Australian children and adolescents from disadvantaged families largely do not claim their benefits.

A new GLO Discussion Paper provides the first evidence on the determinants of uptake of two recent public dental benefit programs for Australian children and adolescents from disadvantaged families to find that only a third of all eligible families actually claim their benefits.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 501, 2020

Who’s declining the “free lunch”? New evidence from the uptake of public child dental benefits – Download PDF
by
Nguyen, Ha Trong & Le, Huong Thu & Connelly, Luke B.

GLO Fellows Ha Nguyen, Huong Le & Luke Connelly

Author Abstract: Recent economic literature has advanced the notion that cognitive biases and behavioral barriers may be important influencers of uptake decisions in respect of public programs that are designed to help disadvantaged people. This paper provides the first evidence on the determinants of uptake of two recent public dental benefit programs for Australian children and adolescents from disadvantaged families. Using longitudinal data from a nationally representative survey linked to administrative data with accurate information on eligibility and uptake, we find that only a third of all eligible families actually claim their benefits. These actual uptake rates are about half of the targeted access rates that were announced for them. We provide new and robust evidence consistent with the idea that cognitive biases and behavioral factors are barriers to uptake. For instance, mothers with worse mental health or riskier lifestyles are much less likely to claim the available benefits for their children. These barriers to uptake are particularly large in magnitude: together they reduce the uptake rate by up to 10 percentage points (or 36%). We also find some indicative evidence about the presence of the lack of information barrier to uptake. The results are robust to a wide range of sensitivity checks, including controlling for possible endogenous sample selection.

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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Speakers of future-tensed languages are less likely to be religious

A new GLO Discussion Paper provides evidence that speakers of future-tensed languages are less likely to be religious.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 500, 2020

Paradise Postponed: Future Tense and Religiosity Download PDF
by
Mavisakalyan, Astghik & Tarverdi, Yashar & Weber, Clas

GLO Fellows Astghik Mavisakalyan & Yashar Tarverdi

Mavisakalyan, Astghik

Author Abstract: This paper identifies a new source of differences in religiosity: the presence of future tense marking in language. We argue that the rewards and punishments that incentivize religious behavior are less effective for speakers of languages that contain future tense marking. Consistent with this prediction, we show that speakers of future-tensed languages are less likely to be religious and to take up the short-term costs associated with religiosity. What is likely to drive this behavior, according to our results, is the relatively lower appeal of the religious rewards for these individuals. Our analysis is based on within country regressions comparing individuals with identical observable characteristics who speak a different language.

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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Globalism and Chinese lessons from the Coronavirus crisis. Interview with CCG President Henry Wang.

The world struggles about a convincing strategy to handle the #coronavirus crisis and reflects the consequences thereafter: What are the recommendations from Beijing’s top policy advisor Henry Wang?

  • The most important thing is taking decisive and comprehensive action as soon as the virus starts to spread.
  • New formats of internet business, including online medical services, online education, and working at home through online apps, have grown significantly.
  • The virus may rebound if we relax our vigilance.
  • The pandemic reveals not the failure of globalization, but the need to innovate global governance systems and boost international cooperation.
  • In the long run, the movement of labor and talent has created more benefits than problems.

GLO Fellow Huiyao (“Henry”) Wang is a Professor and President of the Center for China and Globalization (CCG), the largest non-government think tank in China. CCG and GLO are collaborating institutions.

Interview

GLO: China seems to have managed the Corona Crisis. What are the major lessons?

Huiyao Wang: I think the most important thing is taking decisive and comprehensive action as soon as the virus starts to spread. The non-pharmaceutical measures China took might seem economically damaging at first, but it is that the sacrifice gave us a better chance to control the pandemic as quickly as possible. If we had underestimated the coronavirus, the potential losses could have been far greater. 

And another thing is the well-equipped internet infrastructure and the thriving internet industries that played a big role in distributing medical resources and basic supplies for people in quarantine during the coronavirus outbreak. Additionally, new formats of internet business, including online medical services, online education, and working at home through online apps, have grown significantly. These businesses helped to allow society to continue operating and lowered the economic pressure so that we could keep the economy going while employing social distancing.

