Category Archives: Article

Immigration restrictions lead to cultural separation across generations!

Issue 2019/1 of the Journal of Population Economics is published: Please see for the Table of Content: Volume 32, Issue 1, January 2019

The article in the new issue

Immigration restrictions and second-generation cultural assimilation: theory and quasi-experimental evidence

By Fausto Galli, Giuseppe Russo; pp. 23-51

Abstract

“We study the effects of immigration restrictions on the cultural assimilation of second-generation migrants. In our theoretical model, when mobility is free, individuals with a stronger taste for their native culture migrate temporarily. When immigration is restricted, however, these individuals are incentivized to relocate permanently. Permanent emigrants procreate in the destination country and convey their cultural traits to the second generation, who will therefore find assimilation harder. We test this prediction by using the 1973 immigration ban in Germany (Anwerbestopp) as a quasi-experiment. Since the ban only concerned immigrants from countries outside the European Economic Community, they act as a treatment group. According to our estimates, the Anwerbestopp has reduced the cultural assimilation of the second generation. This result demonstrated robustness to several checks. We conclude that restrictive immigration policies may have the unintended consequence of delaying the intergenerational process of cultural assimilation. “

Read further open access for a short period:

Yoo-Mi Chin & Nicholas Wilson, Disease risk and fertility: evidence from the HIV/AIDS pandemic, Journal of Population Economics, 31 (2018), 429–451.

Kuznets Prize Winner 2019.
The paper is freely downloadable for a short period. The Award Study shows that a rise in the disease risk increases the total fertility rate and the number of surviving children, a finding which has important policy implications.

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Migration fosters economic adjustment after shocks. European flexibility has increased.

Issue 2019/1 of the Journal of Population Economics is published: Please see for the Table of Content: Volume 32, Issue 1, January 2019

The Lead Article is about:
Migration as an adjustment mechanism in the crisis? A comparison of Europe and the United States 2006–2016

Authors: Julia Jauer, Thomas Liebig, John P. Martin, Patrick A. Puhani

Abstract

” We estimate whether migration can be an equilibrating force in the labour market by comparing pre- and post-crisis migration movements at the regional level in both Europe and the United States, and their association with asymmetric labour market shocks. Based on fixed-effects regressions using regional panel data, we find that Europe’s migratory response to unemployment shocks was almost identical to that recorded in the United States after the crisis. Our estimates suggest that, if all measured population changes in Europe were due to migration for employment purposes—i.e. an upper-bound estimate—up to about a quarter of the asymmetric labour market shock would be absorbed by migration within a year. However, in Europe and especially in the Eurozone, the reaction to a very large extent stems from migration of recent EU accession country citizens as well as of third-country nationals.”

Read also open access for a short period:

Yoo-Mi Chin & Nicholas Wilson, Disease risk and fertility: evidence from the HIV/AIDS pandemic, Journal of Population Economics, 31 (2018), 429–451.

Kuznets Prize Winner 2019.
The paper is freely downloadable for a short period. The Award Study shows that a rise in the disease risk increases the total fertility rate and the number of surviving children, a finding which has important policy implications.

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Kuznets Prize of the Journal of Population Economics given at the #ASSA2019 Reception of IESR in Atlanta.

The awarded study receiving the Kuznets Prize shows that a rise in the disease risk increases the total fertility rate and the number of surviving children. This has important policy implications.

The Kuznets Prize Paper of the Journal of Population Economics in a particular year is selected by the Editors of the Journal among the papers published in the previous year. Then the winners will be presented in a prize ceremony. This time, the winners remained confidential until January 4, 2019. The prize committee for the 2019 award consisted out of Alessandro Cigno, Erdal Tekin, Junsen Zhang and Klaus F. Zimmermann selecting from the 2018 published articles they were in charge of as acting Editors.

Dean Shuaizhang Feng, Head of the Institute for Economic and Social Research (IESR) of Jinan University, had invited the members of the Global Labor Organizations (GLO) and the Kuznets Prize Ceremony of the Journal of Population Economics as other ASSA 2019 participants to join the reception of the Institute. IESR and GLO are collaborating organizations, and Shuaizhang Feng is a GLO Fellow and Associate Editor of the Journal.

GLO President Zimmermann (UNU-MERIT & Maastricht University) and Editor-in-Chief of the Journal had visited Jinan University and IESR in March 2018 for a longer period and a GLO-IESR workshop. He had also presented the Journal in 2018 to various academic events in Beijing, Xiamen and Hongkong to strengthen the already strong contacts to the Chinese research community. A larger number of economists participated, including many Editorial Board Members of the Journal of Population Economics and Kuznets Prize winners of previous years.

Shuaizhang Feng reported about the activities of IESR and the hiring interviews at the ASSA job market and explained the attractive research climate at the Institute. He also warmly welcomed the affiliates of GLO and the Journal of Population Economics. Klaus F. Zimmermann congratulated Feng for the successful development of IESR and the strong research climate and the attractive working conditions he had observed while visiting the Institute in 2018 and met with the very many strong and ambitious researchers.

