Category Archives: Discussion Paper

Inside the NBA Bubble: How Black Players Performed Better without Fans. A new GLO Discussion Paper by GLO Fellow Mauro Caselli and colleagues.

November 1, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds that in the NBA professional basketball league in North America the performance of Black players improved significantly with the absence of fans vis-à-vis White players.

GLO Discussion Paper No. 1178, 2022

Inside the NBA Bubble: How Black Players Performed Better without Fans – Download PDF
by Caselli, Mauro & Falco, Paolo & Somekh, Babak

GLO Fellow Mauro Caselli

Author Abstract: In the NBA, predominantly Black players play in front of predominantly non-Black fans. Using the ‘NBA bubble’, a natural experiment induced by COVID-19, we show that the performance of Black players improved significantly with the absence of fans vis-à-vis White players. This is consistent with Black athletes being negatively affected by racist pressure from mostly non-Black audiences. We dispel several alternative hypotheses. Beyond hurting individual players, fans’ behavior causes significant economic damage to the NBA by lowering the quality of the game.

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PUBLISHED
Vol. 35, Issue 4, October 2022: Journal of Population Economics (JOPE): 15 articles https://link.springer.com/journal/148/volumes-and-issues/35-4
CiteScore of JOPE moves up from 3.9 (2020) to 6.5 (2021). LINK
Similar, its Impact Factor is now 4.7 (2021) after 2.8 (2020)! LINK

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.

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.

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Technical Change, Task Allocation, and Labor Unions. A new GLO Discussion Paper by GLO Fellow Thomas Beissinger & colleagues.

October 31, 2022Discussion Paper, News, Post, Post-22GLO Admin

The new GLO Discussion Paper proposes a novel framework that integrates the “task approach” to find that low-skilled workers may be harmed in terms of either lower wages or higher unemployment.

GLO Discussion Paper No. 1177, 2022

Technical Change, Task Allocation, and Labor Unions – Download PDF
by Marczak, Martyna & Beissinger, Thomas & Brall, Franziska

GLO Fellow Thomas Beissinger

Author Abstract: We propose a novel framework that integrates the “task approach” for a more precise production modeling into the search-and-matching model with low- and high-skilled workers, and wage setting by labor unions. We establish the relationship between task reallocation and changes in wage pressure, and examine how skill- biased technical change (SBTC) affects the task composition, wages of both skill groups, and unemployment. In contrast to the canonical model with a fixed task allocation, low-skilled workers may be harmed in terms of either lower wages or higher unemployment depending on the relative task-related productivity profile of both worker types. We calibrate the model to the US and German data for the periods 1995-2005 and 2010-2017. The simulated effects of SBTC on low-skilled unemployment are largely consistent with observed developments. For example, US low-skilled unemployment increases due to SBTC in the earlier period and decreases after 2010.

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Public finance in the era of the COVID-19 crisis. A new GLO Discussion Paper by GLO Fellow David R. Agrawal & Aline Bütikofer.

October 30, 2022Discussion Paper, News, Post, Post-22GLO Admin

The new GLO Discussion Paper reflects on how the field of public economics has been shaped by the COVID-19 pandemic and discusses several areas where more research is needed.

GLO Discussion Paper No. 1176, 2022

Public finance in the era of the COVID-19 crisis – Download PDF
by Agrawal, David R. & Bütikofer, Aline

GLO Fellow David R. Agrawal

Author Abstract: The COVID-19 crisis poses new policy challenges and has spurred new research agendas in public economics. In this article, we selectively reflect on how the field of public economics has been shaped by the COVID-19 pandemic and discuss several areas where more research is necessary. We highlight major changes and inequalities in the labor market and K-12 education, in addition to discussing how technological change creates new challenges for the taxation of income and consumption. We discuss various policy responses to these challenges and the role of fiscal federalism in the context of worldwide crises. Finally, we summarize the key issues discussed at the 2021 International Institute of Public Finance Congress and the papers published in this special issue.

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Inflation and attention thresholds. A new GLO Discussion Paper by GLO Fellow David Munro & colleagues.

October 29, 2022Discussion Paper, News, Post, Post-22GLO Admin

The new GLO Discussion Paper finds that attention affects inflation.

GLO Discussion Paper No. 1175, 2022

Inflation and attention thresholds – Download PDF
by Korenok, Oleg & Munro, David & Chen, Jiayi

GLO Fellow David Munro

Author Abstract: One of the dangers of high inflation is that it can cause firms and households to pay close attention to it. This internalization of inflation can lead to an accelerationist regime, making inflation harder to control. We empirically assess the relationship between attention and the level of inflation for 37 countries. Our measures of attention are constructed either from internet search behavior or the popularity of inflation mentions on Twitter. We find evidence that attention thresholds do exist for the majority of countries in our sample. We also find interesting variability across countries.

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Informal Institution Meets Child Development: Clan Culture and Child Labor in China. A new GLO Discussion Paper by Can Tan and GLO Fellow Zhong Zhao.

October 28, 2022Discussion Paper, News, Post, Post-22GLO Admin

The new GLO Discussion Paper finds that clan culture significantly reduces the incidence of child labor and working hours of child laborer.

GLO Discussion Paper No. 1174, 2022

Informal Institution Meets Child Development: Clan Culture and Child Labor in China – Download PDF
by Tang, Can & Zhao, Zhong

GLO Fellow Zhong Zhao

Author Abstract: Using a national representative sample, the China Family Panel Studies, this paper explores the influences of clan culture, a hallmark of Chinese cultural history, on the prevalence of child labor in China. We find that clan culture significantly reduces the incidence of child labor and working hours of child laborer. The results exhibit strong boy bias, and are driven by boys rather than girls, which reflects the patrilineal nature of Chinese clan culture. Moreover, the impact is greater on boys from households with lower socioeconomic status, and in rural areas. Clan culture acts as a supplement to formal institutions: reduces the incidence of child labor through risk sharing and easing credit constraints, and helps form social norms to promote human capital investment. We also employ an instrument variable approach and carry out a series of robustness checks to further confirm the findings.

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Multitasking. A new GLO Discussion Paper by GLO Fellow Anzelika Zaiceva-Razzolini.

October 27, 2022Discussion Paper, News, Post, Post-22GLO Admin

The new GLO Discussion Paper reviews theoretical and empirical contributions, focusing on childcare, food consumption, and remote work.

GLO Discussion Paper No. 1173, 2022

Multitasking – Download PDF
by Zaiceva-Razzolini, Anzelika

GLO Fellow Anzelika Zaiceva-Razzolini

Author Abstract: This chapter reviews economic studies on multitasking in household production. Whereas multitasking or task juggling in the workplace has been analyzed more widely, economic literature on multitasking in a household is relatively scarce. The chapter first provides relevant measures of such multitasking activities, discusses time diary data, and presents some empirical facts employing Harmonized European Time Use Survey data. It then reviews theoretical and empirical contributions to this topic, focusing on childcare, food consumption, and remote work. It also reviews the determinants of multitasking and identifies the factors that are more likely to affect these activities. In addition, it discusses multitasking by certain groups, such as ethnic minorities and children. Finally, it offers policy implications and suggestions for future research.

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The Role of Institutions in Job Teleworkability Before and After the Covid-19 Pandemic. A new GLO Discussion Paper by GLO Fellow Peter Norlander and Christopher Erickson.

October 26, 2022Discussion Paper, News, Post, Post-22GLO Admin

The new GLO Discussion Paper finds that during the pandemic between-firm differences increased, and institutions influenced the rate of telework adoption.

GLO Discussion Paper No. 1172, 2022

The Role of Institutions in Job Teleworkability Before and After the Covid-19 Pandemic – Download PDF
by Norlander, Peter & Erickson, Christopher

GLO Fellow Pet er Norlander

Author Abstract: The teleworkability of jobs – whether they can and will be performed remotely – has been increasingly contested in the aftermath of the COVID-19 pandemic. To explain which jobs are teleworkable and why, we emphasize the institutional context of a job, including differences among firms, union representation, professional licensing requirements, sector, and employment models. Using a novel dataset of job characteristics extracted from the text of a large sample of online job advertisements from 2010-2021, we examine various explanations for change in the availability of remote job opportunities. Prior to the pandemic, private sector, non-union, and unlicensed jobs lagged federal government, union, and licensed jobs in the growth of telework. Firms are the largest source of variance in remote job offerings relative to other obvious alternatives (technological feasibility, occupation, sector, geography). After March 2020, between-firm differences increased, and institutions influenced the rate of telework adoption.

