nep-dev New Economics Papers
on Development
Issue of 2024‒09‒30
thirteen papers chosen by
Jacob A. Jordaan, Universiteit Utrecht


  1. The Geography of Intergenerational Mobility in Latin America and the Caribbean By Muñoz, Ercio
  2. Distribution, Inequality and Poverty in Colombia: An Assessment of the Contribution of the Minimum Wage By Francisco Lasso-Valderrama; Carmiña O. Vargas
  3. The Arrival of Fast Internet and Employment in Africa - Comment By Roodman, David
  4. Working Paper: Conflicts and the New Scramble for African Resources -- A Shift-Share Approach By Rapha\"el Boulat
  5. Pandemic and SMEs in an emerging country By Hernán Bejarano; Pedro Hancevic; Héctor Núñez
  6. Income shocks and intrahousehold resource allocation: evidence from rural Ethiopia By Jose, Anu
  7. Access to clean cooking fuel and women outcomes By Bharti Nandwani; Manisha Jain
  8. Property inheritance rights and female political participation in India By Bharti Nandwani; Punarjit Roychowdhury
  9. The Economics of Abduction Marriage: Evidence from Ethiopia By Garcia-Hombrados, Jorge; Novak, Lindsey
  10. Effect of demand and supply side factors on school education outcomes in India By Surabhi Garg; Srijit Mishra
  11. Revisiting the linkage between remittances inflow and economic growth: A semi-parametric estimation with panel data By Farroukh, Arafet; Mazioued, Manel; Pédussel Wu, Jennifer
  12. The role of foreign aid in the nexus between capital flight and unemployment in Sub-Saharan Africa By Asongu, S.A; Odhiambo, N.M
  13. Impact of teacher gender and role models on student outcomes in India By Eshita Goswami

  1. By: Muñoz, Ercio
    Abstract: This paper estimates intergenerational mobility in education using data from 91 censuses in 24 countries in Latin America and the Caribbean spanning over half a century. It measures upward mobility as the likelihood that individuals will complete one educational stage more than their parents (primary education for those whose parents did not finish primary school, or secondary education for those whose parents did not complete secondary school). It measures downward mobility as the likelihood that an individual will fail to complete a level of education (primary or secondary) that their parents did attain. In addition, the paper explores the geography of educational intergenerational mobility using nearly 400 “provinces” and more than 6, 000 “districts, ” finding substantial cross-country and within-country heterogeneity. It documents a decline in the mobility gap between urban and rural populations and small differences by gender. It also finds that upward mobility is increasing and downward mobility is decreasing over time. Within countries, the level of mobility correlates closely to the share of the preceding generation that completed primary school. In addition, upward mobility is negatively correlated with distance to the capital and the share of the workforce employed in agriculture, but is positively correlated with the share of the workforce employed in industry. The opposite is true of downward mobility.
    Keywords: Socioeconomic mobility;Education;Latin America and the Caribbean
    JEL: D63 I24 J62
    Date: 2024–07
    URL: https://d.repec.org/n?u=RePEc:idb:brikps:13623
  2. By: Francisco Lasso-Valderrama; Carmiña O. Vargas
    Abstract: In Colombia, 50% of labor income is lower than the legal MW level. It is in this context that we analyze the effect of increasing MW on labor income distribution and its inequality, household income distribution and its inequality, and on monetary poverty prevalence. Specifically, we study the unconditional quantiles to establish whether there are differential effects for low quantiles, for those closer to MW, and for higher quantiles. We perform this analysis for different occupational groups. We also assess the effects of MW relative to median on labor income inequality, measured by its Gini coefficient, and on monetary poverty prevalence. We find that increases in MW raises quantile values of labor income for most occupational groups, except for the 10th quantile of those distributions. For this quantile, the effects are mostly not statistically significant. With respect to household income per-capita, we find that increasing MW raises all income quantiles, except for the lowest 10% of income. The effect for the 10th quantile is negative. Consistent with those results, we find that increasing MW when it is high relative to median income increases inequality measured by the Gini coefficient as well as monetary poverty prevalence. We use unconditional quantile regressions for our analysis. We use the microdata of a pooled sample of household surveys in Colombia from 2008 to 2019. **** RESUMEN: En Colombia, el 50% de los ingresos laborales son más bajos que el salario mínimo (SM). En este contexto, analizamos el efecto del aumento del SM relativo al ingreso mediano sobre la distribución del ingreso laboral y su desigualdad, la distribución del ingreso de los hogares y su desigualdad, y sobre la prevalencia de pobreza monetaria. Específicamente, estudiamos los cuantiles incondicionales para establecer si existen efectos diferenciales para los cuantiles bajos, para los más cercanos al SM y para los cuantiles superiores. Realizamos este análisis para diferentes grupos ocupacionales. También evaluamos los efectos de