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on Development |
| By: | Fandiño, Pedro; Kerstenetzky, Celia; Simões, Tais |
| Abstract: | Wealth inequality has gained importance in the international debate following the publication of Capital in the 21st Century, by Thomas Piketty, which contains systematic data on the size and evolution of the phenomenon in advanced economies over the last few centuries. In particular, Piketty's research reveals an important decrease in wealth concentration throughout the 20th century, a decrease that has not been sustained in the first decades of the 21st century. What can be said about the levels and historical trajectory of wealth inequality in Brazil, one of the world’s most unequal countries? We investigated all available estimates since the 17th century. The work is organized based on the different sources and approaches used to construct the estimates, which cannot be directly obtained from national household surveys or censuses. Two conclusions stand out: a) wealth concentration presents extreme levels and notable stability over time, despite profound transformations in the composition of assets; and b) all available estimates have significant limitations. The availability of adequate public data, along with improvements in the procedures employed so far, is essential for the development of a literature on wealth inequality in the country – the first step towards effective public engagement with the issue. |
| Keywords: | wealth inequality; property; assets; Brazil; wealth concentration |
| JEL: | D31 D63 E01 |
| Date: | 2024–06–27 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:123988 |
| By: | Kumar, Santosh (University of Notre Dame) |
| Abstract: | Exploiting cohort and spatial variation in the exposure to the "Universal Immunization Program", I estimate the program's effects on child mortality and educational attainment in India. Results show that exposure to the program reduced infant mortality by 0.4 percentage points and under-five child mortality by 0.5 percentage points. While the program clearly reduced mortality, it had mixed effects on children's educational outcomes due to changes in the composition of children in the population. I find it had a negative impact on primary school completion, but a positive impact on secondary school completion. The negative effect at low levels of schooling may be due to lower average health among marginal surviving children or a quantity-quality trade-off where the unanticipated survival of children induces families to under-invest in each child. The greater propensity to complete secondary school on the other hand may be due to improved health among children who are farther away from the margin of survival. |
| Keywords: | immunization, health, schooling, India |
| JEL: | I1 I2 J18 O15 O22 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17083 |
| By: | Naudé, Wim (RWTH Aachen University) |
| Abstract: | This paper identifies conceptual, methodological, and empirical flaws in the first African Entrepreneurial Ecosystem Index (AEEI) that was launched in 2024. These flaws limit the usefulness of the AEEI. Moreover, given that the both the notions of entrepreneurial ecosystems and composite indices are subject to subjectivity and are ad hoc, use of the AEEI can lead to simplistic policy conclusions; worse, a poorly constructed index can detract, mislead and be manipulated. It is concluded that if scholars are to embark on entrepreneurial ecosystem index building despite the concept lacking sound theoretical and empirical foundations, then it is best not to focus on the cross-country level, but to start at the sub-national level and follow best practice in composite index building. This will have the benefits of at least being more consistent with the ideas of entrepreneurship as being place dependent and that ecosystem measures should be concerned with what entrepreneurs want - and less on existing institutions. |
| Keywords: | entrepreneurship, Africa, entrepreneurial ecosystem, composite indices |
| JEL: | L26 L53 O55 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17075 |
| By: | Azam, Mehtabul (Oklahoma State University); Emran, M. Shahe (Columbia University); Shilpi, Forhad (World Bank) |
| Abstract: | Using a nationally representative large-scale survey of individual ICT skills in India (Multiple Indicators Survey, 2020), we provide evidence on the effects of ICT skills on labor market outcomes and household welfare as measured by per capita expenditure. We study the effects both at the extensive and intensive margins of labor market. To tackle the challenges in identification arising from unobserved individual heterogeneity in the acquisition of ICT skills, we develop an instrumental variables (IV) strategy. The IV approach exploits the dramatic expansion of cell towers in India as a source of supply-side variation, and relies on an institutional feature of the telecom market, the "telecom circles", to construct a leave-own-out instrumental variable. The evidence suggests no significant effects at the extensive margin (null effect on both labor force participation and employment). In contrast, there are important effects at the intensive margin: a 10 percentile higher ICT skills index increases the probability of salaried employment by 6.5 percentage points, and leads to a 9.5 percent higher per capita expenditure. Employment transitions happen from daily wage employment and self-employment to salaried employment. The effects vary substantially across gender: women face a penalty in the form of a lower impact on salaried employment, but the impact on per capita expenditure is larger for households with ICT-skilled women. The higher impact on women reflects the fact that the family stock of ICT skills is much larger in households with ICT-skilled women. Contrary to conventional wisdom, the lower caste individuals enjoy a larger positive effect on salaried employment, despite their unfavorable labor market network, possibly due to the employment quotas in public sector employment. The impacts on salaried employment and per capita expenditure for Muslims are comparable to the other social groups. We find no significant rural-urban differences. |