Zimmermann also welcomed the 2018 Kuznets Prize Winner, Le Wang (University of Oklahoma), who received the award together with Chunbei Wang (University of Oklahoma) for their article:

Knot yet: Minimum marriage age law, marriage delay, and earnings, Journal of Population Economics (2017), 30(3), pp. 771-804.

Both authors had studied and graduated at Jinan University before they came to the United States. Le Wang expressed his gratitude for receiving the Kuznets Prize and explained how it created visibility for his work.

Then the 2019 Kuznets Prize paper was announced. Studying the HIV/AIDS pandemic using national household survey data from 14 sub-Saharan African countries, it suggests that a rise in the disease risk increases the total fertility rate and the number of surviving children. This has important policy implications.

Yoo-Mi Chin & Nicholas Wilson, Disease risk and fertility: evidence from the HIV/AIDS pandemic, Journal of Population Economics, 31 (2018), 429–451.

Abstract: A fundamental question about human behavior is whether fertility responds to disease risk. The standard economic theory of household fertility decision-making generates ambiguous predictions, and the response has large implications for human welfare. We examine the fertility response to the HIV/AIDS pandemic using national household survey data from 14 sub-Saharan African countries. Instrumental variable (IV) estimates using distance to the origin of the pandemic suggest that HIV/AIDS has increased the total fertility rate (TFR) and the number of surviving children. These results rekindle the debate about the fertility response to disease risk, particularly the HIV/AIDS pandemic, and highlight the question of whether the HIV/AIDS pandemic has reduced GDP per capita.

Yoo-Mi Chin is an Assistant Professor of Economics at Baylor University with a Ph.D. from Brown University. She is also a Fellow of the Global Labor Organization (GLO). Most of her research focuses on the analysis of domestic violence. She has published her previous work in the Journal of Applied Statistics, the Journal of Health Economics, and World Development, among other outlets. Prior to joining Baylor University, she was an Assistant Professor at the Missouri University of Science & Technology.

Nicholas Wilson is a Fellow with the Office of Evaluation Sciences, an Associate Professor of Economics at Reed College and the Chair of the Department of Economics. He is also a Fellow of the Global Labor Organization (GLO). His research focuses on fundamental puzzles about human behavior in the context of health, development, and behavioral economics. Prior to joining Reed College, he was a Visiting Scholar at the University of California, Berkeley and an Assistant Professor of Economics at Williams College. He has published a larger number of papers in journals including the American Economic Review, Demography, Economics & Human Biology, Journal of Development Economics and Journal of Health Economics.

Yoo-Mi Chin was present at the ceremony and happily took the prize. The large crowd of participants congratulated the prize winners and networked intensively within the remaining reception time.

Yoo-Mi Chin & Nicholas Wilson

Yoo-Mi Chin & Klaus F. Zimmermann
Klaus F. Zimmermann & Shuaizhang Feng

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GLO Discussion Papers December 2018 & Discussion Paper of the Month

The discussion paper of the month examines the potentials multiple language skills have for employment and wages in a globalized world. The research finds in the context of an open and multilingual economy that language training improves employability, but the skills are not sufficiently rewarded by higher wages.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS, EconPapers). Complete list of all GLO DPs downloadable for free.

GLO Discussion Paper of the Month: December

Discussion Paper No. 289 Evaluation of Language Training Programs in Luxembourg using Principal StratificationDownload PDF
by Bia, Michela & Flores-Lagunes, Alfonso & Mercatanti, Andrea

GLO Fellow Alfonso Flores-Lagunes

Abstract: In a world increasingly globalized, multiple language skills can create more employment opportunities. Several countries include language training programs in active labor market programs for the unemployed. We analyze the effects of a language training program on the re-employment probability and hourly wages of the unemployed simultaneously, using high quality administrative data from Luxembourg. We address selection into training by exploiting the rich administrative information available, and account for the complication that wages are “truncated” by unemployment by adopting a principal stratification framework. Estimation is undertaken with a mixture model likelihood-based approach. To improve inference, we use the individual’s hours worked as a secondary outcome and a stochastic dominance assumption. These two features considerably ameliorate the multimodality problem commonly encountered in mixture models. We also conduct sensitivity analysis to assess the unconfoundedness assumption employed. Our results strongly suggest a positive effect (of up to 12.7 percent) of the language training programs on the re-employment probability, but no effects on wages for those who are observed employed regardless of training participation. It appears that, in the context of an open and multilingual economy, language training improve employability but the language skills acquired are not sufficiently rewarded to be reflected in higher wages.

