Shuaizhang Feng and Klaus F. Zimmermann Debate Long-term Unemployment in China and Europe

How to measure, analyze and fight long-term unemployment in China and Europe? Labor market experts Shuaizhang Feng (Jinan University) and Klaus F. Zimmermann (UNU-MERIT, Maastricht) discussed this in Guangzhou/China on March 19, 2018.

On the invitation of Professor and Dean Shuaizhang Feng, Head of the Institute for Economic and Social Research (IESR), the President of the Global Labor Organization (GLO), Klaus F. Zimmermann (UNU-MERIT, Maastricht), visited Jinan University in Guangzhou/China from March 11 to March 20. Together with GLO Fellow Feng, he has organized a joint IESR – GLO Labor Workshop that took place at Jinan University on March 13, 2018.

On March 19, Shuaizhang Feng and Klaus F. Zimmermann had a more than two hours dialogue discussing labor market challenges and policies in China and Europe. They talked about similar unemployment problems, exploring underlying causes of the high long-term unemployment rates, and the consequences and policies to address these issues.

Chinese – European dialogue in Guangzhou/China on March 19, 2018: Shuaizhang Feng (right) and Klaus F. Zimmermann

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Source: https://iesr.jnu.edu.cn/#/EnWeb/News/NewsDetail?id=2019&nid=5&cid=2

China (following Feng et al., 2017): “Unemployment rates in countries across the world are strongly correlated with GDP. China is an unusual outlier from the pattern, whose official government statistics show abnormally low, and suspiciously stable, unemployment rates relative to its GDP….. Estimates of China’s unemployment rate for its local urban Hukou population using a more reliable, nationally representative dataset for that population than in prior work…. show unemployment rates …” that “…differ dramatically from those supplied in official data and are much more consistent with what is known about key historical developments in China’s labor market. The rate averaged 3.7% in 1988–1995, when the labor market was highly regulated and dominated by state-owned enterprises, but rose sharply during the period of mass layoff from 1995 to 2002, reaching an average of 9.5% in the subperiod from 2002 to 2009.” Researchers work on more transparent regular statistics which will help to improve employment policies.

Europe: In early 2018 (January), Europe exhibits high unemployment rates (European Union: 7.3%; Euro Area 8.6%) with a large variance (e.g., Greece 21%; Spain 16%; Romania 4.6%; Germany 3.6%) following the slow recovery after the worldwide 2008 recession. European markets were largely stagnating with youth unemployment traditionally twice as large as general unemployment. An exception has been Germany which has demonstrated that structural unemployment can be reduced through labor market reforms. Cross-country variations of long-term unemployment are characterized by skills mismatch, inflexibility, lack of education and compensating differentials. Solutions include youth vocational training, flexible management of working time in crisis periods (short-time work, time accounts, labor hording), social cohesion, controlled unit labor costs, incentive-oriented labor policies and effective program evaluation.

 

Literature:

Shuaizhang Feng, Yingyao Hu & Robert Moffitt: Long run trends in unemployment and labor force participation in urban China, Journal of Comparative Economics, 45 (2017) 304–324.

Shuaizhang Fengy & Naijia Guo: Labor Market Dynamics in Urban China and the Role of the State Sector, (2018), Jinan University, mimeo.

Jo Ritzen & Klaus F. Zimmermann: Towards a European full employment policy, UNU-MERIT Discussion Paper #2018-018.

Ulf Rinne & Klaus F. Zimmermann: Is Germany the North Star of Labor Market Policy?, IMF Economic Review, 61 (2013), 702-729.

Pierre Cahuc
Stéphane Carcillo
Ulf Rinne
Klaus F. Zimmermann
Youth Unemployment in Old Europe: The Polar Cases of France and Germany
IZA Journal of European Labor Studies, 2:18 (2013)

THANKS FOR THE DEBATE AND A GREAT VISIT:

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Family and Childhood Experiences Affect Adult Wellbeing: New Free Discussion Paper

This is the GLO Discussion Paper of the month March 2018: 
Flèche, Sarah & Lekfuangfu, Warn N. & Clark, Andrew E. , The Long-Lasting Effects of Family and Childhood on Adult Wellbeing: Evidence from British Cohort Data, GLO Discussion Paper, No. 184, March 2018. Free download.

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Abstract: To what extent do childhood experiences continue to affect adult wellbeing over the life course? Previous work on this link has been carried out either at one particular adult age or for some average over adulthood. We here use two British birth-cohort datasets (the 1958 NCDS and the 1970 BCS) to map out the time profile of the effect of childhood experiences on adult outcomes, including life satisfaction. We find that the effects of many aspects of childhood do not fade away over time but are rather remarkably stable. In both birth-cohorts, child non-cognitive skills are the strongest predictors of adult life satisfaction at all ages. Of these, emotional health is the strongest. Childhood cognitive performance is more important than good conduct in explaining adult life satisfaction in the earlier NCDS cohort, whereas this ranking is inverted in the more recent BCS.

This is the GLO Discussion Paper of the month March 2018 written by GLO Fellow Andrew E. Clark, one of the star writers in the wellbeing literature, and co-authors.

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.

