Author Abstract: The varieties-of-capitalism (VoC) approach distinguishes liberal market economies (LMEs) such as the USA and coordinated market economies (CMEs) such as Germany based on institutional differences in terms of corporate governance, industrial relations, company relations as well as education and training. According to the VoC approach, firms differ in the ways in which they combine market and non-market mechanisms to coordinate their activities. Firms in LMEs are considered to rely more on market or exit mechanisms than firms in CMEs, which more often complement market with non-market or voice mechanisms. This chapter summarizes what has been learned from the VoC approach on the linkages between the institutional environment and labor-management relations. Various important lessons can be drawn. Employment protection legislation is a productive element within the institutional setup of CMEs. LMEs tend to induce strong overall wage dispersion, whereas in some CMEs such as Germany the labor market performance varies markedly by skill type and gender. The recent literature also indicates that the institutional setup is more complex than the VoC approach suggests, calling for revisions to the approach. In particular, some countries are hybrid economies that combine elements of both types of capitalism. The CME-LME dichotomy does not appreciate the true variety of country-specific skill systems. Finally, multinational enterprises overcome institutional boundaries of different types of capitalism in ways that were not included in the original VoC approach.
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.
A new GLO Discussion Paper studies the history and effects of marriage bars,the requirement that women working in certain jobs must leave that job when they marry.
Author Abstract: A Marriage Bar is the requirement that women working in certain jobs must leave that job when they marry. In the twentieth century, Marriage Bars were not unusual internationally. In the late 1800s to early 1900s, legislative provisions that required women to resign at marriage were introduced in several countries around the world, including Australia, Canada, Ireland, the Netherlands and the UK. Spill-overs to jobs not strictly covered by the Marriage Bar were also common. This chapter critically reviews, from an economics perspective, the background, the history and the impacts of Marriage Bars. This chapter has four aims. The first is to summarise the arguments provided by government officials and employers to justify both the introduction and the retention of Marriage Bars. The second is to provide a cross-country comparison of Marriage Bars. The third is to investigate the potential impacts of the Marriage Bar on women’s behavior with respect to employment, marriage and education. The fourth is to highlight potential avenues for future research. Although Marriage Bars do not exist anymore, they are still a serious topic of current debate. Much more can be learned about important topics, such as discrimination, from carrying out research focused on Marriage Bars.
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.
A new paper published ONLINE FIRST with free readlink in the Journal of Population Economics finds that severe water contamination in the US modestly increased the rate of low birth weight, but had little effect on the length of gestation or rate of prematurity.
Published ONLINE FIRST 2021: Journal of Population Economics Free READLINK: https://rdcu.be/cytgm
Author Abstract: In 2014, the city of Flint, MI, in the USA changed its public water source, resulting in severe water contamination and a public health crisis. Using the Flint water crisis as a natural experiment, we estimate the effect of in utero exposure to polluted water on health at birth. Matching vital statistics birth records with various sources of data, we use the synthetic control method to identify the causal impact of water pollution on key birth outcomes. Our results suggest that the crisis modestly increased the rate of low birth weight (LBW) by 1.8 percentage points (or 15.5%) but had little effect on the length of gestation or rate of prematurity. However, these effects are larger among children born to black mothers, as indicated by an increase in the rate of LBW by 2.5 percentage points (or 19%). Children born to white mothers exhibit, on average, a 30.1-g decrease in birth weight. We find little evidence that the male-to-female sex ratio declines in the overall population, suggesting that the in utero scarring effect of the Flint water crisis may dominate the channel of mortality selection. However, we observe a slight decline in the sex ratio among children born to black mothers. Finally, we find no notable change in the fertility rates of either black women or white women in Flint. These results are robust to a rich set of placebo and falsification tests.
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.
Author Abstract: This paper investigates whether and how China’s adoption of Soviet-aided industrialization programs in the 1950s has affected its long-run innovation. Focusing on 156 major industrial projects aided by the Soviet Union, combined with an instrumental variable approach, I find that the adoption of these programs substantially discourages local firms to innovate in the long run. A causal mediation analysis of instrumental variable settings shows that the negative effect is entirely driven by local firms’ lower intensity of incentive pay. This evidence suggests disadvantages of Soviet-aided industrialization programs for long-run innovation due to firms adopting incentive-incompatible management technology.
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.
Presentations in this series are based on the projects that GLO-VirtYS program scholars completed as part of the their program participation. See for the details VirtYs program and the cohort 2021.
September 30th 2021 Program on 1 pm London/UK time.
Sydney (10pm), Beijing (8pm), Istanbul (3pm), Berlin (2pm), London (1pm), Cape Town (2pm), Washington DC (8am), Santiago de Chile (9am)
Jie Chen, Jiangsu University and GLO Affiliate Does vocational education pay better, or worse, than academic education? (GLO VirtYS program advisor Professor Francesco Pastore)
Muchin Bazan Ruiz, Virginia Tech and GLO Affiliate Women in Engineering: The Role of Role Models (GLO VirtYS program advisor Professor Kompal Sinha
Chaired by GLO VirtYS Program Director Olena Nizalova.
FOR PAST AND FUTURE EVENTS SEE THE GLO WEBSITE. Featured Image: Employee-Training-unsplash
Jie Chen is a lecturer of economics at Jiangsu University. Her research interests are in experimental economics and educational economics. She received her PhD in economics from the University of New South Wales.
GLO VirtYS project: Does vocational education pay better, or worse, than academic education?
In this paper, we use the Chinese General Social Survey data to analyze the returns to upper secondary vocational education in China. To address possible endogeneity of vocational training due to omitted heterogeneity, we construct a novel instrumental variable using the proportion of tertiary education graduates relative to the entire population by year. Our main finding is that, although returns to vocational upper secondary education appear higher than returns to academic upper secondary education according to the Mincerian equation, the results from the instrumental variable method tell the opposite story: vocational upper secondary graduates face a wage penalty compared to academic upper secondary graduates. The wage penalty is confirmed by an alternative and more recent IV method – the Lewbel method (Lewbel, 2012). Our findings highlight the importance of properly accounting for endogeneity when estimating the returns to vocational education.
Muchin Bazan Ruiz is a Ph.D. candidate in Economics at Virginia Tech. She has an MSc in Economics at the University of Warwick and a BSc. in Economics from Universidad de Piura. She has worked in the Superintendence of Banks, Insurance Companies, and Private Pension Funds (Peru) and as a Consultant at the Intern-American Development Bank. Muchin is passionate about Development and her research interests are in Development Economics, Economics of Education, and Gender Studies. She investigates the effect of role models on students’ career choices and perceptions using randomized controlled trials and administrative data.
GLO VirtYS project: Women in Engineering: The Role of Role Models
Gender disparities in STEM field participation are a major cause of concern for policymakers around the world. Given the higher average level of earnings of STEM graduates, low enrollment rates of women in these fields contribute to gender-based inequalities in earnings and wealth. This paper studies the effects of exposure to role models on female preferences for STEM fields. We conduct a randomized control trial where female senior students currently enrolled in engineering programs at an elite private university in Peru give talks about their experiences at randomly selected high schools. We find that exposure to this treatment increases high ability female students’ preferences for engineering programs by 14 percentage points. The effect is only statistically significant for the subgroup of female students with baseline math scores in the top 25 percentile, and that reside close to the city where the role models’ university is located. We also find positive but smaller effects on “low ability” male students. In a context where females are discouraged from enrolling in STEM fields, our results have important policy implications.
A new GLO Discussion Paper reveals selection in characteristics, a strong role for soft factors like social ties and sociocultural integration, and a faint role for economic factors.
Author Abstract: Aspirations provide the underlying dynamics of the behavior of individuals whether they are realized or not. Knowledge about the characteristics and motives of those who aspire to leave the host country is key for both host and home countries to formulate appropriate and effective policies in order to keep their valued immigrants or citizens and foster their (re-)integration. Based on unique individual-level Gallup World Polls data, a random utility model, and a multinomial logit we model the aspirations or stated preferences of immigrants across 138 countries worldwide. Our analysis reveals selection in characteristics, a strong role for soft factors like social ties and sociocultural integration, and a faint role for economic factors. Changes in circumstances in the home and host countries are also important determinants of aspirations. Results differ by the host countries’ level of economic development.
The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.
A new paper published ONLINE FIRST with free readlink in the Journal of Population Economics finds that financial hardship is associated with significantly more screen time, particularly passive screen time, and screen time at excessive levels.
by Jessica L. Arnup, Nicole Black & David W. Johnston
Published ONLINE FIRST 2021: Journal of Population Economics Free READLINK: https://rdcu.be/cyeE8
Author Abstract: This paper examines the impact of children’s migration on the well-being of left-behind parents using panel data on experienced utility measured by the Day Reconstruction Method. Exploiting exogenous variation in exposure to employment shocks at migration destinations for identification, we find that left-behind parents experience lower utility when their adult children migrate. This is partly due to increased working time and less time spent in social activities, and partly due to reduced utility within activity type. The latter effect is consistent with the finding of less physical care and psychological support from children who have migrated. These negative effects dominate the possible benefits of greater income associated with children’s migration.
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.
