A new GLO Discussion Paper reviews the literature that investigates the effects of innovation on firm survival and firm productivity, the two main channels through which innovation drives 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.
Author Abstract: We review the theoretical underpinnings and the empirical findings of the literature that investigates the effects of innovation on firm survival and firm productivity, which constitute the two main channels through which innovation drives growth. We aim to contribute to the ongoing debate along three paths. First, we discuss the extent to which the theoretical perspectives that inform the empirical models allow for heterogeneity in the effects of R&D/innovation on firm survival and productivity. Secondly, we draw attention to recent modeling and estimation effort that reveals novel sources of heterogeneity, non-linearity and volatility in the gains from R&D/innovation, particularly in terms of its effects on firm survival and productivity. Our third contribution is to link our findings with those from prior reviews to demonstrate how the state of the art is evolving and with what implications for future research.
A new GLO Discussion Paper finds for Canada large decreases in the number of small business owners, the number of employed, and in hours worked, from February to July 2020.
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: Canadian employers are largely small businesses. Their relevance for job creation and labor demand is integral for policymakers concerned with adverse labor market outcomes resulting from the COVID-19 pandemic. Using the Canadian Labor Force Survey (LFS) we document how the self-employed, which we interpret as small business owners, and employees of small businesses are being affected by COVID-19. We find large decreases in the number of small business owners, the number of employed, and in hours worked, from February to July 2020. We also find large labor market impact on small business employees. Our research confirms increasing employment, hours worked, and small business ownership as provinces began reopening their economies in May to July 2020. Still, these improvements are often below pre-March 2020 trends with some demographic groups, such as female and immigrant small business owners, having considerably worse outcomes than their respective counterparts.
A new GLO Discussion Paper studies mismatch of workers in the Indian labor market: overeducated workers suffer a wage penalty and undereducated workers do not receive a wage reward as compared to their adequately educated counterparts.
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: Using a national level sample survey on the labor market in India, we analyze the role of education-occupation (mis-)match (EOM) in explaining within-group dispersion in returns to education. Applying a double sample selection bias correction and Mincerian quantile wage regression estimation, the analysis reveals interesting findings. First, on average, overeducated workers suffer a wage penalty of seven percent and undereducated workers do not receive a wage reward as compared to their adequately educated counterparts. Second, the inclusion of match status reduces within-education group dispersion in returns. The finding highlights that ignoring EOM and thus, adopting a restrictive view of similarity across workers may lead to overestimation of the within-education group dispersion in returns. This study argues for focusing on EOM to increase both pecuniary and social benefits of education in terms of productivity gains and wages as well as to reduce wage dispersion.
A new GLO Discussion Paper document stronger shocks for truly innovative companies and effects on long-run growth operating through the disruption of preexisting R&D plans.
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 contributes to the policy discussion on Covid-19 by presenting real-time evidence on the magnitude of the shock for Italian firms. We take advantage of unique panel data on 7,800 companies between January 2020 (right before the pandemic) and March of the same year (in the midst of lockdown policies). We then exploit the revision in expectation within this short time window to capture the impact of firms’ idiosyncratic shock. Our analysis shows disproportionate effects for internationalized companies and provide some evidence on supply chain contagion. We also document stronger shocks for truly innovative companies and effects on long-run growth operating through the disruption of preexisting R&D plans.
A new GLO Discussion Paper finds that lockdowns improve air quality, but the effects appear to dissipate after ten weeks.
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: Little evidence currently exists on the effects of COVID-19 on air quality in poorer countries, where most air pollution-linked deaths occur. We offer the first study that examines the pandemic’s impacts on improving air quality in Vietnam, a lower-middle income country with worsening air pollution. Employing the Regression Discontinuity Design method to analyze a rich database that we compile from satellite air pollution data and data from various other sources, we find the concentration of NO2 to decrease by 24 to 32 percent two weeks after the COVID-19 lockdown. While this finding is robust to different measures of air quality and model specifications, the positive effects of the lockdown appear to dissipate after ten weeks. We also find that mobility restrictions are a potential channel for improved air quality. Finally, our back-of-the-envelope calculations suggest that two weeks after the lockdown, the economic gains from better air quality are roughly $0.6 billion US dollars.
A new GLO Discussion Paper finds large negative effects on welfare receipts for an Australian reform that imposed job search requirements as a condition of unemployment benefit receipt with expected large labor supply consequences.
