The Association of African Young Economists (AAYE), established in 2013, is a public not-for-profit organization. It aims to facilitate scientific collaboration to generate and disseminate knowledge for the development of the African continent.
A new GLO Discussion Paper compares the performance of econometric and machine learning models in predicting 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.
Author Abstract: OLS models are the predominant choice for poverty predictions in a variety of contexts such as proxy-means tests, poverty mapping or cross-survey imputations. This paper compares the performance of econometric and machine learning models in predicting poverty using alternative objective functions and stochastic dominance analysis based on coverage curves. It finds that the choice of an optimal model largely depends on the distribution of incomes and the poverty line. Comparing the performance of different econometric and machine learning models is therefore an important step in the process of optimizing poverty predictions and targeting ratios.
Do gender-based board quotas lead to a higher share of women in top management positions? A new GLO Discussion Paperfinds supporting evidence that affirmative action has induced sizable increases in South Africa.
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: Gender-based board quotas do not always lead to higher share of women in top management positions. We study the consequences of an affirmative action policy that stipulates gender- and race-based targets in top management positions, beyond boards. We focus on the representation of intersectional group identities, such as race and gender, at the top. We find sizable increase in the likelihood of Black women employment in top positions in the post-policy period relative to Black men, White women and White men in South Africa. We extend our analysis and estimate policy spillovers for years of schooling, earnings gaps and self-employment.
A new GLO Discussion Paperstudies the effects of product, process, and organizational innovations on firm labor productivity in Pakistan.
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 determinants of product, process, and organizational innovation, and their impact on firm labor productivity using data from a unique innovation survey of firms in Pakistan. We find significant heterogeneity in the impact of different innovations on labor productivity: Organizational innovation has the largest effect followed by process innovation. But unlike much of the literature, we found a negative impact of product innovation suggesting a disruption effect of new products; however, this is mitigated if new products are paired with process or organizational innovations. We find a strong impact of engaging in knowledge creation on product and process innovation. We found that external knowledge networks and innovation cooperation play no significant role in firms’ decision to perform R&D and its intensity, though vertical linkages with suppliers (clients) promote product (process) innovations. Foreign competition has a negative effect on product innovation and a positive effect on organizational innovation.
A new GLO Discussion Paperfinds for Italian data that mismatched workers are at risk of long-term unemployment.
The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.
Author Abstract: In this article, we investigate the role of several types of educational mismatch in explaining labour market transitions of workers with secondary and higher education. We focus on transitions from employment to unemployment and on job changes, to assess whether mismatch is a temporary or a permanent phenomenon. In the first case, as suggested by matching models, mismatch will be eliminated through job-to-job transitions. In the second case, it might be permanent and caused by employment discontinuity and deskilling processes. By using information from the Italian Survey of Professions (ICP) and the Survey on Labour Participation and Unemployment (PLUS), we calculate three measures of vertical mismatch. This allows comparing the outcomes from self-reported and revealed match measures in order to assess the robustness of the results. In addition, we use a measure of horizontal mismatch and evaluated the effect of Routine Bias Technical change (RBTC) in terms of unemployment risk, through a Routine Task Index (RTI) calculated on Italian data. Results indicate that mismatched workers are at risk of long-term unemployment. More specifically, among workers with higher education, the risk is due to mismatches in the field of studies whereas for secondary educated workers, over-education is the main cause of unemployment risk. The effect of the RTI is often not significant. This adds evidence to the problem of skill gap in Italy, as educational choices are not aligned to market needs. In this respect, both demand side and supply side policies are needed to allow firms to better use this human capital.
Professor Niaz Asadullah gave a talk at the Department of Economics of East West University in Dhaka, Bangladesh, on “Labor Economics for Southeast Asia“. He is the Lead of the GLO Southeast Asia Cluster. The session was moderated by Assistant Professor Dr. Iftekharul Huq. The session is part of GLO supported activities in the region to promote the study and practice of labor economics. Topics discussed included the low participation of women in Southeast Asian labor markets, the linkages between labor and marriage market, the dynamics of wage returns to education and the risk of job automation and technological unemployment. A large number of students attended the event and actively took part in the Q&A session.
The World Bank and HSE University welcome applications for the upcoming Annual International Summer School“Education and Development”, July 6–10, 2020, in Moscow. The topic for 2020 is “Exploring innovative ways to tackle poverty and inequity through education”. GLO Fellow Harry Patrinos, Practice Manager at the World Bank, is one of the invited speakers.
The Call of World Bank and HSE University
Annual International Summer School“Education and Development”, July 6–10, 2020, in Moscow, Russia. The topic for 2020:
“Exploring innovative ways to tackle poverty and inequity through education”
We encourage applications from students and early-career researchers from Russia, the CIS, Eastern Europe, Asia and other regions, who pursue various perspectives in the Economics, and Economic Sociology of Education, as well as Education Policy, and seek to understand how to contribute to social and economic development through education.
The main goal of Summer School, organized jointly by the World Bank and HSE Institute of Education, is to increase the knowledge
and skills of students and early-career researchers from various parts of the world
about the most urgent issues in education research and practice. The
Summer School will demonstrate recent advances in research and policy
expertise concerning the possible
role of education in dealing with major issues of global and national
socio-economic development such as economic stagnation, poverty,
inequity, increasing social tensions, etc.
During the Summer School, students and young researchers will also have the opportunity to discuss their individual research and
applied projects with leading experts in the field and during special sessions of group work.
The School Agenda will focus on:
The core challenges for education policy in the 21st century
Innovative tools in responding to challenges of social and economic development through education
New trends in the labor market and the key challenges for the education system
How to design, conduct and present research and applied research projects
The Summer School includes the following major
types of activities:
Keynote speeches by leading experts followed by discussion
Presentations by participants of their work followed by discussion
Group work, including brainstorming on various issues connected with research and practice in the areas related to participants’
projects
A new GLO Discussion Paperfinds that the child tax credit reform in Austria reduces inequality, lowers the poverty rate in general, but by definition only for households with 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.