A new paper published ONLINE FIRST with free readlink in the Journal of Population Economics finds that abortions in Mexico City reduced substantially during the period of stay-at-home orders.
Published ONLINE FIRST 2021: Journal of Population Economics Free READLINK: https://rdcu.be/cyeBt
Author Abstract: We study the effect of the COVID-19 pandemic and of government mandated mitigation policies on the number of abortions performed by Mexico City’s public abortion program. We find that the COVID-19 pandemic and stay-at-home orders (SAHO) implemented in Mexico led to unintended consequences for women’s sexual and reproductive health. Using difference-in-differences and event study analyses, we show that SAHO and the pandemic led to a fall in abortions of around 25% and find no evidence that unsafe abortions increased. We find a decrease in the share of single and teenage women getting abortions, arguably due to fewer unwanted pregnancies from decreased sexual activity, and estimate that at most 9.8% of the total fall in abortions can be attributed to this. We complement our analysis using call data from a government helpline and show that the SAHO time period led to fewer abortion- and contraception-related calls but to an increase in pregnancy-related calls.
Featured image: Fusion-medical-animation-on-unsplash
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.
A new GLO Discussion Paper shows for China that a 1-day decrease in the time taken to confirm the first case in a city publicly led to 9.4% and 12.7% reductions in COVID-19 prevalence and mortality over the subsequent six months.
Author Abstract: This paper examines the causal impact of diagnostic efficiency on the COVID-19 pandemic in China. Using an instrumental variable approach, we show that a 1-day decrease in the time taken to confirm the first case in a city publicly led to 9.4% and 12.7% reductions in COVID-19 prevalence and mortality over the subsequent six months, respectively. The impact was larger for cities that are farther from the COVID-19 epicenter, are exposed to less migration, have more responsive public health systems, and have higher-capacity utilization of health systems. Social distancing and a less burdened health system are likely underlying mechanisms.
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.
A new paper published ONLINE FIRST with free OPEN ACCESS in the Journal of Population Economics finds that elections indeed matter. It has implications for postal voting reforms or postponing of large-scale, in-person (electoral) events during viral outbreaks.
PublishedOPEN ACCESS ONLINE FIRST PDF 2021: Journal of Population Economics
Author Abstract: Elections define representative democracies but also produce spikes in physical mobility if voters need to travel to polling places. In this paper, we examine whether large-scale, in-person elections propagate the spread of COVID-19. We exploit a natural experiment from the Czech Republic, which biannually renews mandates in one-third of Senate constituencies that rotate according to the 1995 election law. We show that in the second and third weeks after the 2020 elections (held on October 9–10), new COVID-19 infections grew significantly faster in voting compared to non-voting constituencies. A temporarily related peak in hospital admissions and essentially no changes in test positivity rates suggest that the acceleration was not merely due to increased testing. The acceleration did not occur in the population above 65, consistently with strategic risk-avoidance by older voters. Our results have implications for postal voting reforms or postponing of large-scale, in-person (electoral) events during viral outbreaks.
Featured image: Fusion-medical-animation-on-unsplash
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.
Author Abstract: We examine the relationship between wealth and health through prominent growth indicators and cognitive ability. Cognitive ability is represented by nutritional status. In this study, the proxy variable for nutritional status is BMI since there is a strong relationship between cognitive ability and nutrition. We use the reduced form equation in the cubic specification of time preference rate to estimate this relationship. We assume that the time preference rate is one of the outputs of cognitive ability. The growth indicators utilized are GDP per capita, schooling, overall and manufacturing productivities, and savings. We estimate our models using the FE, GMM estimators, and long difference OLS and IV estimation through balanced panel data for 47 countries for the 1980-2009 period, which is a representative period of the neo-liberal and globalization economic policy implications. Furthermore, by using the 1980-2009 period, we may eliminate the ripple effects of the 2007-2009 financial crisis. Although there is ample evidence that the association between GDP per capita, overall and manufacturing productivities, and BMI could be cubic, we take the results of the long-difference quadratic specification into consideration and conclude that the relationship between all prominent growth indicators and BMI is inverse U-shaped. In other words, cognitive ability has a significant potential to progress growth and economic development only in a healthy status.
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.
A new GLO Discussion Paper finds that high levels of statutory employment protection is negatively associated with robot adoption, but firms also use industrial robots as potential substitutes for workers to reduce employees’ bargaining power.
Author Abstract: This work discusses and empirically investigates the relationship between labor regulation and robotization. In particular, the empirical analysis focuses on the relationship between the discipline of workers’ dismissal and the adoption of indus- trial robots in nineteen Western countries over the 2006{2016 period. We find that high levels of statutory employment protection have been negatively associated with robot adoption, suggesting that labor-friendly national legislations, by increasing adjustment costs (such as firing costs), and thus making investment riskier, provide less favorable environments for firms to invest in industrial robots. We also find, however, that the correlation is positively mediated by the sectoral levels of capital intensity, a hint that firms do resort to industrial robots as potential substitutes for workers to reduce employees’ bargaining power and to limit their hold-up opportunities, which tend to be larger in sectors characterized by high levels of operating leverage.
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.
Background paper to the keynote address of Danny Blanchflower to the EBES 37 & GLO Berlin conference. More information: LINK.
Danny Blanchflower
Author Abstract: Unemployment is notoriously difficult to predict. In previous studies, once country fixed effects are added to panel estimates, few variables predict changes in unemployment rates. Using panel data for 29 European countries – Austria; Belgium; Bulgaria; Croatia; Cyprus; Czechia; Denmark; Estonia; Finland; France; Germany; Greece; Hungary; Ireland; Italy; Latvia; Lithuania; Luxembourg; Malta; Netherlands; Poland; Portugal; Romania; Slovakia; Slovenia; Spain; Sweden; Turkey and the UK – over 439 months between January 1985 and July 2021 in an unbalanced country*month panel of just over 10000 observations, we predict changes in the unemployment rate 12 months in advance based on individuals’ fears of unemployment, their perceptions of the economic situation and their own household financial situation. Fear of unemployment predicts subsequent changes in unemployment 12 months later in the presence of country fixed effects and lagged unemployment. Individuals’ perceptions of the economic situation in the country and their own household finances also predict unemployment 12 months later. Business sentiment (industry fear of unemployment) is also predictive of unemployment 12 months later. The findings underscore the importance of the “economics of walking about”. The implication is that these social survey data are informative in predicting economic downturns and should be used more extensively in forecasting. We also generate a 29 country-level annual panel on life satisfaction from 1985-2020 from the World Database of Happiness and show that the consumer level fear of unemployment variable lowers wellbeing over and above the negative impact of the unemployment rate itself. Qualitative survey metrics were able to predict the Great Recession and the economic slowdown in Europe just prior to the COVID pandemic.
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.
Author Abstract: Communism was a two-edged sword for the trustees of the former regime. Communist party members and their relatives enjoyed status and privileges, while secret police informants were often coerced to work clandestinely and gather compromising materials about friends, colleagues, and neighbors. We examine the long-term consequences of such connections to the communist regime for life satisfaction in Central and Eastern Europe and the former Soviet Union. We also calculate a monetary equivalent of those effects and empirically test mechanisms. The findings underscore that past communist regime connections have a persistent but differential effect on life satisfaction.
The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.
A new GLO Discussion Paper finds that the higher the level of perceived income inequality is, the lower is the individual’s perception of social standing.
Author Abstract: This paper analyzes how perceived income inequality is associated with subjective well-being. Using four waves of the “Social Inequality” module of the International Social Survey Programme, I show that the higher the level of perceived income inequality is, the lower the individual’s perception of her social standing, even if objective income inequality and preferences for the legitimate level of income inequality are controlled for. The results are robust to the measure of perceived inequality and the choice of the outcome variable. The analysis also provides evidence that the estimated association is weaker for individuals with higher income, higher education, and countries without postcommunist history. Overall, the results suggest that not only do objective inequality and perception of fairness have consequences regarding subjective well-being but also the perceived level of income inequality itself.
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.
Author Abstract: Kassenboehmer and DeNew (2012) claim that there is no well-being age U-shape effect for Germany, when controlling for fixed effects and respondent experience and interviewer characteristics in the German Socio-Economic Panel, 1994-2006. We re-estimate with a longer run of years and restrict the age of respondents to those under seventy and find the well-being age U-shape effect is neither flat nor trivial.
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.
A new GLO Discussion Paper finds that workers with no written contract of employment, receiving hourly wages lower than the national hourly minimum wages, and experiencing insults and/or threats in their present job experience worse physical health and increased levels of depression.
Author Abstract: Τhe study examines whether adverse working conditions for immigrants in Greece bear an association with deteriorated physical health and increased levels of depression during 2018 and 2019. Findings indicate that workers with no written contract of employment, receiving hourly wages lower than the national hourly minimum wages, and experiencing insults and/or threats in their present job experience worse physical health and increased levels of depression. The study found that the inexistence of workplace contracts, underpayment, and verbal abuse in the workplace may coexist. An increased risk of underpayment and verbal abuse reveals itself when workers do not have a contract of employment and vice versa. Immigrant workers without a job contract might experience a high degree of workplace precariousness and exclusion from health benefits and insurance. Immigrant workers receiving a wage lower than the corresponding minimum potentially do not secure a living income, resulting in unmet needs and low investments in health. Workplace abuse might correspond with vulnerability related to humiliating treatment. These conditions can negatively impact workers’ physical health and foster depression. Policies should promote written employment contracts and ensure a mechanism for workers to register violations of fair practices.
