Klaus F. Zimmermann

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.

GLO Discussion Paper No. 711, 2020

Gulags, Crime, and Elite Violence: Origins and Consequences of the Russian Mafia – Download PDF

GLO Fellow Jakub Lonsky

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.

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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 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.

GLO Discussion Paper No. 709, 2020

Job Status, International Migration and Educational Choice – Download PDF
by Abdulloev, Ilhom & Epstein, Gil S. & Gang, Ira N.

GLO Fellows Ilhom Abdulloev, Gil Epstein & Ira Gang

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

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 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.

GLO Discussion Paper No. 708, 2020
Finance, gender, and entrepreneurship: India’s informal sector firms – Download PDF
by Gang, Ira N. & Natarajan, Rajesh Raj & Sen, Kunal

GLO Fellow Ira Gang

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.

Featured image: Photo-by-Trevor-Cole-on-Unsplash

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 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.

GLO Discussion Paper No. 707, 2020

Beyond the added-worker and the discouraged-worker effects: the entitled-worker effect – Download PDF
by Martín-Román, Ángel L.

GLO Fellow Ángel L. Martín-Román

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.

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 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.

GLO Discussion Paper No. 706, 2020

What drives social returns to education? A meta-analysis – Download PDF
by Cui, Ying & Martins, Pedro S.

GLO Fellow Pedro Martins

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

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 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.

GLO Discussion Paper No. 705, 2020

Unions, Worker Participation and Worker Well-Being – Download PDF
by Artz, Benjamin & Heywood, John S.

GLO Fellow John S. Heywood

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.

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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 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.

GLO Discussion Paper No. 701, 2020

The Effect of the 2016 United States Presidential Election on Employment Discrimination – Download PDF
by Gorzig, Marina Mileo & Rho, Deborah

GLO Fellows Marina Mileo Gorzig & Deborah Rho

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.

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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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