incrementos en el SM relativo al mediano sobre la desigualdad de ingresos, medida por su coeficiente de Gini, y sobre la prevalencia de pobreza monetaria. Encontramos que los aumentos en el SM relativo incrementan el valor de los cuantiles de la distribución de los ingresos laborales para la mayoría de los grupos ocupacionales, excepto para el cuantil 10 de esas distribuciones. Para este cuantil, los efectos son en su mayoría no estadísticamente significativos. Con respecto al ingreso per cápita de los hogares, encontramos que el aumento del SM relativo incrementa todos los cuantiles de la distribución de estos ingresos, excepto el 10% más bajo. El efecto para el cuantil 10 es negativo. En concordancia con estos resultados, encontramos que incrementos del SM cuando éste es alto relativo al ingreso mediano incrementa la desigualdad medida por el coeficiente de Gini, así como la prevalencia de pobreza monetaria. Para nuestro análisis, utilizamos regresiones cuantílicas incondicionales. Usamos los microdatos de una muestra agrupada de encuestas de hogares en Colombia de 2008 a 2019.
    Keywords: minimum wage, wage inequality, income inequality, poverty, salario mínimo, desigualdad salarial, desigualdad de ingresos, pobreza
    JEL: J39 J31 C31
    Date: 2024–09
    URL: https://d.repec.org/n?u=RePEc:bdr:borrec:1279
  3. By: Roodman, David
    Abstract: Hjort and Poulsen (2019) frames the staggered arrival of submarine Internet cables on the shores of Africa circa 2010 as a difference-in-differences natural experiment. The paper finds positive impacts of broadband on individual- and firm-level employment and nighttime light emissions. These results largely are not robust to alternative ge-ocoding of survey locations, to correcting for a satellite changeover at end-2009, and to revisiting a definition of the treated zone that has no clear technological basis, is narrower than the spatial resolution of nearly all the data sources, and is empirically suboptimal as a representation of the geography of broadband.
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:zbw:i4rdps:148
  4. By: Rapha\"el Boulat
    Abstract: This paper estimates the causal effect of mineral trade on conflicts in Africa using a Shift-Share IV approach based on an exogenous price-commodity shock. The main result is that an increase in mineral trade significantly increases the number of conflicts while it has no clear effect on fatalities. Exploring heterogeneous effects, I find that a specific group of minerals, oil and fuels, drives the results on the number of conflicts. Moreover, the group of rare minerals such as coltan, precious metals or cobalt has no effect on the number of conflicts but appears to have an important impact on the number of fatalities.
    Date: 2024–08
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2408.08923
  5. By: Hernán Bejarano (Division of Economics, CIDE); Pedro Hancevic (Division of Economics, CIDE); Héctor Núñez (Division of Economics, CIDE)
    Abstract: In this paper, we analyze the impact of the COVID-19 pandemic on the sales and expenditures of small and medium-sized businesses in Mexico. Using a novel survey that captures the economic conditions and expectations before and during the pandemic, we also incorporate electricity billing data as a proxy for economic activity and as a revealed measure of firms' flexibility in reducing costs. We examine these variables in relation to firms' characteristics, adaptation strategies, and expectations during the pandemic. Our analysis employs non-parametric tests and a set of econometric models, revealing a significant decline in sales alongside limited flexibility in expenditures. The effects vary depending on the strategies firms adopt to cope with the crisis and their negative expectations regarding a quick return to normality. Consequently, most SMEs face a precarious economic situation, highlighting the need for new policies and strategies to enhance their survival prospects in emerging economies such as Mexico.
    Keywords: COVID-19, small and medium-sized enterprises (SME), activity restrictions, electricity consumption, emerging countries
    JEL: D22 L20 Q41
    Date: 2024–09
    URL: https://d.repec.org/n?u=RePEc:emc:wpaper:dte639
  6. By: Jose, Anu
    Abstract: How do income shocks affect intra-household expenditure patterns in agricultural economies? Using rainfall data and household panel data, with responses from both spouses, from rural Ethiopia, we show that a negative household level income shock significantly reduces female expenditures relative to male expenditures (31.4% greater reduction). We specifically explore the channel of female and male labour supply as an explanation behind the observed differentiated impacts on spousal consumption. We find evidence that engaging in off-farm employment provides women with an independent income and allows them to smooth their expenditures during farm income shock. We also find evidence that the wife’s involvement in managing and controlling the household farm, measured as her time spent on the farm relative to the husband, negates the shock-induced gender differential in expenditures. Together, these results highlight gender-specific impacts of household income shocks on consumption and the role female economic opportunities play in negating intra-household impacts of such household shocks.
