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101. Which Migrant Jobs are Linked with the Adoption of Novel Technologies, Robotisation, and Digitalisation?

Author:
Antea Barišić, Mahdi Ghodsi, and Robert Stehrer
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
In recent decades, the development of novel technologies has intensified due to globalisation, prompting countries to enhance competitiveness through innovation. These technologies have significantly improved global welfare, particularly in sectors like healthcare, where they have facilitated tasks and boosted productivity, for example playing a crucial role in combating the COVID-19 pandemic. However, certain technologies, such as robots, can negatively impact employment by replacing workers and tasks. Additionally, the emergence of artificial intelligence as digital assets not only replaces specific tasks but also introduces complexities that may displace employees who are unable to adapt. While the existing literature extensively explores the heterogeneous effects of these technologies on labour markets, studies of their impact on migrant workers remain scarce. This paper presents pioneering evidence on the effects of various novel technologies on migrant employment in the European Union. The analysis covers 18 EU member states from 2005 to 2019 focusing on the impact of novel innovations, robot adoption, three types of digital assets, and total factor productivity, on migrant employment. The key findings reveal that innovations measured by the number of granted patents increase both the number and proportion of migrant workers relative to the overall workforce. While robots do replace jobs, their impact on native workers surpasses that of migrant workers, resulting in a higher share of migrant workers following robot adoption. Total factor productivity positively influences migrant workers, while the effects of digital assets are heterogeneous. Moreover, the impacts of these technologies on migrant workers vary significantly across different occupation types and educational levels.
Topic:
Migration, Labor Issues, European Union, Innovation, Robotics, Migrant Workers, Digitalization, and Income Distribution
Political Geography:
Europe

102. Technological Push and Pull Factors of Bilateral Migration

Author:
Antea Barišić, Mahdi Ghodsi, and Michael Landesmann
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper explores the complex interplay between technology adoption, specifically robotisation and digitalisation, and international migration within the EU and other advanced economies, including Australia, the UK, Japan, Norway and the US, over the period 2001-2019. Utilising a gravity model approach grounded in neoclassical migration theory, the study analyses how technological advancements influence migration flows. It examines two key technological variables: the extent of digitalisation, represented by ICT capital per person employed, and the adoption of industrial robots, measured by the stock of robots per thousand workers. The research uniquely integrates these technological factors into migration analysis, considering both push and pull effects. Additionally, it accounts for various other migration determinants such as macroeconomic conditions, demography and policy factors. The findings reveal insightful dynamics about the relationships between technological progress, labour market conditions and migration patterns, contributing significantly to the current literature and informing future migration policies and the impact of technology adoption.
Topic:
Migration, Labor Issues, Innovation, Robotics, Migrant Workers, and Digitalization
Political Geography:
Global Focus

103. Working from Home and Mental Well-being in the EU at Different Stages of the COVID-19 Pandemic: A Gendered Look at Key Mediators

Author:
Sandra Leitner
Publication Date:
03-2024
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper analyses the relationship between working from home (WFH) and mental well-being at different stages during the first two critical years of the COVID-19 pandemic, when governments repeatedly imposed lockdowns and enacted WFH mandates to contain the spread of the virus. Using data from a representative survey conducted at four different time periods in 2020 (first lockdown, subsequent gradual reopening), 2021 (further lockdown) and 2022 (restrictions widely lifted) in the 27 EU member states, it examines the potentially changing role of several mediators over time, such as work-family conflict, family-work conflict, stability, resilience, isolation, the importance of different support networks, workload, physical risk of contracting COVID-19 at work, and housing conditions. For the first lockdown, it also differentiates by previous WFH experience, in terms of WFH novices and experienced WFH workers. It differentiates by gender, in order to take the potential gendered nature and effect of COVID-19 measures into account. The results show that while there was no direct relationship between WFH and mental well-being, there are several important mediators whose relevance was specific not only to certain stages of the pandemic, but also to previous experience with WFH and gender. Stability is the only mediator that was relevant over the entire two-year pandemic period. Work-family conflict and family-work conflict were only relevant during the first lockdown, while resilience and isolation mattered especially when most of the EU economies had lifted most of their restrictions. Unlike established WFH workers, WFH novices had an advantage during the first lockdown, benefiting from lower family-work conflict and more helpful networks of family and friends. Moreover, our results differ by gender: for females who undertook WFH, important mediators were work-family conflict and family-work conflict. Both were related to adjustments they had to make in work and non-work hours in response to the enforced closure of schools and childcare facilities during the lockdowns, especially during the first. For males who undertook WFH, especially WFH novices, support from networks of family and friends was an important mediator.
Topic:
Labor Issues, European Union, Mental Health, COVID-19, Well-Being, and Working from Home
Political Geography:
Europe and Global Focus

