Category Archives: Discussion Paper

October 19, 2019. New GLO Discussion Paper on ‘30,000 minimum wages: The economic effects of collective bargaining extensions’

A new GLO Discussion Paper finds for Portugal that while wages of continuing workers were increasing following an extension, formal employment and wage bills in the relevant sectors were falling.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 413, 2019

30,000 minimum wages: The economic effects of collective bargaining extensions –  Download PDF
by
Martins, Pedro S.

GLO Fellow Pedro S. Martins

Author Abstract: Many governments extend the coverage of collective agreements to workers and employers that were not involved in their bargaining. These extensions may address coordination issues but may also distort competition by imposing sector-specific minimum wages and other work conditions that are not suitable for some firms and workers. In this paper, we analyze the impact of such extensions along several economic margins. Drawing on worker- and firm-level monthly data for Portugal, a country where extensions have been widespread, and the scattered timing of the extensions, we find that, while continuing workers experience wage increases following an extension, formal employment and wage bills in the relevant sectors fall, on average, by 2%. These results increase by about 25% across small firms and are driven by reduced hiring. In contrast, the employment and wage bills of independent contractors, who are not subject to labor law or collective bargaining, increases by over 1% following an extension.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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October 18, 2019. New GLO Discussion Paper on ‘Does Increased Teacher Accountability Decrease Leniency in Grading?’

A new GLO Discussion Paper assesses the effects of introducing centralized scoring standards into schools with higher and lower quality peer groups.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 412, 2019

Does Increased Teacher Accountability Decrease Leniency in Grading? –  Download PDF
by
Puhani, Patrick A. & Yang, Philip

GLO Fellow Patrick A. Puhani

Author Abstract: Because accountability may improve the comparability that is compromised by lenient grading, we compare exit exam outcomes in the same schools before and after a policy change that increased teacher accountability by anchoring grading scales. In particular, using a large administrative dataset of 364,445 exit exam outcomes for 72,889 students, we assess the effect of introducing centralized scoring standards into schools with higher and lower quality peer groups. We find that implementation of these standards increases scoring differences between the two school types by about 25 percent.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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October 17, 2019. New GLO Discussion Paper on ‘Return, Circular, and Onward Migration Decisions in a Knowledge Society’

A new GLO Discussion Paper provides a state-of-the-art literature review about research that aims to explain the return, repeat, circular and onward migration of the highly-skilled migrants around the world.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 411, 2019

Return, Circular, and Onward Migration Decisions in a Knowledge Society –  Download PDF
by
Constant, Amelie F.

GLO Fellow Amelie Constant

Author Abstract: This chapter provides a state-of-the-art literature review about research that aims to explain the return, repeat, circular and onward migration of the highly-skilled migrants around the world. After it describes the status quo in the knowledge economy and the international race for talent, it presents the relevant theories and concepts of migration in the social sciences and how these theories accommodate the phenomena of return, repeat and onward migration. A special section is devoted to selection. The chapter then summarizes, evaluates, and juxtaposes existing empirical evidence related to theoretical predictions. Observables such as education, income, gender and home country as well as unobservables such as ability, social capital and negotiating skills play a strong role in influencing return, repeat and onward migration decisions. Yet, there is no consensus on the direction of the effect. The chapter discusses shortcomings and limitations along with policy lessons. It concludes by highlighting holes in the literature and the need for better data.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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October 11, 2019. New GLO Discussion Paper on ‘Gender identity minorities and workplace legislation’

A new GLO Discussion Paper reviews gender identity and workplace legislation at national and international levels across Europe.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 410, 2019

Gender identity minorities and workplace legislation in Europe –  Download PDF
by Sidiropoulou, Katerina

GLO Fellow Katerina Sidiropoulou

Author Abstract: It is a fact that transgender people experience severe discrimination in various forms not only in their everyday lives but also in their working lives, especially when transitioning. It seems that Europe is slowly changing over the years as there are constant calls to tackle this complex issue by considering the inclusion of a third gender option, the abolition of any abusive practices, recommendations for legal redress in cases of violation, and a more transparent and self-determined legal recognition procedure. There are national laws which offer protection on the basis of gender identity at national and international levels. Nevertheless, there is still a lack of uniformity due to a number of unresolved matters such as uncertainty about who is covered, whether gender identity should be covered as a protected ground, what is required to gain a legal change of name and gender marker in official documents, who is responsible for authorization and uncertainty over the stages, nature and duration of the actual procedure. Fewer distressed transgender employees and transphobic incidents are observed when there is greater social acceptability, organizational effort and national intervention. Research and collective actions by movements, political leaders, academics, medical experts and non-governmental organizations are further required to minimize societal and employment exclusions of transgender people.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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October 9, 2019. New GLO Discussion Paper on ‘Intergenerational Income Mobility and Income Taxation’

A new GLO Discussion Paper studies through counterfactual analysis how income taxation affects the correlation of income across generations. Introducing a flat tax regime reduces the correlation in comparison to no taxes, which is enforced through child benefits and a progressive scheme.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 409, 2019

Intergenerational Income Mobility and Income Taxation –  Download PDF
by
Kurnaz, Musab & Soytas, Mehmet A

GLO Fellow Mehmet A. Soytas

Author Abstract: We study the impact of income taxation on intergenerational income correlation. We estimate a life cycle dynastic model and conduct counterfactual analysis to observe the effects of various tax regimes. Compared to a no tax environment, a flat tax regime reduces the correlation only by one percentage points. If the flat tax regime provides child benefits, the correlation additionally declines by four percentage points. Finally, if the taxes are progressive, the reduction, which is due to the increase in the fertility rate (quantity) and the decrease in the educational outcome of children (quality), is highly significant (seven percentage points).

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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October 7, 2019. GLO Discussion Paper of the Month September: Are asylum seekers more likely to work with more inclusive labor market access regulations?

The GLO Discussion Paper of the Month of September finds that inclusive labor market access regulations substantially increase the employment chances of asylum seekers, in particular if the language distance is short.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS, EconPapers)Complete list of all GLO DPs downloadable for free.

GLO Discussion Paper of the Month: September

GLO Discussion Paper No. 396 , 2019

Are asylum seekers more likely to work with more inclusive labor market access regulations? 
by Slotwinski, Michaela & Stutzer, Alois & Uhlig, Roman 

GLO Fellows  Slotwinski, Michaela & Stutzer, Alois

Author Abstract: In the face of recent refugee migration, early integration of asylum seekers into the labor market has been proposed as an important mechanism for easing their economic and social lot in the short as well as in the long term. However, little is known about the policies that foster or hamper their participation in the labor market, in particular during the important initial period of their stay in the host country. In order to evaluate whether inclusive labor market policies increase the labor market participation of asylum seekers, we exploit the variation in asylum policies in Swiss cantons to which asylum seekers are as good as randomly allocated. During our study period from 2011 to 2014, the employment rate among asylum seekers varied between 0% and 30.2% across cantons. Our results indicate that labor market access regulations are responsible for a substantial proportion of these differences, in which an inclusive regime increases participation by 11 percentage points. The marginal effects are larger for asylum seekers who speak a language that is linguistically close to the one in their host canton.

GLO Discussion Papers of September 2019

408 The quasi-market of employment services in Italy –  Download PDF
by 
Pastore, Francesco

407 Depression in the House: The Effects of Household Air Pollution from Solid Fuel Use in China –  Download PDF
by 
Liu, Yan & Chen, Xi & Yan, Zhijun

406 Assessing the Legal Value Added of Collective Bargaining Agreements –  Download PDF
by 
Martins, Pedro S. & Saraiva, Joana

405 The Arab Inequality Puzzle: The Role of Income Sources in Egypt and Tunisia –  Download PDF
by 
Krafft, Caroline & Davis, Elizabeth E.

404 Transition, height and well-being –  Download PDF
by 
Adserà, Alicia & Dalla Pozza, Francesca & Guriev, Sergei & Kleine-Rueschkamp, Lukas & Nikolova, Elena 

403 Career or flexible work arrangements? Gender differences in self-employment in a young market economy –  Download PDF
by Buttler, Dominik & Sierminska, Eva

402 Can Women’s Self-Help Groups Contribute to Sustainable Development? Evidence of Capability Changes from Northern India –  Download PDF
by Anand, Paul & Saxena, Swati & Gonzalez, Rolando & Dang, Hai-Anh H.

401 Is the future of work childless? Self-employment and fertility –  Download PDF
by Gonçalves, Judite & Martins, Pedro S.

