Category Archives: Discussion Paper

The Unequal Impact of Natural Light on Crime. A new GLO Discussion Paper of GLO Fellow Emiliano Tealde.

A new GLO Discussion Paper contributes to the rising literature on the impact of natural light on economic behavior. Using Daylight Saving Time as a natural experiment it finds that the increase of light has reduced crime in Montevideo strongly.

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. 663, 2020

The Unequal Impact of Natural Light on Crime – Download PDF
by
Tealde, Emiliano

Accepted for publication in the Journal of Population Economics.

GLO Fellow Emiliano Tealde

Author Abstract: This paper studies the relationship between ambient light and criminal activity. A Becker-style crime model is developed where it is shown that in areas with less public lighting a sudden increase in ambient light produces a higher reduction in crime. The Daylight Saving Time, the natural experiment used, induces a sharp increase in natural light during crime-intense hours. Using geolocated data on crime and public lighting for the city of Montevideo in Uruguay, regression discontinuity estimates identify a strong and statistically significant decrease in robbery of 17-percent. The decrease is larger in poorly lit areas. Computing the level of public lighting at which DST has no effect on crime reduction, we identify the minimum level of public lighting that an area should target.

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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Labor Market Effects of a Work-first Policy for Refugees. A new GLO Discussion Paper by GLO Fellow Jacob Arendt.

A new GLO Discussion Paper studies the labor market effects of a work-first policy that aimed at speeding up the labor market integration of refugees. New requirements for refugees to actively search for jobs and to participate in on-the-job training immediately upon arrival in Denmark led to limited employment effects among males but not for females.

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. 662, 2020

Labor Market Effects of a Work-first Policy for Refugees Download PDF
by
Arendt, Jacob Nielsen

Accepted for publication in the Journal of Population Economics.

GLO Fellow Jacob Arendt

Author Abstract: This study estimates the labor market effects of a work-first policy that aimed at speeding up the labor market integration of refugees. The policy added new requirements for refugees to actively search for jobs and to participate in on-the-job training immediately upon arrival in the host country. The requirements were added to an existing policy that emphasizes human capital investments in language training. The results show that the work-first policy speeded up the entry into regular jobs for males, but that they find work in precarious jobs with few hours. The long-run effects are uncertain since the policy crowds out language investments but raises enrollment in education. The policy had no or very small effects for women, which is partly explained by a lower treatment intensity for women.

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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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A strictly economic explanation of gender roles: The lasting legacy of the plough. A new GLO Discussion Paper by GLO Fellow Alessandro Cigno.

A new GLO Discussion Paper shows that the descendants of ancient farmers may have an interest in marrying among themselves, and thus maintaining the gendered division of labor, originally justified on comparative-advantage grounds by the advent of the plough.

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. 660, 2020

A strictly economic explanation of gender roles: The lasting legacy of the plough Download PDF
by
Cigno, Alessandro

GLO Fellow Alessandro Cigno

Author Abstract: We show that the descendants of ancient farmers may have an interest in marrying among themselves, and thus maintaining the gendered division of labor, originally justified on comparative-advantage grounds by the advent of the plough, even after they emigrate to a modern industrial economy where individual productivity depends on education rather than physical characteristics. The result rests on the argument that, if efficiency requires the more productive spouse to specialize in raising income, and the less productive one in raising children, irrespective of gender, an efficient domestic equilibrium will be implemented by a costlessly enforceable pre-marital contract stipulating that the husband should do the former and the wife the latter. A contract may not be needed, however, if time spent with children gives direct utility, because an efficient equilibrium may then be characterized by little or no division of labor.

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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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International Trade and Labor Market Integration of Immigrants. A new GLO Discussion Paper by GLO Fellow Magnus Lodefalk and colleagues.

A new GLO Discussion Paper finds for Sweden a positive, yet heterogeneous, effect of trade on immigrant employment but no effect on immigrant wages.

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. 659, 2020

International Trade and Labor Market Integration of Immigrants – Download PDF
by
Lodefalk, Magnus & Sjöholm, Fredrik & Tang, Aili

GLO Fellow Magnus Lodefalk

Author Abstract: We examine if international trade improves labor market integration of immigrants in Sweden. Immigrants participate substantially less than natives in the labor market. However, trading with a foreign country is expected to increase the demand for immigrants from that country. By hiring immigrants, a firm may access foreign knowledge and networks needed to overcome information frictions in trade. Using granular longitudinal matched employer–employee data and an instrumental variable approach, we estimate the causal effects of a firm’s bilateral trade on employment and wages of immigrants from that country. We find a positive, yet heterogeneous, effect of trade on immigrant employment but no effect on immigrant wages.

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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Measuring Gender Attitudes Using List Experiments. A new GLO Discussion Paper by GLO Fellows M Niaz Asadullah & Zahra Siddique and colleagues.

A new GLO Discussion Paper studies adolescent girls’ attitudes towards intimate partner violence and child marriage using data from rural Bangladesh. It further investigates how numerous variables relate to preferences for egalitarian gender norms in rural Bangladesh.

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. 658, 2020; forthcoming 2021 in the Journal of Population Economics.

Measuring Gender Attitudes Using List Experiments – Download PDF
by
Asadullah, M Niaz & De Cao, Elisabetta & Khatoon, Fathema Zhura & Siddique, Zahra

GLO Fellows M Niaz Asadullah & Zahra Siddique

Author Abstract: We elicit adolescent girls’ attitudes towards intimate partner violence and child marriage using purposefully collected data from rural Bangladesh. Alongside direct survey questions, we conduct list experiments to elicit true preferences for intimate partner violence and marriage before age eighteen. Responses to direct survey questions suggest that very few adolescent girls in the study accept the practises of intimate partner violence and child marriage (5% and 2%). However, our list experiments reveal significantly higher support for both intimate partner violence and child marriage (at 30% and 24%). We further investigate how numerous variables relate to preferences for egalitarian gender norms in rural Bangladesh.

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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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Trade and Economic Growth: Theories and Evidence from the Southern African Development Community. A new GLO Discussion Paper by GLO Fellow Almas Heshmati and Matias Jaime Farahane.

A new GLO Discussion Paper examines the hypothesis that trade can be an engine of growth using data for the Southern African Development Community (SADC) countries. It finds that export expansion stimulated growth, more openness to trade reduced it, and that the formation of SADC had not yet brought any effects on growth.

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. 657, 2020

Trade and Economic Growth: Theories and Evidence from the Southern African Development Community Download PDF
by
Farahane, Matias Jaime & Heshmati, Almas

GLO Fellow Almas Heshmati

Author Abstract: This paper empirically tests the hypothesis that trade can act as an engine of growth using panel data for the Southern African Development Community (SADC), a regional integration agreement (RIA) organization, the central objective of whose formation was the need to accelerate, foster, and encourage the region’s growth. Our results indicate that during the period covered by this study (2005-2017), export expansion stimulated growth, more openness to trade reduced it, and that the formation of SADC had not yet brought about any effects on growth perhaps because of lack of full establishment of the primary instruments for achieving its central objective. These results lead to three conclusions. Firstly, trade through export expansion seems to be a better solution for SADC for achieving the central objective of its formation. Secondly, more openness to trade seems to jeopardize growth. Finally, the formation of SADC has not yet brought about the expected gains from a RIA. In this context, we recommend that policymakers should consider adopting measures aimed at supporting increased trade through promoting export expansion, achieving strong absorption of negative chocks that usually result from trade, and exploring the possibility of establishing all the planned primary instruments for achieving SADC’s central objective.

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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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The Extractive Industry’s Impact on Economic Growth in SADC Countries. A new GLO Discussion Paper by GLO Fellow Almas Heshmati and Simeão Nhabinde.

A new GLO Discussion Paper studies the direct and indirect impacts the extractive industries have on economic growth in the Southern African Development Community (SADC) 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. 656, 2020

The Extractive Industry’s impact on Economic Growth in SADC Countries Download PDF
by
Nhabinde, Simeão & Heshmati, Almas

GLO Fellow Almas Heshmati

Author Abstract: The Southern African Development Community (SADC) countries are rich in natural resources and in most of them their extractive industries extract and export natural resources with little industrial processing. This study analyzes the direct and indirect impacts that the extractive industries in the SADC countries have on their economic growth. The study also examines the hypothesis of economic convergence. Its empirical results are based on data from the 11 founding SADC countries covering the period 2004-17. The results show that despite the process of integration, the SADC economies do not converge in terms of per capita incomes. The extractive industries have direct negative impacts on the countries’ economic growth thus providing evidence of a resource curse. Extractive industries in South Africa, Botswana, and Namibia have positive direct impacts on their economic growth. However, in terms of indirect impacts, the extractive industries do not have any impact on GDP because their impact on manufacturing, human capital, public expenditure, economic openness, exchange rate, and inflation is insignificant. The study also shows that GDP, the colonial path followed by these countries, and inflation have a negative but insignificant impact on extractive industries, while manufacturing, government expenditure, and economic openness have positive but insignificant impacts in all SADC countries. Human capital and exchange rate are the only factors that have both significant positive and negative impacts on economic growth, respectively.

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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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An Economic Model of Health-vs-Wealth Prioritization during Covid-19: Optimal Lockdown, Network Centrality, and Segregation in a new GLO Discussion Paper by GLO Fellow Guy Tchuente and colleagues.

A new GLO Discussion Paper shows that the optimal policy response to Covid-19 depends both on the configuration of the contact network and the tolerated infection incidence.

