Klaus F. Zimmermann

A new GLO Discussion Paper relates the rising share of older workers in advanced countries to gains in educational attainment, changes in labor market policies (such as the tax benefit system, and pension reforms), as well as (although moderated by automation) to urbanization and the increasing role of services.

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. 762, 2021

Calling Older Workers Back to Work – Download PDF
by Grigoli, Francesco & Koczan, Zsoka & Topalova, Petia

GLO Fellow Francesco Grigoli

Author Abstract: Population aging in advanced economies could have significant macroeconomic implications, unless more individuals choose to participate in labor markets. In this context, the steep increase in the share of older workers who remain economically active since the mid- 1990s is an overlooked yet encouraging trend. We identify the drivers of the rise in participation of the elderly relying on cross-country and individual-level data from advanced economies over the past three decades. Our findings suggest that the bulk of the increase in their participation is driven by gains in educational attainment and changes in labor market policies, such as the tax benefit system, and pension reforms. Urbanization and the increasing role of services also contributed, while automation weighed on their participation.

Featured image: Mark Timberlake on Unsplash

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 summarizes the latest state of the art in economic research on unemployment and subjective well-being.

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. 760, 2021

Unemployment and subjective well-being – Download PDF
by Suppa, Nicolai

GLO Fellow Nicolai Suppa

Author Abstract: This chapter summarizes the latest state of the art in economic research on unemployment and subjective well-being. Outcomes covered are general life satisfaction, affective well-being, and mental health. Special attention is paid to empirical evidence as obtained from popular panel data sets. Both prominent methodological issues and substantive themes are introduced. Topics covered include the estimation of non-pecuniary costs of unemployment, unemployment over time, the role of others’ unemployment, spill-over effects, and re-employment, among others.

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 that international migration of households in Kyrgyzstan increases with a drought shock but declines with winter and earthquake shocks.

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. 759, 2021

Temporary International Migration, Shocks and Informal Insurance: Analysis using panel data – Download PDF
by Chakraborty, Tanika & Pandey, Manish

GLO Fellow Tanika Chakraborty

Author Abstract: We use panel data for rural Kyrgyzstan to examine households’ international migration response when faced with shocks. Using a household fixed effects regression model, we find that while a drought shock increases the likelihood of migration, winter and earthquake shocks reduce the likelihood of migration. We use a simple theoretical framework to illustrate the trade-off between two effects of a shock for a household: loss of income and increase in the need of labor services. We show that migration increases when the former effect of a shock dominates, it reduces when the latter effect dominates. We explore these mechanisms by examining how the migration-response to shocks changes in the presence of alternate coping mechanisms and by evaluating the effect of shocks on a household’s decision to send and recall a migrant member. We find that when households have easier access to informal finance the migration-response is muted only for shocks for which the adverse income effect dominates. Our findings also suggest that while shocks for which the loss of income effect dominates have a greater effect on the decision to send a migrant, shocks for which the need of labor services effect dominates only affect the decision to recall a migrant. These findings provide evidence in favor of the proposed mechanisms through which shocks affect temporary migration.

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 that European and non-European migrants have a different fiscal position from natives only on the extreme tails of the net fiscal position distribution.

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. 758, 2021

Fiscal Position of Immigrants in Europe: A Quantile Regression Approach – Download PDF
by Joxhe, Majlinda & Scaramozzino, Pasquale & Zanaj, Skerdilajda

GLO Fellow Majlinda Joxhe

Author Abstract: This paper compares the net fiscal position (NFP) of immigrants versus natives using data from the European Survey on Living Conditions (EU-SILC) for the period 2007-2015. By employing a quantile regression approach, we find that European and non-European migrants have a different fiscal position from natives only on the extreme tails of the NFP distribution. Non-EU migrants contribute more than natives in the top quantile of the NFP, whereas they are more fiscally depend in the bottom quantile. We also examine the relationship between our calculated migrants’ fiscal position and the fiscal perception of European citizens versus migrants as measured in European Social Survey (ESS) data. The negative perception in some European countries may be entirely driven by the fiscal position of migrants in the lowest quantile. Our results highlight the critical need to better understand the fiscal contribution of migrants in the destination countries for a fair and constructive migration policy.

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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Using Italian data combining information on advancements of AI at the occupational level with measures of the required proximity in the job-place and administrative employer-employee data on job flows, a new GLO Discussion Paper finds that AI and proximity exhibit an inverse U-shape relationship at the sectoral level, with high advancements in AI that are negatively associated with proximity.