GLO: Will the virus come back?

Huiyao Wang: I think there’s a chance that the virus rebounds if we relax our vigilance. Although China has made it to contain the coronavirus overall, it is too early to relax now due to the global outbreak. We can see that there are dozens of new cases appearing every day, mostly coming from other countries. The Chinese central government and local governments as well as every citizen are staying cautious and alert.

In this special time, all countries should work together and spare no effort against the virus, in line with the joint statement achieved at the G20 summit several days ago. Like President Xi Jinping said, we should build a community with shared future for mankind, since globalization has tied countries together. Discrimination and hatred will not do any good when facing the challenges brought by the virus, and other transnational challenges like climate change.

GLO: Some say the pandemic is the curse of globalism, did it go too far?

Huiyao Wang: The coronavirus indeed has caused a global crisis, however, if we believe globalization will go reverse or countries should decouple to protect themselves, then we are wrong. Coronavirus is just one of the global challenges that we are facing. Climate change, environmental degradation, WTO reforms – these challenges are all awaiting us and none of them can be overcome without international cooperation, bilaterally and multilaterally. The pandemic reveals not the failure of globalization, but the need to innovate global governance systems and boost international cooperation.

I think the G20 meeting was a good start. On the 27th, President Xi and President Trump had a phone call the day after the G20 meeting. This sent a good signal that China and the US are going to set aside the disputes and work together. Despite the talk about competition between China and the US, I believe the two countries have enough reasons to collaborate. Being rivals will do no good to either country. 

GLO: How can global solidarity look like in this crisis?

Huiyao Wang: I think it failed to meet our expectations somehow at the beginning, but now after the G20, I hope countries can unite and fight against the virus together.

When the outbreak started in China, many countries donated and helped, which was significant for China to control the coronavirus domestically. However, after the coronavirus began to spread globally, global solidarity appeared vulnerable.

After the G20, the countries have presented a joint statement announcing a fund of 500 million US$ to combat the disease and other key messages about reviving the global economy. If these are carried out, I think we will walk out of the shadow cast by the pandemic.  

GLO: The Coronavirus is a strike of nature against globalism: What is its future, in particular for labor migration?

Huiyao Wang: I think it is short-sighted if we blame the outbreak on labor migration, since the cause is more complex than that and we could have taken better precautions to avoid it. In the long run, the movement of labor and talent has created more benefits than problems.

I think we should improve and innovate the global governance of migration rather than go against it. Especially, we should establish an emergency mechanism to regulate transnational movement of people when an outbreak occurs like this time to minimize the impact.

*************
With Huiyao Wang spoke Klaus F. Zimmermann, GLO President.

Related GLO research:
Yun Qiu, Xi Chen & Wei Shi (2020): Impacts of Social and Economic Factors on the Transmission of Coronavirus Disease 2019 (COVID-19) in China, GLO Discussion Paper, No. 494.

See also the recent GLO – Interview with GLO Fellow Xi Chen of Yale University.

Henry Wang (right) & Klaus F. Zimmermann at the CCG Headquarter in Beijing in December 2019 during a previous visit.

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New survey on Life with Corona. An invitation to participate.

The Coronavirus (SARS-CoV-2) and the COVID-19 disease continue to spread across the world. A new Life with Corona study will provide valuable information for researchers studying the social and economic implications of the Coronavirus pandemic.
LINK to the survey website.

The project is led by GLO Fellow Tilman Brück and his International Security and Development Center (ISDC) in Berlin. ISDC and its Director Tilman Brück are long-term partners of the GLO. GLO congratulates ISDC and Director Brück for this important new initiative at difficult times.

Life with Corona Study

Have you heard of the new Life with Corona Study?

It is an innovative citizen science project that will help us understand how the Corona crisis is changing our lives. The findings will deliver important insights for policy-makers and researchers into how to better manage and mitigate the crisis.

Based on cutting-edge methodologies, the survey captures the voices and sentiments of citizens around the world.