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.
Interested researchers are cordially invited to submit their abstracts or papers for presentation consideration. The 37th EBES Conference will take place ONLINE ONLY on October 6-8 2021. GLO is a co-organizing partner, and FOM University of Applied Sciences is the local host supporting the event from Berlin.
This is aGLO supported event. EBES, theEurasia Business and Economics Society, and FOM University of Applied Sciencesboth are strategic partners and institutional supporters of GLO. GLO President Klaus F. Zimmermann is also President of EBES.FOM and GLO contribute own sessions as listed below.
Authors are invited to submit their abstracts or papers no later than September 17, 2021.
9.00 – 9.45. Welcome Speeches: Mehmet Bilgin (EBES & GLO), Manuela Zipperling (FOM & GLO), and Azita Berar Awad (Graduate Institute of International and Development Studies, Geneva, & GLO) Opening Lecture: Klaus F. Zimmermann (UNU-MERIT, Free University Berlin & GLO) The Future of Global Mobility Chair: Mehmet Bilgin (Istanbul Medeniyet University, EBES & GLO)
15.15-16.15. Keynote Speech David G. Blanchflower (Dartmouth College & GLO) The Economics of Walking About and Predicting Unemployment Chair: Matloob Piracha (University of Kent & GLO)
16.30-17.15. EBES Journals Session Chair: Klaus F. Zimmermann (EBES President & GLO) with Dorothea Schäfer (DIW Berlin, Jönköping University & GLO), Editor-in-Chief of Eurasian Economic Review, and Marco Vivarelli (Catholic University of Milano & GLO), Editor-in-Chief of the Eurasian Business Review.
Thursday, October 7:
9.00-11.00. FOM-GLO Session Chair: Alexander Spermann (FOM University of Applied Sciences, Cologne, Freiburg University and GLO)
Monika Wohlmann (FOM University of Applied Science): The European Central Bank’s Strategy Review and the Management of Inflation Expectations
Sascha Frohwerk (FOM University of Applied Sciences, Berlin, Hasso-Plattner-Institute, Potsdam and GLO): Retail Location Choice Models. A Comparison of Gravitation and Logit Model
Andreas Oberheitmann (Tsinghua University, FOM and GLO): Development of a Low Carbon Economy in Wuxi City. An Example of Climate Change Mitigation in China on the Local Level.
Michael Drewes (FOM University of Applied Sciences, Mannheim) and Luca Rebeggiani (FOM University of Applied Sciences, Bonn): Private vs. Public Financing of Sport Stadia in Germany – An Empirical Analysis.
Sascha Frohwerk (FOM University of Applied Sciences, Berlin, Hasso-Plattner-Institute, Potsdam and GLO), Carsten Kruppe and Holger Wassermann: Evolution or Revolution: The Entry of New Company Successors in Germany
Kai Klotz and Alexander Spermann (FOM University of Applied Sciences, Cologne, Freiburg University and GLO): Did the Refugee Crisis Cause the Rise of Right-wing Parties? Empirical Evidence from East Germany.
14.00-15.00. Plenary Speech joint with the monthly GLO Seminar Sriya Iyer (University of Cambridge and GLO): Religion and Mental Health Chair: Olga Popova (Leibniz Institute for East and Southeast European Studies, CERGE-EI & GLO)
Note: The session relates to the Springer Nature Handbook project“Labor, Human Resources and Population Economics”supported by the GLO network.
15.15 – 17.15. GLO Session Migration I Chair: Cynthia Bansak (St. Lawrence University & GLO)
Note: The session relates to the Springer Nature Handbook project“Labor, Human Resources and Population Economics”supported by the GLO network.
Sonia Plaza (World Bank & GLO): Measuring Migration
Massimiliano Tani (University of New South Wales & GLO) & Matloob Piracha (University of Kent & GLO): Migration and Education
Cinzia Rienzo ( University of Brighton & GLO): Performance of Economic Migrants
Cynthia A. Bansak (St. Lawrence University & GLO), Nicole Simpson (Colgate University & GLO) and Madeline Zavodny (University of North Florida & GLO): Immigrants and Their Effects on Labor Market Outcomes of Natives
Chunbei Wang (University of Oklahoma & GLO) & Magnus Lofstrom (Public Policy Institute of California & GLO): Immigrant Entrepreneurs
Friday, October 8:
14.15 – 16.15. GLO SessionFamily & Household Economics Chair: Victoria Vernon (SUNY Empire State College & GLO)
Note: The session relates to the Springer Nature Handbook project“Labor, Human Resources and Population Economics”supported by the GLO network.
Effrosyni Adamopoulou (University of Mannheim & GLO): Infidelity
Juan Carlos Campaña (Antonio de Nebrija University), José Ignacio Giménez-Nadal (University of Zaragoza) & José Alberto Molina (University of Zaragoza & GLO): Time-Use Surveys
Benjamin Scharadin (Colby College): Household Food Expenditures and Diet Quality
Daniel Fernandez-Kranz (IE Business School, Madrid) & Jennifer Roff (Queens College and the Graduate Center, CUNY): Child Custody Laws and Household Outcomes
Irene Mosca (Maynooth University & GLO) and Robert E. Wright (University of Glasgow & GLO): Economics of Marriage Bars
16.30 – 18.30. GLO Session Migration II Chair: Marina Murat (University of Modena and Reggio Emilia & GLO)
Note: The session relates to the Springer Nature Handbook project“Labor, Human Resources and Population Economics”supported by the GLO network.
Jakub Lonsky (University of Liverpool & GLO) & Osea Giuntella (University of Pittsburgh & GLO): Migrant Health and Wellbeing
Kusum Mundra (Rutgers University & GLO): The Political Economy of Citizenship
Catalina Amuedo-Dorantes (University of California & GLO), Anna Marie Kietzerow (Western Michigan University) & Susan Pozo (Western Michigan University): Naturalization, Citizenship, and Identity Documents
Stefanija Veljanoska (University of Rennes) & Frederic Docquier (LISER & GLO): Brain Drain or Gain
Amelie Constant (Princeton University & GLO): Time-Space Dynamics of Return and Circular Migration
Michele Tuccio (Université Paris-Dauphine & GLO) & Jackline Wahba (University of Southampton & GLO): Social Remittances
A new GLO Discussion Paper finds substantial ethnic segregation across workplaces in the UK, but most of the ethnic wage gap exists between observationally equivalent co-workers.
Author Abstract: Using matched employer-employee data for Britain, we examine ethnic wage differentials among full-time employees. We find substantial ethnic segregation across workplaces: around three-fifths of workplaces in Britain employ no ethnic minority workers. However, this workplace segregation does not contribute to the aggregate wage gap between ethnic minorities and white employees. Instead, most of the ethnic wage gap exists between observationally equivalent co-workers. Lower pay satisfaction and higher levels of skill mismatch among ethnic minority workers are consistent with discrimination in wage-setting on the part of employers. The use of job evaluation schemes within the workplace is shown to be associated with a smaller ethnic wage gap.
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.
“In 1965, a family-reunification policy for admitting immigrants to the United States replaced a system that chose immigrants based on their national origin. With this change, a 40-year hiatus in Asian immigration ended. Today, over three-quarters of US immigrants originate from Asia and Latin America. Two issues that dominate discussions of US immigration policy are the progress of post-reform immigrants and their contributions to the US economy.
This book focuses on the earnings and human capital investment of Asian immigrants to the US after 1965. In addition, it provides a primer on studying immigrant economic assimilation, by explaining economists’ methodology to measure immigrant earnings growth and the challenges with this approach. The book also illustrates strategies to more fully use census data such as how to measure family income and how to use “panel data” that is embedded in the census.
The book is a historical study as well as an extremely timely work from a policy angle. The passage of the 1965 Immigration and Nationality Act set the United States apart among economically developed countries due to the weight given to family unification. Based on analyses by economists—which suggest that the quality of immigrants to the US fell after the 1965 law—policymakers have called for fundamental changes in the US system to align it with the immigration systems of other countries. This book offers an alternative view point by proposing a richer model that incorporates investments in human capital by immigrants and their families. It challenges the conventional model in three ways: First, it views the decline in immigrants’ entry earnings after 1965 as due to investment in human capital, not to permanently lower “quality.” Second, it adds human capital investment and earnings growth after entry to the model. And finally, by taking investments by family members into account, it challenges the policy recommendation that immigrants should be selected for their occupational qualifications rather than family connections.”
Human Capital Investment. A History of Asian Immigrants and Their Family Ties
Authors: Duleep, H., Regets, M., Sanders, S., Wunnava, P.
