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on Development |
| By: | Sulin Sardoschau (HU Berlin); Alexandra Jarotschkin (World Bank) |
| Abstract: | This study examines Chinese aid projects’ impact on conflict and perceptions of China in 820 African districts from 2000 to 2012. We show that a 10% increase in Chinese aid projects results in a 6% increase in conflict incidents. This rise is mainly due to confrontations involving non-state actors, such as militias and rebel groups, and clashes between these groups and government forces. Civilian attitudes toward China’s presence do not drive this increase, as evidenced by both revealed and stated preferences. We find that Chinese aid does not provoke protests, riots, or strikes, nor does it amplify critical views among Africans regarding Chinese culture, resource extraction, or land acquisitions. Our evidence suggests that Africans attribute the rise in conflict to the interaction of resource influx and local politics, rather than to China itself, reflecting a discerning perspective on China’s influence on the continent. |
| Date: | 2023–11–13 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:451&r=dev |
| By: | Khurana, Saloni (Indian Institute of Foreign Trade (IIFT)); Mahajan, Kanika (Ashoka University); Sen, Kunal (University of Manchester) |
| Abstract: | Using nationally representative data on employment and earnings, this paper documents a fall in wage inequality in India over the last two decades. It then examines the role played by increasing minimum wages for the lowest skilled workers in India in contributing to the observed decline. Exploiting regional variation in changes in minimum wages over time in the country, we find that an increase in minimum wages by one percent led to an increase in wages for workers in the lowest quintile by 0.17%. This effect is smaller at upper wage quintiles and insignicant for the highest wage quintile. Counterfactual wage estimations show that the increase in minimum wages explains 26% of the decline in wage inequality in India during 1999-2018. These findings underscore the important role played by rising minimum wages in reducing wage disparities in India. |
| Keywords: | minimum wages, wage inequality, India |
| JEL: | J31 J38 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16600&r=dev |
| By: | Matías Ciaschi (CEDLAS-IIE-FCE-UNLP & CONICET); Mariana Marchionni (CEDLAS-IIE-FCE-UNLP & CONICET); Guido Neidhöfer (ZEW Mannheim) |
| Abstract: | In this paper we assess intergenerational mobility in terms of education and income rank in five Latin American countries—Brazil, Chile, Ecuador, Mexico, and Panama—by accounting for the education and occupation of both parents. Based on the method proposed by Lubotsky and Wittenberg (2006), we find that intergenerational persistence estimates increase by 26% to 50%when besides of the education of parents we consider also their occupation. The increase is partic-ularly strong when education is more evenly distributed in the parents’ generation. Furthermore, we evaluate the changing importance of each single proxy for parental background to explain inter-generational mobility patterns in each country and over time, and find that the relative importance of the characteristics of mothers have been increasing over the last decades, in line with rising women’s average years of education and labor market participation. Interesting heterogeneities across countries and cohorts are observed. |
| JEL: | D63 J62 O15 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:dls:wpaper:0323&r=dev |
| By: | Bhalotra, Sonia (University of Warwick); Clots-Figueras, Irma (University of Kent); Iyer, Lakshmi (University of Notre Dame) |
| Abstract: | We investigate the impact of the political representation of minority groups on the incidence of ethnic conflict in India. We code data on Hindu-Muslim violence and Muslim political representation in India and leverage quasi-random variation in legislator religion generated by the results of close elections. We find that the presence of Muslim legislators results in a large and significant decline in Hindu-Muslim conflict. The average result is driven by richer states and those with greater police strength. Our results suggest that the political empowerment of minority communities can contribute to curbing civil conflict. |
| Keywords: | conflict ; violence ; religion ; political representation ; police ; close elections JEL codes: D72 ; D74 ; J15 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:wqapec:19&r=dev |
| By: | Andréa Renk (Development Finance and Public Policies, University of Namur); Clarice Manuel (Development Finance and Public Policies, University of Namur) |
| Abstract: | Gender inequalities persist globally, and Nepal is no exception. However, over the past two decades, numerous legal reforms have expanded the rights of women. This paper examines the changing impact of patriarchal intensity on women’s empowerment proxies in this context. We develop a measure of patriarchy based on the demographic behavior of neighbors in 2001 and explore how its importance has changed in relation to women’s empowerment indicators (decision-making power, paid and non-agricultural employment) over two decades. Our findings indicate a growing heterogeneity in women’s empowerment over time, despite overarching positive trends. These results are consistent with a straightforward model suggesting that actual empowerment depends on the legal framework and a cost associated with seizing available opportunities, increasing with patriarchy. Furthermore, our results underscore the importance of employing a spatial measure that encompasses all neighbors to comprehend such dynamic patterns. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:nam:defipp:2304&r=dev |
