Klaus F. Zimmermann

A new GLO Discussion Paper finds that a more differentiated picture of industrial relations can be obtained by considering both membership in employers’ associations and collective bargaining coverage.

GLO Discussion Paper No. 954, 2021

Membership in Employers’ Associations and Collective Bargaining Coverage in Germany – Download PDF

by Jirjahn, Uwe

GLO Fellow Uwe Jirjahn

Author Abstract: While there is a strong overlap between membership in employers’ associations and collective bargaining coverage, the overlap is far from being perfect. Using unique firm-level data from Germany, this study estimates the determinants of the membership in employers’ associations and the coverage by industry-level or firm-level agreements. The analysis particularly focuses on the various constellations of membership and collective bargaining status. The results show that firm-level worker representation, foreign ownership, work organization, firm size, age and East-West differences are important determinants. Altogether, the analysis demonstrates that a more differentiated picture of industrial relations can be obtained by considering both membership in employers’ associations and collective bargaining coverage.

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 models the process of field specialization choice among beginning economists.

GLO Discussion Paper No. 953, 2021

Gender Differences in Economics PhD Field Specializations with Correlated Choices – Download PDF
by Sierminska, Eva & Oaxaca, Ronald L.

GLO Fellows Eva Sierminska & Ronald L. Oaxaca

Author Abstract: We model the process of field specialization choice among beginning economists within a multivariate logit framework that accommodates single and dual primary field specializations and incorporates correlations among field specialization choices. Conditioning on personal, economic, and institutional variables reveals that women graduate students are less likely to specialize in Labor/Health, Macro/Finance, Industrial Organization, Public Economics, and Development/Growth/International and are more likely to specialize in Agricultural/Resource/Environmental Economics. Field-specific gender faculty ratios and expected relative salaries as well as economics department rankings are significant factors for gender doctoral specialization dissimilarity. Preferences and characteristics contribute about equally to field specialization dissimilarity.

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 COVID-19 lockdown measures reduced children’s probability of attending school and exacerbated harmful traditional practices such as child marriage.

GLO Discussion Paper No. 952, 2021

COVID-19 and Children’s School Resilience: Evidence from Nigeria – Download PDF
by Dessy, Sylvain & Gninafon, Horace & Tiberti, Luca & Tiberti, Marco

GLO Fellow Luca Tiberti

Author Abstract: This paper analyzes the impact of COVID-19 lockdown measures on children’s school resilience. Using an individual fixed-effect linear probability model on Nigeria data, it exploits the quasi-randomness of these measures to estimate their effect on school attendance after the lockdown was lifted. The results show that COVID-19 lockdown measures reduced children’s probability of attending school after the school system reopened. This negative impact increased with children’s age, reaching a peak among those whose education was no longer compulsory. For schoolchildren in that age group, the negative effect of COVID-19 lockdown measures is likely to be permanent, which, if not reversed, will undermine the quality of the economy-wide future labor force. The paper also finds evidence that, in the child marriageprone North-West part of Nigeria, these measures increased gender inequality in education among children aged 12 to 18. This result suggests that COVID-19 lockdown measures may exacerbate harmful traditional practices such as child marriage.

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 suggests that mass shooting incidents are associated with a rise in crimes in general, especially those carried out for monetary gains.

GLO Discussion Paper No. 951, 2021

On the Tragedy of Mass Shooting: the Crime Effects – Download PDF
by Gunadi, Christian

GLO Fellow Christian Gunadi

Author Abstract: Recent years have seen a rise in mass shooting incidents in the United States. While direct victims and their families undoubtedly suffer the most serious consequence of mass shootings, little is known on whether mass shootings have negative impacts beyond those immediately exposed to the incidents. In this paper, I examine the crime consequences of mass shootings. I hypothesize that mass shootings can increase crimes through its adverse effects on local labor market conditions. Utilizing difference-in-differences strategy that exploits geographic and temporal variation in mass shooting incidents across U.S. counties, the results of the analysis suggest that mass shooting incident is associated with a rise in crimes, especially those carried out for monetary gains. The most conservative estimate indicates that mass shooting incident increases the overall property crime rate by about 4%.