Author Abstract: This paper analyses the impact of the implementation of a child tax credit in Austria in 2019, not only on micro, but also on macro level by using a dynamic scoring methodology. First, we assess the fiscal and distributional impact of this reform using the microsimulation model EUROMOD. Second, we estimate labour supply impacts of the reform based on a structural discrete choice framework. Third, we evaluate the macroeconomic impacts of the reform, by calibrating and shocking QUEST, the DSGE model of the European Commission, with the micro-based results for the implicit tax rate, the non-participation and the labour supply elasticities. We show that the child tax credit reform in Austria reduces inequality, lowers the poverty rate in general, but by definition only for households with children. Overall the reform has a positive impact on labour supply, both on the extensive and on the intensive margin, especially for women. On the macro-level (and in the long-run), our model suggests a positive impact on employment. Additionally, we find that parts of the tax decrease can be potentially captured by the employer, meaning that gross wages would fall slightly. However, we find small but positive effects on GDP, investment and consumption, although the long-run macroeconomic effects depend crucially on how the government compensates the missing tax revenues after the reform. Accounting for these feedback effects at the micro level with a new methodology, we show that the second round effects are important to take into account, because they provide insights into the medium-term distributional impact of the reform.
The GLO Discussion Paper of the Month of January shows that promoting access to credit and improving the property rights framework are vital for removing barriers to productive female entrepreneurship at a larger scale in countries such as Eswatini, Lesotho, and Zimbabwe. The paper makes a significant contribution to policy debates, suggesting that policy interventions aimed at removing obstacles to female land tenure and ownership could greatly benefit Southern African countries.
Author Abstract:Limited access to finance is one of the major barriers for women entrepreneurs in Africa. This
paper presents a model of start-ups in which firms’ sales and profits depend on their productivity
and access to credit. However, due to the lack of collateral assets such as land, female
entrepreneurs have more constrained access to credit than do men. Testing the model on data
from the World Bank Enterprise Surveys in Eswatini, Lesotho, and Zimbabwe, we find land
ownership to be important for female entrepreneurial performance in terms of sales levels. This
finding suggests that the small Southern African economies would benefit from removing
obstacles to women’s land tenure and enabling financial institutions to lend against movable
collateral. While land ownership is linked with higher sales levels, it seems less critical for sales
growth and innovation where access to short term loans for working capital seems to be key.
GLO DP Team Senior
Editors: Matloob Piracha (University of Kent) & GLO; Klaus F.
Zimmermann (UNU-MERIT, Maastricht University and Bonn University). Managing Editor: Magdalena Ulceluse, University of Groningen. DP@glabor.org
A new GLO Discussion Paperfinds that retirement increases the probability of migration strongly.
The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.
Author Abstract: We examine whether and how retirement affects migration decisions in China. Using a regression discontinuity (RD) design approach combined with a nationally representative sample of 228,855 adults aged between 40 and 75, we find that retirement increases the probability of migration by 12.9 percentage points. Approximately 38% of the total migration effects can be attributed to inter-temporal substitution (delayed migration). Retirement-induced migrants are lower-educated and have restricted access to social security. Household-level migration decisions can reconcile different migration responses across gender. Retirees migrate for risk sharing and family protection mechnisms, reducing market production of their families in the receiving households.
A new GLO Discussion Paperstudies the long-run growth effects of rising longevity and an increasing retirement age.
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 assess the long-run growth effects of rising longevity and increasing the retirement age when growth is driven by purposeful research and development. In contrast to economies in which growth depends on learning-by-doing spillovers, raising the retirement age fosters economic growth. How economic growth changes in response to rising life expectancy depends on the retirement response. Employing numerical analysis we find that the requirement for experiencing a growth stimulus from rising longevity is fulfilled for the United States, nearly met for the average OECD economy, but missed by the EU and by Japan.
A new GLO Discussion Paperreveals that the impact of exports on economic growth has been small but positive in 1850-2017 Spain.
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 analyse in this paper the relationship between international trade and economic growth from the point of view of one of the most traditional hypotheses within this field, namely, the export-led growth hypothesis, for the case of Spain in a long-term perspective of almost 170 years. Exports seem to have played a positive, though modest, role in promoting economic growth in the Spanish economy over the whole period, mostly due to the higher productivity associated with the export sector. The contribution of exports to growth, however, seems to have been stronger in the final years of the 19th century, unlike the rest of the period, where it proved to be very small.
A new GLO Discussion Paperreveals and investigates the channels of international migration from thePhilippines caused byweather shocks.
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 growing literature on environmental migration presents conflicting results. While some find that natural disasters induce international migration, others discover a dampening effect. We aim to reconcile these differences by using a comprehensive list of weather shocks from the Philippines, a country prone to natural disasters and a major exporter of labor. We constructed a longitudinal provincial dataset (2005–2015) from an assemblage of administrative and survey datasets and tested linear, quadratic, and lagged models. Our fixed-effects results are consistent with both strands in the literature with caveats. First, Filipinos are more likely to work abroad when they experience less-intense tropical cyclones and storm warning signal but are more likely to stay with a more damaging storm warning signal. Second, differential effects of weather shocks on international migration contingent on agriculture exists. Third, non-environmental factors such as economic (unemployment rate) and infrastructure (number of high schools) also push Filipinos abroad.
A new GLO Discussion Paperstudies the effectiveness of a government program to strengthen the public supply of early childhood educational services in Italy.
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: In 2007 the Italian central government started a program by transferring funds to regional governments to develop both private and public early childcare services. Exploiting the different timing of program implementation across regions, we evaluate its effectiveness in boosting the public supply of early childhood educational services. We find that the ratio between the available slots in public early childhood education and the population of those aged 0-2 increased by 17.2% three years after the start of the program, with respect to the pre-program level. The program impact was however limited in the South and mostly driven by the Center-North.
A new GLO Discussion Paperinvestigates the effects of dismissals of local governments in Italy suspected of Mafia infiltration.
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: Local governments suspected of Mafia infiltration can be dismissed in Italy through an administrative act not increasing formal deterrence but potentially signaling improved law enforcement among local communities. This paper finds that dismissals are associated to a persistent fall of petty crimes (e.g. thefts) but have no consequences on offenses more closely related to the activity of organized crime, as homicide, extortion, drug-trafficking or usury. Petty crimes are estimated to fall by around 10%, on average, a result that seems driven by the perception of enhanced deterrence (through media pressure, the signaling role of the policy, and other forms of social control) rather than induced by organized crime itself.