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Is Secessionism Mostly About Income or Identity? A Global Analysis of 3,003 Subnational Regions. A new GLO Discussion Paper by GLO Fellow Ömer Özak and colleagues.

October 25, 2022Discussion Paper, News, Post, Post-22GLO Admin

The new GLO Discussion Paper strongly suggests that identity trumps income in determining a region’s propensity to secede.

GLO Discussion Paper No. 1171, 2022

Is Secessionism Mostly About Income or Identity? A Global Analysis of 3,003 Subnational Regions – Download PDF
by Desmet, Klaus & Ortuño Ortín, Ignacio & Özak, Ömer

GLO Fellow Ömer Özak

Author Abstract: This paper analyzes whether the propensity to secede by subnational regions responds mostly to differences in income per capita or to distinct identities. We explore this question in a quantitative political economy model where people’s willingness to finance a public good depends on their income and identity. Using high-resolution economic and linguistic data for the entire globe, we predict the propensity to secede of 3,003 subnational regions in 173 countries. We validate the model-based predictions with data on secessionist movements, state fragility, regional autonomy, and conflict, as well as with an application to the dissolution of the Soviet Union. Counterfactual analysis strongly suggests that identity trumps income in determining a region’s propensity to secede. Removing identity differences reduces the average support for secession from 7.5% to 0.6% of the population.

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A Field Study of Age Discrimination in the Workplace: The Importance of Gender and Race. Pay the Gap. A new GLO Discussion Paper by GLO Fellows Nick Drydakis & Anna Paraskevopoulou and Vasiliki Bozani.

October 24, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds for the UK patterns that may well be in-line with prejudices against racial minority groups and stereotypical sexist beliefs.

GLO Discussion Paper No. 1170, 2022

A Field Study of Age Discrimination in the Workplace: The Importance of Gender and Race. Pay the Gap – Download PDF
by Drydakis, Nick & Paraskevopoulou, Anna & Bozani, Vasiliki

GLO Fellows Nick Drydakis & Anna Paraskevopoulou

Author Abstract: The study examines whether age intersects with gender and race during the initial stage of the hiring process and affects access to vacancies outcomes and wage sorting. In order to answer the research question the study collects data from four simultaneous field experiments in England. The study compares the labour market outcomes of younger White British men with those of older White British men and women, and with those of older Black British men and women. The study concentrates on low-skilled vacancies in hospitality and sales in the private sector. The results of this study indicate that older White British men and women, as well as older Black British men and women, experience occupational access constraints and are sorted into lower-paid jobs than younger White British men. The level of age discrimination is found to be higher for Black British men and women. In addition, Black British women experience the highest level of age discrimination. These patterns may well be in-line with prejudices against racial minority groups and stereotypical sexist beliefs that the physical strengths and job performance of women decline earlier than they do for men. This research presents for the first-time comparisons of access to vacancies and wage sorting between younger male racial majorities and older male racial majorities, older female racial majorities, older male racial minorities, and older female racial minorities. In addition, the driven mechanism of the assigned differences is explored. Because the study has attempted to minimise the negative employer stereotypes vis-à-vis older employees, with respect to their motivation, productivity, and health, such prejudices against older individuals may be considered Taste-based discrimination. If prejudices against older individuals are present, then anti-discrimination legislation may be the appropriate response, especially for racial minorities and women. Eliminating age discrimination in selection requires firms to adopt inclusive HR policies at the earliest stages of the recruitment process.

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Immigrants and Trade Union Membership: Does Integration into Society and Workplace Play a Moderating Role? A new GLO Discussion Paper by GLO Affiliate Fenet Jima Bedaso and GLO Fellows Uwe Jirjahn & Laszlo Goerke.

October 11, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper shows for Germany that the immigrant-native gap in union membership depends on immigrants’ integration into the workplace and society.

GLO Discussion Paper No. 1169, 2022

Immigrants and Trade Union Membership: Does Integration into Society and Workplace Play a Moderating Role? – Download PDF
by Bedaso, Fenet Jima & Jirjahn, Uwe & Goerke, Laszlo

GLO Affiliate Fenet Jima Bedaso and GLO Fellows Uwe Jirjahn & Laszlo Goerke

Author Abstract: We hypothesize that incomplete integration into the workplace and society implies that immigrants are less likely to be union members than natives. Incomplete integration makes the usual mechanism for overcoming the collective action problem less effective. Using data from the Socio-Economic Panel, our empirical analysis confirms a unionization gap for first-generation immigrants in Germany. Importantly, the analysis shows that the immigrant-native gap in union membership indeed depends on immigrants’ integration into the workplace and society. The gap is smaller for immigrants working in firms with a works council and having social contacts with Germans. Our analysis also confirms that the gap is decreasing in the years since arrival in Germany.

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Long-Term Effects of Hiring Subsidies for Unemployed Youths – Beware of Spillovers. A new GLO Discussion Paper by GLO Fellows Andrea Albanese & Muriel Dejemeppe, and Bart Cockx.

October 10, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper estimates the impact of a one-shot hiring subsidy targeted at low-educated unemployed youths during the Great Recession in Belgium to find that in the long term private employment increased but just substituted public and self-employment.

GLO Discussion Paper No. 1168, 2022

Long-Term Effects of Hiring Subsidies for Unemployed Youths – Beware of Spillovers – Download PDF
by Albanese, Andrea & Cockx, Bart & Dejemeppe, Muriel

GLO Fellows Andrea Albanese & Muriel Dejemeppe

Author Abstract: We use (donut) regression discontinuity design and difference-in-differences estimators to estimate the impact of a one-shot hiring subsidy targeted at low-educated unemployed youths during the Great Recession recovery in Belgium. The subsidy increases job-finding in the private sector by 10 percentage points within one year of unemployment. Six years later, high school graduates accumulated 2.8 quarters more private employment. However, because they substitute private for public and self-employment, overall employment does not increase but is still better paid. For high school dropouts, no persistent gains emerge. Moreover, the neighboring attraction pole of Luxembourg induces a complete deadweight near the border.

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Pension Wealth and the Gender Wealth Gap. A new GLO Discussion Paper by GLO Fellow Eva Sierminska, GLO Affiliate Karla Cordova & Markus Grabka.

October 9, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper shows for Germany that while the relative raw gender wealth gap is about 35% (or 31,000 euros) when analyzing the standard measure of net worth, it shrinks to 28% when pension wealth is added.

GLO Discussion Paper No. 1167, 2022

Pension Wealth and the Gender Wealth Gap – Download PDF
by Cordova, Karla & Grabka, Markus & Sierminska, Eva

GLO Fellow Eva Sierminska & GLO Affiliate Karla Cordova

Author Abstract: We examine the gender wealth gap with a focus on pension wealth and statutory pension rights. By taking into account employment characteristics of women and men, we are able to identify the extent to which the redistributive effect of pension rights reduces the gender wealth gap. The data for our analysis come from the German Socio-Economic Panel (SOEP), one of the few surveys collecting information on wealth and pension entitlements at the individual level. Pension wealth data are available in the SOEP for 2012 only. While the relative raw gender wealth gap is about 35% (or 31,000 euros) when analysing the standard measure of net worth, it shrinks to 28% when pension wealth is added. This reduction is due to redistributive elements such as caregiver credits provided through the statutory pension scheme. Results of a recentered in uence functions (RIF) decomposition show that pension wealth reduces the gap substantially in the lower half of the distribution. At the 90th percentile, the gender wealth gap in net worth and in augmented wealth remains more stable at roughly 27-30%.

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JUST PUBLISHED
Vol. 35, Issue 4, October 2022: Journal of Population Economics (JOPE): 15 articles
https://link.springer.com/journal/148/volumes-and-issues/35-4
Just released: CiteScore of JOPE moves up from 3.9 (2020) to 6.5 (2021)! LINK
Similar, its Impact Factor is now 4.7 (2021) after 2.8 (2020)! LINK

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Curtailment of Economic Activity and Labor Inequalities. A new GLO Discussion Paper by GLO Affiliate Erminia Florio & Aicha Kharazi.

October 8, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper develops a model and estimates it to find that the recent crisis in the US lead to a contraction in total hours worked, makes wages more volatile, and sustains wage inflation.

