Category Archives: Discussion Paper

The Benefits of Medicaid Home and Community-Based Services on Health. A new GLO Discussion Paper by Yinan Liu & GLO Affiliate Xianhua Zai.

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

A new GLO Discussion Paper shows that the Medicaid Home and Community- Based Services program in the United States is beneficial to improve general health outcomes of older individuals.

GLO Discussion Paper No. 1079, 2022

The Benefits of Medicaid Home and Community-Based Services on Health – Download PDF
by Liu, Yinan & Zai, Xianhua

GLO Affiliate Xianhua Zai

Author Abstract: The Medicaid Home and Community- Based Services (HCBS) program in the United States subsidizes the long-term care provided at home or in community-based settings for older adults. Little is known about how HCBS affects the well-being of the aging population. Using detailed information about health from the Health and Retirement Study (HRS) linked with state-level HCBS policy expenditures, we show that HCBS is beneficial to improve general health outcomes of older individuals. Our results find that HCBS generosity is positively associated with the probability of older individuals self-reporting better health status, mitigating functional mobility limitations, showing better emotional feelings, and increasing cognitive skills. In addition, these health benefits of HCBS differ across groups by resources and demographic characteristics.

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JUST PUBLISHED
Vol. 35, Issue 3, July 2022: Journal of Population Economics: 15 articles
https://link.springer.com/journal/148/volumes-and-issues/35-3

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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Improving Entrepreneurs’ Digital Skills and Firms’ Digital Competencies through Business Apps Training: A Study of Small Firms. A new GLO Discussion Paper by GLO Fellow Nick Drydakis.

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

A new GLO Discussion Paper shows that business apps training in Athens/Greece was positively associated with migrant entrepreneurs’ attitudes toward technology, willingness to change, and internet/digital skills, increased use of business apps and with firms’ digital competencies in general.

GLO Discussion Paper No. 1078, 2022

Improving Entrepreneurs’ Digital Skills and Firms’ Digital Competencies through Business Apps Training: A Study of Small Firms – Download PDF
by Drydakis, Nick

GLO Fellow Nick Drydakis

Author Abstract: The lack of awareness of digital services and outcomes is a concern in business environments since small firms need to improve their digital competencies. The present exploratory study investigated whether business apps training was associated with entrepreneurs’ and firms’ digital advancements. The business apps training was offered to migrant entrepreneurs running small firms in Athens (Greece) over three months, with data collected before and after the training. The analysis revealed that business apps training was positively associated with entrepreneurs’ attitudes toward technology, willingness to change (relating to technology/skills/operations), and internet/digital skills, as well as increased use of business apps. Moreover, the training was positively associated with firms’ digital competencies related to communication, networking, social media, customer relationship management, payments, accounting and finance, and project management operations. Furthermore, the business apps training was positively associated with migrant entrepreneurs’ integration into Greek society. Given the increased number of migrants in Europe, factors that positively impact their entrepreneurship and integration merit consideration. The study provides researchers with a systematic method for evaluating the association between business app training and entrepreneurs’ and firms’ digital advancements.

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JUST PUBLISHED
Vol. 35, Issue 3, July 2022: Journal of Population Economics: 15 articles
https://link.springer.com/journal/148/volumes-and-issues/35-3

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The effects of natural resource extraction on household expenditure patterns: Evidence from Mongolia. A new GLO Discussion Paper by GLO Fellow Odmaa Narantungalag.

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

A new GLO Discussion Paper shows how mining activities benefited local residents in Mongolia.

GLO Discussion Paper No. 1077, 2022

The effects of natural resource extraction on household expenditure patterns: Evidence from Mongolia – Download PDF
by Narantungalag, Odmaa

GLO Fellow Odmaa Narantungalag

Author Abstract: This paper investigates the economic impacts of the mining sector on household expenditures. Employing the difference-in-differences model and the Mongolia Household Socio-Economic Survey data from 2008 to 2016, I find that the mining activities benefited local residents. Specifically, mining activities increase household expenditures on food, health, and electricity, respectively, while households reduce their expenditures on education and other non-food items. Interestingly, illness did not increase in the resource-producing region, while educational attainment improved. The findings highlight that the positive impacts of the mining sector are likely to be higher than what is determined by traditional welfare measurements of income and consumption. I provide some anecdotal evidence that the changes in household expenditure patterns can be due to increased availability of health care services and educational facilities in the mining region.

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China’s Labor Market Demand in the Shadow of COVID-19: Evidence from an Online Job Board. A new GLO Discussion Paper by GLO Fellow Xiangquan Zeng, GLO Affiliate Shuai Chu and Xuan Chen.

April 13, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper quantifies the dynamic impacts of China’s stringent control measures on the country’s labor demand during the pandemic.

GLO Discussion Paper No. 1074, 2022

China’s Labor Market Demand in the Shadow of COVID-19: Evidence from an Online Job Board – Download PDF
by Zeng, Xiangquan & Chu, Shuai & Chen, Xuan

GLO Fellow Xiangquan Zeng & GLO Affiliate Shuai Chu

Author Abstract: Using data of the largest online job board in China, Zhaopin.com, we examine the impacts of the lockdown policy on the Chinese labor market demand during the coronavirus disease (COVID-19) pandemic. The analyses reveal that the lockdown policy, which was implemented in Wuhan on January 23, 2020, reduced the labor market demand drastically. Specifically, the “Number of Companies” that posted weekly job vacancies, “Number of Positions,” and “Number of Employees” to be recruited reduced rapidly by 18.5%, 21.9%, and 30.0%, respectively. Furthermore, this impact of the lockdown policy began to reduce, thus allowing the labor demand to rebound four weeks after the outbreak. The heterogeneity analyses reveal that the industries with high physical proximity and those manufacturing non-essential products/services, as well as small-size firms, were greatly impacted by the policy. No statistical difference was observed between the impacts on the cities that implemented specific control measures and those that did not. This study quantifies the dynamic impacts of China’s stringent control measures on the country’s labor demand during the pandemic. These findings indicate that the effective management of public health crises in conjunction with economic policies is critical to revitalizing labor markets.

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Confidential and legal access to abortion and contraception in the United States, 1960-2020. A new GLO Discussion Paper by GLO Fellow Caitlin Myers.

April 12, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper provides a suggested coding of the policy environment over the past 60 years.

Accepted for publication in the Journal of Population Economics.

GLO Discussion Paper No. 1073, 2022

Confidential and legal access to abortion and contraception in the United States, 1960-2020 – Download PDF
by Myers, Caitlin Knowles

GLO Fellow Caitlin Myers

Author Abstract: An expansive empirical literature estimates the causal effects of policies governing young women’s confidential and legal access to contraception and abortion. I present a new review of changes in the historical policy environment in the United States that serve as the foundation of this work. I consult primary sources including annotated statutes, judicial rulings, attorney general opinions, and advisory articles in medical journals, as well as secondary sources including newspaper articles and snapshots of various policy environments prepared by scholars, advocates, and government organizations. Based on this review, I provide a suggested coding of the policy environment over the past 60 years. I also present and compare the legal coding schemes used in the empirical literature and where possible I resolve numerous and substantial discrepancies.

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Disentangling the attractiveness of telework to employees: a factorial survey experiment. A new GLO Discussion Paper by GLO Fellow Stijn Baert & colleagues.

April 12, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds that the attractiveness of telework is particularly explained by expectations of an improved work-life balance, more work scheduling autonomy, a higher job satisfaction, and more work methods autonomy in jobs with a greater possibility to telework.

GLO Discussion Paper No. 1076, 2022

Disentangling the attractiveness of telework to employees: a factorial survey experiment – Download PDF
by Moens, Eline & Verhofstadt, Elsy & Van Ootegem, Luc & Baert, Stijn

GLO Fellow Stijn Baert

Author Abstract: This research adds to the literature on the attractiveness of telework to employees. To this end, we set up an innovative factorial survey experiment in which a high-quality sample of employees evaluates job offers with diverging characteristics, among which a wide variation in telework possibilities. We find that the relationship between the possibility to telework and job attractiveness is approximately linear: 10 percentage points more telework hours yield a rise of 2.2 percentage points in job attractiveness and, therefore, the willingness to give up an increase of 2.3 percentage points in wage in the new job. Our experimental design also allows us to investigate the underlying mechanisms of this relationship as well as its moderators. We find that the attractiveness of telework is particularly explained by expectations of an improved work-life balance, more work scheduling autonomy, a higher job satisfaction, and more work methods autonomy in jobs with a greater possibility to telework. In addition, our analyses show that less conscientious employees are on average more attracted to jobs with greater telework possibilities, so that it is important that self-selection in jobs with more telework is well-monitored.

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Are you Puffing your Children’s Future Away? Energy Poverty and Childhood Exposure to Passive Smoking. A new GLO Discussion Paper by GLO Fellow Kushneel Prakash and colleagues.

