In Poland, rural households are encouraged to diversify their activities both in and outside the agricultural sector in order to stabilize and improve their income. However, relatively few households appear to do this. This paper addresses this issue, investigating the returns from the income...

Although foreign subsidiaries usually perform better than the average of the hosting economies, empirical literature has also established that the selection effect is statistically significant. In this paper we attempt to evaluate its economic relevance, using a unique dataset of annual...

Matched sampling is a methodology used to estimate treatment effects. A caliper mechanism is used to achieve better similarity among matched pairs. We investigate finite sample properties of matching with calipers and propose a slight modification to the existing mechanism. The simulation study...

A caliper mechanism is a common tool used to prevent from inexact matches. The existing literature discusses asymptotic properties of matching with caliper. In this simulation study we investigate properties in small and medium sized samples. We show that caliper causes a significant bias of the...

Discrimination is a significant issue in labour market economics across developed as well as developing countries. In this paper, we inquire the actual size of wage discrimination in the Republic of South Africa, accounting for large differences in individual endowments. We apply the...

Literature is not clear on the effect of FDI on the economic performance in hosting countries. The analysed effects include productivity, propensity to export, access to financial markets, etc. Although foreign subsidiaries usually perform better than the average of the hosting economies,...

Shadow employment may follow from two main labour market failures. In the first, official market labour taxation distortions make it ineffective for some agents to engage in registered employment due to a tax wedge, which makes the revenues from unofficial employment higher than the...

Unregistered employment poses two types of challenges to the researchers: (i) reliably evaluating the wage differential between formally and informally employed and (ii) accounting for the push and pull factors in general and the effects of business cycle in particular. We address the former...

This paper examines how including latent variables can benefit propensity score matching. A researcher can estimate, based on theoretical presumptions, the latent variable from the observed manifest variables and can use this estimate in propensity score matching. This paper demonstrates the...