400 Do Workers Benefit from Resource Booms in Their Home State? Evidence from the Fracking Era –  Download PDF
by Winters, John V. & Cai, Zhengyu & Maguire, Karen & Sengupta, Shruti

399 Delayed graduation and university dropout: A review of theoretical approaches –  Download PDF
by Aina, Carmen & Baici, Eliana & Casalone, Giorgia & Pastore, Francesco

398 Education-occupation mismatch of migrants in the Italian labour market: the effect of social networks –  Download PDF
by Van Wolleghem, Pierre Georges & De Angelis, Marina & Scicchitano, Sergio

397 Testing the employment and skill impact of new technologies: A survey and some methodological issues – Download PDF
by Barbieri, Laura & Mussida, Chiara & Piva, Mariacristina & Vivarelli, Marco

396 Are asylum seekers more likely to work with more inclusive labor market access regulations?  Download PDF
by Slotwinski, Michaela & Stutzer, Alois & Uhlig, Roman

395 Parental Migration, Investment in Children, and Children’s Non-cognitive Development: Evidence from Rural China – Download PDF
by Jiang, Hanchen & Yang, Xi

394Impact of Early Childcare on Immigrant Children’s Educational Performance – Download PDF
by Corazzini, Luca & Meschi, Elena & Pavese, Caterina

393 The gender wage gap among PhD holders: an empirical examination based on Italian data  Download PDF
by Alfano, Vincenzo & Cicatiello, Lorenzo & Gaeta, Giuseppe Lucio & Pinto, Mauro

392 The Impact of Family Size and Sibling Structure on the Great Mexico-U.S. Migration – Download PDF
by Bratti, Massimiliano & Fiore, Simona & Mendola, Mariapia

GLO DP Team
Senior Editors: Matloob Piracha (University of Kent) & GLO; Klaus F. Zimmermann (UNU-MERIT, Maastricht University and Bonn University).
Managing Editor: Magdalena Ulceluse, University of GroningenDP@glabor.org  

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October 6, 2019. New GLO Discussion Paper on ‘The quasi-market of employment services in Italy’

A new GLO Discussion Paper studies the shortcomings and merits of the first experiment of establishing a quasi-market in the provision of employment services.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 408, 2019

The quasi-market of employment services in Italy –  Download PDF
by
Pastore, Francesco

GLO Fellow Francesco Pastore

Author Abstract: This paper aims to study the shortcomings and merits of the first experiment of quasi-market in the provision of employment services: the Lombardy DUL (Dote Unica Lavoro). This system, which has inspired the 2015 national reform within the Jobs Act, has reactivated and revitalized the sector by providing important job opportunities to jobless workers. The system has the typical problems of quasi-markets in the provision of public services (lion’s share of private organizations; cherry picking; gaming). However, different expedients are devised in the program to minimize these shortcomings. The empirical analysis suggest that such phenomena if existent are at a physiological level. Analysis of the determinants of completing successfully the program provides non-trivial results as to, among others, the role organizations of different ownership type and of services provided.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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October 5, 2019. New GLO Discussion Paper on ‘Depression in the House: The Effects of Household Air Pollution from Solid Fuel Use in China’

A new GLO Discussion Paper documents evidence on the impact of household air pollution on mental health in China.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 407, 2019

Depression in the House: The Effects of Household Air Pollution from Solid Fuel Use in China –  Download PDF
by
Liu, Yan & Chen, Xi & Yan, Zhijun

GLO Fellow Xi Chen

Author Abstract: While adverse health effects of ambient air pollution have been well documented, there is scarce evidence on the impact of household air pollution (HAP) on mental health. We investigated the causal link between HAP exposure from the use of solid fuel on depressive symptoms using a nationally representative dataset of middle-aged and older population in China. Employing the propensity match score method (PSM), matching and adjusting for potential confounders, we found significantly higher Center for Epidemiological Studies Depression Scale (CES-D) score and risk of depressive symptoms among solid fuel users than clean fuel users. These associations were especially stronger for older females who were less educated, of lower income, of higher body mass index, or had chronic diseases.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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October 4, 2019. New GLO Discussion Paper on ‘Assessing the Legal Value Added of Collective Bargaining Agreements’

A new GLO Discussion Paper finds that collective bargaining in Portugal has a relatively small role as a source of effective labor law.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 406, 2019

Assessing the Legal Value Added of Collective Bargaining Agreements –  Download PDF
by Martins, Pedro S. & Saraiva, Joana

GLO Fellow Pedro Martins

Author Abstract: How much value does collective bargaining add to the working conditions already established in general labour law? In this paper we propose a methodology to address this question: we compare the specific contents of collective agreements (except minimum wages) to their equivalent norms set by base law. We illustrate this approach by analysing in detail about 400 norms from six collective agreements in Portugal and then comparing them to the country’s Labour Code. We find that as many as 62% of those collective bargaining norms are exactly or virtually equal to the Labour Code; only 25% (an average of 16 norms per convention) are more favourable for the worker; and 12% (8) are more favourable for the employer. We conclude that collective bargaining in Portugal has a relatively small role as a source of effective labour law. We also present several potential explanations for our findings, including the wide range of base law, which may reduce the negotiating space of bargaining.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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October 3, 2019. New GLO Discussion Paper on ‘The Arab Inequality Puzzle’

A new GLO Discussion Paper reveals that based on standard measures, inequality in Egypt and Tunisia is not unusually high. This is qualified exploring a new dimension decomposing inequality by income sources.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

The Arab Inequality Puzzle: The Role of Income Sources in Egypt and Tunisia –  Download PDF
by Krafft, Caroline & Davis, Elizabeth E.

GLO Discussion Paper No. 405, 2019

GLO Fellow Caroline Krafft

Author Abstract: Egypt and Tunisia are perceived to have high levels of inequality, yet based on standard measures, inequality in these two countries is not unusually high. In this study we explore a new dimension of inequality in Egypt and Tunisia by using a more complete measure of income and decomposing inequality by income sources (factor components). We find that higher-income households have more income sources than lower-income ones. Informal wage work and earnings from household enterprises are more common in Egypt than Tunisia, while formal wage work, pensions, and social assistance are more common in Tunisia. Social assistance does little to offset income inequality in either country. Enterprise earnings (in Egypt) and agricultural earnings (in Tunisia) as well as rent and other capital income in both countries play a large role in inequality. High inequality in these non-wage income sources may help explain why inequality is perceived to be high.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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October 2, 2019. New GLO Discussion Paper on ‘Transition, height and well-being’

A new GLO Discussion Paper finds that cohorts born around the start of transition are shorter than their older or younger peers. While the transition process has been a traumatic experience, its negative impact has largely been overcome.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 404, 2019

Transition, height and well-being –  Download PDF
by Adserà, Alicia & Dalla Pozza, Francesca & Guriev, Sergei & Kleine-Rueschkamp, Lukas & Nikolova, Elena 

GLO Fellows Sergei Guriev & Elena Nikolova

Author Abstract: Using newly available data, we re-evaluate the impact of transition from plan to market on objective and subjective well-being. We find clear evidence of the high social cost of early transition reforms: cohorts born around the start of transition are shorter than their older or younger peers. The difference in height suggests that the first years of reform were accompanied by major deprivation. We provide suggestive evidence on the importance of three mechanisms which partially explain these results: the decline of GDP per capita, the deterioration of healthcare systems, and food scarcity. On the bright side, we find that cohorts that experienced transition in their infancy are now better educated and more satisfied with their lives than their counterparts. Taken together, our results imply that the transition process has been a traumatic experience, but that its negative impact has largely been overcome.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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September 29, 2019. New GLO Discussion Paper on ‘Career or flexible work arrangements? Gender differences in self-employment in a young market economy’

A new GLO Discussion Paper reveals that in Poland women find independence at work and for those in professional occupations a job matching their competences as a desirable job attribute, while for men the lack of stress, a good salary and independence is key. Financial constraints strongly determine the entry into self-employment.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 403, 2019

Career or flexible work arrangements? Gender differences in self-employment in a young market economy –  Download PDF
by Buttler, Dominik & Sierminska, Eva

GLO Fellow Eva Sierminska

Author Abstract: We examine supply-side determinants of transition from the wage and salary sector to selfemployment of women and men living Poland. The empirical analysis is made possible due to a unique and under explored longitudinal survey — Social Diagnosis – that contains rare indicators such as job preferences and work events. The empirical results in the 2007-2015 period indicate that women and men transitioning into self-employment are differently motivated. In terms of job attributes, women find independence at work and for those in professional occupations a job matching their competences as a desirable job attribute, while for men the lack of stress, a good salary and independence is key. The analysis of work events and its influence on selfemployment weakly confirms the glass-ceiling hypothesis. In line with other research, our analysis indicates that financial constraints strongly determine the entry into self-employment. A key human capital determinant is past entrepreneurial experience indicating a slow, cautious transition process into self-employment.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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September 28, 2019. New GLO Discussion Paper on ‘Can Women’s Self-Help Groups Contribute to Sustainable Development? Evidence of Capability Changes from Northern India’

A new GLO Discussion Paper finds that a women’s self-help group program in India has contributed to sustainable development through improvements in the quality of life.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 402, 2019

Can Women’s Self-Help Groups Contribute to Sustainable Development? Evidence of Capability Changes from Northern India –  Download PDF
by Anand, Paul & Saxena, Swati & Gonzalez, Rolando & Dang, Hai-Anh H.