A new GLO Discussion Paperreveals thatland ownership is important for female entrepreneurial performance in Eswatini, Lesotho, and Zimbabwe.
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: Limited access to finance is one of the major barriers for women entrepreneurs in Africa. This paper presents a model of start-ups in which firms’ sales and profits depend on their productivity and access to credit. However, due to the lack of collateral assets such as land, female entrepreneurs have more constrained access to credit than do men. Testing the model on data from the World Bank Enterprise Surveys in Eswatini, Lesotho, and Zimbabwe, we find land ownership to be important for female entrepreneurial performance in terms of sales levels. This finding suggests that the small Southern African economies would benefit from removing obstacles to women’s land tenure and enabling financial institutions to lend against movable collateral. While land ownership is linked with higher sales levels, it seems less critical for sales growth and innovation where access to short term loans for working capital seems to be key.
A new GLO Discussion Paperreveals thatthe provision of extension services increases agricultural technology take-up in Uganda.
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: Why adoption rate of potentially profitable agricultural technologies in Africa remains low is still puzzling. This paper uses a randomized control trial to study Ugandan subsistence smallholders’ decisions to adopt cash crops. A unique way of eliciting farmers price and yield expectations allows us to investigate the role of farmers’ ex-ante beliefs about crop profitability on adoption decisions. We find that the provision of extension services increases oilseeds adoption by 15%, and farmers who under-estimate oilseeds price at baseline are the most likely to adopt the new crops. The results suggest that changes in expectations drive agricultural technology take-up.
A new GLO Discussion Paperreveals thatyounger and older workers in Egypt were less likely to be employed than their middle age peers after the reforms in the 1990s than before. Those seeking formal jobs were more likely to remain unemployed or inactive.
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 aims to study the evolution in the age composition of males’ employment in the aftermath of the public sector downsizing in the 1990s -during the Economic Reform and Structural Adjustment Policies – and the new labor law in 2003. This answers the question of whether young (15-29) and older (50-59) male workers were the most likely to bear the brunt of the 1990s reforms and the new labor law in 2003. Employment, formality and hours-of-work are simultaneously estimated by maximum likelihood to control for the self-selection, using three repeated cross sectional samples from Egyptian Datasets conducted in 1988, 1998 and 2006. Results show that men aged (15-29) and those aged (50-59) were less likely, as compared to their peers in middle age (30-49), to be employed in 1998 than in 1988 (before the first reform). While informality has affected all age groups, the 30 to 49 years old were the category that experienced the most rapid increase in informality as compared to the other two age groups. Findings also show evidence of negative correlation between the probability of employment and the probability of having a formal job, indicating that those who have more incidence to work in formal jobs are more likely to remain unemployed or inactive.
A new GLO Discussion Paperreveals that poor health conditions in childhood and unfavorable childhood and adolescent socioeconomic status as measured by educational attainment and neighborhood quality may increase the risk of late-life frailty among Chinese older adults .
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: Exposures in childhood and adolescence may impact the development of diseases and symptoms in late life. However, evidence from low- and middle- income countries is scarce. In this study, we examined the association of early life risk factors with frailty among older adults using a large, nationally representative cohort of community-dwelling Chinese sample. 6,806 participants aged ≥60 years from the China Health and Retirement Longitudinal Study were included. We measured 13 risk factors in childhood or adolescence through self-reports, encompassing six dimensions (education, family economic status, nutritional status, domestic violence, neighborhood, and health). We used multinomial regression models to examine the association between risk factors and frailty and further calculated the absolute risk difference for the statistically significant factors. Results show that worse health condition in childhood and unfavorable childhood and adolescent socioeconomic status as measured by educational attainment and neighborhood quality may increase the risk of late-life frailty among Chinese older adults. Severe starvation in childhood was associated with higher risk of prefrailty. The risk differences of being frail were 5.7% lower for persons with a high school or above education, 1.5% lower for those whose fathers were literate, 4.8% lower for the highest neighborhood quality, and 2.9% higher for worse childhood health status compared to their counterparts.
A new GLO Discussion Paperrevealsthat receiving a pension only slightly reduces collective recreational activities while significantly crowding out altruistic activities in the Chinese communities.
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: Grants and services provided by the government may crowd out informal arrangements, thus weakening informal caring relations and networks. In this paper, we examine the impact of social security expansion on neighborhood cohesion of elders using China’s New Rural Pension Scheme (NRPS), one of the largest existing pension program in the world. Since its launch in 2009, more than 400 million Chinese have enrolled in NRPS. We use two waves of China Health and Retirement Longitudinal Study (CHARLS) to examine the effect of pension receipt on two dimensions of neighborhood cohesion among older adults, i.e. participation in collective recreational activities (e.g., socializing and organizational activities) and altruistic activities (e.g., helping those in need in the community), and the frequencies of these activities. Employing an instrumental variable approach, our empirical strategy addresses the endogeneity of pension receipt via exploiting geographic variation in pension program roll-out. We find evidence that receiving pension only slightly reduces collective recreational activities while significantly crowding out altruistic activities in the communities.
A new GLO Discussion Paper finds a nonlinear (but positive) relationship between the length of sunlight and birth outcomes in China.
The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.
Author Abstract: This paper is one of the first to examine the associations between prenatal sunshine exposure and birth outcomes, specifically the incidence of low birth weight (LBW) and small for gestational age (SGA), based on a nationally representative birth record dataset in China. During the sample period in the 1990s, migration was limited in rural China, allowing us to address the identification challenges, like residential sorting and avoidance behaviors. We found a nonlinear relationship between the length of sunlight and birth outcomes. In particular, prenatal exposure to increasing sunshine was associated with a reduction in the incidence of LBW and SGA, especially in the second trimester during pregnancy. This finding was consistent with the clinical evidence suggesting positive effects of sunshine on birth outcomes via obtaining vitamin D or relieving maternal stress.
A new GLO Discussion Paperreveals a significant dependence of health inequality in old age of Chinese adults on childhood circumstances and identifies particular patterns.