GLO Discussion Papers of December 2018

Titles and free access/links to GLO Discussion Papers

289 Evaluation of Language Training Programs in Luxembourg using Principal StratificationDownload PDF
by Bia, Michela & Flores-Lagunes, Alfonso & Mercatanti, Andrea

288 Bounds on Average and Quantile Treatment Effects on Duration Outcomes under Censoring, Selection, and NoncomplianceDownload PDF
by Blanco, German & Chen, Xuan & Flores, Carlos A. & Flores-Lagunes, Alfonso

287 Anti-Migration as a Threat to Internationalization? A Review of the Migration-Internationalization LiteratureDownload PDF
by Hatzigeorgiou, Andreas & Lodefalk, Magnus

286 Some unpleasant consequences of testing at lengthDownload PDF
by Brunello, Giorgio & Crema, Angela & Rocco, Lorenzo

285 Does Money Relieve Depression? Evidence from Social Pension Expansions in ChinaDownload PDF
by Chen, Xi & Wang, Tianyu & Busch, Susan H.

284 Media Attention and Choice of Major: Evidence from Anti-Doctor Violence in ChinaDownload PDF
by Bo, Shiyu & Chen, Y. Joy & Song, Yan & Zhou, Sen

283 Elite School Designation and House Prices – Quasi-experimental Evidence from Beijing, ChinaDownload PDF
by Huang, Bin & He, Xiaoyan & Xu, Lei & Zhu, Yu

282 Commuting Patterns, the Spatial Distribution of Jobs and the Gender Pay Gap in the U.S.Download PDF
by Gutierrez, Federico H.

281 The Effect of Self-Employment on Income InequalityDownload PDF
by Schneck, Stefan

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

GLO Fellows Stijn Baert & Sunčica Vujić find that volunteering fosters employment

Caring seems to be at odds with the simple model of economic agents as understood by the wider societal audience. However, care taking is a more and more popular field in economic analysis. A recent study in the Journal of Population Economics, the leading academic outlet in the field of population economics, is now establishing a volunteering premium. This implies that not only people care, it also pays to care.

Both authors, Stijn Baert & Sunčica Vujić, are Fellows of the Global Labor Organization (GLO), an international organization that supports academic international exchange and the work of the Journal of Population Economics. The article was just published in the new issue of the Journal of Population Economics, , Volume 31, Issue 3, pp 819–836:

Does it pay to care? Volunteering and employment opportunities

Stijn Baert & Sunčica Vujić

» Abstract   » Full text HTML   » Full text PDF

https://doi.org/10.1007/s00148-017-0682-8

Abstract

The GLO Fellows have investigated whether volunteering has a causal effect on individual employment opportunities. A field experiment is conducted in which volunteering activities are randomly assigned to fictitious job applications sent to genuine vacancies in Belgium. They find that volunteers are 7.3 percentage points more likely to get a positive reaction to job applications. The volunteering premium is higher for females but invariant with respect to the number of engagements.

  • Baert: Ghent University, University of Antwerp, Université Catholique de Louvain, GLO and IZA, Ghent, Belgium

Stijn Baert

  • Vujić: University of Antwerp and University of Bath, Antwerp, Belgium, and GLO

Sunčica Vujić

Journal of Population Economics

Klaus F. Zimmermann; Editor-in-Chief, Journal of Population Economics; President, GLO. The Global Labor Organization (GLO) supports the Journal of Population Economics.

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New GLO Discussion Paper: Selective Labor Immigration Policies Matter in Canada

Europe is discussing how to improve the labor market performance of economic migrants and their integration chances. The Canadian immigration system is often seen as a model case. Is there an earnings benefit depending on the selection channel under the economic classe? In a new Discussion Paper of the Global Labor Organization (GLO), Casey Warman, Matthew D. Webb and Christopher Worswick provide strong empirical evidence that selection matters. Using Canadian data sources they find that relative to the Family Class, the Adult Arrivals in the Skilled Worker category have earnings that are 29% higher for men and 38% higher for women.  Child Arrival immigrants landing in the Skilled Worker Class have similar earnings advantages.

GLO Fellow Casey Warman is associated with the Department of Economics, Dalhousie University and NBER.

GLO Fellow Matthew D. Webb is associated with the Department of Economics, Carleton University

GLO Fellow Christopher Worswick is associated  with the Department of Economics, Carleton University and CReAM

Casey Warman, Matthew D. Webb & Christopher Worswick: Immigrant Category of Admission and the Earnings of Adults and Children: How far does the Apple Fall? GLO Discussion Paper No. 196.  FREE DOWNLOAD: Download PDF

ABSTRACT

Immigrants  in  many  Western  countries  have  experienced  poor  economic  outcomes. This has led to a lack of integration of child immigrants (the 1.5 generation) and the second generation in some countries.  However, in Canada, child immigrants and the second generation have on average integrated very well economically.  The study examines the importance of Canada’s admission classes to determine if there is an earnings benefit of the selection under the Economic Classes to:  (i) the Adult Arrival immigrants and (ii) the Child Arrival immigrants (1.5 generation) once old enough to enter the labor market.  The study employs unique administrative data on landing records matched with subsequent  income  tax  records  that  also  allows  for  the  linking  of  the  records  of  Adult Arrival parents and their Child Arrival children.  It is found that relative to the Family Class, the Adult Arrivals in the Skilled Worker category have earnings that are 29% higher for men and 38% higher for women.  These differences persist even after controlling for  detailed  personal  characteristics  such  as  education  and  language  fluency  at  21% for men and 27% for women. Child Arrival immigrants landing in the Skilled Worker Class have earnings advantages (as adults) over their Family Class counterparts of 17% for men and 21% for women.  These Child Arrival Skilled Worker advantages remain at 9% for men and 14% for women after controlling for child characteristics, the Principal Applicant parent’s characteristics and the parent’s subsequent income in Canada. (Abstract marginally adapted from the DP.)