GLO Fellows Hai-Anh Dang

Author Abstract: This paper investigates a women’s self-help group program with more than 1.5 million participants in one of the poorest rural areas of Northern India. The program has four streams of activity in micro-savings, agricultural enterprise training, health and nutrition education, and political participation. The paper considers whether there is any evidence that program membership is associated with quality of life improvement. Using new data on a variety of self-reported capability indicators from members and non-members, the paper estimates propensity score matching models and reports evidence of differences in some dimensions as well as significant benefits to those from the most disadvantaged groups—scheduled castes and tribes. The paper considers robustness and concludes that for some dimensions, there is evidence that the program has contributed to sustainable development through improvements in the quality of life.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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September 27, 2019. New GLO Discussion Paper on ‘Is the future of work childless? Self-employment and fertility’

Does the growth of self-employment and in particular gig work among females explain part of the observed declining fertility rates? A new GLO Discussion Paper finds for Portugal no statistically significant differences in fertility between employees and self-employed women.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 401, 2019

Is the future of work childless? Self-employment and fertility –  Download PDF
by Gonçalves, Judite & Martins, Pedro S.

GLO Fellow Pedro Martins

Author Abstract: The growth of self-employment and in particular gig work may explain part of the declining fertility rates observed in many countries. This study examines this question drawing on longitudinal data to compare women’s fertility, proxied by maternity leave uptake, when self-employed or wage workers. It considers the case of Portugal, which allows to focus on structural aspects of work types, as fertility-related social protection there does not discriminate between self-employment and wage work. Results indicate that there are no statistically significant differences in fertility between employees and self-employed women. These findings highlight the importance of social protection for the self-employed, at least as far as their fertility is concerned.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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September 26, 2019. New GLO Discussion Paper on ‘Do Workers Benefit from Resource Booms in Their Home State? Evidence from the Fracking Era’

A new GLO Discussion Paper finds that the fracking innovations who had revolutionized the United States oil and gas industry and facilitated a boom in energy production were responsible for positive effects on the labor markets, in particular outside the oil and gas industry.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 400, 2019

Do Workers Benefit from Resource Booms in Their Home State? Evidence from the Fracking Era –  Download PDF
by Winters, John V. & Cai, Zhengyu & Maguire, Karen & Sengupta, Shruti

GLO Fellows John Winters & Zhengyu Cai

Author Abstract: Fracking innovations revolutionized the United States oil and gas industry and facilitated a boom in energy production in states with oil and gas resources. This paper examines effects of oil and gas booms within a state on individual employment and earnings. To account for endogenous migration decisions, we instrument for oil and gas production in workers’ state of residence via the predicted percent of oil and gas employment in their state of birth. We find statistically significant and economically meaningful positive effects. The bulk of the effects accrue to workers employed outside the oil and gas industry indicating sizable spillovers.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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September 25, 2019. New GLO Discussion Paper on ‘Delayed graduation and university dropouts’

A new GLO Discussion Paper reviews the economic literature to understand delayed graduations and university dropouts.

The Global Labor Organization (GLO) is an independent, non-partisan and non- governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 399, 2019

Delayed graduation and university dropout: A review of theoretical approaches –  Download PDF
by Aina, Carmen & Baici, Eliana & Casalone, Giorgia & Pastore, Francesco

GLO Fellow Francesco Pastore

Author Abstract: This paper surveys the theoretical approaches used in the literature to study the phenomenon of delayed graduation and university dropout. The classical human capital model does not contemplate failure, which the amended human capital model does. Delayed graduation and university dropout are two stages of the same decision repeated over the years to step aside or leave when the net returns to education expected ex ante are negative. Failure can also be taken as a signal of the real skills of individuals who do not succeed to gain a higher level of education. The job search approach underlines the role of positive/negative local labor market conditions as a factor able to explain choices of investment in human capital. Within the bargaining approach, the decision to delay graduation or dropout from university is related to bargaining within the family between parents and children: the former give their children better consumption opportunities in return for their presence at home. Although the amended human capital model is certainly the most compelling one, the other approaches help framing factors which are neglected in the human capital model, forming a well-structured body of knowledge to better understand the phenomenon under scrutiny, while also suggesting a set of policy tools to better control it.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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September 24, 2019. New GLO Discussion Paper on ‘Education-occupation mismatch of migrants: the effect of social networks’

A new GLO Discussion Paper studies for Italy how over-education affects migrants and it evaluates the role informal networks play in producing it. Migrants are more over-educated than natives, but the role of networks is equally relevant for both ethnic groups.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 398, 2019

Education-occupation mismatch of migrants in the Italian labour market: the effect of social networks –  Download PDF
by Van Wolleghem, Pierre Georges & De Angelis, Marina & Scicchitano, Sergio

GLO Fellow Sergio Scicchitano

Author Abstract: Whilst migration has become a structural feature of most European countries, the integration of foreigners in the labour market continues to raise concerns. Evidence across countries shows that migrants are more often over-educated than natives. Over the last years, scholarship has intended to capture the effect of informal networks on migrants’ over-education. Interestingly, no study has looked into the Italian case, yet a country for which the effect of networks on education-occupation mismatch is well documented. This article has two objectives: it assesses the extent to which over-education affects migrants and it evaluates the role informal networks play in producing it. We find that foreigners are more over-educated than natives but that the role of networks is consistent across the two groups. Empirical evidence is drawn from the application of quantitative and counter-factual methods to PLUS 2018 – Participation, Labour, Unemployment Survey.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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September 23, 2019. New GLO Discussion Paper on ‘Testing the employment and skill impact of new technologies’

A new GLO Discussion Paper providing an updated picture of main empirical evidence on the relationship between new technologies and employment.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 397, 2019

Testing the employment and skill impact of new technologies: A survey and some methodological issues – Download PDF
by Barbieri, Laura & Mussida, Chiara & Piva, Mariacristina & Vivarelli, Marco

GLO Fellows Mariacristina Piva & Marco Vivarelli

Author Abstract: The present technological revolution, characterized by the pervasive and growing presence of robots, automation, Artificial Intelligence and machine learning, is going to transform societies and economic systems. However, this is not the first technological revolution humankind has been facing, but it is probably the very first one with such an accelerated diffusion pace involving all the industrial sectors. Studying its mechanisms and consequences (will the world turn into a jobless society or not?), mainly considering the labor market dynamics, is a crucial matter. This paper aims at providing an updated picture of main empirical evidence on the relationship between new technologies and employment both in terms of overall consequences on the number of employees, tasks required, and wage/inequality effect.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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September 20, 2019. New GLO Discussion Paper on ‘Are asylum seekers more likely to work with more inclusive labor market access regulations?’

A new GLO Discussion Paper finds for Switzerland that inclusive labor market policies increase the labor market participation of asylum seekers.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 396, 2019

Are asylum seekers more likely to work with more inclusive labor market access regulations?  Download PDF
by Slotwinski, Michaela & Stutzer, Alois & Uhlig, Roman

GLO Fellows Michaela Slotwinski & Alois Stutzer

Author Abstract: In the face of recent refugee migration, early integration of asylum seekers into the labor market has been proposed as an important mechanism for easing their economic and social lot in the short as well as in the long term. However, little is known about the policies that foster or hamper their participation in the labor market, in particular during the important initial period of their stay in the host country. In order to evaluate whether inclusive labor market policies increase the labor market participation of asylum seekers, we exploit the variation in asylum policies in Swiss cantons to which asylum seekers are as good as randomly allocated. During our study period from 2011 to 2014, the employment rate among asylum seekers varied between 0% and 30.2% across cantons. Our results indicate that labor market access regulations are responsible for a substantial proportion of these differences, in which an inclusive regime increases participation by 11 percentage points. The marginal effects are larger for asylum seekers who speak a language that is linguistically close to the one in their host canton.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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September 12, 2019. New GLO Discussion Paper on ‘Parental Migration, Investment in Children, and Children’s Non-cognitive Development: Evidence from Rural China’

A new GLO Discussion Paper finds that parental migration has a significant negative effect on children’s non-cognitive development.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 395, 2019

Parental Migration, Investment in Children, and Children’s Non-cognitive Development: Evidence from Rural China – Download PDF
by Jiang, Hanchen & Yang, Xi

GLO Affiliate Hanchen Jiang

Author Abstract: Many children worldwide are left behind by parents who are migrating for work. While previous literature has studied the effect of parental migration on children’s educational outcomes and cognitive achievements, this study focuses on how parental migration affects children’s non-cognitive development. We use longitudinal data of children in rural China and adopt labor market conditions in destination provinces as instrumental variables for parental endogenous migration choice. We find that parental migration has a significant negative effect on children’s non-cognitive development. Differentiating inter- and intra-provincial migrations suggests that the negative effect of parental migration is mainly driven by inter-provincial migrations. We test four different mechanisms of how parental migration affects child development including parental financial inputs, parental time inputs, household bargaining, and children’s own time input. Our results provide insights into the relative importance of different mechanisms in determining the effect of parental migration on children’s non-cognitive skill formation.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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September 11,2019. GLO Discussion Paper of the Month August: Income Inequality and the Size of Government

The GLO Discussion Paper of the Month of August finds that government redistribution through expenditures is a useful tool capable of reducing net income inequality, and even more effectively than has been predicted by previous studies.   

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS, EconPapers)Complete list of all GLO DPs downloadable for free.

