Category Archives: Post-19

New GLO Discussion Paper: ‘More Children, Happier Families?’

A new GLO Discussion Paper provides evidence that more children can enhance elderly parents’ subjective well-being.

GLO Discussion Paper No. 366, 2019

‘More Children, More Happiness?’: New Evidence from Elderly Parents in China – Download PDF
by Gao, Yanyan & Qu, Zhaopeng

GLO Fellow Zhaopeng Qu

Author Abstract: In this paper, we test the conventional wisdom in developing countries of ‘more children, more happiness’ by exploiting the cohort and provincial variations of elderly parents exposed to the one-child policy in China. Using nationally representative survey data from the 2015 China Health and Retirement Longitude Survey, the results from both the ordinary least square and two-stage least square methods find that more children can enhance elderly parents’ subjective well-being (SWB) measured with either life satisfaction or depression mood. The effect is channelled by raising their satisfaction with children and receiving in-kind transfers from children. The heterogeneity analysis also shows that the effect of children on parents’ life satisfaction is heterogenous to sex composition, first-birth gender, and parents’ age. Our study provides new causal evidence of the impact of fertility on elderly parents’ SWB from a developing economy.

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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New GLO Discussion Paper on the ‘Immigrant-Native Wage Gap in Germany’

A new GLO Discussion Paper reveals a growing gap for both foreigners and naturalized immigrants.

GLO Discussion Paper No. 350, 2019

The Immigrant-Native Wage Gap in Germany Revisited Download PDF
by Ingwersen, Kai & Thomsen, Stephan L.

GLO Fellow Stephan L. Thomsen

Author Abstract: This study provides new evidence on the levels of economic integration experienced by foreigners and naturalized immigrants relative to native Germans from 1994 to 2015. We decompose the wage gap using the method for unconditional quantile regression models by employing a regression of the (recentered) influence function (RIF) of the gross hourly wage on a rich set of explanatory variables. This approach enables us to estimate contributions made across the whole wage distribution. To allow for a detailed characterization of labor market conditions, we consider a comprehensive set of socio-economic and labor-related aspects capturing influences of, e.g., human capital quality, cultural background, and the personalities of immigrants. The decomposition results clearly indicate a significant growing gap with higher wages for both foreigners (13.6 to 17.6 %) and naturalized immigrants (10.0 to 16.4 %). The findings further display a low explanation for the wage gap in low wage deciles that is even more pronounced within immigrant subgroups. Cultural and economic distances each have a significant influence on wages. A different appreciation of foreign educational qualifications, however, widens the wage gap substantially by 4.5 ppts on average. Moreover, we observe an indication of deterioration of immigrants’ human capital endowments over time relative to those of native Germans.

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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New book on: Global Mobility of Highly Skilled People

The book positions itself within the discussion on high-skilled self-initiated expatriation (SIE): Taking cross-disciplinary approaches; connecting to theories about international migration and mobility; and moving away from the restrictive human resource management discipline, where the concept of SIE was developed.

Habti, Driss and Maria Elo (2019) Global Mobility of Highly Skilled People: Multidisciplinary Perspectives on Self-initiated Expatriation. Cham, Switzerland: Springer.
Details and Table of Contents.

Driss Habti is postdoctoral researcher in sociology of migration at the Karelian Institute, University of Eastern Finland
Maria Elo is doctor of economics and lecturer in international business and marketing at the University of Southern Denmark, Odense, Denmark.

GLO Fellow Driss Habti

Summary: This volume examines self-initiated expatriates (SIEs), the category of highly skilled people whose movement from one country to another is by choice. Although they are not forced to relocate due to work, conflict or natural disaster, their migration pattern is every bit as complex. The book challenges previous theoretical approaches that take for granted a more simplistic view of this population, and advances that mobility of SIEs relates to the expatriates themselves, their conditions and the different structures intervening in their career life course. With their visible increase worldwide, this book positions itself as a nexus for this on-going discussion, while linking self-initiated expatriation to the theoretical landscape of international skilled migration and mobility. Major interests that catch attention are transnational practices, work-related experiences and personal life course, including forms of inequalities in their migration experiences. The book identifies forms and drivers of migratory behaviour and provides an argument concerning the broader processes of mobility and integration. As such, this book constitutes a departure point for future research in terms of theoretical underpinnings and empirical rigor on global highly skilled mobility of SIEs. The collection of empirical case studies offers an insightful analysis for policy makers, concerned stakeholders and organizations to better cope with this form of migration.   

3 of the 13 chapters:

Habti, D. and Elo, M. (2019) Rethinking Self-Initiated Expatriation in International Highly Skilled Migration. In Driss Habti and Maria Elo (eds.), Global Mobility of Highly Skilled People: Multidisciplinary Perspectives on Self-Initiated Expatriation (1–37). Cham, Switzerland: Springer.

Habti, D. (2019). Mapping drivers of Arab highly skilled self-initiated expatriation to Finland: Personal-professional life pendulum. In Driss Habti & Maria Elo (Eds.), Global mobility of highly skilled people-Multidisciplinary perspectives on self-initiated expatriation (pp. 107–145). Cham, Switzerland: Springer.

Elo, M. and Habti, D. (2019) Self-Initiated Expatriation Rebooted: A Puzzling Reality – A Challenge to Migration Research and its Future Direction. In Driss Habti & Maria Elo (Eds.), Global mobility of highly skilled people-Multidisciplinary perspectives on self-initiated expatriation (pp. 293–304). Cham, Switzerland: Springer.

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New GLO Discussion Paper on ‘Ethnic Identity and Immigrant Employment Outcomes’

A new GLO Discussion Paper reveals that multiple cultural identities improve the employment outcomes of migrants and enable better post-immigration policies in France.

GLO Discussion Paper No. 345, 2019

Ethnic Identity and the Employment Outcomes of Immigrants: Evidence from France Download PDF
by Delaporte, Isaure

GLO Affiliate Isaure Delaporte

Author Abstract: The objective of this paper is twofold: first, to determine the immigrants’ ethnic identity, i.e. the degree of identification to the culture and society of the country of origin and the host country and second, to investigate the impact of ethnic identity on the immigrants’ employment outcomes. Using rich survey data from France and relying on a polychoric principal component analysis, this paper proposes two richer measures of ethnic identity than the ones used in the literature, namely: i) the degree of commitment to the origin country culture and ii) the extent to which the individual holds multiple identities. The paper investigates the impact of the ethnic identity measures on the employment outcomes of immigrants in France. The results show that having multiple identities improves the employment outcomes of the migrants and contribute to help design effective post-immigration policies.

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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Beyond the Average: GLO DP 322 now published in the Journal of Economic Behavior & Organization

Children of low-educated parents benefit significantly from the presence of high-educated parental peers of the same ethnicity. GLO Discussion Paper No. 322 just published in JEBO.

Chakraborty, Tanika & Schüller, Simone & Zimmermann, Klaus F.: Beyond the Average: Ethnic Capital Heterogeneity and Intergenerational Transmission of Education, in: Journal of Economic Behavior and Organization (JEBO), Vol. 163 (2019), pp. 551-569. Published PDF.

GLO Discussion Paper No. 322, 2019

Beyond the Average: Ethnic Capital Heterogeneity and Intergenerational Transmission of Education Download PDF
by Chakraborty, Tanika & Schüller, Simone & Zimmermann, Klaus F.

GLO Fellows Tanika Chakraborty, Simone Schüller & GLO President Klaus F. Zimmermann

Author Abstract: Estimating the effect of ethnic capital on human capital investment decisions is complicated by the endogeneity of immigrants’ location choice, unobserved local correlates and the reflection problem. We exploit the institutional setting of a rare immigrant settlement policy in Germany, that generates quasi-random assignment across regions, and identify the causal impact of heterogeneous ethnic capital on educational outcomes of children. Correcting for endogenous location choice and correlated unobservables, we find that children of low-educated parents benefit significantly from the presence of high-educated parental peers of the same ethnicity. High educated parental peers from other ethnicities do not influence children’s learning achievements. Our estimates are unlikely to be confounded by the reflection problem since we study the effects of parental peers’ human capital which is pre-determined with respect to children’s outcomes. Our findings further suggest an increase in parental aspirations as a possible mechanism driving the heterogeneous ethnic capital effects, implying that profiling peers or ethnic role models could be important for migrant integration policies.

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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New GLO Discussion Paper on ‘Immigration and the Well-being of Europeans’

A new GLO Discussion Paper provides evidence that the well-being of native Europeans is not affected by increasing immigrant population shares.

GLO Discussion Paper No. 352, 2019

The effect of immigration on natives’ well-being in the European Union Download PDF
by O’Connor, Kelsey J.

GLO Fellow Kelsey J. O’Connor

Author Abstract: Immigration is one of the most debated topics in Europe today, yet little is known about the overall effect of its multiple impacts. The analysis suggests natives need not worry. Increasing immigrant population shares have no statistically significant effects on natives’ well-being in 28 European Union countries over the years 1990- 2017 (EU12) and 2005-2017 (new member states) using macro data aggregated from Eurobarometer surveys. Immigration does not statistically affect natives’ well-being across all scenarios, such as: when observing the raw data or accounting for reverse causality and omitted variables using instrumental variable methods; accounting for whether or not immigrants are from the EU; and for population subgroups, notably the poorly educated and elderly. Refugees also do not statistically affect the well-being of natives. Any negative relations that are observed are not statistically significant and exhibit small magnitudes.

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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New GLO Discussion Paper on ‘Do Public Pension Benefits Affect Private Household Transfers to the Elderly Parents?’

A new GLO Discussion Paper provides evidence that pension benefits lower the propensity of adult children to transfer income to elderly parents in China, and also finds a small crowding-out effect.

GLO Discussion Paper No. 357, 2019

Do Private Household Transfers to the Elderly Respond to Public Pension Benefits? Evidence from Rural China – Download PDF
by Nikolov, Plamen & Adelman, Alan

GLO Fellow Plamen Nikolov

Author Abstract: Aging populations in developing countries have spurred the introduction of public pension programs to preserve the standard of living for the elderly. The often-overlooked mechanism of intergenerational transfers, however, can dampen these intended policy effects, as adult children who make income contributions to their parents could adjust their behavior in response to changes in their parents’ income. Exploiting a unique policy intervention in China, we examine using a difference-in-difference-in-differences (DDD) approach how a new pension program impacts inter vivos transfers. We show that pension benefits lower the propensity of adult children to transfer income to elderly parents in the context of a large middle-income country, and we also estimate a small crowd-out effect. Taken together, these estimates fit the pattern of previous research in high-income countries, although our estimates of the crowd-out effect are significantly smaller than previous studies in both middle- and high-income countries.

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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New GLO Discussion Paper on ‘Tax implicit value judgements, redistribution and income inequality’

A new GLO Discussion Paper reveals the drivers of inequality behind tax and transfer policies in the UK.

GLO Discussion Paper No. 359, 2019

The evolution of tax implicit value judgements, redistribution and income inequality in the UK: 1968 to 2015  Download PDF
by van de Ven, Justin & Hérault, Nicolas

GLO Fellow Nicolas Herault

Author Abstract: An issue of interest in the literature that explores the drivers of inequality is the distributional bearing of tax and transfer policy, where an important theme concerns changes in the relative treatment of alternative population subgroups. We develop an empirical approach for quantifying the value judgements implicit in the relative treatment of demographic subgroups by a tax and transfer system. We apply this approach to UK data reported at annual intervals between 1968 and 2015, documenting remarkable improvements in tax and transfer treatment enjoyed by some population subgroups – particularly families with children and age pensioners – relative to the wider population. We show that accounting for the changing value judgements implicit in tax and transfer policy provides a fresh perspective on the evolution of income inequality and redistribution; one that departs from the prevailing view that UK inequality stopped rising from the early 1990s.