GLO Discussion Paper No. 1166, 2022

Curtailment of Economic Activity and Labor Inequalities – Download PDF
by Florio, Erminia & Kharazi, Aicha

GLO Affiliate Erminia Florio

Author Abstract: The worrying combination of the labor market tightness and the wage inflation in the US since the pandemic raises a question on how the business closure orders affected the fragile segments of the labor force and contributed to mounting inflationary wage pressure. We develop a macroeconomic model with heterogeneous labor and a nested CES production function. We estimate the model using the newly collected data from the CPS and the BEA. The recent crisis leads to a contraction in total hours worked, makes wages more volatile, and sustains wage inflation. The model also generates differential effects of the business closure orders on productivity and the labor market in the US. The earning rates and hours responses to the crisis differ by age, skills, and origin of the worker.

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Fertility, Heterogeneity and the Golden Rule. A new GLO Discussion Paper by GLO Fellow Gregory Ponthiere.

October 7, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper shows that, unlike what prevails under a homogeneous population, a rise in fertility does not necessarily reduce the Golden Rule capital intensity, but increases it when the composition effect induced by the fertility change outweighs the standard capital dilution effect prevailing under a fixed partition of the population.

GLO Discussion Paper No. 1165, 2022

Fertility, Heterogeneity and the Golden Rule – Download PDF
by Ponthiere, Gregory

GLO Fellow Gregory Ponthiere

Author Abstract: Phelps’s (1961) Golden Rule states an unambiguous relationship be- tween optimal capital intensity and fertility: a rise in fertility decreases the optimal capital intensity, because a higher fertility increases the investment required to sustain a given capital to labour ratio (i.e., the cap- ital dilution effect). Using a matrix population model embedded in a two-period OLG setting, we examine the robustness of that relationship to the partitioning of the population into 2 subpopulations having distinct fertility behaviors. We derive the optimal accumulation rule in that framework, and we show that, unlike what prevails under a homogeneous population, a rise in fertility does not necessarily reduce the Golden Rule capital intensity, but increases it when the composition effect induced by the fertility change outweighs the standard capital dilution effect prevailing under a fixed partition of the population. We also explore the robustness of these results to a finer description of heterogeneity, that is, a partitioning of the population into a larger number of subpopulations.

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The wage effects of employers’ associations: A case study of the private schools sector. A new GLO Discussion Paper by GLO Fellow Pedro Martins.

October 2, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper provides evidence that the EA wage premium can be largely explained by the selection of high-wage firms (but not high-wage workers) into EA membership.

GLO Discussion Paper No. 1163, 2022

The wage effects of employers’ associations: A case study of the private schools sector – Download PDF
by Martins, Pedro S.

GLO Fellow Pedro Martins

Author Abstract: Does employers’ association (EA) membership affect the wages paid by firms? Such effects could follow from several channels, including increased productivity, different management practices, or employer collusion promoted by EA affiliation. We test these hypotheses drawing on detailed matched employer-employee panel data, including timevarying EA affiliation and worker mobility across firms. We consider the case of private schools in Portugal, 2010-2020, and its EA, and develop a methodology to delimit the sector’s scope. We find that, even when controlling extensively for worker characteristics, including worker fixed effects, EA firms pay significantly higher wages. However, when controlling for firm fixed effects, these wage differences are significantly reduced or disappear. Our evidence indicates that the EA wage premium can be largely explained by the selection of high-wage firms (but not high-wage workers) into EA membership.

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Mining and Mistrust in Government. A new GLO Discussion Paper by GLO Fellows Astghik Mavisakalyan and Anna Minasyan.

October 1, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds a negative association between mining and trust in government in 27 post-communist countries of Central and Eastern Europe and the former Soviet Union.

GLO Discussion Paper No. 1164, 2022

Mining and Mistrust in Government – Download PDF
by Mavisakalyan, Astghik & Minasyan, Anna

GLO Fellows Astghik Mavisakalyan and Anna Minasyan

Author Abstract: Recent research shows that natural resources can hurt institutions by promoting corruption and diverting resources from the production of public goods. This, in turn, may have implications for the trust individuals hold for their governments. We explore this possibility by linking survey data on over 43,000 individuals with spatial data on mine locations in 27 post-communist countries of Central and Eastern Europe and the former Soviet Union. By exploiting the information on the development status of each mine site, we draw comparisons between individuals living in the vicinity of active versus inactive mines, imitating a difference-in-differences strategy applied to cross-sectional data. We show that there is a negative association between mining and trust in government – a finding that is robust to a battery of tests. Our analysis of the mechanisms confirms that corruption perception and, to a lesser extent, dissatisfaction with public good provision, are likely behind this relationship. The analysis of the consequences of such mistrust in government points towards a potentially damaging impact of mining for new democracies. The results suggest that mining activity might decrease individuals’ willingness to go on lawful demonstrations and participate in civil and political movements.

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Foreign Competition, Skill Premium, and Product Quality: Impact of Chinese Competition on Mexican Plants. A new GLO Discussion Paper by Thi Hang Banh and GLO Fellow Mauro Caselli.

September 30, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds empirical support for a suggested theoretical model predicting that tougher competition leads plants to downgrade quality, which induces a decline in the wage difference between skilled and unskilled workers.

GLO Discussion Paper No. 1162, 2022

Foreign Competition, Skill Premium, and Product Quality: Impact of Chinese Competition on Mexican Plants – Download PDF
by Banh, Thi Hang & Caselli, Mauro

GLO Fellow Mauro Caselli

Author Abstract: This paper analyses the effect of rising competition from Chinese exports on the skill premium of Mexican plants. Using detailed product-plant-level production data from Mexico and bilateral product-level trade data for 1994-2007, we provide evidence that Mexican plants reduce their skill premium in response to increasing competition from Chinese exports, and the effect is more pronounced among non-exporting plants. Thus, we develop a model linking competition and wage inequality between skilled and unskilled workers by introducing these two types of labour to a model with heterogeneous firms and quality differentiation. Our model predicts that tougher competition leads plants to downgrade quality, which induces a decline in the wage difference between skilled and unskilled workers. We investigate this hypothesis empirically by analysing the effect of Chinese competition on the product quality of Mexican plants. Consistent with the fall in the skill premium, we document a downgrading impact of China’s rise on Mexican plants’ product quality and this quality downgrading is less intense for products sold in the foreign market. These findings provide empirical support for the predictions of our model.

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Returns to Education in Greece: Evidence from the 1977 Labor Market Survey using the Greek Civil War as an Instrument. A new GLO Discussion Paper by GLO Fellow Harry Patrinos.

September 29, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper shows that

GLO Discussion Paper No. 1161, 2022

Returns to Education in Greece: Evidence from the 1977 Labor Market Survey using the Greek Civil War as an Instrument – Download PDF
by Patrinos, Harry Anthony

GLO Fellow Harry Patrinos

Author Abstract: Greece experienced a devastating civil war in 1946-1949. This led to many deaths, economic losses, and severe reductions in schooling expenditures and attendance. Using an instrumental variables approach, we estimate the 1977 returns to schooling, showing that for those affected by the civil war, the returns to schooling are higher than the corresponding least squares estimate.

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The effect of gender norms on gender-based sorting across occupations. A new GLO Discussion Paper by GLO Fellows Miriam Marcén and Marina Morales.

September 28, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper studying immigration to the USA finds that greater gender equality in the country of origin reduces the gender gap in male-dominated occupations.

GLO Discussion Paper No. 1160, 2022

The effect of gender norms on gender-based sorting across occupations – Download PDF
by Marcén, Miriam & Morales, Marina

GLO Fellows Miriam Marcén and Marina Morales

Author Abstract: Despite the notable progress that has been made in bridging the gap between women and men in the world of work, women are still underrepresented in several occupations. In this article, the effect of gender norms on whether women enter male-dominated occupations is analysed using differences in gender equality among early-arrival migrants. The variations in gender norms according to the cultural backgrounds of those migrants by country of origin are exploited to identify their impact on occupational choices. Using data from the American Community Survey, it is found that greater gender equality in the country of origin reduces the gender gap in maledominated occupations. Suggestive evidence is further shown on the roles of job flexibility and women’s relative preferences for family-friendly jobs in shaping gender-based sorting across occupations.

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The Anti-Corruption Campaign and the Inter-Generational Transmission of Working in Bureaucracy: Evidence from China. A new GLO Discussion Paper by GLO Fellow Shuai Chen and Erqi Ge.

September 22, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper provides evidence that the campaign decreased the economic attractiveness of bureaucratic jobs.