ALL GLO Discussion Papers of March 2018

190 Residential Satisfaction for a Continuum of Households: Evidence from European Countries – Download PDF
by Borgoni, Riccardo & Michelangeli, Alessandra & Pirola, Federica

189 The economics of university dropouts and delayed graduation: a survey – Download PDF
by Aina, Carmen & Baici, Eliana & Casalone, Giorgia & Pastore, Francesco

188 The Optimal Graduated Minimum Wage and Social Welfare – Download PDF
by Danziger, Eliav & Danziger, Leif

187 Minority Groups and Success in Election Primaries – Download PDF
by Epstein, Gil S. & Heizler, Odelia

186 Two and a half million Syrian refugees, skill mix and capital intensity – Download PDF
by Akgündüz, Yusuf Emre & Torun, Huzeyfe

185 Voting in Hiring Committees: Which “Almost” Rule Is Optimal? – Download PDF
by Baharad, Eyal & Danziger, Leif

184 The Long-Lasting Effects of Family and Childhood on Adult Wellbeing: Evidence from British Cohort Data – Download PDF
by Flèche, Sarah & Lekfuangfu, Warn N.s & Clark, Andrew E.

GLO Fellow Andrew E. Clark

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Editor’s Time: Exchange Between the Editors of Two Top Journals in Economics in Guangzhou

Hua Liang, the Economics Editor of the top Chinese research journal “Social Science in China” met Klaus F. Zimmermann, the Editor-in-Chief of the “Journal of Population Economics” for a thorough exchange of ideas, strategies and practices of the academic journal business. The conversation was guided by Shuaizhang Feng.

On the invitation of Professor and Dean Shuaizhang Feng, Head of the Institute for Economic and Social Research (IESR), the President of the Global Labor Organization (GLO), Klaus F. Zimmermann (UNU-MERIT, Maastricht), visited Jinan University in Guangzhou/China from March 11 to March 20. Together with GLO Fellow Feng, he had organized a joint IESR – GLO Labor Workshop that took place at Jinan University on March 13, 2018.

The meeting between Editor Hua Liang (Beijing) and Editor-in-Chief Klaus F. Zimmermann took place on March 18, 2018 at IESR/Jinan University under the direction of Dean Shuaizhang Feng for two hours.

The peer-reviewed Journal of Zhongguo Shehui Kexue is the top social science journal hosted by the Chinese Academy of Social Sciences. It was founded in 1980 and is committed to China-related studies and publishes in Chinese. Since the beginning, Social Sciences in China publishes articles translated to English to make them available and to seek the debate with the global world.

The journal is a platform projecting new realms, trends and achievements in Chinese academic studies. It introduces the latest developments in Chinese social sciences to a foreign audience and bridges social sciences researchers and readers worldwide. It is a valuable resource for China studies with a large international impact.

The Journal of Population Economics was created in 1988 and is an international quarterly that publishes original theoretical and applied research in all areas of population economics. It is peer-reviewed and covers international research on the economics of population, household and human resources. The journal is considered to be the top field journal in population economics.

Micro-level topics examine individual, household or family behavior, including household formation, marriage, divorce, fertility choices, education, labor supply, migration, health, risky behavior and aging. Macro-level investigations may address such issues as economic growth with exogenous or endogenous population evolution, population policy, savings and pensions, social security, housing, and health care.

For a recent review of the journal see A. Brown and K. F. Zimmermann, Three decades of publishing research in population economics, Journal of Population Economics, (2017), 30: 11-27 and the recent 2017 Report of the Editor-in-Chief.

Both editors, Hua Liang and Klaus F. Zimmermann identified similar challenges for the huge responsibility to select the most important and potentially influential pieces of research from a very large inflow of highly qualified articles, although the two academic products serve somewhat different purposes beyond supporting academic excellence. Facing globalization and benefiting from international exchange were seen as chances. Both editors thanked Dean Shuaizhang Feng for his invitation to this highly productive and informative meeting.

Shuaizhang Feng, Hua Liang and Klaus F. Zimmermann

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Public Policy Lecture on European Migration Challenges: GLO President Zimmermann spoke at Jinan University

The President of the Global Labor Organization (GLO), Klaus F. Zimmermann (UNU-MERIT, Maastricht), visited Jinan University in Guangzhou/China from March 11 to March 20 on the invitation of Dean Shuaizhang Feng, Head of the Institute for Economic and Social Research (IESR).  GLO Fellow Professor Feng had organized on March 13 at Jinan University the first joint IESR – GLO Labor Workshop.

On March 15, 2018, Klaus F. Zimmermann gave a Public Policy Lecture in the University of Jinan on:

European Migration Challenges and Perspectives.

He spoke about:

I. Challenges

►The population size & labor supply challenge: Europe is aging and shrinking

►The European refugee crisis: Global tensions and climate change will bring more

►Facts and perceptions about migration: The opening gap

II. Solutions

►More not less Europe is needed

►Jobs for migrants

►Solving the communication puzzle

III. Perspectives after the French, Dutch, Austrian, German & Italian elections

IV. Conclusions

►A core recommendation for European policy making was that migrants need to get jobs early on, whether they come as refugees or for work.

Zimmermann at work during his lecture.

Literature:

Zimmermann, Klaus F., Refugee and Migrant Labor Market Integration: Europe in Need of a New Policy Agenda. Mimeo. Presented at the EUI Conference on the Integration of Migrants and Refugees, 29-30 September 2016 in Florence. Published in: Bauböck, R. and Tripkovic, M.,  The Integration of Migrants and Refugees.  An EUI Forum on Migration, Citizenship and Demography, European University Institute, Robert Schuman Centre for Advanced Studies, Florence 2017, pp. 88 – 100.

GLO President Klaus F. Zimmermann in Guangzhou while recruiting new GLO Fellows among the very many local top researchers.