Be part of the survey now! Just fill in the questionnaire and please forward this call in your networks. The more people participate, the more we know!

#sharethesurveynotthevirus #lifewithcorona

LINK to the survey website.

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WageIndicator Foundation announces CORONA Virus Work Life Survey.

Amsterdam; 29 March, 2020. The WageIndicator Foundation announces the Continuous Global Online Survey ‘Living and Working in Corona Times’! Press Release.

The WageIndicator Foundation led by GLO Fellow Paulien Osse as the Director, is a long-term partner of the GLO. GLO congratulates the WageIndicator Foundation for this important new initiative at difficult times.

Continuous Global Online Survey ‘Living and Working in Corona Times’

WageIndicator shows coronavirus-induced changes in living and working conditions in 110 countries. The changes are visualized in maps and graphs. These infographics show, from day to day, the consequences the large majority of the working population of the world experiences, on the basis of answers on the following questions in the Corona survey:

– Is your work affected by the corona crisis?
– Are precautionary measures taken at the workplace?
– Do you have to work from home?
– Has your workload increased/decreased?
– Have you lost your job/work/assignments?

First results show an enormous impact of the coronavirus on work in general. In the Netherlands for instance, a country severely hit, 95 percent of participants in the survey state that their work is impacted by the corona-crisis.

The survey contains questions about the home situation of respondents as well as about the possible manifestation of the corona disease in members of the household. Also the effect of having a pet in the house in corona-crisis times is included.

WageIndicator – a respected partner of GLO – is a non-profit foundation, which aims to share and compare wages and labour law on a global scale through its national websites in 140 countries with millions of web visitors. WageIndicator’s web visitors are invited to complete the survey on Living and Working in Corona Times. The survey reaches out to all people in working age, contracted, self-employed and unemployed alike.

WageIndicator’s online infrastructure is built up over the past two decades and consists of online and offline surveys and data collection. For this particular survey, the international WageIndicator team cooperates with academic research institutes from half a dozen countries. The survey asks the same questions across countries. Therefore WageIndicator is able to closely monitor the development of the corona crisis and its impact on the world of work.

WageIndicator has rolled out its survey on March 26, 2020. From March 31 onwards WageIndicator maps changes in 110 countries, shown permanently online and updated each day.

Crucial links:
For the list of participating countries. Do the survey and find the results!
Link project page and team.
Contact: office@wageindicator.org
+31 6 539 77 695

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Game of Prejudice – how to fight taste-based discrimination.

A new GLO Discussion Paper provides evidence based on field experiments for the Roma community in Europe that when the cost of taste-based discrimination is made sufficiently high, such behavior disappears.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 499, 2020

Game of Prejudice – Experiments at the Extensive and Intensive MarginDownload PDF
by
Dasgupta, Utteeyo & Mani, Subha & Vecci, Joe & Želinský, Tomáš

GLO Fellow Mani Subha

Author Abstract: In an unique lab-in-the-field experiment we design a novel labor market environment, the Game of Prejudice, to elicit preferences for discrimination towards the largest minority group in Europe (the Roma) at the intensive margins as well as at the extensive margins. Our unique experiment design allows us to separate taste-based discrimination from statistical discrimination and examine the impacts of raising the costs of discrimination in such situations. We find discrimination to be commonplace at both margins, with stronger incidence at the extensive margin. We also find higher incidence of taste-based discrimination compared to statistical discrimination. Importantly, we find that when the cost of taste-based discrimination is made sufficiently high, such behaviour disappears at the intensive and extensive margins, providing support for labor market policies that make discrimination very costly for the employer.

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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Coronavirus and the Future of Work: Interview with the Brazilian Daily ‘Valor Econômico’

Background interview with Diego Viana, reporter of the Brazilian daily Valor Econômico, who publishes a story on the relationship between the #Coronavirus Crisis and the future of work. Valor Econômico is the largest financial newspaper in Brazil.

A Federal Reserve official estimated a hike in unemployment of up to 30% in the second quarter for the United States. Is this the kind of figures we should be expecting worldwide? How calamitous is this? If the economy recovers quickly, does it leave long-term scars?

