More about the KAS-FOM-GLO conference in Hong Kong: Climate Change and Human Responses

The joint FOM-GLO-KAS Conference about “Climate Change and Human Responses” co-organized by the Global Labor Organization (GLO), FOM University of Applied Sciences and Konrad Adenauer Foundation (KAS) took place on October 31 – November 2 in Hong Kong. (See for detailed reports: Day 1, Day 2, Day 3). Some further impressions (courtesy of KAS):


Conference organizers (from the left): GLO President Klaus F. Zimmermann, Peter Hefele, Director of the Hong Kong branch of the German Konrad-Adenauer Foundation and Andreas Oberheitmann (FOM, RWI and GLO).

Left: GLO Fellow & GLO Cluster Lead Green Jobs Almas Heshmati of Jönköping International Business School, Sogang University, Sweden/South Korea with Klaus F. Zimmermann.

Organizers Oberheitmann & Zimmermann with GLO Fellow & Session Chair Yifan Zhang of the Chinese University of Hong Kong.

Zimmermann with Jonathan Ho of Business Environment Council.

Conference participants at Day 2 after lunch.

RECENT GLO Discussion Papers on the issue of the conference (freely downloadable):

DP 266 Smog, Cognition and Real-World Decision MakingDownload PDF
by Chen, Xi
DP 221 Gender and climate change: Do female parliamentarians make a difference?Download PDF
by Mavisakalyan, Astghik & Tarverdi, Yashar
DP 86 Do Environmental Regulations Effect FDI decisions? The Pollution Haven Hypothesis Revisited – Download PDF
by Yoon, Haeyeon & Heshmati, Almas
DP 78 Managing the Impact of Climate Change on Migration: Evidence from Mexico – Download PDF
by Chort, Isabelle & de la Rupelle, Maëlys
DP 56 Happiness in the Air: How Does a Dirty Sky Affect Mental Health and Subjective Well-being? – Download PDF
by Zhang, Xin & Zhang, Xiaobo & Chen, Xi
DP 32 Smog in Our Brains: Gender Differences in the Impact of Exposure to Air Pollution on Cognitive Performance  – Download PDF
by Chen, Xi & Zhang, Xiaobo & Zhang, Xin

Ends;

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Climate Change and Human Responses: Overview about the second day of a successful Hong Kong conference

The joint FOM-GLO-KAS Conference about “Climate Change and Human Responses” co-organized by the Global Labor Organization (GLO), FOM University of Applied Sciences and Konrad Adenauer Foundation (KAS) at the Hotel Harbour Grand Kowloon, Hung Hom, Hong Kong (see FIRST DAY, for the full program of all three days, literature references and some pictures of the first day; details of THIRD DAY) continued on 1 November 2018 with a dense scientific program.

View at the conference room with acting
participants. What a wonderful conference. Top speakers, a large diversity of motivated participants from academia, civil society and very interested students. Made possible by a beautiful, comfortable and very efficient conference hotel, and last but not least by a devoted and perfect KAS local conference organization team. Congratulations!

 

Here are some photos of the academic event of the SECOND DAY (November 1, 2018):

9:00 Session 1: Impact of Climate Change on Regions and Industry Sectors
Chair: ZHANG Yifan, The Chinese University of Hong Kong and GLO

 

Session chair ZHANG Yifan (The Chinese University of Hong Kong and GLO) next to Klaus F. Zimmermann (UNU-MERIT and President GLO)

 

 

 

Manfred FISCHEDICK, Wuppertal Institute for Climate, Energy and Environment
Climate Change and (Basic) Industry: Options and Related Chances and Challenges for a Green Transformation


Andreas OBERHEITMANN, FOM, RWI and GLO
Challenges of Climate Change for Coastal Regions and Cities: the Case of China

 

11:00 Session 2: Impacts of Climate Change on Global Labor Force and Labor Markets. Chair: GUO Chaoran, Chinese University of Hong Kong and GLO

 

Session Chair Chaoran Guo (Chinese University of Hong Kong and GLO) with Jean-Marc Champagne  (World Wide Fund for Nature) and Walton Li (Greenpeace)

