nep-dev New Economics Papers
on Development
Issue of 2023‒08‒21
ten papers chosen by
Jacob A. Jordaan, Universiteit Utrecht

  1. Brazil 2021 data update: Methodological adjustments to the World Bank’s poverty and inequality estimates By Gabriel Lara Ibarra; Ricardo Campante Vale
  2. Are the benefits of electrification realized only in the long run? Evidence from rural India By Suryadeepto Nag; David I. Stern
  3. Mineral resources and the salience of ethnic identities By Nicolas Berman; Mathieu Couttenier; Victoire Girard
  4. Natural resources and conflict: The crucial role of power mismatch and geographic asymmetries By Massimo Morelli; Dominic Rohner
  5. Transforming rural economies through tertiary education: Evidence from India By Amparo Castelló-Climent; Abhiroop Mukhopadhyay; Ravinder
  6. An Indian Enigma? Labour Market Impacts of the World's Largest Livelihoods Program By Deshpande, Ashwini; Khanna, Shantanu; Walia, Daksh
  7. Culture, Gender, and Labor Force Participation: Evidence from Colombia By Hector Galindo-Silva; Paula Herrera-Id\'arraga
  8. Temperature, climate change, and household financial behaviour: Evidence from Viet Nam By Sefa Awaworyi Churchill; Trong-Anh Trinh; Michael Danquah
  9. Bipolarisation measurement: A two-income approach with an application to nine Sub-Saharan African countries By Florent Bresson; Marek Kosny; Gaston Yalonetzky
  10. Impacts of climate change on global agri-food trade By Bozzola, Martina; Lamonaca, Emilia; Santeramo, Fabio Gaetano

  1. By: Gabriel Lara Ibarra; Ricardo Campante Vale
    Abstract: There is evidence of significant under-coverage of the "Auxilio Emergencial" program in Brazil’s Continuous National Household Sample Survey (PNADC in Portuguese) 2021. The program, originally launched as an emergency measure by the Government of Brazil to support families during the pandemic, covered over 68 million individuals in 2020. The previous PNADC 2020 only observed about 20 million, and an approach to impute AE beneficiary status was applied to complement the observed AE status and better capture households’ welfare. A new version of the AE program was launched in 2021. AE in 2021 covered 36 million, while the PNADC 2021 only observed 8 million. An adjustment that incorporates the eligibility criteria of AE 2021 is implemented in the calculation of households’ income and poverty rates. The imputation method described here is included in the World Bank’s poverty and inequality estimates for Brazil 2021 (published in March 2023). The poverty estimates in 2021 are 28.4 percent at the US$6.85 poverty line and 5.8 percent at the US$2.15 line. The Gini coefficient is estimated at 0.526. A set of robustness checks shows qualitatively similar results.
    Date: 2023–04
  2. By: Suryadeepto Nag; David I. Stern
    Abstract: Experimental studies find smaller benefits of electrification than observational studies. Is this because the latter typically observe benefits after a longer period of time? Using three waves of data from the Human Development Profile of India and the Indian Household Development Survey of Indian rural households, we quantify the impacts of short-term (0-7 years) and long-term (7-17 years) electricity access on household well-being. We use a propensity-score-weighted-difference-in-differences design that controls for spillover effects and find that electricity access increases consumption and education in the long term, and reduces the time spent by women on fuel collection, although we do not find significant effects on agricultural income, agricultural land holding, and kerosene consumption. Per capita consumption grows by 18 percentage points more over seven years in the long-term connected group than in the control group. Short-term effects are smaller and not statistically significant for any outcome variable.
