nep-dev New Economics Papers
on Development
Issue of 2013‒07‒28
24 papers chosen by
Mark Lee
Towson University

  1. The Effects of Punishment of Crime in Colombia on Deterrence, Incapacitation, and Human Capital Formation By Arlen Guarín; Carlos Medina; Jorge Andrés Tamayo
  2. Social security, economic development and the labor force participation of the elderly in Latin America By Bernardo Queiroz
  3. Large-Scale Agricultural Investments under Poor Land Governance Systems: Actors and Institutions in the Case of Zambia By Kerstin Nolte
  4. Improved production systems for traditional food crops: The case of finger millet in Western Kenya By Christina Handschuch; Meike Wollni
  5. Traditional food crop marketing in Sub-Saharan Africa: Does gender matter? By Christina Handschuch; Meike Wollni
  6. Modelling Agri-Food Policy Impact at Farm-household Level in Developing Countries (FSSIM-Dev): Application to Sierra Leone By Kamel Louhichi; Sergio Gomez y Paloma; Hatem Belhouchette; Thomas Allen; Jacques Fabre; María Blanco Fonseca; Roza Chenoune; Szvetlana Acs; Guillermo Flichman
  7. Cash Transfers and Child Labour By de Hoop, Jacobus; Rosati, Furio C.
  8. Agriculture Plus Plus : growth strategy for Myanmar agriculture By Kudo, Toshihiro; Kumagai, Satoru; Ishido, Hikari
  9. Heterogeneity of the effects of health insurance on household savings: Evidence from rural China. By Diana Cheung; Ysaline Padieu
  10. Quid Pro Quo: Technology Capital Transfers for Market Access in China By Thomas J. Holmes; Ellen R. McGrattan; Edward C. Prescott
  11. How Does China's New Labor Contract Law Affect Floating Workers? By Richard B. Freeman; Xiaoying Li
  12. Gender, Social Norms and Household Production in Burkina Faso By Harounan Kazianga; Zaki Wahhaj
  13. The natural Resource Curse, Fiscal Decentralization, and Agglomeration Economies By Fidel Perez-Sebastian; Ohad Raveh
  14. Coercion, Conflict, and Commodities By Jacobus Cilliers
  15. Consult your gods: the questionable economics of development assistance in Africa By Asongu , Simplice A
  16. Relative Deprivation in China By Chen, Xi
  17. Education and Mortality in India By Motkuri, Venkatanarayana; Mishra, Uday Shankar
  18. Aid and development: Issues and reflections By Michael Tribe
  19. The contribution of African women to economic growth and development in post-colonial Africa : historical perspectives and policy implications By Akyeampong, Emmanuel; Fofack, Hippolyte
  20. Criss-crossing migration By Mattoo, Aaditya; Subramanian, Arvind
  21. Impact evaluation of three types of early childhood development interventions in Cambodia By Bouguen, Adrien; Filmer, Deon; Macours, Karen; Naudeau, Sophie
  22. China's 2008 labor contract law : implementation and implications for China's workers By Gallagher, Mary; Giles, John; Park, Albert; Wang, Meiyan
  23. Welfare and poverty impacts of India's national rural employment guarantee scheme : evidence from Andhra Pradesh By Deininger, Klaus; Liu, Yanyan
  24. Migration and dynamics: How a leakage of human capital lubricates the engine of economic growth By Sorger, Gerhard; Stark, Oded; Wang, Yong

  1. By: Arlen Guarín; Carlos Medina; Jorge Andrés Tamayo
    Abstract: Based on individual data on the population of those arrested in Medellín, we assess whether the change in punishment at age 18, mandated by law, has a deterrent effect on arrests. No deterrent effect was found on index, violent or property crimes, but a deterrence effect was found on non-index crimes, specifically those related to drug consumption and trafficking. This implies an elasticity of arrests with respect to punishment that varies between -1.0 and -6.7 percent. The number of days that arrested individuals take to recidivate is 300, higher for index crimes if they are arrested right after, rather than before, reaching 18 years of age, in which case they are less likely to recidivate in any type of crime. The change in criminal penalties at 18 years of age does not explain future differences in human capital formation among the population that had been arrested immediately after versus immediately before reaching 18 years of age. There is no evidence that the longer length of time to recidivate on the part of individuals arrested for the first time immediately after reaching 18 implies future differences in human capital formation. This suggest that our estimated incapacitation effect would not be explained by the impossibility of the arrested population to recidivate due to their having been imprisoned, but rather by a specific deterrence effect resulting from the harsher experience while in prison of those arrested right after, rather than before, reaching 18.
