nep-dev New Economics Papers
on Development
Issue of 2023‒11‒20
fourteen papers chosen by
Jacob A. Jordaan, Universiteit Utrecht

  1. The Last Hurdle? Unyielding Motherhood Effects in the Context of Declining Gender Inequality in Latin America By Mariana Marchionni; Julián Pedrazzi
  2. Family change in Latin America: schooling and labor market implications for children and women By Esteve, Albert; Becca, Federica; Castro, Andrés
  3. Gendered effect of climate shocks on resilience to food insecurity: the role of kinship norms By Immacolata Ranucci; Donato Romano; Luca Tiberti
  4. Climate, women’s resilience and mediating channels in rural Benin By Teresa Cappelli; Luca Tiberti; Elisa Ticci
  5. The Labor Supply of Elderly Mexican Women By Vega, Alejandro
  6. Barriers or catalysts? Traditional institutions and social mobility in rural India By Vegard Iversen; Anustup Kundu; Rahul Lahoti; Kunal Sen
  7. Roads, Competition, and the Informal Sector. By Elena Perra,; Sanfilippo, Marco; Sundaram, Asha
  8. Agro-Economic Determinants of Violations of Protected Areas in Western Africa By Marco Rogna
  9. Sustainable practices in cocoa production. The role of certification schemes and farmer cooperatives By Katharina Krumbiegel; Pascal Tillie
  10. Climate change, temperature extremes, and conflict: Evidence from mainland Southeast Asia By André Tashi Gasser; Bruno Lanz
  11. Unveiling the critical role of forest areas amidst climate change: The Latin American case By Juan David Alonso-Sanabria; Luis Fernando Melo-Velandia; Daniel Parra-Amado
  12. Exports to Improve Women's Economic Opportunities in Morocco By Roche Rodriguez, Jaime Alfonso; Robertson, Raymond; Lopez-Acevedo, Gladys; Zárate, Daniela Ruiz
  13. The Effects of Rising Prices on Maize Production in Western African Countries By Marco Rogna
  14. Bank competition, cost of credit and economic activity: evidence from Brazil By Gustavo Joaquim; Bernardus Doornik; GJosé Renato Haas Ornelas

  1. By: Mariana Marchionni (CEDLAS-IIE-FCE-UNLP & CONICET); Julián Pedrazzi (CEDLAS-IIE-FCE-UNLP & CONICET)
    Abstract: We assess whether motherhood could be the last hurdle to achieving gender equality in developing countries by exploring the link between motherhood and the overall gender gap in the labor market for 14 Latin American countries over the last two decades. Using pseudo- panels built from harmonized household surveys and an event study approach around the birth of the first child, we find that the arrival of the first child leads to a sharp and persistent 35% decline in mothers’ earnings. This result is explained by a reduction in employment and a prompting shift towards occupations that favor more flexible work arrangements, including part-time and informal jobs. These effects are pervasive across countries and population groups. Furthermore, using an extended version of the Oaxaca-Blinder decomposition, we identify motherhood as the primary source of income inequality between men and women. Motherhood explains 42% of the remaining gender gap and has progressively gained relative importance over the last two decades while other contributing factors, such as education and its associated returns, have shown a waning impact. Moreover, we find no clear cross- country association between the motherhood-related gap and per capita GDP or gender norms, while the contribution of other factors to the gender gap in earnings diminishes with higher per capita GDP and more gender-egalitarian social norms. This suggests that gender gaps stemming from the motherhood effect exhibit greater rigidity than other drivers of gender inequality.
    JEL: D63 J13 J16 J22 J31
    Date: 2023–11
  2. By: Esteve, Albert; Becca, Federica; Castro, Andrés
    Abstract: This chapter provides an account of the major family transformations that occurred in recent decades across Latin American and Caribbean countries and examines the implications of such transformations for children’s school attendance and progress and women’s labor force participation. Latin American and Caribbean families and households have undergone substantial changes in recent years while keeping some of their distinctive features unchanged (Esteve et al., 2022; Esteve & Florez-Paredes, 2018a; Juárez & Gayet, 2014). This combination of stability and change has had profound transformations in the family status in which women raise their children and the family context in which children are raised. We refer to family context as the combination of women`s marital status and the type of households in which children reside. We combine references to the literature and own calculations based on Latin American and Caribbean population census samples, available at the Integrated Public-use Microdata Series International (IPUMS) (Minnesota Population Center, 2020). We use data from 25 countries based on the most recent census microdata and, in some instances, historical samples starting in the late 1950s (see Appendix 1).
