Klaus F. Zimmermann

A new GLO Discussion Paper reveals that given first names of leaders from World War II can predict behavior in the 1991-1995 Croatian war of independence and beyond.

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

GLO Discussion Paper No. 450, 2020

Names and Behavior in a War – Download PDF by Jurajda, Štěpán & Kovač, Dejan

GLO Fellows Stepan Jurajda & Dejan Kovac

Author Abstract: We implement a novel empirical strategy for measuring and studying a strong form of nationalism – the willingness to fight and die in a war for national independence – using name choices corresponding to previous war leaders. Based on data on almost half a million soldiers, we first show that having been given a first name that is synonymous with the leader(s) of the Croatian state during World War II predicts volunteering for service in the 1991-1995 Croatian war of independence and dying during the conflict. Next, we use the universe of Croatian birth certificates and the information about nationalism conveyed by first names to suggests that in ex-Yugoslav Croatia, nationalism was on a continuous rise starting in the 1970s and that its rise was curbed in areas where concentration camps were located during WWII. Our evidence on intergenerational transmission of nationalism is consistent with nationalist fathers purposefully reflecting the trade-o¤ between within-family and society-wide transmission channels of political values. We also link the nationalist values we proxy using first name choices to right-wing voting behavior in 2015, 20 years after the war.

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

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A new GLO Discussion Paper reveals that, among other insights, R&D has overall negligible effects on the probability of workers to become self-employed; it increases the probability of moving from unemployment to paid employment, especially in routinized areas, and reduces the permeability between routinized and non-routinized workers.

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

GLO Discussion Paper No. 449, 2020

Innovation and Self-Employment – Download PDF
by Ciarli, Tommaso & Di Ubaldo, Mattia & Savona, Maria

GLO Fellows Mattia Di Ubaldo & Maria Savona

Author Abstract: The paper adds to the literature on innovation and employment by looking at the relationship between R&D investments and the rise of alternative work arrangements, particularly self-employment (SE). A literature review on the determinants of the emergence of non-standard work, alternative work arrangements and self-employment if offered first. The contributions that have looked at SE in relation to innovation strategies is surprisingly limited. General trends of SE in Europe are considered. The empirical contribution is focused on the analysis of local labor markets in the UK (Travel-To-Work-Areas, TTWAs), where their initial concentration of routinized and non-routinized jobs is considered. The probability that an individual shifts from paid employment to either unemployment or self-employment over the period 2001-13, as linked to changes in R&D investments in the TTWA is empirically accounted for. Results show that overall R&D has negligible effects on the probability of workers to become self-employed. R&D increases the probability of moving from unemployment to paid employment, especially in routinized areas, and reduces the permeability between routinized and non-routinized workers. Also, a non-negligible increase in the probability that a routinized worker becomes SE as a result of R&D increase is found in low routinized local labor markets, but not in highly routinized areas. The paper sheds new lights on the effect of R&D on employment and self-employment in areas with different degrees of routinization, and adds to the discussion on the more general raise of alternative work arrangements in Europe by disentangling the characteristics of self-employment as resulting from R&D investments.

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

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A new GLO Discussion Paper reveals that firms in China share rents with their workers, although at a smaller level than in developed economies.

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

GLO Discussion Paper No. 448, 2020

Rent sharing in China: Magnitude, heterogeneity and drivers – Download PDF
by Duan, Wenjing & Martins, Pedro S.

GLO Fellow Pedro Martins

Author Abstract: Do firms in China share rents with their workers? We address this question by examining firm-level panel data covering virtually all manufacturing firms over the period 2000-2007, representing an average of 52 million workers per year. We find evidence of rent sharing (RS), with wage-profit elasticities of between 4% and 6%. These results are based on multiple instrumental variables, including firm-specific international trade shocks. We also present a number of complementary findings to understand better the nature of RS in the country: it involves an element of risk sharing, as wages also decrease when profits fall; RS is lower in regions with more latent competition from rural workers; higher minimum wages tend to reduce RS; and, while employer labor market power reduces wages, it increases RS. Overall, despite its importance, RS in China is smaller and more symmetric than in developed economies, which reflects the weaker bargaining power of its workers and the different nature of its labor market institutions.