| Keywords: | ICT skills, labor market, employment, salaried employment, daily wage employment, self-employment, per capita expenditure, gender, caste, religion, towercos, telecom circles, India |
| JEL: | J24 J62 I30 O12 O15 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17105 |
| By: | María del Carmen Dircio Palacios Macedo (Department of Economics, Universitat Jaume I, Castellón, Spain); Paula Cruz-García (Department of Economic Analysis, Universitat de Valencia, Spain); Fausto Hernández-Trillo (Center for Research and Teaching in Economics (CIDE), Mexico); Emili Tortosa-Ausina (IVIE, Valencia and IIDL and Department of Economics, Universitat Jaume I, Castellón, Spain) |
| Abstract: | Access to financial services is unequal around the world. In many countries, les than half of the population has an account at a financial institution, and this lack of access to finance is often a critical reason behind income inequality and uneven growth. This is the case of Mexico, where financial exclusion affects large shares of the population mainly in rural and poorer localities. This is an ongoing concern for policymakers, since it undermines socioeconomic opportunities for families and businesses alike, hampering economic growth and development. However, assessing the relevance of this issue requires a careful measurement of financial inclusion which, to date, has only been achieved to a limited extent. We contribute to the literature in this context by proposing a multivariate index of financial inclusion for Mexico, at the municipal level, for the period 2013–2021. This index covers several dimensions, including access, and usage. The results corroborate that a large proportion of the population is still unbanked, although it is unevenly distributed across the country. |
| Keywords: | composite indicator, financial inclusion, Mexican municipalities, Mexico |
| JEL: | G21 G23 G30 O16 R51 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:jau:wpaper:2024/06 |
| By: | Le, Dung D. (Waseda University); Molina, Teresa (University of Hawaii at Manoa); Ibuka, Yoko (Keio University); Goto, Rei (Keio University) |
| Abstract: | Using data from 18 countries, we investigate the effects of child marriage bans on infant and under-5 mortality. We use variation in mothers' exposure to the ban across cohorts within each country and regional variation in "treatment intensity, " calculated based on child marriage prevalence and marriage age prior to the ban. We find that child marriage bans reduced infant and under-5 mortality, with magnitudes of 14.3 and 19.9 percent corresponding to a one standard deviation change in treatment intensity. Reductions were driven by low-income countries and less wealthy households, primarily due to increases in age at first marriage and birth. |
| Keywords: | child marriage bans, early marriage, child mortality, Demographic and Health Surveys |
| JEL: | I10 I15 J12 J18 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17089 |
| By: | Roxana Guti\'errez-Romero |
| Abstract: | This paper evaluates the effectiveness of femicide laws in combating gender-based killings of women, a major cause of premature female mortality globally. Focusing on Mexico, a pioneer in adopting such legislation, the paper leverages variations in the enactment of femicide laws and associated prison sentences across states. Using the difference-in-difference estimator, the analysis reveals that these laws have not significantly affected the incidence of femicides, homicides of women, or reports of women who have disappeared. These findings remain robust even when accounting for differences in prison sentencing, whether states also implemented unilateral divorce laws, or decriminalized abortion alongside femicide legislation. The results suggest that legislative measures are insufficient to address violence against women in settings where impunity prevails. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2407.06722 |
| By: | Boone, Christopher (University of Massachusetts Amherst); Kaila, Heidi (World Bank); Sahn, David E. (Cornell University) |
| Abstract: | We examine the impact of a six-fold increase in the global vanilla price on smallholder vanilla-farming households in Madagascar. The price increase leads to sizable gains in household assets and significant improvements in adult psychological well-being, cognitive performance, and optimism about the economy. In contrast, we find no significant effects on children's health or schooling. Given substantial evidence from the literature that improvements in household economic resources can have large effects on children over the long run, the lack of shorterterm effects in this setting may reflect the time-varying nature of the impact or the need for additional complementary investments. |
| Keywords: | export commodities, agriculture, human capital, crime |
| JEL: | O12 O13 I15 I31 Q12 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17085 |
| By: | Celhay, Pablo (Pontificia Universidad Catolica de Chile); Gallegos, Sebastian (Universidad Adolfo Ibañez) |
| Abstract: | This paper presents new evidence on schooling mobility across three generations in six Latin American countries. By combining survey information with national census data, we have constructed a novel dataset that includes 50, 000 triads of grandparents, parents, and children born between 1890 and 1990. We estimate five intergenerational mobility (IGM) measures, finding that (i) the empirical multigenerational persistence in our six countries is twice as high as in developed countries, and 77% higher than what the theoretical model by Becker & Tomes (1986) predicts; (ii) Clark's (2014) theory of high and sticky persistence provides a better approximation for describing mobility across multiple generations in our sample; (iii) Even with high persistence, we uncover significant mobility improvements at the bottom of the distribution by estimating measures of absolute upward mobility (Chetty et al., 2014) and bottom-half mobility (Asher et al., 2022) over three generations. This novel evidence deepens our understanding of long-term mobility, and we expect future research to replicate it as more multigenerational data becomes available in different contexts. |
