Klaus F. Zimmermann

A new GLO Discussion Paper investigates the spatial spillover effect of inward FDI on the rural-urban wage inequality. It finds that inward FDI should not be blamed for the exacerbation of rural-urban wage 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. 522, 2020

A spatial analysis of inward FDI and rural-urban wage inequality: Evidence from China – Download PDF
by Wang, Hao & Fidrmuc, Jan & Luo, Qi

GLO Fellow Jan Fidrmuc

Author Abstract: When investigating the relationship between inward FDI and rural-urban inequality, previous studies overlook the inter-regional interactions. Building on the literature that highlights the significant role of rural-urban migration in inequality, this article investigates spatial spillover effect of inward FDI on the rural-urban wage inequality by utilizing the Spatial Durbin Model (SDM) both in the short run and long run. In particular, we carefully consider the heterogeneity of inward FDI and categorize it with respect to entry modes and sectoral distribution. On the basis of a panel dataset covering 30 provinces in China from 2000 to 2016, our results show that overall the inward FDI should not be blamed for the exacerbation of rural-urban wage inequality. We do not find significant relationship between inward FDI in secondary and tertiary sector while the FDI in primary sector has a slight negative effect. When we separate the FDI according to entry modes, we find that WFE is shown to have a negative effect on the rural-urban wage inequality and this effect is more pronounced in the long run when we conduct a period average estimation. This change also similarly applies to the equity joint ventures.

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 proclaimed competition for the world’s leadership in science, technology and innovation between China and the USA.

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. 521, 2020

The technological contest between China and the United States – Download PDF
by Toro Hardy, Alfredo

GLO Fellow Alfredo Toro Hardy

Author Abstract: China’s proclaimed aim of becoming the world’s leader in science, technology and innovation by the mid twenty first century has triggered an intense competition with the United States. The latter, feeling threatened in its supremacy in this field, has reacted forcefully. This GLO Discussion Paper examines the nature of this contest, the comparative technological standing of both countries, the pros and cons in this area derived from their respective development models and the plausible outcomes of this competition.

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 documents the pessimistic career expectations people currently have due to the corinavirus crisis on the basis of a new survey for Belgium.

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. 520, 2020

How do we think the COVID-19 crisis will affect our careers (if any remain)? – Download PDF
by Baert, Stijn & Lippens, Louis & Moens, Eline & Sterkens, Philippe & Weytjens, Johannes

GLO Fellow Stijn Baert

Author Abstract: This study is the first in the world to investigate the expected impact of the COVID-19 crisis on career outcomes and career aspirations. To this end, highquality survey research with a relevant panel of Belgian employees was conducted. About 21% of them fear losing their jobs due to the crisis—14% are concerned that they will even lose their jobs in the near future. In addition, 26% expect to miss out on promotions that they would have received had the COVID-19 crisis not occurred. This fear of a negative impact is higher in vulnerable groups, such migrants. In addition, we observe that many panel members believe they will look at the labour market differently and will have different work-related priorities in the future. In this respect, more than half of the panel members indicate that they have attached more importance to working conditions and work-life balance since the COVID-19 crisis.

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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Incomes in surveys suffer from various measurement problems. A new GLO Discussion Paper finds that the main source of negative disposable incomes is negative self-employment income.

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. 519, 2020

Bottom incomes and the measurement of poverty and inequality – Download PDF
by Hlasny, Vladimir & Ceriani, Lidia & Verme, Paolo

GLO Fellow Paolo Verme

Author Abstract: Incomes in surveys suffer from various measurement problems, most notably in the tails of their distributions. We study the prevalence of negative and zero incomes, and their implications for inequality and poverty measurement relying on 57 harmonized surveys covering 12 countries over the period 1995-2016. The paper explains the composition and sources of negative and zero incomes and assesses the distributional impacts of alternative correction methods on poverty and inequality measures. It finds that the main source of negative disposable incomes is negative self-employment income, and that high tax, social security withholdings and high self-paid social-security contributions account for negative incomes in some countries. Using detailed information on expenditure, we conclude that households with negative incomes are typically as well off as, or even better, than other households in terms of material wellbeing. By contrast, zero-income households are found to be materially deprived. Adjusting poverty and inequality measures for these findings can alter these measures significantly.

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 reveals that countries with lower population growth introduce automation technologies faster.

