nep-dev New Economics Papers
on Development
Issue of 2022‒07‒25
eleven papers chosen by
Jacob A. Jordaan
Universiteit Utrecht

  1. The Inequality (or the Growth) we Measure: Data Gaps and the Distribution of Incomes By Facundo Alvaredo; Mauricio de Rosa; Ignacio Flores; Marc Morgan
  2. Does it Matter Where You Grow up? Childhood Exposure Effects in Latin America and the Caribbean By Muñoz, Ercio
  3. Does Violent Conflict Affect Labor Supply of Farm Households? The Nigerian Experience By John Chiwuzulum Odozi; Ruth Uwaifo Oyelere
  4. Unveiling the Cosmic Race: Racial Inequalities in Latin America * By Luis Guillermo Woo-Mora
  5. Macroeconomic Determinants of South Africa's Post-Apartheid Income Distribution By Adam Aboobaker
  6. Perceived Temperature, Trust and Civil Unrest in Africa By Gabriel Aboyadana; Marco Alfano
  7. School drop out and farm input subsidies: gender and kinship heterogeneity in Malawi By Martin Mwale; Dieter von Fintel; Anja Smith
  8. Wealth in Latin America By Nestor Gandelman; Rodrigo Lluberas
  9. Chinese Aid and Democratic Values in Latin America By Andreas Freytag; Miriam Kautz
  10. The Heterogeneous Labor Market Effects of the Venezuelan Exodus on Female Workers: Evidence from Colombia By Andrea Otero-Cortés; Tribín-Uribe, Ana María; Mojica, Tatiana
  11. Modeling and Forecasting Agricultural Commodity Support in the Developing Countries By Zhao, Jing; Miller, J. Isaac; Binfield, Julian; Thompson, Wyatt

  1. By: Facundo Alvaredo (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, WIL - World Inequality Lab , INET - Institut National des Etudes Territoriales); Mauricio de Rosa (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, WIL - World Inequality Lab , UDELAR - Universidad de la República [Montevideo]); Ignacio Flores (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, WIL - World Inequality Lab , CUNY - City University of New York [New York]); Marc Morgan (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, WIL - World Inequality Lab , University of Geneva [Switzerland])
    Abstract: There is a large gap between income estimates used in inequality studies and macroeconomic statistics. This makes it hard to assess how economic growth is distributed across the population, and to what extent mainstream distributional statistics are an accurate representation of income flows. We take stock of these discrepancies by confronting estimates of the income distribution from surveys, administrative records and aggregates from the system of national accounts, thoroughly documenting them over the past two decades for ten Latin American countries. We find that surveys only account for around half of the macroeconomic income in the region. Measurement gaps account for just over half of the overall gap on average, while the rest is due to conceptual differences across data sets. Measurement gaps have been growing fast for many countries, the bulk being due to non-covered capital income. We also compare the top tails in administrative data and surveys, finding diverging averages-especially for non-wage incomes-and different shapes. We discuss the degree to which inequality levels and trends could be affected.
    Keywords: Surveys,national accounts,administrative data,data gaps,income distribution,Latin America
    Date: 2022–06–10
    URL: http://d.repec.org/n?u=RePEc:hal:wilwps:halshs-03693223&r=
  2. By: Muñoz, Ercio
    Abstract: I study whether the observed differences in intergenerational educational mobility across regions in Latin America and the Caribbean are due to the sorting of families or the effect of grow ing up in these different places. I exploit differences in the age of children at the time their families move across locations to isolate regional childhood exposure effects from sorting. I find a convergence rate of 3.5% per year of exposure between age 1 to 11, implying that children who move at the age of 1 would pick up 35% of the observed differences in mobility between origin and destination. These results are robust to using a speci fication that identifies the effect of place within households, the use of only anomalously high migration outflows, instrument ing the choice of destination with historical migration, and a combination of both approaches.
