Inequality and Support for Government Responses to COVID-19

A new GLO Discussion Paper covering China, Italy, Japan, South Korea, the United Kingdom, and the United States finds that poorer individuals are less supportive of government responses. Greater transfers to the poor may ameliorate their resistance, increase support for strict policies, and may reduce the potential deepening of social inequalities caused by the 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. 694, 2020
Inequality and Support for Government Responses to COVID-19 Download PDF
by
Dang, Hai-Anh H. & Malesky, Edmund & Nguyen, Cuong Viet

GLO Fellow Hai-Anh Dang

Author Abstract: Despite a rich literature studying the impact of inequality on policy outcomes, there has been limited effort to bring these insights into the debates about comparative support for government responses to the COVID-19 pandemic. We fill in this gap by analyzing rich survey data from six countries spanning different income levels and geographical locations-China, Italy, Japan, South Korea, the United Kingdom, and the United States. We find that poorer individuals are less supportive of government responses, and that poorest individuals are least supportive. Furthermore, poorer individuals residing in more economically unequal countries offer even less government support. We also find that both economic and non-economic factors could affect the poor’s decisions to support stringent government policies. These findings suggest that greater transfers to the poor may ameliorate their resistance, increase support for strict policies, and may reduce the potential deepening of social inequalities caused by the pandemic.

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.

Ends;

Posted in News, Research | Comments Off on Inequality and Support for Government Responses to COVID-19

EBES-GLO Joint Webinar with David Audretsch on Covid-19, Democracy & Entrepreneurship.

Mark your calendar!
November 13, 2020: EBES-GLO Joint Online Seminar.
Berlin 3-4 pm & Istanbul 5-6 pm.

David Audretsch (Indiana University):
The Threat Posed by the Covid-19 Pandemic to Democracy & Entrepreneurship. 

Chaired by EBES & GLO President Klaus F. Zimmermann
Organized by EBES Vice-President Mehmet H. Bilgin

EBES & GLO members will in time receive special invitations to link in. 

Ends;

Posted in Events, News | Comments Off on EBES-GLO Joint Webinar with David Audretsch on Covid-19, Democracy & Entrepreneurship.

The Statutory Minimum Wage in Germany and the Labor Demand Elasticities of Low-Skilled Workers: A Regression Discontinuity Approach with Establishment Panel Data

A new GLO Discussion Paper examines the influence of the statutory minimum wage in Germany on labor demand elasticities for low-skilled workers.

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. 687, 2020

The Statutory Minimum Wage in Germany and the Labor Demand Elasticities of Low-Skilled Workers: A Regression Discontinuity Approach with Establishment Panel DataDownload PDF
by
Kölling, Arnd

GLO Fellow Arnd Koelling

Author Abstract: This study examines the influence of the statutory minimum wage on labor demand elasticities regarding low-skilled workers. For this, a regression discontinuity analysis is conducted using company panel data from 2013 to 2018. In addition, a possible endogeneity of the remuneration for low-skilled workers was considered using an IV estimation. It is shown that the monopsonistic structures of the labor market may continue to exist after the introduction of the minimum wage. Additionally, the own-wage elasticity for low-skilled workers did not change over the period considered. However, in the short run, stronger substitutive relationships with medium-skilled workers seem to exist, and probably also with highly qualified employees in the long run.

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.

Ends;

Posted in News, Research | Comments Off on The Statutory Minimum Wage in Germany and the Labor Demand Elasticities of Low-Skilled Workers: A Regression Discontinuity Approach with Establishment Panel Data

Unpaid work and gender gap patterns in Colombia

A new GLO Discussion Paper suggests that the gender gap in unpaid work in Columbia depends on factors such as educational level, paid employment status, and family composition.

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. 686, 2020
Unpaid work and gender gap patterns in ColombiaDownload PDF
by
Ospina-Cartagena, Vanessa & García-Suaza, Andrés

GLO Fellow Andrés Felipe García-Suaza

Author Abstract: Gender inequality is much more than wage gaps. Indeed, one interesting case is how individuals allocate time among different activities such as paid work, unpaid work and domestic work. This paper aims to quantify gender inequality in the time use in unpaid care and home activities and to investigate the main drivers of gender gaps in Colombia using the National Time Use Survey. Our results suggest that the gender gap in unpaid work depends on factors such as educational level, paid employment status, and family composition. Counterfactual exercises comparing individuals under different family contexts suggest that the gender gap varies importantly with the presence of children, marital status and individual’s participation in the generation of household income.

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.

Ends;

Posted in News, Research | Comments Off on Unpaid work and gender gap patterns in Colombia

Wage Distributions in Origin Societies and Occupational Choices of Immigrant Generations in the US

A new GLO Discussion Paper studies the occupational selection among generations of immigrants in the United States and shows how their choices are linked to the occupational wage distribution in their country of origin.