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. 518, 2020

Automation and Demographic Change – Download PDF
by Abeliansky, Ana Lucia & Prettner, Klaus

GLO Fellow Klaus Prettner

Author Abstract: We analyze the effects of declining population growth on automation. Theoretical considerations imply that countries with lower population growth introduce automation technologies faster. We test the theoretical implication on panel data for 60 countries over the time span 1993-2013. Regression estimates support the theoretical implication, suggesting that a 1% increase in population growth is associated with an approximately 2% reduction in the growth rate of robot density. Our results are robust to the inclusion of standard control variables, different estimation methods, dynamic specifications, and changes with respect to the measurement of the stock of robots.

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 reveals that observed income inequality in the access to health care is driven by the fact that higher-income people tend to make greater use of healthcare treatment, for any given health and disability status.

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. 517, 2020

Biomarkers, disability and health care demand – Download PDF
by Davillas, Apostolos & Pudney, Stephen

GLO Fellow Apostolos Davillas

Author Abstract: Using longitudinal data from a representative UK panel, we focus on a group of apparently healthy individuals with no history of disability or major chronic health condition at baseline. A latent variable structural equation model is used to analyse the predictive role of latent baseline biological health, indicated by a rich set of biomarkers, and other personal characteristics, in determining the individual’s disability state and health service utilisation five years later. We find that baseline health affects future health service utilisation very strongly, via functional disability as a mediating outcome. Our model reveals that observed income inequality in the access to health care, is driven by the fact that higher-income people tend to make greater use of healthcare treatment, for any given health and disability status. This leads to a slight rise in utilisation with income, despite the lower average need for treatment shown by the negative income gradients for both baseline health and disability outcomes. Factor loadings for latent baseline health show that a broader set of blood-based biomarkers, rather than the current focus mainly on blood pressure, cholesterol and adiposity, may need to be considered for public health screening programs.

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 defends the quality of key available coronavirus data: The cross-country correlation between log of tests and log of reported cases (per capita) and the correlation between log of reported cases and log of reported deaths (per capita) are high. It suggests that currently the infection rate in no country is higher than 10% and the fatality rate is at least 0.4%.

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. 516, 2020

Confronting COVID-19 Myths: Morbidity and Mortality – Download PDF
by Jelnov, Pavel

GLO Fellow Pavel Jelnov

Author Abstract: COVID-19 mystery feeds the belief that the reported morbidity rates are not related to the true ones and that large parts of the population are already infected, the virus is not very dangerous, and the lockdown is unnecessary. Yet one observes two very strong correlations that disprove this belief. The cross-country correlation between log of tests and log of reported cases (per capita) is 0.87 and the correlation between log of reported cases and log of reported deaths (per capita) is 0.89. Using these correlations, I suggest that the infection rate in no country is higher than 10%. Furthermore, I suggest that the mortality from COVID-19 is at least 0.4%.

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.

Further activities and reports of the GLO Research Cluster on the coronavirus.

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A new GLO Discussion Paper presents a theoretical conceptualization of the data economy: Knowledge extraction from large, inter-connected data sets displays natural monopoly characteristics that generate and disclose the amount of knowledge that maximizes their profit. Provided that monopoly theory holds, this level of knowledge is below the socially desirable amount.

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. 515, 2020

The Semicircular Flow of the Data Economy and the Data Sharing Laffer curve – Download PDF
by de Pedraza, Pablo & Vollbracht, Ian

GLO Fellow Pablo de Pedraza

Featured image: Photo by Mika Baumeister on Unsplash

Author Abstract: This paper presents a theoretical conceptualization of the data economy that motivates more access to data for scientific research. It defines the semicircular flow of the data economy as analogous to the traditional circular flow of the economy. Knowledge extraction from large, inter-connected data sets displays natural monopoly characteristics, which favors the emergence of oligopolistic data holders that generate and disclose the amount of knowledge that maximizes their profit. If monopoly theory holds, this level of knowledge is below the socially desirable amount because data holders have incentives to maintain their market power. The analogy is further developed to include data leakages, data sharing policies, merit and demerit knowledge, and knowledge injections. It draws a data sharing Laffer curve that defines optimal data sharing as the point where the production of merit knowledge is maximized. The theoretical framework seems to describe many features of the data-intensive economy of today, in which large-scale data holders specialize in extraction of knowledge from the data they hold. Conclusions support the use of policies to enhance data sharing and, or, enhanced user-centric data property rights to facilitate data flows in a manner that would increase merit knowledge generation up to the socially desirable amount.

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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