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. 667, 2020

An Economic Model of Health-vs-Wealth Prioritization during Covid-19: Optimal Lockdown, Network Centrality, and Segregation – Download PDF
by
Pongou, Roland & Tchuente, Guy & Tondji, Jean-Baptiste

GLO Fellow Guy Tchuente

Author Abstract: We address the problem of finding the optimal lockdown and reopening policy during a pandemic like COVID-19 for a social planner who prioritizes health over the economy. Agents are connected through a fuzzy network of contacts, and the planner’s objective is to determine the policy that contains the spread of infection below a tolerable incidence level, and that maximizes the present discounted value of real income, in that order of priority. We show theoretically that the planner’s problem has a unique solution. The optimal policy depends both on the configuration of the contact network and the tolerated infection incidence. Using simulations, we apply these theoretical findings to: (i) quantify the trade-off between the economic cost of the pandemic and the infection incidence allowed by the social planner, and show how this trade-off depends on network configuration; (ii) understand the correlation between different measures of network centrality and individual lockdown probability, and derive implications for the optimal design of surveys on social distancing behavior and network structure; and (iii) analyze how segregation induces differential health and economic dynamics in minority and majority populations, also illustrating the crucial role of patient zero in these dynamics.

More from the GLO Coronavirus Cluster

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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COVID-19 labour market shocks and their inequality implications for financial wellbeing. A new GLO Discussion Paper of GLO Fellows John P. de New & David C. Ribar and colleagues.

A new GLO Discussion Paper indicates that the negative COVID-19 labour market effects are felt the most by people in the lowest percentiles of the financial wellbeing distribution suggesting significant increases in financial wellbeing disadvantage and inequality.

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. 661, 2020

COVID-19 labour market shocks and their inequality implications for financial wellbeing Download PDF
by
Botha, Ferdi & de New, John P. & de New, Sonja C. & Ribar, David C. & Salamanca, Nicolá

GLO Fellows John P. de New & David C. Ribar

Author Abstract: Using an online survey of Australian residents, we elicit the potential impacts of COVID-19 related labour market shocks on a validated measure of financial wellbeing. Experiencing a reduction in hours and earnings, entering into unemployment or having to file for unemployment benefits during the pandemic are strongly and significantly associated with decreases in financial wellbeing of 29% or 18 points on the financial wellbeing scale of 0-100, despite various government measures to reduce such effects. Unconditional quantile regression analyses indicate that the negative COVID-19 labour market effects are felt the most by people in the lowest percentiles of the financial wellbeing distribution. Counterfactual distribution regressions indicate a shifting of the financial wellbeing distribution leftwards brought on by those suffering any of the above-mentioned labour market shocks, indicating potential significant increases in financial wellbeing disadvantage and inequality.

More from the GLO Coronavirus Cluster

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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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Pay Gaps and Mobility for Lower and Upper Tier Informal Sector Employees: an investigation of the Turkish labor market by GLO Fellow Anil Duman in an new GLO Discussion Paper.

A new GLO Discussion Paper studies the wage gap between formal and informal sector workers in Turkey confirming that an informal wage penalty is persistent even after unobserved heterogeneity is taken into account.

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. 655, 2020

Pay Gaps and Mobility for Lower and Upper Tier Informal Sector Employees: an investigation of the Turkish labor market – Download PDF
by
Duman, Anil

GLO Fellow Anil Duman

Author Abstract: Many empirical studies found wage gaps between formal and informal sector workers even after controlling for a number of individual and firm level characteristics. While there is limited amount of research considering the same question in the Turkish labor market, wage gap between formal and informal employees generally do not take unobserved characteristics into account. In our paper, we carry this analysis for Turkey and estimate the wage gap between formal and informal sector workers utilizing panel data from Survey of Income and Living Conditions (SILC) for the period of 2014 and 2017. Mincer wage equations across quantiles are estimated considering observable and unobservable characteristics with a fixed effect model, and for sensitivity tests we regard the possibility of nonlinearity in covariate effects and estimate a variant of matching models. Our results show that informal wage penalty is persistent even after unobserved heterogeneity is taken into account, however, the penalty is not statistically significant at the upper end of the wage distribution. Moreover, we show that there are important differences between informal workers who have permanent contracts versus informal workers that have relatively more irregular work arrangements. Not only the latter is subject to earnings reductions, but they also have slightly lower probability of moving out of informal employment. We also demonstrate that the mobility of lower and upper tier informal workers is affected by different variables.

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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Long Live the Vacancy. A new GLO Discussion Paper by GLO Fellow Christian Haefke and Michael Reiter

A new GLO Discussion Paper studies the role of long-term vacancies in a Diamond-Mortensen-Pissarides style search and matching model calibrated to the US economy and identifies a vacancy depletion channel.

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. 654, 2020

Long Live the Vacancy Download PDF
by
Haefke, Christian & Reiter, Michael

GLO Fellow Christian Haefke

Author Abstract: We reassess the role of vacancies in a Diamond-Mortensen-Pissarides style search and matching model. In the absence of free entry long lived vacancies and endogenous separations give rise to a vacancy depletion channel which we identify via joint unemployment and vacancy dynamics. We show conditions for constrained efficiency and discuss important implications of vacancy longevity for modeling and calibration, in particular regarding match cyclicality and wages. When calibrated to the postwar US economy, the model explains not only standard deviations and autocorrelations of labor market variables, but also their dynamic correlations with only one shock.

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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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Unemployment, Immigration, and Populism: Evidence from Two Quasi-Natural Experiments in the United States. A new GLO Discussion Paper by GLO Fellow Shuai Chen.

A new GLO Discussion Paper studies the effects of unemployment and unauthorized immigration on attitudes related to populism and populist voting in the 2016 U.S. Presidential Election.

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. 652, 2020

Unemployment, Immigration, and Populism: Evidence from Two Quasi-Natural Experiments in the United States Download PDF
by
Chen, Shuai

GLO Fellow Shuai Chen

Author Abstract: This paper examines how economic insecurity and cultural anxiety have triggered different dimensions of the current populism in the United States. Specifically, I exploit two quasi-natural experiments, the Great Recession and the 2014 Northern Triangle immigrant influx, to investigate the effects of unemployment and unauthorized immigration on attitudes related to populism and populist voting in the 2016 U.S. Presidential Election. I discover that recent unemployment during the Great Recession, rather than existing unemployment from before the recession, increased the probability of attitudes forming against wealthy elites by 15 percentage points. Such attitudes are connected with left-wing populism. I identify perceived economic unfairness as a mechanism through which recent unemployment drove left-wing populism. However, cultural anxiety rather than economic insecurity more likely led to the over 10 percentage points rise in the probability of anti-immigration attitudes developing. These attitudes are related to right-wing populism. Furthermore, I obtain evidence that cohorts economically suffering the aftermath of the Great Recession were associated with 40 percentage points higher likelihood of supporting left-wing populist Bernie Sanders, while cohorts residing in regions most intensely impacted by the immigrant in ux were associated with 10 percentage points higher possibility to vote for right-wing populist Donald Trump. This study attempts to link distinct economic and cultural driving forces to different types of populism and to contribute to the understanding on the potential interactions of the economic and cultural triggers of the currently surging populism.

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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Impacts of COVID-19 on Food Security: Panel Data Evidence from Nigeria. A new GLO Discussion Paper by GLO Fellow Luca Tiberti and colleagues.

A new GLO Discussion Paper quantifies the overall and differential impacts of COVID-19 on household food security, labor market participation and local food prices in Nigeria.

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. 653, 2020

Impacts of COVID-19 on Food Security: Panel Data Evidence from Nigeria – Download PDF
by
Amare, Mulubrhan & Abay, Kibrom A. & Tiberti, Luca & Chamberlin, Jordan

GLO Fellow Luca Tiberti

Author Abstract: This paper combines pre-pandemic face-to-face survey data with follow up phone surveys collected in April-May 2020 to quantify the overall and differential impacts of COVID-19 on household food security, labor market participation and local food prices in Nigeria. We exploit spatial variation in exposure to COVID-19 related infections and lockdown measures along with temporal differences in our outcomes of interest using a difference-in-difference approach. We find that those households exposed to higher COVID-19 cases or mobility lockdowns experience a significant increase in measures of food insecurity. Examining possible transmission channels for this effect, we find that COVID-19 significantly reduces labor market participation and increases food prices. We find that impacts differ by economic activities and households. For instance, lockdown measures increased households’ experience of food insecurity by 13 percentage points and reduced the probability of participation in non-farm business activities by 11 percentage points. These lockdown measures have smaller impacts on wage-related activities and farming activities. In terms of food security, households relying on non-farm businesses, poorer households, those with school-aged children, and those living in remote and conflicted-affected zones have experienced relatively larger deteriorations in food security. These findings can help inform immediate and medium-term policy responses, including social protection policies aiming at ameliorating the impacts of the pandemic, as well as guide targeting strategies of governments and international donor agencies by identifying the most impacted sub-populations.

More from the GLO Coronavirus Cluster

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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Canadian Small Businesses’ Employees and Owners during COVID-19. A new GLO Discussion Paper by GLO Fellow Louis-Philippe Beland and colleagues.

A new GLO Discussion Paper finds for Canada large decreases in the number of small business owners, the number of employed, and in hours worked, from February to July 2020. 

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. 650, 2020

Canadian Small Businesses’ Employees and Owners during COVID-19 – Download PDF
by
Beland, Louis-Philippe & Fakorede, Oluwatobi & Mikola, Derek

GLO Fellow Louis-Philippe Beland

Louis-Philippe Beland

Author Abstract: Canadian employers are largely small businesses. Their relevance for job creation and labor demand is integral for policymakers concerned with adverse labor market outcomes resulting from the COVID-19 pandemic. Using the Canadian Labor Force Survey (LFS) we document how the self-employed, which we interpret as small business owners, and employees of small businesses are being affected by COVID-19. We find large decreases in the number of small business owners, the number of employed, and in hours worked, from February to July 2020. We also find large labor market impact on small business employees. Our research confirms increasing employment, hours worked, and small business ownership as provinces began reopening their economies in May to July 2020. Still, these improvements are often below pre-March 2020 trends with some demographic groups, such as female and immigrant small business owners, having considerably worse outcomes than their respective counterparts.

