Klaus F. Zimmermann

A new GLO Discussion Paper provides first evidence that race does affect COVID-19 outcomes in the US. A heterogeneity analysis reveals that the main channels of transmission are socioeconomic status and household 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. 603, 2020

COVID-19, Race, and Redlining – Download PDF
by Bertocchi, Graziella & Dimico, Arcangelo

GLO Fellows Graziella Bertocchi & Arcangelo Dimico

Author Abstract: Discussion on the disproportionate impact of COVID-19 on African Americans has been at center stage since the outbreak of the epidemic in the United States. To present day, however, lack of race-disaggregated individual data has prevented a rigorous assessment of the extent of this phenomenon and the reasons why blacks may be particularly vulnerable to the disease. Using individual and georeferenced death data collected daily by the Cook County Medical Examiner, we provide first evidence that race does affect COVID-19 outcomes. The data confirm that in Cook County blacks are overrepresented in terms of COVID-19 related deaths since|as of June 16, 2020|they constitute 35 percent of the dead, so that they are dying at a rate 1.3 times higher than their population share. Furthermore, by combining the spatial distribution of mortality with the 1930s redlining maps for the Chicago area, we obtain a block group level panel dataset of weekly deaths over the period January 1, 2020-June 16, 2020, over which we establish that, after the outbreak of the epidemic, historically lower-graded neighborhoods display a sharper increase in mortality, driven by blacks, while no pre-treatment differences are detected. Thus, we uncover a persistence influence of the racial segregation induced by the discriminatory lending practices of the 1930s, by way of a diminished resilience of the black population to the shock represented by the COVID-19 outbreak. A heterogeneity analysis reveals that the main channels of transmission are socioeconomic status and household composition, whose influence is magnified in combination with a higher black share.

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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 effects of grade retention in school on later labor market success. For occupations where on-the-job training is important, job candidates with a record of grade retention are less likely to receive a positive reaction on job applications.

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. 598, 2020

A Signal of (Train)ability? Grade Repetition and Hiring Chances – Download PDF
by Baert, Stijn & Picchio, Matteo

GLO Fellows Stijn Baert & Matteo Picchio

Author Abstract: This article contributes to the nascent literature on the effect of grade retention in school on later labour market success. A field experiment is conducted to rule out the endogeneity of both outcomes. More concretely, various treatments of grade retention are randomly assigned to fictitious résumés sent in application to real vacancies. Overall, grade retention does not significantly affect positive call-back by employers. However, when narrowing in on vacancies for occupations where on-the-job training is important, job candidates with a record of grade retention are 16% less likely to receive a positive reaction. This finding is consistent with Queuing theory.

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 surveys the emerging and rapidly growing literature on the economic consequences of COVID-19 and governmental responses, and attempts to synthetize the insights emerging from a very large number of studies.

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. 602, 2020

Wage Losses and Inequality in Developing Countries: labor market and distributional consequences of Covid-19 lockdowns in Turkey – Download PDF

GLO Fellow Anil Duman

Author Abstract: We develop a possibility to work index (PWI) taking the ability to work from home and workplace closures into account. By using the data from the HLFS in Turkey, we examine the individual level determinants of PWI. Our findings reveal that PWI and ability to work from home are significantly different, and essential or closed jobs are not necessarily concentrated at the bottom of the wage distribution. Therefore, from a policy perspective, PWI can be a more encompassing measure of risk and can assist the public authorities to design better targeted social policies. Our results also point out that wage inequality is likely to deteriorate as a result of the supply shocks from confinement policies. However, the overall negative distributional effects of lockdown and disparity between employees in different economic activities become more substantial with duration. These suggest that in order to avoid major increases in earning inequalities and related social problems, governments would be better off with shorter and stricter lockdowns.

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Featured image: Photo-by–fusion-medical-animation-on-Unsplash

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 assesses whether students respond to messages about majoring in Economics, and whether this response varies by student gender. While males respond positively, there are no significant effects for female students.

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. 597, 2020

Promoting Female Interest in Economics: Limits to Nudges – Download PDF
by Pugatch, Todd & Schroeder, Elizabeth

GLO Fellow Todd Pugatch

Author Abstract: Why is the proportion of women who study Economics so low? This study assesses whether students respond to messages about majoring in Economics, and whether this response varies by student gender. We conducted an experiment among more than 2,000 students enrolled in Economics Principles courses, with interventions proceeding in two phases. In the first phase, randomly assigned students received a message with basic information about the Economics major, or the basic message combined with an emphasis on the rewarding careers or financial returns associated with the major. A control group received no such messages. In the second phase, all students receiving a grade of B- or better received a message after the course ended encouraging them to major in Economics. For a randomly chosen subset of these students, the message also encouraged them to persist in Economics even if their grade was disappointing. The basic message increased the proportion of male students majoring in Economics by 2 percentage points, equivalent to the control mean. We find no significant effects for female students. Extrapolating to the full sample, the basic message would nearly double the male/female ratio among Economics majors. Our results suggest the limits of light-touch interventions to promote diversity in Economics.