    Keywords: Docentes, Educación, Familia, Investigación socioeconómica, Niñez, Políticas públicas,
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:dbl:dblwop:1843&r=
  3. By: John Chiwuzulum Odozi (Department of Agricultural Economics and Extension, Ajayi Crowther University Oyo, Nigeria); Ruth Uwaifo Oyelere (Department of Economics Agnes Scott College, Decatur, Ga; Institute for the Study of Labor (IZA), Bonn Germany and Global Labor Organization (GLO))
    Abstract: Nigeria has experienced bouts of violent conflict in different regions over the last few decades leading to significant loss of life. In this paper, we explore the potential short and accumulated long term effects of such conflict on labor supply of agricultural households. Using a nationally representative panel dataset for Nigeria in combination with armed conflict data, we estimate the effect of violent conflict on a farm household members labor supply. Our findings suggest that exposure to violent conflict significantly reduces the total number of hours the farm household head works and also deceases total family labor supply for agricultural households.
    Keywords: Violence, Nigeria, Conflict, Boko Haram, Farm Households, Labor Supply
    JEL: Q10 Q12 O1 D74
    Date: 2021–04
    URL: http://d.repec.org/n?u=RePEc:hic:wpaper:345&r=
  4. By: Luis Guillermo Woo-Mora (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: This paper uses skin tone and income information for over a hundred thousand individuals across 31 Latin American countries to study racial inequalities during the last decade. First, I estimate the welfare consequences of racial inequality. Subnational regions with higher income inequality between racial groups have worse economic development. Next, I provide evidence of a skin tone income premium. In an eleven-color palette, each darker shade in skin tone on average leads to a 3% decrease in income, with heterogeneity across countries. My analysis suggests racial discrimination is the main mechanism behind this income premium.
    Keywords: Race,Inequality,Economic Development,Discrimination
    Date: 2022–03
    URL: http://d.repec.org/n?u=RePEc:hal:wilwps:halshs-03693205&r=
  5. By: Adam Aboobaker (UMass Amherst - University of Massachusetts [Amherst] - UMASS - University of Massachusetts System, WITS - University of the Witwatersrand [Johannesburg])
    Abstract: South Africa's distributive regime is striking to all who observe it. This paper situates developments in post-apartheid income distribution within key macroeconomic developments and debates, arguing that deterioration in the wage share between 2000 and 2008 is better explained by factors associated with the commodity boom, rather than those associated with neoliberalism, such as austere fiscal policy, trade openness, or 'financialization.' The distribution of market income has undergone developments at the sector level post-apartheid that have received little attention. While the aggregate wage share remains close to its initial level at the start of democracy, the wage share in mining is 12 percentage points lower than at the beginning of 1993, after recovering somewhat from a nearly 20 percentage point decline over the commodity boom period. The ratio of consumer prices to sector level producer prices is the 'wedge' between real consumption and real product wage rates and in theory a key relative price determining distributive outcomes. In sectors like mining, where real product and real consumption wage rates may depart in significant part, workers may not easily observe the real product wage and nominal productivity shocks may weakly carry through to wages. Other sectors have different dynamics. The wage share in manufacturing has stabilized at a level nearly 20 percentage points higher than where it was in 2005 and in utilities the wage share resembles a mountain with a steep climb during the first fifteen years of democracy and a sharp cliff edge around the Great Recession. This paper reviews existing debates about macroeconomic policy and performance, reflecting on how they relate to the evolving wage share before considering evidence from autoregressive distributed-lag and error correction models. The concluding analysis calls for reorienting the focus of predominant critique of post-apartheid macro policy from insufficient state allocation of resources toward social policy to a critique concerning the state's failure to mobilize the necessary resources to drive forth rapid structural transformation.
    Date: 2022–05
    URL: http://d.repec.org/n?u=RePEc:hal:wilwps:halshs-03693225&r=
  6. By: Gabriel Aboyadana (Department of Economics, University of Strathclyde and School of Education, University of Glasgow); Marco Alfano (Department of Economics, University of Strathclyde and Centre for Research and Analysis of Migration, University College London)
    Abstract: This paper documents a significant effect of short-term temperature fluctuations on attitudes towards institutions and on civil unrest in Africa. Combining attitudinal survey and climate data, we calculate temperature as perceived by respondents via an algorithm that combines different meteorological variables. The results show that daily temperature anomalies at the location of interview increase self-reported mistrust in government and intentions to vote for opposition parties. Effects are particularly strong in poor countries where temperature anomalies also increase self-reported intentions to protest. Accordingly, we find that temperature anomalies also increase incidences of protests and riots. Evidence suggests that effects are not driven by changes in agricultural incomes.
