Brain imaging evidence Author(s): Dohmen Thomas; Falk Armin; Fliessbach Klaus; et al. Source: JOURNAL OF PUBLIC ECONOMICS Volume: 95 Issue: 3-4 Special Issue: SI Pages: 279-285 DOI: 10.1016/j.jpubeco.2010.11.025 Published: APR 2011

Title: Social comparison affects reward-related brain activity in the human ventral striatum Author(s): Fliessbach K.; Weber B.; Trautner P.; Falk A. Source: SCIENCE Volume: 318 Issue: 5854 Pages: 1305-1308 DOI: 10.1126/science.1145876 Published: NOV 23 2007

Title: Neighbors as negatives: Relative earnings and well-being Author(s): Luttmer EFP Source: QUARTERLY JOURNAL OF ECONOMICS Volume: 120 Issue: 3 Pages: 963-1002 DOI: 10.1093/qje/120.3.963 Published: AUG 2005

Title: Herding in humans Author(s): Raafat Ramsey M.; Chater Nick; Frith Chris Source: TRENDS IN COGNITIVE SCIENCES Volume: 13 Issue: 10 Pages: 420-428 DOI: 10.1016/j.tics.2009.08.002 Published: OCT 2009

Title: Objective confirmation of subjective measures of human well-being: Evidence from the USA Author(s): Oswald Andrew J.; Wu Stephen Source: SCIENCE Volume: 327 Issue: 5965 Pages: 576-579 DOI: 10.1126/science.1180606 Published: JAN 29 2010

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B. Rainer Winkelmann (University of Zurich and IZA)

"Econometric Advances in Discrete Data Modeling, with Applications to Health and Well-being!"

Subjective outcomes in health and well-being research are sometimes counts (the GHQ score) and often discrete rating scales (health rating, life satisfaction). This course discusses econometric models for such outcomes and their respective strengths and weaknesses. The focus is on methods that actually have been used in recent applied work, rather than purely theoretical developments.

Lecture 1: Introduction Standard models, parameters of interest, Maximum Likelihood and Quasi-ML, Examples

Lecture 2: Rating scale models, parametric and semi-parametric Reporting function, Cardinality, Identification

Lecture 3: Generalizations of ordered response models Zero-inflation, generalized thresholds, latent class analysis

Lecture 4: Panel methods Random effects, Mundlak, fixed effects ordered logit

Lecture 5: Endogenous treatment effects, copulas

Reading List

Baetschmann, G., K. E. Staub and R. Winkelmann (2011) Consistent estimation of the fixed effects ordered logit model. University of Zurich Economics DP. No 4.

Boes, S. and R. Winkelmann (2010) The Effect of Income on General Life Satisfaction and Dissatisfaction, Social Indicators Research 95, 111–128.

Clark, A. et al. (2005) Heterogeneity in Reported Well-Being: Evidence from Twelve European Countries, Econmic Journal 115, C118–C132.

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Ferrer-i-Carbonell, A. and P. Frijters (2004) How Important is Methodology for the estimates of the determinants of Happiness?, Economic Journal, 114, 641-659.

Harris, M.N. and X. (2007) A zero-inflated ordered probit model, with an application to modelling tobacco consumption, Journal of Econometrics, 141, 1073-1099.

Luechinger, S., A. Stutzer and R. Winkelmann (2010) Self-selection models for public and private sector job satisfaction, Research in Labor Economics 30, 233–251, 2010.

Mayo, M.C. and A. van Soest (2011) The Fixed-Effects Zero-Inflated Poisson Model With An Application To Health Care Utilization, Tilburg CentEr Discussion Paper No. 2011-083.

Studer. R. and R. Winkelmann (2011) Specification and Estimation of Rating Scale Models - with an Application to the Determinants of Life Satisfaction. University of Zurich Economics DP. No 3. van Praag, Bernard and Ada Ferrer-i-Carbonell (2008) Happiness Quantified: A Satisfaction Calculus Approach, revised edition, Oxford: Oxford University Press

Winkelmann, L. and R. Winkelmann (1998) Why are the unemployed so unhappy? Evidence from panel data, Economica, 65, 1-16.

Winkelmann, R. (2012) Copula bivariate probit models: with an application to medical expenditures, Health Economics, forthcoming.