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

A new GLO Discussion Paper suggests that passive smoking in childhood creates energy poverty later in life.

GLO Discussion Paper No. 1075, 2022

Are you Puffing your Children’s Future Away? Energy Poverty and Childhood Exposure to Passive Smoking – Download PDF
by Prakash, Kushneel & Churchill, Sefa Awaworyi & Smyth, Russell

GLO Fellow Kushneel Prakash

Author Abstract: We examine whether having a parent who smoked during one’s childhood or adolescence increases the probability of being in energy poverty in adulthood. We find that people who had a parent who smoked when they were young are 0.8 to 1.4 percentage points more likely to be in energy poverty later in life. Various checks suggest that this relationship can be regarded as being plausibly causal. We identify health, human capital, labour market outcomes and non-cognitive traits as channels through which early life exposure to passive smoking increases the likelihood of being in energy poverty. Our results have important implications for early life interventions to address the deficits caused by exposure to passive smoking.

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Expanding the Measurement of Culture with a Sample of Two Billion Humans. A new GLO Discussion Paper by GLO Fellow Ömer Özak and colleagues.

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

A new GLO Discussion Paper uses Facebook data to expand the measurement of culture to establish new and rich insights.

GLO Discussion Paper No. 1070, 2022

Expanding the Measurement of Culture with a Sample of Two Billion Humans – Download PDF
by Obradovich, Nick & Özak, Ömer & Martín, Ignacio & Ortuño-Ortín, Ignacio & Awad, Edmond & Cebrián, Manuel & Cuevas, Rubén & Desmet, Klaus & Rahwan, Iyad & Cuevas, Ángel

GLO Fellow Ömer Özak

Author Abstract: Culture has played a pivotal role in human evolution. Yet, the ability of social scientists to study culture is limited by the currently available measurement instruments. Scholars of culture must regularly choose between scalable but sparse survey-based methods or restricted but rich ethnographic methods. Here, we demonstrate that massive online social networks can advance the study of human culture by providing quantitative, scalable, and high-resolution measurement of behaviorally revealed cultural values and preferences. We employ publicly available data across nearly 60,000 topic dimensions drawn from two billion Facebook users across 225 countries and territories. We first validate that cultural distances calculated from this measurement instrument correspond to traditional survey-based and objective measures of cross-national cultural differences. We then demonstrate that this expanded measure enables rich insight into the cultural landscape globally at previously impossible resolution. We analyze the importance of national borders in shaping culture and compare subnational divisiveness to gender divisiveness across countries. The global collection of massive data on human behavior provides a high-dimensional complement to traditional cultural metrics. Further, the granularity of the measure presents enormous promise to advance scholars’ understanding of additional fundamental questions in the social sciences. The measure enables detailed investigation into the geopolitical stability of countries, social cleavages within both small and large-scale human groups, the integration of migrant populations, and the disaffection of certain population groups from the political process, among myriad other potential future applications.

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The Shadow of the Neolithic Revolution on Life Expectancy: A Double-Edged Sword. A new GLO Discussion Paper by GLO Fellows Raphael Franck, Oded Galor and Ömer Özak.

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

A new GLO Discussion Paper establishes the presence of conflicting forces – the beneficial effects on life expectancy before the second epidemiological transition and their adverse effects thereafter.

GLO Discussion Paper No. 1071, 2022

The Shadow of the Neolithic Revolution on Life Expectancy: A Double-Edged Sword – Download PDF
by Franck, Raphaël & Galor, Oded & Moav, Omer & Özak, Ömer

GLO Fellows Raphael Franck, Oded Galor and Ömer Özak

Author Abstract: This research explores the persistent effect of the Neolithic Revolution on the evolution of life expectancy in the course of human history. It advances the hypothesis and establishes empirically that the onset of the Neolithic Revolution and the associated rise in infectious diseases triggered a process of adaptation reducing mortality from infectious diseases while increasing the propensity for autoimmune and in ammatory diseases. Exploiting an exogenous source of variation in the timing of the Neolithic Revolution across French regions, the analysis establishes the presence of these conflicting forces – the beneficial effects on life expectancy before the second epidemiological transition and their adverse effects thereafter.

See also: Oded Galor, The Journey of Humanity

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Life satisfaction and job insecurity: Evidence from Albania. A new GLO Discussion Paper by GLO Affiliate Elvisa Drishti and Fiona Carmichael.

April 4, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds a negative effect of perceived job insecurity on life satisfaction.

GLO Discussion Paper No. 1072, 2022

Life satisfaction and job insecurity: Evidence from Albania – Download PDF
by Drishti, Elvisa & Carmichael, Fiona

GLO Affiliate Elvisa Drishti

Author Abstract: Fear of the threat of job loss is likely to elicit negative thoughts that have adverse consequences for not only job satisfaction, but also, all-round happiness and satisfaction with life. Using nationally representative cross-sectional data, this study provides evidence of the negative effect of perceived job insecurity on life satisfaction in post-communist Albania, an under-research context. This adverse effect is found to be more pronounced for women and for blue-collar workers: being in a blue-collar job is associated with lower overall life satisfaction, but if this job is perceived as insecure, the negative effect on life satisfaction is magnified. In contrast, workers in well-paying jobs are more satisfied with their lives and, relatedly, higher education also has a positive impact, more so for males. Evidence of the quality of life effects of job insecurity can be used to inform workplace policy initiatives and practices, particularly as measures of life satisfaction, well-being and happiness are increasingly considered appropriate indicators of social progress and the ultimate goal of public policy.

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The heterogeneity of Okun’s law: A metaregression analysis. A new GLO Discussion Paper by M. Sylvina Porras-Arena & GLO Fellow Ángel L. Martín-Román.

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

A new GLO Discussion Paper finds considerable heterogeneity.

GLO Discussion Paper No. 1069, 2022

The heterogeneity of Okun’s law: A metaregression analysis – Download PDF
by Porras-Arena, M. Sylvina & Martín-Román, Ángel L.

GLO Fellow Ángel L. Martín-Román

Author Abstract: Okun’s law is an extremely influential parameter in empirical research and policy analysis, based on the sizable number of estimates from this perspective. Nevertheless, it is also subject to considerable heterogeneity. We first show graphical and statistical evidence on the existence of a high level of heterogeneity among Okun’s law estimates in existing research, then analyze potential sources of heterogeneity. Using 1,213 estimates of Okun’s law for various countries, regions, and time periods, separate metaregressions are estimated; one using estimates with the unemployment rate as the dependent variable, and the other with output as the dependent variable. Our findings indicate that the specification of the underlying model of the relationship has an effect on the magnitude of Okun’s parameter. Differential labor market characteristics may also explain part of the observed heterogeneity. Finally, the results are also found to be influenced by methodological issues, such as the type of data (time series or panel data), the frequency of the data (annual or quarterly), the spatial coverage of the estimates (country, region, or group of countries), whether more variables are included in estimations, and whether a dynamic or static, symmetric or asymmetric model is estimated. This paper contributes to highlight the heterogeneity affecting the estimates of Okun’s law and that needs to be taken into account. In order to know the “true” relationship between unemployment and economic growth, researchers should bear in mind that there are a number of methodological choices that have consequences for the results.

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Citizens’ Opinions of and Experiences with Government Responses to COVID-19 Pandemic in Viet Nam. A new GLO Discussion paper by GLO Fellow Cuong Nguyen and colleagues.

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

A new GLO Discussion Paper finds that the pandemic had a more severe impact in 2021 than in 2020, and there are great concerns about health issues.

GLO Discussion Paper No. 1068, 2022

Citizens’ Opinions of and Experiences with Government Responses to COVID-19 Pandemic in Viet Nam – Download PDF
by Do, Huyen Thanh & Nguyen, Cuong Viet & Nguyen, Long Thanh & Nguyen, Phuong Minh & Ngo, Quyen Ha & Phung, Tung Duc

GLO Fellow Cuong Nguyen

Author Abstract: This study explores the impact of COVID-19 and how Vietnamese citizens perceived and experienced measures adopted by central and local governments to contain the CVODI-19 pandemic in 2021. In general, the COVID-19 pandemic had a more severe impact in 2021 than in 2020. Citizens showed great concern about their children’s education (76 percent) and their personal health (68 percent). COVID-19 negatively impacted employment and income, with 77 percent of the respondents reporting income reduction due to the pandemic. The poor, ethnic minorities, unskilled, non-farm workers, and those working in the service sector or living in provinces with longer lockdowns were the most likely to suffer. Compared with 2020, in 2021, respondents showed a high but declining positive assessment of government performance in dealing with the pandemic, with 84 percent of the respondents rating the responses from the Central Government as good or very good (97 percent in 2020), 89 percent rating the response from their provincial governments’ responses as good or very good (94 percent in 2020). Only 13 percent of the respondents received support from the Government’s package. However, ethnic minorities, female, poorer and rural respondents were less likely to receive the support. For the support recipients, delivery was regarded as timely and transparent, but administrative procedures to get access to the package were not simple. Meanwhile, support from non-governmental organizations (NGOs), social organizations, charity foundations, and individuals was distributed more efficiently, with 25 percent of the respondents receiving support from these sources.