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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Special Issue of the International Journal of Manpower on ‘Advances on School-To-Work Transitions’

On the joint initiative of the Global Labor Organization (GLO) and the International Journal of Manpower, Francesco Pastore (University of Campania “Luigi Vanvitelli” and GLO) and Klaus F. Zimmermann (UNU-MERIT, Maastricht University and GLO) have edited two special issues of the journal on Advances on School-To-Work Transitions. The project is related to the GLO Thematic Cluster on “School-to-Work Transitions” headed by Francesco Pastore. Part I is now published.

FULL TABLE OF CONTENT AND LINKS:
PART I PUBLISHED AS VOLUME 40, ISSUE 3, 2019.

Francesco Pastore and Klaus F. Zimmermann (2019), “Understanding school-to-work transitions”, International Journal of Manpower, Vol. 40, No. 3, pp. 374-378. Pre-publication draft.

Corinna Ghirelli, Enkelejda Havari, Giulia Santangelo and Marta Scettri (2019), “Does on-the-job training help graduates find a job? Evidence from an Italian region”, International Journal of Manpower, Vol. 40, No. 3, pp. 500-524.

Simona Demel, Petr Mariel and Jürgen Meyerhoff (2019), “Job preferences of business and economics students”, International Journal of Manpower, Vol. 40, No. 3, pp. 473-499.

Irene Selwaness and Rania Roushdy (2019), “Young people school-to-work transition in the aftermath of the Arab Spring”, International Journal of Manpower, Vol. 40, No. 3, pp. 398-432.

Paula Rodriguez-Modroño (2019), “Youth unemployment, NEETs and structural inequality in Spain”, International Journal of Manpower, Vol. 40, No. 3, pp. 433-448.

Emanuela Ghignoni, Giuseppe Croce and Alessandro d’Ambrosio (2019), “University dropouts vs high school graduates in the school-to-work transition”, International Journal of Manpower, Vol. 40, No. 3, pp. 449-472.

Jacek Liwiński (2019), “Does it pay to study abroad? Evidence from Poland”, International Journal of Manpower, Vol. 40, No. 3, pp. 525-555.

Gabriella Berloffa, Eleonora Matteazzi, Alina Şandor and Paola Villa (2019), “Gender inequalities in the initial labour market experience of young Europeans”, International Journal of Manpower, Vol. 40, No. 3, pp. 379-397.

Francesco Pastore and Klaus F. Zimmermann

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New GLO Discussion Paper on ‘Birth Weight and Child Cognitive Development’

A new GLO Discussion Paper finds that health policies designed to improve birth weight could improve human capital in resource-poor settings.

GLO Discussion Paper No. 358, 2019

Birth Weight and Cognitive Development during Childhood: Evidence from India – Download PDF
by Kumar, Santosh & Kumar, Kaushalendra & Laxminarayan, Ramanan & Nandi, Arindam

GLO Fellow Santosh Kumar

Author Abstract: Health at birth is an important indicator of human capital development over the life course. This paper uses longitudinal data from the Young Lives survey and employs instrumental variable regression models to estimate the effect of birth weight on cognitive development during childhood in India. We find that a 10 percent increase in birth weight increases cognitive test score by 8.1 percent or 0.11 standard deviations at ages 5-8 years. Low birth weight infants experienced a lower test score compared with normal birth weight infants. The positive effect of birth weight on a cognitive test score is larger for boys, children from rural or poor households, and those with less-educated mothers. Our findings suggest that health policies designed to improve birth weight could improve human capital in resource-poor settings.

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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New GLO Discussion Paper on ‘Technological change and occupation mobility’

A new GLO Discussion Paper deals with technological change and its impacts on labor markets caused by task demand shifts potentially foster horizontal skill mismatches. The study identifies a wage penalty of roughly 12% for horizontally mismatched individuals.

GLO Discussion Paper No. 361, 2019

Technological change and occupation mobility: A task-based approach to horizontal mismatch – Download PDF
by Aepli, Manuel

GLO Affiliate Manuel Aepli

Author Abstract: Technological change and its impacts on labour markets are a much-discussed topic in economics. Economists generally assume that new technology penetrating the labour market shifts firms’ task demand. Given individuals’ acquired and supplied skills, these task demand shifts potentially foster horizontal skill mismatches, e.g. individuals not working in their learned occupations. In this paper, I first analyse the relation between task shifting technological change and individuals’ horizontal mismatch incidence. Second, I estimate individuals’ mismatch wage penalties triggered by this relation. The present paper proposes an instrumental variable (IV) approach to map this mechanism and to obtain causal estimates on mismatch wage penalties. Applying this empirical strategy yields a wage penalty of roughly 12% for horizontally mismatched individuals.

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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Call for Contributions: Inaugural Workshop on “Health, Inequality and Behavior” on November 11-13 at Macquarie University, Sydney/Australia.

The Department of Economics at Macquarie University in collaboration with Macquarie University Centre for Health Economy (MUCHE) and Global Labor Organization (GLO) are organizing an international conference entitled the Economics of Health, Inequality and Behavior (WEHIB), to be held in Sydney, Australia over 11-13 November 2019. This multidisciplinary conference aims to foster a series of dialogue among social scientists on the nexus between health, behavior, and inequality across developed and developing societies.

The event is chaired by Kompal Sinha, a Senior Lecturer and HDR Director at the Department of Economics of Macquarie University. Sinha is also an Associate Editor of the Journal of Population Economics and the GLO Research Cluster Lead for Development, Health Inequality and Behavior. Keynote speakers are Lisa Cameron (University of Melbourne), Andrew Jones (University of York), and Klaus F. Zimmermann (UNU-MERIT and Maastricht University).

Call for abstracts, deadline: August 16. More details: CONFERENCE WEBSITE.

Kompal Sinha

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New GLO Discussion Paper on ‘Technology and Employment’

A new GLO Discussion Paper studies the sectoral patterns of job creation and job destruction in order to distinguish the alternative effects of embodied vs disembodied technological change.

GLO Discussion Paper No. 355, 2019

Technology and employment in a vertically connected economy: a model and an empirical test – Download PDF
by Dosi, G. & Piva, M. & Virgillito, M. E. & Vivarelli, M.

GLO Fellows Giovanni Dosi, Mariacristina Piva, Maria Enrica Virgillito & Marco Vivarelli

Author Abstract: This paper addresses, both theoretically and empirically, the sectoral patterns of job creation and job destruction in order to distinguish the alternative effects of embodied vs disembodied technological change operating into a vertically connected economy. Disembodied technological change turns out to positively affect employment dynamics in the “upstream’’ sectors, while expansionary investment does so in the “downstream’’ industries. Conversely, the replacement of obsolete capital vintages tends to exert a negative impact on labour demand, although this effect turns out to be statistically less robust.

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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New GLO Discussion Paper on ‘Aging and migration. Benefits and Challenges.’

Migrants work and broaden the tax burden and help to adjust in the face of population aging. But they may threaten local social norms and culture when they maintain the culture of their country of origin. The new GLO Discussion Paper debates the balance for aging societies.

GLO Discussion Paper No. 351, 2019

Who is in favor of immigration Download PDF
by Epstein, Gil S. & Katav-Herz, Shirit

GLO Fellows Gil S. Epstein & Shirit Katav-Herz

Author Abstract: Population ageing affects most countries, especially developed ones. The elderly have increased in number as a result of increased longevity and a parallel decline in fertility. This phenomenon is placing an increasing burden on the young to finance intergenerational transfers to the old, which is creating a threat to the stability of the pension system and the long-run viability of society as a whole. One possible solution is to permit more immigration, which will both increase the labor force and broaden the tax base. Increasing immigration has a variety of effects on the local population, which vary according to age and wealth. One of these is the threat to local social norms and culture since immigrants tend to maintain the culture of their country of origin. This effect increases with the number of immigrants and reduces the attractiveness of immigration as a solution to population ageing. This paper examines immigration as a solution to the problem of ageing population, while considering the implication of immigration on social norms.

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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New GLO Discussion Paper on ‘Child Health Problems and Family Structure’

Does child health affects the stability of families? A new GLO Discussion Paper shows that family structure variables, such as marriage duration, age when last married, the probability of getting divorced, the probability of getting married and the presence of a spouse/partners in the household, experience a notorious trend break over the life cycle when women have babies in their early forties. It hypothesizes that the observed facts are driven by a significant increase in the risk of having a child with health problems when women enter the last decade of their reproductive life.

GLO Discussion Paper No. 354, 2019

Will You Marry Me … if Our Children Are Healthy? The Impact of Maternal Age and the Associated Risk of Having a Child with Health Problems on Family Structure – Download PDF
by Gutierrez, Federico H.

GLO Fellows Federico H. Gutierrez

Author Abstract: Family structure is usually believed to affect children’s human capital. Is it possible that causality goes in the opposite direction? This paper shows that the behavior of family structure variables over the life cycle dramatically changes when women have babies in their forties. These data regularities align with a significant increase in the risk of having a child with health problems when women enter the last decade of their reproductive life. I present a simple theoretical model that provides a common underlying explanation for the data patterns and generates additional testable implications and apply it to data.

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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New GLO Discussion Paper: The Economics of Hategoatism Needed.

The GLO Discussion Paper proposes a new term, “HATEGOATISM,” for the simultaneous existence of scapegoatism and dehumanization, and a new Economics of Hategoatism. Currently only one subfield of economics regularly embraces hategoatism, which is Libertarianism.

GLO Discussion Paper No. 365, 2019

The Urgent Need for an Economics of “Hategoatism – Download PDF
by Payson, Steven

GLO Fellow Steven Payson

Author Abstract: The word “scapegoat” is defined as “a person made to bear the blame for others,” and similarly, “scapegoatism” refers to “the act or practice of assigning blame or failure to another, as to deflect attention or responsibility away from oneself” (Collins English Dictionary and Dictionary.com, respectively.) While these definitions do not mention economics specifically, in most cases the blame on the scapegoat is economic in nature. Scapegoatism also provides a convenient, though extremely inferior, substitute for valid analyses of economic problems. Scapegoatism, however, has a partner, dehumanization, which is the process of demonizing certain people as less than human and unworthy of humane treatment. Scapegoatism is not only accompanied by dehumanization, but it is often motivated by it. Thus, “scapegoatism” is a euphemism and it is understudied as a result, because there is no single term of art that combines scapegoatism and dehumanization. This paper offers a solution to this semantic dilemma by proposing the new term, “HATEGOATISM,” for the simultaneous existence of scapegoatism and dehumanization. Only one subfield of economics regularly embraces hategoatism, which is Libertarianism (where the “HATEGOAT” is government workers). Economists must lead by example by combating hategoatism, and that requires cleaning their own house first.

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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New GLO Discussion Paper: Fluctuations of uncertainty cause fertility fluctuations.

A new GLO Discussion Paper finds that an increase in economic uncertainty decreases fertility.

GLO Discussion Paper No. 360, 2019

Economic Uncertainty and Fertility – Download PDF
by Gözgör, Giray & Bilgin, Mehmet Huseyin & Rangazas, Peter

GLO Fellows Girary Gözgör & Mehmet Huseyin Bilgin

Author Abstract: In this paper, we conduct an empirical study of the effect of uncertainty on fertility. The precautionary motive for saving predicts that an increase in uncertainty increases saving by reducing both consumption and fertility. We use a new measure of uncertainty, the World Uncertainty Index, and focus on data from 126 countries for the period from 1996 to 2017. The empirical findings indicate that uncertainty shocks decrease the fertility rate. This evidence is robust to different model specifications and econometric techniques as well as to the inclusion of various controls.

