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on Economic Geography |
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Issue of 2024‒10‒14
five papers chosen by Andreas Koch, Institut für Angewandte Wirtschaftsforschung |
| By: | Rodríguez-Puello, Gabriel; Rickardsson, Jonna |
| Abstract: | Little is known about the spatial diffusion of the effects of economic shocks on the labor market. We use the mining boom resulting from the unexpected increase in the international prices of resources, geocoded microdata originating from administrative registers of individuals in Sweden, and dynamic difference-in-differences specifications to assess the spatial diffusion of economic shocks on labor market outcomes; we focus specifically on people to determine who is affected by the mining boom. We find consistent short- and long-lasting positive effects of the mining boom on individual earnings that spread as far as 83 km from the mining site. We also find a large gain in earnings and employment for residents directly employed in the mining sector, accompanied by significant spillover effects in other sectors. Furthermore, we find evidence of the migration of young, nonmarried, and highly educated individuals to the mining area, who obtain benefits from the mining boom in terms of earnings and employment; this is especially true for migrants who relocate to work directly in the mining sector. |
| Date: | 2024–09–07 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:tzmf2 |
| By: | Carrieri, Vincenzo (University of Calabria); de Blasio, G. (International Monetary Fund); Ferrara, Andreas (University of Warwick); Nisticò, Rosanna (University of Calabria) |
| Abstract: | This paper provides insights into the design of effective location-based policies. In the context of European regional policy, we use algorithms to predict regions that are likely to underutilize funding and identify the key determinants of their low absorptive capacity. We then use a regression discontinuity design (RDD) to document that EU funds are ineffective in recipients predicted to have low absorptive capacity while increasing output and employment in high-capacity regions. Our approach allows early identification and targeting of interventions to increase regional spending capacity based on publicly available data and standard algorithms, thereby facilitating implementation by policymakers. |
| Keywords: | program design, location-based policies, machine learning |
| JEL: | C21 F35 H77 R11 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17308 |
| By: | Stephan Heblich; Stephen J. Redding; Yanos Zylberberg |
| Abstract: | We examine the distributional consequences of trade using the New World Grain Invasion that occurred in the second half of the 19th century. We use a newly-created dataset on population, employment by sector, property values, and poor law transfers for over 10, 000 parishes in England and Wales from 1801–1901. In response to this trade shock, we show that locations with high wheat suitability experience population decline, rural-urban migration, structural transformation away from agriculture, increases in welfare transfers, and declines in property values, relative to locations with low wheat suitability. We develop a quantitative spatial model to evaluate the income distributional consequences of this trade shock. Undertaking counterfactuals for the Grain Invasion, we show that geography is an important dimension along which these income distributional consequences occur. |
| JEL: | F14 F16 F66 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32958 |
| By: | Pardy, Martina; Riom, Capucine; Hoffmann, Roman |
| Abstract: | Worsening climatic conditions are a significant threat to livelihoods, health and well-being worldwide. In this paper, we estimate the impact of temperature and precipitation anomalies on inequality and poverty using a dataset combining comprehensive climatological data with subnational regional wealth and inequality measures derived from the Demographic and Health Surveys for 52 countries and 453 regions. Using the International Wealth Index as a comparative measure of material wealth, we find a significant impact of temperature anomalies on the distribution of material wealth. We estimate that an average temperature anomaly of one standard deviation in the past 4 years increases the regional Gini coefficient by 0.018 points and increases the share of extremely poor households by 4.1 percent. The impacts are stronger in rural areas. We find that temperature anomalies affect inequality through multiple channels, including agricultural employment, the deterioration of assets, decreased economic activity, higher unemployment and worsened access to healthcare. The impacts of precipitation anomalies on inequality, on the other hand, are more ambiguous. |
| Keywords: | environment; inequality; regional development |
| JEL: | Q56 I31 R11 |
| Date: | 2024–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:125447 |
| By: | AUTERI Davide (European Commission - JRC); ATTARDO Carmelo (European Commission - JRC); BERZI Matteo (European Commission - JRC); DORATI Chiara (European Commission - JRC); ALBINOLA Federico; BAGGIO Lara; BUCCIARELLI Giuseppe; BUSSOLARI Ioris; DIJKSTRA Lewis (European Commission - JRC) |
| Abstract: | Quantitative indicators at the local level play an increasingly important role in the formulation and evaluation of regional policies. Regional statistical indicators are available from several sources, but comparability of their time-series is often affected by breaks caused by boundary changes (split or merge of regions) that modify the shape of the concerned areas over time. ARDECO (Annual Regional Database of the European Commission) aims to offer full comparability of long and harmonised time-series of demographic and socio-economic variables at the regional and sub-regional level. ARDECO is released on a quarterly basis, with two major releases in correspondence of the public availability of the AMECO Spring (May) and Autumn (November) economic forecasts. The two major releases are complemented by a release in March, which includes the annual update of regional accounts from Eurostat, and by an interim release during the summer. In case of need, minor versions are also released at other times of the year. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:termod:202402 |