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GLO President Klaus F. Zimmermann Met GLO Officers in Guangzhou/China

On the invitation of Professor and Dean Shuaizhang Feng, Head of the Institute for Economic and Social Research (IESR), the President of the Global Labor Organization (GLO), Klaus F. Zimmermann (UNU-MERIT, Maastricht), visited Jinan University in Guangzhou/China from March 11 to March 20. Together with GLO Fellow Feng, he has organized a joint IESR – GLO Labor Workshop that took place at Jinan University on March 13, 2018.

Zimmermann used the visit to meet with various GLO activists to discuss further GLO ventures in Asia, for instance with Niaz Asadullah (University of Malaysia) see also, who is the Southeast Asia Lead of GLO and Corrado Giulietti (University of Southampton), who is GLO Research Director and Lead of the China Program of GLO.

They also met Professor Zhong Zhao of Renmin University of China, also a GLO Fellow, to discuss further GLO activities in Beijing.

Zhong Zao gave a research seminar at Jinan University on March 14, 2018, on “Does Free Education Help to Combat Child Labor?” He evaluated the effect of a free compulsory education reform in rural China on the child labor incidence. In his study, he exploited the cross-province variation in the roll-out of the reform and applied a difference-in-differences strategy to identify the causal effects of the reform. Zhong Zao’s research finds that exposure to the free compulsory education significantly reduces the incidence of child labor for boys, but has no significant effect on the likelihood of child labor for girls. Specifically, one additional semester of free compulsory education decreases the incidence of child labor for boys by 8.1 percentage points. Moreover, the free compulsory education reform may induce parents to reallocate resources towards boys within the household.

Corrado Giulietti's profile photo

Corrado Giulietti, GLO Research Director, University of Southampton, a renowned China expert.

 

Above from the left Zhong Zao, Shuaizhang Feng, and Klaus F. Zimmermann during the seminar of Professor Zao.

Below: M Niaz Asadullah (left) and Klaus F. Zimmermann before the seminar of Professor Zao.

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First IESR – GLO Labor Workshop took place in Guangzhou at Jinan University, China

Professor and Dean Shuaizhang Feng, Head of the Institute for Economic and Social Research (IESR) and GLO President Klaus F. Zimmermann (UNU-MERIT, Maastricht) met with a larger number of Chinese researchers, GLO Fellows and scientists from outside China for the first IESR – GLO Labor Workshop. The event took place at Jinan University, China, in Guangzhou on March 13, 2018.  GLO stands for Global Labor Organization, one of the largest networks in economics in the world. As a GLO Fellow, Professor Feng is also a prominent member of this network.

Welcome to an exciting and inspiring event: Shuaizhang Feng (right), Founding Director of IESR and its spiritus rector, and GLO President Klaus F. Zimmermann.

Several other GLO Fellows were present at the event, including M Niaz Asadullah (University of Malaysia and GLO), who is also the Southeast Asia Lead of the GLO research program.

See below for the full conference program. A selective overview:

  • Prof. Zimmermann provided the opening paper presentation on “Arsenic Contamination of Drinking Water and Wellbeing ” at the workshop.

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  • The second paper was presented by Zhe Yang (Jinan University and GLO) on bargaining relationships in partnerships (“Cohabitation or Marriage? Relationship Bargaining with an Endogenously Determined Balance of Power”). He documented that relative to marriage, cohabitation is popular among two types of couples: For the first type, the two partners have roughly equal potential wages and both prefer cohabitation to marriage, while the second type is featured by two partners with extremely unequal potential wages, of whom the poorer partner wants marriage, but the richer partner prefers cohabitation and uses breaking up as a threat in the resulted relationship bargaining. To examine the causal effect of gender-wage equality on cohabitation rates, the speaker constructed potential wages for both working and non-working partners. The empirical findings confirmed that a couple’s probability of cohabitation relative to marriage declines first, and then rises as the differences in potential-wages increases.
  • The third paper was provided by Shu Cai (Jinan University and GLO) on “Migration and Subjective Well-Being of Left-behind Parents in Rural China”. His study (co-authored by GLO Fellow Albert Park, Hongkong) found that the impact of migration on the well-being of the left-behind is not straightforward. Using panel data of experienced well-being measured by the Day Reconstruction Method in rural China the research investigated the overall impact of migration of adult children on the subjective well-being of the left-behind parents. The instrumental variable estimates suggest that parents left behind are worse off when their adult children migrate, even though they are economically better off. The  left-behind parents spend more time working and less time in social activities, and they experience lower well-being.
  • A further paper was delivered by Yi Chen (Jinan University and GLO) on “China’s Family Planning Leading Group and the Fertility Decline since 1970”: China introduced its world-famous one-child policy in 1979. However, its fertility appears to have declined even faster in the early 1970s than it did after 1979. The research highlighted the importance of the Family Planning Leading Group in understanding the fertility decline since the early 1970s. In 1970, provinces gradually established an institution named the Family Planning Leading Group to facilitate the restoration of family planning, which had previously been interrupted by the outbreak of the Cultural Revolution. An important feature of this policy change was that the process differed by province. The research found that provinces that formed the leading group earlier also experienced an earlier decline in the fertility rate. Exploiting this provincial variation it is possible to explain about half of the decline in China’s total fertility rate from 5.7 in 1969 to 2.7 in 1978. In comparison to the 1979 one-child policy, which previous research has widely treated as an exogenous shock to the fertility rate, the presented empirical strategy captures a greater decline in the fertility rate and does not result in a contemporaneous increase in the sex ratio.
  • Shuaizhang Feng (Jinan University and GLO) studiedChina’s Income Inequality: 1992-2009″.

  • M Niaz Asadullah (University of Malaysia and GLO) spoke about “Marriage, Work, and Migration: The Role of Infrastructure Development and Gender Norms”.

