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411. Labor Market Nationalization Policies and Firm Outcomes: Evidence from Saudi Arabia

Author:
Patricia Cortes, Semiray Kasoolu, and Carolina Pan
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Saudi Arabia is home to the world’s third largest migrant population. Under mounting pressure to increase the private sector employment of Saudis during the last decade, a series of nationalization policies on the labor force have been imposed since late 2011. In this paper, we study how the first nationalization policy, Nitaqat, affected the overall labor market and non-oil firms in the private sector, especially exporting firms. Our rich and novel data allow us to assess the effect of the policy on a wide set of outcomes: employment decisions by composition and size, the output and productivity of exporting firms, labor costs, and exit from the market. Using a difference-in-difference analysis, we compare the 2011 to 2012 change in outcomes between firms above and firms below the threshold required for the minimum share of Saudi workers in a firm. Our results suggest that the policy succeeded in encouraging firms to increase the share of Saudis in private firms. It also increased the share of Saudi women in the workforce, suggesting that the policy had a positive effect on increasing female labor force participation. However, these gains came at a very high cost to firms: our findings suggest that the policy led to a reduced firm size, reduced productivity and output of exporting firms, increased wage bill, increased share of low-skilled Saudi workers, and higher firm exit rates.
Topic:
Business, Labor Market, and Nationalization
Political Geography:
Saudi Arabia and Gulf Nations

412. Countering Misinformation Via WhatsApp: Evidence from the COVID-19 Pandemic in Zimbabwe

Author:
Jeremy Bowles, Horacio Larreguy, and Shelley Liu
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
We examine how information from trusted social media sources can shape knowledge and behavior when misinformation and mistrust are widespread. In the context of the COVID-19 pandemic in Zimbabwe, we partnered with a trusted civil society organization to randomize the timing of the dissemination of messages aimed at targeting misinformation about the COVID-19 virus to 27,000 newsletter WhatsApp subscribers. We examine how exposure to these messages affects individual beliefs about how to deal with the COVID-19 virus and preventative behavior. The results show that social media messaging from trusted sources may have substantively large effects on not only individual knowledge but also ultimately on related behavior.
Topic:
Science and Technology, Internet, Social Media, Pandemic, COVID-19, Misinformation, and WhatsApp
Political Geography:
Africa and Zimbabwe

413. Specificity of Human Capital: An Occupation Space Based on Job-to-Job Transitions

Author:
Eduardo Levy Yeyati
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Using job transition data from Argentina’s Household Survey, we document the extent to which human capital is specific to occupations and activities. Based on workers’ propensity to move between occupations/industries, we build Occupation and Industry Spaces to illustrate job similarities, and we compute an occupation and industry similarity measures that, in turn, we use to explain wage transition dynamics. We show that our similarity measures influence positively post-transition wages. Inasmuch as wages capture a worker's marginal productivity and this productivity reflects the degree to which a worker matches the job’s skill demand, our results indicate that a worker's human capital is specific to both occupation and activity: closer occupations share similar skill demands and task composition (in other words, demand similar workers) and imply a smaller human capital loss in the event of a transition.
Topic:
Employment, Business, Human Capital, and Productivity
Political Geography:
Argentina and South America

414. Gender Differences in Professional Career Dynamics: New Evidence from a Global Law Firm

Author:
Ina Ganguli, Ricardo Hausmann, and Martina Viarengo
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
We examine gender gaps in career dynamics in the legal sector using rich panel data from one of the largest global law firms in the world. The law firm studied is representative of multinational law firms and operates in 23 countries. The sample includes countries at different stages of development. We document the cross-country variation in gender gaps and how these gaps have changed over time. We show that while there is gender parity at the entry level in most countries by the end of the period examined, there are persistent raw gender gaps at the top of the organization across all countries. We observe significant heterogeneity among countries in terms of gender gaps in promotions and wages, but the gaps that exist appear to be declining over the period studied. We also observe that women are more likely to report exiting the firm for family and work-life balance reasons, while men report leaving for career advancement. Finally, we show that various measures of national institutions and culture appear to play a role in the differential labor-market outcomes of men and women.
Topic:
Gender Issues, Labor Issues, Women, Employment, Inequality, Human Capital, and Legal Sector
Political Geography:
Global Focus

415. Policy Decisions and Evidence Use among Civil Servants: A Group Decision Experiment in Pakistan

Author:
Laura Metzger, Theodore Svoronos, and Adnan Qadir Khan
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
In a lab-in-field experiment with elite civil servants in Pakistan, we investigate whether groups outperform individuals in a two-staged task which requires effective use of data and evidence. We also study how efficiently groups harness their members’ individual knowledge for problem-solving. We do not find a significant difference in individual (first stage) and group performance (second stage). Yet, groups could have significantly improved their performance during the second stage of the task, had they more efficiently collaborated to retrieve their members’ respective knowledge. Carefully interpreted in the setting of our experiment, our data suggests that diversity in individual knowledge may hamper effective use of data and evidence for decision- making in small groups of policymakers.
Topic:
Education, Public Policy, and Civil Servants
Political Geography:
Pakistan and South Asia