Featured image: Adli-Wahid-on-Unsplash

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Trends and Drivers of Inequality: Recent Evidence from Vietnam. A new GLO Discussion Paper by GLO Fellow Cuong Nguyen and colleagues.

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

A new GLO Discussion Paper finds that inequality has been stable and tends to be higher in provinces with higher initial income and poverty.

GLO Discussion Paper No. 1067, 2022

Trends and Drivers of Inequality: Recent Evidence from Vietnam – Download PDF
by Dang, Trang Huyen & Nguyen, Cuong Viet & Phung, Tung Duc

GLO Fellow Cuong Nguyen

Author Abstract: This study provides evidence on the trends and drivers of inequality in Vietnam using Vietnam Household Living Standard Surveys. We find that inequality, regardless of the choice of welfare indicators and inequality measurements, has been stable in Vietnam. Inequality in income or expenditure is remarkably lower than inequality in assets. In 2016, the Gini coefficient of per capita expenditure and per capita income was 0.35 and 0.39, respectively, while the Gini coefficient in electricity consumption and housing value was 0.42 and 0.62, respectively. Using the decomposition analysis, we find that inequality between provinces accounts for 22% of the total inequality, while inequality between ethnic groups accounts for 15% of the total inequality. The regression analysis shows that inequality tends to be higher in provinces with higher initial income and poverty. This implies that high-income people are more likely to benefit from economic growth, especially in better-off provinces.

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A New Claims-Based Unemployment Dataset: Application to Postwar Recoveries Across U.S. States. A new GLO Discussion Paper by GLO Fellow David Munro and colleagues.

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

A new GLO Discussion Paper provides a historical monthly unemployment series for U.S. states going back to January 1947.

GLO Discussion Paper No. 1066, 2022

A New Claims-Based Unemployment Dataset: Application to Postwar Recoveries Across U.S. States – Download PDF
by Fieldhouse, Andrew & Howard, Sean & Koch, Christoffer & Munro, David

GLO Fellow David Munro

Author Abstract: Using newly digitized unemployment insurance claims data we construct a historical monthly unemployment series for U.S. states going back to January 1947. The constructed series are highly correlated with the Bureau of Labor Statics’ state-level unemployment data, which are only available from January 1976 onwards, and capture consistent patterns in the business cycle. We use our claims-based unemployment series to examine the evolving pace of post-war unemployment recoveries at the state level. We find that faster recoveries are associated with greater heterogeneity in the recovery rate of unemployment and slower recoveries tend to be more uniformly paced across states. In addition, we find that the pace of unemployment recoveries is strongly correlated with a states’ manufacturing share of output.

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Rally Post-Terrorism. A new GLO Discussion Paper by GLO Fellow Shuai Chen.

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

A new GLO Discussion Paper analyzes the driver of the rally effect of terrorism by disentangling voluntary solidarity from economically or politically elicited solidarity.

GLO Discussion Paper No. 1065, 2022

Rally Post-Terrorism – Download PDF
by Chen, Shua

GLO Fellow Shuai Chen

Author Abstract: This study examines whether the rally ’round the flag phenomenon is present in the context of terrorist attacks, and investigates the explanations for the related increase of confidence in political institutions and political approval of the incumbent’s job performance. I exploit variations in terrorist occurrences and results across sub-national regions among EU countries from 2008 to 2016. I restrict the sample to only regions where at least one attack took place during the data period, in order to mitigate concerns over selectivity of terrorism in particular areas. I empirically show that both terrorism occurrence and its results (successful or failed attacks) are plausibly exogenous to the prior political and economic climate. Conducting a difference-in-differences analysis, I compare changes in political confidence and approval among individuals who were exposed to an attack in their region to those who were not. With another more sophisticated identification, I also compare such political changes after successful attacks to those after failed attacks of the same type. I find that post-terrorism, individual political confidence and support significantly increased by more than 10 percentage points, and that this political increment was 5 percentage points after successful attacks relative to failed ones. Furthermore, I explore various potential channels suggesting patriotism and civic engagement as mechanisms while rejecting perceived economic capture and political acquisition as alternative explanations. This paper first empirically analyzes the driver of the rally effect of terrorism by disentangling voluntary solidarity from economically or politically elicited solidarity.

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Immigrant Employment and the Contract Enforcement Costs of Offshoring. A new GLO Discussion Paper by GLO Fellow Magnus Lodefalk and colleagues.

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

A new GLO Discussion Paper supports for Sweden the hypothesis that immigrant employees increase offshoring intensity by lowering contract enforcement costs.

GLO Discussion Paper No. 1064, 2022

Immigrant Employment and the Contract Enforcement Costs of Offshoring – Download PDF
by Hatzigeorgiou, Andreas & Karpaty, Patrik & Kneller, Richard & Lodefalk, Magnus

GLO Fellow Magnus Lodefalk

Author Abstract: Offshoring continues to be an important dimension of firms’ internationalization choices. However, offshoring also increases contract enforcement costs by inhibiting the coordination and monitoring of performance. Immigrant employees may reduce such costs through their specific knowledge of the employer, their country of birth and access to foreign networks. We develop a heterogeneous firm framework with immigrants and offshoring costs, including technology leakage. In the model, immigrant employees augment the supervisory services of headquarters and limit technology leakage, thereby reducing contract enforcement costs. Then, we bring our conjectures to rich administrative Swedish microlevel data that include specific information about the characteristics of employees, manufacturing firms and their bilateral offshoring. Our results support the hypothesis that immigrant employees increase offshoring intensity by lowering contract enforcement costs. Hiring one additional immigrant employee can increase offshoring by up to three percent on average, with the strongest effects found for skilled immigrant employees.

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A measure of well-being efficiency based on the World Happiness Report. A new GLO Discussion Paper by GLO Fellows Francesco Sarracino & Kelsey J. O’Connor.

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

A new GLO Discussion Paper does not support the conjecture that economic efficiency promotes well-being.

GLO Discussion Paper No. 1061, 2022

A measure of well-being efficiency based on the World Happiness Report – Download PDF
by Sarracino, Francesco & O’Connor, Kelsey J.

GLO Fellows Francesco Sarracino & Kelsey J. O’Connor

Author Abstract: We propose a measure of well-being efficiency to assess countries’ ability to transform inputs into subjective well-being (Cantril ladder). We use the six inputs (real GDP per capita, healthy life expectancy, social support, freedom of choice, absence of corruption, and generosity) identified in the World Happiness Reports and apply Data Envelopment Analysis to a sample of 126 countries. Efficiency scores reveal that high ranking subjective well-being countries, such as the Nordics, are not strictly the most efficient ones. Also, the scores are uncorrelated with economic efficiency. This means that the implicit assumption that economic efficiency promotes well-being is not supported. Well-being efficiency can be improved by changing the amount (scale) or composition of inputs and their use (technical efficiency). For instance countries with lower unemployment, and greater healthy life expectancy and optimism are more efficient.

Featured image: Elijah-Hail-on-Unsplash

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A Tale of Parallel Processes of Gender (In-)Equality: How Big is the Glass Ceiling for Mena Women? A new GLO Discussion Paper by GLO Fellows Ömer Tuğsal Doruk & Francesco Pastore.

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

A new GLO Discussion Paper finds sizeable glass ceiling effects in all countries considered, and persistent across all industrial sectors and years considered.

GLO Discussion Paper No. 1062, 2022

A Tale of Parallel Processes of Gender (In-)Equality: How Big is the Glass Ceiling for Mena Women? – Download PDF
by Doruk, Ömer Tuğsal & Pastore, Francesco

GLO Fellows Ömer Tuğsal Doruk & Francesco Pastore

Author Abstract: In all the MENA countries considered in this study, namely Jordan Egypt and Tunisia, there has been a significant decrease in the female labor force participation rate over the last two decades. Moreover, existing analysis and the anecdotal evidence suggest that it may be problematic for women to reach a white collar high skill job, also in the more protected public sector, though there is very little empirical evidence on this. By using repeated cross sections of individuals covering periods of up to 20 years (for Egypt), we examine the evolution of the glass ceiling problem for women resorting to the matching approach, which, to our knowledge, has never been used in this field. Instead of looking at the gender gap along the wage distribution, we assess the probability to reach the top professions of manager, professional and technician or associate professional. We find a sizeable glass ceiling effect in all the countries considered. It is a persistent phenomenon across all the industrial sectors and the years considered. The present study sheds new light on the glass ceiling effect for woman in the MENA countries, which is relevant also for other countries.