Klaus F. Zimmermann: The impression currently is that the damage will be much larger than during the Great Recession in the financial market crisis where the effects were substantially smaller and much more selective to economies and societies. There cannot be a fast recovery, and society will have to carry a long-term burden.

Can the incentive measures announced so far in the US, Europa, Asia, aimed at reducing the dimension of the economic slump, avoid a depression-like scenario of mass unemployment?

Klaus F. Zimmermann: A focus is on compensation (“whatever it takes for everybody”) and to stabilize jobs; but at the same time public life and large parts of production and consumption have been stopped on command. This is not the setting to avoid mass unemployment, just to make it more acceptable. The pressing question, however, is how long the available financial reserves of countries will allow governments to keep such a policy going.

With many people around the world working from home, some analysts see the epidemic as precipitating a trend towards an increase in remote working. Is this the case? Once the coronavirus crisis is over, will home office have become much stronger, maybe to the point where half of the time spent working is outside the office?

Klaus F. Zimmermann: Remote working will get some push, since the available technology now meets the forced increased demand with some persistence. But I nevertheless expect the adjustments to be small. Since two decades people speculate about the rise of the home office and the end of the traditional firm, with only slow practical changes. For instance, digital communication is no substitute for personal social interactions. Also the recent financial market crisis did not sufficiently change the constraints of the banking sector.

As autonomous workers are particularly exposed to a halt in activities, some analysts see the crisis as demanding – or rather precipitating a preexistence demand for – improved forms of social protection for these workers. What could be done for them in the short term, i.e. the acute moment of this crisis? And in the long term, is there anything in view that would correspond to unemployment insurances?

Klaus F. Zimmermann: Social protection for freelancers as the rising work model including health and unemployment is since long recognized as a challenge issue for the future of work. In the current acute crisis, many governments have already decided to offer self-employed individuals and all types of companies generous credit lines or even fixed amounts of non-repayable transfers.

Hong Kong, and now probably the US as well, are adopting a strategy of depositing a lump sum for everyone, which sounds like an emergency basic income. I reckon you are not in favor of a universal basic income, but how do you evaluate an emergency mechanism such as this one?

Klaus F. Zimmermann: All kinds of helicopter money and government transfers to everybody may help to stabilize consumer demand. But such measures are not helpful at this very moment where most government commands aim at social distancing and lower consumption. Such measures could be useful, however, to jump-start the economy after the end of the Corona pandemic. 

Maybe I should wrap up the themes of all the previous questions into a more general one: for some, this pandemic will usher in a new “great transformation” in Polanyian terms, with a new form of welfare state, adapted to the 21st century. Could this be the case? Is it possible to give the outlines of what such a welfare state would be like?

Klaus F. Zimmermann: The much I am a believer of the old saying, “Never let a good crisis go to waste”, I am afraid that the Corona Crisis will not initiate the new welfare state needed for the 21st century. What we see will strengthen anti-globalism, nationalism and populism. One can only hope that the global threat of this disease reminds us of the benefits of collaborations and solidarity.

Another attempted response is the reduction of working hours and pay, but many economists consider that this is not a regular crisis and the effect of reduced hours would not be as expected (and may even backfire). Do you see this as a sound possibility?

Klaus F. Zimmermann: Creating jobs for all and re-distributing income through the current reduction of working hours and pay is a bad strategy in the middle and longer perspective, since it can only backfire to keep the most productive underemployed.

Labor conditions in the developing world are already much worse than in the developed world. Do you envisage an even more dire scenario in these countries?

Klaus F. Zimmermann: Core in this crisis is the strength of the health care system of the countries. Given the large differences between the developing and the developed world in health care, I am afraid, global inequality will rise with the Corona Crisis.

Another vulnerable category is that of immigrants, as they often occupy the worst positions in the labor market and also frequently lack any rights at all. How hard can we expect them to be hit?