    Keywords: Climate, Trust, Conflict
    JEL: D74 Q54 N57
    Date: 2021–04
    URL: http://d.repec.org/n?u=RePEc:hic:wpaper:344&r=
  7. By: Martin Mwale (Department of Economics and Research on Socioeconomic Policy (ReSEP), Stellenbosch University); Dieter von Fintel (Department of Economics and Research on Socioeconomic Policy (ReSEP), Stellenbosch University); Anja Smith (Department of Economics and Research on Socioeconomic Policy (ReSEP), Stellenbosch University)
    Abstract: An emerging interdisciplinary literature explores how kinship practices affect household resource allocation through efficiency of production and consumption. This paper focuses on a key gender norm - how a resource transfer to households affects school drop out of girls relative to boys, under different kinship practices. Specifically, we investigate how Malawi's farm input subsidy programme affects gendered school drop out across matrilineal and patrilineal communities. Because of matrilineal practices, girls facilitate the inter-generational transfer of wealth in these communities. They inherit property and often \emph{co-reside} with their parents after marriage, taking care of the parents in their old age. Boys undertake a similar duty in patrilineal communities. Our results indicate that school drop out decreases among girls who live in matrilineal households that participate in the subsidy programme. However, the impact is limited to matrilineal communities where couples reside in women's birth home-matrilocal home. School drop out is not affected by FISP receipt in patrilocal communities, where couples settle in the natal home of men. Furthermore, expenditure on schooling increases among matrilocal girls whose household receive FISP, and girls residing in the matrilocal communities experience a reduction in time spent on domestic chores once their household receives the subsidy. Our results suggest that a resource transfer to households reduces gender gaps in school drop out only in communities where investment in women is more valued by traditional practices than the investment in men.
    Keywords: School drop out, Gender, Subsidy, Malawi, Sub-Sahara
    JEL: A13 D13 D33 I24
    Date: 2022
    URL: http://d.repec.org/n?u=RePEc:sza:wpaper:wpapers371&r=
  8. By: Nestor Gandelman (Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales. Departamento de Economía); Rodrigo Lluberas (Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales. Departamento de Economía)
    Abstract: This paper presents harmonized indicators for household wealth, its components, and its determinants (including intergenerational mobility) in four Latin American countries (Chile, Colombia, Mexico and Uruguay), using Spain as a comparison benchmark. It is based on recently available microdata from financial surveys. The paper analyzes the relationship between wealth indicators and sociodemographic characteristics of household heads (age, education, gender, marital status).
    Keywords: wealth, income, distribution, Latin America
    Date: 2022–05
    URL: http://d.repec.org/n?u=RePEc:avs:wpaper:133&r=
  9. By: Andreas Freytag (Friedrich-Schiller University Jena, University of Stellenbosch, and CESifo Research Network); Miriam Kautz (Friedrich-Schiller University Jena)
    Abstract: International economic engagement has been increasingly framed in terms of liberal democratic values. Specifically, Chinese aid has been at the center of this debate. Since Chinese aid comes with "no strings attached", a popular narrative is that Chinese aid poses a challenge to conditional aid, thus weakening democracy promotion. This study aims to deepen our understanding of how democratic values are shaped by international economic engagement. Drawing on the Latinobarómetro Household Survey, we use an instrumental variable approach to test the effect of Chinese aid on attitudes toward democracy in 18 Latin American countries on the national and regional level. We find that Chinese aid has a non-negative effect on support for democracy. We also find that individuals who have a positive attitude towards China are more likely to value democracy. In contrast, positive attitudes towards the USA have no robust impact on support for democracy.