    JEL: N0
    Date: 2023–10–16
  3. By: Immacolata Ranucci; Donato Romano; Luca Tiberti
    Abstract: Social and cultural institutions interact with environmental and individual factors, shaping resilience against external shocks. Limited evidence exists regarding the impact of social and cultural norms on climate-induced food insecurity resilience. This study examines the influence of kinship norms on gender-specific food resilience outcomes among rural households facing drought. Leveraging data from the Malawi Integrated Household Survey spatially matched with climate data, matrilineal-matrilocal villages exhibit higher resilience to food insecurity (dietary diversity and nutritional quality) than other communities. Households with female land management residing in Matrilineal-Matrilocal communities show greater dietary diversity resilience. However, in the case of drought, they are found to be less resilient to food insecurity than their counterparts in other areas. We find suggestive evidence of different reallocations of men’s and women’s work hours when hit by a drought in Matrilineal-Matrilocal and other communities, possibly explaining our main result. The study highlights the need to consider socioeconomic, cultural, and ecological interactions when assessing resilience and advocates policies enhancing women’s agricultural resilience and a broader range of outside options.
    Keywords: Development resilience, Food security, Kinship norms, Gender, Drought, Malawi.
    JEL: J16 Q15 Q18 Q54 Z13
    Date: 2023
  4. By: Teresa Cappelli; Luca Tiberti; Elisa Ticci
    Abstract: We investigate the gender gap in resilience to climate anomalies and the mediation channels between weather conditions and women’s agricultural outcomes in Benin. We find that, compared to a man, agricultural production is lower and more vulnerable to adverse rainfall conditions when the parcel manager is a woman. We also show that the Plans Fonciers Ruraux (PFR), a land titling RCT reform that started in Benin in 2008, does not significantly mitigate the gendered effects of rainfall deviations. Moreover, we provide new suggestive evidence on the role of gender-based intra-household differences when climate variations occur. We find that adverse weather conditions would push female parcel managers to reduce cultivated land, agricultural investment and labour supply more than male managers. We argue that, in rain-fed agriculture, adverse climate events can increase household competition over resources; in such an environment, the differential in intra-household bargaining power may become relevant and result in larger gender gaps.
    Keywords: eCommerce, Adverse climate events; Resilience; Gender gap in agriculture; Land tenure; Benin.
    JEL: Q12 Q15 Q18 Q54 J16
    Date: 2023
  5. By: Vega, Alejandro (Department of Economics, Umeå University)
    Abstract: This paper estimates the labor supply response to an increase in the marginal wage rate among middle-aged to elderly Mexican women. Using data from the National Survey of Occupation and Employment, I find that an increase in the marginal wage rate is associated with an increase in worked hours. The results suggest that the marginal wage rate elasticities are greater for older women than for their younger counterparts.
    Keywords: labor supply; marginal wage; women; Mexico
    JEL: I10 J01
    Date: 2023–11–04
  6. By: Vegard Iversen; Anustup Kundu; Rahul Lahoti; Kunal Sen
    Abstract: We examine how village-level social group dominance affects the educational and occupational mobility of minority and other social groups in rural India across multiple generations. We distinguish between upper caste and own-group dominance and examine the mechanisms underpinning inequality in mobility outcomes. We find inequality in upward educational mobility to have significantly narrowed over time, with Scheduled Castes doing better in upper caste- and own-dominated villages, while Scheduled Tribes and Muslims do worse in own-dominated villages.
    Keywords: Educational mobility, Occupational mobility, Caste, Land, India, Land tenure
    Date: 2023
  7. By: Elena Perra,; Sanfilippo, Marco; Sundaram, Asha (University of Turin)
    Abstract: We examine the impact of competition from better connectivity to domestic markets on formal and informal firms. Combining geolocalized information on road improvements under a large infrastructure investment programme with data on manufacturing firms in Ethiopia, we show that an increase in competition is associated with higher labour productivity, capital-intensity, investment in physical capital and wages in the formal sector. On the contrary, there is no associated increase in labour productivity or wages in the informal sector. In fact, increased competition results in lower capital-intensity and investment, a shift in composition towards workers without primary education and a lower likelihood of operating in the informal sector. We thus highlight that the benefits of infrastructure improvement programmes may not accrue uniformly in the economy.
