Effects of Insurance on Child Labour: Ex-Ante and Ex-Post Behavioural Changes

In this paper we analyse possible effects of insurance on child labour. First, we develop a theoretical model that separates effects of insurance with and without a shock taking place. We then empirically test the hypotheses derived from the model by analysing the extension of a health insurance product in urban Hyderabad in Pakistan. Consistent with the theoretical model we develop in this paper, the reduction in child labour caused by the extension is largely due to an ex-ante feeling of protection as opposed to an ex-post shock-mitigation effect.     

The Role of Motivation and Leadership in Public Employees’ Job Preferences: Evidence from Two Discrete Choice Experiments

Two discreet choice experiments investigated how three styles of leadership (i.e., transformational, transactional, and ethical) and three job features aimed at activating different motivational forces (i.e., public service motivation, external regulation, and intrinsic motivation) simultaneously and independently affected the job preferences of a sample of public employees. Subjects displayed a strong preference for jobs that benefit more citizens, that are more interesting, and that require working under ethical leaders rather than unethical ones. Whereas the prospect of a 5% salary increase strengthened participants’ preferences for a given position, offering a 1% salary raise did not significantly change subjects’ job choices. Furthermore, participants did not appear to have any preference for working under a transformational leader rather than a transactional leader.