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The Occupations of Free Women and Substitution with Enslaved Workers in the Antebellum United States. A new GLO Discussion Paper by GLO Fellow Barry Chiswick & RaeAnn H. Robinson.

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

A new GLO Discussion Paper finds that foreign-born and illiterate women were more likely to report having an occupation compared to their native-born and literate counterparts.

GLO Discussion Paper No. 1063, 2022

The Occupations of Free Women and Substitution with Enslaved Workers in the Antebellum United States – Download PDF
by Chiswick, Barry R. & Robinson, RaeAnn H.

GLO Fellow Barry Chiswick

Author Abstract: This paper analyzes the occupational status and distribution of free women in the antebellum United States. It considers both their reported and unreported (imputed) occupations, using the 1/100 IPUMS files from the 1860 Census of Population. After developing and testing the model based on economic and demographic variables used to explain whether a free woman has an occupation, analyses are conducted comparing their occupational distribution to free men, along with analyses among women by nativity, urbanization, and region of the country. While foreign-born and illiterate women were more likely to report having an occupation compared to their native-born and literate counterparts, they were equally likely to be working when unreported family workers are included. In the analysis limited to the slave-holding states, it is shown that the greater the slave-intensity of the county, the less likely were free women to report having an occupation, particularly as private household workers, suggesting substitution in the labor market between free women and enslaved labor.

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Does Economic Insecurity Reduce all Types of Expenditures? A new GLO Discussion Paper by GLO Fellow Anthony Lepinteur & Rémi Yin.

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

A new GLO Discussion Paper finds that consumption declines with greater economic insecurity, and that this decline is greater for those with high risk aversion, but smaller the more necessary the consumption items are.

GLO Discussion Paper No. 1060, 2022

Does Economic Insecurity Reduce all Types of Expenditures? – Download PDF
by Lepinteur, Anthony & Yin, Rémi

GLO Fellow Anthony Lepinteur

Author Abstract: The prudence theory predicts that economic insecurity reduces all consumption expenditures. We question this prediction by estimating the effect of economic insecurity on various expenditure items using an Australian longitudinal data set (HILDA) and panel regressions. Our results confirm that total consumption declines in response to greater economic insecurity and that this decline is greater for those with high risk aversion. However, we observe a clear gradient related to the degree of necessity of goods and services: the more necessary the consumption items, the weaker the effect of insecurity.

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Educational and Skills Mismatches: Unravelling Their Effects on Wages Across Europe. A new GLO Discussion Paper by GLO Fellow François Rycx and colleagues.

March 15, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds a wage penalty associated with overeducation.

GLO Discussion Paper No. 1059, 2022

Educational and Skills Mismatches: Unravelling Their Effects on Wages Across Europe – Download PDF
by Cultrera, Loredana & Mahy, Benoît & Rycx, François & Vermeylen, Guillaume

GLO Fellow François Rycx

Author Abstract: This paper is among the firsts to investigate the impact of overeducation and overskilling on workers’ wages using a unique pan-European database covering twenty-eight countries for the year 2014, namely the CEDEFOP’s European Skills and Jobs (ESJ) survey. Overall, the results suggest a wage penalty associated with overeducation. When interacting educational mismatch with skills mismatch into apparent overeducation and genuine overeducation, the results suggest that the highest wage penalty is reached for workers that are both overeducated and overskilled.

Featured image: Alex-Kotliarskyi-on-Unsplash

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Inequality and occupational change in times of Revolution: The Tunisian perspective. A new GLO Discussion Paper of GLO Fellow Mohamed Ali Marouani & Phuong Minh Le.

March 14, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds that earnings inequality decreased significantly.

GLO Discussion Paper No. 1058, 2022

Inequality and occupational change in times of Revolution: The Tunisian perspective – Download PDF
by Marouani, Mohamed Ali & Le, Phuong Minh

GLO Fellow Mohamed Ali Marouani

Author Abstract: The public sector plays a large role in many developing economies, but its effect on earnings inequality dynamics has not been widely studied. In this paper, we investigate the earnings inequality trends and their determinants in the decades before and after the Tunisian Revolution, focusing on the impact of public wage and employment policy changes. A recentered-influence function (RIF) decomposition is performed to decompose the change in earnings into wage structure and composition effects and to assess the contribution of various determinants of inequality change. We find that earnings inequality decreased significantly during the period of investigation in Tunisia, mainly due to the decrease in the public-private wage gap and in sector wage gaps on the demand side, and the decreasing education premia on the supply side. The increase in marginal returns to average routine-task intensity jobs, the falling return to experience, and the decreasing regional wage gap also contributed to declining earnings inequality, but to a lesser extent.

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The labor market returns to ‘first in family’ university graduates. A new GLO Discussion Paper by GLO Fellow Anna Adamecz-Volgyi and colleagues.

March 13, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper studies how those fare on the labor market whose parents do not have university degrees to find a wage penalty for females but not for males.

GLO Discussion Paper No. 1057, 2022

The labor market returns to ‘first in family’ university graduates – Download PDF
by Adamecz-Völgyi, Anna & Henderson, Morag & Shure, Nikki

GLO Fellow Anna Adamecz-Volgyi

Author Abstract: We examine how first in family (FiF) graduates (those whose parents do not have university degrees) fare on the labor market. We find that among women, FiF graduates earn 7.4% less on average than graduate women whose parents have a university degree. For men, we do not find a FiF wage penalty. A decomposition of the wage difference between FiF and non-FiF graduates reveals two interesting findings. First, two-thirds of the female FiF penalty are explained by certain characteristics, including: having lower attainment in school, attending an elite university, selecting particular degree courses, working in smaller firms, working in jobs that do not require their degree, and motherhood. Second, FiF graduate men also differ in their endowments from non-FiF graduate men; however, FiF men earn higher returns on their endowments than non-FiF men and thus compensate for their relative social disadvantage, while FiF women do not. We also estimate the returns to graduation for potential FiF and non- FiF young people. We find that the wage returns to graduation are not lower among FiF graduates compared to those who match their parents with a degree. The effects of coming from a lower educated family are large and positive for men and large and negative for women in general, irrespective of graduation. We provide some context, offer explanations, and suggest implications of these findings.

Featured image: j-zamora-on-unsplash

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Networks in Population Economics: production and collaborations. A new GLO Discussion Paper by GLO Fellow José Alberto Molina and colleagues.

March 12, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper identifies research community structures and leaderships.

GLO Discussion Paper No. 1051, 2022

Networks in Population Economics: production and collaborations – Download PDF
by Molina, José Alberto & Iñíguez, David & Ruiz, Gonzalo & Tarancón, Alfonso

GLO Fellow José Alberto Molina

Author Abstract: Population Economics (PopEc) covers a number of topics in Economics, as well as in Demography, Labor Studies, Sociology, etc. For example, the economic determinants of population change and demographic behavior covers topics such as household formation, marriage and divorce, fertility, gender, child bearing, schooling, access to labor markets, migration, well-being, and ageing and mortality, among others. In this paper, we analyze the production and networks of a total of 6,472 authors who have published 5,070 papers in Population Journals (indexed in SSCI of WOS) between January 1969 and January 2021 (Journal of Population Economics, Journal of Human Resources, Feminist Economics, the Review of Economics of the Household, the Journal of Demographic Economics, Demography, Population and Development Review, and the European Journal of Population). Using the Impact Factor (IF) of these journals corresponding to the year of publication, our results first identify the academic leaders among those authors, as well as other results in terms of communities. Results reveal that the largest community is led by the sociologist Trude Lappegard, with the community led by the economist Hans-Peter Kohler as a close second. The latter community includes the most prolific author, the economist Samuel H. Preston. Additionally, we note that collaborations among these authors are very rare, with only their neighborhoods collaborating.

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Who is Doing the Chores and Childcare in Dual-earner Couples during the COVID-19 Era of Working from Home? A new GLO Discussion Paper by GLO Fellows Sabrina Pabilonia and Victoria Vernon.

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

A new GLO Discussion Paper finds that when partners worked onsite, mothers and fathers working from home spent more time on childcare, especially mothers, compared to those on-site; fathers spent more time on household chores. However, only mothers’ total unpaid and paid work burden was higher.