 

 

 

FENG Shuaizhang, Jinan University and GLO, video
presentation
(with CUI Xiaomeng, Jinan University,
per skype in the discussion below)

Climate Variability, Agricultural Productivity and Migration


CHEN Xi, Yale University and GLO
Climate and Environmental Challenges to Health Capital

DEBATE: Astghik Mavisakalyan (Curtin University and GLO), discussing; with from the left Chris Parsons (University of Western Australia and GLO), Peter Hefele (Director, Konrad Adenauer- Foundation, Hong Kong SAR, PR China), Eric Chun Sum Lee (Konrad Adenauer- Foundation), Nicolas de Loisy (SCMO, Hong Kong), and session chair GUO Chaoran (Chinese University of Hong Kong and GLO)

Christopher PARSONS, The University of Western Australia and GLO
Climate Change and Migration, Exit, Voice and Loyalty: A Solution to the Immobility Paradox

 

14.00 Session 3: Climate Change: Historical Lessons
Chair: Manfred FISCHEDICK, Wuppertal Institute for Climate, Energy and Environment

Almas HESHMATI, Jönköping International Business School, Sogang University
and GLO, Sweden/South Korea
What Can We Learn from Environmental Disasters for the Climate Change Challenges?

PEI Qing, Education University of Hong Kong, Hong Kong
Mandate of Heaven – Climate change, migration and geopolitical cycles in imperial China

 

15:45 Session 4: Climate Change: How to React?
Chair: Anbumozhi VENKATACHALAM, Economic Research Institute for ASEAN and East Asia (ERIA)

 

Session Chair Anbumozhi VENKATACHALAM (Economic Research Institute for ASEAN and East Asia, ERIA) with Almas HESHMATI (Jönköping International Business School, Sogang University, Sweden/South Korea and GLO), and speaker Astghik MAVISAKALYAN (Curtin University and GLO)

 

Astghik MAVISAKALYAN, Curtin University and GLO
Gender and Climate Change: Do Female Parliamentarians Make a Difference?

Background Paper GLO DP 221 Gender and climate change: Do female parliamentarians make a difference?Download PDF
by Mavisakalyan, Astghik & Tarverdi, Yashar

Eileen GALLAGHER, BSR, Business for Social Responsibility, Hong Kong
How Business Can Manage Climate Risk in Southeast Asia

THE WORKDAY ENDED WITH STUDENT PRESENTATIONS ON THE TOPIC
17:20 KAS–CUHK Students Forum
(in cooperation with the Faculty of Law/Chinese University of Hong Kong (CUHK)
“Climate Change and Human Responses”
Chair: Peter HEFELE, KAS RECAP, Hong Kong
Welcoming Remarks:
– Anatole BOUTE, Chinese University of Hong Kong (CUHK)
– LL.M-Master Course Student, CUHK
Discussion
18:00 Wrap-up and Concluding Remarks
– Andreas OBERHEITMANN

RECENT GLO Discussion Papers on the issue (freely downloadable):

DP 266 Smog, Cognition and Real-World Decision MakingDownload PDF
by Chen, Xi
DP 221 Gender and climate change: Do female parliamentarians make a difference?Download PDF
by Mavisakalyan, Astghik & Tarverdi, Yashar
DP 86 Do Environmental Regulations Effect FDI decisions? The Pollution Haven Hypothesis Revisited – Download PDF
by Yoon, Haeyeon & Heshmati, Almas
DP 78 Managing the Impact of Climate Change on Migration: Evidence from Mexico – Download PDF
by Chort, Isabelle & de la Rupelle, Maëlys
DP 56 Happiness in the Air: How Does a Dirty Sky Affect Mental Health and Subjective Well-being? – Download PDF
by Zhang, Xin & Zhang, Xiaobo & Chen, Xi
DP 32 Smog in Our Brains: Gender Differences in the Impact of Exposure to Air Pollution on Cognitive Performance  – Download PDF
by Chen, Xi & Zhang, Xiaobo & Zhang, Xin

Ends;

 

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Zimmermann will become EBES President in 2019

On January 1, 2019, Klaus F. Zimmermann will become the President of the Eurasia Business and Economics Society (EBES), but will keep his position as the President of the Global Labor Organization (GLO).