More from the GLO Coronavirus Cluster

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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The role of innovation in industrial dynamics and productivity growth: a survey of the literature. New Discussion Paper by GLO Fellow Marco Vivarelli & Mehment Ugur.

A new GLO Discussion Paper reviews the literature that investigates the effects of innovation on firm survival and firm productivity, the two main channels through which innovation drives growth.

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. 648, 2020

The role of innovation in industrial dynamics and productivity growth: a survey of the literature – Download PDF
by
Ugur, Mehment & Vivarelli, Marco

GLO Fellow Marco Vivarelli

Author Abstract: We review the theoretical underpinnings and the empirical findings of the literature that investigates the effects of innovation on firm survival and firm productivity, which constitute the two main channels through which innovation drives growth. We aim to contribute to the ongoing debate along three paths. First, we discuss the extent to which the theoretical perspectives that inform the empirical models allow for heterogeneity in the effects of R&D/innovation on firm survival and productivity. Secondly, we draw attention to recent modeling and estimation effort that reveals novel sources of heterogeneity, non-linearity and volatility in the gains from R&D/innovation, particularly in terms of its effects on firm survival and productivity. Our third contribution is to link our findings with those from prior reviews to demonstrate how the state of the art is evolving and with what implications for future research.

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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Education-occupation mismatch and dispersion in returns to education: Evidence from India. A new GLO Discussion Paper by GLO Fellow Ajay Sharma & Shweta Grover

A new GLO Discussion Paper studies mismatch of workers in the Indian labor market: overeducated workers suffer a wage penalty and undereducated workers do not receive a wage reward as compared to their adequately educated counterparts.

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. 651, 2020

Education-occupation mismatch and dispersion in returns to education: Evidence from India – Download PDF
by
Grover, Shweta & Sharma, Ajay

GLO Fellow Ajay Sharma

Author Abstract: Using a national level sample survey on the labor market in India, we analyze the role of education-occupation (mis-)match (EOM) in explaining within-group dispersion in returns to education. Applying a double sample selection bias correction and Mincerian quantile wage regression estimation, the analysis reveals interesting findings. First, on average, overeducated workers suffer a wage penalty of seven percent and undereducated workers do not receive a wage reward as compared to their adequately educated counterparts. Second, the inclusion of match status reduces within-education group dispersion in returns. The finding highlights that ignoring EOM and thus, adopting a restrictive view of similarity across workers may lead to overestimation of the within-education group dispersion in returns. This study argues for focusing on EOM to increase both pecuniary and social benefits of education in terms of productivity gains and wages as well as to reduce wage dispersion.

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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Heterogeneous Shocks in the Covid-19 Pandemic: Panel Evidence from Italian Firms in a new GLO Discussion Paper. By GLO Fellow Emanuele Brancati & Raffaele Brancati.

A new GLO Discussion Paper document stronger shocks for truly innovative companies and effects on long-run growth operating through the disruption of preexisting R&D plans.

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. 649, 2020

Heterogeneous Shocks in the Covid-19 Pandemic: Panel Evidence from Italian Firms – Download PDF
by
Brancati, Emanuele & Brancati, Raffaele

GLO Fellow Emanuele Brancati

Author Abstract: This paper contributes to the policy discussion on Covid-19 by presenting real-time evidence on the magnitude of the shock for Italian firms. We take advantage of unique panel data on 7,800 companies between January 2020 (right before the pandemic) and March of the same year (in the midst of lockdown policies). We then exploit the revision in expectation within this short time window to capture the impact of firms’ idiosyncratic shock. Our analysis shows disproportionate effects for internationalized companies and provide some evidence on supply chain contagion. We also document stronger shocks for truly innovative companies and effects on long-run growth operating through the disruption of preexisting R&D plans.

More from the GLO Coronavirus Cluster

Featured image: Photo-by-Adli-Wahid-on-Unsplash

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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The Beneficial Impacts of COVID-19 Lockdowns on Air Pollution: Evidence from Vietnam. A new GLO Discussion Paper by GLO Fellow Hai-Anh Dang & Trong-Anh Trinh

A new GLO Discussion Paper finds that lockdowns improve air quality, but the effects appear to dissipate after ten weeks.

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. 647, 2020

The Beneficial Impacts of COVID-19 Lockdowns on Air Pollution: Evidence from Vietnam – Download PDF
by
Dang, Hai-Anh H. & Trinh, Trong-Anh

GLO Fellow Hai-Anh Dang

Author Abstract: Little evidence currently exists on the effects of COVID-19 on air quality in poorer countries, where most air pollution-linked deaths occur. We offer the first study that examines the pandemic’s impacts on improving air quality in Vietnam, a lower-middle income country with worsening air pollution. Employing the Regression Discontinuity Design method to analyze a rich database that we compile from satellite air pollution data and data from various other sources, we find the concentration of NO2 to decrease by 24 to 32 percent two weeks after the COVID-19 lockdown. While this finding is robust to different measures of air quality and model specifications, the positive effects of the lockdown appear to dissipate after ten weeks. We also find that mobility restrictions are a potential channel for improved air quality. Finally, our back-of-the-envelope calculations suggest that two weeks after the lockdown, the economic gains from better air quality are roughly $0.6 billion US dollars.

More from the GLO Coronavirus Cluster

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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The effect of job search requirements on welfare receipt. A new GLO Discussion Paper by GLO Fellow Nicolas Hérault and colleagues.

A new GLO Discussion Paper finds large negative effects on welfare receipts for an Australian reform that imposed job search requirements as a condition of unemployment benefit receipt with expected large labor supply consequences.

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. 646, 2020

The effect of job search requirements on welfare receipt Download PDF
by
Hérault, Nicolas & Vu, Ha & Wilkins, Roger

GLO Fellows Nicolas Hérault & Roger Wilkins

Nicolas Hérault

Author Abstract: Many countries impose job search requirements as a condition of unemployment benefit receipt, but there is relatively little evidence on the efficacy of these requirements. Australian reforms in 1995 and 2003 saw groups of welfare recipients newly subjected to job search requirements, providing an opportunity to identify their effects on welfare receipt. Using this quasi-experimental design and administrative data, we find negative effects on welfare receipt for the mature-age partnered women targeted by the reforms. We also find large negative effects on welfare receipt of their partners, suggesting family labor supply decisions were considerably affected.

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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GLO Discussion Paper of the Month on ‘True Covid-19 mortality rates from administrative data’ authored by GLO Fellow Domenico Depalo

The GLO Discussion Paper of the Month of August demonstrates how to use administrative data to estimate the number of deaths, the number of infections, and mortality rates from Covid-19 in Lombardia, the hot spot of the disease in Italy and Europe.

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

630 True Covid-19 mortality rates from administrative data – Download PDF
by
Depalo, Domenico

Forthcoming: Journal of Population Economics

GLO Fellow Domenico Depalo

Author Abstract: In this paper I use administrative data to estimate the number of deaths, the number of infections, and mortality rates from Covid-19 in Lombardia, the hot spot of the disease in Italy and Europe. The information is relevant for the policy maker, to make decisions, and for the public, to adopt appropriate behaviors. As the available data suffer from sample selection bias I use partial identification to derive these quantities. Partial identification combines assumptions with the data to deliver a set of admissible values, or bounds. Stronger assumptions yield stronger conclusions, but decrease the credibility of the inference. Therefore, I start with assumptions that are always satisfied, then I impose increasingly more restrictive assumptions. Using my preferred bounds, during March 2020 in Lombardia there were between 10,000 and 18,500 more deaths than before 2020. The narrowest bounds of mortality rates from Covid-19 are between 0.1% and 7.5%, much smaller than the 17.5% discussed for long time. This finding suggests that the case of Lombardia may not be as special as some argue.

More from the GLO Coronavirus Cluster

GLO Discussion Papers submitted in August 2020

645 Collateral Damage? Labour Market Effects of Competing with China – at Home and Abroad – Download PDF
by 
Cabral, Sónia & Martins, Pedro S. & Pereira dos Santos, João & Tavares, Mariana

644 Suffering and prejudice: Do negative emotions predict immigration concerns? – Download PDF
by 
Deole, Sumit S. & Huang, Yue

643 Self-Selection in Physical and Mental Health among Older Intra-European Migrants – Download PDF
by 
Constant, Amelie F. & Milewski, Nadja

642 Entrepreneurship Education and Teacher Training in Rwanda – Download PDF
by 
Blimpo, Moussa P.  Pugatch, Todd

641 Schooling Forsaken: Education and Migration – Download PDF
by 
Abdulloev, Ilhom & Epstein, Gil S. & Gang, Ira N.

640 The Economics of Happiness – Download PDF
by 
Nikolova, Milena & Graham, Carol

639 In Times of Trouble: Innovative Drivers of External Competitiveness for Small Businesses during the Great Recession – Download PDF
by 
Brancati, Emanuele & Brancati, Raffaele & Guarascio, Dario & Zanfei, Antonello

638 Trade Liberalization and the Gender Employment Gap in China – Download PDF
by 
Wang, Feicheng & Kis-Katos, Krisztina & Zhou, Minghai

637 The intensity of COVID-19 Non-Pharmaceutical Interventions and labor market outcomes in the public sector – Download PDF
by 
Marcén, Miriam & Morales, Marina

636 To abate, or not to abate? A strategic approach on green production in Cournot and Bertrand duopolies – Download PDF
by 
Buccella, Domenico & Fanti, Luciano & Gori, Luca

635 Short-term Labour Market Effects of COVID-19 and the Associated National Lockdown in Australia: Evidence from Longitudinal Labour Force Survey – Download PDF
by 
Guven, Cahit & Sotirakopoulos, Panagiotis & Ulker, Aydogan

634 Big Data and Happiness – Download PDF
by 
Rossouw, Stephanie & Greyling, Talita

633 Contract structure, time preference, and technology adoption – Download PDF
by 
Chowdhury, Shyamal & Smits, Joeri & Sun, Qigang

632 Artificial Intelligence, Income Distribution and Economic Growth – Download PDF
by 
Gries, Thomas & Naudé, Wim

631 Entrepreneurial Recovery from COVID-19: Decentralization, Democratization, Demand, Distribution, and Demography – Download PDF
by 
Naudé, Wim

630 True Covid-19 mortality rates from administrative data – Download PDF
by 
Depalo, Domenico

629 Firm behavior during an epidemic – Download PDF
by 
Brotherhood, Luiz & Jerbashian, Vahagn

628 Conscription and Educational Outcomes: Quasi-Experimental Evidence from the Republic of Cyprus – Download PDF
by 
Savčić, Ružica & Theodoropoulos, Nikolaos & Xefteris, Dimitrios

627 Sexual Orientation, Gender Identity and Labour Market Outcomes: New Patterns and Insights – Download PDF
by 
Drydakis, Nick & Zimmermann, Klaus F.

