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.
A new GLO Discussion Paper identifies and analyses a new effect related to the cyclical behavior of labor supply: the Entitled-Worker Effect (EWE) and provides evidence for the effect in Spain.
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 identifies and analyses a new effect related to the cyclical behavior of labor supply: the Entitled-Worker Effect (EWE). This effect is different from the well-known Added-Worker Effect (AWE) and Discouraged-Worker Effect (DWE). The EWE is a consequence of one of the most important labor institutions: the unemployment benefit (UB). We develop a model with uncertainty about the results of the job seeking and transactions costs linked to such a search process in which a kind of moral hazard appears. This creates new incentives for workers and produces an additional counter-cyclical pressure on aggregate labor supply, but with a different foundation from that of the AWE. Finally, we show some empirical evidence supporting the EWE for the Spanish case.
A new GLO Discussion Paper documents that education can generate important externalities that contribute towards economic growth and convergence.
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: Education can generate important externalities that contribute towards economic growth and convergence. In this paper, we study the drivers of such externalities by conducting the first meta-analysis of the social returns to education literature. We analyse over 1,000 estimates from 31 articles published since 1993 that cover 15 countries. Our results indicate that: 1) spillovers slow down with economic development; 2) tertiary schooling and schooling dispersion increase spillovers; 3) spillovers are smaller under fixed-effects and IV estimators but larger when measured at the firm level; and 4) there is publication bias (but not citation bias).
Featured image: Photo-by-Mikael-Kristenson-on-Unsplash
A new GLO Discussion Paper reviews the long-term evidence about the relationship between unions and job satisfaction.
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 chapter focuses on the lessons learned from four decades of studying the relationship between unions and job satisfaction. We discuss the original paradox that started the literature and trace the on-going debate over results that differ by sample and by estimation technique. We emphasize the cross-national evidence suggesting that the paradox of dissatisfied union members may be largely associated with Anglophone countries. Within Anglophone countries we explore exactly what is typically being measured and how unionization may influence both job characteristics and perceptions of given job characteristics. We explore differences in the influence of union membership on job satisfaction and on broader life satisfaction. We also review the literature on alternative forms of employee representation. We conclude by summarizing and suggesting avenues for future research.
Featured image: Photo-by-Jose-Antonio-Gallego-Vázquez-on-Unsplash
A new GLO Discussion Paperfinds that employment discrimination increased after the 2016 presidential election in the United States.
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 examine whether employment discrimination increased after the 2016 presidential election in the United States. We submitted fictitious applications to publicly advertised positions using resumes that are manipulated on perceived race and ethnicity (Somali American, African American, and white American). Prior to the 2016 election, employers contacted Somali American applicants slightly less than white applicants but more than African American applicants. After the election, the difference between white and Somali American applicants increased by 8 percentage points. The increased discrimination predominantly occurred in occupations involving interaction with customers. We continued data collection from July 2017 to March 2018 to test for seasonality in discrimination; there was no substantial increase in discrimination after the 2017 election.
A new GLO Discussion Paperdevelops a dynamic version of the competitive search model with adverse selection. Numerical results show that firm learning does not increase labor market efficiency.
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: I develop a dynamic version of the competitive search model with adverse selection in Guerrieri, Shimer and Wright (2010). My model allows for an analysis of the effects of firm learning on labor market efficiency in the presence of search frictions. I find that firm learning increases relative expected earnings in high-ability jobs and, thereby, enhances imitation incentives of low-ability workers. The net effect on the aggregate expected match surplus and unemployment is indeterminate a priori. Numerical results show that firm learning does not increase labor market efficiency.
Featured image: Photo-by-Alex-Kotliarskyi-on-Unsplash
A new GLO Discussion Paperfinds on experimental basis with students from middle- and high-school classes in the city of Rome that obtaining information about migrants shape open attitudes more effectively than meeting one, but neither treatment affects feelings associated to immigrants.
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 analyze whether (correct) information provision on immigration is more effective than contact in shaping attitudes towards immigration. We collect data from a randomized experiment in 18 middle- and high-school classes in the city of Rome. Half of the classes meet a refugee from Mauritania, whereas the rest of them attend a lecture on figures and numbers on immigration in Italy and the world. On average, students develop better attitudes towards immigration (especially in the case of policy preferences and the perceived number of immigrants in their country) after the information treatment more than they do after the contact treatment, whereas neither treatment affects feelings associated to immigrants. Also, students having received the information treatment strongly adjust their knowledge on immigration. However, students’ individual characteristics and school type (i.e. middle vs. high school) affect treatments’ effectiveness.
A new GLO Discussion Paperfinds that removing the criminal ties makes it challenging for the firm to maintain profitability and efficiency.
The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.
Author Abstract: In this paper, I assess the causal effects of judicial administration on a sample of Italian criminal firms in the period 2004-2016, to shed light on the dynamic path of the firm’s performance from pre-seizure to the post-entry judicial administration phase. By using exogenous enforcement law decisions imposed by authorities for each case, I estimate their impact, highlighting the economic consequences of having new legal governance aiming to establish legality and the perpetuation of activities. The results show that there are adverse effects on profitability and efficiency with an increase in the leverage level. The empirical evidence shows how organised crime firms are intrinsically managed by their dark criminal side; removing the criminal ties makes it challenging to maintain profitability and efficiency. Overall, the negative results are due to difficulty in establishing a new economic framework for (ex-criminal) firms in which they are able to operate efficiently and according to market rules.
Posted inNews, Research|Comments Off on What Happens in Criminal Firms after Godfather Management Removal? Judicial Administration and Firms Performance.
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