Klaus F. Zimmermann

A new GLO Discussion Paper shows that labour-saving innovations challenge manual activities (e.g. in the logistics sector), activities entailing social intelligence (e.g. in the healthcare sector) and cognitive skills (e.g. learning and predicting).

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. 471, 2020

Robots and the origin of their labour-saving impact – Download PDF
by Montobbio, Fabio & Staccioli, Jacopo & Virgillito, Maria Enrica & Vivarelli, Marco

GLO Fellows Fabio Montobbio, Maria Enrica Virgillito & Marco Vivarelli

Author Abstract: This paper investigates the presence of explicit labour-saving heuristics within robotic patents. It analyses innovative actors engaged in robotic technology and their economic environment (identity, location, industry), and identifies the technological fields particularly exposed to labour-saving innovations. It exploits advanced natural language processing and probabilistic topic modelling techniques on the universe of patent applications at the USPTO between 2009 and 2018, matched with ORBIS (Bureau van Dijk) firm-level dataset. The results show that labour-saving patent holders comprise not only robots producers, but also adopters. Consequently, labour-saving robotic patents appear along the entire supply chain. The paper shows that labour-saving innovations challenge manual activities (e.g. in the logistics sector), activities entailing social intelligence (e.g. in the healthcare sector) and cognitive skills (e.g. learning and predicting).

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 for the USA that ethnic attrition biases conventional estimates of health disparities between Mexican Americans and non-Hispanic whites as well as those between Mexican Americans and recent Mexican immigrants.

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. 470, 2020

Ethnic Attrition, Assimilation, and the Measured Health Outcomes of Mexican Americans – Download PDF
by Antman, Francisca M., & Duncan, Brian & Trejo, Stephen J.

GLO Fellow Francisca Antman

Author Abstract: The literature on immigrant assimilation and intergenerational progress has sometimes reached surprising conclusions, such as the puzzle of immigrant advantage which finds that Hispanic immigrants sometimes have better health than U.S.-born Hispanics. While numerous studies have attempted to explain these patterns, almost all studies rely on subjective measures of ethnic selfidentification to identify immigrants’ descendants. This can lead to bias due to “ethnic attrition,” which occurs whenever a U.S.-born descendant of a Hispanic immigrant fails to self-identify as Hispanic. In this paper, we exploit information on parents’ and grandparents’ place of birth to show that Mexican ethnic attrition, operating through intermarriage, is sizable and selective on health, making subsequent generations of Mexican immigrants appear less healthy than they actually are. Consequently, conventional estimates of health disparities between Mexican Americans and non-Hispanic whites as well as those between Mexican Americans and recent Mexican immigrants have been significantly overstated.

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 that an oil price boom may trigger dissatisfaction with one’s income, and that this dissatisfaction is independent of the effect of the boom on real economic conditions. Using data from Kazakhstan, it seems that the oil price boom creates a gap between people’s expectations of the benefits from the boom and the observed economic conditions.

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. 469, 2020

Inflated Expectations and Commodity Prices: Evidence from Kazakhstan – Download PDF
by  Girard, Victoire & Kudebayeva, Alma & Toews, Gerhard

GLO Fellow Victoire Girard

Author Abstract: We document that an oil price boom triggers dissatisfaction with one’s income, and that this dissatisfaction is independent of the effect of the boom on real economic conditions. Unique data from Kazakhstan allows us to exploit time, sectoral and spatial variation to identify the impact of the recent oil boom on reported satisfaction with income. Oil related households whose heads are employed in the private sector of the oil rich districts report a decrease in satisfaction with their income during the boom compared to other households (whose heads work in other sectors and/or districts). The estimated drop in satisfaction is statistically and economically significant: a 20% increase in the price of oil decreases satisfaction with income by 1/3 of a standard deviation. We discuss different interpretations of this drop in satisfaction. The only interpretation consistent with our results is that an oil price boom creates a gap between people’s expectations of the benefits from the boom and the observed economic conditions. Our results call for devoting more attention to the dynamic of satisfaction, not only during resource busts, but also during resource booms.

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 compares the performance of econometric and machine learning models in predicting poverty.