626 COVID-19 Outbreak, Social Response, and Early Economic Effects: A Global VAR Analysis of Cross-Country Interdependencies – Download PDF
by 
Milani, Fabio

625 Feeling Richer and Happier? Self-Perceived Economic Welfare and Life Satisfaction: Evidence of ‘Easterlin Paradox’ from Russian Longitudinal Data – Download PDF
by 
Jin, Olivia S. & Wunnava, Phanindra V.

624 Jobs Cronyism in Public-Sector Firms – Download PDF
by 
Martins, Pedro S.

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  

DP of the Month August

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Suffering and prejudice: Do negative emotions predict immigration concerns? A new GLO Discussion Paper by GLO Fellow Sumit Deole and Yue Huang

A new GLO Discussion Paper using data for Germany finds that negative emotions are statistically and significantly associated with the respondent’s immigration concerns.

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. 644, 2020

Suffering and prejudice: Do negative emotions predict immigration concerns? – Download PDF
by
Deole, Sumit S. & Huang, Yue

GLO Fellow Sumit S. Deole

Author Abstract: Despite being a regular suspect, a causal role of residents’ emotions in predicting their opposition to international immigration has not been investigated. Using the individual-level panel data from Germany, we study the impact of the individual’s experience of negative emotions (sadness, fear, and anger) on immigration concerns and bridge this gap in the literature. After controlling for person fixed effects and a battery of individual-level and macroeconomic controls, we find that negative emotions are statistically and significantly associated with the respondent’s immigration concerns. The association holds for male as well as female respondents. To estimate the causal effects of negative emotions, we exploit the exogenous variation in negative emotions induced by the death of a parent or the change in averages of daily temperature and employ IV fixed effects regressions. Our findings suggest that, while within-person changes in the respondent’s feelings of anger affect immigration concerns among all respondents, the feelings of sadness and fear affect immigration concerns only among females. The impact of sadness and fear is more forceful among females who are not always-working during the sample period, older in age, and rarely use online social media.

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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Collateral Damage? Labor Market Effects of Competing with China – at Home and Abroad. A new GLO Discussion Paper by GLO Fellow Pedro Martins & Colleagues.

A new GLO Discussion Paper finds for Portugal that workers’ earnings and employment are significantly negatively affected by China’s competition, but only through the indirect ’market-stealing’ channel. In contrast to earlier evidence, the direct effects of Chinese imports are mostly non-significant.

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. 645, 2020

Collateral Damage? Labour Market Effects of Competing with China – at Home and AbroadDownload PDF
by
Cabral, Sónia & Martins, Pedro S. & Pereira dos Santos, João & Tavares, Maria

GLO Fellow Pedro Martins

Author Abstract: The increasing range and quality of China’s exports is a major development internationally with potentially far-reaching effects. In this paper, on top of the direct labor market effects of imports from China studied in previous research, we also measure the indirect effects stemming from increased export competition in third markets. Our findings, based on matched employer-employee data of Portugal covering the 1991-2008 period, indicate that workers’ earnings and employment are significantly negatively affected by China’s competition, but only through the indirect ’market-stealing’ channel. In contrast to earlier evidence, the direct effects of Chinese imports are mostly non-significant. The results are robust to a number of checks and also highlight particular groups more affected by indirect competition, including women, older and less educated workers, and workers in larger, older and domestic firms.

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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Self-Selection in Physical and Mental Health among Older Intra-European Migrants. A new Discussion Paper by GLO Fellows Amelie F. Constant & Nadja Milewski

A new GLO Discussion Paper studies both the physical and mental dimensions of health among European-born emigrants over 50, who originate from seven European countries and now live elsewhere in 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. 643, 2020

Self-Selection in Physical and Mental Health among Older Intra-European Migrants Download PDF
by
Constant, Amelie F. & Milewski, Nadja

GLO Fellows Amelie F. Constant & Nadja Milewski

Author Abstract: The Healthy Immigrant Paradox found in the literature by comparing the health of immigrants to that of natives in the host country, may suffer from serious cultural biases. Our study evades such biases by utilizing a destination-origin framework, in which we compare the health of emigrants to that of their compatriots who stay in the country of origin. Isolating cultural effects can best gauge self-selection and host country effects on the health of emigrants with longer time abroad. We study both the physical and mental dimensions of health among European-born emigrants over 50, who originate from seven European countries and now live elsewhere in Europe. We use the Survey of Health, Ageing and Retirement in Europe and apply multi-level modeling. Regarding the physical health we find positive self-selection, beneficial adaptation effects, and effects from other observables for some but not all countries. With the notable exception of the German émigrés, we cannot confirm selection in mental health, while additional years abroad have only weak effects. Overall, living abroad has some favorable effects on the health of older emigrants. The economic similarity of countries and the free intra-European mobility mitigate the need for initial self-selection in health and facilitate the migration experience abroad.

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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Entrepreneurship Education and Teacher Training in Rwanda. A new GLO Discussion Paper by GLO Fellows Moussa P. Blimpo & Todd Pugatch.

A new GLO Discussion Paper studies how a comprehensive teacher training program affects the delivery of a major entrepreneurship curriculum reform in Rwanda.

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. 642, 2020

Entrepreneurship Education and Teacher Training in Rwanda Download PDF
by
Blimpo, Moussa P. & Pugatch, Todd

GLO Fellows Moussa P. Blimpo & Todd Pugatch

Author Abstract: We assess, via an experiment across 207 secondary schools, how a comprehensive teacher training program affects the delivery of a major entrepreneurship curriculum reform in Rwanda. The reform introduced interactive pedagogy and a focus on business skills in the country’s required upper secondary entrepreneurship course. In addition to the government’s standard training, a random sample of schools received intensive training organized by an NGO for two years. The training consisted of (i) six training sessions during school breaks, ii) exchange visits each term where teachers provided feedback to their peers, and (iii) outreach and support from NGO staff at least twice per year. The program increased teachers’ use of active instruction, consistent with the reform’s features. These effects on pedagogy did not translate into improvements in student academic outcomes or skills. Treated students increased their participation in businesses by 5 percentage points, or 17% of the control mean, with a commensurate decrease in wage employment, and no effect on overall income. These results suggest substitution between entrepreneurship and employment among students in treated schools.

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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Schooling Forsaken: Education and Migration. A new GLO Discussion Paper by Ilhom Abdulloev & GLO Fellows Gil S. Epstein and Ira Gang.

A new GLO Discussion Paper studies the consequences of forsaken schooling resulting from opportunities abroad taken by emigrants from Tajikistan.

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. 641, 2020

Schooling Forsaken: Education and Migration – Download PDF
by
Abdulloev, Ilhom & Epstein, Gil S. & Gang, Ira N.

GLO Fellows Gil S. Epstein & Ira Gang

Author Abstract: We examine the phenomenon of forsaken schooling resulting from opportunities abroad. The brain-drain/gain literature takes as its starting point the migration of educated/professional labor from poor origin countries to richer host countries. While high-skilled emigration is troubling, even more so is that many international migrants accept low-skilled positions in host countries. Their willingness to do so arises from very large host-home earnings differentials. At home this can lead to reduced educational investment as people forgo schooling because of opportunities to migrate to high paying low-skilled jobs. This suggests possible time-inconsistencies between short-run economic gains from migration and negative long-term effects from missing human-capital investment. We analyze data from Tajikistan, where approximately one-third of the labor force works outside of the country. Our empirical results establish circumstances under forsaken schooling occurs, leaving trade-offs that policymakers’ need consider.

Featured image: Photo-by-Element5-Digital-on-Unsplash

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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The Economics of Happiness. New GLO Discussion Paper by GLO Fellows Carol Graham & Milena Nikolova

A new GLO Discussion Paper provides an overview of the Happiness Economics approach and outlines the promises and pitfalls of subjective well-being measures.

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. 640, 2020

The Economics of Happiness – Download PDF
by
Nikolova, Milena & Graham, Carol

GLO Fellows Carol Graham & Milena Nikolova

Author Abstract: Welfare and well-being have traditionally been gauged by using income and employment statistics, life expectancy, and other objective measures. The Economics of Happiness, which is based on people’s reports of how their lives are going, provides a complementary yet radically different approach to studying human well-being. Typically, subjective well-being measures include positive and negative feelings (e.g., momentary experiences of happiness or stress), life evaluations (e.g., life satisfaction), and feelings of having a life purpose. Both businesses and policymakers now increasingly make decisions and craft policies based on such measures. This chapter provides an overview of the Happiness Economics approach and outlines the promises and pitfalls of subjective well-being measures.