“The authors attack forcefully an established myth in the US based immigration literature, namely that post-1965 immigrants were of low quality since they came at a time with a policy focus on family unification. They make us aware of the huge impact family investments have had among their studied Asian immigrants on high school attendance rates and other human capital improvements generating the most upwardly mobile among American workers. It seems that the migration history of that period has to be re-written.” (Klaus F. Zimmermann, President Global Labor Organization, Bonn University and UNU-MERIT, Maastricht)
Mark C. Regets, Seth Sanders, Phanindra V. Wunnava and Harriet Duleep
Harriet Duleep is Research Professor of Public Policy at the College of William and Mary. She is a Fellow of the Global Labor Organization. Her main areas of research include immigration, the socioeconomic determinants of mortality, discrimination and minority economic status, and women’s labor force behavior.
Mark Regets is a Senior Fellow at the National Foundation for American Policy; a Fellow at the Global Labor Organization; and a Research Fellow at IZA. He “retired” from the National Science Foundation’s National Center for Science and Engineering Statistics and continues to write on immigration and science labor markets both as separate issues and where they intersect.
Seth G. Sanders is the Ronald G. Ehrenberg Chair in the Department of Economics at Cornell University. His research focuses on marginalized groups in the U.S. His work has appeared in a wide set of leading journals.
Phanindra V. Wunnava is the David K. Smith ’42 Chair in Applied Economics at Middlebury College, Middlebury, Vermont, a Research Fellow at IZA, Bonn, Germany, and Fellow at Global Labor Organization. His research appeared in a wide range of scholarly journals.
GLO: What is wrong with the received wisdom of the economics literature on the earnings of immigrants?
Harriet Duleep: Economists make two conceptual errors in their study of immigrant earnings. They equate earnings with level of human capital and they assume that differences in entry earnings, adjusting for levels of education and experience, measure differences in immigrant quality.
A perspective that permeates our book is that the economic success of immigrants cannot be measured by their initial ability to market their skills. If entry earnings are correlated with any factor that enables or increases human capital investment then immigrant entry earnings measure neither human capital or unmeasured immigrant quality.
Human capital that is not immediately valued in the host-country’s labor market is useful for learning new skills. Immigrants who do not initially earn on par with similarly educated natives provide a flexible source of human capital that supports the ever-changing needs of the U.S. economy. Emphasizing the low entry earnings of the post-1965 immigrants minimizes the depth of their contributions to the U.S. economy.
Also distorted is the measurement of immigrant earnings growth. By using the fixed-cohort-effect method economists commit a statistical design error by assuming that earnings growth rates are constant across year-of-entry cohorts.
Seth Sanders: The received wisdom also ignores interactions among family members. For the groups analyzed in this book, the low adjusted earnings of immigrant men during their initial U.S. years are often partially, or even completely, offset by the earnings of immigrant women.
We also find a large negative effect of husband’s self-employment on wives’ labor force participation. This likely reflects the wife contributing unpaid labor to the family’s business. In fact, whether the husband is self-employed is more important to a woman’s decision to work than whether the husband has been recently unemployed and, for some groups, than having young children at home.
Phanindra Wunnava: The extended family is also ignored. Sibling admissions negatively affect initial earnings but positively affect earnings growth. This suggest that extended family, or being part of a group with high extended-family admissions, aids the human capital investment of individual immigrants. We also find a positive and highly statistically significant relationship between the propensity of individual immigrants to be self-employed and the percent of their cohort who gained admission as siblings. For Asian immigrant men, the effect of sibling admissions on the propensity to be self-employed exceeds the effect of any other variable in our analysis.
GLO: Why are human capital investments the clue?
Mark Regets: When immigrants have problems transferring skills between labor markets—whether because of credentials, language, work processes, or changing their career—they have both lower costs and higher returns to human capital investments. Lower initial wages mean lower opportunity costs. New host-country human capital, valuable in of itself, also helps make their prior skills usable in their new labor market. In addition, the skill of knowing how to learn often transfers more directly than labor market skills. Thus, human capital investment not only makes entry earnings a poor predictor of an immigrant’s labor market success, but creates an inverse relationship between entry earnings and earnings growth.
Harriet Duleep:The human capital investments of immigrants who initially have problems transferring skills impact the U.S. economy. In a recent GLO paper David Jaeger, Peter McHenry, and I took the Immigrant Human Capital Investment (IHCI) model described in this book and viewed it from an employer’s perspective. Immigrants’ willingness to engage in human capital investment makes them a particular asset to entrepreneurs needing a labor force to learn new skills. We find that college-educated immigrants, especially from less-developed countries, are associated with increased entrepreneurship at the state level, a result that persists when we focus on entrepreneurship among natives (rather than immigrants themselves). David Green, in his 1999 Journal of Labor Economics paper, finds that immigration may contribute to a more flexible labor force because immigrants are more occupationally mobile than natives even long after their arrival.
GLO: Why have you chosen Asian immigrants to the US as reference? Strong family connections and high educational ambitions may make them a special group.
Seth Sanders:In the mosaic that is U.S. immigration, Asian immigrants have been understudied. They are, however, a very important part of U.S. immigration: as a percent of U.S. legal immigration they surpass Hispanic immigration.
I would also like to stress that though the book’s title is “Human Capital Investment: A History of Asian Immigrants and Their Family Ties,” it is more broadly focused on comparing immigrants from economically developing countries versus economically developed countries. We compare the earnings profiles, human capital investment, and family-aided assimilation of Asian immigrant groups from developing countries with immigrants from Western Europe and Japan.
Harriet Duleep:Persons coming from economically developing countries face serious constraints in their career, living conditions, and hopes for their children. By migrating—even if it means starting an entirely new career—they provide a highly flexible workforce to the U.S. A workforce all the more valuable because of what they have learned prior to their migration.
In addition to skill transferability (the lower the skill transferability, the higher the propensity to invest in new human capital), the book explores additional themes that affect the propensity of immigrants to invest in new human capital. These themes likely hold for other groups from economically developing countries.
One is the importance of permanence to human capital investment. In contrast to West European immigrants, Asian immigrants from developing countries are highly permanent. The propensity to invest in new human capital and the propensity to stay in the U.S. are jointly determined. Why invest in new human capital if you don’t plan on staying?
We would expect a high level of permanence for immigrants from the developing nations of Africa and much of Latin America. Analysts who follow our methodological suggestions should find high earnings growth particularly among those who enter the U.S. with relatively high levels of schooling.
Education’s effect on human capital investment is ambiguous in most human capital investment models increasing both the productivity and opportunity cost of human capital investment. In the IHCI model, explored in our book, education that does not fully transfer to the labor market (and thus does not raise the opportunity cost of human capital investment) is useful for learning new skills. The incentive to invest in new human capital increases for those with low skill transferability and with relatively high levels of education. We would expect to find high earnings growth among not only the Asian immigrants from developing countries but from similar immigrants from Africa and much of Latin America.
GLO: What brought you together as a team?
Harriet Duleep: Seth, Mark, and I were part of the research office of the U.S. Commission on Civil Rights. One of our goals was to follow the economic status of various ethnic and racial groups over time. Examining the earnings growth of immigrant men, Mark and I found high earning growth, contradicting Borjas’ Journal of Economic Literature article.
Mark, Seth, and I also worked on how to measure discrimination. Phani invited us to Middlebury College for a conference focused on discrimination, which led to the book New Approaches to Economic and Social Analyses of Discrimination (Link to). Steve Woodbury, who attended Phani’s conference, had read The Economic Status of Americans of Asian Descent, which Seth and I had written. Steve noted that very little work had been done on Asian immigrants. He urged us to pursue a book focused on Asian immigrants. With this, Human Capital Investment: A History of Asian Immigrants and Their Family Ties was born. It was an ongoing activity for the four of us for two decades.
Phanindra Wunnava:I had the good fortune to have known Mark in graduate school (we both had the same mentor: Solomon Polachek), and worked with Harriet in co-organizing a professional conference at my home institution focusing on family ties and immigration in 1993, which resulted in a well-received edited volume (Link to). Our coedited volume provided a logical springboard to our current book focusing on Asian immigrants and the role of family in augmenting their human capital investments to succeed in the U.S.
GLO: What are the policy conclusions from your work?
Mark Regets:Too much of the U.S. immigration debate talks about good immigrants and not-so-good immigrants. Most green cards are given to people with either an employer or a family sponsor. Our book shows that family-sponsored immigrants, even if they often start with lower earnings, do well economically in the United States. To find a niche in the U.S. labor market, they invest in human capital. Their earnings rapidly rise because of their new human capital, and because their new skills or certifications help them use more of their old skills.
Their families are also a factor. There is the positive selectivity of a relative being willing to sponsor—few immigrants want to sponsor someone who will be a burden on them. There is also the possibility of family members assisting immigrants in adapting to the United States. Family-based immigrants and refugees do not enjoy the immediate high-demand for their skills that employment-based immigrants do. But, they experience much higher earnings growth than employment-based immigrants. The highest earning growth rates are among those from countries with high rates of sibling admissions—one of the most criticized admission categories.
It is not only employer-sponsored immigrants who help the economy. Other immigrants add dynamism to the economy by their numerous strategies to find a niche for their skills in the labor market. Their much faster earnings growth eliminates social pathologies associated with low initial earnings, creating a more optimistic path for both them and their children.
Harriet Duleep:Concerns about a decline in immigrant quality emanate from methodological flaws in the measurement of immigrant earnings growth. The high earnings growth we find for immigrants beginning with low adjusted earnings is inconsistent with low labor market quality. The whole notion of a decline in immigrant quality when Asia and Latin America replaced Europe as the main source of immigrants should be excised from the policy discussion.