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. 685, 2020
Wage Distributions in Origin Societies and Occupational Choices of Immigrant Generations in the USDownload PDF
by
Zhan, Crystal
Forthcoming: Journal of Population Economics
GLO Fellow Crystal Zhan

Author Abstract: This paper studies the occupational selection among generations of immigrants in the United States and links their choices to the occupational wage distribution in their country of origin. The empirical results suggest that individuals are more likely to take up an occupation in the US that was more lucrative in the origin country, conditional on individual demographics, parental human capital, and ethnic networks. However, the importance of the origin wage declines with the length of time that immigrants spend in the US and over generations. Information friction may be an explanation.

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.

Ends;

Posted in News, Research | Comments Off on Wage Distributions in Origin Societies and Occupational Choices of Immigrant Generations in the US

Railroads, specialization, and population growth: evidence from the first globalization in Chile.

A new paper published online in the Journal of Population Economics finds that railroads affected population growth during the first globalization (1865–1920) in Chile.

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.

Railroads, specialization, and population growth: evidence from the first globalization

by Andres Forero, Francisco A. Gallego, Felipe Gonzalez and Matıas Tapia

Published ONLINE: Journal of Population Economics, scheduled for 2021. FREE READLINK

GLO Fellow Francisco A. Gallego

Railway

Author Abstract: We explore how railroads affected population growth during the first globalization (1865–1920) in Chile. We look at areas with a strong comparative advantage in agriculture using novel data that document 60 years of railroad construction. Using instrumental variables, we present four main findings. First, railroads increased both urban and rural population growth. Second, the impact was stronger in areas with more potential for agricultural expansion. Third, railroads increased specialization in agriculture when combined with a high level of the real exchange rate. And fourth, railroads had little effect on human capital and fertility. These results suggest that the effects of transportation technologies depend on existing macroeconomic conditions.

Featured image: photo-Paul-Jarvis-on-Unsplash

Access to the recently published Volume 33, Issue 4, October 2020.

LEAD ARTICLE OF ISSUE 4:
Yun Qiu, Xi Chen & Wei Shi, Impacts of social and economic factors on the transmission of coronavirus disease 2019 (COVID-19) in China
Journal of Population Economics 33, 1127–1172 (2020). OPEN ACCESS
Over 29K journal downloads & over 80 Google Scholar cites as of October 26, 2020.

This image has an empty alt attribute; its file name is 002-Cover-Page-JPopEa.jpg

Ends;

Posted in News, Research | Comments Off on Railroads, specialization, and population growth: evidence from the first globalization in Chile.

Labor market effects of a work-first policy for refugees

A new paper published online in the Journal of Population Economics studies the labor market effects of a work-first policy that aimed at speeding up the labor market integration of refugees. New requirements for refugees to actively search for jobs and to participate in on-the-job training immediately upon arrival in Denmark led to limited employment effects among males but not for females.

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.

Labor market effects of a work-first policy for refugees

by Jacob Nielsen Arendt

Published ONLINE: Journal of Population Economics, scheduled for 2021. OPEN ACCESS!!
GLO Fellow Jacob Nielsen Arendt
GLO Discussion Paper No. 662, 2020

Author Abstract: This study estimates the labor market effects of a work-first policy aimed at speeding up the labor market integration of refugees. The policy added new requirements for refugees to actively search for jobs and to participate in on-the-job training immediately upon arrival in the host country, Denmark. The requirements were added to an existing policy that emphasizes human capital investments in language training. The results show that the work-first policy speeded up entry into regular jobs for men, but they find work in precarious jobs with few hours. Long-run effects are uncertain since the policy crowds out language investments but raises enrollment in education. The policy had no or very small effects for women, which is partly explained by a lower treatment intensity for women.

Access to the recently published Volume 33, Issue 4, October 2020.

LEAD ARTICLE OF ISSUE 4:
Yun Qiu, Xi Chen & Wei Shi, Impacts of social and economic factors on the transmission of coronavirus disease 2019 (COVID-19) in China
Journal of Population Economics 33, 1127–1172 (2020). OPEN ACCESS
Over 27K journal downloads & over 80 Google Scholar cites as of October 18, 2020.

This image has an empty alt attribute; its file name is 002-Cover-Page-JPopEa.jpg

Ends;

Posted in News, Research | Comments Off on Labor market effects of a work-first policy for refugees

Biased Teachers and Gender Gap in Learning Outcomes: Evidence from India

The new GLO Discussion Paper presents evidence about the effects of stereotypical beliefs of teachers on learning outcomes of secondary school students 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. 684, 2020
Biased Teachers and Gender Gap in Learning Outcomes: Evidence from IndiaDownload PDF
by
Rakshit, Sonali & Sahoo, Soham

GLO Fellow Soham Sahoo

Author Abstract: This paper investigates the effect of stereotypical beliefs of teachers on learning outcomes of secondary school students in India. We measure teacher’s bias through an index capturing teacher’s subjective beliefs about the role of gender and other characteristics in academic performance. We tackle the potential endogeneity of teacher’s subjective beliefs by controlling for teacher fixed effects in a value-added model that includes lagged test score of students. We find that a standard deviation increase in biased attitude of the math teacher widens the female disadvantage in math performance by 0.07 standard deviation over an academic year. This negative effect of biased teachers is significant only for male teachers. The effect is especially strong among the medium-performing students and in classes where the majority of students are boys. Moreover, among the medium-performing students, having a female teacher significantly reduces the gender gap in math performance. As a plausible mechanism, we show that biased teachers negatively affect girls’ attitude towards math as compared to boys. Unlike math outcome, we do not find any significant effect when we analyze the effect of biased English teachers on English scores of the same students.

