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11. Productivity and the Pandemic: ShortTerm Disruptions and Long-Term Implications

Author:
Klaas de Vries, Abdul Erumban, and Bart van Ark
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
The Conference Board
Abstract:
This paper analyses quarterly estimates of productivity growth at industry level for three advanced economies, France, the United Kingdom, and the United States, for 2020. We use detailed industry-level data to distinguish reallocations of working hours between industries from pure within-industry productivity gains or losses. We find that all three countries showed positive growth rates of aggregate output per hour in 2020 over 2019. However, after removing the effects from the reallocation of hours between low and high productivity industries, only the US still performed positively in terms of withinindustry productivity growth. In contrast, the two European economies showed negative within-industry productivity growth rates in 2020. While above-average digital-intensive industries outperformed belowaverage ones in both France and the UK, the US showed higher productivity growth in both groups compared to the European countries. Industries with medium-intensive levels of shares of employees working from home prior to the pandemic made larger productivity gains in 2020 than industries with the highest pre-pandemic work-from-home shares. The paper also experiments with US data on employment at county level by allocating within-industry productivity contributions for 2020 to urban, sub-urban and rural areas, showing that the contributions to within-industry productivity growth from manufacturing and other production industries in urban and sub-urban areas increased during the pandemic. Overall, after taking into account the productivity collapse in the hospitality and culture sector during 2020, productivity growth shows no clear deviation from the slowing pre-pandemic productivity trend. Future trends in productivity growth will depend on whether the favourable productivity gains (or smaller losses) in industries with above-average digital intensity will outweigh negative effects from the pandemic, in particular scarring effects on labour markets and business dynamics.
Topic:
Labor Issues, Work Culture, Pandemic, COVID-19, Productivity, and Digitalization
Political Geography:
United Kingdom, Europe, France, and United States of America

12. The changing nature of work and earnings inequality in China

Author:
Chunbing Xing
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper examines the evolution of China’s industrial and occupational structure in the last two decades and its impact on wage inequality. We find that non-routine cognitive and interpersonal tasks have increased, while routine cognitive tasks first increased and then declined. Occupation structural change is accompanying rising wage inequality. The wage premium for educated workers rose sharply in the 1990s and remained high thereafter. Occupations with high routine task intensity are associated with lower wages. While the return to education has become the largest contributor to wage inequality, routine task intensities have yet to play a significant role.
Topic:
Education, Labor Issues, Employment, Inequality, and Work Culture
Political Geography:
China and Asia

13. Analysis of Global Value Chain Participation and the Labour Market in Thailand: A Micro-level Analysis

Author:
Upalat Korwatanasakul and Youngmin Baek
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study assesses the links between global value chain (GVC) participation and the labour market to examine the relatively unexplored employment-related distribution effects of GVC integration. Based on the Mincer wage model, we examine the relationship between GVC participation and worker productivity and wages at the individual level. Our main estimation method is a simple ordinary least squares estimation using pooled cross-sectional data from the Thai Labour Force Survey for the period 1995–2011. We also separately examine the effects of forward and backward GVC participation on wages and wage distributions. Our results show that GVC participation induces higher monthly wages for individuals and increases productivity in the labour market through either the forward linkage or backward linkage. We even find that GVC participation can help mitigate inequality. Our findings show that GVC participation promotes inclusive job creation and provides more job opportunities for rural, female, and low-skilled workers. Policies to support leveraging the existing strong industries through upgrading, smoothing labour movements while improving agricultural productivity, and preparing to move towards a services economy can help prepare Thailand, and other developing countries in general, to upgrade to higher value chains. Although GVC participation may be a catalyst for higher wages, greater labour productivity, and more inclusive job creation, its employment effects are complicated. An unbalanced policy framework might contribute to uneven income distributions and exclusive job creation as participating in GVCs through different linkages can benefit different stakeholders in varying ways. Therefore, a policy framework that balances the benefits among stakeholders in terms of wage distributions and job inclusion is ideal.
Topic:
Labor Issues, Work Culture, Global Value Chains, and Labor Market
Political Geography:
Asia and Thailand