The paper is forthcoming in the Journal of Population Economics. The responsible Editor has been Klaus F. Zimmermann.

The study is in line with earlier research on entry category effects of migrant’s labor market performance. For an analysis see a recent review paper:

Zimmermann, Klaus F., Refugee and Migrant Labor Market Integration: Europe in Need of a New Policy Agenda. Mimeo. Presented at the EUI Conference on the Integration of Migrants and Refugees, 29-30 September 2016 in Florence. Published in: Bauböck, R. and Tripkovic, M.,  The Integration of Migrants and Refugees.  An EUI Forum on Migration, Citizenship and Demography, European University Institute, Robert Schuman Centre for Advanced Studies, Florence 2017, pp. 88 – 100.

Titles and free access to all GLO Discussion Papers

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS, EconPapers).

Complete list of all GLO DPs downloadable for free.

Journal of Population Economics

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Does Foreign Aid Stop Refugee Flows? New Evidence for the Policy Debate From a New GLO Paper

In the recent heated public debates in Europe about how to control refugee flows to Europe, it is often argued that foreign aid should be helpful to moderate such migration. In a new Discussion Paper of the Global Labor Organization (GLO), Axel Dreher, Andreas Fuchs and Sarah Langlotz provide strong empirical evidence using global data sources to suggest that while exogenous aid encourages recipient governments to support the return of citizens, we find no evidence that aid reduces worldwide refugee outflows in the short term; however, the authors find effects in the very long run.

GLO Fellow Axel Dreher  is associated  with the Alfred-Weber-Institute for Economics, Heidelberg University; KOF Swiss Economic Institute; CEPR; Georg-August University Goettingen; and CESifo.

GLO Fellow Andreas Fuchs is associated with the Research Center for Distributional Conflict and Globalization & Alfred-Weber-Institute for Economics, Heidelberg University.

GLO Fellow Sarah Langlotz is associated  with the Alfred-Weber-Institute for Economics, Heidelberg University.

Axel Dreher, Andreas Fuchs & Sarah Langlotz: The Effects of Foreign Aid on Refugee Flows, GLO Discussion Paper No. 195.  FREE DOWNLOAD: Download PDF

ABSTRACT

This article is the first to systematically study whether foreign aid affects the net flows of refugees from recipient countries. Combining refugee data on 141 origin countries over the 1976-2013 period with bilateral Official Development Assistance data, we estimate the causal effects of a country’s aid receipts on both total refugee flows to the world and flows to donor countries. The interaction of donor-government fractionalization and a recipient country’s probability of receiving aid provides a powerful and excludable instrumental variable,when we control for country – and time-fixed effects that capture the levels of the interacted variables. Although our results suggest that exogenous aid induces recipient governments to encourage the return of their citizens, we find no evidence that aid reduces worldwide refugee outflows or flows to donor countries in the short term. However, we observe long-run effects after four three-year periods, which appear to be driven by lagged positive effects of aid on growth. (Abstract marginally adapted from the DP.)

The study is in line with earlier research on South-North refugee migration. As Rotte, Vogler and Zimmermann (1997) have shown in their econometric analysis using refugee migration data to Germany, the issue had been discussed before. Short-term measures would not work, a long-term perspective would be needed.

Ralph Rotte, Michael Vogler & Klaus F. Zimmermann (1997), South-North Refugee Migration: Lessons for Development Cooperation, Review of Development Economics, 1 (1), pp. 99-115. Access.

Abstract: Migration has become a major concern of European development policies. By improving socio-economic and political conditions through development cooperation, a reduction of South-North migration flows is envisaged. This new approach is examined by analyzing the causes of asylum migration from developing countries to Germany. The econometric findings suggest that support of democracy, economic development and trade will not reduce migration, at least not in the medium-run. However, restrictive legal measures work. Migration control by international development cooperation therefore seems to need a long-term perspective.

Titles and free access to all GLO Discussion Papers

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS, EconPapers).

Complete list of all GLO DPs downloadable for free.

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European Development Research Network publish special issue on Migration & Development: Research & Policy

A high-profile workshop organized by the European Development Research Network focused on how migration and migration policies can affect economic development and studied the policies that strengthen the benefits of migration for both sending and receiving countries. The event took place at Bonn University on December 5, 2016 under the leadership of Stephan Klasen (University of Goettingen), the President of the European Development Research Network.

The keynote speaker of the event had been Klaus F. Zimmermann (UNU-MERIT, Maastricht University and ZEF, Bonn University), who is also the President of the Global Labor Organization (GLO).

