Globalization and Public Policy (eBook)

David B. Audretsch is a Distinguished Professor and Ameritech Chair of Economic Development at Indiana University, where he is also serves as Director of the Institute for Development Strategies. He is an Honorary Professor of Industrial Economics and Entrepreneurship at the WHU-Otto Beisheim School of Management in Germany. In addition, he serves as a Visiting Professor at the King Saud University in Saudi Arabia, Honorary Professor at the Friedrich Schiller University of Jena in Germany, and is a Research Fellow of the Centre for Economic Policy Research in London. Audretsch’s research has focused on the links between entrepreneurship, government policy, innovation, economic development and global competitiveness. His research has been published in over 100 scholarly articles in leading academic journals. He is co-founder and co-editor of Small Business Economics. In 2008, he received an honorary doctorate degree from the University of Augsburg, and in September, 2010 he received an honorary doctorate degree from Jonkoeping University.Erik E. Lehmann is a Full Professor of Management and Organization at Augsburg University, Germany and Director of the Program Global Business Management (GBM). Together with Silvio Vismara he directs the CISAlpino Institute for Comparative Studies in Europe (CCSE). He serves as an associate editor of Small Business Economics: An Entrepreneurial Journal. His research has been published in leading academic journals such as European Finance Review (Review of Finance), Research Policy, Entrepreneurship Theory and Practice, Journal of Economic Behavior and Organization, Small Business Economics, Journal of Small Business Management, Review of Accounting and Finance and Journal of Technology Transfer. His most recent books include Entrepreneurship and Economic Growth by Oxford University Press in 2006, Technology Transfer in a Global Economy by Springer in 2013 and Corporate Governance in Small and Medium Sized Firms with Edward Elgar in 2011.Aileen Richardson is a graduate of Indiana University with a B.A in Political Science and Economics. She is currently a graduate student at Indiana University and Augsburg University under the supervision of Professor Dr. Erik Lehmann and Dr. David Audretsch. She is also a Research Fellow at Indiana University’s Institute for Development Strategies. Silvio Vismara (PhD) is an Associate Professor of Entrepreneurial Finance at the University of Bergamo, Italy. Together with Erik Lehmann, he directs the CISAlpino Institute for Comparative Studies in Europe (CCSE), a joint initiative with the University of Augsburg, in Germany. Silvio is associate editor of Small Business Economics, member oft he editorial review board of Entrepreneurship Theory and Practice and of Journal of Industrial and Business Economics. He is author of articles in journals such as Entrepreneurship Theory and Practice, Financial Management, Journal of Banking & Finance, Journal of Financial Markets, Corporate Governance An International Review, European Financial Management and Journal of Technology Transfer. His most recent books are Newcits – Investing in UCITS Compliant Hedge Funds and Handbook of Research on IPOs. He is scientific consultant for the Italian Stock Exchange and founder of Universoft, a spin-off from the University of Bergamo.

Contents 6
List of Contributors 8
Introduction 10
The Impact of Globalization on Income Distribution and Income Inequality 14
1 Introduction 14
2 Relevant Literature 15
3 How to Measure Income Distribution 16
3.1 Gini-Coefficient 17
3.2 Representation by Quintiles 18
3.3 Human Development Index (HDI) and Inequality-Adjusted Human Development Index (IHDI) 18
3.4 Rich/Poor (R/p) Ratio 10% 19
3.5 Rich/Poor (R/p) Ratio 20% 19
4 Analysis and Results 19
4.1 Tax Policy 20
4.1.1 Policy Solutions 24
4.1.2 Assessing Policy Solutions 25
4.2 Education Policy 26
4.2.1 Policy Solutions 30
4.2.2 Assessing Policy Solutions 31
4.3 Infrastructure 33
4.3.1 Policy Solutions 34
4.3.2 Assessing Policy Solutions 35
4.4 Immigration 35
4.4.1 Policy Solutions 37
4.4.2 Assessing Policy Solutions 38
4.5 Global Trade and Finance 39
4.5.1 Policy Solutions 40
4.5.2 Assessing Policy Solutions 41
5 Conclusions 41
References 42
The Gender Pay Gap 47
1 Introduction 47
2 Related Literature 49
3 The Gender Pay Gap Phenomenon and Its Causes 51
3.1 Discrimination in the Workplace 51