    Keywords: China, Latin America, foreign aid, public opinion, support for democracy, values
    JEL: F35 F61 F69 O54 P33
    Date: 2022–06–23
    URL: http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2022-006&r=
  10. By: Andrea Otero-Cortés; Tribín-Uribe, Ana María; Mojica, Tatiana
    Abstract: We study the labor market effects of the Venezuelan migration shock on female labor market outcomes in Colombia using a Bartik-instrument approach.For our identification strategy we leverage regional variation from pull factors and time variation from push factors. Our findings show that in the labor market, female immigrants can act as substitutes or complements for native-born women depending on native women’s education level; immigrant workers are substitutes in the labor market for native-born low-educated women as they compete for similar jobs. Hence, the low-educated native women’s labor force participation decreases. At the same time, time spent doing unpaid care increases for low-educated native women, possibly further preventing the job search for this group. On the other hand, we find an increase in labor force participation of 1.6 p.p. for highly educated women with minors at home and a 1 p.p. higher likelihood of becoming entrepreneurs due to the migratory shock, which supports the complementary-skill hypothesis. Finally, we don’t find evidence that the migratory shock induced households to outsource more home-production as a means for high-educated women to spend more time at paid work. **** RESUMEN: En este documento estudiamos los efectos que el choque migratorio venezolano tuvo sobre el mercado laboral y uso del tiempo para las mujeres de Colombia utilizando la metodología de instrumentos tipo Bartik. Para esto, usamos variación regional de un factor de atracción de migración, como lo son las redes migratorias previamente establecidas en cada ciudad receptora, y la variación temporal del IPC venezolano como factor de empuje de la migración para nuestra estrategia de identificación. Los resultados muestran que, en el mercado laboral, las mujeres migrantes pueden actuar como sustitutas o complementarias de las nativas dependiendo de la educación de estas últimas. Las trabajadoras inmigrantes son sustitutas en el mercado laboral de las mujeres nativas con baja escolaridad porque compiten por puestos de trabajo similares. Por lo tanto, la participación laboral disminuye para las mujeres nativas con bajo nivel educativo como consecuencia del choque migratorio y también aumenta el tiempo destinado al trabajo no remunerado, lo que posiblemente impide aún más la búsqueda de empleo para este grupo. De otra parte, encontramos que hay un aumento de la participación laboral de 1,6 p.p. para las mujeres con alta escolaridad y que viven con niños y niñas menores de 5 años en el hogar y una mayor probabilidad de convertirse en emprendedoras, lo que apoya la hipótesis de la complementariedad de las habilidades entre migrantes y nativas con alta escolaridad. Contrario a lo que ocurre en países desarrollados ante choques migratorios, no encontramos evidencia de que los hogares nativos contraten en mayor proporción mujeres migrantes para realizar trabajo domestico para facilitar que las mujeres con nivel alto educación dediquen más horas al trabajo remunerado.
    Keywords: Migration; Female labor market outcomes; Care economy; Entrepreneurship; Migración; Mercado laboral femenino; Economía del cuidado; Emprendimiento
    JEL: J16 J22 J61 L26 R23
    Date: 2022–07
    URL: http://d.repec.org/n?u=RePEc:bdr:region:311&r=
  11. By: Zhao, Jing; Miller, J. Isaac; Binfield, Julian; Thompson, Wyatt
    Abstract: We use econometric models to study the links between the evolution of agricultural support for six agricultural commodities and economic development as measured by real income per capita. Each commodity has a panel dataset with around 30-50 countries including developed, developing and less developed countries over 1961-2011. We investigate more complicated nonlinear relationships between income and support as measured by Nominal Rates of Assistance (NRAs) than previously examined and employ fixed effects to capture heterogeneity across countries. We find that a significant relationship exists between income measures and measures of border protection, but that the link between income and domestic support is generally weaker. Using these estimates and projections of macroeconomic variables, projections of future agricultural commodity support are generated for Brazil, Russia, India, and China. The projections of economic measures of support are then be compared to the commitments made by these countries to the World Trade Organization (WTO). There is a clear distinction between actual policies in place, aggregate estimates of them (such as NRAs), and WTO notifications. We do not forecast WTO notification data but compare in a general way long-run trends in development and associated support to these countries’ multilateral commitments. We use the projections derived from the empirical models to discuss the drivers of agricultural support, how these might have implications for WTO notifications, and how these effects relate to WTO commitments.
    Keywords: Agricultural and Food Policy, International Development, International Relations/Trade
    Date: 2022–06
    URL: http://d.repec.org/n?u=RePEc:ags:iatrcp:321785&r=

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