GLO Discussion Paper No. 1159, 2022

The Anti-Corruption Campaign and the Inter-Generational Transmission of Working in Bureaucracy: Evidence from China – Download PDF
by Chen, Shuai & Ge, Erqi

GLO Fellow Shuai Chen

Author Abstract: There is a clear and persistent inequality of bureaucratic employment between individuals with a bureaucrat parent and those without. Using the recent anti-corruption campaign in China as a quasi-experiment, we investigate how endeavors for counter-corruption affect inequality and potential cronyism in bureaucratic employment through inter-generational transmission. First, we conduct a difference-in-differences analysis to compare changes in the probability of working in bureaucracy after the campaign came into effect in different provincial administrative divisions of mainland China, between individuals with a bureaucrat parent and those without. We find that before the campaign, bureaucrats’ children were over 13 percentage points more likely to work in bureaucracy, and that the positive selection on human capital can explain only 12-25 percent of this advantage of bureaucrats’ children. However, after the campaign took effect, this premium significantly reduced by more than 5 percentage points. Moreover, we explore potential mechanisms through which anti-corruption efforts have diminished the inter-generational transmission of bureaucratic employment. We provide evidence that the campaign decreased the economic attractiveness of bureaucratic jobs, and that better outside options are more likely to explain the reduced inter-generational transmission. We do not find evidence supporting other two alternative channels: the insider information of bureaucrat parents on the campaign, or changes in perceptions of bureaucracy.

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Early Life Circumstances and the Health of Older Adults: A Research Note. A new GLO Discussion Paper by GLO Fellow Xi Chen.

September 21, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper reviews the latest evidence, in particular the impact of the Great Chinese Famine (1959-1961).

GLO Discussion Paper No. 1158, 2022

Early Life Circumstances and the Health of Older Adults: A Research Note – Download PDF
by Chen, Xi

GLO Fellow Xi Chen

Author Abstract: This paper reviews the latest evidence of the effects of early life circumstances on old-age health, distinguishing in utero exposures from childhood exposures to a wide range of environments. We then leverage the growing number of studies of the impact of the Great Chinese Famine (1959-1961) on the health of older adults to perform a meta-analysis and discuss potential mechanisms. Recent studies assembling multiple domains of early life circumstances are evaluated to better understand how various circumstances may coalesce and manifest in shaping long-term health.

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We Need to Talk about Mechanical Turk: What 22,989 Hypothesis Tests Tell us about p-Hacking and Publication Bias in Online Experiments: a new GLO Discussion Paper by GLO Fellow Abel Brodeur and colleagues.

September 20, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds evidence of widespread p-hacking, publication bias and over-reliance on results from plausibly under-powered studies.

GLO Discussion Paper No. 1157, 2022

We Need to Talk about Mechanical Turk: What 22,989 Hypothesis Tests Tell us about p-Hacking and Publication Bias in Online Experiments – Download PDF
by Brodeur, Abel & Cook, Nikolai & Heyes, Anthony

GLO Fellow Abel Brodeur

Author Abstract: Amazon’s Mechanical Turk is a very widely-used tool in business and economics research, but how trustworthy are results from well-published studies that use it? Analyzing the universe of hypotheses tested on the platform and published in leading journals between 2010 and 2020 we find evidence of widespread p-hacking, publication bias and over-reliance on results from plausibly under-powered studies. Even ignoring questions arising from the characteristics and behaviors of study recruits, the conduct of the research community itself erodes substantially the credibility of these studies’ conclusions. The extent of the problems vary across the business, economics, management and marketing research fields (with marketing especially afflicted). The problems are not getting better over time and are much more prevalent than in a comparison set of non-online experiments. We explore correlates of increased credibility.

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Economic Preferences and the Self-selection of Immigrants. A new GLO Discussion Paper by GLO Fellows Crystal Zhan and Sumit Deole.

September 19, 2022Discussion Paper, News, Post, Post-22, UncategorizedGLO Admin

A new GLO Discussion Paper finds a higher migration propensity among individuals who are more altruistic, patient, and trusting.

GLO Discussion Paper No. 1156, 2022

Economic Preferences and the Self-selection of Immigrants – Download PDF
by Zhan, Crystal & Deole, Sumit

GLO Fellows Crystal Zhan and Sumit Deole

Author Abstract: Classical theories hypothesize individual economic preferences, including preferences toward risk, time, and trust, as determinants for migration intention. In the paper, we combine data from the German Socio-Economic Panel, European Social Survey, and World Values Survey to investigate how immigrants to Germany are self-selected from the origin population based on their preferences. We find a higher migration propensity among individuals who are more altruistic, patient, and trusting, conditional on age, gender, education, and a series of origin country’s economic and political factors. However, individuals are positively selected on risk appetite in low-risk countries but adversely selected in high-risk countries. The degree of selectivity regarding preferences is also heterogeneous across demographics and origin-country characteristics.

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Returns to Education in the Public and Private Sectors: Europe and Central Asia. A new GLO Discussion Paper by Claudio Montenegroa and GLO Fellow Harry Patrinos.

September 18, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper shows that while the public sector pays on average more than the private sector, the effect of education on earnings is stronger in the private sector.

GLO Discussion Paper No. 1155, 2022

Returns to Education in the Public and Private Sectors: Europe and Central Asia – Download PDF
by Montenegroa, Claudio M. & Patrinos, Harry Anthony

GLO Fellow Harry Patrinos

Author Abstract: The returns to schooling are estimated for 28 European and Central Asian countries using the Mincerian function. Our results show that while the public sector pays on average more than the private sector, the effect of education on earnings is stronger in the private sector. However, the returns to tertiary education are higher in the private sector.

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Losing Prospective Entitlement to Unemployment Benefits. Impact on Educational Attainment. A new GLO Discussion Paper by GLO Fellow Muriel Dejemeppe and colleagues.

September 17, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper shows that the prospect of financial loss in case of unemployment can significantly raise degree completion and reduce dropout in higher education, but not in high school.

GLO Discussion Paper No. 1154, 2022

Losing Prospective Entitlement to Unemployment Benefits. Impact on Educational Attainment – Download PDF
by Cockx, Bart & Declercq, Koen & Dejemeppe, Muriel

GLO Fellow Muriel Dejemeppe

Author Abstract: Providing income support to unemployed education-leavers reduces the returns to investments in education because it makes the consequences of unemployment less severe. We evaluate a two-part policy reform in Belgium to study whether conditioning the prospective entitlement to unemployment benefits for education-leavers on age or schooling attainment can affect educational achievements. The results show that the prospect of financial loss in case of unemployment can significantly raise degree completion and reduce dropout in higher education, but not in high school. We argue that the higher prevalence of behavioral biases among lower educated and younger students could explain these contrasting findings.

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COVID-19 and entrepreneurship entry and exit: Opportunity amidst adversity. A new GLO Discussion Paper by GLO Fellows Olga Popova and Milena Nikolova & colleagues.

September 16, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper shows that acquiring new skills during the pandemic helps maintain an existing business and encourages start-ups in sectors other than information technology (IT).

GLO Discussion Paper No. 1153, 2022

COVID-19 and entrepreneurship entry and exit: Opportunity amidst adversity – Download PDF
by Otrachshenko, Vladimir & Popova, Olga & Nikolova, Milena & Tyurina, Elena

GLO Fellows Olga Popova and Milena Nikolova

Author Abstract: We theoretically and empirically examine how acquiring new skills and increased financial worries influenced entrepreneurship entry and exit intentions during the pandemic. To that end, we analyze primary survey data we collected in the aftermath of the COVID-19’s first wave in Russia, which has had one of the highest COVID-19 infection rates globally. Our results show that acquiring new skills during the pandemic helps maintain an existing business and encourages start-ups in sectors other than information technology (IT). For IT start-ups, having previous experience matters more than new skills. While the pandemic-driven financial worries are associated with business closure intentions, they also inspire new business start-ups, highlighting the creative destruction power of the pandemic. Furthermore, preferences for formal employment and remote work also matter for entrepreneurial intentions. Our findings enhance the understanding of entrepreneurship formation and closure in a time of adversity and suggest that implementing entrepreneurship training and upskilling policies during the pandemic can be an important policy tool for innovative small business development.

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The Motherhood Penalty in China: Having A Child Increases Gender Inequality in the Labor Market. A new GLO Discussion Paper by GLO Affiliate Yue Wang & colleagues.

