Klaus F. Zimmermann

A new GLO Discussion Paper using data for Belgium finds not only that first-generation immigrants face a substantial employment penalty in comparison to their native counterparts, but also that their descendants continue to face serious difficulties in accessing the labor market.

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. 485, 2020

A Broken Social Elevator? Employment Outcomes of First- and Second-generation Immigrants in Belgium – Download PDF
by Piton, Céline & Rycx, François

GLO Fellow François Rycx

Author Abstract: This paper provides a comprehensive quantitative assessment of the employment performance of first- and second-generation immigrants in Belgium compared to that of natives. Using detailed quarterly data for the period 2008-2014, we find not only that first-generation immigrants face a substantial employment penalty (up to -36% points) vis-à-vis their native counterparts, but also that their descendants continue to face serious difficulties in accessing the labour market. The social elevator appears to be broken for descendants of two non-EU-born immigrants. Immigrant women are also found to be particularly affected. Among the key drivers of access to employment, we find: i) education for the descendants of non-EU-born immigrants, and ii) proficiency in the host country language, citizenship acquisition, and (to a lesser extent) duration of residence for first-generation immigrants. Finally, estimates suggest that around a decade is needed for the employment gap between refugees and other foreign-born workers to be (largely) suppressed.

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 innovates in being one of the first to explore the relative empirical importance of dominant (theoretical) explanations for hiring discrimination against transgender men.

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. 484, 2020

What Does Someone’s Gender Identity Signal to Employers? – Download PDF
by Van Borm, Hannah & Dhoop, Marlot & Van Acker, Allien & Baert, Stijn

GLO Fellow Stijn Baert

Author Abstract: Purpose- The purpose of this paper is to explore the mechanisms underlying hiring discrimination against transgender men. Design/methodology/approach – The authors conduct a scenario experiment with final-year business students in which fictitious hiring decisions are made about transgender or cisgender male job candidates. More importantly, these candidates are scored on statements related to theoretical reasons for hiring discrimination given in the literature. The resulting data are analysed using a bivariate analysis. Additionally, a multiple mediation model is run. Findings – Suggestive evidence is found for co-worker and customer taste-based discrimination, but not for employer taste-based discrimination. In addition, results show that transgender men are perceived as being in worse health, being more autonomous and assertive, and have a lower probability to go on parental leave, compared with cisgender men, revealing evidence for (positive and negative) statistical discrimination. Social implications – Targeted policy measures are needed given the substantial labour market discrimination against transgender individuals measured in former studies. However, to combat this discrimination effectively, one needs to understand its underlying mechanisms. This study provides the first comprehensive exploration of these mechanisms. Originality/value – This study innovates in being one of the first to explore the relative empirical importance of dominant (theoretical) explanations for hiring discrimination against transgender men. Thereby, the authors take the logical next step in the literature on labour market discrimination against transgender individuals.

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 is the first to estimate automation risk rates for developing countries. It finds that occupations containing relatively more routine tasks are more likely to be automated, while workers with a higher level of education reduce their risks.

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. 483, 2020

The Future of Work in Developing Economies: What can we learn from the South? – Download PDF
by Egana del Sol, Pablo

GLO Fellow Pablo Egana del Sol

Author Abstract: In recent years, there has been an escalation of concern revolving around the effect that automation will have on the future of work. This anxiety has fueled the public and academic debate, fearing that soon this technology will displace jobs at a large scale. Numerous studies have begun to investigate automation’s impact on labor markets, although all have focused on industrialized nations, which consist of more service and skilled occupations. Utilizing the World Bank’s STEP Skills Measurement Program Database, we examine automation’s effect on 10 developing countries throughout Latin America, Africa, and Asia. To address the heterogeneity of occupations across the country, we apply a task-based approach and re-calibrate the effect of automation on labor market while analyzing the task structure across countries. Modeling off previous studies, we created an expectation-maximization algorithm to predict the percentage of tasks that are likely to be automated. Jobs whose task automation output was 70% or higher were then considered to be highly automatable. Our results suggest that these developing countries have higher levels of predicted automation risk. Countries range in their level of highly automatable jobs from the lowest being Yunnan -a Chinese province- with 7.7% to the highest of Ghana with 42.4%. We find that occupations containing relatively more routine tasks are more likely to be automated, while workers with a higher level of education reduce their risks. This is the first paper to estimate automation risk rates for developing nations.

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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What is the impact of performance feedback provision and peer effects on individuals’ performance? A new GLO Discussion Paper reviews the mechanisms behind peer effects which include conformism, social pressure, rivalry, social learning and distributional preferences, depending on the presence of payoff externalities or technological and organizational externalities.