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 examines the extent to which childhood circumstances contribute to health inequality in old age and how the contributions may vary across key dimensions of health. We link the China Health and Retirement Longitudinal Study (CHARLS) in 2013 and 2015 with its Life History Survey in 2014 to quantify health inequality due to childhood circumstances for which they have little control. We evaluate comprehensive dimensions of health ranging from cognitive health, mental health, physical health, self-rated health to mortality. Our analytic sample includes about 8,000 Chinese persons age above 60. Using the Shapley value decomposition approach, we first show that childhood circumstances may explain 1-23 percent of health inequality in old age across multiple health outcomes. Second, while both direct health-related circumstances and indirect health-related circumstances contribute significantly to health inequality, the latter tends to be more sizable. Our findings support the value of a life course approach in identifying the key determinants of health in old age.
A new GLO Discussion Paperreveals that given first names of leaders from World War II can predict behavior in the 1991-1995 Croatian war of independence and beyond.
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 implement a novel empirical strategy for measuring and studying a strong form of nationalism – the willingness to fight and die in a war for national independence – using name choices corresponding to previous war leaders. Based on data on almost half a million soldiers, we first show that having been given a first name that is synonymous with the leader(s) of the Croatian state during World War II predicts volunteering for service in the 1991-1995 Croatian war of independence and dying during the conflict. Next, we use the universe of Croatian birth certificates and the information about nationalism conveyed by first names to suggests that in ex-Yugoslav Croatia, nationalism was on a continuous rise starting in the 1970s and that its rise was curbed in areas where concentration camps were located during WWII. Our evidence on intergenerational transmission of nationalism is consistent with nationalist fathers purposefully reflecting the trade-o¤ between within-family and society-wide transmission channels of political values. We also link the nationalist values we proxy using first name choices to right-wing voting behavior in 2015, 20 years after the war.
A new GLO Discussion Paper reveals that, among other insights, R&D has overall negligible effects on the probability of workers to become self-employed; it increases the probability of moving from unemployment to paid employment, especially in routinized areas, and reduces the permeability between routinized and non-routinized 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.
Author Abstract: The paper adds to the literature on innovation and employment by looking at the relationship between R&D investments and the rise of alternative work arrangements, particularly self-employment (SE). A literature review on the determinants of the emergence of non-standard work, alternative work arrangements and self-employment if offered first. The contributions that have looked at SE in relation to innovation strategies is surprisingly limited. General trends of SE in Europe are considered. The empirical contribution is focused on the analysis of local labor markets in the UK (Travel-To-Work-Areas, TTWAs), where their initial concentration of routinized and non-routinized jobs is considered. The probability that an individual shifts from paid employment to either unemployment or self-employment over the period 2001-13, as linked to changes in R&D investments in the TTWA is empirically accounted for. Results show that overall R&D has negligible effects on the probability of workers to become self-employed. R&D increases the probability of moving from unemployment to paid employment, especially in routinized areas, and reduces the permeability between routinized and non-routinized workers. Also, a non-negligible increase in the probability that a routinized worker becomes SE as a result of R&D increase is found in low routinized local labor markets, but not in highly routinized areas. The paper sheds new lights on the effect of R&D on employment and self-employment in areas with different degrees of routinization, and adds to the discussion on the more general raise of alternative work arrangements in Europe by disentangling the characteristics of self-employment as resulting from R&D investments.
A new GLO Discussion Paperreveals that firms in China share rents with their workers, although at a smaller level than in developed economies.
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: Do firms in China share rents with their workers? We address this question by examining firm-level panel data covering virtually all manufacturing firms over the period 2000-2007, representing an average of 52 million workers per year. We find evidence of rent sharing (RS), with wage-profit elasticities of between 4% and 6%. These results are based on multiple instrumental variables, including firm-specific international trade shocks. We also present a number of complementary findings to understand better the nature of RS in the country: it involves an element of risk sharing, as wages also decrease when profits fall; RS is lower in regions with more latent competition from rural workers; higher minimum wages tend to reduce RS; and, while employer labor market power reduces wages, it increases RS. Overall, despite its importance, RS in China is smaller and more symmetric than in developed economies, which reflects the weaker bargaining power of its workers and the different nature of its labor market institutions.
A new GLO Discussion Paper simulates an increase of public spending in health care and social assistance in the Chinese economy and examines the effects on seven regions of the world economy: China, Japan, the United States, the European Union, Latin America, Asia‐Pacific and the Rest of the World.
The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.
Author Abstract: In this paper, we simulate the effects of an increase in the levels of public spending in health care and social assistance in the Chinese economy, and examine its global effects, i.e., the effects on the main macroeconomic variables of seven regions of the world economy, namely, China, Japan, United States, European Union, Latin America, Asia‐Pacific and Rest of the World. Three different rules to finance the increase in public expenditure are considered. The empirical methodology makes use of a computable general equilibrium model, through an extension of the Global Trade Analysis Project model. The policy measure simulated led to either expansionary or contractionary effects on China’s activity levels, depending on whether the government deficit is left to increase, or if taxes are raised instead in order to offset it. While no sector seemed to be particularly hurt by this measure, trade flows were negatively affected, but this did not seem to have a strong influence on the rest of the world.
A new GLO Discussion Paperprovides a complete outlook about return, repeat, circular and onward migration; it reveals the new norm of joint decision-making by the family as a unit and underlines the importance of non-economic reasons for return.
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 chapter undertook the monumental task of providing a complete outlook about return, repeat, circular and onward migration by bringing together the perspectives of the host and the home country. In this endeavor, it reviewed and evaluated all theories about why people move, when they circulate, where they go, who are the people who migrate, who are the people who return, and how they change the economic and social structures in the home country. In the process, it revealed the new norm of joint decision-making by the family as a unit and underlined the importance of non-economic reasons for return. The chapter further provided a state-of-the-art literature review about empirical evidence regarding the disparate phenomena of return, circular and onward migration. It emphasized commonalities and compared differences in findings, while connecting them to the theories, policies and institutions. Return, repeat, and circular migrants are self-selected and extremely heterogeneous people and cannot conform under one theory or empirical study. Their de facto migration comportment can be understood by several different theories and, in the absence of good data, it can be explained by a variety of studies. The chapter ends with a critical conclusion and hope to inspire new avenues of research on the topic.
A new GLO Discussion Paperreveals thatRussia has similar migration flows than the US and the EU, but they imply rather divergence than convergence across regions.