14. A Comprehensive Overview: Defining and Measuring Informality in India’s Labour Market

Author:
Mridusmita Bordoloi, Sharad Pandey, and Mohammad Hamza Farooqui
Publication Date:
12-2020
Content Type:
Policy Brief
Institution:
Centre for Policy Research, India
Abstract:
The brief unbundles the global standard definition of informality with respect to the labour market, a concept often considered inexplicit and broad-based. It presents the parameters used to measure informality in the Indian context, and presents key characteristics of the informal workforce.
Topic:
Employment, Work Culture, and Labor Market
Political Geography:
South Asia and India

15. Wage effects of employer-mediated transfers

Author:
Santiago Garriga and Dario Tortarolo
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Nottingham Interdisciplinary Centre for Economic and Political Research (NICEP)
Abstract:
We explore how the way in which tax credits are disbursed affects employer’s behavior, wages, and employment. We exploit a change in the payment system in Argentina that was gradually rolled out between 2003 and 2010. Under the old system, employers were in charge of delivering family allowances to their employees together with the monthly salary, and the transfer was deducted from employer social security contributions. For transparency purposes, the government eliminated the intermediary role of firms and started depositing the transfer directly into workers’ bank accounts. Using employer-employee administrative data and an event-study approach, we show that the way tax credits are disbursed matters for the final economic incidence. Our evidence suggests that employers shift part of the incidence of the transfer by paying lower wages. We document larger wage effects in small and less unionized firms and we do not find evidence of pay equity concerns (e.g., effect mostly driven by new hires rather than incumbent workers). Our findings are therefore in line with the hypothesis that transfers are not all captured dollar for dollar by workers. These results raise questions about the use of employers as intermediaries to disburse the transfer; where less salient schemes may lead to capture by employers.
Topic:
Economics, Labor Issues, Employment, Work Culture, and Economic Inequality
Political Geography:
Argentina and Latin America

16. Immigration and Offshoring: Two Forces of Globalisation and Their Impact on Employment and the Bargaining Power of Occupational Groups

Author:
Michael Landesmann and Sandra Leitner
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper estimates conditional demand models and, using a joint approach for the period 2008-2017, examines the impact of immigration and different measures of offshoring on the labour demand and demand elasticities of native workers in four different types of occupational groups: managers/professionals, clerical workers, craft (skilled) workers and manual workers. The analysis is conducted using data for four EU economies: Austria, Belgium, France and Spain. Our results point to important and occupation-specific direct and indirect effects of immigration and offshoring. Both offshoring – particularly services offshoring – and immigration have negative direct employment effects on all occupations, but native clerks and manual workers are affected the most, and native managers/professionals the least. Generally, offshoring exerts a stronger direct negative employment effect than does immigration. Our results also identify an important (labour demand) elasticity-channel of immigration and offshoring and show that some groups of native workers can also actually gain from globalisation through an improvement in their wage-bargaining position. Overall, our results indicate a deterioration in the bargaining power of native manual workers arising from both immigration and offshoring; an improvement in the bargaining position of native craft workers in the case of both immigration and offshoring; and an improvement in the bargaining position of native clerical workers and managers/professionals in the case of offshoring only. Finally, our analysis of the cross-effects of immigration highlights the important role of migrant managers/professionals for the labour demand and demand elasticities (bargaining power) of native clerical workers, craft and manual workers.
Topic:
Globalization, Labor Issues, Immigration, Employment, and Work Culture
Political Geography:
Europe, France, Belgium, Spain, and Austria

17. The Future of Work: An India Perspective

Author:
A. Didar Singh
Publication Date:
11-2020
Content Type:
Research Paper
Institution:
India International Centre (IIC)
Abstract:
The ‘Future of Work’ is a hot topic today. Everybody has a view on it. It is happening and is a reality that society must learn to face. The seven billion people on this planet will have seven billion reactions to the future. We cannot understand or plan for these. We can, however, learn from them. We can at best try and capture the essence of the big picture, to appreciate the global agenda and outline the major forces at play. Employment is probably the single biggest issue across the world. This is because it is not so easily available and is getting more difficult. All governments promise to provide jobs, but the fear is that this may not come about. The fear is because of the march of technology. Technological changes have indeed threatened to disrupt jobs for the last 200 years and each time the doomsayers have been proven wrong. New jobs have replaced old ones and world economy has only prospered, especially in the last 70 years of globalisation. Unfortunately, this time the fear may be wellfounded, especially for the unskilled.
Topic:
Globalization, Science and Technology, Employment, Economy, and Work Culture
Political Geography:
South Asia and India