From a perspective of boosting human capital investment, policies to promote immigrant permanence should be encouraged. Temporary migration has an increasingly important role to play in a global economy, but policies that discourage long-term migration are short-sighted.
Policy makers should not view the U.S. post-1965 emphasis on family admissions solely from a humanitarian perspective. Their high human capital investment via educational investment, occupational change, and other paths has the important policy implication that the post-1965 immigrants may be better equipped than U.S. natives or immigrants with high skill transferability to dynamically respond to the changing skill needs of the U.S. economy.
Mark Regets: None of our work explicitly deals with finding an “optimal” mix of admissions programs, but I don’t see any policy reason that the number of family and employer sponsored immigrants need to be under a common total cap—if anything family and employer sponsored immigration create an increased demand for each other and complement each other in labor markets.
While I see value to both family and employer sponsorship, it might be worthwhile for the United States to once again allow unsponsored immigrants. Any point system we adopt in the future should be an addition to, not a replacement to the sponsorship system—creating a pathway for unsponsored immigrants.
GLO: Your support of immigration selection through family connections may undervalue the policy of selecting immigrants from successful foreign university graduates. What do you think?
Mark Regets: Though often presented as a dichotomy, family-based immigration complements employment-based immigration When NSF’s surveys ask foreign-born university grads about why they came to the United States, more than half list family as one of the reasons. There is a lot I would support to make it easier for the highest skilled migrants to come to the United States and easier for them to stay, but if we want the best, we need to be friendly to families. Even if we were able to cherry-pick immigrants without consideration for their families, each type of immigrant provides different types of economic benefits.
Phanindra Wunnava: My family is a perfect example of what Mark is talking about. My brother, Professor Subbarao Wunnava, is currently Emeritus Professor of Electrical and Computer engineering at Florida International University. Prior to coming to the U.S. he had a Ph.D. in nuclear physics from India with both teaching and industrial experience. He came to the U.S. via a visitor visa as a Post-Doctoral Fellow to North Dakota State University’s Physics Department, and later received his green card via an “Employment Visa.” I then came to the U.S. from India through a “Family Preference Visa” sponsored by my brother. One of the attractions of the U.S. to my brother was its family-friendly admissions policy.
Once here, my brother and sister-in-law supported me giving me a chance at the American Dream, which included among other things, allowing me to pursue a doctorate in economics. As documented in our book, the role of family cannot be overemphasized in the journey of immigrants to realize their full potential to be productive and contributing members of our society.
GLO: Harriet, how relates the book to your forthcoming article in the Journal of Population Economics?
The book shows how the assumption that earnings growth rates are constant across year-of-entry cohorts understates the earnings growth of specific groups that begin their U.S. trajectories with low initial earnings. The JOPE article illustrates this point for all immigrants.
The JOPE article also proves another important reason for the underestimates of immigrant earnings growth in studies following synthetic cohorts. This is how that revelation occurred.
For many years, Mark and I maintained that our results differed from those of Borjas because the fixed-cohort-effect method does not allow earnings growth to vary with entry earnings. But then, in recent years, editors rejecting our elusive and country-of-origin papers said that Borjas in his 2015 Journal of Human Capital paper did allow earnings growth to vary with entry earnings, and he still found low earnings growth for post-1965 immigrants.
The Society of Labor Economists was meeting in the Washington DC area and Xingfei Liu was presenting. Mark, Xingfei, and I met at the National Gallery of Art to discuss our most recent country-of-origin paper rejection. Mark and I were skeptical that Borjas (2015) actually let earnings growth vary with entry earnings. Xingfei disagreed. In the midst of Matisse, Monet, and Cezanne, he painstakingly went through the computer programming that underlies Borjas’ Journal of Human Capital article and showed Mark and me that Borjas had indeed let earnings growth vary with entry earnings.
The three of us then asked, what is going on??! Why did Mark and I in our elusive papers and Xingfei, Mark, and I in our Country of Origin papers find high earnings growth for immigrant men relative to natives, when Borjas found low earnings growth, using the same data!
In the silence, a calling from Sherlock Holmes occurred: “Once you eliminate the impossible, whatever remains, no matter how improbable, must be the truth.”
We did not exclude zero earners or students in our synthetic cohort analyses whereas Borjas did. We had also found high earnings growth for immigrants in longitudinal data (see our papers in Demography) where we did exclude zero earners. What did our synthetic cohort analyses and the longitudinal analyses have in common?
In each case the same type of individuals were in both first- and second-period samples—in the longitudinal data because they were the same individuals and in the synthetic cohorts because zero earnings did not knock anyone out of the sample in either period. Excluding zero earners in a synthetic cohort analysis will exclude people from the first period who would be eligible for the sample in the second period and vice versa. If immigrants are differentially affected from the sample restrictions as natives, then estimates of immigrant earnings growth relative to natives may have little to do with the actual earnings growth of immigrants. High earnings growth for immigrants may be changed to low earnings growth simply because low wage-earning natives are more likely to leave the labor force with age. Our results overturn the accepted wisdom that post-1965 U.S. immigrants have low earnings growth. They have high earnings growth. Please see Part IV of the forthcoming JOPE paper.
************* With the authors spoke Klaus F. Zimmermann, GLO President.
A new GLO Discussion Paper reports that there is a systematic age gradient in the reporting error in BMIsuggesting potential bias in the use of such data and the need to collect objective measures.
Author Abstract: We designed an experiment to explore the extent of measurement error in body mass index (BMI), when based on self-reported body weight and height. We find that there is a systematic age gradient in the reporting error in BMI, while there is limited evidence of systematic associations with gender, education and income. This is reassuring evidence for the use of self-reported BMI in studies that use it as an outcome, for example, to analyse socioeconomic gradients in obesity. However, our results suggest a complex structure of non-classical measurement error in BMI, depending on both individuals’ and within-household peers’ true BMI. This may bias studies that use BMI based on self-reported data as a regressor. Common methods to mitigate reporting error in BMI using predictions from corrective equations do not fully eliminate reporting heterogeneity associated with individual and withinhousehold true BMI. Overall, the presence of non-classical error in BMI highlights the importance of collecting measured body weight and height data in large social science datasets.
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.
A new GLO Discussion Paper find that local politicians in India systematically misallocate resources based on party loyalty and successfully deliver votes to their national co-partisans.
Author Abstract: Local politicians can function as crucial intermediaries between voters and party bosses in a clientelistic network. We study their role by matching data on 300 million welfare payments in the Indian state of West Bengal to village-level election returns. Local politicians systematically misallocate resources based on party loyalty and successfully deliver votes to their national co-partisans. Politicians are compensated for successful mobilization through a performance bonus immediately after the national election. The (promise of) increased compensation from government funds induces opposition candidates to switch to the ruling party in strategically important local councils, bringing them under its control.
Laura V. Zimmermann has a joint appointment as Associate Professor in the Department of Economics and in theDepartment of International Affairs at the University of Georgia. She recently presented her research on gender bias and policy in India summarized in GLO Discussion Paper No. 888 at the Fourth IESR-GLO Conference. Video of presentation: LINK
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.
All the presentation in this series are based on the projects that GLO-VirtYS program scholars completed as part of their program participation.
September 9th 2021 Program on 1 pm London/UK time.
Chaired by GLO VirtYS Program Director Olena Nizalova.
Jun Hyung Kim, Jinan University and GLO Affiliate Mental Health Consequences of Working from Home during the Pandemic (GLO VirtYS program advisor Professor Jan van Ours) Watch the video of the event: Kim.
Femke Cnossen, University of Groningen and GLO Affiliate Learning the Right Skill: Revealed Local Labour Demand for Underlying Skills in STEM and Non-STEM Graduates (GLO VirtYS program advisors Dr Matloob Piracha and Dr Guy Tchuente)
Author Abstract:This paper is the first to investigate the role of firm-level upstreamness (i.e. the number of steps before the production of a firm meets final demand) in explaining wage differences according to workers’ origin. Using unique linked employer-employee data relative to the Belgian manufacturing industry for the period 2002-2010, our estimates show that firms that are further up in the value chain pay significantly higher wages. However, the wage premium associated with upstreamness is also found to vary substantially depending on the origin of the workers. Unconditional quantile estimates suggest that those who benefit the most from being employed in more upstream firms are high-wage workers born in developed countries. In contrast, workers born in developing countries, irrespective of their earnings, appear to be unfairly rewarded. Quantile decompositions further show that, while differences in average values of upstreamness according to workers’ origin play a limited role, differences in wage premia associated with upstreamness account for a substantial part of the wage gap between workers born in developed and developing countries, especially at the top of the earnings distribution. These results are shown to be robust to a number of sensitivity tests, including broader or narrower definitions of workers’ wages and different firm environments in terms of technological and knowledge intensity.
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.
A new GLO Discussion Paper shows that studies cited by psychologists claiming there are no U-shapes are in error. The effects of the mid-life dip are comparable to major life events such as losing a spouse or becoming unemployed.