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. 468, 2020

Which Model for Poverty Predictions? – Download PDF
by Verme, Paolo

GLO Fellow Paolo Verme

Author Abstract: OLS models are the predominant choice for poverty predictions in a variety of contexts such as proxy-means tests, poverty mapping or cross-survey imputations. This paper compares the performance of econometric and machine learning models in predicting poverty using alternative objective functions and stochastic dominance analysis based on coverage curves. It finds that the choice of an optimal model largely depends on the distribution of incomes and the poverty line. Comparing the performance of different econometric and machine learning models is therefore an important step in the process of optimizing poverty predictions and targeting ratios.

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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Affirmative Action and Intersectionality in South Africa: A new GLO Discussion Paper finds supporting evidence that affirmative action has induced sizable increases of women in top management positions in South Africa.

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. 467, 2020

Affirmative Action and Intersectionality at the Top: Evidence from South Africa – Download PDF
by Klasen, Stephan & Minasyan, Anna

GLO Fellow Anna Minasyan

Author Abstract: Gender-based board quotas do not always lead to higher share of women in top management positions. We study the consequences of an affirmative action policy that stipulates gender- and race-based targets in top management positions, beyond boards. We focus on the representation of intersectional group identities, such as race and gender, at the top. We find sizable increase in the likelihood of Black women employment in top positions in the post-policy period relative to Black men, White women and White men in South Africa. We extend our analysis and estimate policy spillovers for years of schooling, earnings gaps and self-employment.

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 product, process, and organizational innovations on firm labor productivity in Pakistan.

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. 466, 2020

Innovation Strategies and Productivity Growth in Developing Countries: Evidence from Pakistan – Download PDF
by Wadho, Waqar & Chaudhry, Azam

GLO Fellow Waqar Wadho

Author Abstract: We examine the determinants of product, process, and organizational innovation, and their impact on firm labor productivity using data from a unique innovation survey of firms in Pakistan. We find significant heterogeneity in the impact of different innovations on labor productivity: Organizational innovation has the largest effect followed by process innovation. But unlike much of the literature, we found a negative impact of product innovation suggesting a disruption effect of new products; however, this is mitigated if new products are paired with process or organizational innovations. We find a strong impact of engaging in knowledge creation on product and process innovation. We found that external knowledge networks and innovation cooperation play no significant role in firms’ decision to perform R&D and its intensity, though vertical linkages with suppliers (clients) promote product (process) innovations. Foreign competition has a negative effect on product innovation and a positive effect on organizational innovation.

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 for Italian data that mismatched workers are at risk of long-term unemployment.

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. 465, 2020

Educational mismatches, technological change and unemployment: evidence from secondary and tertiary educated workers –  Download PDF
by Esposito, Piero & Scicchitano, Sergio

GLO Fellows Piero Esposito & Sergio Scicchitano

Author Abstract: In this article, we investigate the role of several types of educational mismatch in explaining labour market transitions of workers with secondary and higher education. We focus on transitions from employment to unemployment and on job changes, to assess whether mismatch is a temporary or a permanent phenomenon. In the first case, as suggested by matching models, mismatch will be eliminated through job-to-job transitions. In the second case, it might be permanent and caused by employment discontinuity and deskilling processes. By using information from the Italian Survey of Professions (ICP) and the Survey on Labour Participation and Unemployment (PLUS), we calculate three measures of vertical mismatch. This allows comparing the outcomes from self-reported and revealed match measures in order to assess the robustness of the results. In addition, we use a measure of horizontal mismatch and evaluated the effect of Routine Bias Technical change (RBTC) in terms of unemployment risk, through a Routine Task Index (RTI) calculated on Italian data. Results indicate that mismatched workers are at risk of long-term unemployment. More specifically, among workers with higher education, the risk is due to mismatches in the field of studies whereas for secondary educated workers, over-education is the main cause of unemployment risk. The effect of the RTI is often not significant. This adds evidence to the problem of skill gap in Italy, as educational choices are not aligned to market needs. In this respect, both demand side and supply side policies are needed to allow firms to better use this human capital.

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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