GLO Discussion Paper No. 70 Migration for Development: From Challenges to Opportunities – Download PDF

by Klaus F. Zimmermann

Background paper to the keynote presentations to the European Development Conference 2016 on “Migration and Development” at Bonn University, December 5, 2016, and to the 22. Eurasia Business and Economics Society (EBES) Conference, May 24-26, 2017 at Sapienza University of Rome.

The papers of this event have now been published in French and English in the Revue D’Économie Du Développement collecting also articles of GLO Fellows Hillel Rapoport (Paris School of Economics), Dean Yang (University of Michigan) and Tommaso Frattini (Milan University) and were discussed, among others, by GLO Fellows Toman Barsbai (Kiel Institute for the World Economy) and Melissa Siegel (Maastricht Graduate School of Governance and UNU-Merit). (See for more details below.)

 

 

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“Inter-generational cultural assimilation is hindered by immigration restrictions”

This is the conclusion of a new scientific study forthcoming in the Journal of Population Economics, the leading academic outlet in population economics. The Journal is supported by the Global Labor Organization (GLO).

Message: Inter-generational cultural assimilation is hindered by immigration restrictions.

Background

As migration research has shown, restricting free labor mobility leads to more migrants in the host country. People stay longer or forever and bring family. The 2014 article on Circular Migration by Klaus F. Zimmermann has reviewed this point providing evidence for Mexico and Germany. In the German context, the 1973 migration labor recruitment stop has lead to more migrants when the restrictions were binding.

In this tradition, a new scientific study forthcoming in the Journal of Population Economics investigates the impact of restrictions on cultural assimilation. If those migrants with a stronger affection to the culture of origin are more temporary, more of them stay even permanently, and restrictions may lead to a slower cultural assimilation into the host country, among them or even in the next generation. The new paper studies the impact on second-generation cultural assimilation in this context.

THE PAPER:

Immigration restrictions and second-generation cultural assimilation: theory and quasi-experimental evidence

by Fausto Galli & Giuseppe Russo

Fausto Galli is at the Dipartimento di Scienze Economiche e Statistiche, Universita’ di Salerno, Fisciano, Italy

GLO Fellow Giuseppe Russo is at the Dipartimento di Scienze Economiche e Statistiche, Universita’ di Salerno, Fisciano, Italy and at the Centre for Studies in Economics and Finance (CSEF), Napoli, Italy

Website Link. Accepted for publication, forthcoming in the Journal of Population Economics. Available online. https://doi.org/10.1007/s00148-018-0694-z

ABSTRACT

We study the effects of immigration restrictions on the cultural assimilation of second-generation migrants. In our theoretical model, when mobility is free, individuals with a stronger taste for their native culture migrate temporarily. When immigration is restricted, however, these individuals are incentivized to relocate permanently. Permanent emigrants procreate in the destination country and convey their cultural traits to the second generation, who will therefore find assimilation harder. We test this prediction by using the 1973 immigration ban in Germany (Anwerbestopp) as a quasi-experiment. Since the ban only concerned immigrants from countries outside the European Economic Community, they act as a treatment group. According to our estimates, the Anwerbestopp has reduced the cultural assimilation of the second generation. This result demonstrated robustness to several checks. We conclude that restrictive immigration policies may have the unintended consequence of delaying the intergenerational process of cultural assimilation.

The responsible editor has been Klaus F. Zimmermann.

Journal of Population Economics

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Eastern Orthodox believers are less happy and have less social capital, a new GLO study shows.

Relative to Catholics, Protestants and non-believers, those individuals of Eastern Orthodox religion seem to be less happy, have less social capital and prefer old ideas and safe jobs. In a new Discussion Paper of the Global Labor Organization (GLO), Simeon Djankov and Elena Nikolova provide strong empirical evidence using global data sources to suggest that this is support for the received Berdyaev hypothesis of communism as a successor of orthodoxy.

Simeon Djankov  is associated  with the London School of Economics and Political Science, UK and the Peter G. Peterson Institute for International Economics, USA.

GLO Fellow Elena Nikolova is associated with the Central European Labor Studies Institute, Slovakia, the Leibniz Institute for East and Southeast European Studies, Regensburg, Germany, and University College London.

Simeon Djankov & Elena Nikolova: Communism as the Unhappy Coming, GLO Discussion Paper No. 192FREE DOWNLOAD.

ABSTRACT

Eastern Orthodox believers are less happy compared to those of Catholic and Protestant faith using data covering more than 100 countries around the world. Consistent with the happiness results, the study also finds that relative to Catholics, Protestants and non-believers, those of Eastern Orthodox religion have less social capital and prefer old ideas and safe jobs. In addition, Orthodoxy is associated with left-leaning political preferences and stronger support for government involvement in the economy. Compared to non-believers and Orthodox adherents, Catholics and Protestants are less likely to agree that government ownership is a good, and Protestants are less likely to agree that getting rich can only happen at the expense of others. These differences in life satisfaction and other attitudes and values persisted despite the fact that communist elites sought to eradicate church-going in Eastern Europe, since communists maintained many aspects of Orthodox theology which were useful for the advancement of the communist doctrine. The findings are consistent with Berdyaev’s (1933, 1937) hypothesis of communism as a successor of Orthodoxy. (Abstract marginally adapted from the DP.)