    Keywords: Income shocks, gender, intrahousehold allocation, labour supply, Ethiopia
    JEL: D13 J16 J22
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:121873
  7. By: Bharti Nandwani (Indira Gandhi Institute of Development Research); Manisha Jain (Indira Gandhi Institute of Development Research)
    Abstract: This paper examines the impact of India's Pradhan Mantri Ujjwala Yojana (PMUY), a clean cooking policy that offered free Liquified Petroleum Gas (LPG) connections to women from economically and socially disadvantaged households, on their well-being. Exploiting the targeted introduction of the policy; and using a large nationally representative data in a difference-in-difference framework, we show that the policy has a positive impact on women's health, education and employment, although the effects on education and employment outcomes are relatively modest. Further, we show that the beneficiary women have higher autonomy post-policy. We also document that in districts with initially lower levels of clean energy access, improvements in employment, education, and health outcomes are lower, but improvements in women's agency measures are higher. Our findings suggest that while the effect on women's autonomy is primarily driven by registering connections in their name, improvements in health, education and employment are due to increased usage of LPG as the main cooking fuel. Overall, these findings provide evidence that a gender-responsive policy like PMUY can effectively enhance access to clean cooking fuel and subsequently improve women's socio-economic outcomes through both connections and consumption channels.
    Keywords: Clean cooking fuel, energy access, women health, women agency, employment, gender-responsive policy
    JEL: Q48 I38 H42
    Date: 2024–08
    URL: https://d.repec.org/n?u=RePEc:ind:igiwpp:2024-017
  8. By: Bharti Nandwani (Indira Gandhi Institute of Development Research); Punarjit Roychowdhury (Shiv Nadar University)
    Abstract: The paper examines whether granting property inheritance rights to females improves their participation in politics as election candidates in India. Conservative gender norms in patriarchal societies like India discourage women from actively participating in politics, with socially enforced sanctions for non-compliance. Additionally, being politically active is costly, requiring significant contributions of time and resources. Improvement in property rights is likely to financially empower women, easing both the constraints. Using state-level variation in legal changes to women's property rights and employing a large administrative data on elections in India, we show that better property rights for women lead to an increase in women contesting for elections and likelihood of winning for women candidates. We also document that regional parties contest more female candidates and there is increased entry of new female candidates after the reform. Further, using a large household survey data, we provide evidence that the increased political participation is driven by improved financial autonomy of women after the inheritance reforms. We confirm that pre-existing trends are not confounding our results.
    Keywords: Gender, India, Female Political Participation, Property Rights
    JEL: J16 D72 K11 O12
    Date: 2024–07
    URL: https://d.repec.org/n?u=RePEc:ind:igiwpp:2024-012
  9. By: Garcia-Hombrados, Jorge (Universidad Autónoma de Madrid); Novak, Lindsey (Reed College)
    Abstract: A sizable share of marriages in several Asian and African countries are initiated by the man abducting the woman he wishes to wed. In this paper, we use quantitative and qualitative methods to characterize the practice of abduction marriage in Ethiopia. We first present the results from in-depth qualitative surveys with community leaders and abducted women in the Gambella region of Ethiopia to gain a deeper understanding of how the practice functions in these communities. These interviews suggest that abduction is typically used to overcome the refusal of the woman's family. Second, we use Demographic and Health Survey along with ethnographic data to characterize women and ethnic groups affected by this practice in Ethiopia. Finally, we empirically examine the central hypothesis about the persistence of this practice and find evidence consistent with the hypothesis that men often use abduction to improve bargaining power in marriage negotiations and reduce the size of the bride price payment. Specifically, we demonstrate that droughts - a proxy for income shocks in this setting - increase the probability of abduction marriage only for women from ethnic groups that traditionally exchange a bride price.
