nep-ara New Economics Papers
on Arab World
Issue of 2011‒11‒21
six papers chosen by
Quentin Wodon
World Bank

  1. Quality Growth versus Inflation in Turkey By Yavuz Arslan; Evren Ceritoglu
  2. ICT Use and Labor: Firm-Level Evidence from Turkey By Hilal Atasoy
  3. IICT Skills and Employment Opportunities By Hilal Atasoy
  4. The impact of employment in Israel on the Palestinian labor force (2005–08) By Etkes, Haggay
  5. A Seasonal Integration and Cointegration Analysis of Residential Water Demand in Tunisia By Marie-Estelle Binet, University of Rennes 1 - CREM, (UMR 6211 CNRS); Younes Ben Zaïd, University of Rennes 1 - CREM, (UMR 6211 CNRS)
  6. Remittances and Return Migration By Collier, William; Piracha, Matloob; Randazzo, Teresa

  1. By: Yavuz Arslan; Evren Ceritoglu
    Abstract: We estimate average quality growth and upward inflation bias for a set of 51 goods in Turkey by using 7 waves of Household Budget Survey from 2003 to 2009 and TURKSTAT prices. We employ instrumental variables approach introduced by Bils and Klenow (2001). We find that average quality growth in Turkey is 3.93 percent. Of this 3.93 percent, 2.28 percent is not netted out by TURKSTAT. Consequently, for the set of goods that we study, the estimated inflation bias is 2.28 percentage points.
    Keywords: Quality bias, Inflation rates
    JEL: D12 E31
    Date: 2011
  2. By: Hilal Atasoy (Department of Economics, University of Illinois at Urbana-Champaign)
    Abstract: This study analyzes the adoption and use of information communication technologies (ICTs) by firms and their effects on employment and wages. I use a confidential data set from Turkey that includes detailed surveys focused on how ICTs and the Internet are used by firms. By using the rich survey data, I create an ICT index summarizing ICT adoption and use, along with the skills of the firms, where each category takes into account many applications. The firms with different levels of ICTs differ in many characteristics. I use the generalized propensity score matching method in order to compare firms that are similar in many dimensions such as industry, location, investments, profits, trade balance, and output. I find positive effects of ICTs on employment and wages that are diminishing after a certain level of ICTs. These significant effects are due to an increase in ICT-generated jobs and not due to an increase in non-ICT jobs in the short-run. The effects on non-ICT employment become significant a couple years after investments in ICTs. This implies a change in the skill composition of the firms with higher intensity of ICT use, especially in the short run.
    Keywords: Information communication technologies, skilled-biased technical change, employment
    JEL: J21 O33
    Date: 2011–09
  3. By: Hilal Atasoy (Department of Economics, University of Illinois at Urbana-Champaign)
    Abstract: This study analyzes information communication technology (ICT) use and skills of workers, and their effects on employment opportunities. I employ a confidential data set provided by Statistical Institute of Turkey that includes detailed surveys on ICT use by households and individuals. The data contains information on ICT skills: starting from the most basic ones such as using an excel spreadsheet and uploading or transferring files, to more advanced skills such as knowing a programming language and solving computer problems. Workers that have ICT skills are more likely to be employed when individual and household level observables are held constant. However, this positive relationship is due to the workers who gained these skills at work. This data suggests there is no causal direction from ICT skills to employment and the positive relationship is due to endogeneity.
    Keywords: Information communication technologies, ICT skills, employment
    JEL: J24 O30
    Date: 2011–09
  4. By: Etkes, Haggay
    Abstract: This study provides circumstantial evidence for the impact of permits for employment in Israel on the Palestinian labor force in the West Bank during the late Intifada period and its aftermath (2005–2008). The study utilizes a unique dataset that merges data from the Palestinian Labor Force Survey with Israeli administrative data on permits for employment in Israel. The study quantifies the increase in Palestinian employment in the Israeli and Palestinian economies and the decrease in Palestinian unemployment, as well as the drop in the return to schooling which coincided with an increase in the number of permits issued. These results reflect the short-run benefits for the un-skilled Palestinian labor force as well as the adverse long-run effects of Palestinian employment in Israel on human capital accumulation.
    Keywords: Palestinian; labor; employment; Israel
    JEL: J08 J21 J01 J24 F51
    Date: 2011–11
  5. By: Marie-Estelle Binet, University of Rennes 1 - CREM, (UMR 6211 CNRS); Younes Ben Zaïd, University of Rennes 1 - CREM, (UMR 6211 CNRS)
    Abstract: The main originality of this article is to empirically incorporate the effect of seasonality in estimating the residential water demand function. We use quarterly times series for the period 1980.1 to 2007.4 from Tunisia and a two consumption blocks decomposition (in a lower and in an upper blocks). As the Error Correction model is poorly significant, we obtain a long-run price elasticity for the upper block equals to -0.39 and greater than the corresponding short run elasticity which is not significant. Therefore, we are able to advocate policies for the upper block both in favor of a water management through pricing and promoting the adoption of water saving equipments. The introduction of seasonality claims for new insights concerning water conservation policies as evidence in favor of seasonal cointegration at biannual frequency is found for the two blocks. Results show that a seasonal pricing policy will not be efficient to reduce the upper block consumption. But, as a part of the consumers switch from the lower to the upper block in summer, we propose to increase the length of the lower block to ensure the satisfaction of households’ essential needs in all seasons.
    Keywords: Residential water demand, seasonal cointegration, seasonal error correction model
    Date: 2011–11
  6. By: Collier, William (University of Kent); Piracha, Matloob (University of Kent); Randazzo, Teresa (University of Kent)
    Abstract: This paper utilises survey data of return migrants to analyse the determinants of remittances sent while the migrants were abroad. We approach our research question from the perspective of three sending countries in the Maghreb, namely Algeria, Morocco and Tunisia. We investigate the remittance behaviour using the migrants’ conditions before migration as well as during the migration experience. Using a two-part model, we show that the decision to remit and the amount remitted depend on a combination of different migrant characteristics as well as the duration and form of migration. We also consider if the remittance behaviour is dependent on the type of return: decided or compelled. We show that those who decided to return have a higher probability to remit for investment purposes and remit more as the time spent abroad increases.
    Keywords: remittances, return migration, Maghreb countries
    JEL: F22 F24
    Date: 2011–10

This nep-ara issue is ©2011 by Quentin Wodon. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.