September 8, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds that becoming a mother implies a sharp decline in labor earnings, labor market participation, working hours and wage rate, while fathers’ outcomes remain unaffected.

GLO Discussion Paper No. 1152, 2022

The Motherhood Penalty in China: Having A Child Increases Gender Inequality in the Labor Market – Download PDF
by Zhang, Mingxue & Hou, Lingling & Wang, Yue

GLO Affiliate Yue Wang

Author Abstract: Using a comprehensive individual panel dataset in China and an event study method, we examined the effects of having a child on gender inequality from the perspectives of labor market outcomes and its mechanisms. Results show that becoming a mother implies a sharp decline in labor earnings, labor market participation, working hours and wage rate, while fathers’ outcomes remain unaffected. These outcomes are driven by two potential channels: career choices and social norms. After having a child, mothers have a higher likelihood for engaging in informal jobs and less possibility of being promoted if they work in the formal sector. Moreover, social norms towards gender roles lead mothers to devote more time to housework and babysit, which generate motherhood earnings penalty in labor market. Finally, well-being analysis shows that subjective happiness and life satisfaction of both males and females are barely not changed after childbirth, and females experience an increase in social status after child arrival.

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Income shocks, bride price and child marriage in Turkey. A new GLO Discussion Paper by GLO Fellow Isabelle Chort & colleagues.

September 7, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds that girls living in provinces with a high practice of bride-price and exposed to a negative income shocks when aged 12-14 have a 28% higher probability to be married before the age of 15 than girls not exposed to shocks.

GLO Discussion Paper No. 1151, 2022

Income shocks, bride price and child marriage in Turkey – Download PDF
by Chort, Isabelle & Hotte, Rozenn & Marazyan, Karine

GLO Fellow Isabelle Chort

Author Abstract: This paper investigates the impact of income shocks and bride price on early marriage in Turkey. The practice of bride-price, still vivid in many regions of the country, may provide incentives for parents to marry their daughter earlier, when faced with a negative income shock. In addition, marriages precipitated by negative income shocks may present specific features (endogamy, age and education difference between spouses). Weather shocks provide an exogenous source of variation of household income through agricultural production. Data on weather shocks are merged with individual and household level data from the Turkish Demographic and Health Surveys 1998 to 2013. To study the role of payments to the bride’s parents, we interact our measure of shocks with a province-level indicator of a high prevalence of bride-price. We find that girls living in provinces with a high practice of bride-price and exposed to a negative income shocks when aged 12-14 have a 28% higher probability to be married before the age of 15 than girls not exposed to shocks. This effect is specific to provinces with a high prevalence of bride price. Compared to women who experienced the same shock but lived in a province where bride price is infrequent, such women are also more likely to give birth to their first child before 18 and for those who married religiously first, the civil ceremony is delayed by 2 months on average. Our results suggest that girl marriage still participates to household strategies aimed at mitigating negative income shocks in contemporary Turkey.

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The effects of sleep duration on child health and development. A new GLO Discussion Paper by GLO Fellow Ha Trong Nguyen and colleagues.

September 6, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds that sleeping longer improves selected general developmental, behavioral and health outcomes in children and adolescents.

GLO Discussion Paper No. 1150, 2022

The effects of sleep duration on child health and development – Download PDF
by Nguyen, Ha Trong & Zubrick, Stephen R. & Mitrou, Francis

GLO Fellow Ha Trong Nguyen

Author Abstract: This paper studies the extent to which sleep duration causally affects health, cognitive and noncognitive development in children and adolescents. Using over 50 thousand time use diaries from two cohorts of Australian children spanning over 16 years, we first document that children sleep significantly less on days with longer daylight duration, partly by going to sleep later and waking up earlier. We then exploit variations in local daily daylight duration measured on predetermined diary dates across the same individuals through time as an instrument in an individual fixed effects regression model to draw causal estimates of sleep duration on a comprehensive set of child development indicators. Our results show that sleeping longer improves selected general developmental, behavioural and health outcomes in children and adolescents. By contrast, sleeping more statistically significantly increases their BMI scores, mainly by increasing the risk of being overweight. Moreover, while the impact of sleep duration on general and behavioural outcomes is more pronounced for females or older individuals, the effect on BMI is largely driven by males. The results indicate a null or relatively small positive impact of sleeping longer on cognitive skills.

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The UK Gender Pay Gap: Does Firm Size Matter?A New GLO Discussion Paper by Melanie Jones and GLO Fellow Ezgi Kaya.

September 5, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds that large firms have smaller within-firm raw gender pay gaps and similar unexplained gender pay gaps when compared to smaller firms.

GLO Discussion Paper No. 1149, 2022

The UK Gender Pay Gap: Does Firm Size Matter? – Download PDF
by Jones, Melanie & Kaya, Ezgi

GLO Fellow Ezgi Kaya

Author Abstract: Motivated by the introduction of the UK Gender Pay Gap Reporting legislation to large firms, defined as over 250 employees, we use linked employee-employer panel data from the Annual Survey of Hours and Earnings to explore pre-legislation variation in the gender pay gap by firm size. In doing so, we integrate two prominent but distinct empirical regularities in the labour economics literature, namely the gender pay gap and firm-size wage premium. We find evidence of both a larger raw and unexplained gender pay gap among large relative to smaller firms in the UK private sector even after controlling for unobserved worker heterogeneity, consistent with the legislation being effectively targeted. However, this conclusion changes after accounting for unobserved firm level heterogeneity and focusing on within-firm gender pay gaps. Large firms have smaller within-firm raw gender pay gaps and similar unexplained gender pay gaps when compared to smaller firms. We find that this conclusion is not specific to the current firm size threshold of 250 employees but holds more generally, including at proposed extensions of the legislation to smaller firms.

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The gender pay gap in the USA: a matching study
Katie Meara, Francesco Pastore & Allan Webster
OPEN ACCESS: Journal of Population Economics 33 (2020): 271–305
https://link.springer.com/article/10.1007/s00148-019-00743-8

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Long-term Services and Supports and Disease Management among Older Chinese Adults in Different Stages of Cognitive Impairment. A new GLO Discussion Paper by Zhuoer Lin and GLO Fellow Xi Chen.

September 2, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper shows that while access to long-term care services and supports from spouse or home-based services significantly facilitate active disease management behaviors, the effects are only evident among older adults with no cognitive impairment.

GLO Discussion Paper No. 1148, 2022

Long-term Services and Supports and Disease Management among Older Chinese Adults in Different Stages of Cognitive Impairment – Download PDF
by Lin, Zhuoer & Chen, Xi

GLO Fellow Xi Chen

Author Abstract: Rapid population aging elevates burden of chronic and non-communicable diseases among older adults. Despite the critical role of self-management in disease prevention and control, effective management of diseases can be cognitively demanding and may require additional supports from family and social services. Using nationally representative data from China, this paper reveals great challenges in disease management and characterizes the differential effects of long-term care services and supports (LTSS) on disease management among older adults in different stages of cognitive impairment (CI). In specific, we use preventive care utilization and hypertension management as key indicators to assess the performance of disease management. We show that while access to LTSS from spouse or home-based services significantly facilitate active disease management behaviors, the effects are only evident among older adults with no CI. By contrast, access to LTSS has very modest effect for cognitively impaired individuals. In addition, older adults in more severe stages of CI perform worse in disease prevention, hypertension awareness and management. These findings reveal the vulnerability of older adults with CI in disease management and point to the importance of promoting targeted interventions to reduce barriers of accessing LTSS, especially among cognitively impaired population.

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Personality traits, remote work and productivity. A new GLO Discussion Paper by Nicolas Gavoille and GLO Fellow Mihails Hazans.

September 1, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds strong links between personality, productivity, and willingness to work from home post-pandemic using survey data for Latvia.

GLO Discussion Paper No. 1145, 2022

Personality traits, remote work and productivity – Download PDF
by Gavoille, Nicolas & Hazans, Mihails

GLO Fellow Mihails Hazans

Author Abstract: The future of teleworking ultimately depends on its impact on workers’ productivity and wellbeing, yet the effect of remote working on productivity is not well understood. This paper investigates the link between personality traits and workers’ productivity when working from home. We exploit a survey providing measures of the “Big Five” personality traits for more than 1700 recent teleworkers. We document strong links between personality, productivity, and willingness to work from home post-pandemic. Ceteris paribus, Conscientiousness and Openness to Experience are positively associated with a higher productivity from home, especially for females. On the other hand, the link between Extraversion and preference for teleworking is negative. These results suggest that a one-size-fits-all policy is unlikely to maximize neither firms’ productivity nor workers’ satisfaction.