Zimmermann had received the EBES Fellow Award 2018, is already a member of the Executive Board of EBES and a member of the Editorial Board of one of the EBES Journals, the Eurasian Economic Review (EAER, since 2017).

On 15 July 2018, representatives of EBES and the GLO had signed a Memorandum of Understanding (MOU) about establishing a long-term collaboration on educational and research activities between both organizations. Among other issues, the cooperation includes the exchange of academic documents, the organization of events, joint publications and other means to foster research.

GLO intends to organize a session at the Bali EBES 27 conference on January 9-11, 2019: Extended deadline is November 9, 2018.

GLO will organize three sessions at the May 29-31, 2019 EBES conference in Coventry, UK, following the very successful experiences of the first joint event organized in May 2018 in Berlin (EBES 25).

 

 

 

 

 

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Zimmermann ends his 4 weeks trip to Beijing & Hong Kong with a conference on climate change

After two days of scientific discussions, the joint FOM-GLO-KAS Conference about “Climate Change and Human Responses” (DETAILS) co-organized by the Global Labor Organization (GLO), FOM University of Applied Sciences and Konrad Adenauer Foundation (KAS) met on 2 November 2018 German business at and with the German Chamber of Commerce, Hong Kong for a Breakfast Discussion.

The meeting ended a four weeks trip of GLO President Klaus F. Zimmermann to Beijing and Hong Kong to discuss climate change. The trip was exceptionally successful, and the perfect ending in Hong Kong was celebrated at the airport with champagne and beer…. Zimmermann returned home after lunch to Bonn/Germany.

The Breakfast Discussion  was chaired by Andreas Oberheitmann (FOM, RWI and GLO) and welcomed by Wolfgang Ehmann, Head of the German Chamber of Commerce, Hong Kong. The keynote speeches were provided by Manfred Fischedick, Wuppertal Institute for Climate, Energy and Environment, and Eric CHUNG, President and CEO of Siemens Ltd. Hong Kong and Member of the Board of Directors of the Business Environment Council (BEC), Hong Kong. Peter Hefele, Head of the Hong Kong Konrad-Adenauer Foundation was organizing this part of the event.

From the left above: Manfred Fischedick, Andreas Oberheitmann and Eric Chung.

Above: GLO Fellows Christopher Parsons, Almas Heshmati, Venkatachalam Anbumozhi, and Xi Chen under the observation of Peter Hefele, Head of the Hong Kong basis of the Konrad-Adenauer Foundation.

GLO experts debating at the German Chamber of Commerce in Hong Kong about the consequences of climate change for business and humanity:
Xi Cheng, Professor at Yale University and GLO Cluster Lead “Environment and Human Resources”.
Almas Heshmati, Professor at Jönköping International Business School, Sogang University and GLO, Sweden/South Korea, and GLO Cluster Lead “Green Employment Creation”.
Andreas Oberheitmann, Professor at FOM, RWI and GLO.
Christopher Parsons, Professor at the University of Western Australia and GLO.
Venkatachalam Anbumozhi, Senior Economist at the Economic Research Institute for ASEAN and East Asia (ERIA) and GLO.
Klaus F. Zimmermann, Professor at Bonn University (em.),  Honorary Professor at the Renmin University of China, UNU-MERIT, and President of the GLO


Wolfgang Ehmann, Manfred Fischedick and Andreas Oberheitmann (from the left).