GLO Discussion Paper of the Month: August

GLO Discussion Paper No. 381, 2019

Income Inequality and the Size of Government: A Causal Analysis – Download PDF
by Guzi, Martin & Kahanec, Martin  

GLO Fellows Martin Guzi & Martin Kahanec 

Author Abstract:  Expansion of the public sector and redistributive policies may reduce income inequality, but formal tests suffer from the problem of endogeneity of government size with respect to the distribution of income. Studying 30 European countries over the period 2004-2015, we apply instrumental variable estimation techniques to identify a causal relationship between income inequality and government size, measured as the government expenditure share in GDP. Using a novel instrument – the number of political parties in the ruling coalition – we find that accounting for the possible endogeneity of government size increases the magnitude of the estimated negative effects. Our findings thus suggest that much of the literature underestimates the true role of the government in attenuating income inequality. The estimated relationship between income inequality and government size persists in a series of robustness checks.

GLO Discussion Papers of August 2019

391 Turkish University Students’ Self-Perceptions of Aging: An Analysis Over Socio-Economic Dimensions – Download PDF
by Yumurtaci, Aynur & Bagis, Bilal

390 The Impact of Exposure to Missionaries on the English Language Proficiency and Earnings of Immigrants in the USA – Download PDF
by Larsen, Nicholas & Chiswick, Barry R.

389 On the road to integration? Immigrant’s demand for informal (& formal) education – Download PDF
by Coniglio, Nicola D. & Hoxhaj, Rezart & Jayet, Hubert

388 Divorce among European and Mexican Immigrants in the U.S – Download PDF
by Chiswick, Barry R. & Houseworth, Christina A

387 A Simple Solution to the Problem of Independence of Irrelevant Alternatives in Choo and Siow Marriage Market Model  Download PDF
by Gutierrez, Federico H.

386 The diversity of household assets holdings in the United States in 2007 and 2009: Measurement and determinants – Download PDF
by Sierminska, Eva M. & Silber, Jacques

385 The Impact of BMI on Mental Health: Further Evidence from Genetic Markers – Download PDF
by Amin, Vikesh & Flores, Carlos A. & Flores-Lagunes, Alfonso

384 Smartphone Use and Academic Performance: Correlation or Causal Relationship? – Download PDF
by Baert, Stijn & Vujić, Sunčica & Amez, Simon & Claeskens, Matteo & Daman, Thomas & Maeckelberghe, Arno & Omey, Eddy & De Marez, Lieven

383 The long-term effect of migration on economic inequality between EU Member States – Download PDF
by Ulceluse, Magdalena

382 Extreme Temperature and Extreme Violence across Age and Gender: Evidence from Russia  Download PDF
by Popova, Olga & Otrachshenko, Vladimir & Tavares, José

381 Income Inequality and the Size of Government: A Causal Analysis – Download PDF
by Guzi, Martin & Kahanec, Martin

380 The Yen Exchange Rate and the Hollowing Out of the Japanese Industry – Download PDF
by Belke, Ansgar & Volz, Ulrich

379 The effectiveness of restrictive immigration policies: the case of transitional arrangements  Download PDF
by Ulceluse, Magdalena & Kahanec, Martin

378 Foreign aid, bilateral asylum immigration and development – Download PDF
by Murat, Marina

377 Interest Rate Hysteresis in Macroeconomic Investment under Uncertainty – Download PDF
by Belke, Ansgar & Göcke, Matthias

376 Skill Gap, Mismatch, and the Dynamics of Italian Companies’ Productivity  Download PDF
by Fanti, Lucrezia & Guarascio, Dario & Tubiana, Matteo

375 Migration. Comparing political and cultural visions – Download PDF
by Bruni, Michele & Catani, Mario

374 Interest Rate Bands of Inaction and Play-Hysteresis in Domestic Investment – Evidence for the Euro Area – Download PDF
by Belke, Ansgar & Frenzel Baudisch, Coletta & Göcke, Matthias

373 Gender division of household labor: How does culture operate?  Download PDF
by Marcén, Miriam & Morales, Marina

372 Labor market policy and subjective well-being during the Great Recession  Download PDF
by Morgan, Robson & O’Connor, Kelsey J.

GLO DP Team
Senior Editors: Matloob Piracha (University of Kent) & GLO; Klaus F. Zimmermann (UNU-MERIT, Maastricht University and Bonn University).
Managing Editor: Magdalena Ulceluse, University of GroningenDP@glabor.org  

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September 7, 2019. New GLO Discussion Paper on ‘Impact of Early Childcare on Immigrant Children’s Educational Performance’

A new GLO Discussion Paper finds that the effect of early childcare attendance differs between native and immigrant children. Early childcare seems to be particularly relevant for immigrant children from a disadvantaged background.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 394, 2019

Impact of Early Childcare on Immigrant Children’s Educational Performance– Download PDF
by Corazzini, Luca & Meschi, Elena & Pavese, Caterina

GLO Fellow Elena Meschi

Author Abstract: This paper investigates the impact of attending early childcare on second generation immigrant children’s cognitive outcomes. Our analysis draws on administrative data on the entire population of students in fifth grade collected by the Italian Institute for the Evaluation of the Educational System (INVALSI) for school years 2014/2015 to 2016/2017 matched to unique administrative records on the early childcare public available slots at the municipal level. Our identification strategy exploits cross-sectional and time series variation in the provision of early childcare service across Italian municipalities as an instrument for individual early childcare attendance. Our results point out that the effect of early childcare attendance differs between native and immigrant children. Although we find no effects for Italian children, our estimates show a positive and significant effect on literacy test scores for immigrant children of low educated mothers, which suggests that early childcare may be particularly relevant for immigrant children from a disadvantaged background.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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September 6, 2019. New GLO Discussion Paper on ‘The gender wage gap among PhD holders’

A new GLO Discussion Paper finds for Italy a gender gap of 5% to 8% in hourly wages among PhD holders with sizeable differences by sector of employment and field of specialization.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 393, 2019

The gender wage gap among PhD holders: an empirical examination based on Italian data  Download PDF
by Alfano, Vincenzo & Cicatiello, Lorenzo & Gaeta, Giuseppe Lucio & Pinto, Mauro

GLO Fellows Lorenzo Cicatiello, Giuseppe Lucio Gaeta & Sergio Pinto

Author Abstract: A growing number of academic studies are devoting their attention to the study of the gender wage gap. This paper contributes to the literature by analyzing the existence of this gap specifically among those who hold the highest possible educational qualification, i.e. a PhD. The analysis relies on Italian cross-sectional data collected through a highly representative survey of the employment conditions of PhD holders. The econometric analysis is carried out by means of OLS regression, Oaxaca-Blinder decomposition analysis and quantile decomposition. Findings suggest that a gender gap in hourly wages exists among PhD holders, that it lies approximately between 5% and 8%, with sizeable differences by sector of employment and field of specialization, and that such a gap is largely unexplained.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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September 5, 2019. New GLO Discussion Paper on ‘Family Size and Sibling Structure & the Great Mexico-US Migration’

A new GLO Discussion Paper on the Great Mexico-US migration finds that large families per se do not boost offspring out-migration. The likelihood of migrating is higher for sons and decreases sharply with birth order.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 392, 2019

The Impact of Family Size and Sibling Structure on the Great Mexico-U.S. Migration – Download PDF
by Bratti, Massimiliano & Fiore, Simona & Mendola, Mariapia

GLO Fellows Massimiliano Bratti & Mariapia Mendola and GLO Affiliate Simona Fiore

Author Abstract: We investigate how fertility and demographic factors affect migration at the household level by assessing the causal effects of sibship size and structure on offspring’s international migration. We use a rich demographic survey on the population of Mexico and exploit presumably exogenous variation in family size induced by biological fertility and infertility shocks. We further exploit cross-sibling differences to identify birth order, sibling-sex, and sibling-age composition effects on migration. We find that large families per se do not boost offspring out-migration. Yet, the likelihood of migrating is not equally distributed within a household, but is higher for sons and decreases sharply with birth order. The female migration disadvantage also varies with sibling composition by age and gender.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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September 3, 2019. New GLO Discussion Paper on ‘Turkish University Students’ Self-Perceptions of Aging’

A new GLO Discussion Paper finds that almost 85 percent of “engineering” and “economics and administrative science” faculty students describe health and elderly care as the two major concerns they have for their old ages.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 391, 2019

Turkish University Students’ Self-Perceptions of Aging: An Analysis Over Socio-Economic Dimensions – Download PDF
by Yumurtaci, Aynur & Bagis, Bilal

GLO Fellow Bilal Bagis

Author Abstract: University students represent nearly more than half of the youth population (age group of 15-24) in Turkey. Meanwhile, the latest demographic data shows that they will constitute a majority of the elder generation in the context of the recent rapid aging trend in the near future. That said, and although the number of studies related to the students’ perceptions of old ages are increasing in recent years, there is still room to extend our understanding of the influence of demographics, social and economic patterns on students’ self perceptions of old age. To investigate the Turkish students’ views towards their own 65+ ages, a questionnaire is applied to 450 students from two different universities located in different regions in Turkey. Survey analysis shows that, almost 85 percent of “engineering” and “economics and administrative science” faculty students describe health and elderly care as the two major concerns in their old ages. On the contrary, answers of the two faculties differentiated clearly in terms of happiness, ability to save more and living with someone else in their old ages. Also, students accept retirement period as a reflection of aging and most of the students claim they had never thought about the aging process before. Yet, female and male students describe the meaning of retirement as the most comfortable period and a period that makes no sense, respectively.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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September 2, 2019. New GLO Discussion Paper on ‘The Impact of Exposure to Missionaries on the English Language Proficiency and Earnings of Immigrants in the USA’

A new GLO Discussion Paper indicate that male and female immigrants from countries with a higher concentration of Protestant missionaries tend to exhibit higher levels of English language proficiency and earnings, and those from countries with a greater concentration of Catholic missionaries exhibit lower levels of both, compared to countries with lower concentrations of missionaries.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 390, 2019

The Impact of Exposure to Missionaries on the English Language Proficiency and Earnings of Immigrants in the USA – Download PDF
by Larsen, Nicholas & Chiswick, Barry R.