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The effects of economic austerity on pro-sociality: Evidence from Greece. A new GLO Discussion Paper by GLO Fellow Elena Nikolova & colleagues.

August 31, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper reveals a strong relationship between job loss in the household and decreased altruism.

GLO Discussion Paper No. 1144, 2022

The effects of economic austerity on pro-sociality: Evidence from Greece – Download PDF
by Sambanis, Nicholas & Nikolova, Elena & Schultz, Anna

GLO Fellow Elena Nikolova

Author Abstract: The European sovereign debt crisis resulted in policies of fiscal austerity and economic downturn in Greece, marked by a prolonged period of recession and high unemployment. This article explores the social impact of the economic crisis, focusing on its effects on altruism using new household-level survey data and quasi-behavioral outcomes. We focus on the effects of joblessness, the most severe form of economic hardship imposed as a result of the crisis. Our findings reveal a strong relationship between job loss in the household and decreased altruism. We provide experimental evidence of these effects and of in-group bias in charitable giving as a result of joblessness. Our results show that joblessness intensifies survey respondents’ preferences for national as opposed to foreign charities.

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Do Pre-Registration and Pre-analysis Plans Reduce p-Hacking and Publication Bias? A new GLO Discussion Paper by GLO Fellow Abel Brodeur and colleagues.

August 30, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds that pre-registered studies that have a complete pre-analysis plan are significantly less p-hacked.

GLO Discussion Paper No. 1147, 2022

Do Pre-Registration and Pre-analysis Plans Reduce p-Hacking and Publication Bias? – Download PDF
by Brodeur, Abel & Cook, Nikolai M. & Hartley, Jonathan S. & Heyes, Anthony

GLO Fellow Abel Brodeur

Author Abstract: Randomized controlled trials (RCTs) are increasingly prominent in economics, with pre-registration and pre-analysis plans (PAPs) promoted as important in ensuring the credibility of findings. We investigate whether these tools reduce the extent of p-hacking and publication bias by collecting and studying the universe of test statistics, 15,992 in total, from RCTs published in 15 leading economics journals from 2018 through 2021. In our primary analysis, we find no meaningful difference in the distribution of test statistics from pre-registered studies, compared to their non-pre-registered counterparts. However, pre-registered studies that have a complete PAP are significantly less p-hacked. These results point to the importance of PAPs, rather than pre-registration in itself, in ensuring credibility.

Featured image: Mika-Baumeister-on-Unsplash

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Did the nation-wide implementation of e-FMS in MGNREGS result in reduced expenditures? A re-examination of the evidence. A new GLO Discussion Paper of GLO Fellow Deepti Goel and colleagues.

August 29, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper questions the substantial 19 percent reduction in labor expenditures of the reform in India’s national workfare program found in recent literature on methodological grounds.

GLO Discussion Paper No. 1146, 2022

Did the nation-wide implementation of e-FMS in MGNREGS result in reduced expenditures? A re-examination of the evidence – Download PDF
by Goel, Deepti & Meenakshi, J. V. & De Souza, Zaeen

GLO Fellow Deepti Goel

Author Abstract: This paper revisits a part of the analysis by Banerjee et al. (2020), in which they examine the consequences of the nation-wide scale up of reforms to the funds management system (e-FMS) in India’s national workfare programme, using a two-way fixed effects specification. They report a substantial 19 percent reduction in labour expenditures. We exploit the recent literature that highlights the limitations of the TWFE estimator in the presence of staggered roll out and effect a Goodman-Bacon decomposition of the TWFE coefficient, to pinpoint sources of identifying variation. We undertake a detailed examination of subsamples of six constituent and valid DiDs based on timing of treatment that are averaged into the TWFE coefficient to identify heterogeneity in treatment effects. This disaggregated subsample analysis does not support the conclusion of any reductions in MGNREGS labour expenditures, suggesting that the TWFE coefficient based on the full sample is indeed biased.

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Home computer ownership and educational outcomes of adolescents in Greece. A new GLO Discussiuon Paper by Vladana Djinovic and GLO Fellow Nicholas Giannakopoulos.

August 28, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds that adolescents with access to ICT have better educational outcomes compared to their peers without access to such equipment.

GLO Discussion Paper No. 1143, 2022

Home computer ownership and educational outcomes of adolescents in Greece – Download PDF
by Djinovic, Vladana & Giannakopoulos, Nicholas

GLO Fellow Nicholas Giannakopoulos

Author Abstract: In this paper we investigate whether human capital accumulation, during adolescence, depends on home investments in Information and Communication Technologies (ICT) equipment. Using micro-level data, for children aged 17-18 years old, drawn from the Greek part of the European Union Statistics on Income and Living Conditions (EUSILC) for the period 2003-2019 we measure school dropout for individuals residing in households with and without access to home computer. We found that adolescents with access to ICT have better educational outcomes compared to their peers without access to such equipment (almost 5 percentage points lower probability of school dropout). These estimates are robust to different model specifications and data restrictions. Our results support the hypothesis that technology diffusion promotes educational outcomes and provides additional evidence regarding the formation of human capital during adolescence.

Featured image: The-Coherent-Team-on-Unsplash

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The lock-in effect of marriage: Work incentives after saying, “Yes, I do.” A new GLO Discussion Paper by GLO Fellow Michael Christl and colleagues.

August 27, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds that marriage bonuses contribute to a lock-in effect, where second earners, typically women, are incentivized to work less, with negative economic consequences.

GLO Discussion Paper No. 1142, 2022

The lock-in effect of marriage: Work incentives after saying, “Yes, I do.” – Download PDF
by Christl, Michael & De Poli, Silvia & Ivaškaitė-Tamošiūnė, Viginta

GLO Fellow Michael Christl

Author Abstract: In this paper, we use EUROMOD, the tax-benefit microsimulation model of the European Union, to investigate the impact of marriage-related tax-benefit instruments on the labour supply of married couples. For each married partner, we estimate their individual marginal effective tax rate and net replacement rate before and after marriage. We show that the marriage bonus, which is economically significant in eight European countries, decreases the work incentives for women and, particularly, on the intensive margin. In contrast, the incentives on the intensive margin increase for men once they are married, pointing to the marriage-biased and gender-biased taxbenefit structures in the analysed countries. Our results suggest that marriage bonuses contribute to a lock-in effect, where second earners, typically women, are incentivised to work less, with negative economic consequences.

Featured image: Charles-Deluvio-on-Unsplash

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Political Spillovers of Workplace Democracy in Germany. A new GLO Discussion Paper by GLO Fellow Uwe Jirjahn and Thi Xuan Thu Le.

August 26, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds a positive association between the presence of a works council and workers’ interest in politics.

GLO Discussion Paper No. 1141, 2022

Political Spillovers of Workplace Democracy in Germany – Download PDF
by Jirjahn, Uwe & Le, Thi Xuan Thu

GLO Fellow Uwe Jirjahn

Author Abstract: Purpose: While works councils provide a highly developed mechanism to promote workplace democracy, research on their consequences has been dominated by economic aspects. This study brings a new perspective to the understanding of works councils by examining their influence on workers’ political behavior. Political spillover theory suggests that participation in the firm’s decision making has the potential to foster workers’ political participation in civic society. Our study for Germany indeed finds a positive association between the presence of a works council and workers’ interest in politics. This holds in panel data estimations including a large set of controls and accounting for unobserved individual-specific factors. However, separate estimations by gender show a positive association between works councils and political interest only for men, but not for women. Traditional gender roles and disproportionate responsibility for family may make it difficult for women to be politically engaged even when a works council is present.

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Employers’ associations and trade unions: co-existence or more? A new GLO Discussion Paper by GLO Fellows Nicholas Giannakopoulos & Daphne Nicolitsas.

