Feeling Richer and Happier? Self-Perceived Economic Welfare and Life Satisfaction: Evidence of ‘Easterlin Paradox’ from Russian Longitudinal Data

A new GLO Discussion Paper suggests that a society with high income inequality, in which a small proportion of the population earns a large proportion of society’s income, will have lower collective life 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. 625, 2020

Feeling Richer and Happier? Self-Perceived Economic Welfare and Life Satisfaction: Evidence of ‘Easterlin Paradox’ from Russian Longitudinal DataDownload PDF

by Jin, Olivia S. & Wunnava, Phanindra V.

GLO Fellow Phanindra V. Wunnava

Author Abstract: This study investigates why the strong form of the spatial equilibrium is weakly supported in the literature. Using a discrete choice model, it shows that the strong form of the spatial equilibrium is rarely observed because workers are imperfectly mobile from the perspective of researchers. Incorporating the discrete choice model, a Markov chain is used to model the spatial dynamics of the population distribution. For a given location choice set, the population distribution is shown to converge to a unique spatial steady state. Microdata from the American Community Survey show that the model assumption is reasonable and support the model predictions.

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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Jobs Cronyism in Public-Sector Firms

A new GLO Discussion Paper finds for Portugal that public-sector appointments increase significantly over the months just after elections but only if the new government is of a different political color than its predecessor suggesting a misallocation of public resources.

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. 624, 2020

Jobs Cronyism in Public-Sector FirmsDownload PDF
by
Martins, Pedro S.

GLO Fellow Pedro S. Martins

Author Abstract: Politicians can use the public sector to give jobs to cronies, at the expense of the efficiency of those organizations and general welfare. In this paper, we regress monthly hires across all firms in Portugal with some degree of public ownership on the country’s 1980-2018 political cycle. We find that public-sector appointments increase significantly over the months just after elections but only if the new government is of a different political color than its predecessor. These results are consistent with a simple model of cronyism and hold in multiple robustness checks. Overall, we find our evidence to be consistent with politically-induced misallocation of public resources.

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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NOW ONLINE free access: COVID-19 outbreak, social response, and early economic effects: a global VAR analysis of cross-country interdependencies

A new paper published in the Journal of Population Economics shows that social networks help explain not only the spread of the disease but also cross-country spillovers in perceptions about coronavirus risk and in social distancing behavior.

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COVID-19 outbreak, social response, and early economic effects: a global VAR analysis of cross-country interdependencies

Journal of Population Economics (2021) 34, Issue 1: FORTHCOMING
FREE ONLINE READLINK

GLO Fellow Fabio Milani

GLO Discussion Paper 2020

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

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Weathering the storm: weather shocks and international labor migration from the Philippines

A new paper published in the Journal of Population Economics finds that Filipinos are more likely to work abroad when they experience less-intense tropical cyclones and storm warnings but are more likely to stay when very intense storms occur or are forecasted.

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Weathering the storm: weather shocks and international labor migration from the Philippines

Marjorie C. Pajaron & Glacer Niño A. Vasquez

Journal of Population Economics (2020) 33, Issue 4: 1419-1461
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GLO Fellow Marjorie C. Pajaron & GLO Affiliate Glacer Niño A. Vasquez

Author Abstract: The environmental migration literature presents conflicting results: While some research finds that natural disasters induce international migration, other work discovers a dampening effect. We construct an innovative longitudinal provincial dataset for the Philippines, a country prone to natural disasters and a major exporter of labor. Using a comprehensive list of weather shocks, it is possible to identify major channels behind those conflicting findings. Filipinos are more likely to work abroad when they experience less-intense tropical cyclones and storm warnings but are more likely to stay when very intense storms occur or are forecasted.

GLO Discussion Paper No. 460, 2020

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

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Prenatal exposure to temperature extremes and birth outcomes

A new paper published in the Journal of Population Economics finds substantial heterogeneity in the effects of extreme temperature exposure on birth outcomes. In particular, prenatal exposure to heat waves has stronger negative effects than exposure to cold spells on surviving births.

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The effects of prenatal exposure to temperature extremes on birth outcomes: the case of China

Xi Chen, Chih Ming Tan, Xiaobo Zhang & Xin Zhang

Journal of Population Economics (2020) 33, Issue 4: 1263-1302
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GLO Fellow Xi Chen

Author Abstract: This paper investigates the effects of prenatal exposure to extreme temperatures on birth outcomes—specifically, the log of birth weight and an indicator for low birth weight—using a nationally representative dataset on rural China. During the time period we examine (1991–2000), indoor air conditioning was not widely available and migration was limited, allowing us to address identification issues endemic in the climate change literature related to adaptation and location sorting. We find substantial heterogeneity in the effects of extreme temperature exposure on birth outcomes. In particular, prenatal exposure to heat waves has stronger negative effects than exposure to cold spells on surviving births.