    Keywords: Crime, Deterrence, Regression Discontinuity. Classification JEL: K42, H56, C21
    Date: 2013–07
  2. By: Bernardo Queiroz (Cedeplar-UFMG)
    Abstract: In this paper I investigate labor force participation of older males in Latin America. The empirical analysis is divided in two parts. First, I use household survey data from twenty-three (23) Latin American and the Caribbean countries, from around 2005, to perform a cross-country analysis on labor force participation focusing on differences rural and urban status, formal and informal relation to the labor market and coverage of public pension programs. I also use the data to show different patterns by income level and stage of the demographic transition to describe historical trends in labor force participation rates of older workers. The second part of the paper, I use data on the 23 Latin American countries to investigate the effects of economic development and social security system in the labor force participation of the elderly for the past 30 years.
    Keywords: labor force participation, economic development elderly, social security, retirement, Latin America
    JEL: J10 J11 J14 J18
  3. By: Kerstin Nolte (GIGA German Institute of Global and Area Studies)
    Abstract: This paper reveals how the outcomes of large-scale land acquisitions made by foreign investors in Zambia are determined by the characteristics of the country’s land governance system. Proposing a conceptual framework adapted from Williamson (1998), and using evidence constituted by expert interviews and focus group discussions, we scrutinize the nature and evolution of the Zambian land governance system, the steps that an investor has to go through in order to attain land and the actors shaping the acquisition process. Shedding light on the acquisition process for land, we find that enforcement of formal rules is currently weak. Depending on how the actors “play the game,” land acquisitions can feature aspects of both “land grabs” and of “development opportunities.” If customary land is targeted, consultation, displacements and compensations become especially problematic issues. Moreover, we find that the power balance between actors has been altered by the presence of these investors. In particular, local authorities have gained greater power and influence.
    Keywords: Large-scale land acquisitions, Zambia, land governance, institutions, land grab
    Date: 2013–04
  4. By: Christina Handschuch (Georg-August-University Göttingen); Meike Wollni (Georg-August-University Göttingen)
    Abstract: Increasing agricultural productivity through the dissemination of improved cropping practices remains one of the biggest challenges of this century. A considerable amount of literature is dedicated to the adoption of improved cropping practices among smallholder farmers in developing countries. While most studies focus on cash crops or main staple crops, traditional food grains like finger millet have received little attention in the past decades. The present study aims to assess the factors that are influencing adoption decisions among finger millet farmers in Western Kenya. Based on cross-sectional household data from 270 farmers, we estimate a multivariate probit model to compare the adoption decisions in finger millet and maize production. While improved practices such as the use of a modern variety or chemical fertilizer are well known in maize production, they are less common in finger millet production. Results show that social networks as well as access to extension services play a crucial role in the adoption of improved finger millet practices, while the same variables are of minor importance for the adoption of improved maize practices. A Cobb-Douglas production function shows a positive effect of modern varieties and chemical fertilizer on finger millet yields.
    Keywords: finger millet; Kenya; technology adoption; social networks
    Date: 2013–07–15
  5. By: Christina Handschuch (Georg-August University Göttingen); Meike Wollni (Georg-August University Göttingen)
    Abstract: Specialization and commercialization of agricultural production is seen as a key to lift small-scale farmers in developing countries out of poverty. While participation in high-value markets has been shown to be beneficial for farmers, especially the smallest and least endowed farmers are often excluded from these markets due to high transaction costs. In this context, marketing traditional food crops poses an important income alternative. The present study aims to contribute to the scarce literature on traditional food crops by analyzing the factors influencing (a) the households’ decision to participate in the finger millet market and (b) the selling prices obtained by the household. A special focus of our analysis lies on the role of gender and collective action. Based on household data from 270 finger millet producers, a probit model on market participation and a linear regression model on the selling price are estimated. Results show that participation in a finger millet group positively influences the decision to market finger millet. While female household members who do not participate in a group are disadvantaged in terms of selling prices, there is no gender effect on selling prices if a female household member participates in a finger millet group.
