A new GLO Discussion Paper reviews the economic literature to understand delayed graduations and university dropouts.
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.
Author Abstract: This paper surveys the theoretical approaches used in the literature to study the phenomenon of delayed graduation and university dropout. The classical human capital model does not contemplate failure, which the amended human capital model does. Delayed graduation and university dropout are two stages of the same decision repeated over the years to step aside or leave when the net returns to education expected ex ante are negative. Failure can also be taken as a signal of the real skills of individuals who do not succeed to gain a higher level of education. The job search approach underlines the role of positive/negative local labor market conditions as a factor able to explain choices of investment in human capital. Within the bargaining approach, the decision to delay graduation or dropout from university is related to bargaining within the family between parents and children: the former give their children better consumption opportunities in return for their presence at home. Although the amended human capital model is certainly the most compelling one, the other approaches help framing factors which are neglected in the human capital model, forming a well-structured body of knowledge to better understand the phenomenon under scrutiny, while also suggesting a set of policy tools to better control it.
A new GLO Discussion Paperstudies forItaly how over-education affects migrants and it evaluates the role informal networks play in producing it. Migrants are more over-educated than natives, but the role of networks is equally relevant for both ethnic groups.
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.
Author Abstract: Whilst migration has become a structural feature of most European countries, the integration of foreigners in the labour market continues to raise concerns. Evidence across countries shows that migrants are more often over-educated than natives. Over the last years, scholarship has intended to capture the effect of informal networks on migrants’ over-education. Interestingly, no study has looked into the Italian case, yet a country for which the effect of networks on education-occupation mismatch is well documented. This article has two objectives: it assesses the extent to which over-education affects migrants and it evaluates the role informal networks play in producing it. We find that foreigners are more over-educated than natives but that the role of networks is consistent across the two groups. Empirical evidence is drawn from the application of quantitative and counter-factual methods to PLUS 2018 – Participation, Labour, Unemployment Survey.
Posted inNews, Research|Comments Off on September 24, 2019. Effects of social networks on the education-occupation mismatch of migrants. A new GLO Discussion Paper.
A new GLO Discussion Paper provides an updated picture of main empirical evidence on the relationship between new technologies and employment.
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.
Author Abstract: The present technological revolution, characterized by the pervasive and growing presence of robots, automation, Artificial Intelligence and machine learning, is going to transform societies and economic systems. However, this is not the first technological revolution humankind has been facing, but it is probably the very first one with such an accelerated diffusion pace involving all the industrial sectors. Studying its mechanisms and consequences (will the world turn into a jobless society or not?), mainly considering the labor market dynamics, is a crucial matter. This paper aims at providing an updated picture of main empirical evidence on the relationship between new technologies and employment both in terms of overall consequences on the number of employees, tasks required, and wage/inequality effect.
Posted inNews, Research, Uncategorized|Comments Off on September 23, 2019. ‘Testing the employment and skill impact of new technologies’. A new GLO Discussion Paper.
Visiting the “Teufelsloch (Devil’s Hole)” and “Das Schwarze Kreuz (Black Cross)” near Altenahr.
“It is even said that the devil was once here – he supposedly left behind the man-sized “Devil’s Hole” (Teufelsloch) in one of the mighty rocks, through which there is a view of the neighbouring town of Altenburg.” I walked up passing the “Black Cross” to find a pathway. It is understandable that even the devil once got disoriented here (my interpretation) and “forgot about going home”.
The article finds thatparents compensate disadvantaged children with greater cognitive resources using data fromprimary school-aged Ethiopian siblings.
Author Abstract: A small but increasing body of literature finds that parents invest in their children unequally. However, the evidence is contradictory, and providing convincing causal evidence of the effect of child ability on parental investment in a low-income context is challenging. This paper examines how parents respond to the differing abilities of primary school-aged Ethiopian siblings, using rainfall shocks during the critical developmental period between pregnancy and the first 3 years of a child’s life to isolate exogenous variations in child ability within the household, observed at a later stage than birth. The results show that on average parents attempt to compensate disadvantaged children through increased cognitive investment. The effect is significant, but small in magnitude: parents provide about 3.9% of a standard deviation more in educational fees to the lower-ability child in the observed pair. We provide suggestive evidence that families with educated mothers, smaller household size and higher wealth compensate with greater cognitive resources for a lower-ability child.
Read also the Lead Article of issue 4 (2019): Gautam Hazarika, Chandan Kumar & Sudipta Sarangi: “Ancestral ecological endowments and missing women“ Journal of Population Economics, Vol. 32 (2019), Issue 4 (October), pp. 1101-1123 Journal Website, complete issue 4. Paper PDF – OPEN ACCESS. GLO Fellows Gautam Hazarika, Chandan Kumar Jha & Sudipta Sarangi
Posted inNews, Research|Comments Off on September 21, 2019. ‘Parental responses to differences in children’s revealed abilities’: Forthcoming in the Journal of Population Economics.