Featured image: Photo-by-Elijah-Hail-on-Unsplash

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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Innovative Drivers of External Competitiveness for Small Businesses during the Great Recession. A new GLO Discussion Paper by GLO Fellows Emanuele Brancati & Dario Guarascio and colleagues.

A new GLO Discussion Paper documents not only the strict correlation between internationalization and innovative activities but also a positive change of attitude of Italian firms towards these strategies.

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. 639, 2020

In Times of Trouble: Innovative Drivers of External Competitiveness for Small Businesses during the Great Recession – Download PDF
by
Brancati, Emanuele & Brancati, Raffaele & Guarascio, Dario & Zanfei, Antonello

GLO Fellows Emanuele Brancati & Dario Guarascio

Author Abstract: This paper analyzes the main drivers of external competitiveness in times of crisis for small and medium enterprises (SMEs). We focus on the Italian experience in the midst of the financial and sovereign-debt crisis, and present robust evidence based on a comprehensive survey of Italian companies in the manufacturing and production service sectors (the MET dataset). Overall, our results confirm the high degree of heterogeneity of the Italian system and the differences between internationalized and domestic companies in terms of performance as well as structural and behavioral dimensions. In particular, data highlight not only the strict correlation between internationalization and innovative activities but also a positive change of attitude of Italian firms towards these strategies. Our analysis shows that, whilst structural factors play a key role for external competitiveness, other critical firm-level aspects trigger superior performances, especially strategic profiles, technological capabilities, and proactive behaviors such as innovativeness and R&D investment. Importantly, we document disproportionate effects of innovation for smaller and less productive companies. This points at dynamic strategies as a potential tool to fill the gap between larger/more productive companies and the set of less structured firms, a segment representing an ideal target for policy measures.

Featured image: Photo-by-Alex-Knight-on-Unsplash

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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Trade Liberalization and the Gender Employment Gap in China. A new GLO Discussion Paper by GLO Fellows Krisztina Kis-Katos & Minghai Zhou and Feicheng Wang.

A new GLO Discussion Paper shows that increasing import competition has kept more females in the Chinese workforce.

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. 638, 2020

Trade Liberalization and the Gender Employment Gap in China – Download PDF
by
Wang, Feicheng & Kis-Katos, Krisztina & Zhou, Minghai

GLO Fellows Krisztina Kis-Katos & Minghai Zhou

Author Abstract: This paper investigates the impact of import liberalization induced labor demand shocks on male and female employment in China. Combining data from population and firm censuses between 1990 and 2005, we relate prefecture-level employment by gender to the exposure to tariff reductions on locally imported products. Our empirical results show that increasing import competition has kept more females in the workforce, reducing an otherwise growing gender employment gap in the long run. These dynamics were present both in local economies as a whole and among formal private industrial firms. Examining channels through which tariff reductions differentially affect males and females, we find that trade-induced competitive pressures contributed to a general expansion of female-intensive industries, a shift in sectoral gender segregation, reductions in gender discrimination in the labor market, technological upgrading through computerization, and general income growth.

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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To abate, or not to abate? A strategic approach on green production in Cournot and Bertrand duopolies. A new Discussion Paper by GLO Fellow Luca Gori and colleagues.

A new GLO Discussion Paper provides a theoretical analysis to study the firms’ strategic choice of adopting an abatement technology in an environment with pollution externalities when the government levies an emission tax to incentivize firms undertaking emission-reducing actions.

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. 636, 2020

To abate, or not to abate? A strategic approach on green production in Cournot and Bertrand duopolies – Download PDF
by
Buccella, Domenico & Fanti, Luciano & Gori, Luca

GLO Fellow Luca Gori

Author Abstract: This research analyses the firms’ strategic choice of adopting an abatement technology in an environment with pollution externalities when the government levies an emission tax to incentivise firms undertaking emission-reducing actions. A set of different Nash equilibria – ranging from dirty to green production – arises in both quantity-setting (Cournot) and price-setting (Bertrand) duopolies depending on the societal awareness towards environmental quality and the relative importance of technological progress in abatement adopted by firms. A synthesis of the main results is the following: if the awareness of the society towards a clean environment is relatively low (resp. high) and the index measuring the relative cost of abatement is relatively high (resp. low), the strategic interaction between two independent, competing and selfish (profit maximizing) firms playing the abatement game leads to not to abate [NA] (resp. to abate [A]) as the Pareto efficient outcome: no conflict exists between self-interest and mutual benefit to do not undertake (resp. to undertake) emission-reducing actions. Multiple Nash equilibria or a “green” prisoner’s dilemma may also emerge in pure strategies. When the choice of adopting a green technology is a deadlock (anti-prisoner’s dilemma), the society is better off as social welfare under A is always larger than under NA because pollution and environmental damage are higher in the latter scenario. These findings suggest that living in a sustainable environment challenges the development of clean technologies through ad hoc R&D and the improvement of public education to achieve an eco-responsible attitude.

Featured image: Photo-by-Dawid-Zawiła-on-Unsplash

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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Big Data and Happiness. A new Discussion Paper by GLO Fellows Stephanie Rossouw and Talita Greyling.

A new GLO Discussion Paper argues that big data can measure happiness and help making good policy decisions.

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. 634, 2020

Big Data and Happiness – Download PDF
by
Rossouw, Stephanie & Greyling, Talita

GLO Fellows Stephanie Rossouw and Talita Greyling

Author Abstract: The pursuit of happiness. What does that mean? Perhaps a more prominent question to ask is, ‘how does one know whether people have succeeded in their pursuit’? Survey data, thus far, has served us well in determining where people see themselves on their journey. However, in an everchanging world, one needs high-frequency data instead of data released with significant time-lags. High-frequency data, which stems from Big Data, allows policymakers access to virtually real-time information that can assist in effective decision-making to increase the quality of life for all. Additionally, Big Data collected from, for example, social media platforms give researchers unprecedented insight into human behavior, allowing significant future predictive powers.

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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Contract structure, time preference, and technology adoption. A new Discussion Paper by GLO Fellow Shyamal Chowdhury, Joeri Smits and Qigang Sun.

A new GLO Discussion Paper using randomizes data from Bangladesh suggests offering commitment and screening applicants on present bias to enhance agricultural technology adoption.

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. 633, 2020

Contract structure, time preference, and technology adoption – Download PDF
by
Chowdhury, Shyamal & Smits, Joeri & Sun, Qigang

GLO Fellow Shyamal Chowdhury

Author Abstract: Do constraints to technology adoption vary by behavioral traits? We randomize 150 villages in Bangladesh into being offered standard microcredit, loans with a grace period, the choice between those two contracts, and control. No discernible average effects are detected on the adoption of mechanized irrigation, hybrid seeds, and chemical fertilizers. However, credit access enhances technology adoption among present-biased farmers, whose output and profits increase. These effects are driven by the standard contract and choice villages, as present-biased farmers select out of the grace period contract. This suggests offering commitment and screening applicants on present bias to enhance agricultural technology adoption.

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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Artificial Intelligence, Income Distribution and Economic Growth. A new Discussion Paper by GLO Fellow Wim Naudé and Thomas Gries.

A new GLO Discussion Paper studies the implications of Artificial Intelligence (AI) in an endogenous growth model. It can explain why advanced countries tend to experience, despite much AI hype, the simultaneous existence of rather high employment with stagnating wages, productivity, and GDP.

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. 632, 2020

Artificial Intelligence, Income Distribution and Economic Growth – Download PDF
by
Gries, Thomas & Naudé, Wim

GLO Fellow Wim Naudé

Wim Naudé

Author Abstract: The economic impact of Artificial Intelligence (AI) is studied using a (semi) endogenous growth model with two novel features. First, the task approach from labor economics is reformulated and integrated into a growth model. Second, the standard representative household assumption is rejected, so that aggregate demand restrictions can be introduced. With these novel features it is shown that (i) AI automation can decrease the share of labor income no matter the size of the elasticity of substitution between AI and labor, and (ii) when this elasticity is high, AI will unambiguously reduce aggregate demand and slow down GDP growth, even in the face of the positive technology shock that AI entails. If the elasticity of substitution is low, then GDP, productivity and wage growth may however still slow down, because the economy will then fail to benefit from the supply-side driven capacity expansion potential that AI can deliver. The model can thus explain why advanced countries tend to experience, despite much AI hype, the simultaneous existence of rather high employment with stagnating wages, productivity, and GDP.

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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The intensity of COVID-19 Non-Pharmaceutical Interventions and labor market outcomes in the public sector. A new Discussion Paper by GLO Fellow Miriam Marcén and Marina Morales.

A new GLO Discussion Paper finds that public sector employment is affected significantly.

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. 637, 2020

The intensity of COVID-19 Non-Pharmaceutical Interventions and labor market outcomes in the public sector – Download PDF
by
Marcén, Miriam & Morales, Marina

GLO Fellow Miriam Marcén

Author Abstract: This paper examines whether the intensity of Non-Pharmaceutical Interventions (NPIs) during the COVID-19 pandemic has differentially impacted the public sector labor market outcomes. This extends the analysis of the already documented negative economic consequences from COVID-19 and their dissimilarities with a typical economic crisis. To capture the intensity of the NPIs, we build a novel index (COVINDEX) using daily information on NPIs merged with state level data on out of home mobility (Google data) to show that among individuals living in a typical state, the NPIs enforcement during the COVID-19 reduces the likelihood of being employed (at work) by 5% with respect to the pre-COVID period and the hours worked by 1.3% using data on labor market outcomes from the monthly Current Population Survey and difference-in-difference models. This is a sizable amount representing the sector with the higher job security during the pandemic. Public sector workers in a typical state are 4 percentage points more likely to be at work than salaried workers in the private sector and 7 percentage points more likely than self-employed workers (the worst so far). Our results are robust to endogeneity of the NPIs measures and present empirical evidence of heterogeneity in the response to the NPIs with those in the local employment being the hardest hit.