104. How Far from Full Employment? The European Unemployment Problem Revisited

Author:
Meryem Gökten, Philipp Heimberger, and Andreas Lichtenberger
Publication Date:
04-2024
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper analyses deviations from full employment in EU countries, compared with the US and the UK. We apply the Beveridge (full-employment-consistent) rate of unemployment (BECRU), derived from the unemployment-vacancies relationship. The BECRU is the level of unemployment that minimises the non-productive use of labour. Based on a novel dataset for the period 1970-2022, we find full employment episodes in selected EU countries (Germany, Sweden, Austria, Finland) during the 1970s. The European unemployment problem emerged in the 1980s and 1990s, as Beveridgean full employment gaps increased. In the run-up to the global financial crisis, full employment gaps declined, then increased during the Great Recession. Slack in labour markets increased initially during the pandemic. Labour markets became tighter when recovering from the COVID-19 crisis, but few countries hit full employment. Panel regressions highlight that hysteresis, labour market institutions, structural factors, macroeconomic factors and political factors contribute to explaining full employment gaps.
Topic:
Migration, European Union, Employment, Macroeconomics, Unemployment, Labor Market, OECD, and Income Distribution
Political Geography:
Europe

105. The Path Through: Early COVID-19 Job Loss and Labour Market Trajectories in Austria

Author:
Stefan Jestl and Maryna Tverdostup
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper examines the socio-demographic disparities evident in the early labour market response to the COVID-19 pandemic in Austria, relying on the register-based labour market career dataset from the Austrian Micro Data Center (AMDC) for the 2018-2021 period. The analysis focuses on the divergences in out-of-unemployment transitions and medium-term employment stability among those who lost their jobs early in the pandemic in contrast to the group of the longer-term unemployed. We document that individuals affected by job loss during the initial phases of the pandemic did not exhibit enduring scarring effects. Unlike their longer-term unemployed counterparts, they did not demonstrate persistent labour market detachment, prolonged periods of unemployment or a diminished success rate in re-employment. However, certain socio-demographic cohorts – notably, women, parents with two or more young children, and individuals with lower levels of education – faced disproportionate challenges during the pandemic. They were more inclined to transition into precarious employment arrangements and experienced lower levels of employment stability in the months following re-employment.
Topic:
Employment, Inequality, Unemployment, COVID-19, Labor Market, and Gender
Political Geography:
Europe and Austria

106. The Factors Driving Migration Intentions and Destination Preferences in Central, East and Southeast European Countries

Author:
Antea Barišić, Mahdi Ghodsi, Alireza Sabouniha, and Robert Stehrer
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper analyses the determinants of outward migration decisions while focusing on CESEE countries and using data from the OeNB Euro Survey conducted by the Oesterrichische Nationalbank (OeNB), a data source that has yet to be exploited at the individual level. Applying a two-stage Heckman procedure, we identify the determinants of the intention to migrate, including age, gender, ties at home, household characteristics and income. In the second stage, we analyse the characteristics of those who expressed a desire to migrate and investigate the determinants of the choice of the respective destination, distinguishing between EU15, EU-CEE and extra-EU countries. The insights in this paper might help to inform fact-based migration and public policies in addition to laying some groundwork for further research (a) concerning the impact of new technologies and demographic trends on the intentions to migrate as well as (b) establishing a firmer link between the intention to migrate and actual migration.
Topic:
Migration, Labor Issues, European Union, Pull Factor, and Choice Model
Political Geography:
Europe