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

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A new GLO Discussion Paper simulates an increase of public spending in health care and social assistance in the Chinese economy and examines the effects on seven regions of the world economy: China, Japan, the United States, the European Union, Latin America, Asia‐Pacific and the Rest of the World.

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

GLO Discussion Paper No. 447, 2020

Spending in social services in China: A multi-country analysis – Download PDF
by Bajo-Rubio, Oscar & Gómez‐Plana, Antonio G.

GLO Fellow Oscar Bajo-Rubio

Author Abstract: In this paper, we simulate the effects of an increase in the levels of public spending in health care and social assistance in the Chinese economy, and examine its global effects, i.e., the effects on the main macroeconomic variables of seven regions of the world economy, namely, China, Japan, United States, European Union, Latin America, Asia‐Pacific and Rest of the World. Three different rules to finance the increase in public expenditure are considered. The empirical methodology makes use of a computable general equilibrium model, through an extension of the Global Trade Analysis Project model. The policy measure simulated led to either expansionary or contractionary effects on China’s activity levels, depending on whether the government deficit is left to increase, or if taxes are raised instead in order to offset it. While no sector seemed to be particularly hurt by this measure, trade flows were negatively affected, but this did not seem to have a strong influence on the rest of the world.

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

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A new GLO Discussion Paper provides a complete outlook about return, repeat, circular and onward migration; it reveals the new norm of joint decision-making by the family as a unit and underlines the importance of non-economic reasons for return.

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

GLO Discussion Paper No. 446, 2020

Time-Space Dynamics of Return and Circular Migration: Theories and Evidence – Download PDF
by Constant, Amelie F.

GLO Fellow Amelie Constant

Author Abstract: This chapter undertook the monumental task of providing a complete outlook about return, repeat, circular and onward migration by bringing together the perspectives of the host and the home country. In this endeavor, it reviewed and evaluated all theories about why people move, when they circulate, where they go, who are the people who migrate, who are the people who return, and how they change the economic and social structures in the home country. In the process, it revealed the new norm of joint decision-making by the family as a unit and underlined the importance of non-economic reasons for return. The chapter further provided a state-of-the-art literature review about empirical evidence regarding the disparate phenomena of return, circular and onward migration. It emphasized commonalities and compared differences in findings, while connecting them to the theories, policies and institutions. Return, repeat, and circular migrants are self-selected and extremely heterogeneous people and cannot conform under one theory or empirical study. Their de facto migration comportment can be understood by several different theories and, in the absence of good data, it can be explained by a variety of studies. The chapter ends with a critical conclusion and hope to inspire new avenues of research on the topic.

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

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A new GLO Discussion Paper reveals that Russia has similar migration flows than the US and the EU, but they imply rather divergence than convergence across regions.

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

GLO Discussion Paper No. 445, 2020

It’s the way people move! Labour migration as an adjustment device in Russia – Download PDF
by Pastore, Francesco & Semerikova, Elena

GLO Fellow Francesco Pastore

Author Abstract: This paper aims to assess the role of migration as an adjustment mechanism device to favor convergence across states and regions of Russia. In contrast to previous studies, we use variations in the population of a region as a proxy of its net migration rate and apply spatial econometric methodology in order to distinguish the effect from the neighbouring regions. We provide descriptive statistical evidence showing that Russia has more/less/the same intense migration flows than the USA and EU. The econometric analysis shows that migration flows are sensitive to both regional income and regional unemployment differentials. Nonetheless, we find that internal migration is sensitive to regional unemployment and income differentials of neighbouring regions. Dependent on the welfare, pre- or after-crisis period, income in neighbouring regions can create out- or in-migration flows. The relatively high degree of internal mobility coupled with the low sensitivity of migration flows to the local unemployment rate of distant regions might explain why migration flows tends not to generate convergence, but rather divergence across Russian regions.

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

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A new GLO Discussion Paper reveals a significant dependence of current financial institutions in Africa on the legal origin and the colonization type.