V 6. Guidelines for Paper Presentations and Poster Sessions

Oral Presentations

The time allocation for each paper is as follows: • 20 min are allocated to the presenter • 5 minutes are allocated to the discussant • 10 minutes are allocated to floor discussion • the chair of each session is responsible for time-keeping and is advised to be strict

Poster Presentations

• Posters should have 1m x 1m format, maximum 1,40 m high x 1,10 wide (39,4 x 39,4 inches, max. 55 inches high x 43 inches wide) and may be fixed to the poster panels or walls with sello tape or drawing pins available at the conference center. • There are no poster printing facilities at the conference center. Please make sure to prepare your poster beforehand.

Technical Equipment at the Conference Site

The meeting room is equipped with: • Presentation laptop • Beamer • Flip chart • Poster panels

General Information

• Copies of all papers will be provided at the meeting • PC work stations with internet access are provided at the conference center • Wireless LAN connection is available, for which you will receive an access code during check-in

If you have further questions on the format of the presentations, please contact:

Anne Gielen IZA GmbH - Institute for the Study of Labor Schaumburg-Lippe-Strasse 5-9 53113 Bonn, Germany Tel.: +49 (0)228 3894 204 Fax: +49 (0)228 3894 510 Email: [email protected]

NM 7. Conference Center Deutsche Post DHL

a. Description

The conference center is located in Buch, at the Ammersee lake, outside Munich. Lying between Munich and the Alps, the area offers a lot of cultural attractions ranging from Baroque art in out-of-the-way village churches to masterpieces of modern art in the museums of Munich. Being located directly at the lake, it also offers plenty of opportunities for leisure, walking and swimming.

The conference centre offers a large conference room, in addition to a number of smaller study rooms that are functional and technically up-to-date. Available equipment includes: presentation laptop, beamer, flipchart, whiteboard, poster panels, overhead projector and PC workstations. Wireless internet connection is available.

The rooms are all tastefully decorated and equipped with telephone, satellite TV and a workspace. Please note that accommodation is available for conference participants only. Being a pure business center and not a hotel, it is not possible to bring partners, children or other people to stay at the conference center or join the meeting, meals or other. Laundry and wake-up services are not available. You might want to bring an alarm clock if your mobile phone with wake-up function is not working abroad. Accommodation at the conference center can be offered during the exact conference dates only, private extensions are not possible.

Swimming pool, sauna and fitness equipment are available in the building which offer a counterbalance for body and soul. We recommend to bring swimming suits. Bathrobes are available for a small charge.

There is a house bar where you can meet in the evenings. Drinks have to be paid cash by the participants. Please make sure to have cash (Euro) available, as there is no cashpoint nearby. Credit cards are not accepted.

When the weather is good you can use the beautiful terrace with lake view to relax.

11 b. How to Reach the Conference Center

Address of the Conference Location: Managementzentrum Deutsche Post DHL Buch am Ammersee Breitbrunner Strasse 26 82266 Inning/Buch Germany Tel. +49-(0)8143-9220 Fax: +49-(0)8143-922-150

Public Transport

The closest station to the conference site is Herrsching , which is the last stop on the Munich transport line S8 (see below). From Herrsching station it is a 5 minutes drive to conference site. We will arrange for regular shuttles on the arrival day. Shuttle times will be communicated at a later stage.

S 8: Airport - Central Station - Herrsching and back (via Unterföhring)

The airport rail link/S-Bahn S8 goes from Munich Airport via central Munich (Ostbahnhof, Isartor, Marienplatz, Karlsplatz/Stachus, Hauptbahnhof (central station), Laim and Pasing) to Herrsching and back. At Ostbahnhof, Hauptbahnhof and Pasing passengers can transfer to mainline and regional train services.

Trip time to/from airport: Ostbahnhof 33 minutes Marienplatz 38 minutes Hauptbahnhof 41 minutes Pasing 50 minutes Herrsching 90 minutes

S 1: Airport to Central Munich and back (via Neufahrn)

The airport rail link S1 travels from Munich Airport to central Munich via Neufahrn, , Laim, Munich Hauptbahnhof (central station), Marienplatz to Ostbahnhof and back. At Hauptbahnhof and Ostbahnhof passengers can transfer to mainline and regional train services.

Trip time to/from airport Hauptbahnhof 45 minutes Marienplatz 48 minutes Ostbahnhof 53 minutes

Further information on the Munich transport network and actual train schedules can be found on the MVV website at www.mvv-muenchen.de (spelled with double "v").