More from the GLO Coronavirus Cluster

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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Short-term Labor Market Effects of COVID-19 and the Associated National Lockdown in Australia. A new Discussion Paper by GLO Fellow Cahit Guven and colleagues.

A new GLO Discussion Paper finds that the pandemic and the lockdown increased underemployment and job search efforts significantly. Immigrants and individuals with shorter job tenure or occupations unsuitable for remote work were hit the hardest in terms of unemployment.

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. 635, 2020

Short-term Labour Market Effects of COVID-19 and the Associated National Lockdown in Australia: Evidence from Longitudinal Labour Force Survey Download PDF
by
Guven, Cahit & Sotirakopoulos, Panagiotis & Ulker, Aydogan

GLO Fellow

Author Abstract: We examine the short-term labor market effects of COVID-19 and the associated national lockdown in Australia by estimating person-fixed-effects models using the Longitudinal Labour Force Survey. COVID-19 decreased labor force participation (LFP) by 2.1%, increased unemployment by 1.1% and reduced weekly working hours by 1.1. The national lockdown decreased LFP by 3.3%, increased unemployment by 1.7%, and decreased weekly working hours by 2.5. The probability of working on Fridays decreased by 10% while working fewer hours due to being on leave, work shifts, not having enough work and losing jobs all increased due to the lockdown. The pandemic and the lockdown increased underemployment and job search efforts significantly. In terms of heterogeneity of these effects, our analysis shows that those with up to high-school education experienced larger reductions in their LFP and working hours than others. However, immigrants and individuals with shorter job tenure or occupations unsuitable for remote work were hit the hardest in terms of unemployment.

More from the GLO Coronavirus Cluster

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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Entrepreneurial Recovery from COVID-19: A new Discussion Paper by GLO Fellow Wim Naudé

A new GLO Discussion Paper argues that there is a strong possibility that the unintended damage of anti-COVID-19 measures to entrepreneurship, innovation and growth could be persistent.

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. 631, 2020

Entrepreneurial Recovery from COVID-19: Decentralization, Democratization, Demand, Distribution, and Demography Download PDF
by
Naudé, Wim

GLO Fellow Wim Naudé

Wim Naudé

Author Abstract: This paper studies the social and economic responses to the COVID-19 pandemic in a large sample of countries. I stress, in particular, the importance of countries’ interconnections to understand the spread of the virus. I estimate a Global VAR model and exploit a dataset on existing social connections across country borders. I show that social networks help explain not only the spread of the disease, but also cross-country spillovers in perceptions about coronavirus risk and in social distancing behavior. In the early phases of the pandemic, perceptions of coronavirus risk in most countries are affected by pandemic shocks originating in Italy. Later, the U.S., Spain, and the U.K. play sizable roles. Social distancing responses to domestic and global health shocks are heterogeneous; however, they almost always exhibit delays and sluggish adjustments. Unemployment responses vary widely across countries. Unemployment is particularly responsive to health shocks in the U.S. and Spain, while unemployment fluctuations are attenuated almost everywhere else.

More from the GLO Coronavirus Cluster

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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True Covid-19 mortality rates from administrative data: A new Discussion Paper by GLO Fellow Domenico Depalo.

A new GLO Discussion Paper demonstrates how to use administrative data to estimate the number of deaths, the number of infections, and mortality rates from Covid-19 in Lombardia, the hot spot of the disease in Italy and 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. 630, 2020

True Covid-19 mortality rates from administrative data – Download PDF
by
Depalo, Domenico

Forthcoming: Journal of Population Economics

GLO Fellow Domenico Depalo

Author Abstract: In this paper I use administrative data to estimate the number of deaths, the number of infections, and mortality rates from Covid-19 in Lombardia, the hot spot of the disease in Italy and Europe. The information is relevant for the policy maker, to make decisions, and for the public, to adopt appropriate behaviors. As the available data suffer from sample selection bias I use partial identification to derive these quantities. Partial identification combines assumptions with the data to deliver a set of admissible values, or bounds. Stronger assumptions yield stronger conclusions, but decrease the credibility of the inference. Therefore, I start with assumptions that are always satisfied, then I impose increasingly more restrictive assumptions. Using my preferred bounds, during March 2020 in Lombardia there were between 10,000 and 18,500 more deaths than before 2020. The narrowest bounds of mortality rates from Covid-19 are between 0.1% and 7.5%, much smaller than the 17.5% discussed for long time. This finding suggests that the case of Lombardia may not be as special as some argue.

More from the GLO Coronavirus Cluster

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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Firm behavior during an epidemic. A new Discussion Paper by GLO Fellow Vahagn Jerbashian and Luiz Brotherhood

A new GLO Discussion Paper shows in a theoretical model that firms have incentives to fight against infections and can do so very effectively by increasing teleworking and rotating employees between on-site work, teleworking, and leave.

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. 629, 2020

Firm behavior during an epidemic – Download PDF
by
Brotherhood, Luiz & Jerbashian, Vahagn

GLO Fellow Vahagn Jerbashian

Author Abstract: We derive a model in which firms operate in an epidemic environment and internalize infections among their employees in the workplace. The model is calibrated to fit the properties of the Covid-19 epidemic. We show that firms have incentives to fight against infections and can do so very effectively by increasing teleworking and rotating employees between on-site work, teleworking, and leave. Subsidies to sick leave reduce the cost of sick workers and raise workplace infections. Furlough policies are successful in reducing infections and saving lives. Firms delay and weaken the fight against infections during economic downturns.

Featured image: Photo-by-Adli-Wahid-on-Unsplash

More from the GLO Coronavirus Cluster

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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COVID-19 Outbreak, Social Response, and Early Economic Effects: A Global VAR Analysis of Cross-Country Interdependencies. A new Discussion Paper by GLO Fellow Fabio Milani.

A new GLO Discussion Paper finds that social networks help explain not only the spread of the disease, but also cross-country spillovers in perceptions about coronavirus risk and in social distancing behavior.

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. 626, 2020

COVID-19 Outbreak, Social Response, and Early Economic Effects: A Global VAR Analysis of Cross-Country Interdependencies Download PDF
by
Milani, Fabio

GLO Fellow Fabio Milani

Author Abstract: This paper studies the social and economic responses to the COVID-19 pandemic in a large sample of countries. I stress, in particular, the importance of countries’ interconnections to understand the spread of the virus. I estimate a Global VAR model and exploit a dataset on existing social connections across country borders. I show that social networks help explain not only the spread of the disease, but also cross-country spillovers in perceptions about coronavirus risk and in social distancing behavior. In the early phases of the pandemic, perceptions of coronavirus risk in most countries are affected by pandemic shocks originating in Italy. Later, the U.S., Spain, and the U.K. play sizable roles. Social distancing responses to domestic and global health shocks are heterogeneous; however, they almost always exhibit delays and sluggish adjustments. Unemployment responses vary widely across countries. Unemployment is particularly responsive to health shocks in the U.S. and Spain, while unemployment fluctuations are attenuated almost everywhere else.

More from the GLO Coronavirus Cluster

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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Sexual Orientation, Gender Identity and Labour Market Outcomes: New Patterns and Insights. A new GLO Discussion Paper by GLO Fellow Nick Drydakis & Klaus F. Zimmermann

A new GLO Discussion Paper reviews new insights on the economics of sexual orientation, gender identity and their consequences at work.

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. 627, 2020

Sexual Orientation, Gender Identity and Labour Market Outcomes: New Patterns and Insights – Download PDF
by
Drydakis, Nick & Zimmermann, Klaus F.

GLO Fellow Nick Drydakis

Author Abstract: The paper initiates a research agenda to study new developments of the effects of sexual orientation and gender identity on the labor market performance of individuals. It presents a selection of the small previous literature to establish the important spectrum of topics and identify important challenges to compare them to the papers in the special issue of the International Journal of Manpower (Volume 41, Issue 6) dedicated to Sexual Orientation and the Labor Market. We rely on quantitative empirical studies and compare findings along a variety of topics such as, earnings patterns, occupational access constraints, relationships between subjective well-being indicators and marriage status, workplace experiences and family support all along the sexual orientation and gender identity issues. Contrary to the earlier literature, the most recent studies have found that gay men received either the same wages or higher wages compared to heterosexual men, while lesbian women have been found to receive lower wages in comparison to heterosexual women. We reveal the new evidence on this emerging puzzling pattern of sexual orientation and wages, but highlight also other innovations in the special issue: (i) the first ever meta-analysis of field experiments on occupational access discrimination based on sexual orientation, (ii) utilizing the moderating role of marital status and family support, (iii) studying occupational access discrimination based on gender identity, and (iv) evaluate how distastes, stereotypes, and positive workplace actions affect trans people’s labor market performance. The article attempts to provide a fast and insightful guidance to the major challenges, received wisdom and open issues in the field of sexual orientation and gender identity at work and in the labor market. We summarize the implications provided in all chapters to develop the best evidence-based policy making.

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;

Conscription and Educational Outcomes: Quasi-Experimental Evidence from the Republic of Cyprus. A new Discussion Paper by GLO Fellow Nikolaos Theodoropoulos and colleagues.