GLO Discussion Paper No. 1056, 2022

Who is Doing the Chores and Childcare in Dual-earner Couples during the COVID-19 Era of Working from Home? – Download PDF
by Pabilonia, Sabrina Wulff & Vernon, Victoria

GLO Fellows Sabrina Pabilonia and Victoria Vernon

Author Abstract: In 2020, parents’ work-from-home days increased fourfold following the initial COVID-19 pandemic lockdown period compared to 2015-2019. At the same time, many daycares closed, and the majority of public schools offered virtual or hybrid classrooms, increasing the demand for household-provided childcare. Using time diaries from American Time Use Survey (ATUS) and looking at parents in dual-earner couples, we examine parents’ weekday workday time allocated to paid work, chores, and childcare in the COVID-19 era by the couple’s joint work location arrangements. We determine the work location of the ATUS respondent directly from their diary and proxy the partner’s work-from-home status using the share of workers reporting work from home in their occupation. When their partners worked onsite, mothers and fathers working from home spent more time on childcare, especially mothers, compared to those on-site; fathers spent more time on household chores. However, only mothers’ total unpaid and paid work burden was higher. In the fall, fathers working from home worked substantially fewer paid hours and spent even more time on household production. When both parents worked from home compared to both worked on-site, mothers and fathers working from home worked roughly equally fewer paid hours and did more secondary childcare, though fathers did more household production, suggesting they shared the increased work burden resulting from the pandemic more equally. However, in the fall, only mothers did more childcare when both worked from home. We also find that mothers spread their work throughout the day when working from home.

Featured image: dainis-graveris-unsplash

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Immigrant-native gap in risk and time preferences in Germany: Levels, socio-economic determinants, and recent changes. A new GLO Discussion Paper by GLO Fellow Sumit Deole and Marc Oliver Rieger.

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

A new GLO Discussion Paper finds that the immigrant-native gap in risk preferences has widened for recent immigration cohorts, while for time preferences the gap remains large.

GLO Discussion Paper No. 1055, 2022

Immigrant-native gap in risk and time preferences in Germany: Levels, socio-economic determinants, and recent changes – Download PDF
by Deole, Sumit S. & Rieger, Marc Oliver

GLO Fellow Sumit Deole

Author Abstract: We present new descriptive evidence on the immigrant-native gap in risk and time preferences in Germany, one of the most preferred host countries for immigration. Using the recent waves of the Socio-Economic Panel (SOEP) dataset, we find that the immigrant-native gap in risk preferences has widened for recent immigration cohorts, especially around the 2015 European Refugee Crisis. We attribute the recent widening to decreased assimilation rates of new immigrants caused by a reduced integration due to sudden increases in immigrants flows from culturally diverse parts of the world, particularly around the year 2015. We also find that the immigrant-native gap varies across different migrant groups: “Opportunity seekers”, which we define as economic immigrants who intend to stay in Germany only temporarily, are very similar in their risk preferences to natives. Other immigrants, however, are substantially more risk-averse than natives. A smaller gap in risk preferences is also found among migrants who are female, highly educated, proficient in the host language, self-employed and working in predominantly high-skilled jobs. Concerning time preferences, although a noticeably large immigrant-native gap is evident, the gap is not found to vary across most individual-level socio-economic variables.

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Occupational Regulation, Institutions, and Migrants’ Labor Market Outcomes. A new GLO Discussion paper by GLO Fellow Davud Rostam-Afschar and colleagues.

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

A new GLO Discussion Paper finds that it matters, and there is a more intense screening of migrants by licensing institutions than by certification and unionization.

GLO Discussion Paper No. 1052, 2022

Occupational Regulation, Institutions, and Migrants’ Labor Market Outcomes – Download PDF
by Koumenta, Maria & Pagliero, Mario & Rostam-Afschar, Davud

GLO Fellow Davud Rostam-Afschar

Author Abstract: We study how licensing, certification and unionisation affect the wages of natives and migrants and their representation among licensed, certified, and unionized workers. We provide evidence of a dual role of labor market institutions, which both screen workers based on unobservable characteristics and also provide them with wage setting power. Labor market institutions confer significant wage premia to native workers (3.9, 1.6, and 2.7 log points for licensing, certification, and unionization respectively), due to screening and wage setting power. Wage premia are significantly larger for licensed and certified migrants (10.2 and 6.6 log points), reflecting a more intense screening of migrant than native workers. The representation of migrants among licensed (but not certified or unionized) workers is 14% lower than that of natives. This implies a more intense screening of migrants by licensing institutions than by certification and unionization.

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Active political engagement, political patronage, and local labour markets – the example of Shkoder. A new GLO Discussion Paper by GLO Affiliate Elvisa Drishti and colleagues.

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

A new GLO Discussion Paper provides evidence of links between political engagement and selection into different employment pathways in Albania.

GLO Discussion Paper No. 1053, 2022

Active political engagement, political patronage, and local labour markets – the example of Shkoder – Download PDF
by Drishti, Elvisa & Kopliku, Bresena & Imami, Drini

GLO Affiliate Elvisa Drishti

Author Abstract: Purpose: This paper aims to contribute to understanding of the effects of active political engagement in port-of-entry jobs and employment pathways for graduate students. The data are derived from a structured survey of a small local labour market where political clientelism is pronounced due to the strong network ties. Controlling for both demand and supply factors we identify a profile for those who are more prone to engage politically in exchange for public sector jobs, which are in turn vulnerable to regime changes. Design/methodology/approach: We use data from a sample of 191 participants that records month-tomonth employment states for three consecutive years (2012-2014). The method attempts to replicate an experimental design with repeated measures before and after the June 2013 government elections. The data is analysed using sequence analysis with optimal matching and difference-in-difference methods. Findings: The analysis provides evidence of links between political engagement and selection onto different employment pathways. The pathways themselves are also shown to be differentially impacted by the 2013 election (positively or negatively). Together, these results are supportive of claims that jobs in Albania, particularly those in the public sector, are linked to the short-term presence of vote-buying and the political business cycle. This is shown to be the case even for this sample of educated members of the labour force (i.e. university graduates). The analysis also finds evidence of accumulative disadvantages over time, in relation to subjective perceptions of life satisfaction, migration intentions, employability and success in life, as a result of active political engagement. Originality: The study uses a unique data set and a novel methodology, sequence analysis. Occupational history calendars were used to capture quantitative information recording detailed work histories. To the best of our knowledge, this innovative method has not been used before to measure the temporal effects of political engagement on employment pathways.

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American Older Adults in the Time of COVID-19: Vulnerability Types, Aging Attitudes, and Emotional Responses. A new GLO Discussion Paper by GLO Fellow Xi Chen and colleagues.

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

A new GLO Discussion Paper concludes that positive aging attitudes might be helpful for older adults to have better emotional well-being.

GLO Discussion Paper No. 1054, 2022

American Older Adults in the Time of COVID-19: Vulnerability Types, Aging Attitudes, and Emotional Responses – Download PDF
by Fu, Mingqi & Guo, Jing & Chen, Xi & Han, Boxun & Ahmed, Farooq & Shahid, Muhammad & Zhang, Qilin

GLO Fellow Xi Chen

Author Abstract: The COVID-19 pandemic has posed challenges to emotional well-being of individuals. With 1582 respondents from the Health and Retirement Survey (HRS), this study investigates the heterogeneity in older adults’ vulnerability and examines the relationship between vulnerability types, aging attitudes and emotional responses. International Positive and Negative Affect Schedule Short-form (I-PANAS-SF) and Attitudes toward own aging (ATOT) were used to assess the emotional experiences and aging attitudes, and 14 types of pandemic-related deprivations evaluated individuals’ vulnerability. Latent class analysis was used to explore the vulnerability types, and weighted linear regressions examined the relationship between vulnerability, aging attitudes and emotional responses. Results showed that the proportion for individuals with mild vulnerability (MV), health care use vulnerability (HV), and dual vulnerability in health care use and finances (DVs) was 67%, 22%, and 11%, respectively. Older adults aged below 65, Hispanics and non-Hispanic Blacks, and those not eligible for Medicaid were more likely to have HV or DVS. The relationship between vulnerability and positive emotions was insignificant, yet individuals with HV (beta=0.10, SE=0.16) or DVs (beta=0.09, SE=0.28) were likely to have more negative emotions than their mildly vulnerable counterparts. Furthermore, aging attitudes moderated the relationship between vulnerability and emotions. Encouraging positive aging attitudes might be helpful for older adults to have better emotional well-being, especially for those with DVs.

Featured image: Adli-Wahid-on-Unsplash

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Online video sharing and revenues during the Pandemic. Evidence from musical stream data. A new GLO Discussion Paper by GLO Fellow Evangelos Mourelatos and Haris Mourelatos.

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

A new GLO Discussion Paper studies how instant online video sharing affects artists’ musical streams during the pandemic.

GLO Discussion Paper No. 1050, 2022

Online video sharing and revenues during the Pandemic. Evidence from musical stream data – Download PDF
by Mourelatos, Evangelos & Mourelatos, Haris

GLO Fellow Evangelos Mourelatos

Author Abstract: This study examines how instant online video sharing affects artists’ musical streams during the pandemic. On average, the use of the TikTok app significantly increases artists’ streams, by approximately 5%. This increase is even higher for male, European and dj Mag 2020 new entry artists.