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

GLO Discussion Paper No. 444, 2020

Legal History, Institutions and Banking System Development in Africa – Download PDF
by Mutarindwa, Samuel & Schäfer, Dorothea & Stephan, Andreas

GLO Fellow Dorothea Schäfer

Author Abstract: This paper links banking systems development to the colonial and legal history of African countries. Specifically, we investigate the impact of differing legal traditions on the development of existing investor and creditor protection, and on African banking systems. Based on a sample of 40 African countries from 2000 to 2016, our empirical findings show a significant dependence of current financial institutions on the legal origin and the colonization type. Findings also reveal that current legal financial institutions are not the major determinants of banking system development, whereas institutional and regulatory quality significantly matter for banking system development in both common and civil law countries. Strong creditor rights reduce the cost of banking in African countries.

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

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A new GLO Discussion Paper presents evidence that reshoring in the age of automation is positively associated with wages and employment for high-skilled labor but not for low-skilled labor.

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

GLO Discussion Paper No. 443, 2020

Robots, Reshoring, and the Lot of Low-Skilled Workers – Download PDF
by Krenz, Astrid & Prettner, Klaus & Strulik, Holger

GLO Fellow Klaus Prettner

Author Abstract: We propose a theoretical framework to analyze the offshoring and reshoring decisions of firms in the age of automation. Our theory suggests that increasing productivity in automation leads to a relocation of previously offshored production back to the home economy but without improving low-skilled wages and without creating jobs for low-skilled workers. Since it leads also to increasing wages for high-skilled workers, automation-induced reshoring is associated with an increasing skill premium and increasing inequality. We develop a measure for reshoring activity at the macro-level and, using data from the world input output table, we provide evidence for automation-driven reshoring. On average, within manufacturing sectors, an increase by one robot per 1000 workers is associated with a 3.5% increase of reshoring activity. Using robots in countries with similar sectoral structure as an instrument, we find that an increase by one robot per 1000 workers causes a 2.5% increase of reshoring activity. We also provide the first cross-country evidence that reshoring is positively associated with wages and employment for high-skilled labor but not for low-skilled labor and that tariffs increase the degree of reshoring.

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

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A new GLO Discussion Paper finds that the demand-pull effect on firms’ growth is heterogeneous across different types of demand sources and that success depends on firms’ specific knowledge profiles.

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

GLO Discussion Paper No. 442, 2020

Competitive strategies, heterogeneous demand sources and firms’ growth trajectories – Download PDF
by Caravella, Serenella & Crespi, Francesco & Guarascio, Dario & Tubiana, Matteo

GLO Fellow Dario Guarascio

Author Abstract: The present paper explores the demand-pull effect of distinct demand sources (i.e. households and retailers, other firms and public sector) on Italian companies’ growth patterns. Data relies on the PEC (Indagine sulle Professioni e le Competenze) survey carried out by the Institute for Public Policy Analysis (INAPP), which provides a rich set of information on a representative sample of Italian companies (~32.000) observed during the years 2012, 2014 and 2017. In particular, we investigate if and to what extent firm-level growth profiles are linked to the prevalent source of the demand flows that such firms face. The analysis contextually accounts for the role played by technological and knowledge-related heterogeneities in shaping the growth pattern-demand type relationship. The empirical analysis shows that the demand-pull effect on firms’ growth is heterogeneous across different types of demand sources and that the ability to seize the growth-related chances provided by distinct demand conditions is contingent on firms’ specific knowledge profiles.

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

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A new GLO Discussion Paper investigates the evolution of livelihood diversification in Egypt with a particular focus on wealth and urban-rural divides.

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

GLO Discussion Paper No. 441, 2020

Livelihood Diversification Strategies: Resisting Vulnerability in Egypt – Download PDF
by Helmy, Imane

GLO Fellow Imane Helmy

Author Abstract: Livelihood diversification is attracting considerable interest as a tool to cope with economic shocks and resist vulnerability. This paper investigates the evolution of livelihood diversification in Egypt with a particular focus on wealth and urban-rural divides. Using Egypt Labor Market Panel data from 2006 to 2018, I find that rural households have a more diversified livelihood portfolio, yet they diversified away from farming over time. Poor rural households remained dependent on informal livelihood strategies due to the high entry barriers to formal employment. Urban households had significantly less livelihood diversification than rural households. Wealthy households in urban areas tended to depend on relatively more specialized livelihood clusters which were stable over time. These findings imply that distress is a potential reason for diversification in urban areas.

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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