    Keywords: Kenya; finger millet; marketing; collective action; gender
    Date: 2013–07–15
  6. By: Kamel Louhichi (European Commission – JRC - IPTS); Sergio Gomez y Paloma (European Commission – JRC - IPTS); Hatem Belhouchette (Mediterranean Agronomic Institute of Montpellier, France); Thomas Allen (Mediterranean Agronomic Institute of Montpellier & University of Perpignan Via Domitia, France); Jacques Fabre (Mediterranean Agronomic Institute of Montpellier & DIATAE, Ingénierie des territoires agricoles, France); María Blanco Fonseca (Technical University of Madrid, Spain); Roza Chenoune (Mediterranean Agronomic Institute of Montpellier, France); Szvetlana Acs (European Commission – JRC - IPTS); Guillermo Flichman (Mediterranean Agronomic Institute of Montpellier, France)
    Abstract: This report describes the generic template of a farm-household model for use in the context of developing countries in order to gain knowledge on food security and rural poverty alleviation under different economic conditions and agri-food policy options. This model, called FSSIM-Dev (Farming System Simulator for Developing Countries), is an extension of the FSSIM model developed within the SEAMLESS project. Contrary to most well-known household models which are econometric based, FSSIM-Dev is a non-linear optimization model which relies on both the general household's utility framework and the farm's production technical constraints, in a non-separable regime. It is referred to as a static Positive Mathematical Programming (PMP) which optimise at farm household level, with the opportunities to simulate the exchange of production factors among farm-households. FSSIM-Dev is designed to capture five key features of developing countries or/and rural areas: (i) non-separability of production and consumption decisions due to market imperfection; (ii) interaction among farm-households for market factors; (iii) heterogeneity of farm households with respect to their both consumption baskets (demand side) and resource endowments (supply side); (iv) inter-linkage between transaction costs and market participation decisions; and (v) the seasonality of farming activities and resource use. Model use is illustrated in this report with an analysis of the combined effects of rice support policy, namely fertiliser subsidy policy, and improved rice cropping managements (practices) on the livelihood of representative farm households in Sierra Leone. Results show that, first, the improvement of rice cropping managements is a key factor to boost significantly farm household income in the studied region. Second, the amount of N fertilizer required for, mainly, upland rice appears too high and costly and could not be applied by farm households without policy support (i.e. subsidies). Third, both the simulated rice policy and the improved crop managements would increase farm productivity and boost household income but they are not sufficient to fight poverty since most of the farm household types would continue to live below the extreme poverty line of 1 USD-equivalent per day.
    Keywords: Food Security, Poverty, Impact assessment, Seed Policy, Farm household model, Sierra Leone
    Date: 2013–03
  7. By: de Hoop, Jacobus (Understanding Children's Work); Rosati, Furio C. (University of Rome Tor Vergata)
    Abstract: Cash transfer programs are widely used in settings where child labour is prevalent. Even if many of these programs are explicitly implemented to improve children's welfare, in theory their impact on child labour is undetermined. This paper systematically reviews the empirical evidence on the impact of cash transfers, conditional and unconditional, on child labour. We find no evidence that cash transfer interventions increase child labour in practice. On the contrary, there is broad evidence that cash transfers, conditional and unconditional, lower both the extensive and intensive margin of child labour. Our findings underline the usefulness of cash transfers as a relatively safe policy instrument to improve child welfare, but also point to knowledge gaps that would need to be addressed in future evaluations to provide detailed policy advice.
    Keywords: cash transfers, child labour, impact evaluation, review
    JEL: I28 I38 O20
    Date: 2013–07
  8. By: Kudo, Toshihiro; Kumagai, Satoru; Ishido, Hikari
    Abstract: The development of agriculture is a main pillar of Myanmar’s growth strategies. It is natural for the Myanmar government to prioritize agriculture as a source of economic growth, since it accounted for 36% of GDP, employs a majority of labor force, and generates nearly 30% of exports as of 2010. Although the agricultural share in GDP and employment usually declines as an economy grows, it is not a sunset industry in Myanmar. Methods exist for increasing agriculture’s value added other than the growth of labor and land inputs. The key is to enhance three productivity measures: labor, land, and total productivity. We call this strategy "Agriculture Plus Plus."