August 25, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper suggests that at the aggregate level there is potentially a dependence between membership in the two types of organizations

GLO Discussion Paper No. 1140, 2022

Employers’ associations and trade unions: co-existence or more? – Download PDF
by Giannakopoulos, Nicholas & Nicolitsas, Daphne

GLO Fellows Nicholas Giannakopoulos & Daphne Nicolitsas

Author Abstract: Purpose: We discuss the interrelationship between membership in employers’ associations and the existence of trade unions. The analysis is based on both aggregate data for 13 European countries for 1980{2019 and firm-level data for 12 of these countries from the European Company Survey (ECS) for 2013 and 2019. Our findings suggest that at the aggregate level there is potentially a dependence between membership in the two types of organizations despite the fact that membership in the two organizations appear to respond differently to macroeconomic conditions and to different institutional parameters. The firm-level data suggest that such a dependence might exist in some countries while the two organizations simply co-exist in most countries. The firm-level analysis confirms a number of stylized facts found in other analyses; larger and longer-established firms are more likely to belong to an EA and firms enforcing a collective agreement signed outside the remit of the firm are also more likely to be members of an EA and have union presence. The analysis is fraught with difficulties as, inter alia, the evolving nature of the two types of organizations makes it more difficult to ascertain the type of co-habitation between the two.

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The (big) Role of Family Constellations in Return Migration and Transnationalism. A new GLO Discussion Paper by Bresena Kopliku Dema and GLO Affiliate Elvisa Drishti.

August 24, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper studies for Albanian migration how transnational life becomes a family project.

GLO Discussion Paper No. 1139, 2022

The (big) Role of Family Constellations in Return Migration and Transnationalism – Download PDF
by Kopliku Dema, Bresena & Drishti, Elvisa

GLO Affiliate Elvisa Drishti

Author Abstract: Purpose: The Albanian migration has always reflected a family character, be that before 1945 when Albania was not yet completely isolated, as well as after 1990 when borders were reopened. This feature characterized all types of movement, internal or international, permanent or seasonal migration, return migration or transnational movements, and remigration. The role of the family has been very important in making decisions regarding migration and answering questions from why to how to migrate, from when to where, whom to ask for help or how to invest remittances. Design/methodology/approach: Based on the case study of a rural area in Northern Albania, The Administrative Unit of Dajç, this article explores in detail the roles of family and kinship on decisions regarding return migration, the re-adjustment process, remigration or transnational life. Findings: By exploring the role of the family context in remigration and vice-versa the article reflects that the family biography – including the lifestyle, plans for the future or expectations – has changed due to previous migration experiences or challenges and difficulties when returning to the home country. Originality/value: It demonstrates how individual decisions to migrate or to ‘return home’ are negotiated and supported within families making transnational life a family project. The article adopts a new approach in the Albanian Migration Studies which may be implied on broader areas for further research in the future.

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Estimating Inequality with Missing Incomes. A new GLO Discussion Paper by GLO Fellow Paolo Verme and colleagues.

August 23, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds that the comparative assessment of correction methods indicates that most methods are able to partially correct for missing data biases. Sample reweighting based on probabilities on non-response produces inequality estimates quite close to true values in most simulated missing data patterns.

GLO Discussion Paper No. 1138, 2022

Estimating Inequality with Missing Incomes – Download PDF
by Brunori, Paolo & Salas-Rojoy, Pedro & Verme, Paolo

GLO Fellow Paolo Verme

Author Abstract: The measurement of income inequality is affected by missing observations, espe- cially if they are concentrated on the tails of an income distribution. This paper conducts an experiment to test how the different correction methods proposed by the statistical, econometric and machine learning literature address measurement biases of inequality due to item non response. We take a baseline survey and artificially corrupt the data employing several alternative non-linear functions that simulate pat- terns of income non-response, and show how biased inequality statistics can be when item non-responses are ignored. The comparative assessment of correction methods indicates that most methods are able to partially correct for missing data biases. Sample reweighting based on probabilities on non-response produces inequality estimates quite close to true values in most simulated missing data patterns. Matching and Pareto corrections can also be effective to correct for selected missing data patterns. Other methods, such as Single and Multiple imputations and Machine Learning meth- ods are less effective. A final discussion provides some elements that help explaining these findings.

Featured image: Jason-Leung-on-unsplash

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Personality and Entrepreneurship. A new GLO Discussion Paper by GLO Fellow Alexander Kritikos.

August 22, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper shows that possessing certain personality characteristics will make it more likely that an individual will start an own business and hire staff.

GLO Discussion Paper No. 1137, 2022

Personality and Entrepreneurship – Download PDF
by Kritikos, Alexander

GLO Fellow Alexander Kritikos

Author Abstract: Does personality matter? Is an individual who is open to experience more or less likely to become an entrepreneur? Is it better to score low or high in agreeableness for surviving as an entrepreneur? To the extent that personality captures one part of entrepreneurial abilities, which are usually unobservable, the analysis of traits and personality characteristics helps better understanding such abilities. This article reviews research on the relationship between personality and entrepreneurship since 2000 and shows that possessing certain personality characteristics will make it more likely that an individual will start an own business and hire staff. More specifically, with respect to the entry decision, research finds that nearly all so-called Big Five factors as well as several specific personality characteristics influence the entry probability into entrepreneurship. Further, entrepreneurs are more likely to hire, the higher they score in risk tolerance, trust, openness to experience, and conscientiousness. However, different factors such as low scores in agreeableness, the only Big Factor that does not affect entrepreneurial entry, influence entrepreneurial survival. And for some of characteristics that influence entrepreneurial entry, like high scores in the factor openness for experience or in risk tolerance, “revolving door effects” are found, explaining why some entrepreneurs subsequently exit again the market.

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Board-level worker representation. A new GLO Discussion Paper of GLO Fellow Aleksandra Gregoric.

August 21, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper explains the establishment of this mechanism of employee voice and reviews the impacts .

GLO Discussion Paper No. 1136, 2022

Board-level worker representation – Download PDF
by Gregorič, Aleksandra

GLO Fellow Aleksandra Gregoric

Author Abstract: This chapter reviews the literature on board-level worker representation (BLWR). BLWR refers to workers’ legally sanctioned rights to take part in the decisions of their employers’ board of directors as full or consultative members, regardless of their underlying equity investments. It provides information about the incidence of BLWR across countries, and the factors that likely contributed to the establishment of this mechanism of employee voice. It reviews theory on the positive and negative impacts of BLWR for workers and firms, summarizes the related empirical evidence, and concludes by pointing to the open gaps as avenues for future research.

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Job Satisfaction and Trade Union Membership in Germany. A new GLO Discussion Paper by GLO Fellows Laszlo Goerke & Yue Huang.

August 20, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds no causal impact of individual union membership on job satisfaction for Germany from 1985 to 2019.

GLO Discussion Paper No. 1135, 2022

Job Satisfaction and Trade Union Membership in Germany – Download PDF
by Goerke, Laszlo & Huang, Yue

GLO Fellows Laszlo Goerke & Yue Huang

Author Abstract: Using panel data from 1985 to 2019, we provide the first comprehensive investigation of the relationship between trade union membership and job satisfaction in Germany. Cross-sectional analyses reveal a negative correlation, while fixed effects estimates indicate an insignificant relationship. This is also true if we incorporate information on collective bargaining coverage or the existence of works councils in subsamples for which this data is available. To address the endogeneity of union membership, we generate information on the union density individuals faced in their industry and region. This time-variant IV suggests no causal impact of individual union membership on job satisfaction. Finally, using different estimation models, we investigate whether the effects vary by gender, age, birth year, and employment status.

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Economic recession, parental unemployment and adolescents’ health-related quality of life and mental health outcomes in Greece. A new GLO Discussion Paper by GLO Fellow Nick Drydakis.

August 19, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds parental unemployment detrimental to adolescents’ health-related quality of life and mental health .

GLO Discussion Paper No. 1134, 2022

Economic recession, parental unemployment and adolescents’ health-related quality of life and mental health outcomes in Greece – Download PDF
by Drydakis, Nick

GLO Fellow Nick Drydakis

Author Abstract: This study examines whether an association exists between parental unemployment and health-related quality of life and mental health for adolescents aged 15-18 in Athens, Greece. The gathered dataset covers the same upper high schools in two periods, 2011-2013 and 2017-2019. The study finds that parental unemployment bears an association with decreased health-related quality of life and increased adverse mental health symptoms for adolescents. Moreover, the 2011-2013 period, a period of increased parental unemployment, saw a decrease in health-related quality of life and increased adverse mental health symptoms for adolescents. In addition, parental unemployment proved more detrimental to adolescents’ health-related quality of life and mental health in 2011-2013 than in 2017-2019. The present research ranks among the first studies to examine whether parental unemployment could be associated with worse health-related quality of life and mental health for adolescents during periods of increased parental unemployment. Public policies that can reduce the adverse effects of parental unemployment on adolescents’ health-related outcomes require consideration. This approach proves critical because deteriorated health-related quality of life and mental health can negatively impact on adolescents’ human capital, progression, income, and future health.