    Keywords: abduction marriage, marriage markets, social norms, bride price
    JEL: D1 D7 I3 J1 O1 Z1
    Date: 2024–08
    URL: https://d.repec.org/n?u=RePEc:iza:izadps:dp17242
  10. By: Surabhi Garg (Indira Gandhi Institute of Development Research); Srijit Mishra (Indira Gandhi Institute of Development Research)
    Abstract: A novelty of this study is to examine the effect of both demand and supply side factors on school education outcomes in India for 6-18 age group in 2019 by combining three different data sets, viz., Time Use Survey (TUS) 2019, Unified District Information Systems for Education Plus (UDISE+) 2019-20, and sub-group consistent population for 2019 extrapolated from Census of India. The proxies for demand side factors are gender, caste, religion and parents' education and the proxies for supply side factors are pupil-teacher ratio, infrastructure facilities and number of schools per school going age population. A two-stage Heckman Selection Model is used for the analysis. The model does a probit estimation at the first stage, with the dependent variable as whether the child attended the school or not. At the second stage, a least square estimation is done with the dependent variable as instructional time of the child in school. It is observed that both demand and supply side factors affect the probability of a child attending the school. However, at the second stage, it is observed that a higher number of proxies for supply side factors turn out to be significant in affecting the instructional time spent by the child in school. Given that the two-stage Heckman regression is based on the premise that higher instructional school time is associated with better education outcomes, it is difficult to place a cap on school time, especially for children with different characteristics and capabilities. Instead, a cap on the time mandated by schools is used for a robustness check. These estimation results also resonate with the baseline analysis. To wit, while both demand and supply side factors are relevant, the role of the State in facilitating the supply side factors has important public policy implications.
    Keywords: Demand Side Factors, Heckman Selection Model, India, School Education Outcomes, Supply Side Factors
    JEL: C30 C55 C81 C82 I21 I24 I25
    Date: 2024–07
    URL: https://d.repec.org/n?u=RePEc:ind:igiwpp:2024-013
  11. By: Farroukh, Arafet; Mazioued, Manel; Pédussel Wu, Jennifer
    Abstract: We investigate the relationship between remittances inflow and economic growth in a sample of 65 emerging countries over the period 1988-2018 using the semi-parametric panel data model with fixed effects as proposed by Baltagi and Li (2002). Our empirical results show that the effect of remittances inflow on economic growth exhibits a highly nonlinear pattern, which sheds new light on the remittances-growth nexus and provides evidence of a nonlinear relationship.
    Keywords: Remittances, Growth, Nonlinear effects, Semi-parametric regression, Panel data, Emerging countries
    JEL: C14 O15 F43
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:zbw:ipewps:301859
  12. By: Asongu, S.A; Odhiambo, N.M
    Abstract: This study assesses the relevance of foreign aid in the incidence of capital flight on unemployment in 20 countries in sub-Saharan Africa. The study is for the period 1996-2018, and the empirical evidence is based on interactive quantile regressions in order to assess the nexuses throughout the conditional distribution of the unemployment outcome variable. From the findings, capital flight has a positive unconditional incidence on unemployment, while foreign aid dampens the underlying positive unconditional nexus. Moreover, in order for the positive incidence of capital flight to be completely dampened, foreign aid thresholds of 2.230 and 3.964 (% of GDP) are needed at the 10th and 25th quantiles, respectively, of the conditional distribution of unemployment. It follows that the relevance of foreign aid in crowding out the unfavorable incidence of capital flight on unemployment is significantly apparent only in bottom quantiles or countries with below-median levels of unemployment. Policy implications are discussed. The study complements the extant literature by assessing the importance of development assistance in how capital flight affects unemployment in sub-Saharan Africa.
    Keywords: Foreign aid; capital flight; unemployment; Sub-Saharan Africa
    Date: 2024–01
    URL: https://d.repec.org/n?u=RePEc:uza:wpaper:31540
  13. By: Eshita Goswami (Indira Gandhi Institute of Development Research)
    Abstract: This study estimates the impact of teacher gender and tests for role model effects on various student outcomes such as test scores, transferrable skills, attendance and attitudes. We perform the analysis for subjects, such as Maths and English, which are male-dominated and female-dominated respectively as per traditional beliefs. We find that there is a presence of female role models when females teach English. However, female Maths teachers negatively affect students' outcomes. We attribute this to students' traditional perceptions regarding females being worse Maths teachers than males. We also perform a sub-sample analysis for co-ed sections and find that the role model effects get diluted, attributing to the influence of opposite gender peers in these sections.
    Keywords: Gender, Role Models, Test Scores, Attendance, Attitudes, Co-Educational Schools, Single-Sex Schools
    JEL: J16 I21 I24
    Date: 2024–08
    URL: https://d.repec.org/n?u=RePEc:ind:igiwpp:2024-016

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