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 surveys the emerging and rapidly growing literature on the economic consequences of COVID-19 and governmental responses, and attempts to synthetize the insights emerging from a very large number of studies.

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. 601, 2020

A Literature Review of the Economics of COVID-19 – Download PDF
by Brodeur, Abel & Gray, David & Islam, Anik & Bhuiyan, Suraiya Jabeen

GLO Fellow Abel Brodeur

Author Abstract: The goal of this piece is to survey the emerging and rapidly growing literature on the economic consequences of COVID-19 and governmental responses, and to synthetize the insights emerging from a very large number of studies. This survey (i) provides an overview of the data sets used to measure social distancing and COVID-19 cases and deaths; (ii) reviews the literature on the determinants of compliance and effectiveness of social distancing; (iii) summarizes the literature on the socio-economic consequences of COVID-19 and governmental interventions, focusing on labor, health, gender, discrimination and environmental aspects; and (iv) discusses policy proposals.

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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 provides worldwide evidence that poor labor market conditions as proxied by unemployment and involuntary part-time employment are associated with lower ‘subjective well-being efficiency,’ while social support, freedom, and the rule of law improve it.

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. 596, 2020

Sometimes your best just ain’t good enough: The worldwide evidence on subjective well-being efficiency – Download PDF
by Nikolova, Milena & Popova, Olga

GLO Fellows Milena Nikolova & Olga Popova

Author Abstract: Most of the studies on subjective well-being focus on the determinants of absolute life satisfaction or happiness levels. This paper asks an important but understudied question, namely, could countries achieve the same or even higher subjective well-being by using the same resources more efficiently? We provide the first country panel evidence on whether nations efficiently transform their endowments (income, education, and health) into subjective well- being and which factors influence the conversion efficiency. Using data on 91 countries from 2009-2014, we find that that well-being efficiency gains are possible worldwide. We show that poor labor market conditions as proxied by unemployment and involuntary part-time employment are associated with lower ‘subjective well-being efficiency,’ while social support, freedom, and the rule of law improve it. These findings are useful to policymakers in helping identify inefficiencies, reducing wasteful resource use, and developing policies that promote sustainable development and human well-being. Our results are robust to a battery of sensitivity checks and raise policy-relevant questions about the appropriate instruments to improve subjective well-being efficiency.

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 elaborates China’s consequential and ongoing economic demography transition strategy within the economic and development policy discourse.

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. 593, 2020

China’s Economic Demography Transition Strategy: A Population Weighted Approach to the Economy and Policy – Download PDF
by Johnston, Lauren A.

GLO Fellow Lauren A. Johnston

Author Abstract: The first pandemic of the 21st century has brought Pyrrhic attention to one of the era’s greatest megatrends – population ageing. Today rich countries are disproportionately affected but increasingly the world’s elderly are residents of developing countries. In rich and poor countries alike, a policy approach that explicitly accounts for the interdependence of economic and demographic change – an economic demography transition approach – has never been more pressing. Thanks partly to the tragedy of history’s greatest Malthusian stagnation, that of mid-20th century China, Chinese policymakers implemented draconian population control measures alongside dramatic economic reforms from around 1980. This paper elaborates China’s consequential and ongoing economic demography transition strategy within the economic and development policy discourse. Amid epochal demographic, public health, and geo-economic change, this economic demography perspective is timely, unique and useful in extrapolation across all economies.

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 finds that the contribution of childhood circumstances to health inequality is larger in the USA than in China for self-rated health, mental health, and physical health.

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. 594, 2020

Childhood Circumstances and Health Inequality in Old Age: Comparative Evidence from China and the United States – Download PDF
by Chen, Xi & Yan, Binjian & Gill, Thomas M.

GLO Fellow Xi Chen

Author Abstract: This paper estimates the extent to which childhood circumstances contribute to health inequality in old age and evaluates the importance of major domains of childhood circumstances to health inequalities in the USA and China. We link two waves of the China Health and Retirement Longitudinal Study (CHARLS) in 2013 and 2015 with the newly released 2014 Life History Survey (LHS), and two waves of the Health and Retirement Study (HRS) in 2014 and 2016 with the newly released 2015 Life History Mail Survey (LHMS) in the USA, to quantify health inequality due to childhood circumstances for which they have little control. Using the Shapley value decomposition approach, we show that childhood circumstances may explain 7-16 percent and 14-30 percent of health inequality in old age in China and the USA, respectively. Specifically, the contribution of childhood circumstances to health inequality is larger in the USA than in China for self-rated health, mental health, and physical health. Examining domains of childhood circumstance, regional and rural/urban status contribute more to health inequality in China, while family socioeconomic status (SES) contributes more to health inequality in the USA. Our findings support the value of a life course approach in identifying the key determinants of health in old age. Distinguishing sources of health inequality and rectifying inequality due to early childhood circumstances should be the basis of policy promoting health equity.

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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