Niaz Asadullah & Shuaizhang Feng interacting lively.

 

The IESR-GLO Joint Labor Workshop Program

Venue: Room 106, Zhonghui Building, Jinan University, Guangzhou, China

9:00am: Welcome

Shyamal Chowdhury, Annabelle Krause and Klaus F. Zimmermann (GLO and UNU-MERIT): Arsenic Contamination of Drinking Water and Wellbeing

Zhe Yang (Jinan University and GLO): Cohabitation or Marriage? Relationship Bargaining with an Endogenously Determined Balance of Power

Shu Cai (Jinan University and GLO), Albert Park and Winnie Yip: Migration and Subjective Well-Being of Left-behind Parents in Rural China: Evidence from Time Use Data

12:00-1:30pm Lunch

1:30pm:

Amrit Amirapu, M Niaz Asadullah (University of Malaysia and GLO) and Zaki Wahhaj: Marriage, Work, and Migration: The Role of Infrastructure Development and Gender Norms

Shuaizhang Feng (Jinan University and GLO) and Gaojie Tang: Accounting for China’s Income Inequality: 1992-2009

Yi Chen  (Jinan University and GLO) and Yingfei Huang: The Power of the Government: China’s Family Planning Leading Group and the Fertility Decline since 1970

Core Participants of the IESR – GLO Workshop

See: https://iesr.jnu.edu.cn/#/

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Zimmermann discusses career strategies with young Chinese scholars at Jinan University

On the invitation of Professor and Dean Shuaizhang Feng, Head of the Institute for Economic and Social Research (IESR), the President of the Global Labor Organization (GLO), Klaus F. Zimmermann (UNU-MERIT, Maastricht), was visiting Jinan University in Guangzhou, China, from March 11 to March 20. In only two years, Professor Feng was building up an amazing research center with a large number of excellent young scholars.

On March 12, Zimmermann gave a “career talk” for a larger number of young scholars and started his discussions which various individuals. He spoke about his own career background, the challenge of publishing in academic journals, the involvements in academic networks and the media responsibilities of scientists. Zimmermann has been Program Director of CEPR, Founding Director of IZA and President of DIW Berlin. He has created the IZA Journals and was involved in various other journals, e.g. he was one of the Managing Editors of Economic Policy. He still is the Editor-in-Chief of the Journal of Population Economics and directs GLO as its President.

Zimmermann spoke about the Journal of Population Economics, see also the latest Report of the Editor-in-Chief. (The 2017 Editor-in-Chief Report can be accessed here.) The current final acceptance rate of this leading field journal is below 8%. The 2018 Kuznets Prize winners for the best journal article in 2017 are Chunbei Wang & Le Wang, see for further information. Chunbei Wang and Le Wang, now both at the University of Oklahoma, got their Bachelor Degree in 2001 from Jinan University. See a report on the prize ceremony and an interview with author Le Wang on the message of the article.

Related research articles of Zimmermann:

  • Advising Policymakers Through the Media, Journal of Economic Education, 35 (2004), 395-405.
  • Publications: German Economic Research Institutes on Track, Scientometrics, 80 (2009), 233-254. (With R. Ketzler)
  • Trends in Economic Research: An International Perspective, Kyklos, 63 (2010), 479-494. (With A. Cardoso and P. Guimarães.)
  • Comparing the Early Research Performance of PhD Graduates in Labor Economics in Europe and the USA, Scientometrics, 84 (2010), 621-637. (With A. Cardoso and P. Guimarães.)
  • A Citation-Analysis of Economic Research Institutes, Scientometrics, 95 (2013), 1095-1112. (With R. Ketzler.)
  • Three Decades of Publishing Research in Population Economics. Journal of Population Economics. 30 (2017), 11-27. (With A. J. G. Brown.)

Zimmermann at the entry gate of Jinan University, main campus

 

 

 

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Zimmermann’s China Research Papers

On the invitation of Professor and Dean Shuaizhang Feng, Head of the Institute for Economic and Social Research (IESR), the President of the Global Labor Organization (GLO), Klaus F. Zimmermann (UNU-MERIT, Maastricht), was visiting Jinan University in Guangzhou, China, from March 11 to March 20. On March 11, on a short stop on Beijing Airport on his transfer to Guangzhou, he was reflecting his China research papers in the comfortable Air China Lounge.

Zimmermann‘s selected research papers on China:

  • Relative Concerns of Rural-to-Urban Migrants in China, Journal of Economic Behavior and Organization, 81 (2012), 421-441. (With A. Akay and O. Bargain.)
  • Self-Employment of Rural-to-Urban Migrants in China, International Journal of Manpower, 33 (2012), 96-117.  (With C. Giulietti and G. Ning.)
  • China’s Latent Human Capital Investment: Achieving Milestones and Competing for the Top, Journal of Contemporary China, 22 (2013), 109-130. (With A. Constant, B. Tien and J. Meng.)
  • The RUMiC Longitudinal Survey: Fostering Research on Labor Markets in China, IZA Journal of Labor and Development, 3 (2014) (With M. Akgüc and C. Giulietti.)
  • Remittances and Well-Being among Rural-to-Urban Migrants in China, Review of Economics of the Household, 12 (2014), 517-546. (With A. Akay, C. Giulietti and J.D. Robalino.)
  • Sibling Influence on the Human Capital of the Left Behind, Journal of Human Capital, 9 (2015), 403-438. (With C. Biavaschi and C. Giulietti.)
  • Remittances and Relative Concerns in Rural China, China Economic Review, 37 (2016), 191-207. (With A. Akay, O. Bargain, C. Guilietti and J. D. Robalino.)
  • Risk Attitudes and Migration, China Economic Review, 37 (2016), 166-176. (With M. Akgüc, X. Liu and M. Tani.)