Titles and free access to all GLO Discussion Papers

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS, EconPapers).

Complete list of all GLO DPs downloadable for free.

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A Full Employment Strategy for Europe: New GLO Discussion Paper of Ritzen & Zimmermann

Why not be more ambitious? Ritzen and Zimmermann suggest coordinated labor policies for a European full employment strategy.

Jo Ritzen is Professor of International Economics of Science, Technology and Higher Education, Maastricht University, UNU‐MERIT, Graduate School of Governance. Klaus F. Zimmermann is Professor, UNU‐MERIT, Maastricht University and Bonn University; President, Global Labor Organization (GLO) and Research Fellow, CEPR.

Since years, Ritzen and Zimmermann have discussed the development of the European labor markets as a core factor behind Euroscepticism, which has been seen as posing an existential threat to the European Union. Therefore, European labor policies need to become more ambitious to fight unemployment. In their new discussion paper, Ritzen and Zimmermann outline the challenges and perspectives of a full employment policy across Europe: “We need a full employment strategy for Europe!”

Jo Ritzen & Klaus F. Zimmermann: Towards a European Full Employment Policy, GLO Discussion Paper No. 191 FREE DOWNLOAD.

ABSTRACT

Full employment in the European Union member states is a challenge but feasible, also in downswings of the business cycle and during stages of increased robotization. It requires labor legislation that ensures flexibility and retraining, responsive labor sharing during the business cycle and to individual life cycle needs, government interventions to supply supplemental employment and revamping dual education. The future of work is better ensured with coordinated European full employment labor policies establishing fair work conditions based on long-run business strategies as well as a fair distribution of national income between labor and capital.

http://www.klausfzimmermann.de/wp/wp-content/uploads/2018/03/20180328_115952-2.jpg

Jo Ritzen (right) and Klaus F. Zimmermann at UNU-MERIT, Maastricht.

In 2017, Jo Ritzen has published a related book on: A Second Chance for Europe. Economic, Political and Legal Perspectives of the European Union, Springer Verlag Heidelberg.

Titles and free access to all GLO Discussion Papers

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS, EconPapers).

Complete list of all GLO DPs downloadable for free.

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GLO Discussion Paper of the month: How Adult Wellbeing is Affected by Family and Childhood & ALL MARCH GLO DP’s OPEN ACCESS

Titles and free access/links to GLO Discussion Papers

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS, EconPapers). Complete list of all GLO DPs downloadable for free.

Discussion Paper of the Month: March

Flèche, Sarah & Lekfuangfu, Warn N. & Clark, Andrew E. , The Long-Lasting Effects of Family and Childhood on Adult Wellbeing: Evidence from British Cohort Data, GLO Discussion Paper, No. 184, March 2018. Free download.

Abstract: To what extent do childhood experiences continue to affect adult wellbeing over the life course? Previous work on this link has been carried out either at one particular adult age or for some average over adulthood. We here use two British birth-cohort datasets (the 1958 NCDS and the 1970 BCS) to map out the time profile of the effect of childhood experiences on adult outcomes, including life satisfaction. We find that the effects of many aspects of childhood do not fade away over time but are rather remarkably stable. In both birth-cohorts, child non-cognitive skills are the strongest predictors of adult life satisfaction at all ages. Of these, emotional health is the strongest. Childhood cognitive performance is more important than good conduct in explaining adult life satisfaction in the earlier NCDS cohort, whereas this ranking is inverted in the more recent BCS.

GLO Discussion Papers of March 2018

190 Residential Satisfaction for a Continuum of Households: Evidence from European Countries – Download PDF
by Borgoni, Riccardo & Michelangeli, Alessandra & Pirola, Federica

189 The economics of university dropouts and delayed graduation: a survey – Download PDF
by Aina, Carmen & Baici, Eliana & Casalone, Giorgia & Pastore, Francesco

188 The Optimal Graduated Minimum Wage and Social Welfare – Download PDF
by Danziger, Eliav & Danziger, Leif

187 Minority Groups and Success in Election Primaries – Download PDF
by Epstein, Gil S. & Heizler, Odelia

186 Two and a half million Syrian refugees, skill mix and capital intensity – Download PDF
by Akgündüz, Yusuf Emre & Torun, Huzeyfe

185 Voting in Hiring Committees: Which “Almost” Rule Is Optimal? – Download PDF
by Baharad, Eyal & Danziger, Leif

184 The Long-Lasting Effects of Family and Childhood on Adult Wellbeing: Evidence from British Cohort Data – Download PDF
by Flèche, Sarah & Lekfuangfu, Warn N.s & Clark, Andrew E.