    Keywords: Electricity access, impact assessment, South Asia
    JEL: O13 Q40
    Date: 2023
  3. By: Nicolas Berman (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique, CEPR - Center for Economic Policy Research - CEPR); Mathieu Couttenier (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique, CEPR - Center for Economic Policy Research - CEPR); Victoire Girard (NOVA SBE - NOVA - School of Business and Economics - NOVA - Universidade Nova de Lisboa = NOVA University Lisbon, LEO - Laboratoire d'Économie d'Orleans [2022-...] - UO - Université d'Orléans - UT - Université de Tours - UCA - Université Clermont Auvergne)
    Abstract: This paper shows how ethnic identities may become more salient due to natural resources extraction. We combine individual data on the strength of ethnic—relative to national—identities with geo-localised information on the contours of ethnic homelands, and on the timing and location of mineral resources exploitation in 25 African countries, from 2005 to 2015. Our strategy takes advantage of several dimensions of exposure to resources exploitation: time, spatial proximity and ethnic proximity. We find that the strength of an ethnic group identity increases when mineral resource exploitation in that group's historical homeland intensifies. We argue that this result is at least partly rooted in feelings of relative deprivation associated with the exploitation of the resources. We show that such exploitation has limited positive economic spillovers, especially for members of the indigenous ethnic group; and that the link between mineral resources and the salience of ethnic identities is reinforced among members of powerless ethnic groups and groups with strong baseline identity feelings or living in poorer areas, or areas with a history of conflict. Put together, these findings suggest a new dimension of the natural resource curse: the fragmentation of identities, between ethnic groups and nations.
    Keywords: identity, ethnicity, natural resources
    Date: 2023–07
  4. By: Massimo Morelli; Dominic Rohner
    Abstract: This handbook chapter studies how natural resource wealth can in many contexts fuel armed conflict. Starting from a simple theoretical model, we stress the role of geography and power mismatch in the so called "natural resource curse". Drawing on recent empirical evidence, the importance of resource abundance, asymmetry and capital-intensiveness is highlighted, alongside local grievances and international interventions. We propose a series of evidence-driven policy conclusions, ranging from "smart green transition" and democratic institution building over labor-market intervention to a series of specific policies requiring international coordination. Keywords: Natural Resources, Mining, Conflict, commitment problems, power mismatch JEL Classification: D74, Q34
    Date: 2023
  5. By: Amparo Castelló-Climent; Abhiroop Mukhopadhyay; Ravinder
    Abstract: This paper analyses the role of tertiary education on rural development. Using census data on villages in India for 2011, we find that skilled workers have had an important impact on rural prosperity. A 1 percentage point rise in the share of the village population with tertiary education raises per capita consumption by around 7.2 per cent. Our results are robust to alternative measures of income and are not confounded by better institutions. Among the mechanisms at work, we find that households with tertiary-educated members register higher agricultural gross income per unit of land.
    Keywords: Rural, Transformation, Education, Rural areas
    Date: 2023
  6. By: Deshpande, Ashwini; Khanna, Shantanu; Walia, Daksh
    Abstract: We examine the labour market impacts of the largest livelihoods programs in the world, India's Deendayal Antyodaya Yojana- National Rural Livelihoods Mission (DAY-NRLM). A key aspect of this program is to mobilize rural women into self-help groups (SHGs). We combine administrative data on SHG membership across districts in India with survey micro-data on labour force and employment outcomes of rural women between 2011 and 2019. Using a generalized difference-in-differences approach, we find that SHG membership is positively associated with labor force participation and employment of rural women. We also find evidence that SHG membership is associated with a shift towards self-employment and a crowd-out of casual work among the employed. Our supplementary analysis based on large primary survey data from Maharashtra allows us to examine the relationship between SHG membership and economic activity at the individual level. This confirms our main results of a positive association between SHG membership and economic activity. Further, we show that longer duration of SHG membership is associated with higher participation rates.