A new GLO Discussion Paper studies conscription in the Republic of Cyprus and finds that an increase in the length of the army service has a positive 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. 628, 2020

Conscription and Educational Outcomes: Quasi-Experimental Evidence from the Republic of Cyprus – Download PDF

by
Savčić, Ružica & Theodoropoulos, Nikolaos & Xefteris, Dimitrios

GLO Fellow Nikolaos Theodoropoulos

Author Abstract: Peacetime military service has both positive and negative effects on human capital. While it depreciates academic abilities it also enhances non-cognitive skills. The net effect of conscription is hard to identify due to issues of self-selection, endogenous timing and omitted variables bias. We exploit the compulsory service of men in the Republic of Cyprus prior to university enrollment, to deal with the first two problems. After controlling for prior academic performance, admission age, and other relevant controls, we find that the duration of service has a positive effect on university test scores. Two exogenous reforms on the duration of the service allow us to deal with omitted variables bias. We estimate difference-in-difference models, where female students act as a control group, and show that a reduction (increase) in the length of the army service has a negative (positive) effect on male 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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Self-Perceived Economic Welfare and Life Satisfaction: Evidence of ‘Easterlin Paradox’ from Russian Longitudinal Data. New GLO Discussion Paper by Olivia S. Jin and GLO Fellow Phani Wunnava

A new GLO Discussion Paper suggests that a society with high income inequality, in which a small proportion of the population earns a large proportion of society’s income, will have lower collective life satisfaction.

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. 625, 2020

Feeling Richer and Happier? Self-Perceived Economic Welfare and Life Satisfaction: Evidence of ‘Easterlin Paradox’ from Russian Longitudinal Data – Download PDF

by Jin, Olivia S. & Wunnava, Phanindra V.

GLO Fellow Phanindra V. Wunnava

Author Abstract: This study investigates why the strong form of the spatial equilibrium is weakly supported in the literature. Using a discrete choice model, it shows that the strong form of the spatial equilibrium is rarely observed because workers are imperfectly mobile from the perspective of researchers. Incorporating the discrete choice model, a Markov chain is used to model the spatial dynamics of the population distribution. For a given location choice set, the population distribution is shown to converge to a unique spatial steady state. Microdata from the American Community Survey show that the model assumption is reasonable and support the model predictions.

Featured image: Photo-by-Elijah-Hail-on-Unsplash

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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Jobs Cronyism in Public-Sector Firms. New Discussion Paper by GLO Fellow Pedro S. Martins

A new GLO Discussion Paper finds for Portugal that public-sector appointments increase significantly over the months just after elections but only if the new government is of a different political color than its predecessor suggesting a misallocation of public resources.

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. 624, 2020

Jobs Cronyism in Public-Sector Firms – Download PDF
by
Martins, Pedro S.

GLO Fellow Pedro S. Martins

Author Abstract: Politicians can use the public sector to give jobs to cronies, at the expense of the efficiency of those organizations and general welfare. In this paper, we regress monthly hires across all firms in Portugal with some degree of public ownership on the country’s 1980-2018 political cycle. We find that public-sector appointments increase significantly over the months just after elections but only if the new government is of a different political color than its predecessor. These results are consistent with a simple model of cronyism and hold in multiple robustness checks. Overall, we find our evidence to be consistent with politically-induced misallocation of public resources.

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;

GLO Discussion Paper of the Month July is on Unreported Family Workers in the Pre-Civil War United States. Authored by GLO Fellow Barry Chiswick & RaeAnn Halenda Robinson

The GLO Discussion Paper of the Month of July finds that the inclusion of family workers more than triples the free female labor force participation rate in the 1860 Census of the USA, from 16 percent to 56 percent, which is comparable to today’s rate (57 percent in 2018).

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: July

GLO DP No. 587 Women at Work in the Pre-Civil War United States: An Analysis of Unreported Family Workers – Download PDF
by 
Chiswick, Barry R. & Robinson, RaeAnn Halenda  

GLO Fellow Barry Chiswick

Author Abstract: Rates of labor force participation in the US in the second half of the nineteenth century among free women were exceedingly (and implausibly) low, about 11 percent. This is due, in part, to social perceptions of working women, cultural and societal expectations of female’s role, and lack of accurate or thorough enumeration by Census officials. This paper develops an augmented free female labor force participation rate for 1860. It is calculated by identifying free women (age 16 and older) who were likely providing informal and unenumerated labor for market production in support of a family business, that is, unreported family workers. These individuals are identified as not having a reported occupation, but are likely to be working on the basis of the self-employment occupation of other relatives in their households. Family workers are classified into three categories: farm, merchant, and craft. The inclusion of this category of workers more than triples the free female labor force participation rate in the 1860 Census, from 16 percent to 56 percent, which is comparable to today’s rate (57 percent in 2018).

GLO Discussion Papers submitted in July 2020

623 Imperfect Mobility – Download PDF
by 
Cai, Zhengyu

622 Is Covid-19 “The Great Leveler”? The Critical Role of Social Identity in Lockdown-induced Job Losses – Download PDF
by 
Deshpande, Ashwini & Ramachandran, Rajesh

621 The labour market for native and international PhD students: similarities, differences, and the role of (university) employers – Download PDF
by 
Tani, Massimiliano

620 Divergence in Labour Force Growth: Should Wages and Prices Grow Faster in Germany? – Download PDF
by 
Beissinger, Thomas & Hellier, Joël & Marczak, Martyna

619 Health Economics of Genetic Distance – Download PDF
by 
Jelnov, Pavel

618 Excess Mortality as a Predictor of Mortality Crises: The Case of COVID-19 in Italy – Download PDF
by 
Ceriani, Lidia & Verme, Paolo

617 Erasmus Exchange Program – A Matter of (Relatively) Older Students – Download PDF
by 
Carlsson, M. & Fumarco, L. & Gibbs, B. G.

616 The Effect of COVID-19 Lockdown on Mobility and Traffic Accidents: Evidence from Louisiana – Download PDF
by 
Barnes, Stephen R. & Beland, Louis-Philippe & Huh, Jason & Kim, Dongwoo

615 Is labour market discrimination against ethnic minorities better explained by taste or statistics? A systematic review of the empirical evidence – Download PDF
by 
Lippens, Louis & Baert, Stijn & Ghekiere, Abel  & Verhaeghe, Pieter-Paul & Derous, Eva

614 Unemployment of Unskilled Labor due to COVID-19 led Restriction on Migration and Trade – Download PDF
by 
Mandal, Biswajit & Chaudhuri, Saswati & Prasad, Alaka Shree

613 Reacting quickly and protecting jobs: The short-term impacts of the COVID-19 lockdown on the Greek labor market – Download PDF
by 
Betcherman, Gordon & Giannakopoulos, Nicholas & Laliotis, Ioannis & Pantelaiou, Ioanna & Testaverde, Mauro & Tzimas, Giannis

612 As if it weren’t hard enough already: Breaking down hiring discrimination following burnout – Download PDF
by 
Sterkens, Philippe & Baert, Stijn & Rooman, Claudia & Derous, Eva

611 Ethnic Diversity, Concentration of Political Power and the Curse of Natural Resources – Download PDF
by 
Wadho, Waqar & Hussain, Sadia

610 The iceberg decomposition: a parsimonious way to map the health of labour markets – Download PDF
by 
Baert, Stijn

609 Social Remittances – Download PDF
by 
Tuccio, Michele & Wahba, Jackline

608 A Global City in a Global Pandemic: Assessing the Ongoing Impact of COVID Induced Trends on London’s Economic Sectors – Download PDF
by 
Anderson, Dylan & Hesketh, Rachel & Kleinman, Mark & Portes, Jonathan

607 The Covid-19 Pandemic and Lockdown: First Order Effects on Gender Gaps in Employment and Domestic Time Use in India – Download PDF
by 
Deshpande, Ashwini

606 Does the COVID-19 Pandemic Improve Global Air Quality? New Cross-national Evidence on Its Unintended Consequences – Download PDF
by 
Dang, Hai-Anh H. & Trinh, Trong-Anh

605 The impact of computer-assisted personal interviewing on survey duration, quality, and cost: Evidence from the Viet Nam Labor Force Survey – Download PDF
by 
Rao, Lakshman Nagraj & Gentile, Elisabetta & Pipon, Dave & Roque, Jude David & Thuy, Vu Thi Thu

604 The Distributional Impact of Recurrent Immovable Property Taxation in Greece – Download PDF
by 
Andriopoulou, Eirini & Kanavitsa, Eleni & Leventi, Chrysa & Tsakloglou, Panos

603 COVID-19, Race, and Redlining – Download PDF
by 
Bertocchi, Graziella & Dimico, Arcangelo

602 Wage Losses and Inequality in Developing Countries: labor market and distributional consequences of Covid-19 lockdowns in Turkey – Download PDF
by 
Duman, Anil

601 A Literature Review of the Economics of COVID-19 – Download PDF
by 
Brodeur, Abel & Gray, David & Islam, Anik & Bhuiyan, Suraiya Jabeen

600 Does the Rise of Robotic Technology Make People Healthier? – Download PDF
by 
Gunadi, Christian & Ryu, Hanbyul

599 Assessing the role of women in tourism related sectors in the Caribbean – Download PDF
by 
Pastore, Francesco & Webster, Allan & Hope, Kevin

598 A Signal of (Train)ability? Grade Repetition and Hiring Chances – Download PDF
by 
Baert, Stijn & Picchio, Matteo

597 Promoting Female Interest in Economics: Limits to Nudges – Download PDF
by 
Pugatch, Todd & Schroeder, Elizabeth

596 Sometimes your best just ain’t good enough: The worldwide evidence on subjective well-being efficiency – Download PDF
by 
Nikolova, Milena & Popova, Olga

595 Stuck at a crossroads? The duration of the Italian school-to-work transition – Download PDF
by 
Pastore, Francesco & Quintano, Claudio & Rocca, Antonella

594 Childhood Circumstances and Health Inequality in Old Age: Comparative Evidence from China and the United States – Download PDF
by 
Chen, Xi & Yan, Binjian & Gill, Thomas M.