18. Gender and Work Patterns in Indian Cities: A Socio-Spatial Analysis

Author:
Vamsi Vakulabharanam and Sripad Motiram
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Using an original household survey conducted in Hyderabad and Mumbai that identifies intracity spatial coordinates of residents, we present a socio-spatial analysis of gender and paid work. We show that the ease of movement through the city, allocation of care work related considerations and educational attainment are all crucial to understanding the labor force participation patterns of urban women. A gender lens identifies key facets of access and mobility characterizing urbanization in developing countries. Spatial heterogeneity of residence has very different outcomes for the labor force participation of women and men.
Topic:
Development, Labor Issues, Women, Work Culture, Cities, and Gender
Political Geography:
South Asia and India

19. An Equity Imperative: How the Workforce System Can Advance Workplace Health and Safety During and After the Pandemic

Author:
Amanda Newman
Publication Date:
06-2020
Content Type:
Policy Brief
Institution:
Aspen Institute
Abstract:
Every worker deserves a job with healthy and safe working conditions. The outbreak of the novel coronavirus, however, has demonstrated that for far too many people this is not the reality. The pandemic has created a new set of workplace hazards, forcing many people looking for work to make difficult choices between providing for their families and protecting their health and the health of their loved ones. As businesses reopen, more people are reentering jobs that pose risks. And these risks are not distributed equally. Due to factors rooted in structural racism, Black, Indigenous, and workers of color performing critical services during the pandemic are both more likely to experience the health consequences of the virus and to be concentrated in jobs with greater exposure. Serving as intermediaries between workers and employers, workforce development professionals have a crucial role to play in strengthening workplace health and safety during and after the pandemic. In the early months of the crisis, Economic Opportunities Program staff spoke with workforce development leaders across the country as they strengthened existing strategies and considered new approaches to help workers protect themselves on the job. Professionals on the front lines of connecting people to work – from caseworkers to job developers to program directors – can learn from their approaches to inform their own strategies. In this brief, we highlight key ideas for how the workforce development system can promote workplace health and safety during the pandemic. It is important to note that workforce professionals are themselves navigating a crisis, responding to historic unemployment and serving the public as resources rapidly decline. This brief also includes ideas for public and philanthropic funders who seek to support the workforce development field to advance workplace health and safety.
Topic:
Labor Issues, Employment, Work Culture, Job Creation, and Labor Market
Political Geography:
North America and United States of America

20. Coworking Spaces in La Paz, Bolivia: Urban Effects and Potential Creation of New Opportunities for Local Economic Development

Author:
Lucas DuPriest
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This paper investigates the location patterns of coworking spaces, the effects of coworking spaces on the local and urban context, and coworking spaces potential opportunities for the creation of local economic development, issues that have been neglected in a Bolivian context by the existing literature. The focus of this paper is on La Paz, Bolivia’s political capital and the city in Bolivia which host the largest number of coworking spaces. The paper addresses three main questions: (1) Where are the main locations of coworking spaces in La Paz? (2) to what extent do coworking spaces generate transformative effects on the local respectively the urban scale? (e.g. physical transformations, changes in practices, community building) (3) how do coworking spaces create potential opportunities for local economic development? Desk research demonstrated that location patterns of coworking spaces are concentrated to two main commercial areas of the city, as well as to the main infrastructural and transportation axes. Field research highlighted local and urban effects, such as local community initiatives and micro-urban transformations in both spaces and practices. Lastly, field research assessed coworking spaces role in the socio-economic ecosystem. Three main typologies have been identified: the first type of coworking spaces act as “social entrepreneurship and start-up incubators” with a supportive role and closer ties to social and urban issues, the second type of coworking spaces act as “coffee and cowork incubators” providing cafés with shared workspaces, the third type of coworking spaces act as “real estate business incubators” and are mainly a commercial product responding the demand for flexible office spaces. This paper, therefore, helps to fill the gap in the literature about the location patterns of these new working spaces and their effects at different scales both in terms of spaces and practices, as well as local economic development.
Topic:
Economics, Work Culture, Urban, Local, Innovation, Economic Development, and Social Capital
Political Geography:
Latin America and Bolivia