    Date: 2022–12
  8. By: Marco Rogna (European Commission - JRC)
    Abstract: Protected areas are a widely diffused instrument for preserving the environment by restricting human activities in locations with a high natural value. However, such restrictions may create discontent on nearby inhabitants or on economic actors that are prevented from exploiting the resources present in protected areas. This may easily lead to violations. Encroachment, the use of land inside protected areas for agricultural purposes, is a common violation. The present paper investigates the determinants of encroachment in Western African countries. The focus is placed on the agro-economic determinants. Protected areas in locations with strong agricultural vocation or with high percentage of protected land are more likely to be subject to violations. Furthermore, economic deprivation and land profitability are other two mild drivers of encroachment together with mechanization. Other indicators of modern practices such as irrigation and use of inorganic fertilizers, instead, do not increase the probability of violations to protected areas.
    Keywords: Africa; Agriculture; Encroachment; Protected Areas; Tobit.
    JEL: Q12 Q18 Q24 Q57
    Date: 2023–10
  9. By: Katharina Krumbiegel (European Commission - JRC); Pascal Tillie (European Commission - JRC)
    Abstract: Many small-scale cocoa producers in Côte d’Ivoire and Ghana grow cocoa on unshaded or low-shaded cocoa plots. This has dire consequences for farm biodiversity, resulting in lower species richness and depleted soils. To measure the extent of sustainable agricultural practices’ use in the cocoa sector, we develop a scale that incorporates dimensions of agroforestry, soil conservation, pest and disease management and farm sanitation. We use a representative data set of more than 1700 cocoa producers in Côte d’Ivoire and Ghana to assess farmer participation in different organizational structures and market channels and their roles in promoting sustainable practices. We apply a multinomial endogenous switching regression model to control for potential selection bias and derive the average treatment effect of the treated (ATT) and the untreated (ATU) for three participation options: 1) certification scheme only, 2) farmer cooperative only and 3) both. In Côte d’Ivoire, econometric results show that joint participation in both a certification scheme and a farmer cooperative leads to a significantly higher sustainability score than alternative options. In comparison, certification scheme membership shows the highest effect in Ghana. Different findings may be explained by differences in the organization of the cocoa value chain across the two countries. Governmental extension services in Ghana provide support to cocoa farmers, which otherwise farmer cooperatives would potentially offer.
    Keywords: Certification schemes, sustainable agricultural practices, farmer cooperatives, cocoa
    JEL: O13 Q13 Q56
    Date: 2023–10
  10. By: André Tashi Gasser; Bruno Lanz
    Abstract: We exploit 0.5x0.5 degree raster data for mainland Southeast Asia from 2010 to 2020 to document a non-linear relationship between extreme temperature days and conflict. We show that the occurrence of conflict events increases with extreme maximum temperature days, whereas days with extreme minimum temperature decrease the occurrence of conflict. Because climate change makes both maximum and minimum temperature extremes more likely, these effects partially offset each other on aggregate. However, our results further suggest that the impact of extreme maximum and minimum temperature days differs for the type of conflict, actors involved and population affected, indicating complex distributional consequences.
    Keywords: Climate change; adaptation; conflict; extreme temperature
    JEL: Q54 O13 H56 D74 P48
    Date: 2023–10
  11. By: Juan David Alonso-Sanabria; Luis Fernando Melo-Velandia; Daniel Parra-Amado
    Abstract: Although greenhouse gas emissions from the Latin America (LAC) region are not particularly significant, climate change is a worldwide challenge. Hence, we analyze the main factors that increase and mitigate emissions in LAC countries by emphasising the importance of preserving and safeguarding forested regions. To do that, we estimate a Panel Fully Modified Ordinary Least Square model for Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, and Peru by using a sample period between 1970 and 2018. We find that an increase of 1% in forested area leads to a reduction of CO2 (Kt per capita) emissions by 0.23 %. From the policy perspective, our findings draw attention towards the promotion of reforestation and afforestation initiatives. Furthermore, these long term policies will hold substantial significance, given the region’s immense potential, with more than a fifth of the world’s forest reserves. **** RESUMEN: Aunque las emisiones de gases de efecto invernadero de la región de América Latina (LAC) no son particularmente significativas, el cambio climático es un desafío mundial. En este documento analizamos los principales factores que aumentan y mitigan las emisiones en los países de LAC enfatizando la importancia de preservar y salvaguardar las áreas forestales. Para hacer eso, estimamos un modelo panel de mínimos cuadrados ordinarios completamente modificados para Argentina, Brasil, Chile, Colombia, Ecuador, México y Perú utilizando un período de muestra entre 1970 y 2018. Encontramos que un aumento de 1% en el área forestal conduce a una reducción de las emisiones de CO2 (Kt per cápita) en un 0, 23%. Desde la perspectiva de las políticas públicas, nuestros hallazgos llaman la atención hacia la promoción de iniciativas de reforestación y forestación. Además, estas políticas a largo plazo tendrían una importancia sustancial, dado el inmenso potencial de la región, con más de una quinta parte de las reservas forestales del mundo.