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 climate shocks may disrupt long-standing gender roles.

GLO Discussion Paper No. 950, 2021

Climate Shocks, Migration, and Labor Markets: A Gender Analysis from West Africa – Download PDF
by Elmallakh, Nelly & Wodon, Quentin

GLO Fellow Nelly El-Mallakh

Author Abstract: This paper investigates the effects of shocks, predominantly climate shocks, on labor market outcomes in the West African Economic and Monetary Union (WAEMU). We focus on migration ows within the WAEMU countries to disentangle the differential effects of shocks on migrants and non-migrants. Our analysis combines survey data from Ivory Coast|as the main migrant receiving country|and from all the other 7 migrant sending countries of the WAEMU. Using an OLS fixed effects model, our results show that migration in the WAEMU is associated with a decline in female labor participation, as it is primarily motivated by marriage. However, we find an increase in female labor force participation and a narrowing of the gender gap in migrant households that are negatively affected by shocks. Our findings relate to the literature on the impact of shocks on the labor division between women and men and show that shocks may disrupt long-standing gender roles. The results are robust to accounting for the double selection into shocks and migration using a Propensity Score Matching technique that allows for a within comparison between treated and untreated units.

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 large consequences for labor market performance of refugees and children wellbeing.

GLO Discussion Paper No. 949, 2021

Do Refugees with Better Mental Health Better Integrate? Evidence from the Building a New Life in Australia Longitudinal Survey – Download PDF
by Dang, Hai-Anh H. & Trinh, Trong-Anh & Verme, Paolo

GLO Fellows Hai-Anh Dang & Paolo Verme

Author Abstract: Hardly any evidence currently exists on the causal effects of mental illness on refugee labor market outcomes. We offer the first study on this topic in the context of Australia, one of the host countries with the largest number of refugees per capita in the world. Analyzing the Building a New Life in Australia longitudinal survey, we exploit the variations in traumatic experiences of refugees interacted with time as an instrument for refugee mental health. We find that worse mental health, as measured by a one standard deviation increase in the Kessler mental health score, reduces the probability of employment by 14.1% and labor income by 26.8%. We also find some evidence of adverse impacts of refugees’ mental illness on their children’s mental health and education performance. These effects appear more pronounced for refugees that newly arrive or are without social networks, but they may be ameliorated with government support. Our findings suggest that policies that target refugees’ mental health may offer a new channel to improve their labor market outcomes.

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 studies approaches to to transform household income to an equivalent for individuals.

GLO Discussion Paper No. 948, 2021

Equivalence scale and income poverty: Two approaches to estimate country-specific scale for the Czech Republic – Download PDF
by Mysíková, Martina & Želinský, Tomáš & Jirková, Michaela & Večerník, Jiří

GLO Fellow Tomas Zelinsky

Author Abstract: The at-risk-of-poverty rate, the relative income poverty indicator applied in the EU, can be highly sensitive to the equivalence scale used to transform household income to an equivalent for individuals. This study applies two well-established approaches to estimate the equivalence scale: an ‘objective’ one, based on consumption expenditures available in the national Household Budget Survey, and a ‘subjective’ one, based on the Minimum Income Question available in EU-Statistics on Income and Living Conditions data. The aim is to contrast the two estimated equivalence scales in the Czech Republic in the 2006-2016 period with the OECD-modified scale applied uniformly for decades across the EU countries. Our findings suggest that the adult weight in the equivalence scale is decreasing over time, while the child weight is relatively stable under both approaches. The estimated weights are lower than the officially applied ones, with the exception of the expenditure-based adult weight, which is very close to the OECD-modified weight. Applying the estimated scales affects the income poverty rate and leads to different rates than the official ones: while the trend of the rates is similar when the two estimated scales are used, the official income poverty rate deviates from those two.

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.

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.

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A new GLO Discussion Paper examines the impact of U.S governor’s party allegiance (Republican vs Democrat) on the ethnic wage gap to show that the vast majority of subgroups of black workers earnings are not affected by democrat governors’ policies.