416. You Get What You Pay For: Sources and Consequences of the Public Sector Premium in Albania and Sri Lanka

Author:
Ricardo Hausmann, Ljubica Nedelkoska, and Sehar Noor
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
We study the factors behind the public sector premium in Albania and Sri Lanka, the group heterogeneity in the premium, the sources of public sector wage compression, and the impact of this compression on the way individuals self-select between the public and the private sector. Similar to other countries, the public sectors in Albania and Sri Lanka pay higher wages than the private sector, for all but the most valued employees. While half of the premium of Sri Lanka and two-thirds of it in Albania are explained by differences in the occupation-education-experience mix between the sectors, and the level of private sector informality, the unexplained part of the premium is significant enough to affect the preferences of working in the public sector for different groups. We show that the compressed distributions of public sector wages and benefits create incentives for positive sorting into the public sector among most employees, and negative sorting among the most productive ones.
Topic:
Employment, Human Capital, Public Sector, and Private Sector
Political Geography:
South Asia, Sri Lanka, and Albania

417. Strengthening the Relationship Between Embassies and U.S. Special Operations Forces: Part 1, the Current Environment

Author:
Carter Wilbur
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
American Diplomacy
Abstract:
The release of the National Security Strategy (NSS)[i] in 2017 and related National Defense Strategy (NDS)[ii] in 2018 shifted the United States’ strategic focus to what has become known as Great Power Competition (GPC). These strategies acknowledge that the almost 20-year long fight against violent extremist organizations (VEOs) will continue, but add the need to address emerging and enduring threats from near-peer competitors such as Russia and China, and those approaching that status, such as Iran and North Korea. To address these authoritarian competitors requires the seamless integration of all aspects of U.S. power. Specifically, this article seeks to examine the current status of the relationship between U.S. embassies and U.S. Special Operations Forces (USSOF), while Part 2 will propose some specific ways to improve that working relationship.
Topic:
Foreign Policy, Diplomacy, National Security, Armed Forces, and Military Affairs
Political Geography:
Global Focus and United States of America

418. Ending Gender Violence in Elections: Inclusion of Women in Kenyan Politics and the National Dialogue Process from a Transitional Justice Perspective

Author:
Agatha Ndonga and Kelli Muddell
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
The International Center for Transitional Justice (ICTJ)
Abstract:
In its primary findings, Kenya's Truth, Justice and Reconciliation Commission noted that women and girls have been subject to systematic, state-sanctioned discrimination in all spheres of their lives, and that the state has failed to take measures to end the practices that restrict women’s political involvement. This paper highlights the need to overcome the political challenges Kenyan women face: their exclusion from political life, the continued violence against them during electoral contests, and their inability to rise to leadership positions in the country.
Topic:
Political Violence, Gender Issues, Elections, Gender Based Violence, and Inclusion
Political Geography:
Kenya and Africa

419. Work, Freedom, Dignity: For Young Tunisians, the Revolution Was Not Only About Accountability for Corruption

Author:
Ruben Carranza and Mohamed Azer Zouari
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
The International Center for Transitional Justice (ICTJ)
Abstract:
Building on its work in Tunisia since 2012, ICTJ met with representatives of youth-led civil society organizations and social movements and state institutions involved in pursuing accountability for Ben Ali-era corruption. This paper focuses on the strategies and insights that members of the youth-led organizations and movements shared in these discussions. It seeks to call attention to their larger revolutionary goals and to offer ways for policymakers, advocates, and donors to support these goals in their transitional justice work.
Topic:
Civil Society, Social Movement, Transitional Justice, Youth, and Revolution
Political Geography:
Global Focus

420. On Iran: Don’t Snap Back, Step Up

Author:
Alistair Millar
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Fourth Freedom Forum
Abstract:
The Trump administration was handed a resounding defeat in the United Nations Security Council at the end of last week when it offered a new resolution to indefinitely extend the UN arms embargo on Iran… Not only is the outcome of this vote embarrassing for the United States, it was the first salvo in a dangerous game of brinksmanship that is likely to be the biggest test of the Security Council’s resolve in the 75-year history of the United Nations.
Topic:
Arms Control and Proliferation, Diplomacy, United Nations, UN Security Council, and Donald Trump
Political Geography:
Iran, Middle East, North America, and United States of America