Author Abstract: A number of studies – including our own – find a mid-life dip in well-being. Yet several papers in the psychology literature claim that the evidence of a U-shape is “overblown” and if there is such a thing that any such decline is “trivial”. Others have claimed that the evidence of a U-shape “is not as robust and generalizable as is often assumed,” or simply “wrong.” We identify 424 studies, mostly published in peer reviewed journals that find U-shapes that these researchers apparently were unaware of. We use data for Europe from the Eurobarometer Surveys (EB), 1980-2019; the Gallup World Poll (GWP), 2005-2019 and the UK’s Annual Population Survey, 2016-2019 and the Census Bureau’s Household Pulse Survey of August 2021, to examine U-shapes in age in well-being. We find remarkably strong and consistent evidence across countries of statistically significant and non-trivial U-shapes in age with and without socio-economic controls. We show that studies cited by psychologists claiming there are no U-shapes are in error; we reexamine their data and find differently. The effects of the mid-life dip we find are comparable to major life events such as losing a spouse or becoming unemployed. This decline is comparable to half of the unprecedented fall in well-being observed in the UK in 2020 and 2021, during the Covid19 pandemic and lockdown, which is hardly “inconsequential” as claimed.
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.
Global Labor Organization (GLO) invites interested young scholars to apply for participation in the 2021-22GLO Virtual Young Scholars Program (GLO VirtYS). This is the third cohort of the successful GLO venture to support career developments of young researchers. It also provides a unique opportunity to interact with the large and very active GLO global network.
Application deadlineEXTENDED: September 24, 2021, 5 pm GM.
A new GLO Discussion Paper finds that self-reported physical and mental health decreased in 2013 and in 2019 compared to 2009indicating the need for more inclusive health strategies.
Author Abstract: In Greece, given the precarious nature of the sex work industry, sex workers health and wellbeing is of concern. However, relevant research remains limited. This study examined whether sex workers’ self-reported physical and mental health deteriorated across time points during the economic recession in Athens, Greece. The study focused on 13 areas where off-street and street-based sex work occured. Cross-sectional data was collected from the same areas in 2009 (i.e. before the economic recession began) and in 2013 and 2019 (i.e. at time points during the recession). Self-reported physical and mental health decreased in 2013 and in 2019 compared to 2009. A positive association was found between the country’s gross domestic product and sex workers’ self-reported physical and mental health. The opposite was found for annual aggregate unemployment. The determinants of better self-reported physical and mental health were sex workers’ economic condition, Greek nationality, off-street sex work, and registered sex work status. The opposite was found for more years’ involvement in sex work and drug consumption. Findings indicate the need for more inclusive health strategies, especially during periods of economic downturn when sex workers’ physical/mental health is likely to decline. This is the first study to investigate the association between economic recession and sex workers’ self-reported physical and mental health.
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.
Presentations in this series are based on the projects that GLO-VirtYS program scholars completed as part of the their program participation. See for the details VirtYs program and the cohort 2021.
September 16th 2021 Program on 1 pm London/UK time.
Odmaa Narantungalag, Massey University and GLO Affiliate The Local Impacts of Natural Resource Extraction: Evidence from Mongolia (GLO VirtYS program advisor Professor Kompal Sinha)
Soumya Pal, Centre for Public Policy, Indian Institute of Management Bangalore and GLO Affiliate Weather Shock, Agricultural Productivity, and Infant Health: A Tale of Environmental Justice (GLO VirtYS program advisor Professor Almas Heshmati) Video
Chaired by GLO VirtYS Program Director Olena Nizalova.
Featured Image: Employee-Training-unsplash
Odmaa Narantungalag is a Ph.D. student in economics at Massey University in New Zealand. Her research interests are in development economics, natural resource economics, and health economics. Odmaa holds a Bachelor of Arts in Economics from American University in Bulgaria and a Master of Public Administration from Tsinghua University, China. Prior to starting her doctoral studies, Odmaa worked as a national consultant at the Ministry of Economic Development and Ministry of Finance in Mongolia for various projects implemented by the World Bank and United Nations Development Programme.
GLO VirtYS project: The Local Impacts of Natural Resource Extraction: Evidence from Mongolia
This paper investigates the local economic impacts of a large-scale copper-gold mine in Mongolia. Employing household data from 2008 to 2016, I find positive economic effects of the mine. A ten percent increase in mining activities resulted in 2.2 and 2.3 percent increases in income and food consumption, respectively. Mining activities enabled households to increase their medical expenditures, while sickness did not increase significantly. In contrast, education expenditures dropped while educational attainments improved in mining areas. Both expenditure patterns indicate that large-scale extractive industries can positively benefit residents, and corporate social responsibility activities further enhance the mining sector’s traditional benefits.
Soumya Pal is PhD Candidate at the Centre for Public Policy, Indian Institute of Management Bangalore. His research interests are broadly in the domain of Climate Change, Regulations, and Environmental Justice. His doctoral thesis focuses on Economics of Climate Change and Environmental Regulations. He completed his bachelor’s in Statistics, Master’s, and M.Phil. in Demography.
GLO VirtYS project: Weather Shock, Agricultural Productivity, and Infant Health: A Tale of Environmental Justice
We study how income shock due to extreme weather fluctuations causally impacts the birth outcomes. We selected households depended directly on agriculture due to their extreme vulnerability to temperature and rainfall shocks. We find large efficiency loss attributed to weather shock for major food crops to the extent of 20%. However, we find that access to technology provides resilience against weather shock, therefore, causing the heterogeneity in vulnerability across farming households. Based on it, we designed the agriculture-household model, which predicts that health outcomes of child are dependent on income shock due to abrupt change in weather conditions. We tested the hypothesis by introducing weather shock in the cropping season before the conception of child to eliminate the confounding effect of direct impact due to extreme weather conditions. We find that weather shocks in cropping season, increases the likelihood of child mortality, low birth weight, and birth size. We further find that access to technology, financial tools, and economic security net reduces the impact of income loss due to weather shock. Our results suggests that access to resilient capabilities leads to heterogeneous impact across farmer households causing environmental injustice. Further, our findings provide insights into the policy design for long term shift in weather patterns due to climate change and stresses on the inequality in resilience against extreme weather events.
A new GLO Discussion Paper finds that discretionary fiscal policy measures in Austria are key to counteracting the inequality- and poverty-enhancing effect of COVID-19.
Author Abstract: This paper analyzes the impact of the COVID-19 crisis on household income in Austria, using detailed administrative labor market data, in combination with micro-simulation techniques, that enable specific labor market transitions to be modeled. We find that discretionary fiscal policy measures in Austria are key to counteracting the inequality- and poverty-enhancing effect of COVID-19. Additionally, we find that females tend to experience a greater loss in terms of market income. The Austrian tax-benefit system, however, reduces this gender differences. Disposable income has dropped by around 1% for both males and females. By comparison, males profit mainly from short-time work scheme, while females profit especially from other discretionary policy measures, such as the one-off payment for children.
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.
A new paper published ONLINE FIRST with free readlink in the Journal of Population Economics finds that left-behind parents experience lower utility when their adult children migrate.
Published ONLINE FIRST 2021: Journal of Population Economics READLINK: https://rdcu.be/cxiiq
Shu Cai
Author Abstract: This paper examines the impact of children’s migration on the well-being of left-behind parents using panel data on experienced utility measured by the Day Reconstruction Method. Exploiting exogenous variation in exposure to employment shocks at migration destinations for identification, we find that left-behind parents experience lower utility when their adult children migrate. This is partly due to increased working time and less time spent in social activities, and partly due to reduced utility within activity type. The latter effect is consistent with the finding of less physical care and psychological support from children who have migrated. These negative effects dominate the possible benefits of greater income associated with children’s migration.
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.
Author Abstract: The study replicates the first European field experiment on gay men’s labor market prospects in Greece. Utilizing the same protocol as the original study in 2006-2007, two follow-up field experiments took place in 2013-2014 and 2018-2019. The study estimated that gay men experienced occupational access constraints and wage sorting in vacancies offering lower remuneration. It was found that in 2013-2014 and 2018-2019, gay men experienced increasingly biased treatment compared to 2006-2007. Moreover, the results suggested that unemployment bore an association with occupational access constraints and wage sorting in vacancies offering lower remuneration for gay men. In each of the three experiments, this study captured recruiters’ attitudes toward gay men. A one standard deviation increase in taste-discrimination attitudes against gay men decreased their access to occupations by 9.6%. Furthermore, a one standard deviation increase in statistical-discrimination attitudes against gay men decreased their access to occupations by 8.1%. According to the findings, in 2013-2014 and 2018-2019, firms excluding gay applicants expressed a higher level of taste- and statistical-discrimination attitudes compared to 2006-2007. A gay rights backlash due to the LGBTIQ+ group’s attempt to advance its agenda, rising far-right rhetoric, and prejudice associated with economic downturns experienced in Greece might correspond with increasing biases against gay men.
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.
A new GLO Discussion Paper argues that negative and zero incomes cannot be treated equally in terms of household well-being and that standard methods used by practitioners fail to recognize this fact likely resulting in overestimations of poverty.