    Keywords: Self-Help Groups, Labor Force Participation, Employment, India
    JEL: O20 O22 J16
    Date: 2023
  7. By: Hector Galindo-Silva; Paula Herrera-Id\'arraga
    Abstract: This study investigates the impact of integrating gender equality into the Colombian constitution of 1991 on attitudes towards gender equality, experiences of gender-based discrimination, and labor market participation. Using a difference-in-discontinuities framework, we compare individuals exposed to mandatory high school courses on the Constitution with those who were not exposed. Our findings show a significant increase in labor market participation, primarily driven by women. Exposure to these courses also shapes attitudes towards gender equality, with men demonstrating greater support. Women report experiencing less gender-based discrimination. Importantly, our results suggest that women's increased labor market participation is unlikely due to reduced barriers from male partners. A disparity in opinions regarding traditional gender norms concerning household domains is observed between men and women, highlighting an ongoing power struggle within the home. However, the presence of a younger woman in the household appears to influence men's more positive view of gender equality, potentially indicating a desire to empower younger women in their future lives. These findings highlight the crucial role of cultural shocks and the constitutional inclusion of women's rights in shaping labor market dynamics.
    Date: 2023–07
  8. By: Sefa Awaworyi Churchill; Trong-Anh Trinh; Michael Danquah
    Abstract: We examine the impact of temperature shocks and climate change on household financial behaviour in Viet Nam. To do so, we first estimate the effect of temperature on household borrowing and savings using Vietnamese longitudinal data that matches satellite reanalysis temperature data with household information over the period 2008 to 2016. We find that an additional day with an average temperature of greater than 30°C, relative to the number of days in the 18-22°C range, is associated with a 6.3 per cent decrease in household savings and a 1.4 per cent increase in household borrowing.
    Keywords: Temperature, Weather shock, Climate change, Saving, Viet Nam
    Date: 2023
  9. By: Florent Bresson (CERDI, Université Clermont Auvergne, CNRS, IRD); Marek Kosny (Wroclaw University of Economics and Business); Gaston Yalonetzky (University of Leeds, OPHI, III)
    Abstract: This paper introduces and axiomatically characterises new classes of bipolarisation indices based on the equivalent representation of observed distributions with the help of two-income distributions. This representation makes it possible to interpret the suggested indices either as I) the representative income gap between individuals from the top part of the distribution and those from the bottom part, orii) the excess representative income share of the top part compared against its population share.The proposed bipolarisation indices show additional appealing features. First, they can handle any population partition between the p percent poorest individuals and the (1-p) richest individuals (including the popular p=50% choice). Secondly, they can be easily decomposed into spread and clustering contributions toward total bipolarisation. Finally, they relate to familiar inequality indices so that bipolarisation levels can easily be connected to the average income and inequality levels relating to each part of the income distribution. The new classes include some prominent rank-dependent bipolarisation indices from the literature as special cases, together with numerous novel proposals for both absolute and relative approaches to bipolarisation. An illustration is given using consumption data from nine Sub-Saharan African countries.
    Keywords: Bipolarisation, inequality, two-income distribution
    JEL: D31 D63 O15
    Date: 2023–08
  10. By: Bozzola, Martina; Lamonaca, Emilia; Santeramo, Fabio Gaetano
    Abstract: Climate change and trade are closely related. Climate may alter the comparative advantages across countries, which may in turn trigger changes in trade patterns. Trade itself may constitute an adaptation strategy, moving excesses of agri-food supply to regions with shortages, and this in turn may explain changes in land-use. We investigate these linkages, showing that the changes in climate affect counties’ trade value and contribute to reshaping trade patterns. First, we quantify the long-term impacts of climate on the value of agri-food exports, implicitly considering the ability of countries to adapt, and show that higher marginal temperatures and rainfall levels tend to be beneficial for countries’ exports. Following a gravity model approach, we then link the evolving trade patterns to climate change adaptation strategies. We find that the larger the difference in temperatures and rainfall levels between trading partners, the higher the value of bilateral exports. Furthermore, while developed and developing exporters are both sensitive to climate change and to cross-countries heterogeneity in climate, we found their responses to changes in climate to be quite diverse.
    Keywords: Climate normal; Climate heterogeneity; Export; Economic development.
    JEL: F18 O13 O44 Q17 Q54
    Date: 2023

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