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 aims to assess the role of migration as an adjustment mechanism device to favor convergence across states and regions of Russia. In contrast to previous studies, we use variations in the population of a region as a proxy of its net migration rate and apply spatial econometric methodology in order to distinguish the effect from the neighbouring regions. We provide descriptive statistical evidence showing that Russia has more/less/the same intense migration flows than the USA and EU. The econometric analysis shows that migration flows are sensitive to both regional income and regional unemployment differentials. Nonetheless, we find that internal migration is sensitive to regional unemployment and income differentials of neighbouring regions. Dependent on the welfare, pre- or after-crisis period, income in neighbouring regions can create out- or in-migration flows. The relatively high degree of internal mobility coupled with the low sensitivity of migration flows to the local unemployment rate of distant regions might explain why migration flows tends not to generate convergence, but rather divergence across Russian regions.
A new GLO Discussion Paperreveals a significant dependence of current financial institutions in Africa on the legal origin and the colonization type.
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 links banking systems development to the colonial and legal history of African countries. Specifically, we investigate the impact of differing legal traditions on the development of existing investor and creditor protection, and on African banking systems. Based on a sample of 40 African countries from 2000 to 2016, our empirical findings show a significant dependence of current financial institutions on the legal origin and the colonization type. Findings also reveal that current legal financial institutions are not the major determinants of banking system development, whereas institutional and regulatory quality significantly matter for banking system development in both common and civil law countries. Strong creditor rights reduce the cost of banking in African countries.
A new GLO Discussion Paperpresentsevidence that reshoring in the age of automationis positively associated with wages and employment for high-skilled labor but not for low-skilled labor.
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 propose a theoretical framework to analyze the offshoring and reshoring decisions of firms in the age of automation. Our theory suggests that increasing productivity in automation leads to a relocation of previously offshored production back to the home economy but without improving low-skilled wages and without creating jobs for low-skilled workers. Since it leads also to increasing wages for high-skilled workers, automation-induced reshoring is associated with an increasing skill premium and increasing inequality. We develop a measure for reshoring activity at the macro-level and, using data from the world input output table, we provide evidence for automation-driven reshoring. On average, within manufacturing sectors, an increase by one robot per 1000 workers is associated with a 3.5% increase of reshoring activity. Using robots in countries with similar sectoral structure as an instrument, we find that an increase by one robot per 1000 workers causes a 2.5% increase of reshoring activity. We also provide the first cross-country evidence that reshoring is positively associated with wages and employment for high-skilled labor but not for low-skilled labor and that tariffs increase the degree of reshoring.
A new GLO Discussion Paper finds that the demand-pull effect on firms’ growth is heterogeneous across different types of demand sources and that success depends on firms’ specific knowledge profiles.
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 present paper explores the demand-pull effect of distinct demand sources (i.e. households and retailers, other firms and public sector) on Italian companies’ growth patterns. Data relies on the PEC (Indagine sulle Professioni e le Competenze) survey carried out by the Institute for Public Policy Analysis (INAPP), which provides a rich set of information on a representative sample of Italian companies (~32.000) observed during the years 2012, 2014 and 2017. In particular, we investigate if and to what extent firm-level growth profiles are linked to the prevalent source of the demand flows that such firms face. The analysis contextually accounts for the role played by technological and knowledge-related heterogeneities in shaping the growth pattern-demand type relationship. The empirical analysis shows that the demand-pull effect on firms’ growth is heterogeneous across different types of demand sources and that the ability to seize the growth-related chances provided by distinct demand conditions is contingent on firms’ specific knowledge profiles.
A new GLO Discussion Paperinvestigates the evolution of livelihood diversification in Egypt with a particular focus on wealth and urban-rural divides.
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: Livelihood diversification is attracting considerable interest as a tool to cope with economic shocks and resist vulnerability. This paper investigates the evolution of livelihood diversification in Egypt with a particular focus on wealth and urban-rural divides. Using Egypt Labor Market Panel data from 2006 to 2018, I find that rural households have a more diversified livelihood portfolio, yet they diversified away from farming over time. Poor rural households remained dependent on informal livelihood strategies due to the high entry barriers to formal employment. Urban households had significantly less livelihood diversification than rural households. Wealthy households in urban areas tended to depend on relatively more specialized livelihood clusters which were stable over time. These findings imply that distress is a potential reason for diversification in urban areas.
A new GLO Discussion Paperfinds that benefits do not necessarily reach the poor and vulnerable households at the regional level.
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: Tunisian social programs provide direct transfers and free or reduced rate access to public health care for families selected by local and regional commissions. In some areas, poor and vulnerable families are excluded from these programs whose places are occupied by other households. The center is often ill-informed about the performance of different regions in reaching the poor and about the exclusion and inclusion errors sources. This lack of information can severely limit the options for designing reforms that will improve targeting performance. In a nutshell : Two components of social safety nets in Tunisia: one covers more, and the other is more generous. The regional commissions often select households headed by women widowed and elderly as beneficiaries. At the regional level, some beneficiaries are not eligible, and the eligible are not beneficiaries. The inclusion of the non-poor and the exclusion of the poor at the regional level are due to disagreement between eligibility criteria and a person’s poverty status.
A new GLO Discussion Paperpresents cross-country evidence that agricultural credits have a positive impact on agricultural productivity.
The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.
Author Abstract: We present cross-country evidence suggesting that agricultural credits have a positive impact on agricultural productivity. In particular, we find that doubling agricultural credits generates around 4-5 percent increase in agricultural productivity. We use two different agricultural production measures: (i) the agricultural component of GDP and (ii) agricultural labor productivity. Employing a combination of panel-data and instrumental- variable methods, we show that agricultural credits operate mostly on the agricultural component of GDP in developing countries and agricultural labor productivity in developed countries. This suggests that the nature of the relationship between agricultural finance and agricultural output changes along the development path. We conjecture that development of the agricultural finance system generates entry into the agricultural labor market, which pushes up the agricultural component of GDP and keeps down agricultural labor productivity in developing countries; while, in developed countries, it leads to labor-augmenting increase in agricultural production. We argue that replacement of the informal credit channel with formal and advanced agricultural credit markets along the development path is the main force driving the labor market response.
A new GLO Discussion Paperfinds that smartphone use reduces student success.