GLO Fellows Barry R. Chiswick

Author Abstract: Purpose: The purpose of this paper is to explore how potential exposure to missionary activity impacts both English language proficiency and labor market earnings of male and female immigrants to the United States. Design/Methodology/Approach: This study uses the pooled files of the American Community Survey (2005-09). To estimate the relationship between the missionary activity of both Protestants and Catholics on an immigrant’s English language proficiency using a linear probability model and their labor market earnings using the human capital earnings function that is estimated with an ordinary least squares model. Among other relevant variables, the analysis controls for the colonial heritage of the immigrant’s country of origin. Findings: Overall, and within colonial heritages, our results indicate that male and female immigrants from countries with a higher concentration of Protestant missionaries tend to exhibit higher levels of English language proficiency and earnings, and those from countries with a greater concentration of Catholic missionaries exhibit lower levels of both, compared to countries with lower concentrations of missionaries. Furthermore, a greater proficiency in English enhances earnings. One of the important implications of the findings in this paper is that a “missionary variable” often used in other studies is too aggregate and may mask important findings because of strikingly different effects of Protestant and Catholic activities and characteristics of the missionaries. Originality/value: This study explores for the first time how, through a missionary concentration variable, potential exposure to missionary activity impacts the English language proficiency and earnings of immigrants.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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September 1, 2019. New GLO Discussion Paper on ‘Immigrant’s demand for informal & formal education’

A new GLO Discussion Paper finds evidence that immigrants are more likely to engage in informal education and, conditionally on participation, they allocate more time to these activities.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 389, 2019

On the road to integration? Immigrant’s demand for informal (& formal) education – Download PDF
by Coniglio, Nicola D. & Hoxhaj, Rezart & Jayet, Hubert

GLO Fellows Nicola Daniele Coniglio & Rezart Hoxhaj

Author Abstract: In this paper we study the allocation of time devoted to informal learning and education, i.e. those activities carried out during leisure time and outside formal education courses which boost individuals’ human and social capital. For immigrants the private investment in these activities is likely to have relevant external effects as informal learning and education enhances the likelihood of greater socio-economic integration in the host society. We first develop a simple theoretical framework, which allows us to highlight the different constrains/opportunity costs faced by immigrants as compared with natives. Then, we empirically investigate the determinants of participation in informal education using the American Time Use Data (ATUS; period 2003-2015) which contains detailed information on daily time budgets of a large sample of immigrants and natives in the US. Consistently with a theoretical model of time allocation we find evidence that immigrants are more likely to engage in informal education and, conditionally on participation, they allocate more time to these activities. Over time, immigrants show a higher degree of assimilation into the host society. Our results also highlight heterogeneous patterns across gender.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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August 31, 2019. New GLO Discussion Paper on ‘A Simple Solution to the Problem of Independence of Irrelevant Alternatives in Choo and Siow Marriage Market Model’

A new GLO Discussion Paper proposes a simple solution to the independence of irrelevant alternatives (IIA) problem in the Choo and Siow (2006) model. The original marriage matching function gets modified by an adjustment factor that improves its empirical properties.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 387, 2019

A Simple Solution to the Problem of Independence of Irrelevant Alternatives in Choo and Siow Marriage Market Model  Download PDF
by Gutierrez, Federico H.

GLO Fellow Federico H. Gutierrez

Author Abstract: This paper proposes a simple solution to the independence of irrelevant alternatives (IIA) problem in Choo and Siow (2006) model, overcoming what is probably the main limitation of this approach. The solution consists of assuming match-specific rather than choice-specific random preferences. The original marriage matching function gets modified by an adjustment factor that improves its empirical properties. Using the American Community Survey, I show that the new approach yields significantly different results affecting the qualitative conclusions of the analysis. The proposed solution to the IIA problem applies to other settings in which the relative “supply” of choices is observable.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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August 30, 2019. New GLO Discussion Paper on ‘Divorce among European and Mexican Immigrants in the US’

A new GLO Discussion Paper finds that those who married prior to migration, who first married at an older age, who are better positioned in the labor market and are less closely connected to their ethnic origins are less likely to be divorced in the United States.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 388, 2019

Divorce among European and Mexican Immigrants in the U.S – Download PDF
by Chiswick, Barry R. & Houseworth, Christina A

GLO Fellow Barry Chiswick

Author Abstract: This paper analyzes the status of being currently divorced among European and Mexican immigrants in the U.S., among themselves and in comparison to the native born of the same ancestries. The data are for males and females age 18 to 55, who married only once, in the 2010-2014 American Community Surveys. Among immigrants, better job opportunities, measured by educational attainment, English proficiency and a longer duration in the U.S. are associated with a higher probability of being divorced. Those who married prior to migration and who first married at an older age are less likely to be divorced. Those who live in states with a higher divorce rate are more likely to be divorced. Thus, currently being divorced among immigrants is more likely for those who are better positioned in the labor market, less closely connected to their ethnic origins, and among Mexican immigrants who live in an environment in which divorce is more prevalent.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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August 29, 2019. New GLO Discussion Paper on ‘The diversity of household assets holdings in the United States’

A new GLO Discussion Paper finds that asset diversity increased between 2007 and 2009, in particular with age, education and income. It is lower at the bottom of the wealth distribution.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 386, 2019

The diversity of household assets holdings in the United States in 2007 and 2009: Measurement and determinants – Download PDF
by Sierminska, Eva M. & Silber, Jacques

GLO Fellow Eva Sierminska

Author Abstract: We apply diversity indices, such as the Gini-Simpson index and entropy related indices, to the study of the distribution of individual asset holdings in the United States in 2007 and 2009. We examine the impact of the 2008 recession on asset diversity and the way individual socio-economic characteristics as well as important life events affect this measure. The focus of our analysis is on financial assets. We use a unique panel data set that provides us with comprehensive household level data for 2007 and 2009 in the United States– the Survey of Consumer Finances. We find that asset diversity increases between 2007 and 2009. In addition, it increases with age, education and income and it is lower at the bottom of the wealth distribution. Life changing situations such as getting divorced or losing one’s job have a statistically significant negative effect on a change in diversity, while getting married or having deteriorating health have a positive effect. Active money management also affects asset diversity positively.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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August 28, 2019. New GLO Discussion Paper on ‘The Impact of BMI on Mental Health’

A new GLO Discussion Paper finds that IV estimates indicate that there is no statistically significant relationship between BMI and mental health for young adults, whereas there is a positive and statistically significant relationship for the elderly.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 385, 2019

The Impact of BMI on Mental Health: Further Evidence from Genetic Markers – Download PDF
by Amin, Vikesh & Flores, Carlos A. & Flores-Lagunes, Alfonso

GLO Fellows Carlos Flores & Alfonso Flores-Lagunes

Author Abstract: We examine the relationship between BMI and mental health for young adults and elderly individuals using data from the National Longitudinal Study of Adolescent Health and the Health & Retirement Study. While OLS estimates show that BMI is significantly associated with worse mental health in both young adulthood and old age, they are likely to be confounded by (i) unobserved factors that affect both BMI and mental health and (ii) reverse causality. To tackle confounding, we take two complementary approaches. First, we use a polygenic score for BMI as an IV and adjust for polygenic scores for other factors that may invalidate this IV. The IV estimates indicate that there is no statistically significant relationship between BMI and mental health for young adults, whereas there is a positive and statistically significant relationship for the elderly. Moreover, we show that IV estimates likely have to be interpreted as identifying a weighted average of effects of BMI on mental health mostly for individuals on the upper quantiles of the BMI distribution. Given potential remaining concerns about the validity of the IV, our second approach is to consider it an “imperfect” IV and estimate an upper bound on the average treatment effect for the corresponding population following Nevo & Rosen (2012). The estimated upper bounds reinforce the conclusions from the IV estimates: they show little evidence of a detrimental effect of BMI on mental health for young adults while being consistent with an economically meaningful effect for elderly individuals. Lastly, we explore some of the potential channels through which BMI may affect mental health for the elderly.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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August 27, 2019. ‘Family size and schooling in sub-Saharan Africa: testing the quantity-quality trade-off’: Now published in the Journal of Population Economics.