PROGRAM; FRIDAY, 2ND NOVEMBER 2018
8:30 Breakfast Discussion (in cooperation with the German Chamber of Commerce)
Climate Change and Human Responses: How to prepare for Change?
Venue: German Chamber of Commerce, 3601, Tower One, Lippo Centre,
89 Queensway, Admiralty, Hong Kong
Chair: Andreas OBERHEITMANN, FOM, RWI and GLO
Welcoming Remarks
– Wolfgang EHMANN, German Chamber of Commerce
Klaus F. ZIMMERMANN, UNU-MERIT, Maastricht University and GLO
Keynote Speeches (10 min each)
– Wolfgang EHMANN, Wuppertal Institute for Climate, Energy and Environment
– Eric CHONG, President and CEO of Siemens Ltd. Hong Kong; Member of the
Board of Directors of Business Environment Council (BEC), Hong Kong
Q&A
10:00 End of Event

The three organizers of the joint FOM-GLO-KAS Conference on “Climate Change and Human Responses” at the Hong Kong basis of the German Konrad Adenauer Foundation: Peter Hefele, Klaus F. Zimmermann and Andreas Oberheitmann.

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“Climate Change and Human Responses”: GLO President Zimmermann spoke at joint GLO-FOM-KAS conference in Hong Kong on Wednesday, 31 October 2018

The joint FOM-GLO-KAS Conference about “Climate Change and Human Responses”  scheduled  for 31 October – 2 November 2018 in Hong Kong has begun on Wednesday, 31 October 2018. The event is co-organized by the Global Labor Organization (GLO), FOM University of Applied Sciences and Konrad Adenauer Foundation (KAS). It will continue November 1-2. REPORT SECOND DAY; REPORT THIRD DAY.

Climate change is one of the biggest challenges of the 21st Century. It will have severe consequences for societies and economies and affect global production chains, output, labor markets and well-being. Rising sea levels, floods and droughts, changing agricultural patterns will lead to unforeseeable consequences on human well-being, public health, labor performance and productivity. The innovative conference deals with the under-researched human consequences of climate change and brings together researchers, business, the policy community and civil society in a city which will be heavily affected by climate change, Hong Kong.

Organizers are Peter Hefele (KAS RECAP, Hongkong), Andreas Oberheitmann (FOM, RWI and GLO) and Klaus F. Zimmermann (UNU-MERIT, Maastricht University and GLO). Participants are renowned researchers, politicians and entrepreneurs from Hong Kong, Asia, Europe and the US.

The conference opened on Wednesday with a keynote speech by GLO President Klaus F. Zimmermann on “Climate Change: The Global Labor Challenge”.

For the program, see below. See for more pictures of the day.

GLO has recently provided a number of Discussion Papers on the topic, see below a listing and the links.

THE PROGRAM: “Climate Change and Human Responses” 

WEDNESDAY, 31ST OCTOBER 2018
Venue: Meeting Room Whampoa 1&2, 1/F, Hotel Harbour Grand Kowloon, Hung Hom,
Hong Kong

16:00 Registration
16:15 Welcoming Remarks
Peter HEFELE, KAS RECAP, Hong Kong
Andreas OBERHEITMANN, FOM Hochschule, RWI and GLO
16:45 Keynote Speech
Klaus F. ZIMMERMANN, UNU-MERIT, Maastricht University and GLO
Climate Change: The Global Labor Challenge
17:15 Q&A
18:00 End of Discussion
19:00 Dinner
Keynote Speech: Ir Albert LAI, CEO of Carbon Care Asia, Hong Kong
Climate Change: Challenges and Opportunities for Hong Kong´s Innovation System
Venue: Grand Salon, Hotel Harbour Grand Kowloon

THURSDAY, 1ST NOVEMBER 2018

9:00 Session 1: Impact of Climate Change on Regions and Industry Sectors
Chair: ZHANG Yifan, The Chinese University of Hong Kong and GLO
– Manfred FISCHEDICK, Wuppertal Institute for Climate, Energy and Environment
Climate Change and (Basic) Industry: Options and Related Chances and Challenges
for a Green Transformation
– Andreas OBERHEITMANN, FOM, RWI and GLO
Challenges of Climate Change for Coastal Regions and Cities: the Case of China
10:30 Coffee break
11:00 Session 2: Impacts of Climate Change on Global Labor Force and Labour
Markets
Chair: GUO Chaoran, The Chinese University of Hong Kong and GLO
FENG Shuaizhang, Jinan University and GLO (with CUI Xiaomeng, Jinan University)
Climate Variability, Agricultural Productivity and Migration
(video presentation)
– CHEN Xi, Yale University and GLO
Climate and Environmental Challenges to Health Capital
– Christopher PARSONS, The University of Western Australia and GLO
Climate Change and Migration, Exit, Voice and Loyalty: A Solution to the Immobility Paradox
13:00 Lunch
Venue: Restaurant Waterfront Bar & Terrace, G/F, Harbour Grand Kowloon

