Klaus F. Zimmermann

A new GLO Discussion Paper finds for Sweden a positive, yet heterogeneous, effect of trade on immigrant employment but no effect on immigrant wages.

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. 659, 2020

International Trade and Labor Market Integration of Immigrants – Download PDF
by Lodefalk, Magnus & Sjöholm, Fredrik & Tang, Aili

GLO Fellow Magnus Lodefalk

Author Abstract: We examine if international trade improves labor market integration of immigrants in Sweden. Immigrants participate substantially less than natives in the labor market. However, trading with a foreign country is expected to increase the demand for immigrants from that country. By hiring immigrants, a firm may access foreign knowledge and networks needed to overcome information frictions in trade. Using granular longitudinal matched employer–employee data and an instrumental variable approach, we estimate the causal effects of a firm’s bilateral trade on employment and wages of immigrants from that country. We find a positive, yet heterogeneous, effect of trade on immigrant employment but no effect on immigrant wages.

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 studies adolescent girls’ attitudes towards intimate partner violence and child marriage using data from rural Bangladesh. It further investigates how numerous variables relate to preferences for egalitarian gender norms in rural Bangladesh.

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. 658, 2020; forthcoming 2021 in the Journal of Population Economics.

Measuring Gender Attitudes Using List Experiments – Download PDF
by Asadullah, M Niaz & De Cao, Elisabetta & Khatoon, Fathema Zhura & Siddique, Zahra

GLO Fellows M Niaz Asadullah & Zahra Siddique

Author Abstract: We elicit adolescent girls’ attitudes towards intimate partner violence and child marriage using purposefully collected data from rural Bangladesh. Alongside direct survey questions, we conduct list experiments to elicit true preferences for intimate partner violence and marriage before age eighteen. Responses to direct survey questions suggest that very few adolescent girls in the study accept the practises of intimate partner violence and child marriage (5% and 2%). However, our list experiments reveal significantly higher support for both intimate partner violence and child marriage (at 30% and 24%). We further investigate how numerous variables relate to preferences for egalitarian gender norms in rural Bangladesh.

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 examines the hypothesis that trade can be an engine of growth using data for the Southern African Development Community (SADC) countries. It finds that export expansion stimulated growth, more openness to trade reduced it, and that the formation of SADC had not yet brought any effects on growth.

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. 657, 2020

Trade and Economic Growth: Theories and Evidence from the Southern African Development Community – Download PDF
by Farahane, Matias Jaime & Heshmati, Almas

GLO Fellow Almas Heshmati

Author Abstract: This paper empirically tests the hypothesis that trade can act as an engine of growth using panel data for the Southern African Development Community (SADC), a regional integration agreement (RIA) organization, the central objective of whose formation was the need to accelerate, foster, and encourage the region’s growth. Our results indicate that during the period covered by this study (2005-2017), export expansion stimulated growth, more openness to trade reduced it, and that the formation of SADC had not yet brought about any effects on growth perhaps because of lack of full establishment of the primary instruments for achieving its central objective. These results lead to three conclusions. Firstly, trade through export expansion seems to be a better solution for SADC for achieving the central objective of its formation. Secondly, more openness to trade seems to jeopardize growth. Finally, the formation of SADC has not yet brought about the expected gains from a RIA. In this context, we recommend that policymakers should consider adopting measures aimed at supporting increased trade through promoting export expansion, achieving strong absorption of negative chocks that usually result from trade, and exploring the possibility of establishing all the planned primary instruments for achieving SADC’s central objective.

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 studies the direct and indirect impacts the extractive industries have on economic growth in the Southern African Development Community (SADC) 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. 656, 2020

The Extractive Industry’s impact on Economic Growth in SADC Countries – Download PDF
by Nhabinde, Simeão & Heshmati, Almas

GLO Fellow Almas Heshmati

Author Abstract: The Southern African Development Community (SADC) countries are rich in natural resources and in most of them their extractive industries extract and export natural resources with little industrial processing. This study analyzes the direct and indirect impacts that the extractive industries in the SADC countries have on their economic growth. The study also examines the hypothesis of economic convergence. Its empirical results are based on data from the 11 founding SADC countries covering the period 2004-17. The results show that despite the process of integration, the SADC economies do not converge in terms of per capita incomes. The extractive industries have direct negative impacts on the countries’ economic growth thus providing evidence of a resource curse. Extractive industries in South Africa, Botswana, and Namibia have positive direct impacts on their economic growth. However, in terms of indirect impacts, the extractive industries do not have any impact on GDP because their impact on manufacturing, human capital, public expenditure, economic openness, exchange rate, and inflation is insignificant. The study also shows that GDP, the colonial path followed by these countries, and inflation have a negative but insignificant impact on extractive industries, while manufacturing, government expenditure, and economic openness have positive but insignificant impacts in all SADC countries. Human capital and exchange rate are the only factors that have both significant positive and negative impacts on economic growth, respectively.

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 indicates that the negative COVID-19 labour market effects are felt the most by people in the lowest percentiles of the financial wellbeing distribution suggesting significant increases in financial wellbeing disadvantage and inequality.