 

 

 

Zimmermann reflecting in the  Air China Lounge in Beijing

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EBES-GLO-FOM Conference in Berlin: May 23, 2018 GLO Sessions Complete

The 25th Conference of the Eurasia Business and Economics Society (EBES) will take place on May 23-25, 2018 in Berlin/Germany. It is jointly organized with the Global Labor Organization (GLO) and hosted by the FOM University in their Berlin study center. A previous announcement.  See also for: Further information.

On May 23, 2018 three GLO sessions will contribute to the success of the 25th EBES conference in Berlin:

GLO Policy Panel on: “Mobilizing Human Resources in Africa”

GLO Research Paper Session  on: “Wellbeing”

GLO “Thematic Research Cluster” Session

!! At the 25th EBES/GLO Conference – Berlin, Germany, May 23, 2018!!

Policy Panel on: “Mobilizing Human Resources in Africa”

Ernest Ngeh Tingum (University of Cape Town, South Africa): A research agenda for trade developments in Africa

Martin Kahanec (Central European University, Budapest, Hungary) with Martin Guzi (Masaryk University, Brno, Czech Republic): A research agenda concerning subjective and objective evaluations of living wages in Africa

Kea Tijdens (University of Amsterdam, Netherlands, and WageIndicator Foundation): A research agenda focussing on informal labour markets in Africa

Tilman Brück (International Security and Development Center, Berlin, Germany and London School of Economics, UK): Employment Creation and Peace Building

Almas Heshmati (Jönköping International Business School, Sweden, and Sogang University, South Korea; GLO Cluster Lead Africa): GLO Thematic Cluster on Labor Markets in Africa

SESSION CHAIR: Kea Tijdens (University of Amsterdam, Netherlands, and WageIndicator Foundation) and Christoph Kannengießer (CEO, German African Business Association), invited 

 Abstracts:

TINGUM: Micro data of the Regional Program Enterprise Development for Cameroon’s manufacturing firms in 2009 reveal that most firms were technically inefficient, but that firms in the food processing sector, followed by wood and furniture were most efficient. Firms with 5 to 20 years of operation experience were found to be more efficient. Results show that a higher level of efficiency, firm size, foreign ownership, lower tax rates, producing in the industrial zone, and being in the food processing and textile sectors are the major determinants of the propensity to export and for the decision to export or not. The policy recommendation is that, there is still room for technical efficiency improvements with existing firm technologies. In the near future, however, new technologies must be introduced to sustain higher efficiency levels and reduce related production costs. More so, in order to promote efficiency and export performance, polices should be designed at attracting FDIs more especially in the food processing and textile sectors. Follow-up research is urgently needed, for Cameroon and other African countries. (See Ngeh Ernest Tingum (2014) Technical Efficiency and Manufacturing Export Performance in Cameroon, A Firm Level Analysis, Ph.D. (Economics) Dissertation, University of Dar es Salaam, Tanzania.)

KAHANEC with GUZI: Living wages are increasingly used to assess the economic adequacy of legal minimum wages. Different approaches have been developed to estimate the cost of living for a family of a particular size across countries. In this paper the calculated living costs are contrasted with the subjective measures of minimum family income necessary to secure a decency. The aim of this effort is to understand that the subjective and objective evaluations of living wages have direct relevance to the concerns of societies and individuals. Data from different sources are put together (including available national surveys and WageIndicator Cost of Living surveys that include question on minimum family income) to gather information for the number of African countries. The calculated living costs are obtained from the reports of Global Living Wage Coalition and WageIndicator that estimate the living wages in developing countries. In addition to informing policy, this research will show that living wages provide a meaningful metric of economic adequacy that reflects the needs of workers and their cost of living.

TIJDENS: In recent decades, the informal economy has evoked considerable interest from researchers, aiming to estimate and explain its size in developing countries. Over the years a variety of views on informality have proliferated and the range of indicators has been broadened accordingly, as can be grasped from ILO, IMF and World Bank publications. The topics of discussion focus around the status of micro-entrepreneurs, informal or unregistered workers in formal enterprises, and in/exclusion from the benefits and rights incorporated in labour laws and social security systems. The plurality of views tends to collide with the limited possibilities to empirically test the dimensions suggested, often resulting in a return to simple dichotomies. Based on merged data of comparable face-to-face surveys sampled from national establishment registers in nine countries: Benin, Ghana, Guinea, Kenya, Madagascar, Niger, Rwanda, Senegal and Togo (2006-2014) the authors developed an index for job-based informality: an 11-point interval scale, ranging from 0=very informal to 10=very formal, based on employment status, agreed working hours, earnings in cash or in kind, and contribution and entitlement to social security. Working in a small establishment is the most important factor determining a low score on the index, and so are workers in trade, transport and hospitality, and having a low education. The more informal workers are, the lower their wages, and the more they are working more than 48 hours. A research agenda for Africa should include detailed empirical measurement and analysis of the multi-dimensional concepts of informal work, to underpin policies related to formality in labour markets. (See Tijdens KG, Besamusca J, Van Klaveren M (2015) Workers and labour market outcomes of informal jobs in formal enterprises. A job-based informality index for nine sub-Saharan African countries, European Journal of Development Research, 1 – 19, doi: 10.1057/ejdr.2014.73)

BRÜCK: An increasing share of the poorest people in the world live under the shadow of violent conflict, weak institutions or humanitarian emergencies, in particular in Africa. Their behavior and welfare and the means to support these people effectively is not very well understood academically, in part as a result of the poor availability of data in this field. Recent advances in this field have focused on understanding the impact of conflict on human capital, analyzing how employment and entrepreneurship can contribute to peacebuilding, learning about the interactions between conflict and migration, and the development of tools of conduct rigorous impact evaluations in conflict and fragile Areas. The contribution in this panel will will focus on the lessons this research can provide for policymaking in Africa.