14.00 Session 3: Climate Change: Historical Lessons
Chair: Manfred FISCHEDICK, Wuppertal Institute for Climate, Energy and Environment
– Almas HESHMATI, Jönköping International Business School, Sogang University
and GLO, Sweden/South Korea
What Can We Learn from Environmental Disasters for the Climate Change Challenges?
– PEI Qing, Education University of Hong Kong, Hong Kong
Mandate of Heaven – Climate change, migration and geopolitical cycles in imperial
China
15:30 Coffee Break
15:45 Session 4: Climate Change: How to React?
Chair: Anbumozhi VENKATACHALAM, Economic Research Institute for ASEAN and East
Asia (ERIA)
– Astghik MAVISAKALYAN, Curtin University and GLO
Gender and Climate Change: Do Female Parliamentarians Make a Difference?
Eileen GALLAGHER, BSR (Business for Social Responsibility), Hong Kong
How Business Can Manage Climate Risk in Southeast Asia
17:00 Coffee Break

17:20 KAS–CUHK Students Forum
(in cooperation with the Faculty of Law/Chinese University of Hong Kong (CUHK)
“Climate Change and Human Responses”
Chair: Peter HEFELE, KAS RECAP, Hong Kong / Anjle GUPTA, CUHK, Hong Kong
Welcoming Remarks:
– Anatole BOUTE, Chinese University of Hong Kong (CUHK)
Statements (each 5–10 mins)
– LL.M-Master Course Student, CUHK
Discussion
18:00 Wrap-up and Concluding Remarks
– Andreas OBERHEITMANN
– Peter HEFELE
18:30 Meet at Lobby and Transfer to Restaurant
19:00 Dinner

FRIDAY, 2ND NOVEMBER 2018
8:30 Breakfast Discussion (in cooperation with the German Chamber of Commerce)
Climate Change and Human Responses: How to prepare for Change?
Venue: German Chamber of Commerce, 3601, Tower One, Lippo Centre,
89 Queensway, Admiralty, Hong Kong
Chair: Andreas OBERHEITMANN, FOM, RWI and GLO
Welcoming Remarks
– Wolfgang EHMANN, German Chamber of Commerce
Klaus F. ZIMMERMANN, UNU-MERIT, Maastricht University and GLO
Keynote Speeches (10 min each)
– Manfred FISCHEDICK, Wuppertal Institute for Climate, Energy and Environment
– Eric CHONG, President and CEO of Siemens Ltd. Hong Kong; Member of the
Board of Directors of Business Environment Council (BEC), Hong Kong
Q&A
10:00 End of Event

RECENT GLO Discussion Papers on the issue (freely downloadable):

DP 266 Smog, Cognition and Real-World Decision MakingDownload PDF
by Chen, Xi
DP 221 Gender and climate change: Do female parliamentarians make a difference?Download PDF
by Mavisakalyan, Astghik & Tarverdi, Yashar
DP 86 Do Environmental Regulations Effect FDI decisions? The Pollution Haven Hypothesis Revisited – Download PDF
by Yoon, Haeyeon & Heshmati, Almas
DP 78 Managing the Impact of Climate Change on Migration: Evidence from Mexico – Download PDF
by Chort, Isabelle & de la Rupelle, Maëlys
DP 56 Happiness in the Air: How Does a Dirty Sky Affect Mental Health and Subjective Well-being? – Download PDF
by Zhang, Xin & Zhang, Xiaobo & Chen, Xi
DP 32 Smog in Our Brains: Gender Differences in the Impact of Exposure to Air Pollution on Cognitive Performance  – Download PDF
by Chen, Xi & Zhang, Xiaobo & Zhang, Xin