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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New GLO Discussion Paper on ‘Hate of foreigners and voting behavior’

Is the voting effect of immigrant presence persistent? A new GLO Discussion Paper suggests that the effect is short-run only.

GLO Discussion Paper No. 364, 2019

Hate at first sight? Dynamic aspects of the electoral impact of migration: The case of Ukip – Download PDF
by Levi, Eugenio & Mariani, Rama Dasi & Patriarca, Fabrizio

GLO Fellows Eugenio Levi & Rama Dasi Mariani

Author Abstract: In this paper, we test the hypothesis that the causal effect of immigrant presence on anti-immigrant votes is a short-run effect. For this purpose, we consider a distributed lag model and adapt the standard instrumental variable approach proposed by Altonji and Card (1991) to a dynamic framework. The evidence from our case study, votes for the UK Independent Party (Ukip) in recent European elections, supports our hypothesis. Furthermore, we find that this effect is robust to differences across areas in terms of population density and socioeconomic characteristics, and it is only partly explained by integration issues.

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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New GLO Discussion Paper: Decomposing the gender wage gap in the US.

Gender wage differences are still of much concern, in particular in the United States. A new GLO Discussion Papers adds to our understanding how the gender gap is shaped by multiple different forces such as parenthood, gender segregation, part-time work and unionization.

GLO Discussion Paper No. 363, 2019

The Gender Pay Gap in the US: A Matching Study – Download PDF
by Meara, Katie & Pastore, Francesco & Webster, Allan

GLO Fellows Francesco Pastore & Allan Webster

Author Abstract: This study examines the gender wage gap in the US using two separate cross-sections from the Current Population Survey (CPS). The extensive literature on this subject includes papers which use wage decompositions to divide gender wag gaps into “explained” and “unexplained” components. Problems with this approach include the heterogeneity of the sample data. In order to address the difficulties of comparing like with like this study uses a number of different matching techniques to obtain estimates of the gap. By controlling for a wide range of other influences, in effect, we estimate the direct effect of simply being female on wages. However, to form a complete picture, one should consider that gender wages are affected by a number of other factors such as parenthood, gender segregation, part-time working and unionization. This means that it is not just the core “like for like” comparison between male and female wages that matters but also how gender wage differences interact with other relevant risk factors which are more common for women. That these interactions exist has already been discussed in the literature but evidence that precisely or systematically estimates such effects remains scarce. The most innovative contribution of this study is to do that. Our findings imply that the idea of a single uniform gender pay gap is perhaps less useful than an understanding of how gender wages are shaped by multiple different forces.

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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Now ONLINE & OPEN ACCESS in the Journal of Population Economics: International migration as a driver of political & social change

Using data for Morocco, the paper provides further evidence that international migration fosters the transfer of political and social norms.

Read more in:


Michele Tuccio, Jackline Wahba and Bachir Hamdouch: “International migration as a driver of political and social change: evidence from Morocco”
Journal of Population Economics, online, issue forthcoming.

Journal Website. Download PDF of article for free – OPEN ACCESS

GLO Fellows Michele Tuccio, Jackline Wahba and Bachir Hamdouch

Author Abstract: This paper focuses on the impact of international migration on the transfer of political and social norms. Exploiting recent and unique data on Morocco, this paper explores whether households with return and current migrants bear different political preferences and behaviors than non-migrant families. Once controlling for the double selection into emigration and return migration, the findings suggest that having a returnee in the household increases the demand for political and social change. This result is driven by returnees mostly from Western European countries, who were exposed to more democratic norms in the destination. However, we find a negative impact of having a current migrant on the willingness of the left-behind households to change. This result is driven by migrants to non-Western countries, where the quality of political and social institutions is lower. Our results are robust to also controlling for destination selectivity.

Ends;

July 11, 2019: Interview of SPP/Budapest with GLO President Zimmermann on the benefits and challenges of research and teaching in the Hungarian capital.

In the Spring 2019 term, GLO President Klaus F. Zimmermann has been the George Soros Visiting Chair Professor at the School of Public Policy of the Central European University (CEU) in Budapest. On June 28, he terminated this engagement and returned to the headquarters of the Global Labor Organization (GLO) in Bonn, Germany. See for a REPORT. Threatened by the Hungarian government, CEU has now moved its teaching to Budapest. Other Hungarian academic institutions are under monitoring by the Hungarian government.

On July 11, 2019, SSP published an interview with Zimmermann about his time in Budapest and views about the situation. LINK to the SPP website. See also text below.


KFZ

SPP: You have been GSVC at SPP. Why SPP/CEU? What does your stay at SPP/CEU offer to you in terms of research, interaction with SPP faculty and students?

KFZ: I am working on European integration and global migration issues, and have published substantially on the European Union East enlargement and its consequences for the wellbeing of European nations. I have visited Budapest a number of times in my life to interact with Hungarian academic institutions. The CEU has over time become a lighthouse institution for the academic transformation of Eastern Europe. CEU’s academic staff and students are so professional, international, multi-ethnic and multidisciplinary; it is a pleasure to interact and learn. My research benefits from the various discussions I had during the visit – with long-term effects. It therefore has been both a pleasure and a great honor the have been the GSVC.

SPP: You have authored a vast body of academic articles, books, edited volumes. Which finding was the most intriguing one, perhaps changing the way we see some policy problems?

KFZ: Unlike what the public and policymakers often think, labor migration is a coming and going. Scientist have called this circular migration. While the inflow is properly noticed, the outflow is often overlooked. If policymakers wish to stop the inflow through regulations or walls, the outcome may be the opposite of what they intended: Workers stay longer, temporary migrants become even permanent, they bring family, and those unwilling to integrate pass these attitudes to their kids who remain disintegrated in the country. At the end there are more than less migrants and their composition is more troublesome. The better solution is free (and legal) labor mobility, where societies, companies and workers are adjusting according to general rules.

SPP: What policy issues are you working on now, and how do they relate to the European project?

Europe sees a rise in nationalism, avoids necessary reform policies and is afraid about foreigners and migration. People think that the world gets better if they ignore the consequences of demographic shifts, climate change and global conflict. This is a global trend, but Europe risks its well-build institutions which brought wealth, wellbeing and peace. Hence, I am writing about the benefits and conditions of well-designed reform policies, world-wide open labor mobility and a proper refugee policy. Europe will collapse if it fails to deal with those challenges.

SPP: You are one of the most prominent advocates of evidence based policy making. What are the necessary conditions for this to work? What is the role of universities in this?  

KFZ: For such a policy to work, it needs that policymakers are collaborating with scientists. Researchers have to be willing to address pressing societal issues, execute state-of-the-art research and communicate it properly. They have to provide where possible alternative options, so that politicians can optimize with respect to the opinions of their voters. Policymakers need to listen and be willing to give larger weight to long-term efficiency issues over short-term muddling-through concepts focusing primarily on redistribution policies. Universities and research centers are core in this process, and they can only function with academic freedom. If society attempts to control and command research, the price is loss in welfare and wellbeing.

SPP: You know that Lex-CEU effectively expelling CEU from Hungary. HAS is under pressure, and several other universities. Is this a broader trend, and how should societies and academics respond to this?

KFZ: Although in line with many developments in the world suggesting a decline in the acceptance of science in society, these Hungarian experiences are dramatic. They will have huge damaging long-term effects for the Hungarian economy and society, and possibly push the country out of the European Union. This is a divide between the intellectuals and the ordinary person, a divide between brain and heart. Scientists have to go out to convey their findings, but they also need to activate and motivate the hearts. It is important to work on a European identity, not only to show that Europe creates a better economy.

SPP: You have held several professorial positions, the founding director of a prominent research institute, the Institute for the Study of Labor, the president of Germany’s largest think tank DIW, having significant academic and policy impact. From that experience, can you generalize some key lessons for young researchers, but also students, who aspire to have such an impact?

KFZ: Start as an academic, not as a policy advisor. Publish articles in established respected research journals to create an academic reputation. This is your capital as a policy advisor afterwards. Do not become partisan, or you become a politician and not the independent thinker needed. Wait for the time when the problems become so pressing so that your advice is need. This implies patience and the willingness to execute stand-by research. To be effective, seek the traditional and the social media, to achieve a global standing, and be ready to advise key policymakers at the local or national levels. Be willing to accept the huge administrative and psychological burden of directing large research institutions.

Ends;

Now Online in the Journal of Population Economics: Mortality inequality in France & the United States

Despite a measured strong cross-sectional relationship between income and health, the study finds no necessary connection between changes in income inequality and changes in health inequality.

Read more in:

Janet Currie, Hannes Schwandt & Josselin Thuilliez: “Pauvreté, Egalité, Mortalité: mortality (in)equality in France and the United States”
Journal of Population Economics, online, in print.

Journal Website. Paper Access.

GLO Fellow Hannes Schwandt

Author Abstract: We develop a method for comparing levels and trends in inequality in mortality in the United States and France between 1990 and 2010 in a similar framework. The comparison shows that while income inequality has increased in both the United States and France, inequality in mortality in France remained remarkably low and stable. In the United States, inequality in mortality increased for older groups (especially women) while it decreased for children and young adults. These patterns highlight the fact that despite the strong cross-sectional relationship between income and health, there is no necessary connection between changes in income inequality and changes in health inequality.

Ends;

Now ONLINE & OPEN ACCESS in the Journal of Population Economics: The nativity wealth gap – what is it & what drives it?

The paper studies the migrant-native differences in wealth among older households in Europe which is significant and to the advantage of the natives. The importance of origin country, age at migration, and citizenship status in reducing the gap is shown.

Read more in:

Irene Ferrari: “The nativity wealth gap in Europe: a matching approach “
Journal of Population Economics, online, issue forthcoming.

Journal Website. Download PDF of article for free – OPEN ACCESS

GLO Fellow Irene Ferrari

Author Abstract: This study uses a matching method to provide an estimate of the nativity wealth gap among older households in Europe. This approach does not require imposing any functional form on wealth and avoids validity-out-of-the-support assumptions; furthermore, it allows estimation not only of the mean of the wealth gap but also of its distribution for the common-support sub-population. The results show that on average there is a positive and significant wealth gap between natives and migrants. However, the average gap may be misleading as the distribution of the gap reveals that immigrant households in the upper part of the wealth distribution are better off, and those in the lower part of the wealth distribution are worse off, than comparable native households. A heterogeneity analysis shows the importance of origin, age at migration, and citizenship status in reducing the gap. Indeed, households who migrated within Europe, those who moved at younger ages rather than as adults, and those who are citizens of the destination country display a wealth gap that is consistently smaller over the entire distribution.

Ends;

How dreams matter for migration: Now Published in the Journal of Population Economics

The article provides evidence that countries with stronger beliefs that hard work leads to a higher social status (the ‘American Dream’) attract a higher proportion of high-skilled immigrants.

Read more in:

Claudia Lumpe: “Public beliefs in social mobility and high-skilled migration”
Journal of Population Economics, Vol. 32 (2019), Issue 3, pp. 981–1008.

Journal Website Issue. Paper Access.