| By: | Melaku, Astewale Bimr; Qaim, Matin; Debela, Bethelhem Legesse |
| Abstract: | In many countries of the Global South, agri-food supply chains are transforming rapidly. One important feature of this transformation is growth in certain high-value agricultural subsectors, such as horticulture and cut-flowers for export. Growth in high-value agriculture often creates new employment opportunities, especially for women. More employment can lead to higher rural incomes, but the broader implications for social welfare are not yet sufficiently understood. Here, we use survey data from Ethiopia to investigate the effects of women’s employment in floriculture on child nutrition, focusing on children aged 0-5 years. We develop and estimate endogenous switching regressions to account for possible endogeneity. Our results suggest that maternal employment in floriculture negatively affects child height-for-age and weight-for-age z-scores (HAZ and WAZ). Exploration of the underlying mechanisms reveals that floriculture employment may influence time allocation, dietary quality, income, and female financial autonomy. Maternal employment is negatively associated with time spent on childcare and consumption of animal-sourced foods. |
| Keywords: | Food Security and Poverty |
| Date: | 2023–12–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubzefd:338968&r=dev |
| By: | Felix F. Simione; Tara S Muehlschlegel |
| Abstract: | Will mobile money render cash less dominant over time in Africa? Can it promote financial inclusion? We shed light on these questions by exploring individual-level and nationally representative survey data for Uganda, a country in a region that pioneered mobile money in the world. We use the Propensity Score Matching method to robustly compare mobile money users and non-users across a range of indicators that capture individuals’ perceptions about cash, and the extent to which they remit, save, and borrow money. We present the first evidence that mobile money users, compared to non-users, are more likely to perceive cash as risky and less likely to prefer carrying large amounts of cash. We also confirm that mobile money users are more likely to receive and send remittances, save, and borrow. They also save and borrow larger amounts. |
| Keywords: | Developing Country; Innovation; Digital Divide |
| Date: | 2023–11–17 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/238&r=dev |
| By: | Holden, Stein T. (Centre for Land Tenure Studies, Norwegian University of Life Sciences); Makate, Clifton (Centre for Land Tenure Studies, Norwegian University of Life Sciences); Tione, Sarah (Centre for Land Tenure Studies, Norwegian University of Life Sciences) |
| Abstract: | We assess the reliability of measured farm sizes (ownership holdings) in the Living Standard Measurement Study – Integrated Surveys on Agriculture (LSMS-ISA) in Ethiopia and Malawi based on three survey rounds (2012, 2014, 2016) in Ethiopia and four rounds (2010, 2013, 2016, 2019) in Malawi. By using the balanced panel of households that participated in all the rounds, we utilized the within-household variation in reported and measured ownership holdings that, to a large extent, were measured with GPSs and/or with rope and compass. While this gives reliable measures of reported holdings, we detect substantial under-reporting of parcels over time within households. We find that the estimated farm sizes within survey rounds are substantially downward biased due to systematic and stochastic under-reporting of parcels. Such biases are substantial in the data from both countries, in all survey rounds, and in all regions of each country. Based on the analyses, we propose that the maximum within-household reported farm sizes over several survey rounds provide a more reliable proxy for the actual farm size distributions, as these maximum sizes are less likely to be biased due to parcel attrition. The ignorance of this non-classical measurement error is associated with a downward bias in the range of 20-30% in average and median farm sizes and an upward bias in the Gini-coefficients for farm size distributions. We propose ideas for follow-up research and improvements in collecting these data types and draw some policy implications. |
| Keywords: | Farm size measurement; missing data; measurement error; LSMS-ISA; Ethiopia; Malawi |
| JEL: | C81 C83 Q12 Q15 |
| Date: | 2023–12–06 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nlsclt:2023_007&r=dev |
| By: | Ranjula Bali Swain; Aimable Nsabimana |
| Abstract: | We investigate if financial inclusion leads to improved nutrition in rural Rwanda, using Rwandan Integrated Household Living Conditions surveys (2013/14 and 2016/17). Our empirical evidence shows a robust positive impact of financial inclusion efforts undertaken by formal financial institutions, though informal institutions such as tontines are ineffective in improving food expenditure or nutrition. Furthermore, the study reveals heterogeneous marginal effects of financial inclusion in reducing the gender gap between the food demand and nutrition of female- and male-headed households. |
| Keywords: | Financial inclusion, Food security, Nutrition, SDGs, Rwanda |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2023-141&r=dev |
| By: | Pablo Astorga (Institut Barcelona d’Estudis Internacionals (IBEI)) |