Author Abstract: The paper discusses the main issues related to negative and zero incomes that are relevant for the measurement of poverty. It shows the prevalence of non-positive incomes in high- and middle-income countries, provides an analysis of the sources and structure of these incomes, outlines the various approaches proposed by scholars and statistical agencies to treat non-positive incomes, and explains how non-positive incomes and alternative correction methods impact the measurement of standard poverty indexes. It is argued that negative and zero incomes cannot be treated equally in terms of household well-being and that standard methods used by practitioners fail to recognize this fact likely resulting in overestimations of poverty.
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.
In a festive ceremony at Maastricht University on September 2, 2021, Anne-Lore Fraikin received her double PhD degree with University of Liege after proper examinations. The procedure was hybrid (online and in person) chaired by the Pro-Rector of Maastricht University Prof. Dr. Alexander Bruggen. The theme of the thesis is “The Effect of Financial Retirement Incentives Originating from the Social Security System on the Retirement Behavior of Older Belgian Workers”.
Dr. Anne-Lore Fraikin is an Affiliated Researcher in the POP @ UNU-MERIT group and a GLO Research Affiliate. The thesis work was done under the supervision of Prof. Dr. Alain Jousten (University of Liege) and Prof. Dr. Alessio Brown (UNU-MERIT & Maastricht University). The Assessment Committee consisted of Prof. Dr. Klaus F. Zimmermann (UNU-MERIT & Maastricht University) as the Chair, Prof. Dr. Sergio Perelman (University of Liege), Prof. Dr. Antoine Bozio (Paris School of Economics), Prof. Dr. Corrado Giulietti (University of Southampton), Prof. Dr. Mathieu Lefebvre (University of Strassbourg and Liege) and Dr. Zina Nimeh (UNU-MERIT). Brown and Zimmermann are Co-Directors of the POP @ UNU-MERIT group dealing with Population, Development and Labor Economics. Brown, Jousten and Giulietti are GLO Fellows and Zimmermann is GLO President.
TheGLO Virtual Seminar is a monthly internal GLO research event chaired by GLO Director Matloob Piracha and hosted by the GLO partner institution University of Kent. The results are available on the GLO website and the GLO News section, where also the video of the presentation is posted. All GLO related videos are also available in the GLO YouTube channel. (To subscribe go there.)
The last seminar was given on July 8, 2021, London/UKat 1-2 pm, by Olga Popova, Institute for East and Southeast European Studies (IOS) & GLO on Does weather sharpen income inequality in Russia? See below a report, the presentation slides and the full video of the seminar.
Report
Does weather sharpen income inequality in Russia?
GLO Virtual Seminar on July 8, 2021
Olga Popova, Institute for East and Southeast European Studies (IOS) & GLO
ABSTRACT Using subnational panel data, this paper analyzes how hot and cold extreme temperatures and precipitation affect economic activity and income distribution in Russia. We account for the intensity of exposure to extreme temperatures by analyzing the impacts of both single and consecutive days with extreme temperature, i.e., heat waves and cold spells, and examine several labor market channels behind those effects. We find that consecutive extremely hot days decrease regional GDP per capita but do not affect income inequality. Poor regions are affected by extreme temperatures relatively more than rich regions. These effects occur because of reallocation of labor from employment to unemployment, an increase in prices in poor regions, and to some extent because of changes in the industrial employment structure, while relative wages are not affected. Extremely cold days, both single and consecutive, as well as extreme precipitation have a limited impact on economic activity and income distribution.
Research Questions and Contribution
Examine the distributional impacts of extreme temperature and precipitation shocks, using the regional panel data from Russia
Account for the intensity of extreme temperatures exposure by simultaneously examining the impacts of both single and consecutive days with extreme temperature
Identify and test the labor market channels behind the inequality‐temperature relationship
Study if the impacts are heterogeneous • Poor vs. rich regions • Hot vs. cold regions
Correlation between days above 25°C and ln(GDP) in Russia
Wherever you work, pick your gig: join WageIndicator’s gig webinar on migration and telemigration on September 24.
GLO and WageIndicator Foundation are partner organizations.
Due to the digital revolution and the COVID-19 pandemic, labor mobility has increased significantly. Migrants use platforms to get a job locally, while telemigrants use platforms to perform remote work.
WageIndicator’s third event on the gig economy focuses on the experiences of these migrants and telemigrants.
Why do they choose this type of work?
And what challenges do they face?
Listen to the stories of researchers and platform representatives by joining the event on Friday 24 September!
A new GLO Discussion Paper highlights the impact of delay and the importance of structuring bankruptcy procedures to rapidly resolve uncertainty about firms’ future prospects.
Author Abstract: Bankruptcy restructuring procedures are used in most legal systems to decide the fate of businesses facing financial hardship. We study how bargaining failures in such procedures impact the economic performance of participating firms in the context of Croatia, which introduced a “pre-bankruptcy settlement” (PBS) process in the wake of the Great Recession of 2007 – 2009. Local institutions left over from the communist era provide annual financial statements for both sides of more than 180,000 debtor- creditor pairs, enabling us to address selection into failed negotiations by matching a rich set of creditor and debtor characteristics. Failures to settle at the PBS stage due to idiosyncratic bargaining problems, which effectively delays entry into the standard bankruptcy procedure, leads to a lower rate of survival among debtors as well as re- duced employment, revenue, and profits. We also track how bargaining failures diffuse through the network of creditors, finding a significant negative effect on small creditors, but not others. Our results highlight the impact of delay and the importance of structuring bankruptcy procedures to rapidly resolve uncertainty about firms’ future prospects.
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.
Author Abstract: Information and communication technology (ICT) challenges traditional assumptions about the capacity to manage workers beyond organizational and physical boundaries. A typology connects a variety of non-traditional work organizations made possible by ICT, including offshoring, outsourcing, remote work, virtual companies, and platforms. A model illustrates how new technology serves as a proximate cause for a revision of social contracts between capital, labor and government reached through bargaining, and how external shocks such as the COVID-19 pandemic, the institutional environment, and limitations in practice influence how technology changes the organization of work. An historical case illustrates the general features of the model, and a review of the outsourcing and offshoring literature provides instructive examples of how features of the model will potentially influence the future of post-pandemic remote work
The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.
A new GLO Discussion Paper revisits the influential theory of monopolistic competition and optimum product variety. Differences in factor endowments across countries determine the pattern of trade between varieties and output per variety, which is indeterminate the standard model.
Author Abstract: In this paper we revisit the influential theory of monopolistic competition and optimum product variety as developed by Dixit and Stiglitz (1977) with applications in international trade by Krugman (1979,1980), by modeling fixed and variable costs of production in terms of underlying use of skilled and unskilled labor in a single good model. This is different from earlier work on multi sector variant of Krugman cum Heckscher-Ohlin-Samuelson model such as Helpman (1981) and others. In our structure factor endowment and factor intensities determine both number of varieties and output per variety in a closed economy mimicking the features of Heckscher-Ohlin-Samuelson model. Differences in factor endowments across countries determine the pattern of trade between varieties and output per variety, which is indeterminate in a standard single good Dixit-Stiglitz-Krugman model. Later we reflect on wage inequality and unemployment providing some interesting results.
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.
Author Abstract: Academic consensus about normative prescriptions on the ethnic and cultural composition of societies has been shifting in recent decades. It has evolved from what seemed desirable but was acknowledged to be unrealistic (the noble idea of a melting pot), to what is realistic because it has already happened, but might be undesirable in the long run: the multicultural diaspora. Plural societies, an unintended consequence of multiculturalism, lurk in the background. Thus scholars of social and economic questions, as well as societies, face a threehorned dilemma. We throw some light on the dilemma by examining school friendship networks in five European countries with recent immigration. Our results highlight the force of elective affinities in overcoming differences, but they also point to the countervailing forces of elective discordance that are currently driving increasing division.
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.
Author Abstract: This article explores the gender gap in time allocation in Europe, offering up-to-date statistics and information on several factors that may help to explain these differences. Prior research has identified several factors affecting the time individuals devote to paid work, unpaid work, and child care, and the gender gaps in these activities, but most research refers to single countries, and general patterns are rarely explored. Cross-country evidence on gender gaps in paid work, unpaid work, and child care is offered, and explanations based on education, earnings, and household structure are presented, using data from the EUROSTAT and the Multinational Time Use Surveys. There are large cross-country differences in the gender gaps in paid work, unpaid work, and child care, which remain after controlling for socio-demographic characteristics, although the gender gap in paid work dissipates when the differential gendered relationship between socio-demographic characteristics and paid work is taken into account. This paper provides a comprehensive analysis of gender gaps in Europe, helping to focus recent debates on how to tackle inequality in Europe, and clarifying the factors that contribute to gender inequalities in the uses of time.
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.
A new GLO Discussion Paper finds that menstrual restriction related rituals can have persistent negative implications on women’s physical and mental health that is not just limited to the time of menstruation.
Author Abstract: We study the association between the ritual of menstrual restrictions and maternal health- care access as well as women’s subjective well-being. Similar restrictions, also practised around the time of childbirth, are based on the assumption that women are ritually impure during these phases of their lives. Although menstrual taboos and restrictions are common across many developing countries, we use micro-data from Nepal where these rituals are widely prevalent. We use a rich set of controls as well as assess the sensitivity of our results to alternative estimation methods. We find that women who face any menstrual restriction are also more likely to give birth at home and receive assistance only from untrained individuals during childbirth, which increases the risk of maternal mortality. We find that only the strictest menstrual restrictions are associated with a decline in subjective well-being. These findings indicate that menstrual restriction related rituals can have persistent negative implications on women’s physical and mental health that is not just limited to the time of menstruation.