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.

Ends;

Posted in News, Research | Comments Off on Biased Teachers and Gender Gap in Learning Outcomes: Evidence from India

A European ‘Hamiltonian Moment’? Contribution of Klaus F. Zimmermann to the debate in ‘The International Economy’.

Summer 2020: Europe-wide taxation and a European finance minister are necessary consequences of the new strategy. In: A Symposium of Views. Did Europe Just Experience Its ‘Hamiltonian Moment’? The International Economy. Summer 2020. Pp. 17-18. Text see below.

Klaus F. Zimmermann: Europe-wide taxation and a European finance minister are necessary consequences of the new strategy.

After the onset of the Covid-19 crisis, European institutions remained absent for a long time, leaving relevant activities to the largely uncoordinated national policies of single governments. The European Union only returned with a coronavirus relief plan based on the issuance of common debt after a long delay.

Heavily debated among governments and within the European Parliament has been whether the mutualized debt should be provided as grants or loans, and what the negative financial implications of the rescue would be for the pre-corona European plans of fostering structural
change. But the move was also considered as a potential “Hamiltonian moment” of re-creating Europe as the United States of a zone based on fiscal and political integration.

Is such a creative leap conceivable? Can the crisis be instrumentalized to foster the needed long-term structural changes in economy and society, including establishing EU-wide fiscal stability and coordination? Simple political observation says that it pays not to waste a crisis, and no political measure is as permanent as a temporary measure. But the prospect of a new United States of Europe is not only driven by accident and the political logic of muddling-through. It is also suggested by the long-term economic forces and the immense global challenges the world is facing.

The past and future lockdowns of economies and social life will generate a tremendous recession much stronger than the global financial crisis (2007–2008), with substantial long-term negative consequences for the flexibility of government activities and government debt.
This has reinvigorated the role of government and macro management.

The burden for coming generations has substantially increased beyond the massive challenges that climate change, demographic imbalances, global refugee flows, and digitalization already present. It is almost impossible to ignore the powerful forces of globalization and international
cooperation during such an emergency.

A functioning European Union is not superfluous; on the contrary, it is more indispensable than ever. Solidarity is a global public good, but it will only be realized once common values have been agreed on, including democracy, humanitarian principles, fiscal sustainability, the
acceptance of the decisive role of incentives to optimize welfare, and the drive for structural reforms and social change.

Brexit has made this pathway easier for the rest of Europe. The critical role of the “frugal four” (Sweden, Denmark, the Netherlands, and Austria) in the debate has made the new debt policy more credible. Europe-wide taxation and a European finance minister are necessary consequences of the new strategy.

Related literature: Jo Ritzen, Javi Lopez, André Knottnerus, Salvador Pérez-Moreno, George Papandreou & Klaus F. Zimmermann (2020), “Taking the challenge: A joint European policy response to the corona crisis to strengthen the public sector and restart a more sustainable and social Europe”, UNU-MERIT Working Paper No. 2020-015.

Ends;

Posted in Media, News, Policy | Comments Off on A European ‘Hamiltonian Moment’? Contribution of Klaus F. Zimmermann to the debate in ‘The International Economy’.

From the lockdown to the new normal: An analysis of the limitations to individual mobility in Italy following the Covid-19 crisis.

A new GLO Discussion Paper explores the impact of the adoption and the removal of restrictive measures in the Italian Covid-19 crisis on changes in individual mobility in Italy. The measures lowered individual mobility by about 7 percentage points.

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.

Sergio Scicchitano

GLO Discussion Paper No. 683, 2020

From the lockdown to the new normal: An analysis of the limitations to individual mobility in Italy following the Covid-19 crisis Download PDF
by
Caselli, Mauro & Fracasso, Andrea & Scicchitano, Sergio

GLO Fellow Sergio Scicchitano

Author Abstract: Italy was among the first countries to introduce drastic measures to reduce mobility in order to prevent the diffusion of Covid-19. On March 9, 26 out of 111 provinces were subject to severe limitations on individual mobility between municipalities. One day later, new restrictive measures were introduced in the whole country with no regional distinctions: this continued until June 3 when the limits on movements across regions were eventually lifted. By looking at these watershed moments, this paper explores, for the first time, the impact of the adoption and the removal of restrictive measures on changes in individual mobility in Italy. By using a spatial discontinuity approach, we show that these measures were effective in that they lowered individual mobility by about 7 percentage points relative to what is accounted for by the characteristics of the local population and the disease. The analysis shows, however, that local features played an important role after the travelling bans were lifted: the catching up with pre-Covid-19 patterns has been stronger in those areas where the labour force is relatively less exposed to the risk of contagion and less likely to work from home.

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.

Ends;

Posted in News, Research | Comments Off on From the lockdown to the new normal: An analysis of the limitations to individual mobility in Italy following the Covid-19 crisis.