GLO Fellow Claudia Lumpe

Author Abstract: This paper investigates how beliefs of the destination country’s population in social mobility may influence the location choice of high-skilled migrants. We pool macro data from the IAB brain-drain dataset with population survey data from the ISSP for the period 1987–2010 to identify the effect of public beliefs in social mobility on the share of high-skilled immigrants (stocks) in the main OECD immigration countries. The empirical results suggest that countries with higher “American Dream” beliefs, i.e., with stronger beliefs that climbing the social ladder can be realized by own hard work, attracted a higher proportion of high-skilled immigrants over time. This pattern even holds against the fact that existing social mobility in these countries is relatively lower.

Ends;

Now ONLINE & OPEN ACCESS in the Journal of Population Economics: Marriage, dowry, and women’s status in rural Punjab

Dowry is a common custom in South Asia with rising use and increasing amounts. The paper shows that a higher dowry amount, especially in terms of furniture, electronics, and kitchenware, is positively associated with women’s status in the marital household.

Read more in:
Momoe Makino: “Marriage, dowry, and women’s status in rural Punjab, Pakistan”
Journal of Population Economics, Vol. 32 (2019), Issue 3, pp. 769-797.

Journal Website. Download PDF of article for free – OPEN ACCESS

GLO Fellow Momoe Makino

Author Abstract: Dowry is a common custom observed in South Asian countries. Despite alleged negative consequences caused by dowry and the legal ban or restrictions on its practice, the custom has been extended, and recently, dowry amounts seem to be increasing. Compared with public interest in and theoretical studies on dowry, empirical studies are relatively scarce mainly due to data unavailability and inadequacy. We conducted a household survey specifically designed to empirically investigate how dowry is associated with women’s status in the marital household in rural Punjab, Pakistan. The dataset is unique because it gathers information on disaggregated marriage expenses, which enables us to examine the relation between each itemized component of dowry and women’s status. Results show that a higher dowry amount, especially in terms of furniture, electronics, and kitchenware, is positively associated with women’s status in the marital household. The positive association of these illiquid items adds suggestive evidence that in rural Punjab, Pakistan, dowry serves as a trousseau that the bride’s parents voluntarily offer to their daughter.

Ends;

June GLO Discussion Paper of the Month: Mental Health, Schooling and Genetic Predisposition.

Does schooling attenuates the genetic predisposition to poor mental health. The GLO Discussion Paper of the Month of June 2019  provides some empirical support, but the findings are not robust.

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: June

GLO Discussion Paper No. 362, 2019

Mental Health, Schooling Attainment and Polygenic Scores: Are There Significant Gene-Environment Associations? – Download PDF
by Amin, Vikesh & Behrman, Jere R. & Fletcher, Jason M. & Flores, Carlos A. & Flores-Lagunes, Alfonso & Kohler, Hans-Peter

GLO Fellows Jere Behrman, Carlos Flores and Alfonso Flores – Lagunes

Author Abstract: It is well-established that (1) there is a large genetic component to mental health, and (2) higher schooling attainment is associated with better mental health. Given these two observations, we test the hypothesis that schooling may attenuate the genetic predisposition to poor mental health. Specifically, we estimate associations between a polygenic score (PGS) for depressive symptoms, schooling attainment and gene-environment (GxE) interactions with mental health (depressive symptoms and depression), in two distinct United States datasets at different adult ages- 29 years old in the National Longitudinal Study of Adolescent Health (Add Health) and 54 years old in the Wisconsin Longitudinal Study (WLS). OLS results indicate that the association of the PGS with mental health is similar in Add Health and the WLS, but the association of schooling attainment is much larger in Add Health than in the WLS. There is some suggestive evidence that the association of the PGS with mental health is lower for more-schooled older individuals in the WLS, but there is no evidence of any significant GxE associations in Add Health. Quantile regression estimates also show that in the WLS the GxE associations are statistically significant only in the upper parts of the conditional depressive symptoms score distribution. We assess the robustness of the OLS results to omitted variable bias by using the siblings samples in both datasets to estimate sibling fixed-effect regressions. The sibling fixed-effect results must be qualified, in part due to low statistical power. However, the sibling fixed-effect estimates show that college education is associated with fewer depressive symptoms in both datasets.

GLO Discussion Papers of June 2019

364 Hate at first sight? Dynamic aspects of the electoral impact of migration: The case of Ukip – Download PDF
by Levi, Eugenio & Mariani, Rama Dasi & Patriarca, Fabrizio

363 The Gender Pay Gap in the US: A Matching Study – Download PDF
by Meara, Katie & Pastore, Francesco & Webster, Allan

362 Mental Health, Schooling Attainment and Polygenic Scores: Are There Significant Gene-Environment Associations? – Download PDF
by Amin, Vikesh & Behrman, Jere R. & Fletcher, Jason M. & Flores, Carlos A. & Flores-Lagunes, Alfonso & Kohler, Hans-Peter

361 Technological change and occupation mobility: A task-based approach to horizontal mismatch – Download PDF
by Aepli, Manuel

360 Economic Uncertainty and Fertility – Download PDF
by Gözgör, Giray & Bilgin, Mehmet Huseyin & Rangazas, Peter

359 The evolution of tax implicit value judgements, redistribution and income inequality in the UK: 1968 to 2015  Download PDF
by van de Ven, Justin & Hérault, Nicolas

358 Birth Weight and Cognitive Development during Childhood: Evidence from India – Download PDF
by Kumar, Santosh & Kumar, Kaushalendra & Laxminarayan, Ramanan & Nandi, Arindam

357 Do Private Household Transfers to the Elderly Respond to Public Pension Benefits? Evidence from Rural China – Download PDF
by Nikolov, Plamen & Adelman, Alan

356 What do student jobs on graduate CVs signal to employers? – Download PDF
by Van Belle, Eva & Caers, Ralf & Cuypers, Laure & De Couck, Marijke & Neyt, Brecht & Van Borm, Hannah & Baert, Stijn

355 Technology and employment in a vertically connected economy: a model and an empirical test – Download PDF
by Dosi, G. & Piva, M. & Virgillito, M. E. & Vivarelli, M.

354 Will You Marry Me … if Our Children Are Healthy? The Impact of Maternal Age and the Associated Risk of Having a Child with Health Problems on Family Structure – Download PDF
by Gutierrez, Federico H.

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 GroningenDP@glabor.org  

Ends;

Now OUT in the Journal of Population Economics: Internal migration affects the emotional health of elderly parents left-behind in China.

A new study examines how migration of an adult child affects the emotional health of elderly parents left-behind in China. It finds that migration reduces happiness and leads to more loneliness among the elderly.

Read more in:

Juliane Scheffel & Yiwei Zhang: How does internal migration affect the emotional health of elderly parents left-behind? Journal of Population Economics, Vol. 32 (2019), Issue 3, pp. 953-980.

Journal Website. Download PDF of article for free – OPEN ACCESS

GLO Fellow Juliane Scheffel

Author Abstract: The ageing population resulting from the one-child policy and massive flows of internal migration in China pose major challenges to elderly care in rural areas where elderly support is based on a traditional inter-generational family support mechanism. We use data from the China Health and Retirement Longitudinal Study to examine how migration of an adult child affects the emotional health of elderly parents left-behind. We identify the effects using fixed effects and IV approaches which rely on different sources of variation. We find that migration reduces happiness by 6.6 percentage points and leads to a 3.3 percentage points higher probability of loneliness. CES-D scores of elderly parents are severely increased pushing average scores close to the cut-off indicating clinical levels of depressive symptoms. As emotional health is a key determinant of the overall health status, our findings have significant impacts on economic development in China.

Ends;

Now OUT in the Journal of Population Economics: Your spouse is fired! How much do you care?


Unemployment reduces the life satisfaction of the partner! However, while wives’ life satisfaction does not recover even two years after their partners becoming unemployed, husbands only react to their wives’ joblessness during the first year of unemployment.

Read more in:
Milena Nikolova & Sinem H. Ayhan: Your spouse is fired! How much do you care?
Journal of Population Economics, Vol. 32 (2019), Issue 3, pp. 799-844.

Journal Website. Download PDF of article for free – OPEN ACCESS

GLO Fellows Milena Nikolova and Sinem H. Ayhan

Author Abstract: This study is the first to provide a causal estimate of the cross-spouse subjective well-being consequences of unemployment. Using German panel data on married and cohabiting partners for 1991–2015 and information on exogenous unemployment entry due to workplace closure, we show that one spouse’s unemployment experience reduces the life satisfaction of the other partner. The estimated spillover is at least one quarter of the effect of own unemployment and is equally pronounced among female and male partners. In addition, while wives’ life satisfaction does not recover even two years after their partners becoming unemployed, husbands only react to their wives’ joblessness during the first year of unemployment. Our results are insensitive to income controls and the couple’s position in the income distribution, thus reflecting the non-pecuniary costs of unemployment. Although the income loss hardly explains the negative spillover effects of unemployment on spousal life satisfaction, we document large declines in spousal satisfaction with household income and living standards. This finding supports the argument that the costs of unemployment borne by indirectly affected spouses extend beyond the loss of consumption opportunities and might be rather related to social values attached to market work. Being robust to a battery of sensitivity checks, our findings imply that public policy programs aimed at mitigating unemployment’s negative consequences need to target not only those directly affected but also cohabiting spouses.

Ends;

Now Published in the Journal of Population Economics: Migrants Reduce the Work Health Risks of Natives

The value of immigrants for the UK has played an important role in the Brexit debate. A recent GLO Discussion Paper explores the effects of immigration on the allocation of occupational physical burden and work injury risk using data for England and Wales.
Migrants seem to reduce the risks for UK-born workers and they report report lower injury rates than natives. The paper is now published in the Journal of Population Economics and available online. See also below.

GLO Discussion Paper now published in the Journal of Population Economics, July 2019, Volume 32, Issue 3, pp 1009–1042; already 2.4k downloads on July 5, 2019! OPEN ACCESS….

See online on the Journal website.

Download PDF of the Journal of Population Economics article for free.

GLO Discussion Paper No. 215, 2018.

Immigration and the Reallocation of Work Health Risks – Download PDF
by Giuntella, Osea & Mazzonna, Fabrizio & Nicodemo, Catia & Vargas-Silva, Carlos

GLO Fellows Osea Giuntella, Fabrizio Mazzonna, Catia Nicodemo & Carlos Vargas-Silva

Author Abstract: This paper studies the effects of immigration on the allocation of occupational physical burden and work injury risks. Using data for England and Wales from the Labour Force Survey (2003–2013), we find that, on average, immigration leads to a reallocation of UK-born workers towards jobs characterized by lower physical burden and injury risk. The results also show important differences across skill groups. Immigration reduces the average physical burden of UK-born workers with medium levels of education, but has no significant effect on those with low levels. We also find that that immigration led to an improvement self-reported measures of native workers’ health. These findings, together with the evidence that immigrants report lower injury rates than natives, suggest that the reallocation of tasks could reduce overall health care costs and the human and financial costs typically associated with workplace injuries.

Ends;

Now published in the Journal of Population Economics: Anti-Minaret Votes and Migrants’ Location Choices in Switzerland

A recent GLO Discussion Paper explores the vote on the Swiss minaret initiative in 2009 as a natural experiment to identify the effect of newly revealed reservations towards immigrants on their location choices. The research finds that the probability of  immigrants to relocate to  a municipality that unexpectedly revealed stronger negative attitudes towards them is significantly reduced in the time after the vote. The effect seems to apply to all immigrant groups – Muslim, non-European and European -, and to be stronger for high-skilled immigrants. The paper is now published in the Journal of Population Economics and available online. See also below.

GLO Discussion Paper of the Month of January 2019 published in the Journal of Population Economics, July 2019, Volume 32, Issue 3, pp 1043–1095!

See online on the Journal website.