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: To study the causal impact of smartphone use on academic performance, we collected—for the first time worldwide—longitudinal data on students’ smartphone use and educational performance. For three consecutive years we surveyed all students attending classes in eleven different study programs at two Belgian universities on general smartphone use and other drivers of academic achievement. These survey data were merged with the exam scores of these students. We analyzed the resulting data by means of panel data random effects estimation controlling for unobserved individual characteristics. A one standard deviation increase in overall smartphone use results in a decrease of 0.349 points (out of 20) and a decrease of 2.616 percentage points in the fraction of exams passed.
A new GLO Discussion Paperfinds that employees with a temporary contract experience more loneliness at work as opposed to employees with a permanent contract. It also reveals that loneliness at work mediates the association between working temporarily and job 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.
Author Abstract: This research contributes to the limited literature concerning the determinants of loneliness at work, as well as to the literature on psychological outcomes associated with temporary work. More specifically, we are adding to the literature by exploring whether there is an association between working temporarily and loneliness at work and whether loneliness at work partly explains the association between working temporarily and job satisfaction. To this end, we analyze—by means of a mediation model—a unique sample of Flemish employees in the private sector. We find that employees with a temporary contract experience more loneliness at work as opposed to employees with a permanent contract. In addition, we discover that loneliness at work mediates the association between working temporarily and job satisfaction.
A new GLO Discussion Paperfinds that the return rate to the labor market is between 50% and two thirds whereas survivors are experiencing lower work abilities and discrimination.
The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.
Author Abstract: Objectives: To synthesise the existing reviews conducted on the labour market outcomes of cancer survivors by focusing on (i) the convergences and divergences on the overall work-related outcomes, (ii) the moderating factors studied to date, and (iii) an identification of areas where more research is needed in the future. Methods: A systematic review of the existing reviews on labour market outcomes for cancer survivors was performed. Bibliographic search for eligible studies published before January 2019 involved the following three core concepts: (i) cancer survivors, (ii) work, and (iii) review. The quality of the included reviews was assessed based on the Johns Hopkins Hospital Evidence Level and Quality Guide. Following this, a narrative synthesis of the findings was completed. Results: In total, 35 articles met the inclusion criteria. The average return to work (RTW) rate varied between 54% and 66%. The self-reported work ability was consistently lower following cancer. This review also found strong converging evidence of self-reported discrimination after cancer. The effects on work performance showed several inconsistencies, possibly due to the use of different definitions of work performance. Most moderating factors for successful work outcomes showed converging evidence, except for age, marital status, cancer type, and country. We provide several possible explanations and linkages for these divergencies. Conclusions: Further investigation of causal relationships by (i) using matched control groups and by (ii) gathering longitudinal data, and the use of more standardised definitions of the outcome variables are the two main future research recommendations. Furthermore, no studies have succeeded in measuring the work outcomes objectively. We provide specific recommendations from an interdisciplinary context to solve this.
A new GLO Discussion Paperfinds that same-sex marriage legalization permanently increased the migration flow of homosexuals moving to more tolerant states in the United States.
The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.
Author Abstract: The aim of this paper is to analyze the impact of marriage regulation on the migratory behavior of individuals using the history of the liberalization of same-sex marriage across the United States. Because the approval of same-sex marriage allows homosexuals access to legal rights and social benefits, marriage becomes more attractive relative to singlehood or other forms of partnership. The differences in the value of other forms of relationship status relative to marriage can affect the migration decisions of individuals, to the extent that those states approving same-sex marriage can be considered less discriminatory. Results show that that legal reform permanently increased the migration flow of homosexuals moving to tolerant states (i.e., those that have legalized same-sex marriage). The physical distance among states does not appear to be driving our estimates since the migration flow of homosexuals is not limited to border or close states. Supplemental analysis, developed to explore whether the migration flow is translated to a significant effect to the stock of homosexuals by state, suggests that that stock increased after the approval of same-sex marriage but that it was transitory, pointing to a ‘no effect’ on the spatial distribution of homosexuals as times went by. The liberalization of marriage for homosexuals also has an effect on the migration behavior of those individuals originating from countries in which same-sex sexual activity is illegal, for whom we observe an outflow migration from those states with same sex marriage, pointing to dissimilarities in cultural aspects related to homosexuality as important factors in migration decisions.
In 2019, Dejan Kovač, GLO fellow and a former postdoc at Princeton University, left his position in the US and joined the presidential race in Croatia as a candidate. He did not become the president of Croatia, but in his campaign he highlighted the need for structural reforms, promoted civic and economic freedoms, and most importantly attacked corruption relying on his previous research experience.
Besides his research on corruption, Dejan Kovač is taking another promising research endeavor – rethinking the design of Croatia’s labor market to increase its global competitiveness.
In 2017, the Global Labor Organization (GLO) had supported a large international conferenceDejan Kovač had organized in Umag to debate the challenges of the global world for labor markets. The event was hosting some of the best labor economists of our time, including the former chief economist to president Obama, the late Alan Krueger, a legendary figure and GLO Fellow (see picture below).
Interview
GLO: The scientist and politics: How has the presidential campaign changed you?
Dejan Kovač: Before the campaign I was an economist, during the campaign I remained an economist, and after the campaign I am still an economist.
GLO: Was knowledge of economics and of scientific evidence helpful for you during the race?
Dejan Kovač: Not really. Presidential races in Croatia historically have a problem. This is not a competition about the better program, but rather about to what part of the political spectrum one belongs. I was not able to push any economics topic, because we are still trapped by tales from our history and historical revisionism. It is very unfortunate that there is so little voters’ awareness about the importance of particular topics. Especially because Croatia “lost” close to 10% of its population through emigration due to several main issues: high corruption, bad economic conditions and lack of structural reforms.
GLO: Is emigration the main motivation for your newly started project “Designing Croatia’s labor market for global competitiveness” or are there other important issues at play?
Dejan Kovač: The 10% loss of population is a great shock to our economy. One does not have to have a PhD in economics to realize that this will have a detrimental effect on GDP. A larger problem than size is the issue of “brain drain” not only in Croatia, but in the entire region. High-skilled workers are leaving and they would otherwise contribute the most to economic growth. Another problem of our labor market is that the entire education system is not adequate to satisfy domestic labor market needs and especially global trends.
