Klaus F. Zimmermann

A new paper published ONLINE FIRST with free readlink in the Journal of Population Economics finds that left-behind parents experience lower utility when their adult children migrate.

Migration and experienced utility of left-behind parents: evidence from rural China

by Shu Cai, Albert Park & Winnie Yip

Published ONLINE FIRST 2021: Journal of Population Economics
READLINK: https://rdcu.be/cxiiq

Author Abstract: This paper examines the impact of children’s migration on the well-being of left-behind parents using panel data on experienced utility measured by the Day Reconstruction Method. Exploiting exogenous variation in exposure to employment shocks at migration destinations for identification, we find that left-behind parents experience lower utility when their adult children migrate. This is partly due to increased working time and less time spent in social activities, and partly due to reduced utility within activity type. The latter effect is consistent with the finding of less physical care and psychological support from children who have migrated. These negative effects dominate the possible benefits of greater income associated with children’s migration.

Journal of Population Economics
Access to the recently published Volume 34, Issue 4, July 2021. 10 articles on Covid-19 all freely accessible.

LEAD ARTICLE OF ISSUE 3, 2021:
The impact of repeated mass antigen testing for COVID-19 on the prevalence of the disease
by Martin Kahanec, Lukáš Lafférs & Bernhard Schmidpeter

OPEN ACCESS: Free Readlink – Download PDF

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.

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A new GLO Discussion Paper finds that sexual orientation discrimination still matters in Greece and even has increased.

GLO Discussion Paper No. 915, 2021

Sexual orientation discrimination in the labor market against gay men – Download PDF
by Drydakis, Nick

GLO Fellow Nick Drydakis

Author Abstract: The study replicates the first European field experiment on gay men’s labor market prospects in Greece. Utilizing the same protocol as the original study in 2006-2007, two follow-up field experiments took place in 2013-2014 and 2018-2019. The study estimated that gay men experienced occupational access constraints and wage sorting in vacancies offering lower remuneration. It was found that in 2013-2014 and 2018-2019, gay men experienced increasingly biased treatment compared to 2006-2007. Moreover, the results suggested that unemployment bore an association with occupational access constraints and wage sorting in vacancies offering lower remuneration for gay men. In each of the three experiments, this study captured recruiters’ attitudes toward gay men. A one standard deviation increase in taste-discrimination attitudes against gay men decreased their access to occupations by 9.6%. Furthermore, a one standard deviation increase in statistical-discrimination attitudes against gay men decreased their access to occupations by 8.1%. According to the findings, in 2013-2014 and 2018-2019, firms excluding gay applicants expressed a higher level of taste- and statistical-discrimination attitudes compared to 2006-2007. A gay rights backlash due to the LGBTIQ+ group’s attempt to advance its agenda, rising far-right rhetoric, and prejudice associated with economic downturns experienced in Greece might correspond with increasing biases against gay men.

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 argues that negative and zero incomes cannot be treated equally in terms of household well-being and that standard methods used by practitioners fail to recognize this fact likely resulting in overestimations of poverty.

GLO Discussion Paper No. 914, 2021

Bottom Incomes and the Measurement of Poverty: A Brief Assessment of the Literature – Download PDF
by Ceriani, Lidia & Hlasny, Vladimir & Verme, Paolo

GLO Fellow Paolo Verme

Author Abstract: The paper discusses the main issues related to negative and zero incomes that are relevant for the measurement of poverty. It shows the prevalence of non-positive incomes in high- and middle-income countries, provides an analysis of the sources and structure of these incomes, outlines the various approaches proposed by scholars and statistical agencies to treat non-positive incomes, and explains how non-positive incomes and alternative correction methods impact the measurement of standard poverty indexes. It is argued that negative and zero incomes cannot be treated equally in terms of household well-being and that standard methods used by practitioners fail to recognize this fact likely resulting in overestimations of poverty.

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.

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.

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A new GLO Discussion Paper highlights the impact of delay and the importance of structuring bankruptcy procedures to rapidly resolve uncertainty about firms’ future prospects.

GLO Discussion Paper No. 912, 2021

The Impact of Delay: Evidence from Formal Out-of-Court Restructuring – Download PDF
by Srhoj, Stjepan & Kovač, Dejan & Shapiro, Jacob N. & Filer, Randall K.

GLO Fellows Dejan Kovac & Randall Filer

Author Abstract: Bankruptcy restructuring procedures are used in most legal systems to decide the fate of businesses facing financial hardship. We study how bargaining failures in such procedures impact the economic performance of participating firms in the context of Croatia, which introduced a “pre-bankruptcy settlement” (PBS) process in the wake of the Great Recession of 2007 – 2009. Local institutions left over from the communist era provide annual financial statements for both sides of more than 180,000 debtor- creditor pairs, enabling us to address selection into failed negotiations by matching a rich set of creditor and debtor characteristics. Failures to settle at the PBS stage due to idiosyncratic bargaining problems, which effectively delays entry into the standard bankruptcy procedure, leads to a lower rate of survival among debtors as well as re- duced employment, revenue, and profits. We also track how bargaining failures diffuse through the network of creditors, finding a significant negative effect on small creditors, but not others. Our results highlight the impact of delay and the importance of structuring bankruptcy procedures to rapidly resolve uncertainty about firms’ future prospects.

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.

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.

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A new GLO Discussion Paper reviews how the outsourcing and offshoring literature helps to understand the future of post-pandemic remote work.

GLO Discussion Paper No. 913, 2021

How the Past of Outsourcing and Offshoring is the Future of Post-Pandemic Remote Work: A Typology, a Model, and a Review – Download PDF
by Erickson, Christopher & Norlander, Peter

GLO Fellow Peter Norlander

Author Abstract: Information and communication technology (ICT) challenges traditional assumptions about the capacity to manage workers beyond organizational and physical boundaries. A typology connects a variety of non-traditional work organizations made possible by ICT, including offshoring, outsourcing, remote work, virtual companies, and platforms. A model illustrates how new technology serves as a proximate cause for a revision of social contracts between capital, labor and government reached through bargaining, and how external shocks such as the COVID-19 pandemic, the institutional environment, and limitations in practice influence how technology changes the organization of work. An historical case illustrates the general features of the model, and a review of the outsourcing and offshoring literature provides instructive examples of how features of the model will potentially influence the future of post-pandemic remote work

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.

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.

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A new GLO Discussion Paper revisits the influential theory of monopolistic competition and optimum product variety. Differences in factor endowments across countries determine the pattern of trade between varieties and output per variety, which is indeterminate the standard model.

GLO Discussion Paper No. 911, 2021

Monopolistic Competition, Optimum Product Diversity, and International Trade – The Role of Factor Endowment and Factor Intensities – Download PDF
by Marjit, Sugata & Mandal, Biswajit

GLO Fellow Biswajit Mandal

Author Abstract: In this paper we revisit the influential theory of monopolistic competition and optimum product variety as developed by Dixit and Stiglitz (1977) with applications in international trade by Krugman (1979,1980), by modeling fixed and variable costs of production in terms of underlying use of skilled and unskilled labor in a single good model. This is different from earlier work on multi sector variant of Krugman cum Heckscher-Ohlin-Samuelson model such as Helpman (1981) and others. In our structure factor endowment and factor intensities determine both number of varieties and output per variety in a closed economy mimicking the features of Heckscher-Ohlin-Samuelson model. Differences in factor endowments across countries determine the pattern of trade between varieties and output per variety, which is indeterminate in a standard single good Dixit-Stiglitz-Krugman model. Later we reflect on wage inequality and unemployment providing some interesting results.

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.

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.

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