    Keywords: Myanmar, Agriculture, Agricultural development, Development policy, Agriculture Plus Plus, Senary Sector of Agriculture, Growth Strategy, Myanmar (Burma)
    JEL: O13 O53 Q10
    Date: 2013–06
  9. By: Diana Cheung (Centre d'Economie de la Sorbonne); Ysaline Padieu (Centre d'Economie de la Sorbonne)
    Abstract: This paper estimates the impact of the New Cooperative Medical Scheme (NCMS) on household saving across income quartiles in rural China. We use data from the China Health and Nutrition Survey for the 2006 wave and we run an ordinary least squares regression. We control for the endogeneity of NCMS participation by using an instrumental variable strategy. We find evidence that NCMS has a negative impact on savings of lower-middle-income participants, while it does not affect the poorest households. The negative effect of NCMS on savings of middle-income participants holds when we use propensity score matching estimations as a robustness check.
    Keywords: Rural China, New Cooperative Medical Scheme, health insurance, Chinese savings and consumption, propensity score matching.
    JEL: C21 D1 I18 O53
    Date: 2013–07
  10. By: Thomas J. Holmes; Ellen R. McGrattan; Edward C. Prescott
    Abstract: Despite the recent rapid development and greater openness of China's economy, FDI flows between China and technologically advanced countries are relatively small in both directions. We assess global capital flows in light of China's quid pro quo policy of exchanging market access for transfers of technology capital—accumulated know-how such as research and development that can be used in multiple production locations. We first provide empirical evidence of this policy and then incorporate it into a multicountry dynamic general equilibrium model. This extension leads to a significantly better fit of the model to data. We also find large welfare gains for China—and welfare losses for its FDI partners—from quid pro quo.
    JEL: F23 F41 O33 O34
    Date: 2013–07
  11. By: Richard B. Freeman; Xiaoying Li
    Abstract: China’s new Labor Contract Law took effect on January 2008 and required firms to give migrant workers written contracts, strengthened labor protections for workers and contained penalties for firms that did not follow the labor code. This paper uses survey data of migrant workers in the Pearl River Delta before and after the law and a retrospective question on when workers received their first labor contract to assess the effects of the law on labor outcomes. The evidence shows that the new law increased the percentage of migrant workers with written contracts, which in turn raised social insurance coverage, reduced the likelihood of wage arrears, and raised the likelihood that the worker had a union at their workplace.
    JEL: J01 J28 J53 K31
    Date: 2013–07
  12. By: Harounan Kazianga (Oklahoma State University); Zaki Wahhaj (Department of International Development, Oxford University)
    Abstract: Empirical studies of intra-household allocation has revealed that, in many instances, gender is an important determinant in the allocation of resources within the household. Yet, within the theoretical literature, why gender matters within the household remains an open question. In this paper, we propose a simple model of intra-household allocation based on a particular social institution for the organisation of agricultural production practised among certain ethnic groups in West Africa. We highlight how this institution, while resolving certain problems of commitment and informational asymmetry, can also lead to a gendered pattern in the allocation of productive resources and consumption within the household. Using a survey of agricultural households in Burkina Faso, we show, consistent with this theory, that plots owned by the head of the household are farmed more intensively, and achieves higher yields, than plots with similar characteristics owned by other household members. Male and female family members who do not head the household achieve similar yields. We argue that the higher yields achieved by the household head may be explained in terms of social norms that require him to spend the earnings from some plots under his control exclusively on household public goods, which in turn provides other family members the incentive to voluntarily contribute labour on his farms. Using expenditures data, and measures of rainfall to capture weather-related shocks to agricultural income, we show that the household head has, indeed, a higher marginal propensity to spend on household public goods than other household members. The fact that the head of the household is usually male accounts for the gendered pattern in labour allocation and yields across different farm plots.