GLO Discussion Paper No. 305, 2019.

The Deterrent Effect of an Anti-Minaret Vote on Foreigners’ Location Choices – Download PDF
by Slotwinski, Michaela & Stutzer, Alois

GLO Fellows Michaela Slotwinski & Alois Stutzer

Abstract: In a national ballot in 2009, Swiss citizens surprisingly approved an amendment to the Swiss constitution to ban the further construction of minarets. The ballot outcome manifested reservations and anti-immigrant attitudes in regions of Switzerland which had previously been hidden. We exploit this fact as a natural experiment to identify the causal effect of negative attitudes towards immigrants on foreigners’ location choices and thus indirectly on their utility. Based on a regression discontinuity design with unknown discontinuity points and administrative data on the population of foreigners, we find that the probability of their moving to a municipality which unexpectedly expressed stronger reservations decreases initially by about 40 percent. The effect is accompanied by a drop of housing prices in these municipalities and levels off over a period of about 5 months. Moreover, foreigners in high-skill occupations react relatively more strongly highlighting a tension when countries try to attract well-educated professionals from abroad.

Ends;

Now online in the Journal of Population Economics: John Gardner on ‘Intergenerational altruism: Evidence from the African American Great Migration’

Intergenerational altruism explains between 24 and 42% of the Northward migration!

Read more in:

John Gardner: Intergenerational altruism in the migration decision calculus: evidence from the African American Great Migration, forthcoming in the Journal of Population Economics.

See Online First on the Journal website.

GLO Fellow John Gardner

Author Abstract: It is widely believed that many migrations are undertaken at least in part for the benefit of future generations. To provide evidence on the effect of intergenerational altruism on migration, I estimate a dynamic residential location choice model of the African American Great Migration in which individuals take the welfare of future generations into account when deciding to remain in the Southern USA or migrate to the North. I measure the influence of altruism on the migration decision as the implied difference between the migration probabilities of altruistic individuals and myopic ones who consider only current-generation utility when making their location decisions. My preferred estimates suggest that intergenerational altruism explains between 24 and 42% of the Northward migration that took place during the period that I study, depending on the generation.

Ends;

Now published in the Journal of Population Economics: Return migrants transfer social norms; evidence on female genital mutilation in Mali.

A recent GLO Discussion Paper found that girls living in localities with return migrants in Mali are less likely to be circumcised. This effect is driven mainly by the returnees from Côte d’Ivoire, suggesting that, in addition to punitive action against those who practice Female Genital Mutilation (FGM) or information campaigns, having lived in an African country where FGM practice is not customary is equally influential. This is evidence for the relevance of social remittances through return migration here by improving social norms. The paper is now accepted for publication in the Journal of Population Economics and already available online. See also below.

GLO Discussion Paper of the Month of March 2019 now forthcoming in the Journal of Population Economics!

See online on the Journal website.

GLO Discussion Paper No. 329, 2019.

Female genital mutilation and migration in Mali. Do return migrants transfer social norms? Download PDF
by Diabate, Idrissa & Mesplé-Somps, Sandrine

GLO Fellow Sandrine Mesplé-Somps.

Abstract:   In this paper, we investigate the power of migration as a mechanism in the transmission of social norms, taking Mali and Female Genital Mutilation (FGM) as a case study. Mali has a strong FGM culture and a long-standing history of migration. We use an original household-level database coupled with census data to analyze the extent to which girls living in localities with high rates of return migrants are less prone to FGM. Malians migrate predominantly to other African countries where female circumcision is uncommon (e.g. Côte d’Ivoire) and to countries where FGM is totally banned (France and other developed countries) and where anti-FGM information campaigns frequently target African migrants. Taking a two-step instrumental variable approach to control for the endogeneity of migration and return decisions, we show that return migrants have a negative and significant influence on FGM practices. More precisely, we show that this result is primarily driven by the flow of returnees from Cote d’Ivoire. We also show that adults living in localities with return migrants are more informed about FGM and in favor of legislation. The impact of returnees may occur through several channels, including compositional effects, changes in return migrants’ attitudes toward FGM, and return migrants convincing stayers to change their FGM practices.

Ends;

June 28, 2019: GLO President returns from Budapest to Bonn

In April – June 2019, Klaus F. Zimmermann has been the George Soros Visiting Chair Professor at the School of Public Policy of the Central European University (CEU) in Budapest. On June 28, he terminated this engagement and returned to the headquarters of the Global Labor Organization (GLO) in Bonn, Germany, which he leads as the President. Major activities in Budapest were:

  • June 20: Budapest, Hungarian Academy of Sciences. Research Seminar provided on Global Labor Economics. Report.
  • June 5: Budapest, Hungary. Central European University  (CEU), The Future of Europe after the European Elections, Chair of the Panel with Martin Kahanec (Budapest), Elsa Fornero (Turin) and Jonathan Portes (London). Report.
  • May 8: Budapest. George Soros Public Lecture, Central European University  (CEU), School of Public Policy. Report.
  • May – June: Budapest. Central European University (CEU), School of Public Policy. Lecture on Global Labor Economics for the CEU students. Report.

Forced by the Hungarian government, CEU is moving to Vienna. The Hungarian Academy of Sciences experiences a strict supervision of the Hungarian government. This is a sad development in a country, which was once the window to freedom.

In front of the CEU major building in Budapest:

With Research Assistant Svetlin Iliev at the CEU library (both left) and after the farewell lunch on June 27.

Thanks to a lovely city and its people for a wonderful visit at challenging times.



Ends;

Kigali, Rwanda, June 12-14, 2019. GLO Fellows supported as keynote speakers the 4th International Conference of Eastern Africa Business and Economic Watch (4th EABEW-2019)

Theme: “Inclusive Growth and Sustainable Socio-Economic Transformation”  
June 12-14, 2019, College of Business and Economics, University of Rwanda, Kigali , and at Hotel NOBLEZA, Kigali
 

  • June 12-14, 2019: Kigali, Rwanda. College of Business and Economics, University of Rwanda and Hotel Nobleza hosted the 4th EABEW Conference (International Conference of Eastern Africa Business and Economic Watch) on “Inclusive Growth and Sustainable Socio-Economic Transformation” with GLO support. GLO Fellows Manfred Fischedick, Almas Heshmati, Hans Lööf and GLO President Klaus F. Zimmermann were among the invited speakers. Almas Heshmati is the academic Lead of the GLO Research Cluster on “Labor Markets in Africa”. GLO Fellow Rama B. Rao , University of Rwanda, was the Chair of the Organizing Committee of the conference.
  • High quality invited and contributed papers in plenary and parallel sessions. Original evidence based theoretical, methodological, empirical research, policy or practice oriented research papers on the theme were presented by researchers, academicians, and industry practitioners in the areas of economics and business management and other interdisciplinary fields.
  • Examine the full program.

Keynote speakers and key organizers (from the right): Rama B. Rao (University of Rwanda and GLO), Manfred Fischedick (Wuppertal Institute for Climate, Environment & Energy, Germany, and GLO), Hans Lööf (Royal Institute of Technology, Sweden, and GLO), Benson Honig (McMaster University), Faustin Gasheja (Principal, College of Business and Economics, University of Rwanda ), Almas Heshmati (Jönköping International Business School, Sweden, and GLO), and Klaus F. Zimmermann (Central European University, Budapest, Hungary, and President, GLO, Bonn, Germany).

Keynote speeches were:

Klaus F. Zimmermann: The Value of Global Labor Mobility

Manfred Fischedick: Climate Change and Sustainable Socio-Economic Transformation

Hans Lööf: Knowledge Spillover, Innovation and Exporting

Almas Heshmati: Sustainable Development in Rwanda

Benson Honig: Researching the “other”: Successful Approaches and Ongoing Challenges Toward Generalizability

Scenes from the conference at the University of Rwanda (first row on June 12) and in the conference facilities of Hotel Nobleza (second row on June 13 – 14). Second and third picture, person from the right: GLO Fellow Lars Hartvigson (Jönköping University, Sweden).

GLO President Klaus F. Zimmermann (i) in front of the Nobleza conference center, (ii) after his keynote speech with university representative, (iii) discussing on the right and (iv) with the speakers and some participants of the sessions he chaired.

Ends;

June 26, 2019. Friederike Welter & André Pahnke on: The German Mittelstand: an antithesis to Silicon Valley entrepreneurship? GLO Research for Policy Note No. 2

Since 2013, GLO Fellow Friederike Welter is head of the Institut für Mittelstandsforschung (IfM) Bonn, a policy-oriented independent research institute on small business and entrepreneurship issues (www.ifm-bonn.org). She also holds a professorship at the University of Siegen. Friederike Welter has broad experiences in applied and policy-related research on entrepreneurship and small business, much of it in an international context. She is a member of several policy-related advisory boards for federal and state ministries and for international bodies. She was President of the European Council for Small Business and Entrepreneurship (2007-2009). For her work on small business and entrepreneurship, she has been honored as ECSB Fellow (2011), as Wilford L. White Fellow of the International Council of Small Business (ICSB, 2014) and she recently received the Greif Research Impact Award (2017). The Frankfurter Allgemeine Zeitung regularly lists her among the most influential economists in Germany.

André Pahnke has studied economics at the Leibnitz University Hannover. First, he worked as a research fellow at the Institut für Arbeitsmarkt- und Berufsforschung, Nuremberg. Since 2011, Dr. Pahnke is a researcher at the Institut für Mittelstandsforschung (IfM), Bonn. His main research fields are International Comparative SME Research, Finance and Apprenticeship Training.

GLO Research for Policy Note No. 2 – Theme 3. Future of work

The German Mittelstand: an antithesis to Silicon Valley entrepreneurship?

by Friederike Welter & André Pahnke

At the international level, many policy makers, academics and business observers are interested in understanding Germany’s “secret economic weapon”, its Mittelstand. It is therefore not at all surprising that foreign officials and business people are making pilgrimages to Germany to learn from the Mittelständler. At the same time, German politicians, journalists, and entrepreneurs travel to the Silicon Valley, to learn from what they perceive to be a vibrant start-up ecosystem, fostering the seemingly endless creation of highly innovative, technology-orientated, venture capital-backed gazelles and unicorns. In meetings with policy makers, one of us is regularly asked why Germany could not have its own Microsoft, Google, Amazon or Facebook. Such statements reflect a current debate in Germany: some perceive the German Mittelstand as a low growth, low-tech and non-innovative approach while in contrast the Silicon Valley entrepreneurship is regarded as the salvation for a doomed German economy. In our recent paper (Pahnke and Welter, 2019), we therefore set out to critically review the assumption of the Mittelstand as an antithesis to Silicon Valley entrepreneurship. We suggest that future research and policies should stand back from dichotomies such as “Mittelstand versus Silicon Valley entrepreneurship” and instead acknowledge the vibrant diversity and heterogeneity of entrepreneurship.
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What we should know

  • Mittelstand is not just about size. There is some confusion about the meaning of the term “Mittelstand”, not only in the media but also among academia. It is often used as a synonym to Small Medium Entreprises (SMEs). However, the small size of Mittelstand businesses is rather a by-product of other key characteristics. Mittelstand entrepreneurs should be first characterized by their independent ownership. They are typically owned by an individual or a family, who is actively involved in the strategic development and management decision-making of their companies and bears the entrepreneurial risks and liabilities of these decisions. The identity of ownership and management should therefore be seen as a key feature when studying Mittelstand ventures.
  • Mittelstand is a mindset. The ideal business model of the Mittelstand combines ownership, leadership and organizational characteristics with individual value systems and attitudes. Due to a number of positive connotations with the term “Mittelstand” in Germany, even large companies – in which the identity feature of the ownership and management is not present – still perceive themselves as Mittelstand. Therefore, emotions, passion and feelings of belonging, play an important role for understanding the Mittelstand.
  • Mittelstand is important for the economy and the society. The Mittelstand is generally considered to be the backbone of the German economy because of its economic contribution in terms of annual sales, export turnover, net value added, employment generation and apprenticeship training. Many studies illustrate, in addition, its substantial contribution to both the economy and the society. Beyond the provision of employment, goods and services, the specific ownership-management structure of the Mittelstand is associated with high levels of social, inter-generational, and regional responsibilities.
  • Mittelstand is as innovative but often in a different way. Regarding the perceived lack of “innovativeness” in Mittelstand firms in comparison to Silicon Valley entrepreneurship, we argue that this is related to a narrow view of innovation. As soon as we apply a wider understanding of what constitutes innovation, the Mittelstand is by no means less innovative. Mittelstand and Silicon Valley entrepreneurship differ with respect to innovations because of different industry structures and target groups. While Silicon Valley innovations are very consumer-oriented and visible to all of us, Germany’s digital and disruptive technologies are first and foremost “deep tech” hidden in products and processes of other companies.
  • Mittelstand has different patterns of employment growth. Silicon Valley entrepreneurship is generally seen as creating many jobs in a relatively short period of time. In contrast, employment growth in Mittelstand ventures has been slower and happening over a longer period of time; although there are also gazelles in Germany. Such comparisons between the Silicon Valley and the Mittelstand are however problematic: they compare apples (a single high-growth company) to oranges (a whole segment of the German economy).