Ends;

 

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Zimmermann visited Beijing Normal University on 26 October 2018

Beijing Normal University hosts a larger number of prominent Chinese labor economists lead by GLO Fellow & Professor LI Shi, including the Dean of the Business School, Professor LAI Desheng, and GLO Fellow & Professor Chunbing Xing. Professor LI Shi had invited Klaus F. Zimmermann while resident in Beijing for research talks and a seminar presentation.

On Friday October 26, Zimmermann visited Beijing Normal University to provide a research seminar on “Arsenic Contamination of Drinking Water and Mental Health”.

The seminar was chaired by GLO Fellow & Professor Li Shi, who also introduced Zimmermann to the very large audience. The presentation was based on a revised version of his recent Princeton University Discussion Paper (Working Paper #607, Princeton University, Industrial Relations Section). The discussion was lively and Zimmermann has received a larger number of very useful comments.

Zimmermann during his lecture.

LAI Desheng (right), Professor & Dean of the Business School of Beijing Normal University.

 

AFTER THE HOUR.

Zimmermann, left, with GLO Fellow Professor LI Shi of Beijing Normal University, one of the leading labor scholars of the country.

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Trade Policy Under Trump; China and the World at the Center for China & Globalization in Beijing.

The Center for China & Globalization (CCG) in Beijing had invited prominent speakers to debate the situation of global trade at the age of Trump in a private setting on 28 October 2018 at the institute. CCG is now the most prominent independent think-tank in China. Moderated by Huiyao Wang, President of the Center for China & Globalization in Beijing (CCG) and Counselor for the Chinese State Council, Hon. Rufus H. Yerxa, President of the National Foreign Trade Council, Former Deputy USTR and Deputy Director General of the WTO, was introducing the confidential and very intensive discussion of the meeting.

From the left: Rufus H. Yerxa, Huiyao Wang, Fan Cui (Professor of the University of International Business and Economics, UIBE),  & Zimmermann.

The meeting.

Discussant Zimmermann & Dene Yeaman, Economic Counsellor, Australian Embassy Beijing.

The core discussion group (from the left):

  • Wallace (Shuaihua) CHEN, Director of International Center for Trade and Sustainable Development (ICTSD)
  • TU Xinquan, Professor and President of China Institute for WTO Studies, University of International Business and Economics (UIBE)
  • Dene YEAMAN, Economic Counsellor, Australian Embassy Beijing
  • SUN Jie, Former President of Asset Management Association of China, Former Director of Department of Asset Management at China Security Regulatory Commission, CCG Senior Fellow
  • Ricardo MELÉNDEZ-ORTIZ, CEO of International Center for Trade and Sustainable Development (ICTSD)
  • WANG Huiyao, President of CCG, Counsellor for the Chinese State Council
  • Hon. Rufus H. YERXA, President of National Foreign Trade Council, Former Deputy USTR and Deputy Director General of the WTO
  • Klaus F. ZIMMERMANN, President of the Global Labor Organization (GLO) and UNU-MERIT, Maastricht University
  • TU Xinquan, Professor and President of China Institute for WTO Studies, University of International Business and Economics (UIBE)
  • CUI Fan, Professor of the University of International Business and Economics (UIBE)
  • Ben MILLER, Head of Multilateral Trade Policy, Economic Section, British Embassy Beijing
  • Lu Mabel MIAO, Co-founder, Vice President of CCG & Secretary General of CCG

Huiyao (Henry) Wang and Klaus F. Zimmermann have collaborated over the years in other contexts and share a joint vision about the importance of open relationships in a globalized world. Henry Wang and Zimmermann agreed to intensify collaborations  between CCG and GLO in the near future.

