A new GLO Discussion Paper analyzes the economic impact of Covid-19 by focusing on the implications for migrant remittances in Tunisia and Morocco.
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 spread of the novel coronavirus and ‘stay at home’ measures in response to this global health crisis is profoundly changing societies and economies around the world. The objective of this work is to analyze the economic impact of Covid-19 by focusing on their implications on migrant remittances flows in Tunisia and Morocco. Indeed, we analyze in which countries, where individuals depend on remittances and where this dependence intersects with economic vulnerability and inadequate financial infrastructure. We use micro-data from the Afrobarometer survey, wave 2016-2018. Based on Principal Component Analysis (PCA), the results show that the decline in remittances will exacerbate economic difficulties during the crisis for individuals who depend on remittances. In Tunisia, 60% of individuals who say they are dependent on remittances are unemployed and 46% of those who say they are dependent on remittances face a lack of liquidity. In Morocco, 63% and 43%, respectively the share of individuals who say they are dependent on remittances are unemployed and the share with liquidity problems. Also, “stay at home” measures are likely to limit the ability of individuals to receive funds from abroad. Both countries have similar access to infrastructure, more than 46% of people who depend on remittances do not have a bank account and 37% do not have access to the internet. They would therefore be less able to adapt to a restriction on in-person remittance services during a lockdown to contain the Covid-19 virus. For this reason, the paradigm shift from cash to digital money is necessary.
Posted inNews, Research|Comments Off on The Economic and Social Impact of the Novel Coronavirus (Covid-19) on Migrant Remittances: An Overview of Tunisia and Morocco
A new GLO Discussion Paper finds that exposure to violent conflict significantly reduces the total number of hours worked in Nigerian farm households.
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: Nigeria has experienced bouts of violent conflict in different regions over the last few decades leading to significant loss of life. In this paper, we explore the potential short and accumulated long term effects of such conflict on labor supply of agricultural households. Using a nationally representative panel dataset for Nigeria in combination with armed conflict data, we estimate the effect of violent conflict on a farm household members labor supply. Our findings suggest that exposure to violent conflict significantly reduces the total number of hours the farm household head works and also deceases total family labor supply for agricultural households.
The GLO Virtual Young Scholars Program (GLO VirtYS) 2020/2021 has started its activity.
In the spirit of the GLO Mission, the GLO VirtYS program’s goal is to contribute to the development of the future generation of researchers, who are committed to the creation of policy-relevant research, are well equipped to work in collaboration with policy makers and other stakeholders, and adhere to the highest standards of academic integrity. This goal is achieved through the process of working on a specific research paper within the duration of the program, which is 9 months, and interact with the GLO VirtYS cohort and advisors.
Under the leadership of GLO VirtYS Program Director Olena Nizalova, the participants have virtually met with GLO officials and advisors on November 12 for a warm welcome and first interactions. GLO PresidentKlaus F. Zimmermann and GLO Director Matloob Piracha made introductory remarks. GLO VirtYS Program Assistant Yannis Galanakis reported from his experience as a member of the GLO VirtYS 2010/2020 cohort.
The following program participants have been appointed GLO Affiliate:
TheGLO Virtual Seminar is a monthly internal GLO research event chaired by GLO Director Matloob Piracha and hosted by the GLO partner institution University of Kent. The results are available on the GLO website and the GLO News section, where also the video of the presentation is posted. All GLO related videos are also available in the GLO YouTube channel. (To subscribe go there.)
The last seminar was given on November 5, 2020 by Ira Gang on Schooling Forsaken or Not? Education and Migration. Below find a report and the video of the seminar.
Announcement/forthcoming seminar: December 3, 2020:London/UKat 1-2 pm John P. de New, Melbourne Institute of Applied Economic and Social Research, University of Melbourne, and GLO
Report
Schooling Forsaken or Not? Education and Migration.
GLO Virtual Seminar on November 5, 2020 Ira Gang, Rutgers University and GLO Video of the seminar.
Based on joint work with Gil Epstein and Ilhom Abdulloev:
Posted inEvents, News|Comments Off on GLO Fellow Ira Gang (Rutgers University) spoke about ‘Schooling Forsaken or Not? Education and Migration’. Video from the GLO Virtual Seminar Series.
A new GLO Discussion Paper studies the origins and consequences of the Russian mafia.
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 studies the origins and consequences of the Russian mafia (vory-v-zakone). Using a unique web scraped dataset containing detailed biographies of more than 5,000 mafia leaders, I first show that the Russian mafia originated in the Soviet Gulag archipelago, and could be found near the gulags’ initial locations in mid-1990s Russia, some three decades after the camps were officially closed down. Then, using an instrumental variable approach that exploits the proximity of the Russian mafia to the gulags, I show that Russian communities with mafia presence in the mid-1990s experienced a dramatic rise in crime driven by elite violence which erupted shortly after the collapse of the Soviet Union in 1991. The violence – initially confined to the criminal underworld – eventually spilled over, leading to indiscriminate attacks against local businessmen, managers of state-owned enterprises, judges, and members of the state security apparatus. However, there was no increase in politically-motivated violence, suggesting a widespread collusion between the mafia and local politicians in the early post-Soviet Russia.
Posted inEvents, News|Comments Off on Now on Video: Watch the EBES-GLO Joint Webinar with David Audretsch on Covid-19, Democracy & Entrepreneurship chaired by GLO & EBES President Klaus F. Zimmermann from November 13, 2020.
A new GLO Discussion Paper finds that people who consider migrating abroad will have either lower years of schooling, or generally have not completed professional schools.
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: We consider how the possibility of international migration affects an individual’s educational choices in their home country. Without the opportunity to emigrate abroad people choose their educational investment (and hence their skill level) as we might expect, taking into account the utility they derive from the status their attainment bestows. A result of this paper is that if there are low chances of obtaining professional (requires tertiary schooling) jobs in the host country, individuals may well choose an educational track leading to a less-skilled lower status occupational profession in order to increase their chances of obtaining a job in the host country after migration. Thus, all home country students may choose the non-professional education track. Those who might have otherwise pursued higher, professional education may forgo that schooling. The theory developed here explains the forsaken schooling phenomenon, which shows that low-skilled and skilled home country workers are willing to accept low-skilled positions in host countries. This leads to the forgoing of professional schooling in the home country since it is not optimal for the worker in the home country to choose a high skilled education since, they will be overqualified in the host country. This will have a long run affect. As time goes on, therefore, people who consider migrating abroad will have either lower years of schooling, or generally have not completed professional schools (technical-vocational or tertiary).
Featured image: Photo-by-Mikael-Kristenson-on-Unsplash
A new GLO Discussion Paper finds strong empirical evidence supporting the crucial role of financial access in promoting entrepreneurship among informal sector firms in India.
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: How does informal economic activity respond to increased financial inclusion? Does it become more entrepreneurial? Does access to new financing options change the gender configuration of informal economic activity and, if so, in what ways and what directions? We take advantage of nationwide data collected in 2010/11 and 2015/16 by India’s National Sample Survey Office on unorganized (informal) enterprises. This period was one of rapid expansion of banking availability aimed particularly at the unbanked, under-banked, and women. We find strong empirical evidence supporting the crucial role of financial access in promoting entrepreneurship among informal sector firms in India. Our results are robust to alternative specifications and alternative measures of financial constraints using an approach combining propensity score matching and difference-in-differences. However, we do not find conclusive evidence that increased financial inclusion leads to a higher likelihood of women becoming entrepreneurs than men in the informal sector.
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