GLO: What is wrong with Croatia’s education system?
Dejan Kovač: Quotas are such that we are “over-producing” some occupations, which we realistically do not need, while we lack for instance STEM workers, who are “under-supplied”. This is still a residue from our past, when both skills and quantities were defined through central planning. Today not only domestic, but also global market forces are at play. Nevertheless, we have a rigid set of quotas for higher education which has not changed in a reasonable manner in decades. That is the first step to take. It is not an easy task, because redesigning the entire education system implies evaluating labor demand and supply in the future. For this we need the entire Croatia, not just a government which represents one part of the political spectrum only. Either policy makers will realize that and do the urgent structural reforms, or with the next wave of emigrations, our problems will intensify significantly.
GLO: What are decisive elements of the needed university reform and how does this relate to the vitalization of the labor market?
Dejan Kovač: Beyond quotas, we need to raise the skill levels of our workers in such a way that knowledge learned at our universities is up to date with the frontier of innovations at the labor market. We lack “intermediaries” such as incubators who can “translate” knowledge from pure theory to applied science which can be used at the labor market. Also we need to revise the entire curriculum at most universities.
*** With Dejan Kovač spoke Klaus F. Zimmermann, GLO President.
From the left: GLO FellowsJoshua Angrist (MIT), Hank Farber (Princeton University) and Alan Krueger (Princeton University and former Chief Economist of President Obama); 2017 in Umea/Croatia.
A new GLO Discussion Paperfinds that older age signals to recruiters that applicants have lower technological skill, flexibility, and trainability levels.The relevance of these factors decline with higher levels of older workers in the company.
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: Research has shown that hiring discrimination is a barrier for older job candidates in many OECD countries. However, little research has delved into why older job candidates are discriminated against. Therefore, we have conducted an online scenario experiment involving recruiters to empirically investigate 15 potential stigma related to older age drawn from a systematic review of the literature. We found that older age particularly signals to recruiters that the applicant has lower technological skill, flexibility, and trainability levels. Together, these perceptions explain about 41% of the effect of age on the probability of being invited to a job interview. In addition, we found that the negative association between age and invitation probability is smaller when recruiters work for firms with a higher percentage of older employees.
A new GLO Discussion Paperreveals a tremendous increase in AI patenting activities since 2013 with a significant boom in 2015-2016. While most of AI patenting activities remain concentrated in the sectors of software programing and manufacturing of electronic equipment and machinery, there are clear signs of cross-fertilization towards non-tech sectors.
The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.
GLO Fellows Vincent Van Roy, Daniel Vertesy & Giacomo Damioli
Author Abstract: Economic activities based on the invention, production and distribution of artificial intelligence (AI) technologies have recently emerged worldwide. Yet, little is known about the innovative activities, location and growth performance of AI innovators. This chapter aims to map and analyse the global innovative landscape of AI by exploring 155,000 patents identified as AI-related by means of text-mining techniques. It highlights the emergence and evolution of AI technologies and identifies AI hotspots across the world. It explores the scale and pervasiveness of AI activities across sectors, and evaluates the economic performance of AI innovators using firm accounting information. Finally, it assesses recent trends in venture capital investments towards AI as financial support to promising AI startups. Findings of this chapter reveal a tremendous increase in AI patenting activities since 2013 with a significant boom in 2015-2016. While most of AI patenting activities remain concentrated in the sectors of software programming and manufacturing of electronic equipment and machinery, there are clear signs of cross-fertilisation towards non-tech sectors. The market of AI patenting firms is very vibrant and characterised by a large increase of new and small players with economic performances above industry average. This trend is also reflected by the recent increase in venture capital towards AI startups.
A new GLO Discussion Paperfinds that bribing for public services worsens self-assessed healthusing individual-level data from 28 post-communist countries.
The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.
Author Abstract: Corruption is pervasive, but we know little about its effects on individual lives. This paper examines whether living in a corrupt society has deleterious effects on health. Using individual-level data from 28 post-communist countries, we demonstrate that bribing for public services worsens self-assessed health. Unlike other studies, we account for endogeneity of bribery and show that bribing for any type of public service, not just for health services, has an adverse impact. We also find that bribery lowers the quality of services received. Moreover, there are potentially high indirect costs of bribery since, as we show, it comes at the expense of cutting food consumption. These findings suggest that corruption is a potentially important source behind the poor health outcomes in many developing countries.
A new GLO Discussion Paperanalyzes the role of networks in the access of female entrepreneurs to start-up capital and firm performance in Eswatini, a country with one of the highest female unemployment rates in Africa.Women who receive support from professional networks have higher initial capital.
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 analyzes the role of networks in the access of female entrepreneurs to start-up capital and firm performance in Eswatini, a country with one of the highest female unemployment rates in Africa. The paper first shows that higher initial capital is associated with better sales performance for both men and women entrepreneurs. Women entrepreneurs start their firms with smaller start-up capital than men and are more likely to fund it from their own sources, which reduces the size of their firm and sales level. However, women with higher education start their firms with more capital than their less educated counterparts. Moreover, women who receive support from professional networks have higher initial capital, while those trained in financial literacy more often access external funding sources, including through their networks.
Note that due to the numerous requests received to extend the call for papers, the deadline had been changed to 15 January 2020. Notification to authors is 15 February 2020. Those who still want to submit papers should consult the IEA conference website: www.ieawc2020.org
GLO is an Strategic Partner for The 3rd International Conference on Future Education 2020 to be held in 22nd – 23rd June 2020 in Kuala Lumpur, Malaysia. Niaz Asadullah of the University of Malaya and the GLO Lead for South-East Asia is a keynote speaker at the conference.
As the strategic partner, members of GLO receive special discount rates and partial scholarship opportunities. They also have the possibility to (i) publish in SCOPUS indexed journals, (ii) serve as a Scientific Committee Member for the conference, and (iii) serve as a Session Chair or Evaluation Panel Member of the conference.
For any inquires or questions regarding the conference please contact Austin Joseph (austin@tiikm.com).
The GLO Discussion Paper of the Month of December uses longitudinal data to investigate the relationship between smartphone use and academic performance in universities. It suggests that smartphone use has a causal negative effect on academic performance. The paper makes a significant contribution to current policy debates around the world, on whether smartphones should be banned from schools.