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: Many countries impose job search requirements as a condition of unemployment benefit receipt, but there is relatively little evidence on the efficacy of these requirements. Australian reforms in 1995 and 2003 saw groups of welfare recipients newly subjected to job search requirements, providing an opportunity to identify their effects on welfare receipt. Using this quasi-experimental design and administrative data, we find negative effects on welfare receipt for the mature-age partnered women targeted by the reforms. We also find large negative effects on welfare receipt of their partners, suggesting family labor supply decisions were considerably affected.
The GLO Discussion Paper of the Month of August demonstrates how to use administrative data to estimate the number of deaths, the number of infections, and mortality rates from Covid-19 in Lombardia, the hot spot of the disease in Italy and Europe.
Author Abstract: In this paper I use administrative data to estimate the number of deaths, the number of infections, and mortality rates from Covid-19 in Lombardia, the hot spot of the disease in Italy and Europe. The information is relevant for the policy maker, to make decisions, and for the public, to adopt appropriate behaviors. As the available data suffer from sample selection bias I use partial identification to derive these quantities. Partial identification combines assumptions with the data to deliver a set of admissible values, or bounds. Stronger assumptions yield stronger conclusions, but decrease the credibility of the inference. Therefore, I start with assumptions that are always satisfied, then I impose increasingly more restrictive assumptions. Using my preferred bounds, during March 2020 in Lombardia there were between 10,000 and 18,500 more deaths than before 2020. The narrowest bounds of mortality rates from Covid-19 are between 0.1% and 7.5%, much smaller than the 17.5% discussed for long time. This finding suggests that the case of Lombardia may not be as special as some argue.
GLO DP Team Senior Editors: Matloob Piracha (University of Kent) & GLO; Klaus F. Zimmermann (UNU-MERIT, Maastricht University and Bonn University). Managing Editor: Magdalena Ulceluse, University of Groningen. DP@glabor.org
Posted inUncategorized|Comments Off on GLO Discussion Paper of the Month on ‘True Covid-19 mortality rates from administrative data’ authored by GLO Fellow Domenico Depalo & all GLO DPs of August.
A new GLO Discussion Paperusing data for Germany finds that negative emotions are statistically and significantly associated with the respondent’s immigration concerns.
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: Despite being a regular suspect, a causal role of residents’ emotions in predicting their opposition to international immigration has not been investigated. Using the individual-level panel data from Germany, we study the impact of the individual’s experience of negative emotions (sadness, fear, and anger) on immigration concerns and bridge this gap in the literature. After controlling for person fixed effects and a battery of individual-level and macroeconomic controls, we find that negative emotions are statistically and significantly associated with the respondent’s immigration concerns. The association holds for male as well as female respondents. To estimate the causal effects of negative emotions, we exploit the exogenous variation in negative emotions induced by the death of a parent or the change in averages of daily temperature and employ IV fixed effects regressions. Our findings suggest that, while within-person changes in the respondent’s feelings of anger affect immigration concerns among all respondents, the feelings of sadness and fear affect immigration concerns only among females. The impact of sadness and fear is more forceful among females who are not always-working during the sample period, older in age, and rarely use online social media.
The successful candidate will undertake econometric analysis to explore regional inequalities in health in the UK using detailed biomarker data available in a large national representative social science datasets. Contact: GLO Fellow Apostolos Davillas.
A new GLO Discussion Paperfinds for Portugal that workers’ earnings and employment are significantly negatively affected by China’s competition, but only through the indirect ’market-stealing’ channel. In contrast to earlier evidence, the direct effects of Chinese imports are mostly non-significant.
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: The increasing range and quality of China’s exports is a major development internationally with potentially far-reaching effects. In this paper, on top of the direct labor market effects of imports from China studied in previous research, we also measure the indirect effects stemming from increased export competition in third markets. Our findings, based on matched employer-employee data of Portugal covering the 1991-2008 period, indicate that workers’ earnings and employment are significantly negatively affected by China’s competition, but only through the indirect ’market-stealing’ channel. In contrast to earlier evidence, the direct effects of Chinese imports are mostly non-significant. The results are robust to a number of checks and also highlight particular groups more affected by indirect competition, including women, older and less educated workers, and workers in larger, older and domestic firms.
Posted inNews, Research|Comments Off on Labor Market Effects of Competing with China – at Home and Abroad. Not much of an issue for the Portuguese economy.
DP of the Month August