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. 661, 2020

COVID-19 labour market shocks and their inequality implications for financial wellbeing – Download PDF
by Botha, Ferdi & de New, John P. & de New, Sonja C. & Ribar, David C. & Salamanca, Nicolá

GLO Fellows John P. de New & David C. Ribar

Author Abstract: Using an online survey of Australian residents, we elicit the potential impacts of COVID-19 related labour market shocks on a validated measure of financial wellbeing. Experiencing a reduction in hours and earnings, entering into unemployment or having to file for unemployment benefits during the pandemic are strongly and significantly associated with decreases in financial wellbeing of 29% or 18 points on the financial wellbeing scale of 0-100, despite various government measures to reduce such effects. Unconditional quantile regression analyses indicate that the negative COVID-19 labour market effects are felt the most by people in the lowest percentiles of the financial wellbeing distribution. Counterfactual distribution regressions indicate a shifting of the financial wellbeing distribution leftwards brought on by those suffering any of the above-mentioned labour market shocks, indicating potential significant increases in financial wellbeing disadvantage and inequality.

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 paper published ONLINE FIRST in the Journal of Population Economics challenges the anecdotal view of additional paid vacation days as an adequate means to improve workers’ health.

Read more in:

The effect of paid vacation on health: evidence from Sweden

Thomas Hofmarcher

Published ONLINE FIRST. Forthcoming: Journal of Population Economics (2021), volume 34. FREE READLINK: https://rdcu.be/b7sJK

Author Abstract: This study estimates the causal effect of paid vacation on health. Using register data on the universe of central government employees in Sweden, I exploit an age-based rule stipulated in the collective agreement covering these employees. I achieve identification by combining a regression discontinuity with a difference-in-differences design to control for time-invariant differences between consecutive birth cohorts and isolate the true effect at two separate discontinuities at ages 30 and 40. The main results indicate that an increase of three paid vacation days at age 30 and four days at age 40 do not cause significant changes in health, as proxied by visits to specialized outpatient care, inpatient admissions, and long-term sick leaves. These findings challenge the anecdotal view of additional paid vacation days as an adequate means to improve workers’ health.

Access to the newly published complete 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 21K journal downloads & over 60 Google Scholar cites as of September 10, 2020.

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Second webinar in the GLO Virtual Young Scholar (GLO-VirtYS) Program, Cohort 2019-20

All the presentation in this series are based on the projects that GLO-VirtYS program scholars completed as part of their program participation.

September 17^th Program

Sydney (10pm), Beijing (8pm), Istanbul (3pm), Berlin (2pm), London (1pm), Cape Town (2pm), Washington DC (8am), Santiago de Chile (8am)

1. Satyendra Kumar Gupta, Jindal School of Government and Public Policy and GLO Affiliate
   Irrigation and Culture: Gender Roles and Women’s Rights (GLO VirtYS program advisor Professor Almas Heshmati)
2. Kelly Hyde, University of Pittsburgh and GLO Affiliate
   The Regressive Costs of Drinking Water Contaminant Avoidance (GLO VirtYS program advisor Professor Anurag Sharma)

Chaired by GLO VirtYS Program Director Olena Nizalova.
Full video of the event.
For more information about both speakers and their paper abstracts.

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A new paper published ONLINE FIRST in the Journal of Population Economics provides global evidence that the U-shaped happiness-age curve is everywhere.

Read more in:

Is happiness U-shaped everywhere? Age and subjective well-being in 145 countries

David G. Blanchflower

Published ONLINE FIRST. Forthcoming: Journal of Population Economics (2021), volume 34. FREE READLINK: https://rdcu.be/b7kyO

Also GLO Discussion Paper No. 530, 2020.

Watch also his related GLO Virtual Seminar presentation on Despair, Unhappiness and Age. Video of seminar.

GLO Fellow David G. Banchflower & Research Director GLO

Author Abstract: A large empirical literature has debated the existence of a U-shaped happiness-age curve. This paper re-examines the relationship between various measures of well-being and age in 145 countries, including 109 developing countries, controlling for education and marital and labor force status, among others, on samples of individuals under the age of 70. The U-shape of the curve is forcefully confirmed, with an age minimum, or nadir, in midlife around age 50 in separate analyses for developing and advanced countries as well as for the continent of Africa. The happiness curve seems to be everywhere. While panel data are largely unavailable for this issue, and the findings using such data largely confirm the cross-section results, the paper discusses insights on why cohort effects do not drive the findings. I find the age of the minima has risen over time in Europe and the USA.

Access to the newly published complete 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 21K journal downloads & over 60 Google Scholar cites as of September 10, 2020.

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A new GLO Discussion Paper studies the role of long-term vacancies in a Diamond-Mortensen-Pissarides style search and matching model calibrated to the US economy and identifies a vacancy depletion channel.

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. 654, 2020

Long Live the Vacancy – Download PDF
by Haefke, Christian & Reiter, Michael

GLO Fellow Christian Haefke

Author Abstract: We reassess the role of vacancies in a Diamond-Mortensen-Pissarides style search and matching model. In the absence of free entry long lived vacancies and endogenous separations give rise to a vacancy depletion channel which we identify via joint unemployment and vacancy dynamics. We show conditions for constrained efficiency and discuss important implications of vacancy longevity for modeling and calibration, in particular regarding match cyclicality and wages. When calibrated to the postwar US economy, the model explains not only standard deviations and autocorrelations of labor market variables, but also their dynamic correlations with only one shock.

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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