We need more, not less attention to the Mittelstand!

For obvious reasons, the Mittelstand is often seen as an exclusively German phenomenon: it has deep roots in the German history; it stands for a specific German variety of capitalism; and it is strongly influenced by previous and current institutional arrangements in Germany. In our view, however, the Mittelstand is an excellent example of every day entrepreneurship, demonstrating how entrepreneurship that builds on a deep sense of responsibility and solidarity can shape an economy and society and contribute to its world standing. In this regard, the core characteristics of the Mittelstand stand in stark contrast to Silicon Valley entrepreneurship; although one should not overlook important similarities, too. Overall, the Mittelstand is a vibrant segment of the economy. It is competitive, innovative as well as growth oriented; sometimes by other means that are less visible than the well-known uni- or decacorns from the Silicon Valley.

References

Berghoff, H. (2006). The End of Family Business? The Mittelstand and German Capitalism in Transition, 1949-2000. The Business History Review, https://doi.org/10.2307
/25097190

Fear, J. (2014). The secret behind Germany’s thriving ‘Mittelstand’ businesses is all in the mindset. The Conversation. http://theconversation.com/the-secret-behind-germanys-thriving-mittelstand-businesses-is-all-in-the-mindset-25452.Accessed 28 November 2017.

Gantzel, K.-J. (1962). Wesen und Begriff der mittelständischen Unternehmung. Abhandlungen zur Mittelstandsforschung, 4. Wiesbaden: Springer.

Gärtner, C. (2016). Deep-tech in good old Germany: digitale hidden champions. XING Insider. https://www.xing.com/news/insiders/articles/deep-tech-in-good-old-germany-digitale-hidden-champions-532499. Accessed 28 Nov 2017.

Pahnke, A.; Welter, F. (2019): The German Mittelstand: antithesis to Silicon Valley entrepreneurship?, Small Business Economics,  52 (2), 345-358.

Ross Range, P. (2012). The German Model. Report. Handelsblatt. http://www.handelsblatt.com/politik/konjunktur/report-the-german-model
/6966662.html. Accessed 28 November 2017.

Logue, D. M., Jarvis, W. P., Clegg, S., & Hermens, A. (2015). Translating models of organization: Can the Mittelstand move from Bavaria to Geelong? Journal of Management & Organization, 21(01), 17-36.

The Economist (2014). German lessons: Many countries want a Mittelstand like Germany’s. It is not so easy to copy. http://www.economist.com/news/business/21606834-many-countries-want-mittelstand-germanys-it-not-so-easy-copy-german-lessons. Accessed 28 November 2017.

NOTE: Opinions expressed here are those of the authors and not of the GLO, which has no institutional position.

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Childcare services enable female labor market success in Vietnam. GLO Discussion Paper of the Month May 2019 and other GLO DP’s of May freely accessible.

Accessible childcare services enhance women’s labor market performances and reduce gender gaps, now supported by research for Vietnam. The GLO Discussion Paper of the Month of May 2019  explores the relationship between the use and availability of childcare and maternal employment in the context of this emerging Asian country.

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: May

GLO Discussion Paper No. 349 Childcare and Maternal Employment: Evidence from Vietnam – Download PDF
by Dang, Hai-Anh H. & Hiraga, Masako & Nguyen, Cuong Viet

GLO Fellow Hai-Anh Dang

Abstract:   Little literature currently exists on the effects of childcare use on maternal labor market outcomes in a developing country context, and recent studies offer mixed results. We attempt to fill this gap by analyzing several of the latest rounds of the Vietnam Household Living Standards Survey spanning the early to mid-2010s. Addressing endogeneity issues with a regression discontinuity estimator based on children’s birth months, we find a sizable effect of childcare attendance on women’s labor market outcomes, including their total annual wages, household income, and poverty status. The effects of childcare attendance differ by women’s characteristics and are particularly strong for younger, more educated women. Furthermore, childcare has a medium-term effect and positively impacts men’s labor market outcomes as well.

GLO Discussion Papers of May 2019

353 The Effect of 9/11 on Immigrants’ Ethnic Identity and Employment: Evidence from Germany – Download PDF
by Delaporte, Isaure

352 The effect of immigration on natives’ well-being in the European union   – Download PDF
by O’Connor, Kelsey J.

351 Who is in favor of immigration  – Download PDF
by Epstein, Gil S. & Katav-Herz, Shirit

350 The Immigrant-Native Wage Gap in Germany Revisited – Download PDF
by Ingwersen, Kai & Thomsen, Stephan L.

349 Childcare and Maternal Employment: Evidence from Vietnam – Download PDF
by Dang, Hai-Anh H. & Hiraga, Masako & Nguyen, Cuong Viet

348 Employment Effects of Offshore Oil and Gas Regulations – Download PDF
by Payson, Steven & Sloboda, Brian W.

347 Works Councils and Organizational Gender Policies in Germany – Download PDF
by Jirjahn, Uwe & Mohrenweiser, Jens

346 The Effect of Education on Health: Evidence from the 1997 Compulsory Schooling Reform in Turkey – Download PDF
by Baltagi, Badi H. & Flores-Lagunes, Alfonso & Karatas, Haci M.

345 Ethnic Identity and the Employment Outcomes of Immigrants: Evidence from France – Download PDF
by Delaporte, Isaure

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 GroningenDP@glabor.org  

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28th EBES Conference: Some impressions from May 29.

May 29-31: Coventry, UK. 28th EBES conference. The Eurasia Business and Economics Society (EBES) met with support of the Global Labor Organization (GLO) at the Coventry Business School. For the full program see here. EBES President Klaus F. Zimmermann, who is also the President of GLO, had opened the EBES event.

Opening of the conference (from the left):
Heather McLaughlin, Academic Dean, Faculty of Business and Law, Coventry University, United Kingdom
Panagiotis Andrikopoulos, Executive Director and Professor of Finance, Centre for Financial and Corporate Integrity (CFCI), Coventry University, Coventry, United Kingdom
Uchenna Tony-Okeke, Director of the Coventry Business School Trading Floor, Faculty of Business and Law, Coventry University, United Kingdom
Mehmet Huseyin Bilgin, EBES Vice-President, GLO, & Istanbul Medeniyet University, Turkey

EBES Fellowship to David Audretsch (left) , Indiana University, USA, introduced by Marco Vivarelli (right):

GLO members were involved in two important conference panel sessions:

EBES & GLO Panel on “The Future of Europe and Brexit after the EU Election”:

09:30-10:30
Chair & Introduction: Klaus F. Zimmermann, President, EBES & GLO & Central European University, Budapest, Hungary
Mehmet Huseyin Bilgin, EBES, GLO, & Istanbul Medeniyet University, Turkey
Matloob Piracha, Director GLO & University of Kent, United Kingdom
Dorothea Schäfer, DIW Berlin, GLO, & Jönköping University, Sweden
Marco Vivarelli, GLO& Universita Cattolica del Sacro Cuore in Milano, Italy

GLO Director Matloob Piracha

JOURNAL EDITORS SPECIAL SESSION: How to Publish in WOS Journals?

14:30-15:50
Klaus F. Zimmermann, Editor-in-Chief, Journal of Population Economics (SSCI)
David B. Audretsch, Editor-in-Chief, Small Business Economics (SSCI)
Marco Vivarelli, Editor-in-Chief, Eurasian Business Review (SSCI)
Dorothea Schäfer, Editor-in-Chief, Eurasian Economic Review (Scopus & ESCI)

Editor-in-Chiefs (from the right): David Audretsch (Small Business Economics), Marco Vivarelli (Eurasia Business Review) & Klaus F. Zimmermann (Journal of Population Economics) — all present in Coventry

EBES President Zimmermann and the effective EBES Conference Team (from the left):
Aylin Akin, Merve Erdemir, Ugur Can and Ender Demir.

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GLO Fellows met on June 5 at the CEU in Budapest to discuss the future of Europe after the recent elections

Quo Vadis Europe after the European elections? Martin Kahanec and Klaus F. Zimmermann (both Budapest) debated on June 5, 2019 with Elsa Fornero (Turin) and Jonathan Portes (London) the consequences and perspectives for Europe in front of a larger audience assembled at the Central European University in Budapest. Zimmermann, President of the Global Labor Organization (GLO), was chairing and moderating the event; Fornero, Kahanec and Portes are GLO Fellows.

The common economic and political development in Europe, in particular labor mobility, labor market reforms, evidence-based policy making and the role of scientists have been key elements of the public debate about the future of Europe. EU-pessimism has become stronger and stronger, and the recent EU elections provide guidance about the potentials for a recovery of the European idea in the face of Brexit and a possible dismantling of European institutions. The panel brought together experienced academic exponents combing research with policy for debate at this critical point of European history.

Klaus F. Zimmermann, George Soros Chair Professor, School of Public Policy, Central European University (CEU), President of the Global Labor Organization (GLO), frequent advisor to the EU Commission and European governments and Former President of the German Institute for Economic Research (DIW Berlin); Chair & Panelist

  • Populism and anti-globalism is on the rise.
  • Evidence-based policymaking is losing weight.
  • The value of migration and international institutions is questioned.
  • The freedom of academic institutions gets under threat.
  • Scientist are challenged to analyze and to respond to this development when also their insights are ignored.
  • Voters move away from centrist parties, who lose majority.
  • Pro-European liberals and greens become stronger and are now a third force.
  • Anti-parties (anti-Europe, anti-migration) are stronger, but not dramatically.
  • This is all a vote for a revival of the European idea.
  • Facing strong global challenges from Asia, Africa and the USA, Europe needs to stick together and develop from its strength.
  • More Europe not less is needed in the interest of the European nations and its people.
  • This implies re-inventing the European idea and export some of its great institutions: social institutions, education and training and labor mobility.