The article finds in a careful twin study with data from sub-Saharan Africa that family size has no negative effects on schooling of the children.

Read more in:

Sahawal Alidou & Marijke Verpoorten
Family size and schooling in sub-Saharan Africa: testing the quantity-quality trade-off
Journal of Population Economics, Vol. 32 (2019), Issue 4 (October), pp. 1353-1399.
Journal Website, complete issue 4.

Author Abstract: Many family planning programs are based on the idea that small families lead to improved development outcomes, such as more schooling for children. Because of endogeneity issues, this idea is however difficult to verify. A handful of studies have made use of twin birth to deal with the endogeneity of family size. We do so for sub-Saharan African countries. In a compilation of 86 survey rounds from 34 countries, we exploit the birth of twins to study the effect of a quasi-exogenous increase in family size on the schooling of children at the first, second and third birth order. Our findings do not support the generally assumed negative effect of family size on schooling.

Read also the Lead Article of issue 4 (2019):
Gautam Hazarika, Chandan Kumar & Sudipta Sarangi:
Ancestral ecological endowments and missing women
Journal of Population Economics, Vol. 32 (2019), Issue 4 (October), pp. 1101-1123
Journal Website, complete issue 4. Paper PDF – OPEN ACCESS.
GLO Fellows Gautam Hazarika, Chandan Kumar Jha & Sudipta Sarangi

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August 27, 2019. New GLO Discussion Paper on ‘Smartphone Use and Academic Performance’

A new GLO Discussion Paper suggests that smartphone use has a causal negative effect on academic performance.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 384, 2019

Smartphone Use and Academic Performance: Correlation or Causal Relationship? – Download PDF
by Baert, Stijn & Vujić, Sunčica & Amez, Simon & Claeskens, Matteo & Daman, Thomas & Maeckelberghe, Arno & Omey, Eddy & De Marez, Lieven

GLO Fellows Stijn Baert & Sunčica Vujić

Author Abstract: After a decade of correlational research, this study attempts to measure the causal impact of (general) smartphone use on educational performance. To this end, we merge survey data on general smartphone use, exogenous predictors of this use, and other drivers of academic success with the exam scores of first-year students at two Belgian universities. The resulting data are analysed with instrumental variable estimation techniques. A one-standard-deviation increase in daily smartphone use yields a decrease in average exam scores of about one point (out of 20). When relying on ordinary least squares estimations, the magnitude of this effect is substantially underestimated. The negative association between smartphone use and exam results is more outspoken for students (i) with highly educated fathers, (ii) with divorced parents and (iii) who are in good health. Policy-makers should at least invest in information and awareness campaigns of teachers and parents to highlight this trade-off between smartphone use and academic performance.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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August 26, 2019. ‘Equal sharing, exchange motives, and Cinderella effects’: Now published in the Journal of Population Economics.

The article is testing bequest motives by using a population-wide administrative dataset from Sweden to find that children who likely provided services and daughters with children receive more. However, while adopted stepchildren receive less (Cinderella effect), there is no support for altruism motives.

Read more in:

Oscar Erixson & Henry Ohlsson
Estate division: equal sharing, exchange motives, and Cinderella effects
Journal of Population Economics, Vol. 32 (2019), Issue 4 (October), pp. 1437-1480.
FREE Download PDF

Journal Website, complete issue 4.

Author Abstract: This study contributes to the empirical literature testing bequest motives by using a population-wide administrative dataset, covering data on inherited amounts for complete families matched with an extensive set of economic and demographic variables, to estimate the influence of child characteristics on differences in inherited amounts among siblings. Our main findings are, first, children who are more likely to have provided services to the parent receive more than their siblings, as predicted by the exchange model. Second, daughters with children receive more than sons with children. This is consistent with the prediction of the evolutionary model that larger investments should go to offspring who are certain to be genetically related. There are also Cinderella effects—that is, adopted stepchildren receive less than siblings who are biological or children who are adopted by both parents. Third, we do not find support for the prediction of the altruism model that bequests are compensatory.

Read also the Lead Article of issue 4 (2019):
Gautam Hazarika, Chandan Kumar & Sudipta Sarangi:
Ancestral ecological endowments and missing women
Journal of Population Economics, Vol. 32 (2019), Issue 4 (October), pp. 1101-1123
Journal Website, complete issue 4. Paper PDF – OPEN ACCESS.
GLO Fellows Gautam Hazarika, Chandan Kumar Jha & Sudipta Sarangi

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August 26, 2019. New GLO Discussion Paper on ‘The long-term effect of migration on economic inequality between EU Member States’

A new GLO Discussion Paper suggests that migration has fostered development across European Union member states but has not necessarily decreased economic inequalities between them.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 383, 2019

The long-term effect of migration on economic inequality between EU Member States – Download PDF
by Ulceluse, Magdalena

GLO Fellow Magdalena Ulceluse

Author Abstract: This paper explores the long-term effect of migration on economic inequality between the 28 EU member states, covering the period 1995-2017. The cross-national, longitudinal analysis demonstrates that migration has had a positive and significant effect on development and economic growth in 28 member states. However, the findings also indicate that some countries have benefitted from migration more than others. Specifically, for countries experiencing positive net migration the effect is disproportionately larger than for countries experiencing negative net migration. This seems to indicate that, while migration has indeed contributed to economic development in all member states over the period analysed, it has not necessarily contributed to decreasing economic inequalities between them.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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August 25, 2019. ‘Longevity-induced vertical innovation and the tradeoff between life and growth’: Now published in the Journal of Population Economics.

The article concludes that the debate on rising health care expenditures should not be predominantly based on the growth effects of health care.

Read more in:

Annarita Baldanzi, Klaus Prettner & Paul Tscheuschner
Longevity-induced vertical innovation and the tradeoff between life and growth
Journal of Population Economics, Vol. 32 (2019), Issue 4 (October), pp. 1293-1313 .

GLO Fellow Klaus Prettner

Journal Website, complete issue 4.

Author Abstract: We analyze the economic growth effects of rising longevity in a framework of endogenous growth driven by quality-improving innovations. A rise in longevity increases savings and thereby places downward pressure on the market interest rate. Since the monopoly profits generated by a successful innovation are discounted by the endogenous market interest rate, this raises the net present value of innovations, which, in turn, fosters R&D investments. The associated increase in the employment of scientists leads to faster technological progress and a higher long-run economic growth rate. From a welfare perspective, the direct effect of an increase in life expectancy tends to be larger than the indirect effect of the induced higher consumption due to faster economic growth. Consequently, the debate on rising health care expenditures should not be predominantly based on the growth effects of health care.

Read also the Lead Article of issue 4 (2019):
Gautam Hazarika, Chandan Kumar & Sudipta Sarangi:
Ancestral ecological endowments and missing women
Journal of Population Economics, Vol. 32 (2019), Issue 4 (October), pp. 1101-1123
Journal Website, complete issue 4. Paper PDF – OPEN ACCESS.
GLO Fellows Gautam Hazarika, Chandan Kumar Jha & Sudipta Sarangi

Ends;

August 25, 2019. New GLO Discussion Paper on ‘Extreme Temperature and Extreme Violence’

A new GLO Discussion Paper finds that extreme temperatures increased violent mortality in Russia with unequal impact across gender and age groups.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 382, 2019

Extreme Temperature and Extreme Violence across Age and Gender: Evidence from Russia  Download PDF
by Popova, Olga & Otrachshenko, Vladimir & Tavares, José

GLO Fellow Olga Popova

Author Abstract: We examine the relationship between extreme temperatures and violent mortality across Russian regions, with implications for the social costs of climate change. We assess the unequal impact of temperature shocks across gender and age groups by exploring a dataset on temperature and violence in Russia, between the years 1989 and 2015. Hot days lead to an increase in both female and male victims, one hot day resulting in the loss of 1,579 person-years of life for men, and 642 for women. However, the likelihood of victimization during weekends rises noticeably for women, with women between 25 and 59 more victimized on weekends. Our results suggest that female victimization on hot days would be mitigated by increases in regional income and job opportunities, and on cold days, by decreasing the consumption of spirits.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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August 24, 2019. ‘Government Transfers, Work, and Wellbeing’: Now published in the Journal of Population Economics.

The article studies how the Russian old-age pension affects labor supply, home production, and subjective wellbeing.

Read more in:

Louise Grogan & Fraser Summerfield
Government Transfers, Work, and Wellbeing: Evidence from the Russian Old-Age Pension
Journal of Population Economics, Vol. 32 (2019), Issue 4 (October), pp. 1247-1292 .

Journal Website, complete issue 4.

Author Abstract: This paper examines the impacts of a large and anticipated government transfer, the Russian old-age pension, on labor supply, home production, and subjective wellbeing. The discontinuity in eligibility at pension age is exploited for inference. The 2006–2011 Russian Longitudinal Monitoring Survey is employed. At pension age, women reduce market work and appear to increase home production. They report increased wellbeing. Men reduce labor supply without any apparent increase in wellbeing. Pension receipt does not impact household composition.