593 China’s Economic Demography Transition Strategy: A Population Weighted Approach to the Economy and Policy – Download PDF
by 
Johnston, Lauren A.

592 Economic preferences across generations and family clusters: A large-scale experiment – Download PDF
by 
Chowdhury, Shyamal & Sutter, Matthias & Zimmermann, Klaus F.

591 Effects of Peers and Rank on Cognition, Preferences, and Personality – Download PDF
by 
Dasgupta, Utteeyo & Mani, Subha & Sharma, Smriti & Singhal, Saurabh

590 Who Goes on Disability when Times are Tough? The Role of Work Norms among Immigrants – Download PDF
by 
Furtado, Delia & Papps, Kerry L. & Theodoropoulos, Nikolaos

589 Immigration Policy and Immigrants’ Sleep. Evidence from DACA – Download PDF
by 
Giuntella, Osea & Lonsky, Jakub & Mazzona, Fabrizio & Stella, Luca

588 Preserving job matches during the COVID-19 pandemic: firm-level evidence on the role of government aid – Download PDF
by 
Bennedsen, Morten & Larsen, Birthe & Schmutte, Ian & Scur, Daniela

587 Women at Work in the Pre-Civil War United States: An Analysis of Unreported Family Workers – Download PDF
by 
Chiswick, Barry R. & Robinson, RaeAnn Halenda

586 Trick or treat? The Brexit effect on immigrants’ wellbeing in the UK – Download PDF
by
 Rienzo, Cinzia

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  

DP of the Month July

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Imperfect Mobility. A new GLO Discussion Paper by GLO Fellow Zhengyu Cai

A new GLO Discussion Paper uses a Markov chain to model the spatial dynamics of the population distribution for microdata from the American Community Survey.

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. 623, 2020

Imperfect Mobility – Download PDF
by
Cai, Zhengyu

GLO Fellow Zhengyu Cai

Author Abstract: This study investigates why the strong form of the spatial equilibrium is weakly supported in the literature. Using a discrete choice model, it shows that the strong form of the spatial equilibrium is rarely observed because workers are imperfectly mobile from the perspective of researchers. Incorporating the discrete choice model, a Markov chain is used to model the spatial dynamics of the population distribution. For a given location choice set, the population distribution is shown to converge to a unique spatial steady state. Microdata from the American Community Survey show that the model assumption is reasonable and support the model predictions.

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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The labor market for native and international PhD students. A new GLO Discussion Paper by GLO Fellow Max Tani.

A new GLO Discussion Paper studies the Australian labor market for native and foreign students and finds that acquiring education in the host country does not appear to eliminate uneven labor market outcomes between natives and foreigners.

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. 621, 2020

The labour market for native and international PhD students: similarities, differences, and the role of (university) employers Download PDF
by
Tani, Massimiliano

GLO Fellow Max Tani

Author Abstract: This paper studies the labor market outcomes of native and foreign PhD graduates staying as migrants in Australia, using data on career destinations over the period 1999-2015. Natives with an English-speaking background emerge as benefiting from positive employer discrimination, especially if graduating in Science, Technology, Engineering and Mathematics (STEM), for which they receive a premium that is unrelated to observed characteristics such as gender, age, and previous work experience. In contrast, foreign PhD graduates with a non-English speaking background experience worse labor market outcomes, especially if they work in the university sector. Acquiring education in the host country does not appear to eliminate uneven labor market outcomes between natives and foreigners.

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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Divergence in Labor Force Growth: Should Wages and Prices Grow Faster in Germany? A new GLO Discussion Paper by GLO Fellow Thomas Beissinger and colleagues.

A new GLO Discussion Paper presents a model which shows that wages, prices and real income should grow faster in countries with low increase in their labor force.

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. 620, 2020

Divergence in Labour Force Growth: Should Wages and Prices Grow Faster in Germany? – Download PDF
by
Beissinger, Thomas & Hellier, Joël & Marczak, Martyna

GLO Fellow Thomas Beissinger

Author Abstract: We develop a model which shows that wages, prices and real income should grow faster in countries with low increase in their labor force. If not, other countries experience growing unemployment and/or trade deficit. This result is applied to the case of Germany, which has displayed a significantly lower increase in its labour force than its trade partners, except in the moment of the reunification. By assuming that goods are differentiated according to their country of origin (Armington’s hypothesis), a low growth of the working population constrains the production of German goods, which entails an increase in their prices and in German wages. This mechanism is magnified by the low price elasticity of the demand for German goods. Hence, the German policy of wage moderation could severely constrain other countries’ policy options. The simulations of an extended model which encompasses offshoring to emerging countries and labor market imperfections suggest that (i) the impact of differences in labor force growth upon unemployment in Eurozone countries has been significant and (ii) the German demographic shock following unification could explain a large part of the 1995-2005 German economic turmoil.

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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Health Economics of Genetic Distance. A new GLO Discussion Paper by GLO Fellow Pavel Jelnov.

A new GLO Discussion Paper presents a model where better-off individuals mate genetically close partners, and then use wealth to treat their children’s health problems.

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. 619, 2020

Health Economics of Genetic Distance Download PDF
by
Jelnov, Pavel

GLO Fellow Pavel Jelnov

Author Abstract: In this note, I address the trade-off between children’s health and parental preference toward similarity with children. In my model, better-off individuals mate genetically close partners and then use wealth to treat their children’s health problems, caused by inbreeding depression. As a result, the relationship between parental wealth and children’s health includes decreasing portions. Siblings health inequality is also nonmonotonically related to parental wealth, if parents discriminate in favor of more similar children.

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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Is Covid-19 “The Great Leveler”? The Critical Role of Social Identity in Lockdown-induced Job Losses. A new GLO Discussion Paper by GLO Fellow Ashwini Deshpande & Rajesh Ramachandran

A new GLO Discussion Paper finds that all caste groups lost jobs in the first month of the Covid-19 lockdown, the job losses for lowest-ranked caste are greater by factor of three.

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. 622, 2020

Is Covid-19 “The Great Leveler”? The Critical Role of Social Identity in Lockdown-induced Job Losses – Download PDF
by
Deshpande, Ashwini & Ramachandran, Rajesh

GLO Fellow Ashwini Deshpande

Author Abstract: Using nationally representative panel data for 21,799 individuals between May 2018 and April 2020, this paper investigates whether the Covid-19 pandemic was indeed a “Great Leveler” in the sense that it imposed similar and equivalent labour market shocks on different caste groups. We find that while all caste groups lost jobs in the first month of the lockdown, the job losses for lowest-ranked caste are greater by factor of three. The data shows that the disproportionate effects stems from lower levels of human capital and over-representation in vulnerable jobs for the lowest ranked caste groups in the country.

More from the GLO Coronavirus Cluster

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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Excess Mortality as a Predictor of Mortality Crises: The Case of COVID-19 in Italy. A new GLO Discussion Paper by GLO Fellow Paolo Verme & Lidia Ceriani

A new GLO Discussion Paper using mortality data for Italy finds that the growth in total mortality rates can potentially be used as a statistically reliable predictor of mortality crises.

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. 618, 2020

Excess Mortality as a Predictor of Mortality Crises: The Case of COVID-19 in Italy Download PDF
by
Ceriani, Lidia & Verme, Paolo

GLO Fellow Paolo Verme

Author Abstract: The paper provides initial evidence that excess mortality rates by locality can be used as a statistically reliable predictor of looming mortality crises. Using recently published daily deaths figures for 7,357 Italian municipalities, we estimate the growth in daily mortality rates between the period 2015-2019 and 2020 by province. All provinces that experienced a major mortality shock in mid-March 2020 had increases in mortality rates of 100% or above already in mid-February 2020. This increase was particularly strong for males and older people, two recognizable features of COVID-19. Using panel data models, we find a strong positive and significant association between overall deaths and COVID-19 related deaths, and between early increases in mortality rates in February 2020 for any cause and the March 2020 outbreak in COVID-19 deaths. We conclude that the growth in mortality rates can potentially be used as a statistically reliable predictor of mortality crises, including COVID- 19 crises.

More from the GLO Coronavirus Cluster

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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Is labour market discrimination against ethnic minorities better explained by taste or statistics? A systematic review of the empirical evidence in a new GLO Discussion Paper by GLO Fellow Stijn Baert and colleagues.

A new GLO Discussion Paper surveys the empirical literature to find that taste-based discrimination can better explain ethnic discrimination in hiring than statistical discrimination.

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. 615, 2020

Is labour market discrimination against ethnic minorities better explained by taste or statistics? A systematic review of the empirical evidence – Download PDF
by
Lippens, Louis & Baert, Stijn & Ghekiere, Abel  & Verhaeghe, Pieter-Paul & Derous, Eva

GLO Fellow Stijn Baert

Author Abstract: Scholars have gone to great lengths to chart the incidence of ethnic labour market discrimination. To effectively mitigate this discrimination, however, we need to understand its underlying mechanisms because different mechanisms lead to different counteracting measures. To this end, we reviewed the recent literature that confronts the seminal theories of taste-based and statistical discrimination against the empirical reality. First, we observed that the measurement operationalisation of the mechanisms varied greatly between studies, necessitating the development of a measurement standard. Second, we found that 20 out of 30 studies examining taste-based discrimination and 18 out of 34 studies assessing statistical discrimination produced supportive evidence for said mechanisms. However, (field) experimental research, which predominantly focuses on hiring outcomes, yielded more evidence in favour of taste-based vis-à-vis statistical discrimination, suggesting that the taste-based mechanism might better explain ethnic discrimination in hiring.

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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