    Keywords: CO2 emissions, Forestry, Reforestation, Panel FMOLS, Emisiones de CO2, Áreas forestales, reforestación
    JEL: C33 Q23 Q56 E20
    Date: 2023–10
  12. By: Roche Rodriguez, Jaime Alfonso (World Bank); Robertson, Raymond (Texas A&M University); Lopez-Acevedo, Gladys (World Bank); Zárate, Daniela Ruiz (Bank of Mexico)
    Abstract: Morocco's trade liberalization policies coincided with macroeconomic growth over the past two decades. The relationship between trade liberalization and individual-level labor-market outcomes, however, are not well understood. By combining three complementary approaches and modeling techniques, this paper estimates: (i) the relationship between trade agreements and trade flows, (ii) the relationship between trade exposure and various local labor market outcomes, and (iii) the relationship between firm employment and exports. Our results show that tariffs have fallen and trade, as a share of GDP has increased. Morocco's trade agreements, however, are not always associated with higher trade flows. Furthermore, trade has led to mixed results for workers. Increased trade has decreased informality but may have adversely affected female labor force participation (FLFP). Trade liberalization seems to have induced a shift from female labor-intensive industries, such as apparel, to capital-intensive sectors that are predominantly male-intensive. Our firm level analysis confirms these results by showing that increasing in employment from exports has occurred mainly in male, capital-intensive sectors. Labor-abundant countries might want to provide incentives to labor-intensive industries rather than only supporting capital-intensive ones - especially in industries where women typically perform the labor-intensive jobs. It is important to note that we focus mainly on the labor demand side. Policies related to the supply side should also be weighed to create incentives for females to join the labor force, such as policies addressing social norms, regulation, and barriers to job mobility.
    Keywords: gender, trade policy, trade flows, labor market outcomes, firm dynamics
    JEL: F13 F14 F15 F16 J23 J31 O15 O19
    Date: 2023–10
  13. By: Marco Rogna (European Commission - JRC)
    Abstract: The intensification of the Russo-Ukrainian war started in February 2022 with the Russian invasion of Ukraine has generated a dramatic increase in the price of several goods. In particular, energy, gas and oil have been the most interested by this spike in prices, followed by several agricultural commodities. Fertilizers, whose production is energy intensive and/or directly dependent from oil derivatives, have also experienced a sharp increase in prices. This has risen concerns for food insecure countries, particularly in Africa, since, besides a lower possibility to purchase food commodities on the international market, they will likely decrease their own production due to a lower utilization of fertilizers. Quantifying this potential decrease in agricultural production is important in order to fully assess their vulnerability in terms of food security. The present paper tries to accomplish this task by forecasting the change in maize production in 2022 and 2023 compared to 2021 in seven Western African countries. We find an overall decline in maize production of 10% circa in both years with a strong heterogeneity among countries. Trivial users of fertilizers, such as Niger, experience a very modest decline in production (less than 2%) whereas others, such as Benin and Togo, have a double digit decline: approximately 13% the former and 32% the latter.
    Keywords: Crop models; Food security; Maize yields; Western Africa; Yields forecast.
    JEL: Q12 Q17 Q18
    Date: 2023–09
  14. By: Gustavo Joaquim; Bernardus Doornik; GJosé Renato Haas Ornelas
    Abstract: We use heterogeneous exposure to large bank mergers to estimate the effect of bank competition on both financial and real variables in local Brazilian markets. Using detailed administrative data on loans and firms, we employ a difference-in- differences empirical strategy to identify the causal effect of bank competition. Following M&A episodes, spreads increase and there is persistently less lending in exposed markets. We also find that bank competition has real effects: a 1% increase in spreads leads to a 0.2% decline in employment. We develop a tractable model of heterogeneous firms and concentration in the banking sector. In our model, the semi-elasticity of credit to lending rates is a sufficient statistic for the effect of concentration on credit and output. We estimate this elasticity and show that the observed effects in the data and predicted by the model are consistent. Among other counterfactuals, we show that if the Brazilian lending spread were to fall to the world level, output would increase by approximately 5%.
    Keywords: bank competition, mergers and acquisitions, lending, spreads, output
    JEL: G21 G34 E44
    Date: 2023–10

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