107. The Granular Trade and Production Activities (GRANTPA) Database

Author:
Sebastien Bradley, Javier Flórez Mendoza, Mario Larch, and Yoto V. Yotov
Publication Date:
06-2024
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper introduces the Granular Trade and Production Activities (GRANTPA) database, which covers international trade flows for 3,124 products and 247 countries over the period 1995-2019 as well as domestic trade flows and production data for the same number of products and years for a subset of 35 European economies. The original data sources that we employ are Eurostat’s Comext and Prodcom databases. A gravity application delivers a large set of product-level ‘home bias’ estimates, which cannot be obtained without domestic trade flows. The average estimates on the standard gravity variables in our model (e.g., distance) are comparable to those from the related literature. However, our disaggregated estimates are very heterogeneous across products, thus highlighting the importance of our new database.
Topic:
International Trade and Finance, European Union, Trade, Production, Gravity Data, Structural Gravity, Home Bias Estimates, and Disaggregated Gravity Estimates
Political Geography:
United Kingdom, Europe, Turkey, Norway, Serbia, Iceland, Montenegro, and North Macedonia

108. Full Employment: A Survey of Theory, Empirics and Policies

Author:
Aleksandr Arsenev, Meryem Gökten, Philipp Heimberger, and Andreas Lichtenberger
Publication Date:
06-2024
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
The concept of full employment is associated with diverse economic, political and social aspects. We provide a survey of theory, empirics and policy issues related to full employment. We make a novel contribution by tying together multi-dimensional aspects of full employment regarding definitions, theoretical perspectives, empirical measurements, policy debates and real-world policy programs. We distinguish: concepts of full employment that provide systematic links to price stability; minimum unemployment and maximum employment approaches; and the unfilled vacancies perspective. Furthermore, we provide and discuss different empirical measures of full employment for selected economies, and we propose a new full employment typology. Based on our survey findings, we argue that conceptualising and measuring full employment is not merely a technical task, but inevitably involves normative judgments. Finally, we discuss avenues for future research.
Topic:
Labor Issues, European Union, Employment, Macroeconomics, OECD, Welfare State, and Jobs
Political Geography:
Europe

109. On Within-couple Time Allocation: Gendered Disparities in Paid Work and Housework in Europe

Author:
Alireza Sabouniha and Maryna Tverdostup
Publication Date:
06-2024
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper aims to pursue a deeper understanding of gendered within-couple allocation of time into paid work and housework in heterosexual dual-earner couples. Relying on the second wave of Harmonised European Time Use Survey (HETUS) data for 10 European countries, we estimate spousal relative worktime and housework to analyse within-couple time-use arrangements. The results show that the disparity between a wife’s and a husband’s workhours is gradually narrowing, yet housework remains firmly gendered even in couples in which the wife works more hours than the husband. We document strong inertia in the wife’s share of housework. Although it decreases as her labour market commitment increases, the decline is slow. In addition, even if it is approaching a gender-equal split, the within-couple division of housework barely passes the point at which the husband’s contribution to housework surpasses that of his wife. These results suggest that gendered time division aligns broadly with traditional theories of the household, yet the role of the ‘doing-gender’ hypothesis is non-negligible.
Topic:
Migration, Labor Issues, European Union, Income Inequality, Labor Market, Decision-Making, Gender, Income Distribution, and Unpaid Work
Political Geography:
United Kingdom and Europe

110. Gender and Education Gaps in Employment: New Evidence for the EU

Author:
Aleksandr Arsenev, Meryem Gökten, Philipp Heimberger, Andreas Lichtenberger, and Torben Schütz
Publication Date:
06-2024
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper analyses (age-adjusted) employment rates by gender and education. We find that male female gender gaps and high-low education gaps in employment vary markedly across European Union (EU) countries and regions, with larger gaps existing in Eastern and Southern Europe than in Nordic and Continental EU countries. We estimate that closing existing education gaps in employment between high and lower education levels would raise the employment rate in the EU for the year 2022 by 10.6 percentage points, whereas closing the gender gaps between men and women would lead to an increase of 2.5 percentage points. At the same time, closing both the gender and education gaps would raise the EU employment rate from 76% to 89% of the population. Furthermore, we provide new evidence on the cyclical behaviour of employment gaps, finding that gender gaps are procyclical. While female employment rates tend to be more resilient than male employment rates during economic downturns, male employment rates tend to grow at a faster pace than female employment rates during upswings. In contrast, education gaps are more countercyclical, as employment risks are more strongly concentrated where education is low.
Topic:
Education, Labor Issues, European Union, Employment, Inequality, Macroeconomics, Unemployment, Gender, and Income Distribution
Political Geography:
Europe