    Keywords: Intra-household allocation, social norms, gender, household public goods
    JEL: O12 D13 Q1
    Date: 2010–05
  13. By: Fidel Perez-Sebastian; Ohad Raveh
    Abstract: Natural resource abundance is a blessing for some countries, but a curse for othes. We show that differences across countries in the degree of fiscal decentralisation can contribute to this divergent outcome. First, the paper presents a unified theory that combines political and market mechanisms to illustrate why natural resource booms can create negative effects in fiscally decentralized nations. Thereafter, we employ Sachs and Warner's cross-sectional data, and also construct a new panel-data sample to test the hypothesis. Results support the joint effect of the two variables.
    Keywords: Natural resources, economic growth, fiscal decentralization, agglomeration economies, tax competition
    JEL: O13 O18 O40 Q32
    Date: 2013
  14. By: Jacobus Cilliers
    Abstract: Why do armed groups sometimes coerce and sometimes not? Civilian suffering due to coercion in conflicts is larger; yet, anecdotal evidence suggests that armed groups often choose not to coerce. To explain the observed variation in coercive practices, I combine a two-sector specific-factos trade model with a model of violence. Armed tgroups operating in the resourc esector and allocate military reosurces between conflict and coercion, which captures more land and labour respectively. The model shows that coercion depends, not only on economic factors, but also the military landscape and the interactin between the two. First, coercion is higher if labour scare or extraction labour-intensive. Second, coercion is high if one group is dominant, relative to the others. Third, the impact of the prcie of the commodity depends on the distribution of military strength: coercion increases with price if one group is dominant, but this effect is reversed if military power is highly decentralised. The first result is consistent with historical accounts of the re-emergence of serfdom in 16th century Russia, and the prevalence of slavery in West Africa. The second result explains why coercion decreased in the Kivu privinces after 2002: the Rwandan Army, by far the most powerful group, evacuated. The third result explains why the rubber boom in late 19th lead to a highly coercive regime in the Congo Free State, but less so in Amazonia. The Congo Free State had a monopoly, but conflict between Spanish and Portuguese colonies escalated during the boom, reducing their coercive power. It further explains why, during the protracted Civil War in Sierra Leone, coercion was common in the rice plantations, but not the diamond mines. The number of battles were higher in the diamond-rich areas, but level of civilian victimisation less. With land the valueable factor of productions, violence was allocated to conflict, not coercion.
    Keywords: conflict, coercion, slavery, natural resources, Sierra Leone civil war, eastern DRC
    JEL: D21 D3 D24 D41 D74 N37 N47 N57 Q34
    Date: 2013
  15. By: Asongu , Simplice A
    Abstract: This paper assesses the aid-development nexus in 52 African countries using updated data (1996-2010) and a new indicator of human development (adjusted for inequality). The effects of Total Net Official Development Assistance (NODA), NODA from the Development Assistance Committee (DAC) and NODA from Multilateral donors on economic prosperity (at national and per capita levels) are also examined. The findings broadly indicate that development assistance is detrimental to GDP growth, GDP per capita growth and inequality adjusted human development. The magnitude of negativity (which is consistent across specifications and development dynamics) is highest for NODA from Multilateral donors, followed by NODA from DAC countries. Given concerns on the achievement of the MDGs, the relevance of these results point to the deficiency of foreign aid as a sustainable cure to poverty in Africa. Though the stated intents or purposes of aid are socio-economic, the actual impact from the findings negates this. It is a momentous epoque to solve the second tragedy of foreign aid; it is high time economists and policy makers start rethinking the models and theories on which foreign aid is based. In the meantime, it is up to people who care about the poor to hold aid agencies accountable for piecemeal results. Policy implications and caveats are discussed.
    Keywords: Foreign Aid; Political Economy; Development; Africa
    JEL: B20 F35 F50 O10 O55
    Date: 2013–07–20
  16. By: Chen, Xi
    Abstract: Relative deprivation (RD), also known as relative poverty , an idea implicitly put forward by Adam Smith in The Wealth of Nations and formally conceptualized by Runciman (1966), refers to the discontent people feel when they compare their positions to others and realize that others in the group possess something that they do not have. RD is important to Chinese people as reflected in the traditional saying “it is better to be the head of a chicken than the tail of a phoenix”, indicating that taking a relatively good position benefits people in the Chinese society. RD is also a pressing issue for China after its three decade unprecedented economic growth accompanied by inequalities at historically high levels. This entry reviews key measures of RD and empirical findings for China. I also discuss some of the most pressing policy issues with regard to RD.