Elsa Fornero, Professor of Economics, University of Turin, Department of Business and Economics, Scientific Coordinator of CeRP – Center for Research on Pensions and Welfare Policies and Former Minister of Labor, Social Policies and Gender Equality in Italy; Panelist

  • Reforms must live in society with the people – workers, politicians, pensioners, etc. It is not a purely technical problem.
  • We, technocrats, believed in reforms but the society did not accept them. The society misunderstood the policies as austerity measures.
  • Economic models are dealing with prosperity, but real policymaking is about elections, which are always around the corner.
  • The populists saw the weak points of reformists and the discontent of people and exploited them.
  • Labor mobility and work in Europe should be reestablished as a right of the individuals and this should be in the center of the new Europe.
  • We should strengthen the civil society – politicians and the elites should go out and talk to the people.

Martin Kahanec, Professor and Dean of the School of Public Policy, Central European University (CEU), Budapest, and frequent advisor to the EU Commission; Panelist

  • These elections showed the discontent between East and West, South and North, globalists and localists
  • In the 90s the region had a dream – get rid of the Soviets, which unified the societies. And move back to Europe – Schengen, EU, Eurozone, etc. However, after they joined the EU there is a vacuum of dreams. What is our next mission?
  • Although the lowest election participation was in Slovakia, it is a EU positive country.
  • Elites and workers feared migration from outside of Europe. But not internal labor mobility.
  • Internal mobility helps build bridges over the old cleavages, but is also beneficial economically.
  • Europe should have a policy for external migration which tackles the aging population challenge. The EU needs a migration framework, which is economically profitable, but also needs to have control and be predictable.

Jonathan Portes, Professor of Economics and Public Policy, Senior Fellow, UK in a Changing Europe, Department of Political Economy, King’s College London, Former Chief Economist of the UK government, Former Director of the National Institute of Economic and Social Research; Panelist

  • The long term forces behind Brexit were not migration, but that the EU is not only an economic but also a political project. And the British felt that their positions in the world were threatened. Sentiments in this direction grew after the world economic crisis.
  • The British attitude towards migration has changed after the referendum, becoming more positive. It has to do with a drop in the migration from the EU, and an increase from the outside. The gaps created were filled with workers from outside of the EU, and the need was better understood.
  • The lack of control scared people because they wanted the “right” immigration
  • If one provides a sense of control and of the existing trade-offs, the situation will approve.
  • Thanks to the failure of May we are likely to have a hard Brexit or to reverse the results and stay in the EU. There is no middle ground anymore. Even if in a second vote the result would be “remain” – the issue would not be settled.
  • People thought that Brexit would be easy and not painful; they now realize how wrong they were.
  • If Germany turns into success its refugee immigration, then Germans would send to Europe a tremendously positive example. 

From the left during the panel: Klaus F. Zimmermann, Chair, Budapest and Bonn; Jonathan Portes, London; Elsa Fornero, Turin; and Martin Kahanec, Budapest and Vienna.

After the panel during a joint dinner from the left: The Honorable Tanya Cook, USA; CEU Professor Anil Duman and GLO Fellow; Turin Professor and Former Labor Minister Elsa Fornero; CEU Dean and Professor Martin Kahanec; and Klaus F. Zimmermann, George Soros Chair, CEU, and GLO President.

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28th EBES conference takes place at Coventry/UK on May 29-31, 2019.

May 29-31: Coventry, UK. 28th EBES conference. The Eurasia Business and Economics Society (EBES) meets with support of the Global Labor Organization (GLO) at the Coventry Business School. For the full program see here.

EBES President Klaus F. Zimmermann, who is also the President of GLO, will open the EBES congress on Wednesday. GLO members are involved in two important conference panel sessions, among others, on Wednesday May 29:

EBES & GLO Panel on “The Future of Europe and Brexit after the EU Election”:

09:30-10:30
Chair & Introduction: Klaus F. Zimmermann, President, EBES & GLO & Central European University, Budapest, Hungary
Mehmet Huseyin Bilgin, EBES, GLO, & Istanbul Medeniyet University, Turkey
Matloob Piracha, Director GLO & University of Kent, United Kingdom
Dorothea Schäfer, DIW Berlin, GLO, & Jönköping University, Sweden
Marco Vivarelli, GLO& Universita Cattolica del Sacro Cuore in Milano, Italy

JOURNAL EDITORS SPECIAL SESSION: How to Publish in WOS Journals?

14:30-15:50
Klaus F. Zimmermann, Editor-in-Chief, Journal of Population Economics (SSCI)
David B. Audretsch, Editor-in-Chief, Small Business Economics (SSCI)
Marco Vivarelli, Editor-in-Chief, Eurasian Business Review (SSCI)
Dorothea Schäfer, Editor-in-Chief, Eurasian Economic Review (Scopus & ESCI)

Ends;

Budapest June 5, 2019. Public debate at the Central European University about the future of Europe after the European elections.

Quo Vadis Europe after the European elections? Voters moved away from centrists parties, but have stabilized Europe-friendly forces. Is this a new chance for Europe? Is climate change the challenge to develop the joint European vision?

GLO Fellows Elsa Fornero (Turin), Jonathan Portes (London), Martin Kahanec (Budapest) and GLO President Klaus F. Zimmermann (both Budapest and Bonn) debate the consequences and perspectives for Europe.

Time and place: Wednesday, June 5, 2019. 5:30 pm – 7:00 pm. Nador utca 15, Tiered 103. Central European University (CEU), Budapest. The panel debate will be public.

Further details about the event see below.

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May 13, 2019. Azita Berar on ‘ILO: Celebrating a century of international cooperation for social justice’. GLO Policy News No.1

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Azita Berar Awad is Director Policy of the Global Labor Organization (GLO), and Former ILO Director, Employment Policy

GLO Policy News No. 1 – Theme 3. Future of Work

ILO: Celebrating a century of international cooperation on the governance of labour

by Azita Berar Awad

This year is the Centenary of the International Labour Organization (ILO). Since its establishment in 1919,  by the Versailles Peace Treaty at the end of the first World War, the Organization has shown a remarkable resilience, unique amongst the multilateral institutions of global governance. Over 100 years, ILO has survived another major war. It also surfed over and navigated through  several global and regional economic and social crises and tectonic geopolitical shifts among its constituent members. Created in 1919, on the promise of sustaining peace by promoting social justice, the Centenary celebrations across the world, are a good opportunity to reflect not only on past achievements, but on the relevance of this  proposition for the future.

The Future of Work is the central theme of ILO’s Centenary deliberations. To this effect, an independent Commission composed of 27 members representing diverse interests was established in 2017 and issued its report in January 2019. The International Labour Conference, the main governance organ of the institution, bringing together governments, employers’ and workers organizations from 187 countries, will meet in June 2019 in Geneva  to draw its own conclusions in the form of a Centenary Declaration.

In this GLO Policy News, six issues drawn from a review of ILO’s rich history are highlighted. (See for a list of publications on ILO history.) They relate to the Organization’s foundational values and their evolution in a century of economic, social and technological transformations. On each issue,  we bring out key challenges, the resolution of which  will  shape ILO’s effectiveness in its second century.
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What we should know

  • The ILO was born at the intersection of the twin quests for International Peace and that for Social Justice. Its foundational act, the ILO Constitution, is  Part XIII of the Peace Treaty that put an end to World War I. It was adopted by the Versailles Peace Conference on 28 April 1919. The Constitution envisioned a new international order, against a backdrop of tremendous human sufferings during World War I, widespread poverty and appalling conditions of work in most of the 19th Century and early 20th Century. The  industrial revolution had brought about progress, but also misery and injustice. Protest,  social unrest and revolution had ensued. This vision in which “lasting peace can be established only if based on social justice”, resonates strongly  a century later, for all those concerned with the rising and widening economic and social inequalities, for the left-behind of globalization, and for all those who look to the future with apprehension. Will there will be work for all who seek to work and will it be decent, they wonder. While international wars have diminished in recurrence and intensity, millions of people are caught in numerous internal strife and protracted crises of various types in different regions of the world. Current conflicts that have dreadful internal and cross-border consequences,  such as the movements  of internally displaced persons (IDPs), economic migrants  and refugees seeking asylum.
  • ILO is the only of the three international institutions established by the Versailles Treaty still functioning a century later. The League of Nations and the Permanent Court of Justice, the other two institutions,  were paralyzed and later formally abolished to be replaced by the new global governance system of the United Nations. The ILO became the first Specialized Agency within the new frame of the United Nations System, soon joined by several other new international institutions with dedicated technical specialization.
  • The Philadelphia Declaration, adopted on the 10th May of 1944,  and embedded later into the ILO Constitution, while maintaining the ILO’s primary function of developing international legislation to promote humane conditions of work, broadened the original vision in several ways. (To date, there are 189 Conventions and 205 Recommendations and 4 Protocols covering a wide range of work related issues and adopted after elaborate international tripartite negotiations.) With emphasis laid on human rights, including the freedom of association (for workers and employers),  the Philadelphia Declaration is a precursor to the Universal Declaration for Human Rights adopted in 1948 and a source of inspiration for many rights included in  the two international Covenants of Civil and Political Rights and Social, Economic and Cultural rights adopted in 1966.
  • The Philadelphia Declaration also introduced the objective of full and freely chosen employment and the commitment to promote employment, acquisition of skills, and regulation of labour migration as contributing to full employment. Despite the Cold War and the confrontation between competing social ideals, ILO’s model of international cooperation adapted and evolved relatively well in the 1950’s and 1960’s, in a context of high growth, full employment and welfare state in industrial countries. During the same period, the decolonization process which saw the membership of the Organization grow rapidly from 40 countries in 1919 to 187 today, gave more sense to the universal relevance of the ILO while bringing out the different and diverse realities of the world of work in developing countries. The World Employment Programme launched in 1969, at mid-point in ILO’s history, responded to this developmental challenge by treading new field, uncharted before. Examples are its pioneering work on rural poverty, its coining of the concept of the informal sector and its innovative lens on the gendered division of labour.
  • The Philadelphia Declaration clearly  proclaimed the primacy of human and social progress “in conditions of freedom and dignity, of economic security and equal opportunity” over economic and financial considerations. It mandated the ILO to examine all international economic and financial policies in the light of this primacy. We know that the globalization story in the 1980’s and the 1990s, and the neo-liberal model that sustained it and expanded it to all regions, unfolded differently. The International Financial Institutions (IFI) set  policy frameworks  based on the primacy of financial solvency, despite its high social adjustment costs. The policy responses to the 1997 Asian financial crisis and to the 2007/2008 global financial crisis, have shown that policy coherence, between the IFIs and the United Nations system, when addressing the social and economic challenges of globalization or responding to major global economic and financial crises, remains a challenge. The ILO’s 1998 Declaration on Fundamental Principles and Rights at Work represents a rare consensus platform, a level playing field in globalizing economies in respect of the core labour rights  of elimination of child and forced labour, non-discrimination at work, and freedom of association.
  • It is good to recall that the ILO is the only United Nations agency that is not only inter-governmental but embodies an enlarged democratic system representing all three parties of the world of work. Since its foundation, the ILO functions on the premise of tripartite dialogue and cooperation at national and international levels. Governments, employers’ and workers’ organizations voice their views, negotiate and vote independently in all ILO’s organs and working processes. This pioneering and revolutionary model of tripartism is obviously  confronted with its own challenges. A major one is the representational challenge. The declining membership of trade unions reduces  their bargaining power and hence their voice in policy-making. The Employers’ organizations often do not include the two extremes of the business sector, that is the major multinationals and global supply chains that operate across borders and different national legislative frameworks, often setting their own ethical agenda and codes of conduct. They do not encompass either the myriad micro and small business operators , most of which are in the informal economy. The  growing movement of civil society organizations (other than employers and workers organizations) also claims a more active and systemic engagement with ILO.