 

Successful GLO team:

GLO Managing Director Matloob Piracha (University of Kent, right) and GLO President Klaus F. Zimmermann (UNU-MERIT, Maastricht University and Bonn University, left).

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GLO President Klaus F. Zimmermann on: Why we need global scientific policy advice.

Evidence-free policy making is on the move. This is a particular challenge for the relationship between scientists and policymakers. A workshop with a high-ranked panel of scientists in Budapest engaged in policy advice and policy-making will debate this in the face of the ongoing debate about the future of the Central European University (CEU). The open event takes place on September 6, 2017 on the premises of CEU.

The issue is also debated during the  Academia Europaea 29th Annual Conference 2017 in the Hungarian Academy of Sciences, Budapest, on Tuesday September 4-6, 2017. Academia Europaea (AE) is the Academy of Europe.

Klaus F. Zimmermann (UNU-MERIT, Maastricht & Bonn University) is President of the Global Labor Organization (GLO) and Member of the AE. The AE Council of Academia Europaea has just confirmed his position as Chair of the AE Section “Economics, Business and Management Sciences”.

Zimmermann writes on “Why we need global scientific policy advice”:

“Scientific research does not have to follow socio-political concerns, but it is often inspired by practical challenges. While science cannot help policymakers in cases where hard evidence and convincing findings are lacking, both sides should nonetheless engage in evidence-based policy advice. National and international labor market policies provide a number of good examples how this concept can work.

The concept has, however, come more under pressure in recent years leading to an age of evidence-free policy making at a time when fake-news became fashionable.

The world has learned a lot from the evidence-based policy making of the successful German labor market reforms. This has been a great step forward. On the other hand, many in Europe still fear the economic and social consequences of open and mobile labor markets – despite the proven success of EU enlargement and the available evidence from numerous international migration studies. Unfortunately, the new refugee issue has led people to increasingly ignore such findings after 2015.

But even though the success and the potential of evidence-based policy advice have been widely shown, the concept is subject to criticism from various sides. The necessary independence cannot be guaranteed, a common arguments goes. From this point of view, any policy recommendations are ultimately driven by political and economic interests and dependencies. This allegation is an attack on the scientist’s professional ethos, which includes compliance with the principles of good scientific practice, the pursuit of robust findings, and the impartial communication of these findings. New ethics codes, which the profession has recently adopted, ensure that these principles are upheld.

While good science is always global, some claim that good policy advice must be primarily national in scope. To be sure, national contexts and institutional differences are relevant for a policy advisor. But the increasing global interdependence leaves no room for provincial strategies. For highly open economies like Germany, policy is no longer national. Since globally oriented science ensures the competitiveness of national policy advisors, the quality of German policy advice would be threatened if it were to concentrate on national peculiarities alone.

Evidence-based policy advice, moreover, requires a combination of research and advice: The researcher also acts as an advisor, while the advisor also conducts research. In Germany, the Science Council and other scientific organizations have always stressed the need for this dual role, and the Academies of Science have been practicing it worldwide. Opponents of this concept claim that the dirty business of policy making only keeps scientists from doing good research. Likewise, the demands of policymakers are better met, according to the argument, if they free themselves from the constraints of seeking science-based advice.

Of course, there will always be scientists who shy away from offering policy advice, just as well as policy advisors who do not want to do research. This is not to be condemned. But these two types cannot be considered actors of evidence-based policy advice. And in the long run, this is likely to result in policies of inferior quality. Only the best scientific findings should provide the foundation for important economic policy decisions. Only genuine scientists, i.e., those who contribute to the advancement of science through their own publications, can produce such output, inspired by the challenges of their advisory role, and communicate their results as evidence-based policy advice. This superiority is owed to global competition both in research and policy advice, which ensures the use of the best methodology and findings.”

Revised version of an op-ed of Zimmermann published in IZA Compact 4/2015, p. 16, and on the website of the Academia Europaea, The Academy of Europe.

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Zimmermann in front of the Hungarian Academy of Science, Budapest

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GLO Fellows Asadullah & Maliki on: Bottling Indonesia’s Gini

GLO Fellows M Niaz Asadullah and Maliki have just posted an article on the future of Indonesia with PROJECT SYNDICATE.

M Niaz Asadullah is Professor of Development Economics at the University of Malaya in Kuala Lumpur, and Head of the Southeast Asia cluster of the Global Labor Organization.

Maliki, a Global Labor Organization research fellow, is Director for Population Planning and Social Security at the Indonesian Ministry of National Development Planning (Bappenas).

JAKARTA – When Indonesia declared independence from Dutch rule in 1945, the country’s founder, Sukarno, called on his people to build a nation that would “stand in strength,” eternally united. That mantra – unity and strength – helped shape the country’s future, including its approach to economic development. During much of Indonesia’s early history, its egalitarian distribution of wealth and assets set it apart from its neighbors.

But seven decades later, the legacy of equality is fading. If Indonesia is to remain one of Asia’s most robust economies, it is essential that its current leadership recommit to narrowing the socioeconomic gap.