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Research Seminar on “Contaminated Drinking Water” by GLO President Zimmermann and Social Events at Renmin University

Through all October, Klaus F. Zimmermann, President GLO and UNU-MERIT, Maastricht, has visited Renmin University of China, where he will leave on October 31. He has enjoyed very much the hospitality and the attractive research environment of the university, he is affiliated with so long as an Honorary Professor. He was discussing research with many colleagues, PhD students and Master students.

Invited and chaired by GLO Fellow Jun Han of Remin University, Zimmermann provided a research seminar on “Arsenic Contamination of Drinking Water and Mental Health” on October 25 in front of a large audience. The presentation was based on a revised version of his recent Princeton University Discussion Paper (Working Paper #607, Princeton University, Industrial Relations Section).

AFTER THE HOUR

After dinner with faculty of Renmin University on October 27, 2018.

From the left: Liqiu Zhao, Zhong Zhao, Zimmermann, Dean Weiguo Yang, and Xiangbo Liu, all Renmin University of China and GLO Fellows.

In front of the special restaurant with Liqiu Zhao.


After dinner with PhD students of Renmin University on Ocober 24, 2018.

 

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Evidence on permanent work contracts in China

New research in the Discussion Paper Series of the Global Labor Organization (GLO): In its Labor Contract Law introduced in 2008, China strengthened the labor protection for workers. As a consequence, temporary work contracts have to be permanent after 10 years of work duration. Randall Akee (University of California, Los Angeles) with GLO Fellows Ligiu Zhao and Zhong Zhao (both Renmin University of China) have presented evidence that Chinese companies have often dismissed workers to avoid such permanent contracts resulting in large welfare losses among those workers.

GLO Fellow Zhong Zhao, Renmin University of China, Beijing, and Associate Editor of the Journal of Population Economics

GLO Discussion Paper No. 242

Unintended Consequences of China’s New Labor Contract Law on Unemployment and Welfare Loss of the WorkersDownload PDF
by Akee, Randall & Zhao, Liqiu & Zhao, Zhong

Abstract

China’s new Labor Contract Law, which intended to strengthen the labor protection for workers, went into effect on January 1, 2008. The law stipulated that the maximum cumulative duration of successive fixed-term (temporary) labor contracts is 10 years, and employees working for the same employer for more than 10 consecutive years are able to secure an open-ended (permanent) labor contract under the new law, which is highly desirable to employees. However, in order to circumvent the new Labor Contract Law, some employers may have dismissed workers, after the passage of the new law, who had worked in the same firm for more than 10 years. Using data from the 2008 China General Social Survey, we find strong evidence that firms did in fact dismiss their formal-contract employees who have been employed for more than 10 years. Additionally, using a regression discontinuity design based on this exogenous change in unemployment status for this particular group of workers, we show that the dismissed workers suffered significant welfare loss in terms of happiness. Our results are robust to various specifications and placebo tests.

Interested in other GLO Discussion Papers?  The GLO DP series for free.

Interested in other research on China? Recent Papers on the Chinese Labor Market.

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The Future of Global Trade: GLO President Visits the Center for China & Globalization in Beijing for Debate

Global international economic relationships are under pressure with unclear consequences for the world economy and individual welfare. The United States of America have left the Trans-Pacific Partnership Agreement, raised tariffs against its trade partners, in particular for China, dismantled the North American Free Trade Agreement, and re-negotiated the terms of bilateral trade with the European Union and Japan.

To debate this development, Dr. Huiyao Wang, President of the Center for China & Globalization in Beijing (CCG) and Counselor for the Chinese State Council, has invited Professor Klaus F. Zimmermann, President of the Global Labor Organization (GLO) and currently visiting Renmin University of China, and other experts to discuss the situation in a private round-table with Hon. Rufus H. Yerxa, President of National Foreign Trade Council, Former Deputy USTR and Deputy Director General of the WTO. The private event takes place on 28 October 2018 at the Center for China & Globalization in Beijing.

Huiyao Henry Wang and Klaus F. Zimmermann have collaborated over the years in other contexts and share a joint vision about the importance of open relationships in a globalized world. Henry Wang (left) and Zimmermann during an CCG event in Washington DC on trade policies in September 2016.

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