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Social Networks and (Political) Assimilation in the Age of Mass Migration. A new GLO Discussion Paper by Costanza Biavaschi & GLO Fellows Corrado Giulietti and Yves Zenou.

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

A new GLO Discussion Paper using the 1940 US census finds that the concentration of naturalized co-ethnics in the network positively affected individual naturalization operating mainly through information dissemination.

GLO Discussion Paper No. 1049, 2022

Social Networks and (Political) Assimilation in the Age of Mass Migration – Download PDF
by Biavaschi, Costanza & Giulietti, Corrado & Zenou, Yves

GLO Fellows Corrado Giulietti and Yves Zenou

Author Abstract: This paper investigates the causal pathways through which ethnic social networks influence individual naturalization. Using the complete-count Census of 1930, we digitize information on the exact residence of newly arrived immigrants in New York City. This allows us to define networks with a granularity detail that was not used before for historical data – the Census block – and therefore to overcome issues of spatial sorting. By matching individual observations with the complete-count Census of 1940, we estimate the impact that the exogenous fraction of naturalized co-ethnics in the network observed in 1930 has on the probability of immigrants to acquire citizenship a decade later. Our results indicate that the concentration of naturalized co-ethnics in the network positively affects individual naturalization and that this relationship operates through one main channel: information dissemination. Indeed, immigrants who live among naturalized co-ethnics are more likely to naturalize because they have greater access to critical information about the benefits and procedures of naturalization.

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Drivers of skill mismatch among Italian graduates: The role of personality traits. A new GLO Discussion Paper by GLO Fellows Piero Esposito & Sergio Scicchitano.

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

A new GLO Discussion Paper finds that some personality traits reduce the probability of overeducation, suggesting complementarity between cognitive and non-cognitive skills.

GLO Discussion Paper No. 1048, 2022

Drivers of skill mismatch among Italian graduates: The role of personality traits – Download PDF
by Esposito, Piero & Scicchitano, Sergio

GLO Fellows Piero Esposito & Sergio Scicchitano

Author Abstract: In this study, we find that the negative effect of unexploded ordnance (UXO) on the geographical density of foreign direct investment and large firms is a new channel through which the war legacy impedes local development in Vietnam. A 1% increase in the proportion of UXO-contaminated area leads to a 0.78% relative decrease in the density of FDI firms within districts. Point estimates for the elasticity of the density of joint-venture FDI firms and state-owned enterprise (SOEs) due to UXO are smaller, equal to -0.56 and -0.54. Consequently, a 1% increase in the proportion of UXO-contaminated areas leads to a 0.46% relative decrease in the intensity of nighttime light.

Featured image: Mikael-Kristenson-on-Unsplash

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The Long-Term Effects of War on Foreign Direct Investment and Economic Development: Evidence from Vietnam. A new GLO Discussion Paper by GLO Fellow Cuong Nguyen & colleagues.

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

A new GLO Discussion Paper finds for Vietnam that unexploded ordnance has negative effects on the geographical density of foreign direct investment and large firms and hinders development.

GLO Discussion Paper No. 1047, 2022

The Long-Term Effects of War on Foreign Direct Investment and Economic Development: Evidence from Vietnam – Download PDF
by Nguyen, Cuong Viet & Tran, Tuyen Quang & Vuc, Huong Van

GLO Fellow Cuong Nguyen

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Does Over-education Raise Productivity and Wages Equally? The Moderating Role of Workers’ Origin and Immigrants’ Background. A new GLO Discussion Paper of Valentine Jacobs and GLO Fellows François Rycx & Melanie Volral.

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

A new GLO Discussion Paper finds for Belgium that over-educated native workers are in fact underpaid to a greater extent than their over-educated immigrant counterparts.

GLO Discussion Paper No. 1044, 2022

Does Over-education Raise Productivity and Wages Equally? The Moderating Role of Workers’ Origin and Immigrants’ Background – Download PDF
by Jacobs, Valentine & Rycx, François & Volral, Mélanie

GLO Fellows François Rycx and Melanie Volral

Author Abstract: We provide first evidence of the impact of over-education, among natives and immigrants, on firm-level productivity and wages. We use Belgian linked panel data and rely on the methodology from Hellerstein et al. (1999) to estimate ORU (over-, required, and under-education) equations aggregated at the firm level. Our results show that the over-education wage premium is higher for natives than for immigrants. However, since the differential in productivity gains associated with over-education between natives and immigrants outweighs the corresponding wage premium differential, we conclude – based on OLS and dynamic GMM-SYS estimates – that over-educated native workers are in fact underpaid to a greater extent than their over-educated immigrant counterparts. This conclusion is refined by sensitivity analyses, when testing the role of immigrants’ background (e.g. region of birth, immigrant generation, age at arrival in the host country, tenure).

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Artificial Intelligence and Reduced SMEs’ Business Risks. A Dynamic Capabilities Analysis During the COVID-19 Pandemic. A new GLO Discussion Paper by GLO Fellow Nick Drydakis.

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

The new GLO Discussion Paper finds that using Artificial Intelligence enables firms to reduce their business risks during the Covid-19 pandemic.

GLO Discussion Paper No. 1045, 2022

Artificial Intelligence and Reduced SMEs’ Business Risks. A Dynamic Capabilities Analysis During the COVID-19 Pandemic – Download PDF
by Drydakis, Nick

GLO Fellow Nick Drydakis

Author Abstract: The study utilises the International Labor Organization’s SMEs COVID-19 pandemic business risks scale to determine whether Artificial Intelligence (AI) applications are associated with reduced business risks for SMEs. A new 10-item scale was developed to capture the use of AI applications in core services such as marketing and sales, pricing and cash flow. Data were collected from 317 SMEs between April and June 2020, with follow-up data gathered between October and December 2020 in London, England. AI applications to target consumers online, offer cash flow forecasting and facilitate HR activities are associated with reduced business risks caused by the COVID-19 pandemic for both small and medium enterprises. The study indicates that AI enables SMEs to boost their dynamic capabilities by leveraging technology to meet new types of demand, move at speed to pivot business operations, boost efficiency and thus, reduce their business risks.

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Heterogeneous Peer Effects under Endogenous Selection: An Application to Local and Migrant Children in Elementary Schools in Shanghai. A new GLO Discussion Paper by GLO Fellows Yuanyuan Chen & Shuaizhang Feng and Chao Yang.

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

The new GLO Discussion Paper finds large contemporaneous peer effects among all student groups.

GLO Discussion Paper No. 1043, 2022

Heterogeneous Peer Effects under Endogenous Selection: An Application to Local and Migrant Children in Elementary Schools in Shanghai – Download PDF
by Chen, Yuanyuan & Feng, Shuaizhang & Yang, Chao

GLO Fellows Yuanyuan Chen & Shuaizhang Feng

Author Abstract: This paper develops a model that allows for heterogenous contemporaneous peer effects among different types of agents who are endogenously selected into different peer groups. Using our framework, we characterize the reduced-form coefficient in the peer effect literature and show that it is a priori ambiguous in sign. We apply our approach to migrant and local students in Shanghai, where local students all go to public schools, but migrant students are endogenously selected into either public schools or lower-quality private schools. The results suggest large contemporaneous peer effects among all student groups. We conduct policy experiments to examine the effect of transferring migrant students from private schools to public schools. We show that peer effect can be substantially more important than the school effect in accounting for the total treatment effect of moving to better schools.

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The Economic Implications of Training for Firm Performance. A new GLO Discussion Paper by GLO Fellow Pedro Martins.

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

A new GLO Discussion Paper reviews the literature to find very high returns to training from the perspective of firms.

GLO Discussion Paper No. 1046, 2022

The Economic Implications of Training for Firm Performance – Download PDF
by Martins, Pedro S.

GLO Fellow Pedro Martins

Author Abstract: This paper surveys the emerging economics literature on the relationship between employee training and firm performance. Most studies find very high returns to training, at least from the perspective of firms, indicating that the costs of training can be recouped in short periods of time. These results follow from different identification approaches, including randomised control trials. The training provided is typically of a general nature, which is consistent with employers’ labour market power. Several areas for future research are also proposed, including the role of labour market institutions in promoting training and the extent to which the productivity effects of training are shared with employees.

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An impact assessment of ESF training courses for unemployed in the Province of Bolzano. A new GLO Discussion Paper by GLO Fellows Francesco Pastore and Marco Pompili.

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

The new GLO Discussion Paper studies the effects of two training programs for particularly vulnerable groups including recent migrants, refugees, and women.