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. 765, 2021

Labour and technology at the time of Covid-19. Can artificial intelligence mitigate the need for proximity? – Download PDF
by Carbonero, Francesco & Scicchitano, Sergio

GLO Fellow Sergio Scicchitano

Author Abstract: Social distancing has become worldwide the key public policy to be implemented during the COVID-19 epidemic and reducing the degree of proximity among workers turned out to be an important dimension. An emerging literature looks at the role of automation in supporting the work of humans but the potential of Artificial Intelligence (AI) to influence the need for physical proximity on the workplace has been left largely unexplored. By using a unique and innovative dataset that combines data on advancements of AI at the occupational level with information on the required proximity in the job-place and administrative employer-employee data on job flows, our results show that AI and proximity stand in an inverse U-shape relationship at the sectoral level, with high advancements in AI that are negatively associated with proximity. We detect this pattern among sectors that were closed due to the lockdown measures as well as among sectors that remained open. We argue that, apart from the expected gains in productivity and competitiveness, preserving jobs and economic activities in a situation of high contagion may be the additional benefits of a policy favouring digitization.

More from the GLO Coronavirus Cluster

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 that the pandemic makes people unhappy in general, but more disadvantaged people including those poor, rural, female and older are more likely to suffer.

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. 768, 2021

Does the COVID-19 Pandemic Cause People to Be Unhappy? Evidence from a Six-Country Survey – Download PDF
by Nguyen, Cuong Viet

GLO Fellow Cuong Nguyen

Author Abstract: Does the COVID-19 pandemic cause people unhappy? In this study, we use a recent survey from China, Japan, South Korea, Italy, the United Kingdom and the United States to explore this question. We find a relatively large effect: a one per-mille point increase in the incidence of the COVID-19 cases increases the probability of unhappiness by 0.002. Possibly channels through which the COVID-19 pandemic causes unhappiness are negative effects on economic outcomes and social interactions of people. We also find that more disadvantaged people including poor, rural, female and older people are more likely to be affected by the pandemic.

More from the GLO Coronavirus Cluster

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 article published in the Journal of Population Economics studies the occupational selection among generations of immigrants in the United States and shows how their choices are linked to the occupational wage distribution in their country of origin.

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. 685, 2020
Wage Distributions in Origin Societies and Occupational Choices of Immigrant Generations in the US – Download PDF
by Zhan, Crystal
Published ONLINE FIRST: Journal of Population Economics
FREE READLINK to published version: https://rdcu.be/cd9XE

GLO Fellow Crystal Zhan

Author Abstract: This paper studies the occupational selection among generations of immigrants in the United States and links their choices to the occupational wage distribution in their country of origin. The empirical results suggest that individuals are more likely to take up an occupation in the US that was more lucrative in the origin country, conditional on individual demographics, parental human capital, and ethnic networks. However, the importance of the origin wage declines with the length of time that immigrants spend in the US and over generations. Information friction may be an explanation.

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 that immigration has contributed to reducing inequality within the 25 EU countries over the 2003-2017 period.

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. 757, 2021

Europe’s migration experience and its effects on economic inequality – Download PDF
by Guzi, Martin & Kahanec, Martin & Ulceluse, Magdalena M.

GLO Fellows Martin Guzi, Martin Kahanec & Magdalena Ulceluse

Author Abstract: This chapter provides the historical context for the past half-century in Europe focusing specifically on the link between migration and economic development and inequality. The literature review suggests that there are several channels through which migration affects economic inequality between countries in one or the other direction. The net effects are an open empirical question and are likely to depend on the economic, demographic and institutional and policy contexts; sources, types and selectivity of migration, as well as responses of the receiving societies as well as migrants themselves. We undertake an empirical analysis and find that immigration has contributed to reducing inequality within the 25 EU countries over the 2003-2017 period. As the EU attracted relatively highly qualified immigrants throughout this period, our results are consistent with the ameliorating effect of skilled migration on within-country inequality, as predicted by theory.

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 deportations increase overall marriage rates and increase the likelihood of endogamous marriages.

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. 756, 2021

Endogamous Marriage among Immigrant Groups: The Impact of Deportations under Secure Communities – Download PDF
by Bansak, Cynthia & Pearlman, Sarah

GLO Fellow Cynthia Bansak

Author Abstract: We investigate the impact of removals under the Secure Communities (SC) program on the marriage patterns of immigrant women living in the U.S. where endogamous marriage is the dominant form of partnership. We focus on enforcement by MSA and country of origin and find evidence that deportations increase overall marriage rates, increase the likelihood of endogamous marriage, decrease rates of exogamous marriage to immigrants from other countries and have indeterminate effects on marriage to natives. When examining channels for behavioral responses, we find evidence pointing towards the desire to mitigate the risk of deportation through the increased importance of networks.

REPORT & VIDEO OF A PAPER PRESENTATION IN THE GLO VIRTUAL SEMINAR SERIES.

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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