Read also the Lead Article of issue 4 (2019):
Gautam Hazarika, Chandan Kumar & Sudipta Sarangi:
Ancestral ecological endowments and missing women
Journal of Population Economics, Vol. 32 (2019), Issue 4 (October), pp. 1101-1123
Journal Website, complete issue 4. Paper PDF – OPEN ACCESS.
GLO Fellows Gautam Hazarika, Chandan Kumar Jha & Sudipta Sarangi

Ends;

August 24, 2019. New GLO Discussion Paper on ‘Income Inequality and the Size of Government’

A new GLO Discussion Paper suggests that government size reduced inequality in European countries over the period 2004-2015.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 381, 2019

Income Inequality and the Size of Government: A Causal Analysis – Download PDF
by Guzi, Martin & Kahanec, Martin

GLO Fellow Martin Guzi & Martin Kahanec

Author Abstract: Expansion of the public sector and redistributive policies may reduce income inequality, but formal tests suffer from the problem of endogeneity of government size with respect to the distribution of income. Studying 30 European countries over the period 2004-2015, we apply instrumental variable estimation techniques to identify a causal relationship between income inequality and government size, measured as the government expenditure share in GDP. Using a novel instrument – the number of political parties in the ruling coalition – we find that accounting for the possible endogeneity of government size increases the magnitude of the estimated negative effects. Our findings thus suggest that much of the literature underestimates the true role of the government in attenuating income inequality. The estimated relationship between income inequality and government size persists in a series of robustness checks.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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August 23, 2019. ‘International migration as a driver of political and social change’: Now published in the Journal of Population Economics.

Using data for Morocco, the paper provides further evidence that international migration fosters the transfer of political and social norms (social remittances).

Read more in:

Michele Tuccio, Jackline Wahba & Bachir Hamdouch
International migration as a driver of political and social change: evidence from Morocco
Journal of Population Economics, Vol. 32 (2019), Issue 4 (October), pp. 1171-1203.
FREE PAPER PDF.

GLO Fellows Michele Tuccio, Jackline Wahba & Bachir Hamdouch
The paper is also GLO Discussion Paper 309.

Journal Website, complete issue 4.

Author Abstract: This paper focuses on the impact of international migration on the transfer of political and social norms. Exploiting recent and unique data on Morocco, this paper explores whether households with return and current migrants bear different political preferences and behaviours than non-migrant families. Once controlling for the double selection into emigration and return migration, the findings suggest that having a returnee in the household increases the demand for political and social change. This result is driven by returnees mostly from Western European countries, who were exposed to more democratic norms in the destination. However, we find a negative impact of having a current migrant on the willingness of the left-behind households to change. This result is driven by migrants to non-Western countries, where the quality of political and social institutions is lower. Our results are robust to also controlling for destination selectivity.

Read also the Lead Article of issue 4 (2019):
Gautam Hazarika, Chandan Kumar & Sudipta Sarangi:
Ancestral ecological endowments and missing women
Journal of Population Economics, Vol. 32 (2019), Issue 4 (October), pp. 1101-1123
Journal Website, complete issue 4. Paper PDF – OPEN ACCESS.
GLO Fellows Gautam Hazarika, Chandan Kumar Jha & Sudipta Sarangi

Ends;

August 23, 2019. New GLO Discussion Paper on ‘The Yen Exchange Rate and the Hollowing Out of the Japanese Industry’

A new GLO Discussion Paper suggests that the periods of yen appreciation over the last decades had more than just transitory negative effects on Japanese manufacturing.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 380, 2019

The Yen Exchange Rate and the Hollowing Out of the Japanese Industry – Download PDF
by Belke, Ansgar & Volz, Ulrich

GLO Fellow Ansgar Belke

Author Abstract: Since the demise of the Bretton Woods system, the yen has seen several episodes of strong appreciation, including in the late 1970s, after the 1985 Plaza Agreement, the early and late 1990s and after 2008. These appreciations have not only been associated with “expensive yen recessions” resulting from negative effects on exports; since the late 1980s, the strong yen has also raised concerns about a de-industrialisation of the Japanese economy. Against this backdrop, the paper investigates the effects of changes to the yen exchange rate on the hollowing out of the Japanese industrial sector. To this end, the paper uses both aggregate and industry-specific data to gauge the effects of yen fluctuations on the output and exports of different Japanese industries, exploiting new data for industry-specific real effective exchange rates. Our findings support the view that the periods of yen appreciation had more than just transitory effects on Japanese manufacturing. The results also provide indication of hysteresis effects on manufacturing. While there are certainly also other factors that have contributed to a hollowing out of Japanese industry, a strong yen played a role, too.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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August 22, 2019. ‘Female genital mutilation: Do return migrants transfer social norms?: Now published in the Journal of Population Economics.

The article finds that girls living in localities with return migrants in Mali are less likely to be circumcised. This effect is driven mainly by the returnees from Côte d’Ivoire, suggesting that, in addition to punitive action against those who practice Female Genital Mutilation (FGM) or information campaigns, having lived in an African country where FGM practice is not customary is equally influential. This is evidence for the relevance of social remittances through return migration here by improving social norms.

Read more in:

Idrissa Diabate & Sandrine Mesplé-Somps
Female genital mutilation and migration in Mali: do return migrants transfer social norms?
Journal of Population Economics, Vol. 32 (2019), Issue 4 (October), pp. 1125-1170.
Also GLO Discussion Paper No. 329.

GLO Fellow Sandrine Mesplé-Somps

Journal Website, complete issue 4.

Author Abstract: In this paper, we investigate the power of migration as a mechanism in the transmission of social norms, taking Mali and Female Genital Mutilation (FGM) as a case study. Mali has a strong FGM culture and a long-standing history of migration. We use an original household-level database coupled with census data to analyze the extent to which girls living in localities with high rates of return migrants are less prone to FGM. Malians migrate predominantly to other African countries where female circumcision is uncommon (e.g., Côte d’Ivoire) and to countries where FGM is totally banned (France and other developed countries) and where anti-FGM information campaigns frequently target African migrants. Taking a two-step instrumental variable approach to control for the endogeneity of migration and return decisions, we show that return migrants have a negative and significant influence on FGM practices. More precisely, we show that this result is primarily driven by the flow of returnees from Cote d’Ivoire. We also show that adults living in localities with return migrants are more informed about FGM and in favor of legislation. The impact of returnees may occur through several channels, including compositional effects, changes in return migrants’ attitudes toward FGM, and return migrants convincing stayers to change their FGM practices.

Read also the Lead Article of issue 4 (2019):
Gautam Hazarika, Chandan Kumar & Sudipta Sarangi:
Ancestral ecological endowments and missing women
Journal of Population Economics, Vol. 32 (2019), Issue 4 (October), pp. 1101-1123
Journal Website, complete issue 4. Paper PDF – OPEN ACCESS.
GLO Fellows Gautam Hazarika, Chandan Kumar Jha & Sudipta Sarangi

Ends;

August 21, 2019. ‘Preference or endowment? Intergenerational transmission of women’s work behavior’: Now published in the Journal of Population Economics.

The results in the study suggest the dominance of the endowment channel over the preference channel.

Read more in:

Zhongda Li & Lu Liu:
Preference or endowment? Intergenerational transmission of women’s work behavior and the underlying mechanisms
Journal of Population Economics, Vol. 32 (2019), Issue 4 (October), pp. 1401-1435.

GLO Fellow Lu Liu

Journal Website, complete issue 4.

Author Abstract: Existing studies have established a positive correlation between a married woman’s work behavior and her mother-in-law’s. Such linkage is attributable to the profound influence of maternal employment on son’s gender role preferences or household productivity. This paper systematically investigates the relative importance of the two potential mechanisms using the Chinese survey data. We show that a substantive part of the intergenerational correlation is left unexplained even if we control for the husband’s gender role attitudes. Instead, we find that the husband’s household productivity is more crucial in the wife’s work decision, suggesting the dominance of the endowment channel over the preference channel.

Read also the Lead Article of issue 4 (2019):
Gautam Hazarika, Chandan Kumar & Sudipta Sarangi:
Ancestral ecological endowments and missing women
Journal of Population Economics, Vol. 32 (2019), Issue 4 (October), pp. 1101-1123
Journal Website, complete issue 4. Paper PDF – OPEN ACCESS.
GLO Fellows Gautam Hazarika, Chandan Kumar Jha & Sudipta Sarangi

Ends;

August 21, 2019. New GLO Discussion Paper on ‘Foreign aid, bilateral asylum immigration and development’

A new GLO Discussion Paper suggests that foreign aid may reduce asylum inflows from poor countries in the short run, but inflows from less poor economies show a positive but weak relation with aid.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 378, 2019

Foreign aid, bilateral asylum immigration and development – Download PDF
by Murat, Marina

GLO Fellow Marina Murat

Author Abstract: This paper measures the links between aid from 14 rich to 113 developing economies and bilateral asylum applications during years 1993 to 2013. Dynamic panel models and Sys-GMM are used. Results show that asylum applications are related to aid nonlinearly in the level of development of origin countries, in a U-shaped fashion, where only the downward segment proves to be robust to all specifications. Asylum inflows from poor countries are negatively, significantly and robustly associated with aid in the short run, with mixed evidence of more lasting effects, while inflows from less poor economies show a positive but weak relation with aid. Moreover, aid leads to negative cross-donor spillovers. Applications linearly decrease with humanitarian aid. Voluntary immigration is not linked to aid. Overall, the reduction in asylum inflows is stronger when aid disbursements are conditional on economic, institutional and political improvements in the recipient economy.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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August 20, 2019. ‘Baby bonus? Examining responses to a pro-natalist policy’: Now published in the Journal of Population Economics.

