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

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

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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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Long Live the Vacancy

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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Pay Gaps and Mobility for Lower and Upper Tier Informal Sector Employees: an investigation of the Turkish labor market

A new GLO Discussion Paper studies the wage gap between formal and informal sector workers in Turkey confirming that an informal wage penalty is persistent even after unobserved heterogeneity is taken into account.

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. 655, 2020

Pay Gaps and Mobility for Lower and Upper Tier Informal Sector Employees: an investigation of the Turkish labor marketDownload PDF
by
Duman, Anil

GLO Fellow Anil Duman

Author Abstract: Many empirical studies found wage gaps between formal and informal sector workers even after controlling for a number of individual and firm level characteristics. While there is limited amount of research considering the same question in the Turkish labor market, wage gap between formal and informal employees generally do not take unobserved characteristics into account. In our paper, we carry this analysis for Turkey and estimate the wage gap between formal and informal sector workers utilizing panel data from Survey of Income and Living Conditions (SILC) for the period of 2014 and 2017. Mincer wage equations across quantiles are estimated considering observable and unobservable characteristics with a fixed effect model, and for sensitivity tests we regard the possibility of nonlinearity in covariate effects and estimate a variant of matching models. Our results show that informal wage penalty is persistent even after unobserved heterogeneity is taken into account, however, the penalty is not statistically significant at the upper end of the wage distribution. Moreover, we show that there are important differences between informal workers who have permanent contracts versus informal workers that have relatively more irregular work arrangements. Not only the latter is subject to earnings reductions, but they also have slightly lower probability of moving out of informal employment. We also demonstrate that the mobility of lower and upper tier informal workers is affected by different variables.

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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Unemployment, Immigration, and Populism: Evidence from Two Quasi-Natural Experiments in the United States

A new GLO Discussion Paper studies the effects of unemployment and unauthorized immigration on attitudes related to populism and populist voting in the 2016 U.S. Presidential Election.

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. 652, 2020

Unemployment, Immigration, and Populism: Evidence from Two Quasi-Natural Experiments in the United States Download PDF
by
Chen, Shuai

GLO Fellow Shuai Chen

Author Abstract: This paper examines how economic insecurity and cultural anxiety have triggered different dimensions of the current populism in the United States. Specifically, I exploit two quasi-natural experiments, the Great Recession and the 2014 Northern Triangle immigrant influx, to investigate the effects of unemployment and unauthorized immigration on attitudes related to populism and populist voting in the 2016 U.S. Presidential Election. I discover that recent unemployment during the Great Recession, rather than existing unemployment from before the recession, increased the probability of attitudes forming against wealthy elites by 15 percentage points. Such attitudes are connected with left-wing populism. I identify perceived economic unfairness as a mechanism through which recent unemployment drove left-wing populism. However, cultural anxiety rather than economic insecurity more likely led to the over 10 percentage points rise in the probability of anti-immigration attitudes developing. These attitudes are related to right-wing populism. Furthermore, I obtain evidence that cohorts economically suffering the aftermath of the Great Recession were associated with 40 percentage points higher likelihood of supporting left-wing populist Bernie Sanders, while cohorts residing in regions most intensely impacted by the immigrant in ux were associated with 10 percentage points higher possibility to vote for right-wing populist Donald Trump. This study attempts to link distinct economic and cultural driving forces to different types of populism and to contribute to the understanding on the potential interactions of the economic and cultural triggers of the currently surging populism.

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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Impacts of COVID-19 on Food Security: Panel Data Evidence from Nigeria

A new GLO Discussion Paper quantifies the overall and differential impacts of COVID-19 on household food security, labor market participation and local food prices in Nigeria.

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. 653, 2020

Impacts of COVID-19 on Food Security: Panel Data Evidence from NigeriaDownload PDF
by
Amare, Mulubrhan & Abay, Kibrom A. & Tiberti, Luca & Chamberlin, Jordan