HESHMATI: The African economy is growing fast. The change is a result of the continents development, relocation of production, industrial development and service sectors expansion. The continent is facing a number interrelated challenges. This include the pressing issues related to labor market, human resources, environment, and population in an African context. The recent World Bank advances in household, firm, industry and national level data collections have enabled a new interest in development economics research. The focus of this cluster is on: the mobility of labor within and across countries; the labor market reforms, work conditions and rights of workers; the job market training programs and their evaluations; school-to-work transition and youth unemployment; trends in income, assets and education inequality and multidimensional poverty; discrimination and women’s participation in the labor market; urban-rural migration and infrastructure investments; entrepreneurship; environment, sustainable development and labor market policy; health, happiness, social policy and well-being; and labor market implications of growing population and ageing. This GLO Cluster includes studies using policies and their evaluations with regard to the emerging and the developing economies in Africa.

!! At the 25th EBES/GLO Conference – Berlin, Germany, May 23, 2018!!

GLO Research Paper Session  on: “Wellbeing”

Almas Heshmati (Jönköping International Business School, Sweden, and Sogang University, South Korea) with Masoomeh Rashidghalam and Pia Nilsson: Measurement and Analysis of Multidimensional Well-being in Rwanda

Olena Nizalova (University of Kent, UK) with Olga Nikolaieva, Jonas Voßemer, Michael Gebel and Katerina Gousia: Youths’ experiences of labor market shocks and late life well-being and health

Milena Nikolova (University of Groningen) with Boris Nikolaev: Family Matters: Involuntary Parental Unemployment During Childhood and Subjective Well-being Later in Life

Corrado Giulietti (University of Southampton): Migration and Wellbeing in the UK

Klaus F. Zimmermann (UNU-MERIT) with John Haisken-DeNew: The New Australian Work Life After the Refugee Camp

Francesco Pastore (University of Napoli): Working But Watching Every Penny? Working Poverty and School Dropout in Mongolia

SESSION CHAIR: Milena Nikolova (University of Groningen) and Matloob Piracha (University of Kent)

Abstracts

HESHMATI: The well-being of families and their children is given high priority in development goals. Children’s well-being in Africa is important since the growing number of children is the greatest resource of this continent. Rwanda was one of the first countries that ratified the Convention on the Rights of the Child. The country, despite its very low GDP per capita, also has one of the best child well-being indicators in Africa. In the recent past the country has also had two important achievements: protection of children by establishing the National Commission for Children and launching a Strategy for National Child Care Reform. The measures aim to protect children’s rights and integrate children into families that are supported to provide needed care to them. These achievements are largely the result of strong laws and policies many of which have been developed with support from UNICEF. Investments in children’s well-being will help in addressing many persistent difficulties that society may have to face in the future. What happens during the early years is of crucial importance for every child’s development. This period offers great opportunities, but children are also vulnerable to negative influences. The objective of this research is to estimate multidimensional well-being of children and their families in Rwanda. The aim is to compute an overall well-being index decomposed into its underlying main components. The households are ranked by the level of well-being and by various household and community characteristics. The results shed light on the state and changes in the well-being of children and their families in Rwanda indicating which provinces and districts offer relatively better conditions for them. This can serve as a model for public policies aimed at improving general well-being in the country.

NIZALOVA: Since the start of the Great Recession many European countries have been witnessing unprecedented growth in unemployment rate, with youth being hit the hardest. This trend has raised concerns about the long-term consequences of unemployment and labour market insecurity while young on various outcomes. This paper exploits a unique opportunity provided by the retrospective module of the Survey of Health, Aging and Retirement in Europe to investigate the impact of unemployment experienced at young age on wellbeing and health at age 50 and beyond. Employing random coefficients modelling we find that labor market shocks from layoffs and plant closures have negative long-lasting consequences in terms of people’s health and wellbeing. Moreover, in case of the wellbeing, there is not only a downward shift of the entire wellbeing-age trajectory, but also an alteration in its shape. We do not find evidence in support of the hypothesis that individual response to labor market shocks differs by country.

NIKOLOVA with NIKOLAEV: This paper is the first to study how unexpected and involuntary parental unemployment experienced during childhood affects adult life satisfaction in Germany. Using household panel data linking parents and children and information on exogenous parental job loss due to company closures, we find that children whose parents were jobless have lower life satisfaction at ages 18-31 if the unemployment occurred when the child was 11-15 years old and if the father—rather than the mother—became unemployed at those ages. The life satisfaction penalty from parental unemployment experienced at ages 11-15 is also more pronounced among males, non-first born children, and those living in West Germany. Maternal unemployment during childhood is particularly harmful for young adults’ well-being if it occurred when the child was 0-5 years old and is entirely driven by those living in East Germany. Nevertheless, parental unemployment during childhood can also be positive for young adults’ life satisfaction, depending on the age at which it occurred and the child’s gender. Our results are independent of the local unemployment conditions and individual and family characteristics when growing up and are robust to controlling for parental job loss expectations. Adopting a life course perspective of family unemployment demonstrates that the intergenerational psychological costs of unemployment are more nuanced than previously thought. Such information can be important to policymakers when designing the timing of unemployment relief programs.