3.2 Wage Bargaining 51
3.3 Traditional Gender Roles, Parental Leave, and Work-Life Balance 52
4 The Role of Globalization 53
5 Current Policies 54
5.1 European Union 54
5.1.1 Public Sector 55
5.1.2 Private Sector 56
5.2 United States 57
5.3 Best Practices 58
5.3.1 Iceland 58
5.3.2 Finland 59
5.3.3 Norway 59
5.3.4 Sweden 60
5.4 Future Directions 61
6 Proposed Solutions 61
6.1 Public Sector 62
6.2 Private Sector 62
6.3 Nonprofit Sector 63
6.4 Future Partnerships 64
7 Conclusions 64
References 65
Crime and Security in Europe and the US 67
1 Introduction 67
2 Theoretic Background 68
3 Violent Crime 69
3.1 Immigration 71
3.2 Education 72
4 White-Collar Crime 73
5 Organized Crime 74
6 Security 76
7 Conclusion and Future Areas of Research 78
References 79
Recession and Unemployment: A Comparative Analysis of Germany and the United States 82
1 Introduction 82
2 Literature Review 84
3 Recession and the Types of Unemployment 85
4 Unemployment in the United States 85
4.1 Causes for Unemployment in the United States 85
4.2 The Effect of Unemployment on the American Economy 88
4.3 Strategies for Solving Unemployment in United States 88
5 Unemployment in Germany 89
5.1 Causes of Unemployment in Germany 89
5.2 The Effect of Unemployment on the German Economy 90
5.3 Strategies for Solving Unemployment in Germany 91
6 Relationship Between Unemployment and Health 93
7 Comparing the United States and Germany 93
7.1 Similarities and Differences Between Germany and the United States 94
7.2 The Role of Globalization on Unemployment 96
7.3 Some Possible Solutions to Solve the Unemployment Problem 96
8 Conclusion 97
References 98
A Cross Comparative Analysis of the U.S., German, and Italian Healthcare System 100
1 Introduction to the Policy and Value Comparison 100
2 A Review of the Literature 101
3 The History of Healthcare Systems: Four Basic Models 103
3.1 The Bismarck Model 103
3.2 The Beveridge Model 104
3.3 The National Health Insurance Model 104
3.4 The Out-of-Pocket-Model 104
4 Three Different Healthcare Systems 105
4.1 Some Facts and Figures 105
4.2 The German Healthcare System 105
4.2.1 The German Healthcare System on a Snap Shot 107
4.2.2 Policy Suggestions for the German Healthcare System 109
4.3 The U.S. Healthcare System 110
4.3.1 The U.S. Healthcare System on a Snap Shot 110
4.3.2 Policy Suggestions for the U.S. Healthcare System 112
4.4 The Italian Healthcare System 113
4.4.1 The Italian Healthcare System on a Snap Shot 113
4.4.2 Policy Recommendations for the Italian Healthcare System 113
4.5 Comparison of the German, U.S. and Italian Healthcare Systems 117
5 Effects of Globalization on Health 118
6 European Union Healthcare Plans and Future Policies 119
6.1 Historical and Current Overview of EU Healthcare Policies 119
6.2 Policy Suggestions for Future EU Healthcare Policies 121
7 U.S. and European Global Healthcare Policy Suggestions 122
8 Conclusion 123
References 124
The Demographic Change in Germany: Implications for the Pension Scheme 127
1 Introduction 127
2 Demographic Situation in Germany 128
2.1 Current Situation and Forecast 128
2.2 The Major Challenge and Its Causes 129
2.2.1 German Pension Insurance 129
2.2.2 The Major Challenge 131
2.2.3 Causes 132
2.2.4 The Introduction of the Modern Social Security 133
2.2.5 Change in Values 133
2.2.6 The German Reunification 133
2.2.7 Further Causes 133
3 Economic and Social Measures against the Demographic Change 134
3.1 Pension Reforms 134
3.2 Pension Packet 2014 135
3.3 Corporate Management 135
4 New Solutions and Their Feasibility 136
4.1 Attracting and Retaining Skilled Immigrants 136
4.2 Appropriate Family Support Policy 137
4.3 Revision in the Retirement Age 138
4.4 Reducing the Number of Pensions 139
4.5 Educating the Masses 139
5 Conclusion 140
References 140
US and German Regulations of CO2 Emissions from Passenger Cars 142
1 Introduction 142
1.1 Causes for Air Pollution 143
1.2 Consequences of Air Pollution 144
1.3 Countries Responsible for Air Pollution 144
2 Historical Evolvement and Existent Literature 146
2.1 How Did CO2 Emissions Become Such a Huge Problem? 146
2.2 National and International Reactions 147
2.3 Approaches of the Private Sector 149
3 The Problem of CO2 Regulations 152
3.1 Diverse Regulations and Standards Between Nations 152
3.2 Inability to Enforce Regulations on a Global Level 153
4 Strategies and Recommendations 154
5 Assessment and Limitations 156
6 Conclusions 158
References 159