GLO Fellow Luca Tiberti

Author Abstract: This paper combines pre-pandemic face-to-face survey data with follow up phone surveys collected in April-May 2020 to quantify the overall and differential impacts of COVID-19 on household food security, labor market participation and local food prices in Nigeria. We exploit spatial variation in exposure to COVID-19 related infections and lockdown measures along with temporal differences in our outcomes of interest using a difference-in-difference approach. We find that those households exposed to higher COVID-19 cases or mobility lockdowns experience a significant increase in measures of food insecurity. Examining possible transmission channels for this effect, we find that COVID-19 significantly reduces labor market participation and increases food prices. We find that impacts differ by economic activities and households. For instance, lockdown measures increased households’ experience of food insecurity by 13 percentage points and reduced the probability of participation in non-farm business activities by 11 percentage points. These lockdown measures have smaller impacts on wage-related activities and farming activities. In terms of food security, households relying on non-farm businesses, poorer households, those with school-aged children, and those living in remote and conflicted-affected zones have experienced relatively larger deteriorations in food security. These findings can help inform immediate and medium-term policy responses, including social protection policies aiming at ameliorating the impacts of the pandemic, as well as guide targeting strategies of governments and international donor agencies by identifying the most impacted sub-populations.

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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Second Webinar in the GLO Virtual Young Scholar (GLO-VirtYS) Program, Cohort 2019-20. First announcement for September 17, 2020.

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.

This seminar is GLO internal, special invitation needed.

First Webinar (seminar on September 10, 2020 with presentations by Yannis Galanakis & Samuel Mann). Report of the event. Watch the video of the event.

September 17th 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.

Satyendra Kumar Gupta

Satyendra Kumar Gupta is working as assistant professor at Jindal School of Government and Public Policy. He received PhD in economics from NTU Singapore in 2017. His research interest are in long-run economic growth and development economics. His research interplays between the natural endowment, natural experiments and contemporary economic development. His work is published at JEEM, Land Econ, and Econ Letters.

GLO VirtYS Project

Irrigation and Culture: Gender Roles and Women’s Rights

This paper proposes the hypothesis that the historical use of irrigation reduces contemporary female labor force participation and female property rights. We test the hypothesis using an exogenous measure of irrigation and data from pre-industrial societies (Ethnographic Atlas; Standard Cross-Cultural Sample), the Afrobarometer, cross-country data, the European Social Survey, the American Community Survey, and the India Demographic and Household Survey. Our hypothesis receives considerable empirical support. First, in pre-industrial societies, irrigation was associated with reduced female relative participation in agriculture and subsistence activities. Second, we find negative associations between ancestral irrigation and female labor force participation and related attitudes in the contemporary African and Indian populations, 2nd generation European immigrants, 1.5 and 2nd generation US immigrants, and in cross-country data. Third, in Africa and across countries, ancestral irrigation is negatively associated with female property rights. Our estimates are robust to a host of control variables and alternative specifications. We find some support for four potential partial mechanisms. First, due to the common pool nature of irrigation water, pre-industrial societies had more frequent conflicts and warfare. This raised the social status of males and restricted women’s movements away from home. Second, in premodern societies irrigation activities favored males, which caused females to gravitate toward the home. Over time, these two mechanisms have produced a cultural preference against female participation in the formal labor market. Third, irrigation historically produced autocracy, which tends to weaken property rights. Fourth, historical irrigation has yielded collectivism, which is associated with weaker female property rights.

Kelly Hyde

Kelly Hyde is a PhD candidate in economics at University of Pittsburgh, with concentrations in health, environmental, and behavioral economics. His research broadly focuses on the environmental and behavioral determinants of health disparities in both developed and developing economic contexts. Kelly’s recent work studies the relationship between drinking water contamination, extreme temperatures, and dimensions of poverty in the United States, including food security and risks of adverse health outcomes. He contributes to the existing literature on adaptation to and avoidance of environmental shocks by considering their distributional implications, since the cost of avoidance looms larger for budget-constrained households. This research agenda is supported by a Doctoral Dissertation Research Improvement Grant from the National Science Foundation.

GLO VirtYS Project

The Regressive Costs of Drinking Water Contaminant Avoidance

Up to 45 million Americans in a given year are potentially exposed to contaminated drinking water, increasing their risk of a wide range of adverse health outcomes. Existing literature has demonstrated that individuals respond to drinking water quality violations by increasing their purchases of bottled water and filtration avoidance, thereby avoiding exposure to contaminants. This paper demonstrates that poorer households, for whom the costs of avoidance comprise a greater share of disposable income, bear disproportionate costs of water quality violations in the United States. Following a health-based water quality violation reported to the Environmental Protection Agency, poor households’ expenditure on nutritious grocery products in a nationally representative panel differentially decreases by approximately $7 per month. This is associated with a decrease of about 1,500 calories per household member per day, placing these individuals at a higher risk of food insecurity. This finding suggests that the indirect costs of drinking water contamination through economic channels exacerbate health disparities associated with poverty.