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This brief could only touch on a few issues. It is merely an invitation to dig deeper into the ILO history, many aspects of which are yet to be researched and written. Looking into the second centenary, this is an invitation to reflect on the philosophical notions of human work and social justice and on the values of democratic dialogue and international cooperation in a context of fast technological disruptions such as the artificial intelligence and all embracing digitalization, environmental degradation and widening inequalities. Will the human agency prevail in innovative social engineering and in shaping the future in fairness in a more complex and uncertain world?

NOTE: Opinions expressed here are those of the author and not of the GLO, which has no institutional position.
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The long shadow of Stalin: Mistrust across former USSR countries. GLO Discussion Paper of the Month April and other GLO DP’s of April.

The GLO Discussion Paper of the Month of April 2019 provides a historical explanation on within-country differences in levels of trust. Specifically, the paper finds that the lower trust levels present in former USSR countries can be traced back to the system of forced prison labor present during Stalin’s regime, which created terror and mass repression, causing individuals to lose trust in neighbors, institutions and society at large.

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: April

GLO Discussion Paper No. 344, 2019. Stalin and the origins of mistrust – Download PDF

by Nikolova, Milena & Popova, Olga & Otrachshenko, Vladimir 

GLO Fellows Milena Nikolova and Olga Popova 

Abstract:   We show that current differences in trust levels within former Soviet Union countries can be traced back to the system of forced prison labor during Stalin’s rule, which was marked by high incarceration rates, repression, and harsh punishments. We argue that those exposed to forced labor camps (gulags) became less trusting and transferred this social norm to their descendants. Combining contemporary individual-level survey data with historical information on the location of forced labor camps, we find that individuals who live near former gulags have low levels of social and institutional trust. Our results are robust to a battery of sensitivity checks, which suggests that the relationship we document is causal. We outline several causal mechanisms and test whether the social norm of mistrust near gulags developed because of political repression or due to fear that inmates bring criminality. As such, we provide novel evidence on the channels through which history matters for current socio-economic outcomes today.

GLO Discussion Papers of April 2019

344 Stalin and the origins of mistrust – Download PDF
by Nikolova, Milena & Popova, Olga & Otrachshenko, Vladimir

343 Intergenerational Mobility: An Assessment for Latin American Countries – Download PDF
by Doruk, Ömer Tuğsal & Yavuz, Hasan Bilgehan & Pastore, Francesco

342 The impact of Brexit on International Students’ Return Intentions – Download PDF
by Falkingham, Jane & Giulietti, Corrado & Wahba, Jackline & Wang, Chuhong

341 Labour mobility and interprovincial trade in Canada – Download PDF
by Aziz, Nusrate & Mahar, Gerry

340 Should I stay or should I go? Migration and job-skills mismatch among Italian doctoral recipients Download PDF
by Alfano, Vincenzo & D’Uva, Marcella & De Simone, Elina & Gaeta, Giuseppe Lucio

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 GroningenDP@glabor.org  

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GLO President delivered George Soros Lecture on May 8, 2019 at the Central European University (CEU) in Budapest

In a public speech at the Central European University on May 8, 2019, GLO President Zimmermann delivered his George Soros Lecture on “Global Labor Economics: Challenges and Benefits”. Martin Kahanec, Professor, GLO Fellow and Head of the School of Public Policy, was introducing Zimmermann to a larger group of interested participants, and chaired the discussion after the talk. Kahanec and Zimmermann had published various books and articles together dealing with global labor economics, in particular on the consequences of EU enlargement and migration.

Two successful scientists, GLO leaders, co-authors & friends

Klaus F. Zimmermann is the George Soros Chair Professor at the School of Public Policy of the Central European University (CEU) teaching a student class on Global Labor Economics in the 2019 Spring term. He is also the President of the Global Labor Organization (GLO), the Section Chair for Economics, Business and Management of the Academia Europaea, the European Academy of Science, and Professor Emeritus of Bonn University.

Summarizing major aspects from his class, Zimmermann explained in the lecture why global labor economics can contribute forcefully to the wealth of nations. Connecting his work to Adam Smith, he suggested that global labor mobility is the ultimate consequence of the division of work which is the driving force behind economic development and global wellbeing. While most research on global labor economics documents that migration is beneficial for the economy (economic efficiency) and hence the basis of wellbeing of people, he argues that it is necessary to develop multi-ethnic social and cultural identities to make this outcome also socially effective in society.

In its Winter 2019 issue of “The International Economy”, the Washington DC based magazine of international economic policy, has featured a prominent symposium of views on “Why is Populism on the Rise and What Do the Populists Want?”. Klaus F. Zimmermann, the President of the Global Labor Organization (GLO), Bonn University Professor and UNU-MERIT/Maastricht affiliated economist, who is currently the George Soros Chair Professor at the School of Public Policy of the Central European University (CEU) in Budapest, had been asked to contribute to this debate. The link to the full text of the symposium is here. Please find the contribution of Zimmermann also below, which is in close relationship to his George Soros Lecture.

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Summer School on “The Role of Education in National and Regional Socioeconomic Development” on July 8–12, 2019 in Moscow. Deadline May 15.

GLO Fellow Harry Patrinos (World Bank) speaks at a new International Summer School on the role of education for socio-economic development. Participants are invited as indicated below. World Bank and the Higher School of Economics organize this in Moscow.

The World Bank and the Higher School of Economics welcome applications for the upcoming

First International Summer School:

“The Role of Education in National and Regional Socioeconomic Development”

July 8–12, 2019, Moscow

We encourage applications by students and early-career researchers from Russia, the CIS, Eastern Europe and China who pursue various perspectives in the Economics of Education and Education Policy. The Summer School aims to demonstrate the unity of theoretical and applied research on the Economics of Education and Education Policy. The main goal of the Summer School is to contribute to the development of theory and practice in the Economics of Education and Education Policy by foregrounding the latest international research and practice in this field.

The School Agenda will focus on:

— Challenges and opportunities in modern education policy
— Role of education in national socioeconomic development
— Role of governance in linking education and development
— Development of Human Capital 2.0 as a basis for the conceptual study of Economics of Education and Education Policy
— New trends in the labor market: the key challenges for the education system
— How to assess the effectiveness and returns on investment in education
— How to design, conduct and present research and applied projects.

The speakers are accomplished scholars and leading experts in the Economics of Education and Education Policy:

During the Summer School, students and young researchers will have the opportunity to build up their knowledge in the Economics of Education and Education Policy, as well as to discuss their individual research and applied projects.

The working language of the Summer School is English.

Requirements:

— Strong command of spoken and written English
— Current research or applied project in the Economics of Education and Education Policy.

Venue: 16/10 Potapovsky per., Institute of Education, HSE, Moscow, Russia.

Participants of the Summer School will be selected on a competitive basis. Please note that travel and accommodation are paid by participants. If necessary, a visa invitation can be arranged.

Applications are accepted until May 15, 2019.

The Organizing Committee will announce shortlisted participants by May 30, 2019.

To apply, please submit the following in English:

— Completed registration form
— Summary of the project that you will present at the Summer School (500–1,000 words)
— Motivational letter (300–500 words)
— CV.

Оnline registration form

The Organizing Committee:

I.A. Sloev (PhD, Chair of the Academic Council of the Master’s Programs “Education Economics and Management” and “Evidence-based Educational Policy,” Institute of Education, HSE), P.P. Zavalina (Consultant, Education Global Practice, World Bank), E.A. Savelyonok (PhD, Academic Director of the Master’s Program “Education Economics and Management,” Institute of Education, HSE), A.V. Garmonova (Director of Curriculum and Instruction, Institute of Education, HSE), I.D. Froumin (PhD, Head of the Institute of Education, HSE).

For questions, please contact:

— Igor Sloev: Tel: +7 (495) 772-9590*23086, email: isloev@hse.ru

— Polina Zavalina: Tel: +7 (499) 921-2054, email: pzavalina@worldbank.org

— Evgeniy Savelyonok: email: esavelyonok@hse.ru

GLO Director Matloob Piracha speakes on May 6, 2019 at Macquarie University, Sydney, Australia on Ethnic Identity and the Labor Market

Invitation to the next seminar in the Centre for Workforce Futures Seminar Series, Macquarie University, Sydney, Australia, on May 6, 2019.

Topic:                   Ethnic Identity and Immigrants’ Labour Market Outcomes

Speaker:            Dr Matloob Piracha
Venue:                120 Lend Lease Room, 1 Management Drive, Macquarie University NSW 2109
When:                 Monday 6th May 2019
Time:                   2:00 pm – 3:30 pm

Abstract:

In this seminar, Dr. Piracha will address the following questions: i) what are the determinants of ethnic identity, and (ii) whether those who identify with the host country culture have a higher probability of getting a job as well as better wages than those who identify more with the culture of their country of origin. The paper will use the Longitudinal Survey of Immigrants to Australia (LSIA), which consists of data collected for two cohorts of immigrants. The first cohort entered the country in 1993–1995 while the second cohort entered in 2000–2001. The paper will consider what role ethnic identity plays in the labour market integration of immigrants. It will then compare the determinants of ethnic identity of the cohort that entered before the immigration policy change in 1995, when the level of English required in the selective (points-based) system increased, with the one that entered after the change.

Dr Matloob Piracha:

Dr Matloob Piracha is a Senior Lecturer (Associate Professor) at the University of Kent, UK. He has extensive experience of working on migration and related issues and has published a number of papers on the impact of migration on sending and receiving countries as well as on migrants and their left-behind families. Matloob has acted as a consultant or a collaborator for a number of international organisations including the OECD, UK Department for International Development (DfID) and the World Bank. He is also Director of the Global Labour Organisation (GLO), a virtual network connecting eminent scholars and policymakers from around the world.

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GLO President Klaus F. Zimmermann is George Soros Chair Professor at the School of Public Policy of the Central European University (CEU) in Budapest since April 1, 2019.

The Central European University (CEU) has appointed Klaus F. Zimmermann, who is also President of the Global Labor Organization (GLO), the George Soros Chair Professor at the School of Public Policy of CEU for April-June (Spring Term) 2019. He took residence in Budapest on April 1, 2019 and teaches since then a class in “Global Labor Economics“. He will provide the public George Soros Lecture on “Global Labor Economics: Challenges and Benefits” on May 8, 2019 (see special announcement).

GLO President Klaus F. Zimmermann (on the morning walk to work)

Budapest has played a particular role in the academic career of Klaus F. Zimmermann. Already early 1984, he received as academic youngster the honor of an invitation to the small-scale Winter Symposium of the Econometric Society, which took place in Budapest guided by Martin Hellwig, Janos Kornai and Jean-Jacques Laffont. In 1990 he came back as the then Secretary of the European Society for Population Economics (ESPE) to speak at the Workshop “Demographic Change and Social Policy” of the demographic institutes of the countries of the Eastern Socialist Block organized by the Hungarian Demographic Research Institute. Its then Director Istvan Monigl had invited Zimmermann and showed him also parts of Hungary in a personal tour. The ambitions of the two men was to initiate soon a big population economics congress in Budapest to foster change, which was achieved in 1993 when the annual ESPE congress took place in the city. Zimmermann came back regularly since then.

While 1984, 1990 and 1993 were visits in periods of change and transition with a high appreciation of freedom, mobility and collaboration, the current visit as a George Soros Chair Professor takes place in a period where free mobility, academic independence and European unity face declining popularity.

Half way to the office in Budapest: In the back the Hungarian Academy of Sciences
Place of Work and Exchange

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