Klaus F. Zimmermann

A new GLO Discussion Paper details what happened to the wage distribution in Italy during the first wave of the COVID-19 pandemic.

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. 829, 2021

Who lost the most? Distributive effects of COVID-19 pandemic – Download PDF
by Ainaa, Carmen & Brunetti, Irene & Mussida, Chiara & Scicchitano, Sergio

GLO Fellows Chiara Mussida & Sergio Scicchitano

Author Abstract: This paper investigates what happened to the wage distribution in Italy during the first wave of the COVID-19 pandemic. It shows which categories of workers and economic sectors have suffered more than others and to what extent both the actual level of smart-working and the ability to Working From-Home can influence the wage distribution. We use a unique dataset relying on the merging of two sample surveys: the Italian Labor Force Survey set up by National Institute of Statistics and the Italian Survey of Professions conducted by the National Institute for Public Policy Analysis. We estimate quantile regression models accounting for selection. First, the findings reveal that the pandemic has affected the wages of the whole workers, but the effect is higher at the bottom of the wage distribution. Second, the actual working from home mitigates the negative distributional consequences of the COVID-19 observed for those at the bottom of the wage distribution. However, the advantage of workers at the bottom tail of the wage distribution seems to lessen in the long term once the health emergency is passed. Third, looking at sectoral heterogeneity, retail and the restaurant are the most hit sectors in terms of wage loss. Fourth, separating by gender, men have been mostly hit by the pandemic, particularly at lowest deciles, though they benefited more from working at home at higher deciles. Finally, women appear as the one that in the long run would benefit more from increasing working from home possibility.

More from the GLO Coronavirus Cluster

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 previous crises have typically lead not only to more unemployment but also to larger numbers of discouraged unemployed and thus more inactivity.

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. 828, 2021

What shifts did covid-19 year 2020 bring to the labour market in Europe?– Download PDF
by Baert, Stijn

GLO Fellow Stijn Baert

Author Abstract: This article discusses the evolution of key labour market indicators in the EU-27 countries between 2019 and 2020, i.e. between the year before the covid-19 crisis broke out and the year in which it impacted the economy heavily. Whereas earlier policy-oriented studies have dealt with the evolution of unemployment in 2020, often country by country, this article focuses on the evolution of unemployment as well as inactivity across European countries. Indeed, previous crises have typically lead not only to more unemployment but also to larger numbers of discouraged unemployed and thus more inactivity. It appears that the Southern European countries, in particular, recorded increases in inactivity, while the Baltic States experienced higher unemployment. In many other countries, unemployment and inactivity remained remarkably stable despite covid-19.

More from the GLO Coronavirus Cluster

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 theoretical framework to show that offshoring to a different time zone is beneficial even when the complexity of stages of production varies.

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. 827, 2021

Variation in labour skills and offshoring across time zones – Download PDF
by Prasad, Alaka Shree & Mandal, Biswajit

GLO Fellow Biswajit Mandal

Author Abstract: The paper extends Dei (2010) to check the role of time zone difference on offshoring of service tasks when the quality of workers varies between the partner countries. We frame a model where partner countries are located in non-overlapping time zones, and the skill level of the partner country workers is lower than that of the domestic workers. In our model, service production is divided into two sequential stages, and output is a supermodular function of the skill of workers and time. The problem of the service producers is to choose between domestic production and offshoring. Domestic production employs high-quality skilled labours but the time management is inefficient. On the other hand, offshoring to a non-overlapping time zone helps a firm to work round the clock, but the low quality of skilled labour lowers the output, though they cost less. In such a framework, we check under what conditions offshoring is beneficial. The analysis provides a condition where firms decide to offshore through a tradeoff between time and skill. We observe that the lesser of 24 hours domestic production use, the lower will be the threshold of acceptable skill level. Results show that offshoring to a different time zone is beneficial even when the complexity of stages of production vary. However, it is observed that only the relatively less-critical task is offshored. We further observe that availability of domestic lowquality labour does not benefit the firm, but foreign low-quality labour can be beneficially utilized through time-zone exploitation.

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 explains part of this success story not by differences in students’ and schools’ observed characteristics, but instead by Vietnam’s greater “productivity” of those characteristics in comparison to other countries.

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. 826, 2021

What Explains Vietnam’s Exceptional Performance in Education Relative to Other Countries? Analysis of the 2012 and 2015 PISA Data – Download PDF
by Dang, Hai-Anh & Glewwe, Paul & Vu, Khoa & Lee, Jongwook

GLO Fellow Hai-Anh Dang

Author Abstract: Despite being the poorest or second poorest participant, Vietnam performed much better than all other developing countries, and even ahead of wealthier countries such as the U.S. and the U.K., on the 2012 and 2015 PISA assessments. We provide a rigorous investigation of Vietnam’s strong performance. After making various parametric and non-parametric corrections for potentially non-representative PISA samples, including bias due to Vietnam’s large out-of-school population, Vietnam still remains a large positive outlier conditional on its income. Possible higher motivation of, and coaching given to, Vietnamese students only partly explains Vietnam’s performance, and this is also the case for various observed household- and school-level variables. Finally, Blinder-Oaxaca decompositions indicate that the gap in average test scores between Vietnam and the other participating countries is due not to differences in students’ and schools’ observed characteristics, but instead to Vietnam’s greater “productivity” of those characteristics.