GLO Discussion Paper No. 1042, 2022

An impact assessment of ESF training courses for unemployed in the Province of Bolzano – Download PDF
by Pastore, Francesco & Pompili, Marco

GLO Fellows Francesco Pastore and Marco Pompili

Author Abstract: This paper evaluates the impact on employment probabilities of two training programs funded by the European Social Fund in the province of Bolzano, Italy. The programs were addressed to particularly vulnerable groups which were much less skilled and educated than the control group from the public employment agency registers. A large share of the benefit recipients are indeed recent migrants, refugees, and women. By using different matching algorithms, this group was made as similar as possible to the control group, at least in terms of observed characteristics, including the employment status up to two years before entering the programme. We find that the short-term impact of the training programs is negative, highlighting the presence of a lock-in effect. However, from the start of the programs, up to the 13th month, this effect reduced to nihil. The effect is particularly sizeable and statistically significant for women, migrants, and the highly educated; age does not seem to matter. However, our findings suggest that the programs were especially significant in empowering women and migrants. By providing them with basic skills, including linguistic and technical professional skills, increased their integration by making them seek jobs more actively.

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Can interactive online training make high school students more entrepreneurial? Experimental evidence from Rwanda in a new GLO Discussion Paper by GLO Fellows Todd Pugatch & Jose Tessada and colleagues.

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

A new GLO Discussion Paper estimates sizeable effects of a 6-week training during the COVID-19 pandemic on entrepreneurial activity.

GLO Discussion Paper No. 1041, 2022

Can interactive online training make high school students more entrepreneurial? Experimental evidence from Rwanda – Download PDF
by Lafortune, Jeanne & Pugatch, Todd & Tessada, José & Ubfal, Diego

GLO Fellows Todd Pugatch and Jose Tessada

Author Abstract: We study the short-run effects of a gamified online entrepreneurship training offered to high school students in Rwanda during the COVID-19 pandemic. Using a randomized controlled trial, we estimate sizeable effects of the 6-week training on entrepreneurial activity. One month after the training, participants in schools offered the training were much more likely to own a business than participants in control schools. The training induced students to participate more actively in their school’s business club, to undertake more business-oriented actions, to improve their business practices, and to interact more with other youth and family members about their business ideas. We hypothesize that the training might have motivated treated students to sustain their business activities during the COVID-19 crisis.

Featured image: Annie-Spratt-on-Unsplash

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Managing the Impact of Climate on Migration: Evidence from Mexico. A new GLO Discussion Paper by GLO Fellows Isabelle Chort and Maëlys de la Rupelle.

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

A new GLO Discussion Paper reveals the mitigating effect of different policies directed to the agricultural sector aimed at insuring against environmental disasters.

GLO Discussion Paper No. 1040, 2022

Managing the Impact of Climate on Migration: Evidence from Mexico – Download PDF
by Chort, Isabelle & de la Rupelle, Maëlys

GLO Fellows Isabelle Chort and Maëlys de la Rupelle

Author Abstract: While there is a growing literature on the impact of climate and weather-related events on migration, little is known about the mitigating effect of different policies directed to the agricultural sector, or aimed at insuring against environmental disasters. This paper uses state-level data on migration ows between Mexico and the U.S. from 1999 to 2012 to investigate the mitigating impact of an agricultural cashtransfer program (PROCAMPO) and a disaster fund (Fonden) on the migration response to weather shocks. We find that Fonden decreases migration in response to heavy rainfall, hurricanes and droughts. Increases in PROCAMPO amounts paid to small producers are found to play a more ambiguous role on the migration response to shocks. Changes in the distribution of PROCAMPO favoring more vulnerable producers in the non irrigated ejido sector however seem to mitigate the impact of droughts on migration.

Featured image: wesley-tingey-unsplash

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The impact of working conditions on mental health: novel evidence from the UK. A new GLO Discussion Paper of GLO Fellow Elena Meschi & colleagues.

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

A new GLO Discussion Paper provides evidence for the positive impact of working conditions on mental health.

GLO Discussion Paper No. 1039, 2022

The impact of working conditions on mental health: novel evidence from the UK – Download PDF
by Belloni, Michele & Carrino, Ludovico & Meschi, Elena

GLO Fellow Elena Meschi

Author Abstract: This paper investigates the causal impact of working conditions on mental health in the UK, combining new comprehensive longitudinal data on working conditions from the European Working Condition Survey with microdata from the UK Household Longitudinal Survey (Understanding Society). Our empirical strategy accounts for the endogenous sorting of individuals into occupations by including individual fixed effects. It addresses the potential endogeneity of occupational change over time by focusing only on individuals who remain in the same occupation (same ISCO), exploiting the variation in working conditions within each occupation over time. This variation, determined primarily by general macroeconomic conditions, is likely to be exogenous from the individual point of view. Our results indicate that improvements in working conditions have a beneficial, statistically significant, and clinically meaningful impact on depressive symptoms for women. A one standard deviation increase in the skills and discretion index reduces depression score by 2.84 points, which corresponds to approximately 20% of the GHQ score standard deviation, while a one standard deviation increase in working time quality reduces depression score by 0.97 points. The results differ by age: improvements in skills and discretion benefit younger workers (through increases in decision latitude and training) and older workers (through higher cognitive roles), as do improvements in working time quality; changes in work intensity and physical environment affect only younger and older workers, respectively. Each aspect of job quality impacts different dimensions of mental health. Specifically, skills and discretion primarily affect the loss of confidence and anxiety; working time quality impacts anxiety and social dysfunction; work intensity affects the feeling of social dysfunction among young female workers. Finally, we show that improvements in levels of job control (higher skills and discretion) and job demand (lower intensity) lead to greater health benefits, especially for occupations that are inherently characterised by higher job strain.

Featured image: JR-Korpa-on-Unsplash

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Are greenhouse gas emissions converging in Latin America? A new GLO Discussion Paper by Ignacio Belloc & GLO Fellow José Alberto Molina.

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

A new GLO Discussion Paper finds strong evidence of subgroups of states that converge to different steady states (club convergence).

GLO Discussion Paper No. 1037, 2022

Are greenhouse gas emissions converging in Latin America? – Download PDF
by Belloc, Ignacio & Molina, José Alberto

GLO Fellow José Alberto Molina

Author Abstract: This paper investigates greenhouse gas emissions convergence among twenty Latin American countries, for the period 1970 to 2015. To that end, we use the Phillips-Sul methodology to examine whether these countries have followed an absolute convergence process or, whether there has been a club convergence process. Our results offer important insights into the greenhouse gas emissions catch-up exhibited by several countries, and do not support the hypothesis that all countries of the Latin American region, taken together, converge to a single equilibrium state in greenhouse gas emissions intensity. We find strong evidence of subgroups that converge to different steady states. An iterative testing procedure reveals the existence of different patterns of behavior and shows that such emissions are not uniform across these countries. We also identify the forces underlying the creation of clubs and the likelihood that any given country will be a member of any convergence club. Estimates from an ordered logit model reveal that economic structure, the unemployment rate, population density, and per-capita income play a crucial role in determining the formation of convergence clubs.

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Improving Survey Quality using Paradata: Lessons from the India Working Survey. A new GLO Discussion Paper by Rosa Abraham and GLO Fellows Deepti Goel & Rahul Lahoti.

February 15, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper suggests a paradata based method to reduce interviewer induced measurement error in household surveys.

GLO Discussion Paper No. 1035, 2022

Improving Survey Quality using Paradata: Lessons from the India Working Survey – Download PDF
by Goel, Deepti & Abraham, Rosa & Lahoti, Rahul

GLO Fellows Deepti Goel & Rahul Lahoti

Author Abstract: We describe the design and implementation of a paradata based method to reduce interviewer induced measurement error in a household survey in India. Our method identifies enumerators exhibiting deviant field practices, and provides them feedback to correct potentially faulty behavior. A novel feature is the emphasis on dynamic benchmarking within a group of enumerators facing similar field conditions. This helps to correctly pin down steady state levels of multiple data generating processes that exist within our survey. We also present evidence that our method succeeded in changing actual enumerator behavior in the field. Furthermore, we provide a complete prototype of how to operationalize paradata use in a resource constrained environment. At each step, we highlight the trade-offs involved, share insights from our own shortcomings, and provide recommendations to help make more informed choices. We hope our work will encourage the use of paradata to improve survey quality, especially in low- and middle-income countries where their use is still rare.

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Robots, Digitalization, and Worker Voice. A new GLO Discussion paper by GLO Fellow Gabriel Burdin and colleagues.

February 14, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper documents a positive association between shop-floor employee representation and the utilization of advanced technologies. It also shows positive effects on training intensity and process innovation and no evidence of employment losses.