    Keywords: Relative Deprivation, Inequality, Poverty, China
    JEL: B4 D1 D3 I1 I3 O2
    Date: 2013–01–08
  17. By: Motkuri, Venkatanarayana; Mishra, Uday Shankar
    Abstract: The present paper made an attempt to understand the impact schooling/education on the mortality rate in India, in a developing country context. Present study aims at looking into differences in mortality rate by the status of completion of primary schooling.
    Keywords: Demography, India, Education, Mortality
    JEL: I10 I15 J11 J18
    Date: 2013–04
  18. By: Michael Tribe (Department of Economics, University of Strathclyde)
    Abstract: The paper has three main sections. The first is a review of two particular propositions which appear in Dambisa Moyo’s 2009 book Dead Aid which were not subjected to rigorous analysis in the reviews which appeared following its publication. The finding is that neither proposition survives serious scrutiny – that aid is responsible for most of sub-Saharan Africa’s economic woes and that the international bond market represents a viable alternative to foreign aid for the finance of development-oriented investment. The second questions some of the characteristics and uses of the World Bank’s Country Policy and Institutional Assessment (CPIA), particularly focussing on the use of an essentially ordinal measure in cardinal applications. The third subjects the UK Department for International Development’s Needs-Effectiveness Index to critical review, concluding that further consideration of its attributes is necessary.
    Keywords: developing countries, foreign aid, sub-Saharan Africa, book review
    JEL: F35 O2 O24 O55 Y3
    Date: 2013–06
  19. By: Akyeampong, Emmanuel; Fofack, Hippolyte
    Abstract: This paper draws on history, anthropology, and economics to examine the dynamics and extent of women's contribution to growth and economic development in post-colonial Africa. The paper investigates the paradox of increased female enrollment in education and the persistence of gender discrimination in labor force participation; it also considers the overwhelming importance of the informal economy in female economic activity. The first axis the paper studies is whether reducing educational gender gaps enhances growth in per capita gross domestic product and reduces female fertility rates and infant mortality. The question is, why would some African countries resist this pattern? The second axis examines agriculture and home production. Women's economic activities in the informal economy largely represent the commercialization of domestic skills and dependence on social networks. The shunting of female production to the informal sector in the male-dominated colonial economy is easy to understand, but why has the informal economy persisted where female production is concerned well beyond the colonial period? The paper attempts to explain these trajectories by using country case studies on Senegal, Botswana, and Kenya. Although women's contribution to growth and economic development seems to be positive and significant in predominantly Christian and mineral-rich economies, it is more constrained in pronounced Muslim dominated countries and agrarian economies. At the same time, impressive uniform growth in informal sector production in recent years suggests that occupational job segregation and gender inequality remain strong across the region, despite the apparent loosening of traditional norms and cultural beliefs, most notably illustrated by the reduction in educational gender gaps and increased female labor force participation rates.
    Keywords: Gender and Development,Population Policies,Primary Education,Gender and Law,Achieving Shared Growth
    Date: 2013–07–01
  20. By: Mattoo, Aaditya; Subramanian, Arvind
    Abstract: The current perspective on the flow of people is almost exclusively focused on permanent migration from poorer to richer countries and on immigration policies in industrial countries. But international mobility of people should no longer be seen as a one-time event or one-way flow from South to North. The economic crisis has accentuated the longer-term shift in location incentives for people in industrial countries. As consumers, they could obtain better and cheaper access to key services -- such as care for the elderly, health, and education -- whose costs at home are projected to increase in the future, threatening standards of living. As workers, they could benefit from new opportunities created by the shift in economic dynamism from industrial to emerging countries. But subtle incentives to stay at home, such as lack of portability of health insurance and non-recognition of qualifications obtained abroad, inhibit North-South mobility and need to be addressed. Furthermore, if beneficiaries of movement abroad exert countervailing power against those who support immigration barriers at home, then that could lead to greater inflows of people, boosting innovation and growth in the North. Eventually, growing two-way flows of people could create the possibility of a grand bargain to reduce impediments to the movement of people at every stage in all countries and help realize the full benefits of globalization.