Klaus F. Zimmermann: Refugees and labor migrants will both be affected strongly, since the short-term effects will be followed by even more powerful long-term consequences. Migrant workers, in general, have to fear a higher risk of unemployment and a stronger wage depression if at work. Further: It was now demonstrated that it is (at least seemingly) possible to close country borders, or even the European Union in general. Labor migration has to be expected to further decline with the end of the Carona Crisis.

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Gender Bias and Intergenerational Educational Mobility: Theory and Evidence from China and India

A new GLO Discussion Paper decomposes gender bias in China and India.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 497, 2020

Gender Bias and Intergenerational Educational Mobility: Theory and Evidence from China and India Download PDF
by
Emran, M. Shahe & Jiang, Hanchen & Shilpi, Forhad

GLO Affiliate Hanchen Jiang

Author Abstract: We incorporate gender bias against girls in the family, the school and the labor market in a model of intergenerational persistence in schooling where parents self-finance children’s education because of credit market imperfections. Parents may underestimate a girl’s ability, expect lower returns, and assign lower weights to their welfare (“pure son preference”). The model delivers the widely-used linear conditional expectation function (CEF) under constant returns and separability, but generates an irrelevance theorem: parental bias does not affect relative mobility. With diminishing returns and complementarity, the CEF can be concave or convex, and gender bias affects both relative and absolute mobility. We test these predictions in India and China using data not subject to coresidency bias. The evidence rejects the linear CEF, both in rural and urban India, in favor of a concave relation. The girls face lower mobility irrespective of location in India when born to fathers with low schooling, but the gender gap closes when the fathers are college educated. In China, the CEF is convex for sons in urban areas, but linear in all other cases. The convexity for urban sons supports the complementarity hypothesis of Becker et al. (2018), and leads to gender divergence in relative mobility for the children of highly educated fathers. In urban China, and urban and rural India, the mechanisms are underestimation of ability of girls and unfavorable school environment. There is some evidence of pure son preference in rural India. The girls in rural China do not face bias in financial investment by parents, but they still face lower mobility when born to uneducated parents. Gender barriers in rural schools seem to be the primary mechanism, with no convincing evidence of parental bias.

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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Internal Chinese Welfare Migration: Some causal findings

A new GLO Discussion Paper provides evidence that improved welfare benefits substantially increase internal migration in China.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 498, 2020

Welfare Magnets and Internal Migration in ChinaDownload PDF
by
Jin, Zhangfeng

GLO Fellow Zhangfeng Jin

Author Abstract: This study examines the causal effects of welfare benefits on internal migration decisions. Using a quasi-experimental migration reform across 283 Chinese cities from 2002 to 2015, combined with a difference-in-differences setup, I show that improved welfare benefits substantially increase migration. The observed impact is more pronounced for individuals such as the young, women and medium-low-skilled workers. It is relatively smaller in destinations exposed to larger positive demand shocks, suggesting that improved welfare benefits reduce migration costs. And it persists over the long term. All these findings confirm the existence of sizable welfare magnet effects.

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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Firms benefit from Employer Associations.

A new GLO Discussion Paper provides evidence that Employer Associations affiliated firms in Portugal exhibit better outcomes concerning sales, employment, productivity, and wages.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

GLO Discussion Paper No. 496, 2020

What Do Employers’ Associations Do?Download PDF
by
Martins, Pedro S.

GLO Fellow Pedro S. Martins

Author Abstract: While trade unions have been studied in detail, there is virtually no economics research on employer associations (EAs), trade unions’ counterparts in many countries. However, besides conducting collective bargaining, EAs perform several other activities that can influence economic outcomes, including training and coordination. This paper studies the contributions of EAs by comparing affiliated and non-affiliated firms in terms of sales, employment, productivity, and wages. Using matched employer-employee panel data for Portugal, we find that affiliated firms exhibit better outcomes along most of these dimensions, even when drawing on changes in affiliation status over time; and that this affiliation premium tends to increase with EA coverage (defined as the percentage of workers in the relevant industry/region domain that are employed by affiliated firms). Sectors as a whole also appear to benefit from EA coverage, even if non-affiliated firms do worse.

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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