Kenya goes to the polls; UK’s over 50s quitting the workforce, causing inflation
Today’s global news summary brings news affecting Kenya, the UK, and Europe and discusses issues as diverse as elections, labor market tightening, and the climate crisis.
- Kenya: Kenyans are electing a new president
- UK: Exodus of over 50s during the pandemic fuels wage inflation in the UK
- Europe: Europe’s climate-driven drought crisis is “the new normal”
Kenyans are electing a new president
Labor markets and institutions
On Tuesday Kenyans go to the polls to elect a new president in what is being described as a close race, reports CNN. According to opinion polls, it is a two-horse race between Deputy President William Ruto and opposition leader, and former prime minister, Raila Odinga. Odinga has the backing of former president Uhuru Kenyatta and is running alongside former justice secretary Martha Karua, who would become Kenya’s first female deputy president if elected. Ruto, a former teacher from humble beginnings, has adopted a more populist approach, hoping to appeal to the youth, Kenya’s largest voting bloc. Odinga has pledged to set up a social protection and a universal health care program, and offer free education to college level. Ruto has pledged to prioritize the country’s economy and lift up ordinary citizens. The pressing issues for the Kenyan people include growing debt, high food and fuel prices, mass youth unemployment, plus a debilitating drought.
“In order to stand up to populists, the centrist parties should renew themselves and regain public trust through carrying out meaningful reforms and delivering inclusive growth,” writes Sergei Guriev for IZA World of Labor.
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Labor market performance and the rise of populism
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How do candidates’ looks affect their election chances?
The effect of emigration on home-country political institutions
Key topics
Youth unemployment
What is the gender divide?
Opinions
Elections and the Covid-19 pandemic
How candidates’ looks affect their election chances
IZA discussion papers
The Jobs That Youth Want and the Support They Need to Get Them: Evidence from a Discrete Choice Experiment in Kenya
Exodus of over 50s during the pandemic fuels wage inflation in the UK
Labor markets and institutions
Dame Sharon White, the chair of the John Lewis Partnership, owner of department stores and the Waitrose supermarket chain in the UK, warns that a mass exodus of workers in their 50s since the start of the Covid-19 pandemic is inevitably causing wage inflation, reports the BBC. Job vacancies are at a record high and employers who want to attract and retain staff are under pressure to lift wages, which in turn fuels inflation. Inflation in the UK is at a 40-year high and the Bank of England is warning of an upcoming recession. Dame White believes the government should think more about how to encourage people, particularly older people, back into work. She says introducing flexible retirement plans, plus skills courses for older workers to retrain for different jobs, could help encourage people back into work.
R. Jason Faberman, Andreas I. Mueller, and Ayşegül Şahin say “the degree to which the behavior of nonparticipants affects labor market tightness depends on the flexibility of the labor market, as more flexible markets make it easier for nonparticipants to find jobs that match their desired hours.”
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IZA World of Labor articles
The effects of wage subsidies for older workers
Pension reform and couples’ joint retirement decisions
Is training effective for older workers?
The incentive effects of minimum pensions
Key topics
The aging workforce and pensions reform
Opinions
Has the willingness to work fallen during the Covid pandemic?
Wage subsidies may not help to increase employment among older workers
Videos
Panel discussion on the impact of Covid-19 and today's labor market in Europe and the U.S.
IZA Discussion Papers
Can Older Workers Be Retrained? Canadian Evidence from Worker-Firm Linked Data
Are Older Workers Willing to Learn?
Europe’s climate-driven drought crisis is “the new normal”
Environment
Europe is experiencing its most severe drought in decades, affecting homes, factories, farmers, and freight across the continent, reports the Guardian. Experts warn drier winters and searing summers fuelled by global heating mean water shortages will become “the new normal.” More than 100 French municipalities have no running drinking water and are being supplied by truck. Spain’s water reserves are at an all-time low of 40% and have been falling at a rate of 1.5% a week as a result of increased consumption and evaporation, according to the Spanish government. And, this year is also set to become the hottest and driest ever recorded in Italy. Similar news comes from Switzerland, the Netherlands, Belgium, and Germany. Scientists have said climate breakdown could soon lead to summer droughts becoming frequent in western Europe, with extreme heat events that once occurred once a decade happening every two or three years unless governments around the world radically cut carbon emissions.
“[S]ocieties can, and will have to, adapt to their new realities. Understanding this adaptation is crucial to be able to distinguish the short-term effects of climate change from its longer-term ones,” says Marie Connolly in her IZA World of Labor article.
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Climate change and the allocation of time
Climate change, natural disasters, and migration
Does hot weather affect human fertility?
Key topics
Environmental regulation and the labor market
Opinions
How will climate change affect what we do?
Videos
IZA World of Labor panel discussion on environment and health
IZA Discussion Papers
Why Do Relatively Few Economists Work on Climate Change? A Survey
Fighting Climate Change: The Role of Norms, Preferences, and Moral Values
Do Europeans Care about Climate Change? An Illustration of the Importance of Data on Human Feelings