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

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Why is fertility on the rise in Egypt?

A new paper published in the Journal of Population Economics indicates that the decrease in public sector employment, which is particularly appealing to women, may have contributed to the recent rise in fertility in Egypt.

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Why is fertility on the rise in Egypt? The role of women’s employment opportunities

Caroline Krafft

Journal of Population Economics (2020) 33, Issue 4: 1173-1218
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GLO Fellow Caroline Krafft

Author Abstract: Can declining employment opportunities for women reverse the fertility transition? This paper presents evidence that the demographic transition has not just stalled but in fact reversed in Egypt. After falling for decades, fertility rates increased. The paper examines the drivers of rising fertility rates, with a particular focus on the role of declining public sector employment opportunities for women. Estimates show the effect of public sector employment on the spacing and occurrence of births using discrete-time hazard models. The paper then uses the results to simulate total fertility rates. The models address the potential endogeneity of employment by incorporating woman-specific fixed effects, incorporating local employment opportunities rather than women’s own employment, and using local employment opportunities as an instrument. Results indicate that the decrease in public sector employment, which is particularly appealing to women, may have contributed to the rise in fertility but is unlikely to be its main cause.

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

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Beauty and job accessibility in China.

A new paper published in the Journal of Population Economics confirms a direct causal relationship between appearance and employment in China.

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Beauty and job accessibility: new evidence from a field experiment

Weiguang Deng, Dayang Li & Dong Zhou

Journal of Population Economics (2020) 33, Issue 4: 1303-1341
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GLO Fellow Weiguang Deng and GLO Affiliate Dayang Li

Author Abstract: This study uses a field experiment to resolve the difficulties of quantifying personal appearance and identify a direct causal relationship between appearance and employment in China. The experiment reveals that taste-based pure appearance discrimination exists at the pre-interview stage. There are significant gender-specific heterogeneous effects of education on appearance discrimination: having better educational credentials reduces appearance discrimination among men but not among women. Moreover, attributes of the labor market, companies, and vacancies matter. Beauty premiums are larger in big cities with higher concentrations of women and in male-focused research positions. Similarly, the beauty premium is larger for vacancies with higher remuneration.

The paper has been GLO Discussion Paper No. 369, 2020.

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

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The incapacitation effect of schooling on Roma women.

A new paper published in the Journal of Population Economics finds that raising the school leaving age can be effective in reducing the incidence of teenage pregnancy among socially excluded women, even if it does not affect the general population. An important policy implication is the potentially heterogeneous impact of educational interventions across different ethnic groups.

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Books or babies? The incapacitation effect of schooling on minority women

Anna Adamecz-Völgyi & Ágota Scharle

Journal of Population Economics (2020) 33, Issue 4: 1219-1261
OPEN ACCESS

Author Abstract: This paper examines the effects of an increase in the compulsory school leaving age on the teenage fertility of Roma women, a disadvantaged ethnic minority in Hungary. We use a regression discontinuity design identification strategy and show that the reform decreased the probability of teenage motherhood among Roma women by 13.4–26.0% and delayed motherhood by 2 years. We separate the incapacitation and human capital effects of education on fertility by exploiting a database that covers live births, miscarriages, abortions, and still births and contains information on the time of conception. We find that longer schooling decreases the probability of getting pregnant during the school year but not during summer and Christmas breaks, which suggests that the estimated effects are generated mostly through the incapacitation channel.

The paper has been GLO Discussion Paper No. 474, 2020.

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

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REMINDER: Deadline for Applications: August 20, 2020 for the 2020-21 GLO Virtual Young Scholars Program (GLO VirtYS)

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Risk aversion and the willingness to migrate in 30 transition countries.

A new paper published in the Journal of Population Economics finds that risk aversion has a robust and statistically significant negative impact on willingness to migrate within countries as well as abroad.

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Risk aversion and the willingness to migrate in 30 transition countries

Peter Huber & Klaus Nowotny

Journal of Population Economics (2020) 33, Issue 4: 1463-1498
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Author Abstract: This paper uses individual-level data covering 30 transition countries that account for over one-quarter of the worldwide immigrant stock to assess the impact of risk aversion on willingness to migrate. It extends the previous literature by allowing the effect of risk aversion to depend on the level of risk in the sending country. Consistent with theories of individual-level migration decisions, we find that risk aversion has a robust and statistically significant negative impact on willingness to migrate within countries as well as abroad. As predicted by theory, this impact is robustly less negative in riskier sending countries. Furthermore, this negative impact is significantly larger for willingness to migrate abroad than willingness to migrate internally. We also find that, even after controlling for an extensive set of control variables, willingness to migrate internally and abroad are highly correlated. This suggests that internal and international mobility decisions are closely linked.

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

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