Author Abstract:To study the causal impact of smartphone use on academic performance, we collected—for the first time worldwide—longitudinal data on students’ smartphone use and educational performance. For three consecutive years we surveyed all students attending classes in eleven different study programs at two Belgian universities on general smartphone use and other drivers of academic achievement. These survey data were merged with the exam scores of these students. We analyzed the resulting data by means of panel data random effects estimation controlling for unobserved individual characteristics. A one standard deviation increase in overall smartphone use results in a decrease of 0.349 points (out of 20) and a decrease of 2.616 percentage points in the fraction of exams passed.
GLO DP Team Senior
Editors: Matloob Piracha (University of Kent) & GLO; Klaus F.
Zimmermann (UNU-MERIT, Maastricht University and Bonn University). Managing Editor: Magdalena Ulceluse, University of Groningen. DP@glabor.org
The GLO Discussion Paper of the Month of November 2019 explores the implications of post-communist party membership on the ethics and the nature of doing business in transition economies.It is found that former communist party members often become successful entrepreneurs. The Discussion Paper is the first study separating the causal effect of former communist party membership from self-selection.
Author Abstract:After
the collapse of Communism in Central and Eastern Europe, former party
members were particularly likely to start businesses and become
entrepreneurs. However, it remains unclear whether this entrepreneurial
activity was driven by the resources, information and opportunities
provided by former party membership or because people with specific
individual attributes were more likely to become party members
(self-selection). This study is the first to separate the causal effect
of former Communist party membership from self-selection. Using
individual-level Life in Transition–III survey and instrumental
variables analysis, we find that, in Central and Eastern European
countries, membership of former Communist party has facilitated business
set-up but not business longevity. Our results also suggest evidence of
negative self-selection, meaning that people who joined the former
ruling party tended have fewer of the traits associated with
entrepreneurship such as motivation, risk tolerance, and entrepreneurial
spirit. We show that former Communist party membership still matters
for business practices, business ethics, and the nature of doing
business in transition economies.
GLO DP Team Senior
Editors: Matloob Piracha (University of Kent) & GLO; Klaus F.
Zimmermann (UNU-MERIT, Maastricht University and Bonn University). Managing Editor: Magdalena Ulceluse, University of Groningen. DP@glabor.org
On January 3, the Kuznets Prize of the Journal of Population Economics was givento Gautam Hazarika, Chandan KumarJha, and Sudipta Sarangi at the IESR/Jinan University reception with Jim Heckman, Klaus F. Zimmermann and Shuaizhang Feng:
Award and event details. Prize paper: Ancestral ecological endowments and missing women (Please click title for FREE READ LINK) Published in the Journal of Population Economics (2019), 32(4), pp. 1101-1123. The annual prize honors the best article published in the Journal of Population Economics.
1. Paper examines the relationship between ecological endowments in antiquity and contemporary female to male sex ratios in the population. 2. It finds robust evidence that there are proportionately more missing women in countries whose ancestral ecological endowments were poorer. 3. Gender inequality is larger, that is, the female to male sex ratio lower, in regions whose peoples’ ancestors experienced greater resource stress captured by historical crop yields measures. 4. A conclusion is that ecological resource scarcity led to gender inequality in the intra-household allocation of resources in the past and that the associated behaviors have been culturally transmitted to the present as norms.
Shuaizhang Feng (Dean of IESR) introduced IESR and gave a warm welcome to the participants. Klaus F. Zimmermann introduced the Kuznets Prize, the award article and the authors. Jim Heckman congratulated the authors and the responsible organizations for the success and presented the award certificates. Chandan KumarJha and Sudipta Sarangi took the honors for all three authors and received the deserved applause of the large audience. Greetings went to author Gautam Hazarika and the responsible editor of the awarded article, Alessandro Cigno, who both could not be in San Diego.
Since 2019, Shuaizhang Feng is also an Editor of the Journal of Population Economics, Jim Heckman has been an Associate Editor for decades, while Klaus F. Zimmermann is the Founder and Editor-in-Chief. Heckman and Zimmermann supported IESR from the beginning. GLO is proud to note that all authors have joined the organization as Fellows, as Cigno, Feng and Heckman.
IESR Dean Shuaizhang Feng(Jinan University), also an Editor of the Journal of Population Economics will open the event as the host. Editor-in-Chief and GLO President Klaus F. Zimmermann will introduce the award; and Nobel Prize Winner Jim Heckman (University of Chicago), also an Associate Editor of the Journal, will present the award certificates to the three authors.
The article: Gautam Hazarika, Chandan Kumar & Sudipta Sarangi: (please click title for FREE READ LINK) “Ancestral ecological endowments and missing women“ Journal of Population Economics, Vol. 32 (2019), Issue 4 (October), pp. 1101-1123.
The Center for China and Globalization (CCG) has joined the institutions supporting the Global Labor Organization (GLO). This was agreed during a recent visit of GLO President Klaus F. Zimmermann at CCG with CCG President Henry Wang. Wang, who is also a GLO Fellow,and Zimmermann have collaborated in the past over a long period. GLO will support the 2020 International Conference on Global Migration and Talent Mobility, CCG is organizing in Beijing on June 12-14, 2020 together with Metropolis China and Metropolis Asia. Zimmermann was the local organizer of the 2008 International Metropolis Conference in Bonn.
The Center for China and Globalization (CCG) is a leading Chinese non-government think tank based in Beijing. It is dedicated to the study of Chinese public policy and globalization. CCG’s research agenda centers on China’s growing role in the world, drawing from issues of global governance, global trade and investment, global migration, international relations, and other topics pertaining to regional and global development. CCG is a not-for-profit and non-governmental organization registered with the civil affairs system of Chinese authorities. It is independently funded by research grants and donations from private and corporate donors. For years, CCG has been ranked by the Think Tank and Civil Society Program (TTCSP) at University of Pennsylvania as one of the world’s top 50 independent think tanks.
Zimmermann with CCG President Henry Wang on December 12, 2019
Left: CCG-GLO collaboration discussions at the CCG headquarter on December 12, 2019 Right: Zimmermann speaking at the 2008 Metropolis conference in Bonn.