A new GLO Discussion Paperfinds for Switzerland thatinclusive labor market policies increase the labor market participation of asylum seekers.
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.
Author Abstract: In the face of recent refugee migration, early integration of asylum seekers into the labor market has been proposed as an important mechanism for easing their economic and social lot in the short as well as in the long term. However, little is known about the policies that foster or hamper their participation in the labor market, in particular during the important initial period of their stay in the host country. In order to evaluate whether inclusive labor market policies increase the labor market participation of asylum seekers, we exploit the variation in asylum policies in Swiss cantons to which asylum seekers are as good as randomly allocated. During our study period from 2011 to 2014, the employment rate among asylum seekers varied between 0% and 30.2% across cantons. Our results indicate that labor market access regulations are responsible for a substantial proportion of these differences, in which an inclusive regime increases participation by 11 percentage points. The marginal effects are larger for asylum seekers who speak a language that is linguistically close to the one in their host canton.
Posted inNews, Research|Comments Off on September 19, 2019. Asylum seekers are more likely to work with more inclusive labor market access regulations! New GLO Discussion Paper.
A new GLO Discussion Paperfinds thatparental migration has a significant negative effect on children’s non-cognitive development.
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.
Author Abstract: Many children worldwide are left behind by parents who are migrating for work. While previous literature has studied the effect of parental migration on children’s educational outcomes and cognitive achievements, this study focuses on how parental migration affects children’s non-cognitive development. We use longitudinal data of children in rural China and adopt labor market conditions in destination provinces as instrumental variables for parental endogenous migration choice. We find that parental migration has a significant negative effect on children’s non-cognitive development. Differentiating inter- and intra-provincial migrations suggests that the negative effect of parental migration is mainly driven by inter-provincial migrations. We test four different mechanisms of how parental migration affects child development including parental financial inputs, parental time inputs, household bargaining, and children’s own time input. Our results provide insights into the relative importance of different mechanisms in determining the effect of parental migration on children’s non-cognitive skill formation.
Posted inNews, Research|Comments Off on September 12, 2019. Parental Migration Critically Affects Non-cognitive Development of Children in Rural China’. New GLO Discussion Paper.
“July finally saw the long and drawn out battle to compensate 9/11’s ill first responders come to an end. President Trump signed a permanent extension of the Victim Compensation Fund into law which effectively authorizes billions of dollars to cover surviving first responders for the rest of their lives. A grim new statistic reported by ABC News highlights just how important it was to get that legislation passed. Officials recently stated that 241 NYPD officers died in the 18 years since 9/11 – 10 times more than the 23 killed during the attacks.
Firefighters are also experiencing devastation and in July, officials in New York reported that the 200th FDNY member had passed away due to a World Trade Center-related illness. 343 firefighters died during the attacks and 204 more have now succumbed to illness according to the Uniformed Firefighters Association of New York. Cancer and respiratory diseases have caused the most deaths over the past 18 years but new research suggests that first responders also have higher rates of cardiovascular disease. Published in the medical journal JAMA Network Open, it found that the first firefighters on the scene were 44 percent more likely to develop cardiovascular disease than those who arrived a day later.”
The GLO Discussion Paper of the Month of August finds that government redistribution through expenditures is a useful tool capable of reducing net income inequality, and even more effectively than has been predicted by previous studies.
Author Abstract:Expansion of the public sector and redistributive policies may reduce income inequality, but formal tests suffer from the problem of endogeneity of government size with respect to the distribution of income. Studying 30 European countries over the period 2004-2015, we apply instrumental variable estimation techniques to identify a causal relationship between income inequality and government size, measured as the government expenditure share in GDP. Using a novel instrument – the number of political parties in the ruling coalition – we find that accounting for the possible endogeneity of government size increases the magnitude of the estimated negative effects. Our findings thus suggest that much of the literature underestimates the true role of the government in attenuating income inequality. The estimated relationship between income inequality and government size persists in a series of robustness checks.
GLO DP Team Senior Editors: Matloob Piracha (University of Kent) & GLO; Klaus F. Zimmermann (UNU-MERIT, Maastricht University and Bonn University). Managing Editor: Magdalena Ulceluse, University of Groningen. DP@glabor.org
Posted inNews, Research|Comments Off on September 11, 2019. “Income Inequality and the Size of Government in Europe” is the GLO Discussion Paper of the Month in August.
GLO is affiliated with many events and conferences over the year. For our complete listing see the GLO Events page. New events will be announced on the GLO News page, where you can register to obtain regular email messages.
Brisbane, Australia. ThirdAustralian Gender Economics Workshop (AGEW) will take place on February 5-7, 2020 at the Queensland University of Technology. Submission deadline is 18 September 2019.MORE INFORMATION.
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