GIULIETTI: In this paper, we study the effects of immigration on the well-being of the UK native population. We use data from the British Household Panel Survey and the UK Household Longitudinal Study to empirically assess the impact of immigration on life satisfaction. Subsequently, we explore whether the impact of immigration varies depending on the geographical level considered, the characteristics of natives and on the type of immigrants. In the final part of the analysis, we assess the various dimensions of life satisfaction and explore the potential channels at work.

ZIMMERMANN with HAISKEN-DENEW: The world has recently seen a strong rise in refugee migration causing stricter reception policies in traditional immigration countries such as Australia in 2013. In the public debate, refugee and detention camps have played a very controversial role, in particular in the Australian case. The paper uses unique Australian panel data for 2013 – 2016 of (recognized) refugees to examine the effects such camps have on the employment success and wellbeing of the forced migrants. The data exhibits a slow labor market integration process only. The experience of camps has positive employment effects and there are no measurable mental health consequences.

PASTORE: This essay aims to study the determinants of working poverty at an individual level in Mongolia, one of the 50 poorest countries of the world. Working poverty means working for a salary that is below the poverty line. Our focus is on school dropout and family background, which is allowed by the type of data used, a school-to-work transition survey carried out by the ILO over a sample of young people aged 15 through 29 years.

!! At the 25th EBES/GLO Conference – Berlin, Germany, May 23, 2018 !!

GLO Thematic Research Cluster Session

Marco Leonardi (University of Milan): Labor Reform Policies and Italy After the Elections

Martin Kahanec (Central European University): Labor Mobility in the EU

Nick Drydakis (Anglia Ruskin University, Cambridge, UK): Gender, Gender Identity, Sexual Orientation and Labor Market Outcomes

Corrado Giulietti (University of Southampton): The Chinese Labor Market

Francesco Pastore (University of Napoli): School-to-Work Transition

Marco Vivarelli (Catholic University of Milan): Technological Change and the Labor Market: Employment, Skills, and Wages

Almas Heshmati (Jönköping International Business School, Sweden, and Sogang University, South Korea): Green Employment Creation

Tilman Brück (International Security and Development Center, Berlin, Germany and London School of Economics, UK):  Labor in Conflict, Fragile and Emergency Areas

SESSION CHAIR: Corrado Giulietti (University of Southampton) and Matloob Piracha (University of Kent)

Abstracts

LEONARDI: The GLO Cluster Labor Reform Policies focuses on reviewing and comparing the impacts of labor market reforms across countries. Many countries have had different labor market reforms across time. Germany in the year 2000s and much later Spain, France and Italy. Labor market reforms cover different dimensions: employment protection legislation, unemployment benefits, short time work, active labor market policies and wage bargaining. Each reform has a specific impact that can be evaluated using econometric methods in partial equilibrium. However, when countries try to learn from each other the best practice of reforms, the attention shifts to the political economy of reforms: the overall impact on the economy and the judgment on the political feasibility of reforms. More broadly, this GLO Cluster includes both studies using policy evaluation methods and studies which tackle the political economy of reforms in EU countries with the purpose of providing academic and policy makers with a large spectrum of reviews of the existing literature and of comparisons across countries. The presentation at the conference will have a special focus on the situation of labor market reforms after the Italian election.

KAHANEC: The consecutive enlargements of the EU, most recently including 11 countries from Central Eastern Europe and Cyprus and Malta (2004, 2007, 2013), have extended the freedom of movement to workers from 28 EU member states and a population of more than half a billion. In spite of the documented overwhelmingly positive effects of EU mobility, the perceptions of and attitudes to EU mobility have become increasingly polarized, which may have contributed to UK’s decision to leave the EU. The GLO Cluster EU Mobility focuses on causes and impacts of EU mobility on receiving as well as sending labor markets, and migrants themselves. Some of the key focus topics include EU mobility’s impacts on employment and wages, productivity and innovation, public budgets, labor supply and employment prospects of those left behind, remittances and brain drain, and perceptions of and attitudes to EU mobility. This Cluster has the ambition to generate rigorously scrutinized evidence on these topics and by doing so enable key stakeholders and policy makers to make informed decisions about EU mobility frameworks to the benefit of EU citizens.

DRYDAKIS: The GLO Cluster Gender, Gender Identity, Sexual Orientation and Labor Market Outcomes focuses on the state of being man or woman (gender), which is typically used with reference to masculinity vs femininity rather than sex, the internal and personal conception of oneself as man or woman (gender identity), and sexual preferences (sexual orientation) and their effects on wages, employment levels, occupational sorting, and workplace evaluations.

What is seen as gender-appropriate can change over time, and gender assumptions are interpolated by cultural, historical and regional location. The combined effects of sex equality, feminism and the gay movement have challenged the conception of gender related issues. This GLO Cluster includes studies on gender characteristics, stereotypes and deviations, trans identities, sexual orientation minorities and labor market outcomes. This GLO Cluster aims to provide evaluations of labor and organizational initiatives, practices and policies aiming at a higher degree of knowledge and inclusion for gender, gender identity and sexual orientation expressions.

Despite the enactment, in English speaking countries and the EU, of labor legislation against discrimination in the labor market based on sexual orientation and gender identity, LGBTI people continue to experience occupational access constraints, lower job satisfaction, wage discrimination, and more bullying and harassment than their heterosexual counterparts. In general, the dearth of studies makes it difficult to examine how education, occupation, industrial relations, region, core socio-economic characteristics, personality and mental health traits moderate the relationship between sexual orientation and labor market outcomes. In addition, quantitative research on employment outcomes is scarce for trans people. The interaction between trans identity, and sexual orientation, and the effects of this on employment outcomes is under-examined. Whether explicit, legislative employment protection against discrimination on the ground of a trans identity has an effect on employment outcomes has also received little attention.