GLO Discussion Paper No. 947, 2021

The Forest Behind the Tree: Heterogeneity in How US Governor’s Party Affects Black Workers – Download PDF
by Tchuente, Guy & Kakeu, Johnson & Francois, John Nana

GLO Fellow Guy Tchuente

Author Abstract: Income inequality is a distributional phenomenon. This paper examines the impact of U.S governor’s party allegiance (Republican vs Democrat) on ethnic wage gap. A descriptive analysis of the distribution of yearly earnings of Whites and Blacks reveals a divergence in their respective shapes over time suggesting that aggregate analysis may mask important heterogeneous effects. This motivates a granular estimation of the comparative causal effect of governors’ party affiliation on labor market outcomes. We use a regression discontinuity design (RDD) based on marginal electoral victories and samples of quantiles groups by wage and hours worked. Overall, the distributional causal estimations show that the vast majority of subgroups of black workers earnings are not affected by democrat governors’ policies, suggesting the possible existence of structural factors in the labor markets that contribute to create and keep a wage trap and/or hour worked trap for most of the subgroups of black workers. Democrat governors increase the number of hours worked of black workers at the highest quartiles of earnings. A bivariate quantiles groups analysis shows that democrats decrease the total hours worked for black workers who have the largest number of hours worked and earn the least. Black workers earning more and working fewer hours than half of the sample see their number of hours worked increase under a democrat governor.

Related paper in the Journal of Population Economics, ONLINE FIRST 2021, FREE READ LINK: The effect of the 2016 United States presidential election on employment discrimination by Marina Mileo Gorzig & Deborah Rho

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.

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.

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A new GLO Discussion Paper studies sealed-bid public procurement contract (PPC) auctions of construction works, discontinuity in bidders’ win margin and firms’ daily employment variation to provide a causal estimate of winning a PPC on firms’ employment.

GLO Discussion Paper No. 946, 2021

Public procurement and supplier job creation: Insights from auctions – Download PDF
by Srhoj, Stjepan & Dragojević, Melko

GLO Fellow Stjepan Srhoj

Author Abstract: Public procurement contracts (PPCs) of goods, services and works is about one tenth of global gross domestic product. Much research has been conducted on government spending and its aggregate effects, but evidence is scarce at the micro-level. This study exploits sealed-bid PPC auctions of construction works, discontinuity in bidders’ win margin and firms’ daily employment variation to provide a causal estimate of winning a PPC on firms’ employment. Winning a PPC has a small positive impact on a firm’s short-run employment. The study investigates mechanisms and heterogeneity that can explain the initial small magnitudes. No compelling evidence is found in favour of political connections, an information leakage channel or PPC size as explanations for the small magnitude. A investigation of longer period shows the impact phases out in less than a year. The lack of a long-term impact is due to runners-up winning more PPCs and runners-up substituting towards more market revenue in the year after closely losing a PPC. Finally, the impacts are concentrated in construction firms that conduct the majority of contracted work in-house. The final estimation shows the effect is about four new employees per PPC with a public cost per job created at €45,200 [€34,200 – €66,200].

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.

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.

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A new GLO Discussion Paper shows evidence of a large spatial heterogeneity in the electric power consumption between districts and provinces in Vietnam.

GLO Discussion Paper No. 945, 2021

Inequality in Electricity Consumption and Economic Growth: Evidence from a Small Area Estimation Study – Download PDF
by Nguyen, Cuong Viet & Nguyen, Khuong Duc & Tran, Tuyen Quang

GLO Fellow Cuong Nguyen

Author Abstract: Our study uses a small area estimation method to estimate the average and inequality of per capita kWh consumption for small areas in Vietnam. It shows evidence of a large spatial heterogeneity in the electric power consumption between districts and provinces in Vietnam. Households in the mountains and highlands consumed remarkably less electricity than those in the delta and coastal areas. Notably, we find a U-shaped relationship between the inequality of electricity consumption and economic levels in Vietnam. In poor districts and provinces, there is very high inequality in electricity consumption. Inequality is lower in middle-income districts and provinces.

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.

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.

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