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 paper published ONLINE FIRST with free OPEN ACCESS finds for Denmark that women with a second-born brother acquire more traditional gender roles as measured through their choice of occupation and partner.

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.

Brothers increase women’s gender conformity

by Anne Ardila Brenøe

Published OPEN ACCESS ONLINE FIRST in the Journal of Population Economics.

Author Abstract: I examine how one central aspect of the family environment—sibling sex composition—affects women’s gender conformity. Using Danish administrative data, I causally estimate the effect of having a second-born brother relative to a sister for first-born women. I show that women with a brother acquire more traditional gender roles as measured through their choice of occupation and partner. This results in a stronger response to motherhood in labor market outcomes. As a relevant mechanism, I provide evidence of increased gender-specialized parenting in families with mixed-sex children. Finally, I find persistent effects on the next generation of girls.

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 paper published ONLINE FIRST with free OPEN ACCESS finds for Finland that higher private day care allowances have no effect on employment while higher home care allowances increase the length of home care.

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.

Back to work or stay at home? Family policies and maternal employment in Finland.

by Eva Österbacka & Tapio Räsänen

Published OPEN ACCESS ONLINE FIRST in the Journal of Population Economics.

Author Abstract: The employment effects of family policies depend on the mother’s labor market attachment and on the age of the child. We study the effects of child home care (cash-for-care) and private day care allowances on mothers’ return to employment after childbirth. Our identification strategy exploits changes in municipal-level subsidies. We find that higher private day care allowances have no effect while higher home care allowances increase the length of home care. A 100-euro higher level of home care allowance prolongs home care by 2–3 months, on average. The home care allowance combined with low labor market attachment and low earnings potential pre-birth delay the return to employment. However, the effect of the allowance diminishes over time. Higher subsidies have no impact by the time a child turns two. Reductions in subsidies stimulate a faster return to employment.

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 advocates neo-humanism for a world in which the well-being of people comes before the wellbeing of markets, in which promoting cooperation and social relations represents the starting point for better lives, and a peaceful and respectful coexistence with other species on Earth.

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. 825, 2021

Neo-humanism and COVID-19: Opportunities for a socially and environmentally sustainable world – Download PDF
by Sarracino, Francesco & O’Connor, Kelsey J.

GLO Fellows Francesco Sarracino and Kelsey J. O’Connor

Author Abstract: A series of crises, culminating with COVID-19, shows that going “Beyond GDP” is urgently necessary. Social and environmental degradation are consequences of emphasizing GDP as a measure of progress. This degradation created the conditions for the COVID-19 pandemic and limited the efficacy of counter-measures. Additionally, rich countries did not fare the pandemic much better than poor ones. COVID-19 thrived on inequalities and a lack of cooperation. In this article we leverage on defensive growth models to explain the complex relationships between these factors, and we put forward the idea of neohumanism, a cultural movement grounded on evidence from quality-of-life studies. The movement proposes a new culture leading towards a socially and environmentally sustainable future. Specifically, neo-humanism suggests that prioritizing well-being by, for instance, promoting social relations, would benefit the environment, enable collective action to address public issues, which in turn positively affects productivity and health, among other behavioral outcomes, and thereby instills a virtuous cycle. Arguably, such a society would have been better endowed to cope with COVID-19, and possibly even prevented the pandemic. Neo-humanism proposes a world in which the well-being of people comes before the wellbeing of markets, in which promoting cooperation and social relations represents the starting point for better lives, and a peaceful and respectful coexistence with other species on Earth.

More from the GLO Coronavirus Cluster

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 expects a decline in fertility in Pakistan caused by the disease.

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. 824, 2021

Perturbed Nuptiality, Delayed Fertility: Childbirth Effects of Covid19 – Download PDF
by Mughal, Mazhar & Javed, Rashid

GLO Fellow Rashid Javed

Author Abstract: An aspect of the Covid-19 pandemic that merits attention is its effects on marriage and childbirth. Although the direct fertility effects of people getting the virus may be minor, the impact of delayed marriages due to the first preventive lockdown, such as that imposed in Pakistan from March 14 to May 8 2020, and the closure of marriage halls that lasted till September 14 may be non-negligible. These demographic consequences are of particular import to developing countries such as Pakistan where birth rates remain high, marriage is nearly universal, and almost all child- bearing takes place within marriage. Based on historic marriage patterns, we estimate that the delay in nuptiality during the first phase of coronavirus outbreak may affect about half of the marriages that were to take place during the year. In Pakistan, childbearing begins soon after marriage, and about 37% of Pakistani married women give birth to their first child within twelve months of marriage. A sizeable number out of these around 400,000 annual births that occur within twelve months of the marriage may consequently be delayed. Postponement of marriages due to the accompanying difficult economic situation and employment precariousness should accentuate this fertility effect. The net fertility impact of the Covid-19 outbreak would ultimately depend not only on the delay in marriages but also on the reproductive behavior of existing couples.

More from the GLO Coronavirus Cluster

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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