GLO Discussion Paper No. 1038, 2022

Robots, Digitalization, and Worker Voice – Download PDF
by Belloc, Filippo & Burdin, Gabriel & Landini, Fabio

GLO Fellow Gabriel Burdin

Author Abstract: The interplay between labor institutions and the firm-level adoption of new technologies such as robotics and other advanced digital tools remains poorly understood. Using a cross-sectional sample of more than 20000 European establishments, this paper documents a positive association between shop-floor employee representation (ER) and the utilization of these advanced technologies. We extensively dig into the potential mechanisms driving this correlation by exploiting rich information on the de facto role played by ER bodies in relation to well-defined decision areas of management, such as work organization, dismissals, training and working time. In addition, we conduct a quantitative case study using a panel of Italian firms and exploiting size-contingent policy rules governing the operation of ER bodies in the context of a local-randomization regression discontinuity design. The analysis suggests a positive effect of ER on investments in advanced technologies around the firm size cutoff, although the results are sensitive to the type of technology and specification choices. We also document positive effects on training intensity and process innovation and no evidence of employment losses or changes in the composition of employment. Taken together, our findings cast doubts on the idea that ER discourages technology adoption. On the contrary, ER seems to influence work organization and certain workplace practices in ways that may enhance the complementary between labor and new advanced technologies.
Featured image: Alex-Knight-on-Unsplash

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Climate Change, Cold Waves, Heat Waves, and Mortality: Evidence from a Lower Middle-Income Country. A new GLO Discussion Paper by GLO Fellow Cuong Nguyen and colleagues.

February 13, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds for Vietnam that both cold and heat waves cause higher mortality, particularly among older people.

GLO Discussion Paper No. 1034, 2022

Climate Change, Cold Waves, Heat Waves, and Mortality: Evidence from a Lower Middle-Income Country – Download PDF
by Nguyen, Cuong Viet & Nguyen, Manh-Hung & Nguyen, Toan Truong

GLO Fellow Cuong Nguyen

Author Abstract: We estimate the impact of temperature extremes on mortality in Vietnam, using daily data on temperatures and monthly data on mortality during the 2000-2018 period. We find that both cold and heat waves cause higher mortality, particularly among older people. This effect on mortality tends to be smaller in provinces with higher rates of air-conditioning and emigration, and provinces with higher public spending on health. Finally, we estimate economic cost of cold and heat waves using a framework of willingness to pay to avoid deaths, then project the cost to the year 2100 under different Representative Concentration Pathway scenarios.

Featured image: bethany-laird-unsplash

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Does Parental Absence Harm Children’s Education? Evidence from Vietnam. A new GLO Discussion Paper by GLO Fellow Cuong Nguyen and Linh Hoang Vu.

February 12, 2022Discussion Paper, News, Post, Post-22GLO Admin

A new GLO Discussion Paper finds that children from two-parent families have a better chance of enrolling at all levels of education than those from single-parent families. It also confirms the critical role of mothers in children’s education.

GLO Discussion Paper No. 1033, 2022

Does Parental Absence Harm Children’s Education? Evidence from Vietnam – Download PDF
by Nguyen, Cuong Viet & Vu, Linh Hoang

GLO Fellow Cuong Nguyen

Author Abstract: This study uses a large-scale dataset from Vietnam to analyze the impacts of parental absence due to migration, death, or divorce on children’s school enrollment, for children aged from 7 to 22. We find children from two-parent families have a better chance of enrolling at all levels of education than those from single-parent families. Within single-family types, the negative effect on children of parental divorce is higher than that of parental death, while the effect of parental migration is the lowest. Comparing the effect of single-father and single-mother households, we find that children living with a single mother tend to have higher school enrollment than those living with a single father, indicating the critical role of mothers in children’s education.

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I Won’t Make the Same Mistake Again: Burnout History and Job Preferences. A new GLO Discussion Paper by GLO Fellow Stijn Baert & Colleagues.

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

A new GLO Discussion Paper finds that recently burned-out employees appreciate possibilities to telework, fixed feedback and work part-time, but are less attracted to opportunities for learning on the job.

GLO Discussion Paper No. 1036, 2022

I Won’t Make the Same Mistake Again: Burnout History and Job Preferences – Download PDF
by Sterkens, Philippe & Baert, Stijn & Moens, Eline & Derous, Eva & Wuyts, Joey

GLO Fellow Stijn Baert

Author Abstract: The existing burnout literature has predominantly focussed on the determinants of burnout, whereas its consequences for individual careers have received little attention. In this study, we investigate whether recently burned-out individuals and persons with a very high risk of clinical burnout differ in job preferences from non-burned-out workers. Moreover, we link these differences in preferences with (1) diverging perceptions of job demands and resources in a job, as well as (2) distinct weighting of such perceptions. To this end, a highquality sample of 582 employees varying in their history and current risk of burnout judged fictitious job offers with experimentally manipulated characteristics in terms of their willingness to apply as well as perceived job demands and resources. We find that recently burned-out employees appreciate possibilities to telework and fixed feedback relatively more, while being relatively less attracted to opportunities for learning on the job. Moreover, employees with a very high risk of burnout are more attracted to part-time jobs. These findings can be partially explained by differences in the perceived resources offered by jobs.

Featured Image: Morgan-Basham-Unsplash

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Ownership Effects in Dictator Games: Evidence from an Experimental Study. A new GLO Discussion Paper by GLO Fellow Cuong Nguyen and Linh Hoang Vu

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

A new GLO Discussion Paper provides suggestive evidence of the ownership effect in sharing behavior.

GLO Discussion Paper No. 1032, 2022

Ownership Effects in Dictator Games: Evidence from an Experimental Study – Download PDF
by Nguyen, Cuong Viet & Vu, Linh Hoang

GLO Fellow Cuong Nguyen

Author Abstract: In this study, we tested the effect of time delays on sharing behavior. We conducted a dictator game to examine whether dictators change their sharing behaviors if they have more time between receiving and sharing money. When the response time was 2 hours, the sharing behavior of dictators was similar to sharing behavior in a standard game without time delay. However, if the dictators kept their received money for a week, they were remarkably less likely to share the money. This finding provides suggestive evidence of the ownership effect in sharing behavior.

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Strangers and Foreigners: Trust and Attitudes toward Citizenship. A new GLO Discussion Paper by GLO Fellows Graziella Bertocchi and Arcangelo Dimico & Gian Luca Tedeschi.

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

A new GLO Discussion Paper confirms a link between the slave trade in the past and trust today in sub-Saharan Africa.

GLO Discussion Paper No. 1031, 2022

1031 Strangers and Foreigners: Trust and Attitudes toward Citizenship – Download PDF
by Bertocchi, Graziella & Dimico, Arcangelo & Tedeschi, Gian Luca

GLO Fellows Graziella Bertocchi and Arcangelo Dimico

Author Abstract: We analyze the relationship between natives’ attitudes towards citizenship acquisition for foreigners and trust. Our hypothesis is that, in sub-Saharan Africa, the slave trade represents the deep factor behind contemporary attitudes toward citizenship, with more intense exposure to historical slave exports for an individual’s ethnic group being associated with contemporary distrust for strangers, and in turn opposition to citizenship laws that favor the inclusion of foreigners. We find that individuals who are more trusting do show more positive attitudes towards the acquisition of citizenship at birth for children of foreigners, that these attitudes are also negatively related to the intensity of the slave trade, and that the underlying link between trust and the slave trade is confirmed. Alternative factors|con ict, kinship, and witchcraft beliefs-that, through trust, may affect attitudes toward citizenship, are not generating the same distinctive pattern of linkages emerging from the slave trade.

Featured image: Joshua Hoehne-on-Unsplash

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Key Links in Network Interactions: Assessing Route-specific Travel Restrictions in China during the Covid-19 Pandemic. A new GLO Discussion Paper by GLO Fellows Xi Chen, Yun Qiu & Wei Shi, and Pei Yu.

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

A new GLO Discussion Paper suggests modeling network interactions to optimize the outcomes of the connected units. An example examines the recent spread of Covid-19 in China.

GLO Discussion Paper No. 1030, 2022

Key Links in Network Interactions: Assessing Route-specific Travel Restrictions in China during the Covid-19 Pandemic – Download PDF
by Chen, Xi & Qiu, Yun & Shi, Wei & Yu, Pei

GLO Fellows Xi Chen, Yun Qiu & Wei Shi

Author Abstract: We consider a model of network interactions where the outcome of a unit depends on the outcomes of the connected units. We determine the key network link, i.e., the network link whose removal results in the largest reduction in the aggregate outcomes, and provide a measure that quantifies the contribution of a network link to the aggregate outcomes, which complements the intercentrality measure of the key network node proposed by Ballester, Calv’o-Armengol, and Zenou (2006). We provide an example examining the spread of Covid-19 in China. Travel restrictions were imposed to limit the spread of infectious diseases. As uniform restrictions can be inefficient and incur unnecessarily high costs, we examine the design of restrictions that target specific travel routes. Our approach may be generalized to multiple countries to guide policies during epidemics ranging from ex ante route-specific travel restrictions to ex post health measures based on travel histories, and from the initial travel restrictions to the phased reopening.

Featured image: Adli-Wahid-on-Unsplash

Ends;

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