| Keywords: | developing countries, Latin America, intergenerational mobility, educational policy, multiple generations, compulsory schooling |
| JEL: | J62 N36 I24 I25 I28 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17072 |
| By: | Jose Aurazo; Farid Gasmi |
| Abstract: | Low financial inclusion and high labor informality are two major challenges in developing countries. Using Peruvian survey data from 2015-18, we explore the dynamic relationship between these two variables by examining how labor informality and movements between formal and informal jobs may affect the transition probabilities of financial inclusion. First, we find that becoming informally employed reduces the probability of entering the formal financial system by 8 percentage points (pp) and increases the likelihood of exiting from it by 9.3 pp. Relative to persistently informal workers, those who stay in formal jobs have a 9 pp higher probability of gaining access to bank accounts, and 12 pp lower probability of losing access. Workers who move into formal jobs are more likely to enter the formal financial system by 9.7 pp and less likely to exit from it by 7.1 pp. These results underscore the complementarity of formalizing the informal sector and expanding access to financial services. |
| Keywords: | financial inclusion, labor informality, transition probabilities, dynamic random-effect panel probit |
| JEL: | C23 D14 E26 I31 O17 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:bis:biswps:1200 |
| By: | Roxana Guti\'errez-Romero; Nayely Iturbe |
| Abstract: | Mexico has experienced a notable surge in assassinations of political candidates and mayors. This article argues that these killings are largely driven by organized crime, aiming to influence candidate selection, control local governments for rent-seeking, and retaliate against government crackdowns. Using a new dataset of political assassinations in Mexico from 2000 to 2021 and instrumental variables, we address endogeneity concerns in the location and timing of government crackdowns. Our instruments include historical Chinese immigration patterns linked to opium cultivation in Mexico, local corn prices, and U.S. illicit drug prices. The findings reveal that candidates in municipalities near oil pipelines face an increased risk of assassination due to drug trafficking organizations expanding into oil theft, particularly during elections and fuel price hikes. Government arrests or killings of organized crime members trigger retaliatory violence, further endangering incumbent mayors. This political violence has a negligible impact on voter turnout, as it targets politicians rather than voters. However, voter turnout increases in areas where authorities disrupt drug smuggling, raising the chances of the local party being re-elected. These results offer new insights into how criminal groups attempt to capture local governments and the implications for democracy under criminal governance. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2407.06733 |
| By: | John H.Y. Edwards (Tulane University) |
| Abstract: | This paper examines the impact of education quality on income inequality among men and on female labor force participation. I introduce a new dataset on local education expenditures for a 64-year period. By matching education spending to the time and place where each person went to school, the data allow for a much more granular measurement of human capital differences than measures like level of schooling or years of school attainment. They also permit measurement of human capital differences and evolution over a much longer time period than the data that are typically available. I show that differences in the quality of education received during childhood become significant determinants of income differences among fully employed adult men. In a finding that is new to the literature, I report that school quality differentials are significant determinants of how adult women allocate their time between domestic labor and formal wage work. |
| Keywords: | Female Labor Force Participation, Women and Economic Development, Brazil, Education Quality, Income Distribution, Education |
| JEL: | I24 I25 O15 J24 J16 D31 D63 H75 N16 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:tul:wpaper:2409 |
| By: | Ghozi Naufal Ali (Department of Economics, Faculty of Economics & Business, Universitas Gadjah Mada); Ester Dwi Sabtu (Department of Economics, Faculty of Economics & Business, Universitas Gadjah Mada); Muhammad Putra (Department of Economics, Faculty of Economics & Business, Universitas Gadjah Mada); Qisha Quarina (Department of Economics, Faculty of Economics & Business, Universitas Gadjah Mada) |
| Abstract: | Pollution (in this term, air pollution) is an environmental phenomenon that negatively impacts the lives of the broader community and harms all aspects of the human dimension, such as health and the economy. This study aims to quantify the impact of pollution on worker productivity in developing countries using longitudinal data from Indonesia in two periods (2007 and 2014) and utilizing satellite data to represent air pollution data better. This study uses an instrumental variable (IV) approach and expands it by quantifying health aspects as one of the transmissions in the relationship between pollution and productivity. The result is that pollution negatively impacts worker productivity, with a dominant negative effect transmitted by health factors and determines their productivity. For this reason, the government is involved in tackling increasing pollution to minimize the increase in disease cases while minimizing economic losses from this phenomenon in the future. |
| Keywords: | Pollution; Labor Productivity; Instrumental Variable (IV); Mediation Analysis; Developing Country |
| JEL: | J21 J22 J24 Q52 Q53 |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:gme:wpaper:202403004 |