12 Arrival by Car

(travel cost by car are not refunded by IZA)

Coming from Motorway A9 (Berlin,/Nürnberg/Nuremberg to München/Munich)

At junction 68/ Autobahnkreuz Neufahrn change from A9 onto A92 direction München- West, Stuttgart, Augsburg. Follow A92 for 13 km. At junction 1/ Autobahndreieck München-Feldmoching change onto A99, direction München-West, Stuttgart, Lindau, Augsburg Change at junction Autobahndreieck München Süd West from A99 onto the A96, direction Germering-Süd, Lindau, Memmingen. Follow the A96 for 20 km. Leave the motorway at junction "Inning am Ammersee" in direction B471 , Inning am Ammersee, Breitbrunn, Fürstenfeldbruck. Follow the signs towards "Herrsching/Breitbrunn" until you reach "Buch". Turn right and follow the signs to "Managementzentrum Deutsche Post DHL, Buch am Ammersee".

Coming from Motorway A8 Stuttgart / A7 Ulm

Change from A8 onto A7 at junction 65/ Autobahnkreuz Ulm, direction Lindau, Kempten. Follow the A7 for 54 km. At junction 128/ Autobahnkreuz Memmingen change onto A96 direction Munich. Pass Munich and continue A96 direction Lindau. Leave the motorway at junction "Inning am Ammersee" in direction B471 Herrsching am Ammersee, Inning am Ammersee, Breitbrunn, Fürstenfeldbruck. Pass "Inning" and follow the signs towards "Herrsching/Breitbrunn" until you reach "Buch". Turn right and follow the signs to "Managementzentrum Deutsche Post DHL, Buch am Ammersee".

For routes from other destinations, please check route finders, like www.map24.de.

13 8. Travel and Reimbursement Guidelines 2012 for IZA European Summer School Students

Please read the guidelines carefully as they affect your entitlement to reimbursement. Please be aware that due to changes, the rules for reimbursement might be different from the past.

1. General Remarks

Participants are required to stay during the whole Summer School.

Participants are asked to reconfirm with the event management all expenses which are not in accordance with the below listed regulations.

2. Travel Costs

IZA reimburses after participation for economy-class flights or second-class train voyage up to the following maximum amounts, which depend on the distance* between the home institution and the conference center at Ammersee.

< 500 km: 250 EUR *Direct distance (as the crow flies) based on latitude and 500-1000 km: 500 EUR longitude between between the two locations. >1000 km: 750 EUR

Transfer between airport/main station and hotel will be reimbursed if public transport was used. Taxi cost will not be refunded.

Arrival by car has to be notified before the event. If approved, IZA will reimburse € 0,15 per kilometer. We do not reimburse fees for the use of ferries, tunnels, highways, etc.

Please note: Full reimbursement is granted only if the following conditions are met: a) Your ticket must be booked within 10 days after you have received IZA’s invitation to attend. IZA reserves the right to cut reimbursement for late bookings. b) Travel to your destination must be direct or include only necessary stopovers due to flight connections. Specifically, travel dates need to clearly correspond to the Summer School dates. Stopovers which entail business or personal activities not directly relevant to the stated purpose of the trip will disqualify the flight from reimbursement.

3. Accommodation and Subsistence

Accommodation, all meals and (non-alcoholic) drinks during the meals are included in the conference program and are free. Drinks in the bar of the conference center and from the mini-bar in the room have to be paid cash by the participants. IZA will not reimburse for this and other subsistence expenses. Please make sure to have European Currency (Euro) available to pay for your private expenses.

4. Other Costs

If previously arranged, IZA refunds further costs related to participation which are not listed above (e.g. visa fees).

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5. Handling

To simplify the reimbursement process, we ask you to fill the reimbursement form provided during the Summer School and return it after the event to:

Verena Pfeifer, IZA GmbH, P.O. Box 7240, 53072 Bonn, Germany.

To ensure a smooth processing, please submit your expense claim form within 6 weeks after the event.

Please note that only original receipts will be accepted for reimbursement. Please attach all boarding passes, remaining ticket receipts and the flight invoice showing the date of booking (see 2a above). The payment will be transferred to your bank account within 90 days after receipt of your expense claim form by regular mail. Please check with your bank in case you do not know all requested details of your account. We do not provide you with cash payments during your stay.

15 = 9. Maps

a. Traveling by Car = =

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16 = = b. Munich City Map

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c. Munich Airport

Airport information, including terminal maps, etc. can be found at www.munich-airport.de

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