nep-dev New Economics Papers
on Development
Issue of 2015‒07‒11
seven papers chosen by
Jacob A. Jordaan
Universiteit Utrecht

  1. Governance and the Effectiveness of Public Health Subsidies By Dizon-Ross, Rebecca; Dupas, Pascaline; Robinson, Jonathan
  2. Impact of an educational demand-and-supply policy on girls' education in West Africa: Heterogeneity in income, school environment and ethnicity By Fatoke-Dato, Mafaïzath A.
  3. The Effect of Savings Accounts on Interpersonal Financial Relationships: Evidence from a Field Experiment in Rural Kenya By Dupas, Pascaline; Keats, Anthony; Robinson, Jonathan
  4. Does tenure insecurity explain the variations in land-related investment decisions in rural Ethiopia? By Muna Shifa; Murray Leibbrandt; Martin Wittenberg
  5. How do educational transfers affect child labour supply and expenditures? Evidence from Indonesia of impact and flypaper effects. By de Silva, Indunil; Sumarto, Sudarno
  6. Persistence of informality in a developing country By Juan Muro; Jhon James Mora
  7. Impact of income shock on children's schooling and labor in a West African country By Fatoke-Dato, Mafaïzath A.

  1. By: Dizon-Ross, Rebecca; Dupas, Pascaline; Robinson, Jonathan
    Abstract: Heavily subsidizing essential health products through existing health infrastructure has the potential to substantially decrease child mortality in sub-Saharan Africa. There is, however, widespread concern that poor governance and in particular limited accountability among health workers seriously undermines the effectiveness of such programs. We performed innovative audits on bed net distribution programs in three countries (Ghana, Kenya and Uganda) to investigate local agency problems and their determinants in the allocation of targeted subsidies. Overall, agency concerns appear modest. Around 80% of the eligible receive the subsidy as intended and leakage to the ineligible appears limited, even when the ineligible have a high willingness to pay. The estimated level of mistargeting only modestly affects the cost-effectiveness of free distribution.
    Keywords: extortion; leakage; motivation; shirking
    JEL: D73 H11 I15 I38
    Date: 2015–07
  2. By: Fatoke-Dato, Mafaïzath A.
    Abstract: The present paper measures the impact of an educational demand-and-supply side policy in a developing country, Benin. This West African country has introduced in 2006 a program to eliminate school fees, build schools and recruit teachers. The data used are the National Demographic and Health Surveys of 2006 and 2012. The difference-in-differences estimations reveal that the policy has lead to a huge increase in enrollment and attendance of birth cohorts of children eligible for the program. Indeed, children stayed on average two more years in school following the implementation of the program. Nevertheless, the gender disparities are tenacious. The heterogeneity analyses suggest that girls' schooling is also influenced by the school infrastructure and the cultural beliefs.
    Keywords: Policy evaluation,Education policy,School fees,Inequality,Infrastructures
    JEL: H43 I24 I25 I28
    Date: 2015
  3. By: Dupas, Pascaline; Keats, Anthony; Robinson, Jonathan
    Abstract: The welfare impact of expanding access to bank accounts depends on whether accounts crowd out pre-existing financial relationships, or whether private gains from accounts are shared within social networks. To study the effect of accounts on financial linkages, we provided free bank accounts to a random subset of 885 households. Within households, we randomized which spouse was offered an account and find no evidence of negative spillovers to spouses. Across households, we document positive spillovers: treatment households become less reliant on grown children and siblings living outside their village, and become more supportive of neighbors and friends within their village.
    Keywords: financial access; social insurance; spillovers
    JEL: C93 D14 G21 O16
    Date: 2015–07
  4. By: Muna Shifa (School of Economics, University of Cape Town); Murray Leibbrandt (SALDRU, School of Economics, University of Cape Town); Martin Wittenberg (DataFirst, School of Economics, University of Cape Town)
    Abstract: We examine the relationship between land tenure security and land-related investments in rural Ethiopia. We control for both household heterogeneity and possible endogeneity of tenure security in estimating the impact of tenure security on investment. Empirical results show that variations in levels of tenure security do not explain the observed differences in investment behaviour among farm households in rural Ethiopia. In contrast, land size, access to labour and extension services, and location are seen to be important determinants of land-related investments. The results suggest that without addressing other barriers to investment, land reforms (titling) may not be sufficient to improve land-related investments.
    Keywords: Property rights, land tenure, land titling, agricultural extension services, Africa
    JEL: P14 Q15 Q16
    Date: 2015
  5. By: de Silva, Indunil; Sumarto, Sudarno
    Abstract: This study utilises a large nationally representative household survey of unusual scope and richness from Indonesia to analyse how the receipt of educational transfers, scholarships and related assistance programmes affects the labour supply of children and the marginal spending behaviour of households on children’s educational goods. We found strong evidence of educational cash transfers and related assistance programmes significantly decreasing the time spent by children in income-generating activities in Indonesia. Households receiving educational transfers, scholarships and assistance were also found to spend more at the margin on voluntary educational goods. These results were stronger for children living in poor families. Our results are particularly relevant for understanding the role of cash transfers and educational assistance in middle-income countries where enrolment rates are already at satisfactory levels, but the challenge is to keep the students in school at post-primary levels
    Keywords: Child labour, cash transfers, education expenditures and flypaper effects.
    JEL: D6 H4 I28 I38
    Date: 2014–08–08
  6. By: Juan Muro (Economics Department of Alcala University (Spain);); Jhon James Mora (Economics Department of Icesi University (Colombia). Member of Alcametrica at the University of Alcalá and of the Quantitative methods research at Icesi University)
    Abstract: Informality is a common phenomenon in developing countries and an unusual one in industrialized countries. The persistence of informal employment is indicative of the impossibility of moving out of this status for a certain period of time. Using pseudo panel data, empirical evidence is presented to show that this phenomenon occurs in a developing country like Colombia where education helps mitigate said persistent occurrence. The authors also present evidence that a minimum salary increase does not only result in increased informality, but also increases the persistence of informality. This kind of evidence can be used for discussing the persistence of informality in other developing countries.
    Keywords: Dynamic Informality, Pseudo Panel, Probit Models
    JEL: C36 C51 J81 J88
    Date: 2015–02
  7. By: Fatoke-Dato, Mafaïzath A.
    Abstract: This study measures the impact of a flood in 2010 in Benin on children's schooling and labor. The data used are the National Demographic and Health Surveys (DHS) of 2006 and 2012. The difference in differences estimates points out a significant decrease in income for farm households following the shock. The income shock affected enrollment of girls the most with a decrease in enrollment of 5.99% for girls in rural areas, of 4.45% for boys in rural areas, of 7.76% for girls in urban areas and of 6.17% for boys in urban areas. Meanwhile, the likelihood to be a domestic worker or a farmer has significantly increased. Despite the removal of school fees in 2006, the households still withdrew their children from school after this income shock. These results imply that income shocks could be a threat to the Universal Primary Education.
    Keywords: Natural disasters,Education,Income shock,Child labor
    JEL: I24 O55 Q54
    Date: 2015

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