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. 482, 2020

Performance Feedback and Peer Effects – Download PDF
by Villeval, Marie Claire

GLO Fellow Marie Claire Villeval

Author Abstract: This paper reviews studies conducted in naturally-occurring work environments or in the laboratory on the impact of performance feedback provision and peer effects on individuals’ performance. First, it discusses to which extent feedback on absolute performance affects individuals’ effort for cognitive or motivational reasons, and how evaluations can be distorted strategically. Second, this paper highlights the positive and negative effects of feedback on relative performance and rank on individuals’ productivity and persistence, but also on the occurrence of anti-social behavior. Relative feedback stimulates effort by informing on the marginal return or the marginal cost of effort, and by activating behavioral forces even in the absence of monetary incentives. These behavioral mechanisms relate to self-esteem, status concerns, competitive preferences and social learning. Relative feedback sometimes discourages or distorts effort, notably if people collude or are disappointment averse. In addition to incentive schemes and social preferences, the management of self-confidence affects the way relative feedback impacts productivity. Third, the paper addresses the question of the identification of peer effects on employees’ performance, their size, their direction and their heterogeneity along the hierarchy. The mechanisms behind peer effects include conformism, social pressure, rivalry, social learning and distributional preferences, depending on the presence of payoff externalities or technological and organizational externalities.

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 paper published in the Journal of Population Economics shows that papal visits in Italy lead to increased church attendance and a decline in abortions that is greater when the Pope mentions abortion in his speeches.

Read more in:

Egidio Farina, & Vikram Pathania:
Papal visits and abortions: evidence from Italy
OPEN ACCESS; published online. Forthcoming Journal of Population Economics (2020), Issue 3.
Download PDF

GLO Fellow Egidio Farina

Author Abstract: We investigate the impact of papal visits to Italian provinces on abortions from 1979 to 2012. Using administrative data, we find a 10–20% decrease in the number of abortions that commences in the 3rd month and persists until the 14th month after the visits. However, we find no significant change in the number of live births. A decline in unintended pregnancies best explains our results. Papal visits generate intense local media coverage, and likely make salient the Catholic Church’s stance against abortions. We show that papal visits lead to increased church attendance, and that the decline in abortions is greater when the Pope mentions abortion in his speeches.

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A new GLO Discussion Paper finds that the academic advantage of children of Asian immigrants is mainly attributable to more time investments in educational activities or favorable initial cognitive abilities and not to socio-demographics or parenting styles.

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. 481, 2020

Ethnicity differentials in academic achievements: The role of time investments – Download PDF
by Nguyen, Ha Trong & Connelly, Luke B. & Le, Huong Thu & Mitrou, Francis & Taylor, Catherine L. & Zubrick, Stephen R.

GLO Fellows Ha Nguyen & Luke Connelly

Author Abstract: This paper evaluates the impact on the transition to work of a policy reform in Belgium that restricted the access to a specific unemployment insurance scheme for young labor market entrants. This scheme entitles youths with no or little labor market experience to unemployment benefits after a waiting period of one year. As of 2015, the Belgian government unexpectedly scrapped benefit eligibility for youths who start the waiting period at the age of 24 or older. The reform implied a change from an inclining to a flat rate (zero-level) benefit profile. We use a difference-in-differences approach to identify the causal impact of this reform on fresh university graduates. Our main finding is that this reform only increases the transition to very short-lived jobs.

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 no significant relationship between Protestant missions and the development of democracy.

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. 480, 2020

Conversionary Protestants do not cause democracy – Download PDF
by Nikolova, Elena & Polansky, Jakub

GLO Fellow Elena Nikolova

Author Abstract: In “The Missionary Roots of Liberal Democracy”, Robert D. Woodberry (2012) claims that the emergence of stable democracies around the world was influenced by conversionary Protestantism. While Woodberry’s historical analysis is exhaustive, the accompanying empirical evidence suffers from severe inconsistencies. We replicate Woodberry’s analysis using 26 alternative democracy measures and extend the time period over which the democracy measures are averaged. These two simple modifications lead to the breakdown of Woodberry’s results. We find no significant relationship between Protestant missions and the development of democracy, which raises concerns about the robustness and broader applicability of Woodberry’s findings. We discuss some alternative explanations for Woodberry’s results which we hope can inform future research on this topic.

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 for China finds that labor scarcity encourages firms to adopt more incentive pay which leads to higher firm productivity and reduces misallocation of labor.

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. 479, 2020

Incentive Pay and Firm Productivity: Evidence from China – Download PDF
by Jin, Zhangfeng & Pan, Shiyuan

GLO Fellow Zhangfeng Jin

Author Abstract: This study examines the causes and consequences of incentive pay adoption among Chinese manufacturing firms. First, we find that a higher degree of labor scarcity encourages firms to adopt more incentive pay. Second, using an instrumental variables approach, we find that a 10 percentage point increase in the intensity of incentive pay results in 38% higher firm productivity. Third, the average productivity differences between SOEs and non-SOEs decrease by about 65% after controlling differences in incentive pay adoption. Therefore, facilitating incentive pay adoption among firms with better labor endowments (e.g. SOEs) increases productivity while reduces resource misallocation in developing countries.

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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