The study using Canadian experiences finds that properly structured pro-natal policies can successfully increase fertility among different segments of the population.

Read more in:

Natalie Malak, Md Mahbubur Rahman & Terry A. Yip:
Baby bonus, anyone? Examining heterogeneous responses to a pro-natalist policy
Journal of Population Economics, Vol. 32 (2019), Issue 4 (October), pp. 1205-1246.

GLO Fellows Natalie Malak and Md Mahbubur Rahman

Journal Website, complete issue 4.

Author Abstract: We examine the impact of the Allowance for Newborn Children, a universal baby bonus offered by the Canadian province of Quebec, on birth order, sibship sex composition, income, and education. We find a large response for third- and higher-order births for which the bonus was more generous. Interestingly, though, we find stronger response if there were two previous sons or a previous son and daughter rather than two previous daughters. We also find, in addition to a transitory effect, a permanent effect, with the greatest increase in one daughter-two son families among three-child households. Moreover, we find a hump shape response by income group, with the greatest response from middle-income families. Also, women with at least some post-secondary education respond more to the policy than those with less. These findings suggest that properly structured pro-natal policies can successfully increase fertility among different segments of the population while simultaneously diminishing the effect of gender preferences and fertility disparity related to women’s education.

Read also the Lead Article of issue 4 (2019):
Gautam Hazarika, Chandan Kumar & Sudipta Sarangi:
Ancestral ecological endowments and missing women
Journal of Population Economics, Vol. 32 (2019), Issue 4 (October), pp. 1101-1123
Journal Website, complete issue 4. Paper PDF – OPEN ACCESS.
GLO Fellows Gautam Hazarika, Chandan Kumar Jha & Sudipta Sarangi

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August 20, 2019. New GLO Discussion Paper on ‘Interest Rate Hysteresis and Central Bank Policies’

A new GLO Discussion Paper derives the exact shape of the “hysteretic” impact of changes in the interest rate on macroeconomic investment under scenarios of both certainty and uncertainty. Conclusions deal with the efficacy of central bank’s interest rate policy.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 377, 2019

Interest Rate Hysteresis in Macroeconomic Investment under Uncertainty – Download PDF
by Belke, Ansgar & Göcke, Matthias

GLO Fellow Ansgar Belke

Author Abstract: The interest rate is generally considered as an important driver of macroeconomic investment. As an innovation, this paper derives the exact shape of the “hysteretic” impact of changes in the interest rate on macroeconomic investment under the scenarios of both certainty and uncertainty. We capture the direct interest rate-hysteresis on the investments and the capital stock and, explicitly, of stochastic changes on the interest rate-investment hysteresis. Starting with hysteresis effects on a microeconomic level of a single firm, we apply an explicit aggregation procedure to derive the interest rate hysteresis effects on a macroeconomic level. Based on our simple model we are able to obtain some conclusions about the efficacy of a central bank’s interest rate policy, e.g. in times of low or even zero interest rates and high uncertainty, in terms of stimulating macroeconomic investment.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

Ends;

August 19, 2019. New GLO Discussion Paper on ‘How Skill Gap and Mismatch Affects Firm Productivity’

A new GLO Discussion Paper disentangle the complex relationships between skill needs and the productivity of Italian companies. Those firms satisfying their skill needs through successful hiring show higher productivity.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 376, 2019

Skill Gap, Mismatch, and the Dynamics of Italian Companies’ Productivity  Download PDF
by Fanti, Lucrezia & Guarascio, Dario & Tubiana, Matteo

GLO Fellow Lucrezia Fanti

Author Abstract: Relying on a unique integrated database, this work explores the relationship between labour productivity, on one side; intensity and characteristics of companies’ skills need and degree of skill mismatch, on the other. The analysis focuses on a representative sample of Italian limited liability companies observed during the years 2012, 2014 and 2017. First, companies acknowledging the need to update their knowledge base display a higher productivity vis-à-vis other firms. Second, when it comes to the skill need distinguished by competence/knowledge domains (management, STEM, social and soft skills, technical operatives and humanities) it emerges that companies looking for technical operative and social skills show lower labour productivity as compared to other firms. On the contrary, companies characterized by a need in managerial, STEM or humanities-related skills show higher productivity. Third, the ability to match the skill need via new hiring is always positively correlated with firms’ productivity. This result is confirmed across all the adopted specifications.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

Ends;

August 18, 2019. New GLO Discussion Paper compares political and cultural visions on migration.

A new GLO Discussion Paper suggests that structural shortages of labor in developed countries and effectively unlimited supply of labor in the least developed countries generate unavoidable and indispensable international migrations of increasing size.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 375, 2019

Migration. Comparing political and cultural visions – Download PDF
by Bruni, Michele & Catani, Mario

GLO Fellow Michele Bruni

Author Abstract: Different interpretations of migration confront themselves in the political arena. Considering two factors, necessity and acceptability, the paper identifies four stereotyped visions: the society of the walls, the society of mercy, the society of ghettos, and the society of reason. The first three share the ideological assumption that migration flows are supply determined, that they are pushed by poverty, lack of jobs, and desperation due to the lack of perspectives of a better future. The fourth vision states, based on robust empirical evidence, that migration is determined by a structural shortage of labor that, characterizes an increasing number of developed countries, in the presence of an unlimited supply of labor in the least developed countries. The implication of this idea is that international migrations flows of increasing size are unavoidable and indispensable to both groups of countries. They should reach a political agreement to jointly manage them with mutual advantage. An Annex summarizes previous work of one of the authors updated with recent data and estimates released by UN DESA. It provides a short, critical introduction to the concept of the demographic transition and presents the statistical implications of its most relevant consequence: the demographic polarization of the planet.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

Ends;

August 17, 2019. Interest rate uncertainty weakens monetary policy.

A new GLO Discussion Paper investigates whether uncertainty over future interest rates in the Euro area hampers the monetary policy transmission. It finds hysteretic effects of interest rate changes on investment in most European countries.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 374, 2019

Interest Rate Bands of Inaction and Play-Hysteresis in Domestic Investment – Evidence for the Euro Area – Download PDF
by Belke, Ansgar & Frenzel Baudisch, Coletta & Göcke, Matthias

GLO Fellow Ansgar Belke

Author Abstract: The interest rate represents an important monetary policy tool to steer investment in order to reach price stability. Therefore, implications of the exact form and magnitude of the interest rate-investment nexus for the European Central Bank’s effectiveness in a low interest rate environment gain center stage. We first present a theoretical framework of the hysteretic impact of changes in the interest rate on macroeconomic investment under certainty and under uncertainty to investigate whether uncertainty over future interest rates in the Euro area hampers monetary policy transmission. In this non-linear model, strong reactions in investment activity occur as soon as changes of the interest rate exceed a zone of inaction, that we call ‘play’ area. Second, we apply an algorithm describing path-dependent play-hysteresis to estimate investment hysteresis using data on domestic investment and interest rates on corporate loans for 5 countries of the Euro area in the period ranging from 2001Q1 to 2018Q1. We find hysteretic effects of interest rate changes on investment in most countries. However, their shape and magnitude differ widely across countries which poses a challenge for a unified monetary policy. By introducing uncertainty into the regressions, the results do not change much which may be due to the interest rate implicitly incorporating uncertainty effects in investment decisions, e.g. by risk premia.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

Ends;

August 16, 2019. New GLO Discussion Paper on ‘Gender division of household labor: How does culture operate?’

A new GLO Discussion Paper helps to understand how culture works in the family life of couples. A stronger culture of gender equality is associated with more joint home production of the partners.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 373, 2019

Gender division of household labor: How does culture operate?  Download PDF
by Marcén, Miriam & Morales, Marina

GLO Fellow Miriam Marcén

Author Abstract: In this paper, we examine whether culture plays a role in the gender division of household labor. To explore this issue, we use data on early-arrival first and second generation immigrants living in the United States. Since all these individuals have grown up under the same laws, institutions, and economic conditions, then the differences between them in the gender division of housework may be due to cultural differences. We find that the higher the culture of gender equality in the country of ancestry, the greater the equality in the division of housework. This is maintained when we consider both housework and childcare as household labor. Our work is extended by examining how culture operates and is transmitted. We study whether culture may influence by and with whom housework activities are performed and the timing of the day when this happens, which can help us to understand how culture operates in the family life of couples. Results indicate that the more culture of gender equality is associated with greater probability that individuals report performing housework when they are with their partner in the evening, which may improve family live by making housework a non-individual task. The cultural impact is also observed in the case of working days, but it is not so clear during public holidays, which can be explained by the fact that those individuals originating from less egalitarian countries work longer work hours than those from egalitarian countries.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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