| Abstract: | This paper analyses, for the first time, comparable income shares of the top 10%, the middle 50% and the bottom 40% of the labour force in Argentina, Brazil, Chile, Colombia, Mexico and Venezuela (LA6) from 1920 to 2011 using a new dataset. The main findings are: i) over the whole period the LA6 exhibited a recurrent very high income concentration at the top 10% (an average share of 48.1%) and a relatively low share for those of the bottom 40% (13.9%), with a Palma ratio of 3.5; ii) although the three shares varied over time and showed important differences across countries and developmental epochs, the region largely missed the Great Levelling experienced by the US and the UK during the middle decades of the last century; iii) there is no support over time for the “Palma proposition” stating a relative stability of the income share of the middle 50%. Despite policy efforts in the 2000s to raise the income of the bottom 40%, altogether, a more equitable income distribution is still a pending task in Latin America. |
| Keywords: | economic development, industrialisation, income inequality, Latin America |
| JEL: | O10 N1 O15 O54 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:hes:wpaper:0244&r=dev |
| By: | Noemí Katzkowicz; Victor Lavy; Martina Querejeta; Tatiana Rosá |
| Abstract: | Poor post-secondary education infrastructure and opportunities partly explain the low higher education rates in developing countries. This paper estimates the effect of a program that improved post-secondary education infrastructure by building many university campuses across Uruguay. Leveraging temporal and geographic variation in program implementation, we use a two-way fixed effect design and comprehensive administrative records to assess the program’s causal impact. By lowering the distance to a university campus, the program successfully increased university enrollment, particularly of less privileged students who are the first in their families to attend a university. The program impacted students from localities up to 30 kilometers from the new campus, reducing spatial inequality. Importantly, this expansion did not lower university completion rates. Furthermore, the program increased high school attendance and completion rates and the proportion of educated workers in the affected localities. |
| JEL: | D63 I23 I28 J16 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31906&r=dev |
| By: | Keraga, Mezid N. (Addis Ababa University); Stephan, Andreas (Linnaeus University) |
| Abstract: | This paper provides novel evidence on the question of whether innovation expands or reduces employment using firm-level data from the World Bank Enterprise Survey (ES) for six African economies. The results of the difference-in-differences estimations combined with propensity score matching confirm that both product and process innovations significantly expand job opportunities in Africa. In addition, the findings show significant intra-industry innovation spillover effects on employment. In sum, this study supports the view that innovation enhances employment in the analyzed African economies. |
| Keywords: | Innovation; Employment; Sub-Saharan; Spillover effects; DID; Matching approach |
| JEL: | J20 O30 |
| Date: | 2023–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0494&r=dev |
| By: | Archibong, Belinda; Moerenhout, Tom; Osabuohien, Evans |
| Abstract: | Can citizen-led protests lead to meaningful economic redistribution and nudge governments to increase their efforts to redistribute fiscal resources? We study the effects of protests on fiscal redistribution using evidence from Nigeria. We digitised 26 years of public finance data from 1988 to 2016 to examine the effects of protests on intergovernmental transfers. We find that protests increase transfers to protesting regions, but only in areas that are politically aligned with disbursing governments. Protesters also face increased police violence. Non-protest conflicts do not affect transfers and protests do not affect non-transfer revenue. The results show that protests can influence fiscal redistribution. |
| Keywords: | Economic Development, |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:idq:ictduk:18195&r=dev |
| By: | Ian Coxhead (University of Wisconsin-Madison and Institute of Developing Economies (IDE-JETRO), Tokyo); Nguyen Dinh Tuan Vuong (University of Wisconsin-Madison) |
| Abstract: | Viet Nam's economy has grown and changed in dramatic ways since WTO accession in 2007. Much of the growth and change is due to expanded international trade and FDI. These in turn have greatly increased domestic labour demand. However, growth that exploits the country's abundant supply of low-skill labour may depress the relative demand for skills. In this paper we ask whether the skill premium-the relative price of skills, which also measures the gross economic benefit to schooling at high school and beyond-plays an influential role in schooling decisions amongst teenagers for whom wage-work is an alternative to continued education. We first use event study methods to clarify trends in wages and skill premia. We then decompose influences on upper secondary school enrolments from income growth, demographic change, and skill premia. We find that the college skill premium has a positive influence on enrolments, whereas the premium from upper secondary completion has no significant effect. Our conclusions explore implications for future productivity growth as well as economic and educational policies. |
| Keywords: | Skill premium, wages, enrolments, Viet Nam |
| JEL: | O15 J24 J31 |
| Date: | 2023–05–15 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2023-03&r=dev |