    Keywords: Tertiary Education,Population Policies,Health Monitoring&Evaluation,Emerging Markets,Health Systems Development&Reform
    Date: 2013–07–01
  21. By: Bouguen, Adrien; Filmer, Deon; Macours, Karen; Naudeau, Sophie
    Abstract: Scaling up early childhood development services has the potential to increase children's cognitive and socio-emotional development and promote school readiness in a large segment of the population. This study used a randomized controlled trial approach to evaluate three scaled-up programs designed to widen access to early childhood development services: formal preschools, community preschools, and home-based services. The impacts of all three programs fell short of expectations because of two key flaws in how they were scaled up. First, implementation did not receive due attention; as a result, school facilities were not completed as planned, community-based programs were not always established, and low, irregular stipends created difficulties in hiring and retaining teachers. Second, the services that were available were not promoted and thus not used as widely as anticipated. The results imply that the quality of programs supplied is critical, as is attention to the demand side of the problem. The finding that these programs fell short of expectations does not mean that interventions such as these are ineffective. Rather, it indicates that quality and demand require careful attention in attempts to scale up early childhood development interventions, and any problems should be addressed prior to evaluating effectiveness.
    Keywords: Primary Education,Educational Sciences,Education For All,Youth and Governance,Adolescent Health
    Date: 2013–07–01
  22. By: Gallagher, Mary; Giles, John; Park, Albert; Wang, Meiyan
    Abstract: This paper presents empirical evidence from household and firm survey data collected during 2009-2010 on the implementation of the 2008 Labor Contract Law and its effects on China's workers. The government and local labor bureaus have made substantial efforts to enforce the provisions of the new law, which has likely contributed to reversing a trend toward increasing informalization of the urban labor market. Enforcement of the law, however, varies substantially across cities. The paper analyzes the determinants of worker satisfaction with the enforcement of the law, the propensity of workers to have a labor contract, workers'awareness of the content of the law, and their likelihood of initiating disputes. The paper finds that all of these factors are highly correlated with the level of education, especially for migrants. Although higher labor costs may have had a negative impact on manufacturing employment growth, this has not led to an overall increase in aggregate unemployment or prevented the rapid growth of real wages. Less progress has been made in increasing social insurance coverage, although signing a labor contract is more likely to be associated with participation in social insurance programs than in the past, particularly for migrant workers.
    Keywords: Labor Markets,Labor Policies,Labor Standards,Work&Working Conditions,Labor Law
    Date: 2013–07–01
  23. By: Deininger, Klaus; Liu, Yanyan
    Abstract: This paper uses a three-round 4,000-household panel from Andhra Pradesh together with administrative data to explore short and medium-term poverty and welfare effects of the National Rural Employment Guarantee Scheme. Triple difference estimates suggest that participants significantly increase consumption (protein and energy intake) in the short run and accumulate more nonfinancial assets in the medium term. Direct benefits exceed program-related transfers and are most pronounced for scheduled castes and tribes and households supplying casual labor. Asset creation via program-induced land improvements is consistent with a medium-term increase in assets by nonparticipants and increases in wage income in excess of program cost.
    Keywords: Housing&Human Habitats,Rural Poverty Reduction,Labor Policies,Labor Markets,Poverty Monitoring&Analysis
    Date: 2013–07–01
  24. By: Sorger, Gerhard; Stark, Oded; Wang, Yong
    Abstract: This paper studies the growth dynamics of a developing country under migration. Assuming that human capital formation is subject to a strong enough, positive intertemporal externality, the prospect of migration will increase growth in the home country in the long run. If the external effect is less strong, there exists at least a level effect on the stock of human capital in the home country. In either case, the home country experiences a welfare gain, provided that migration is sufficiently restrictive. These results, obtained in a dynamic general equilibrium setting, extend and strengthen the results of Stark and Wang (2002) obtained in the context of a static model. --
    Keywords: Overlapping-generations growth model,Intertemporal human capital externalities,Long-run growth effect of the prospect of migration
    JEL: F22 I30 J24 J61 O15 O40
    Date: 2013

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