During much of the 1970s and 1980s, Indonesia’s low level of income inequality helped raise living standards and reduce poverty. In 1970, just 25 years after independence, the country managed an enviable distribution of wealth among a diverse population, with a Gini coefficient (a common measure of income inequality) of 0.35 (with zero representing maximum equality). By comparison, neighboring Malaysia had a Gini coefficient of 0.50.

Indonesia’s remained roughly the same for decades. But, since the Asian financial crisis in 1997, income gaps have widened throughout the region, and in Indonesia in particular, where social welfare programs have barely stemmed the rise in inequality. This year, Indonesia’s Gini coefficient is around 0.39, only slightly better than the 0.41 recorded in 2014.

To economists like us, this trend is deeply worrying. Because persistent high or rising inequality can contribute to political instability and undermine social cohesion, it is critical that Indonesia address it. Paradoxically, Malaysia’s experience is instructive.

In Malaysia, income inequality is no longer primarily a function of ethnicity, or the rural-urban divide, as it once was. Thanks to successful redistribution strategies adopted during the 1970s and 1980s, average per capita income increased, and poverty rates fell dramatically. Though wealth distribution remains a major concern, Malaysia’s Gini coefficient has been on a steady glide toward greater equality since the mid-1970s; in 2014, for example, it dropped to 0.40 for the first time ever, (though this figure remains higher than the average for OECD economies).

Indonesia is moving in the opposite direction. Not only does it have one of the highest levels of wealth inequality in the world; it also suffers deep regional disparities. The country’s poorer eastern provinces, which have a history of ethnic violence, lag behind the rest of the country on human development indicators, infrastructure quality, and access to education. Despite the country’s overall progress, food insecurity and child malnutrition remain serious issues in the east. In other words, it is not just Indonesia’s income distribution that concerns us, but how unequal access to health care, education, and social services has become.

Our concern is widely shared. Last month, scholars, practitioners, and policymakers from around the world gathered at the Indonesian Development Forum to explore solutions to the many forms of inequality that are affecting Indonesia today. The challenges are complex, and discussions focused on the need for multipronged solutions. As Columbia University’s Jeffrey D. Sachs noted, greater investment in education, and more effective wealth redistribution strategies, are the key areas that Indonesia’s government must focus on.

The classroom is the foundation of sustainable development everywhere. Access to education is one of the best ways for poor or disadvantaged youth to become economically productive and climb out of poverty. Unfortunately, Indonesia’s public schools, especially in the east, are struggling with teacher absenteeism. Children who want to learn simply cannot when their instructors do not show up. Broadening access to education is not only about boosting enrollment rates; it also requires ensuring accountability and improving service quality.

Still, reforming the education sector alone will not be enough to close Indonesia’s wealth gap. Strategies that the government should consider include expanding social protection; creating more vocational-training programs; and overhauling the tax system. In many OECD countries, redistributive policies, like tax breaks and expansion of welfare benefits, have helped reduce inequality. If Indonesia is to hit the targets set by the United Nations’ Sustainable Development Goals for reducing inequality by 2030, it must follow these countries’ example.

There are many reasons to be hopeful. Bambang Brodjonegoro, Indonesia’s Minister of National Development Planning, has helped make social inequality a key agenda item, following the direction of President Joko Widodo. This time next year, the Indonesia Development Forum will meet again to gauge progress in our efforts to tackle regional inequality.

Clearly, the political will exists to restore greater equality to Indonesia’s economy. If current leaders can remain as focused on their vision as the country’s founders were on theirs, Indonesia will again serve as a model of unity and strength for the region.

Article copyright: Project Syndicate (posted with permission)

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GLO Heads Brown & Zimmermann on the Hounds of Globalization

Companies need to actively and positively account for the hounds of globalization – migration and digitization, issues which are core to the research efforts of the Global Labor Organization (GLO)GLO Director Alessio J.G. Brown and GLO President Klaus F. Zimmermann have just published a joint article in Germany’s leading Human Resources Magazine Personalführung (in German). 

Brown and Zimmermann both serve also as Co-Directors of POP at UNU-MERIT in Maastricht and as Honorary Professors of Maastricht University.

Abstract

Die Planung und Entwicklung der Humankapitalressourcen in den Unternehmen steht vor gewaltigen Zukunftsaufgaben. Die Globalisierung, wenn auch zunehmend bekämpft, setzt weltweite Standards und erzwingt Wettbewerb. Der Beitrag analysiert die Themenfelder Demographie, Europa, Migration und Digitalisierung. Mitarbeiterrekrutierung wird für die Unternehmung zur Herausforderung. Arbeit wird flexibler und an die Bedürfnisse der Beschäftigten angepasst. Aber ihre sozialen und wirtschaftlichen Risiken nehmen zu. Mitarbeiterführung und Mitarbeitermotivation stehen vor neuen Fragen.

A copy of the article can be found here.

Zimmermann and Brown in front of UNU-MERIT in Maastricht.

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