Klaus F. Zimmermann

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.

Ends;

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.

Ends;

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.

Ends;

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.

Ends;

A new GLO Discussion Paper examines integration issues studying school friendship networks in five European countries with recent immigration.

GLO Discussion Paper No. 910, 2021

The Slippery Slope from Pluralistic to Plural Societies – Download PDF
by Campigotto, Nicola & Rapallini, Chiara & Rustichini, Aldo

GLO Fellow Chiara Rapallini

Author Abstract: Academic consensus about normative prescriptions on the ethnic and cultural composition of societies has been shifting in recent decades. It has evolved from what seemed desirable but was acknowledged to be unrealistic (the noble idea of a melting pot), to what is realistic because it has already happened, but might be undesirable in the long run: the multicultural diaspora. Plural societies, an unintended consequence of multiculturalism, lurk in the background. Thus scholars of social and economic questions, as well as societies, face a threehorned dilemma. We throw some light on the dilemma by examining school friendship networks in five European countries with recent immigration. Our results highlight the force of elective affinities in overcoming differences, but they also point to the countervailing forces of elective discordance that are currently driving increasing division.

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.

Ends;

A new GLO Discussion Paper provides a comprehensive analysis of gender gaps in Europe.

GLO Discussion Paper No. 908, 2021

How do women allocate their available time in Europe? Differences with men – Download PDF
by Gimenez-Nadal, Jose Ignacio & Molina, José Alberto

GLO Fellow José Alberto Molina

Author Abstract: This article explores the gender gap in time allocation in Europe, offering up-to-date statistics and information on several factors that may help to explain these differences. Prior research has identified several factors affecting the time individuals devote to paid work, unpaid work, and child care, and the gender gaps in these activities, but most research refers to single countries, and general patterns are rarely explored. Cross-country evidence on gender gaps in paid work, unpaid work, and child care is offered, and explanations based on education, earnings, and household structure are presented, using data from the EUROSTAT and the Multinational Time Use Surveys. There are large cross-country differences in the gender gaps in paid work, unpaid work, and child care, which remain after controlling for socio-demographic characteristics, although the gender gap in paid work dissipates when the differential gendered relationship between socio-demographic characteristics and paid work is taken into account. This paper provides a comprehensive analysis of gender gaps in Europe, helping to focus recent debates on how to tackle inequality in Europe, and clarifying the factors that contribute to gender inequalities in the uses of time.

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.

Ends;