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First Webinar in the GLO Virtual Young Scholar (GLO-VirtYS) Program, Cohort 2019-20: Report and Video.

First 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 10th Program

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

  1. Yannis Galanakis, University of Kent and GLO affiliate
    Female Human Capital Mismatch: An extension for the British public sector (GLO VirtYS program advisor Professor Nick Drydakis). VIDEO of this presentation.
  2. Samuel Mann, Wales Institute of Social & Economic Research, Data & Methods and GLO affiliate
    Gender Identity, Employment, Self-Employment and Trans Legislation (GLO VirtYS program advisor Professor Nick Drydakis). VIDEO of this presentation.

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

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#VeniceFilmFestival: Mexican Filmmaker Michel Franco received the Grand Jury Prize of the Venice Film Festival 2020 for “NEW ORDER”, a “harrowing, ultra-violent coup d’etat thriller” considered to be his “most ambitious & darkest film”.

Announced yesterday night:

My Rockefeller Foundation Bellagio 2017 colleague Michel Franco won the Grand Jury Prize of the Venice Film Festival 2020 with his new coup d’etat thriller “New Order” about a distressing drama …. set in a dystopian Mexican city”, considered to be his “most ambitious and darkest film”.

Can be proud to have learned about the Mexican film director and his work during our joint visit at the Bellagio center.

Congratulations, Michel!

After “Chronic”, “April’s Daughter”, “After Lucia” now “New Order” (youtube TEASER). More Info.

As ever, merciless and obsessed with his topic.

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Education and gender role attitudes in China

A new paper published ONLINE FIRST in the Journal of Population Economics finds that the extra schooling induced by the compulsory schooling reform from the 1986 Compulsory Education Law in China leads to more egalitarian gender role attitudes.

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Education and gender role attitudes

Huichao Du, Yun Xiao & Liqiu Zhao

Published ONLINE FIRST. Forthcoming: Journal of Population Economics (2021) 34, Issue 1
FREE READLINK: https://rdcu.be/b68hg

GLO Fellow Liqiu Zhao

Author Abstract: This paper examines whether education plays an important role in shaping individuals’ gender role attitudes. We exploit exogenous variation in temporal and geographical impacts of the 1986 Compulsory Education Law in China, which reduced inequality in compulsory school attendance across regions. Using the data from the China General Social Survey, we find that the extra schooling induced by the compulsory schooling reform leads to more egalitarian gender role attitudes. Education’s liberalizing effect is concentrated among females and urban residents. However, education’s impacts on gender-equal behavior are much weaker than impacts on attitudes. Finally, we discuss the potential channels through which education shapes individuals’ gender-role attitudes.

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 22K journal downloads & over 60 Google Scholar cites as of September 13, 2020.

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Excess churn in integrated labor markets.

A new paper published ONLINE FIRST in the Journal of Population Economics finds for Norway evidence of high excess churn rates in firms with many workers from the new EU member states. This leads to a reallocation of labor within firms that simultaneously involves a flow of (typically native) employees to unemployment benefits and the hiring of similar migrant workers.

Read more in:

Bernt Bratsberg, Oddbjørn Raaum & Knut Røed

Excess churn in integrated labor markets

Published ONLINE FIRST. Forthcoming: Journal of Population Economics (2021), volume 34. FREE READLINK: https://rdcu.be/b62qv

Author Abstract: The common European labor market enhances allocative efficiency, but certain institutional features may also trigger inefficient migration. As a job in a high-income country entails generous welfare and social insurance entitlements, migrants’ reservation wages may lie below their opportunity cost of labor. We show that this gives rise to an externality when employers and migrant workers can pass some of their remuneration costs onto taxpayers. Once welfare benefit entitlement is secured, the reservation wage of the migrant rises, giving the firm an incentive to replace the worker with a similar migrant willing to accept lower pay. This leads to excess churn—a reallocation of labor within firms that simultaneously involves a flow of employees to unemployment benefits and the hiring of similar workers. Based on Norwegian data, we present evidence of high excess churn rates in firms with many workers from the new EU member states.

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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