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.
A new GLO Discussion Paper reports a stark difference in rural India between men and women: while many male workers took up informal employment, most female workers dropped out of the labor force.
Author Abstract: This paper presents evidence on the short and long-term impact of the first COVID-19 wave on India’s rural youth. We interviewed about 2,000 vocational trainees from Bihar and Jharkhand between March 2020 and March 2021. We report a stark difference between men and women: while many male workers took up informal employment, most female workers dropped out of the labour force. Using a randomised experiment, we find that a government supported digital job platform does not increase job search or employment. Our findings suggest that bridging the gap between rural youths and urban formal labour markets requires much more active and targeted policy interventions, especially for female workers.
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.
We analyse the different fiscal treatment of married and cohabiting couples across all EU Member States using microsimulation methods. Our paper highlights important differences across EU countries’ tax-benefit systems, where seven countries show substantial bonuses for married couples and four exhibit marriage penalties. On a micro level, we find that these marriage bonuses/penalties differ substantially across household types and income. From a policy point of view, our results suggest that the abolishment of marriage-related tax-benefit components in countries with marriage bonuses would leave some households financially worse off but would increase governments revenues that could be spent to targeted support of specific groups. From both an equity and a gender equality point of view, this abolishment would be desirable.
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.
Presentations in this series are based on the projects that GLO-VirtYS program scholars completed as part of the their program participation. See for the details VirtYs program and the cohort 2021.
September 9th 2021 Program on 1 pm London/UK time.
Jun Hyung Kim, Jinan University and GLO Affiliate Mental Health Consequences of Working from Home during the Pandemic (GLO VirtYS program advisor Professor Jan van Ours)
Femke Cnossen, University of Groningen and GLO Affiliate Learning the Right Skill: Revealed Local Labour Demand for Underlying Skills in STEM and Non-STEM Graduates (GLO VirtYS program advisors Dr Matloob Piracha and Dr Guy Tchuente)
Chaired by GLO VirtYS Program Director Olena Nizalova.
Featured Image: Employee-Training-unsplash
Jun Hyung Kim is an assistant professor of economics at the Institute of Economic and Social Research at Jinan University. His research is focused on parenting and child development, with particular attention on how life cycle decisions of parents interact with parenting decisions. He received B.A. in economics at UC Berkeley and PhD in economic at the University of Chicago.
GLO VirtYS project: Mental Health Consequences of Working from Home during the Pandemic
This paper examines the effects of working from home on mental health, using unique real time survey data from South Korea collected during the COVID-19 pandemic. We find that working from home negatively affects the mental health of workers in the first half of 2020. Furthermore, we find substantial heterogeneity across gender and home environment. The negative impact of working from home is concentrated on women, and on those who are primarily responsible for housework while also maintaining market work. Surprisingly, workers who live with children in the household do not suffer from the negative effects of working from home. Our findings suggest that family-work interaction may be an important factor in the optimal design of working from home.
Femke Cnossen is a PhD student at the University of Groningen. Her PhD focuses on the micro-dynamics of technological change and labour markets, by linking survey data to registerdata. She studies skill demand, (routine) task prices, and on the impact of technological progress on meaningfulness of work. From september, she is a postdoctoral researcher in regional skill analysis at the Faculty of Spatial Sciences at the University of Groningen.
GLO VirtYS project: Learning the Right Skill: Revealed Local Labour Demand for Underlying Skills in STEM and Non-STEM Graduates
Technological change and globalization have sparked debates on the changing demand for skills in western labour markets, especially for middle skilled workers who have seen their tasks replaced. This paper provides a new data set, which is based on text data from curricula of the entire Dutch vocational education system. We extract verbs and nouns to measure social, technical and basic skills in a novel way. This method allows us to uncover the skills middle-skilled students learn in school. Using this data, we show that skill returns vary across students specialized in STEM, services or health. Furthermore, we show that social and technical skills differentially relate to the probability of being employed in either the low or high skill sector or in the goods sector. Our findings can guide future research on the complementarity between skills and production technologies.
Interested researchers are cordially invited to submit their abstracts or papers for presentation consideration. The 37th EBES Conference will take place ONLINE ONLY on October 6-8 2021. GLO is a co-organizing partner, and FOM University of Applied Sciences is the local host operating from Berlin.
This is aGLO supported event. EBES, theEurasia Business and Economics Society, and FOM University of Applied Sciencesboth are strategic partners and institutional supporters of GLO. GLO President Klaus F. Zimmermann is also President of EBES.FOM and GLO will organize own sessions for the event.
Authors are invited to submit their abstracts or papers no later than September 17, 2021.
Measuring poverty trends and dynamics is an important undertaking for poverty reduction policies, which is further highlighted by the SDG goal 1 on eradicating poverty by 2030. We provide a broad overview of the pros and cons of poverty imputation in data-scarce environments, update recent review papers, and point to the latest research on the topics. We briefly review two common uses of poverty imputation methods that aim at tracking poverty over time and estimating poverty dynamics. We also discuss new areas for imputation.
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.
A new GLO Discussion Paper shows that the differences in test scores between big and small cities depend on school characteristics, while the differences between general and vocational schools are mainly explained by family social status.
This study aims to identify the main determinants of student performance in reading and maths across eight European Union countries (Austria, Croatia, Germany, Hungary, Italy, Portugal, Slovakia, and Slovenia). Based on student-level data from the OECD’s PISA 2018 survey and by means of the application of efficient algorithms, we highlight that the number of books at home and a variable combining the type and location of their school represent the most important predictors of student performance in all of the analysed countries, while other school characteristics are rarely relevant. Econometric results show that students attending vocational schools perform significantly worse than those in general schools, except in Portugal. Considering only general school students, the differences between big and small cities are not statistically significant, while among students in vocational schools, those in a small city tend to perform better than those in a big city. Through the Gelbach decomposition method, which allows measuring the relative importance of observable characteristics in explaining a gap, we show that the differences in test scores between big and small cities depend on school characteristics, while the differences between general and vocational schools are mainly explained by family social status.
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.
Global Labor Organization (GLO) invites interested young scholars to apply for participation in the 2021-22GLO Virtual Young Scholars Program (GLO VirtYS). This is the third cohort of the successful GLO venture to support career developments of young researchers. It also provides a unique opportunity to interact with the large and very active GLO global network.
A new GLO Discussion Paper highlights social identity as an important determinant of STEM-related education with potential long-term implications for the economic welfare of disadvantaged groups.
In this study, we examine characteristics of employment in FDI in Vietnam. Workers from FDI account for 5.6% of working people. Female and younger people are more likely to work the FDI sector. Compared with private and public sectors, the FDI sector has a lower share of workers who have tertiary education. The FDI sector has a high proportion of workers with social insurance, at 95%. However, there is a relatively large proportion of the FDI workers receiving daily wages and piece payment. The FDI workers have a high number of working hours and more likely to have overtime working hours. The FDI workers have lower wages per hour than those in the private and public sector. However, once observed characteristics of workers are controlled for, the FDI workers have higher hourly and monthly wages than the private as well as public workers. The proportion of FDI workers who moved out of the FDI sector was 11% over a three-month period and 31% over a two-year period. Older workers are more likely to move out of the FDI sector than young ones. There is no evidence that workers move out of the FDI sector after age 35.
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.
A new GLO Discussion Paper highlights social identity as an important determinant of STEM-related education with potential long-term implications for the economic welfare of disadvantaged groups.
Author Abstract: This paper investigates the role of social identity, namely gender and caste of individuals, in stream choice at the higher secondary level of schooling in India. We analyze the choice of science stream that is a crucial determinant of subsequent science, technology, engineering, and mathematics (STEM) related education and labour market outcomes. Using three rounds of nationally representative surveys between 2007 and 2018, we estimate regression models including household characteristics and fixed effects to control for region-specific unobserved heterogeneity. We find that females and individuals belonging to historically disadvantaged social groups (castes) are significantly less likely to study science. On average, female students enrolled in higher secondary education have 9 percentage points lower probability than male students to study science during the period considered for the analysis. For students belonging to the socially disadvantaged groups – Scheduled Tribes (ST), Scheduled Caste (SC), and Other Backward Classes (OBC), the likelihood of studying science is significantly lower by 6.9, 4.4, and 2.7 percentage points, respectively, than students from the less-disadvantaged groups. Using decomposition analysis, we show that the differences in the observable characteristics such as economic affluence and household head’s education significantly explain some portion of the caste-based gaps, but they do not explain the gender gap that persists even in an intra-household comparison. We also test for the intersectionality of the overlapping identities of gender and caste in this context. We find evidence of cumulative disadvantages for females of SC and OBC groups, but lower gender disparity among ST students indicating the presence of intersectionality for this group. Thus, our paper highlights social identity as an important determinant of STEM-related education that may have long-term implications for the economic welfare of disadvantaged groups.
The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.