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How does intrahousehold bargaining power impact labor supply? European cross-country evidence (2004-2019). A new GLO Discussion Paper by Ignacio Belloc and GLO Fellows José Alberto Molina & Jorge Velilla.

August 3, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper provides results consistent with theoretical sharing rules, and distribution factors that empower a given spouse are mainly positively correlated with increases in the share of income they attract from intrahousehold bargaining.

GLO Discussion Paper No. 1132, 2022

How does intrahousehold bargaining power impact labor supply? European cross-country evidence (2004-2019) – Download PDF
by Belloc, Ignacio & Molina, José Alberto & Velilla, Jorge

GLO Fellows José Alberto Molina & Jorge Velilla

Author Abstract: This paper analyzes how intrahousehold bargaining power impacts labor supply, for seventeen European countries. To that end, we estimate a collective model using the European Union Statistics on Income and Living Conditions for the period 2004-2019, and we study the validity of several potential distribution factors; that is to say, variables that impact labor supply only through intrahousehold bargaining power. Results show some degree of heterogeneity in the responses of labor supply to intrahousehold bargaining power. Spouses’ education and the age gap operate as distribution factors in central European countries, such as Austria, Belgium, France, Luxembourg, and Switzerland. On the other hand, in the Mediterranean South countries, the share of unearned income of the wife operates as a distribution factor in Italy, Portugal, and Spain, and in countries of Eastern Europe (Czech Republic, Hungary, Latvia, and Lithuania), the sex ratio, wives’ non-labor income share, spouses’ age and education gap, and the fertility rate all operate as distribution factors. In northern economies, such as Denmark and Estonia, we find evidence for share of unearned income, age gap, and fertility rate, while in islands, such as Ireland and the United Kingdom, the sex ratio, the share of unearned income, the age and education gap, and the fertility rate are suitable bargaining power variables. The results are consistent with theoretical sharing rules, and distribution factors that empower a given spouse are mainly positively correlated with increases in the share of income they attract from intrahousehold bargaining.

Featured image: dainis-graveris-unsplash

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Profits, Pandemics, and Lockdown Effectiveness in Nursing Home Networks. A new GLO Discussion Paper by GLO Fellow Guy Tchuente and colleagues.

August 2, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds for the USA that ‘for-profit’ nursing homes experience higher COVID-19 death rates than ‘not-for-profit’ nursing homes.

GLO Discussion Paper No. 1131, 2022

Profits, Pandemics, and Lockdown Effectiveness in Nursing Home Networks – Download PDF
by Pongou, Roland & Sidie, Ghislain Junior & Tchuente, Guy & Tondji, Jean-Baptiste

GLO Fellow Guy Tchuente

Author Abstract: How do pandemics affect for-profit and not-for-profit organizations differently? To address this question, we analyze optimal lockdowns in a two-sector continuous-time individual-based mean-field epidemiological model. We uncover a unique solution that depends on network structure, lockdown effectiveness, and the planner’s tolerable infection incidence. Using unique data on nursing home networks in the United States, we calibrate the model and jointly quantify state-level lockdown effectiveness and preference for enforcing stringent containment strategies during the COVID-19 pandemic. We also empirically validate simulation results derived from the theoretical analyses. We find that for-profit nursing homes experience higher COVID-19 death rates than not-for-profit nursing homes. In addition, this differential health effect increases with lockdown effectiveness.

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The gasoline price and the commuting behavior: Towards sustainable modes of transport. A new GLO Discussion Paper by Ignacio Belloc & GLO Fellows José Ignacio Gimenez-Nadal and José Alberto Molina.

August 1, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper using data from the American Time Use Survey for the years 2003-2019, and collecting data on gasoline price by state and year, finds that higher gasoline prices are related to less commuting by private car, and more commuting by public transport, walking, and cycling.

GLO Discussion Paper No. 1130, 2022

The gasoline price and the commuting behavior: Towards sustainable modes of transport – Download PDF
by Belloc, Ignacio & Giménez-Nadal, José Ignacio & Molina, José Alberto

GLO Fellows José Ignacio Gimenez-Nadal and José Alberto Molina

Author Abstract: This paper analyzes how gasoline price is related to the time workers in the US spend commuting by private vehicle, public transport, walking, or cycling. Using data from the American Time Use Survey for the years 2003-2019, and collecting data on gasoline price by state and year, we find that higher gasoline prices are related to less commuting by private car, and more commuting by public transport, walking, and cycling, the latter being transportation alternatives that are more eco-friendly. A 1% increase in gas prices is associated with an increase of 0.325%, 0.568% and 0.129% in the commuting time by public and physical modes (walking and cycling), respectively. By contrast, a decrease of 0.638% is found in the proportion of commuting done by private car. Furthermore, the elasticity differs by urban characteristics, showing relatively larger values in urban areas for private and public modes. By analyzing the relationship between commuting time, and gasoline prices in the US, our results may serve to inform future policies aiming to develop a low-carbon transport system, especially in urban areas where workers may be more affected by gasoline prices (and thus taxation).

Featured image: Manuel-Lardizabal-on-Unsplash

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Re-examining adaptation theory using Big Data: Reactions to external shocks. A new GLO Discussion Paper by GLO Fellows Talita Greyling and Stephanie Rossouw.

July 31, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds that Covid-19 and the Russian war against Ukraine both had negative effects on Gross National Happiness across the world.

GLO Discussion Paper No. 1129, 2022

Re-examining adaptation theory using Big Data: Reactions to external shocks – Download PDF
by Greyling, Talita & Rossouw, Stephanié

GLO Fellows Talita Greyling and Stephanie Rossouw

Author Abstract: During the global response to COVID-19, the analogy of fighting a war was often used. In 2022, the world faced a different war altogether, an unprovoked Russian invasion of Ukraine. Since 2020 the world has faced these unprecedented shocks. Although we realise these events’ health and economic effects, more can be known about the happiness effects on the people in a country and how it differs between a health and a war shock. Additionally, we need to investigate if these external shocks do affect wellbeing, how they differ from one another, and how long it takes happiness to adapt to these shocks. Therefore, this paper aims to compare these two external shocks for ten countries spanning the Northern and Southern hemispheres to investigate the effect on happiness. By investigating the aforementioned, we also re-examine the adaptation theory and see whether it holds at the country level. We use a unique dataset derived from tweets extracted in real-time per country. We derive each tweet’s underlying sentiment by applying Natural Language Processing (machine learning). Using the sentiment score, we apply algorithms to construct daily time-series data to measure happiness (Gross National Happiness (GNH)). Our Twitter dataset is combined with data from Oxford’s COVID-19 Government Response Tracker. We find that in both instances, the external shocks caused a decrease in GNH. Considering both types of shocks, the adaptation to previous happiness levels occurred within weeks. Understanding the effects of external shocks on happiness is essential for policymakers as effects on happiness have a spillover effect on other variables such as production, safety and trust. Furthermore, the additional macro-level results on the adaptation theory contribute to previously unexplored fields of study.

Featured image: Elijah-Hail-on-Unsplash

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Unemployment and Health: A Meta-Analysis. A new GLO Discussion Paper by GLO Fellow Matteo Picchio and Michele Ubaldi.

July 30, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds that the average effect of unemployment on health is negative, but small.

GLO Discussion Paper No. 1128, 2022

Unemployment and Health: A Meta-Analysis – Download PDF
by Picchio, Matteo & Ubaldi, Michele

GLO Fellow Matteo Picchio

Author Abstract: This paper is a meta-analysis on the relationship between unemployment and health. Our meta-dataset is made up of 327 study results coming from 65 articles published in peer-reviewed journals between 1990 and 2021. We find that publication bias is important, but only for those study results obtained through differencein- differences or instrumental variables estimators. The average effect of unemployment on health is negative, but small in terms of partial correlation coefficient. We investigate if findings are heterogeneous among several research dimensions. We find that unemployment is mostly effective on the psychological domains of health and that short- and long-term unemployment spells equally affect health. Dealing with endogeneity issues is important and, when this is done, the unemployment effects on health are closer to be nil.

Featured image: Jose-Antonio-Gallego-Vázquez-on-Unsplash

Ends;

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