GLO cluster on Gender, Gender Identity, Sexual Orientation and Labor Market Outcomes handles empirical studies on labor economics which have a clear and highlighted added value, and solid policy implications, on the following areas:

◾Testing, in under-examined geographical regions, for wage discrimination based on sexual orientation.

◾Empirically testing and disentangling the forms of employment discrimination (i.e. prejudice-based, and/or statistical discrimination) against LGBTI people.

◾Examining the relationship between sexual orientation, personality characteristics, mental health and employment outcomes.

◾Assessing how moderators (i.e. human capital, educational choices, occupations, family structure, industrial relations etc.) affect the relationship between sexual orientation and labor market outcomes.

◾Testing the relationship between sexual orientation, past/present victimization and labor market outcomes.

◾Quantifying the relationship between sexual orientation and job satisfaction.

◾Evaluating the impact of the legal recognition of same-sex couples on labor market outcomes.

◾Evaluating the impact of employment legislation against sexual orientation and trans identity discrimination on labor market outcomes.

◾Quantifying employment bias against trans people.

◾Examining the interaction between transidentities, sexual orientation and labor market outcomes.

 GIULIETTI: The GLO Cluster on the Chinese Labor Market aims at developing a research agenda around major challenges that China is currently facing, such as: rural-urban migration, structural changes in the labor force, rising income inequality, segmentation and labor market discrimination, labor market policy. At a broader level, this cluster aims at generating evidence-based policy advice for Chinese policymakers and for stakeholders interested in the Chinese labor market.

PASTORE: The GLO Cluster School-to-Work Transition will address economic and policy issues related to the school-to-work transition (SWT). A SWT regime denotes the set of institutions and rules that govern and supervise the passage of young people from school to adulthood. They include the degree of regulation and flexibility of the labour market, but also of the educational and training systems and the provision of employment services (placement and training) to help young people finding a job more easily. The household is also part of the regime, by providing, for instance, financial support during the entire transition and a cushion against the risk of unemployment. The role assigned to each institution within a regime is different from one country to another, so that different SWT regimes can be identified in the world.

VIVARELLI: The link between innovation and employment is both a classical and controversial issue, recently revived by the rapid diffusion of AI and robots in manufacturing and service sectors. This issue will be investigated theoretically and empirically, using both aggregate and microeconometric analyses. However, technological and structural change not only imply an impact on the employment levels, but also involve deep transformations in the skill and wage structure. These effects – which may also directly affect income distribution – will be studied at the national, sectoral, firm and individual level. These topics are treated with regard to the industrialized, the emerging and the developing economies.

HESHMATI: Green and circular economies are increasingly used in transition to sustainable development through increased use of renewable energy, pollution reduction measures, waste management and reuse and recycling of material. Investment in these areas are expected to influence both directly and indirectly the labor market. The literature on the ties between investment in sustainable development and employment creating development planning and policy that make sustainability a practical reality is receiving more attention. This GLO cluster covers research on the relationship between the green economy and green jobs and related areas. These include but not limited to green entrepreneurship, green taxes and regulations, green investment, green innovations, and matching education system and sustainability structures, how they are related and what their main determinants are.

BRÜCK: The Cluster focuses on the economics of labor supply and demand and the functioning of labor markets in areas of extreme uncertainty and weak institutions. An increasing share of the poorest people in the world live under the shadow of violent conflict, weak institutions or humanitarian emergencies. Their behavior and welfare and the means to support these people effectively is not very well understood academically, in part as a result of the poor availability of data in this field. Recent advances in this field have focused on understanding the impact of conflict on human capital, analyzing how employment and entrepreneurship can contribute to peacebuilding, learning about the interactions between conflict and migration, and the development of tools of conduct rigorous impact evaluations in conflict and fragile Areas. The GLO Cluster will support efforts to improve data collection and analysis in areas affected by conflict, suffering from weak governance or from humanitarian emergencies, bringing together academic researchers and practitioners from national governments, international organizations and NGOs.

 

GLO President Klaus F. Zimmermann

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Global Insights – MyView: No abuse of child benefits!

Trouble is currently generating once again the payment of German child allowance abroad. 343 million euros were spent on foreign children living abroad in 2017, significantly less than in the previous year (414 million euros). It is true that payments have increased almost tenfold compared to 2010. While there were nearly 62,000 children supported in 2010, by the end of 2017 there were already about 216,000 living abroad, including 103,000 in Poland and 17,000 each in Croatia and Romania. The level and rise of these figures are closely linked to the strong expansion of employment in Germany during this period: European workers are granted freedom of movement, pay taxes and are entitled to child benefits under European law, even for children living in their home country. This is not only legal, but secures German prosperity, is politically desired and economically appropriate. The integration of labor markets is a declared goal of European policy, as it improves economic conditions and also secures jobs for German workers. Child benefit payments help to secure the necessary labor mobility in Europe. If foreign workers only come to Germany temporarily, their children often stay in their home country, as they can be there better integrated into society, kindergarten and school. If they came to Germany, they would not only have to be integrated here, but temporary immigration could quickly become permanent. (KFZ)

Klaus F. Zimmermann, Professor of Economics and President of the Global Labor Organization (GLO), expresses his own opinion here. He was interviewed on this issue on March 21/22, 2018 in the “RTL Nachtmagazin“, a prominent German TV Newsmagazin.

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