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on Transition Economics |
| By: | Boffy-Ramirez, Ernest (University of Colorado Denver); Moon, Soojae (University of Colorado Denver) |
| Abstract: | Together with the rapid growth of the Chinese economy, there has been a growing divide in the earnings of urban and rural residents. In this paper we focus on China's household registration system, or "hukou", as a potential source of the earnings gap. Using multiple waves of data from the Chinese Health and Nutrition Survey from 1993 through 2011, we take advantage of variation in hukou status generated by individual-level changes over time. Unlike previous studies, we are able to control for fixed individual-specific characteristics that determine earnings and focus specifically on estimating an urban hukou "premium". For estimates that do not account for time-invariant individual characteristics, urban hukou holders earn almost 30% more than rural hukou holders. After we account for individual-level fixed characteristics, the urban hukou premium drops to 6–8%. Our empirical evidence indicates that the hukou system is a notable component of the urban-rural earnings differential, but its importance should not be overstated. Given long-standing differences in access to government funding and social services between rural and urban populations, relaxing residency restrictions may not be a panacea for curbing rising income inequality. |
| Keywords: | hukou, migration, China, urban-rural income gap, inequality, labor market frictions |
| JEL: | J30 J80 O15 R23 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11022&r=tra |
| By: | Qu FENG (Department of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.); Zhifeng WANG (Department of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.); Guiying Laura WU (Department of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.) |
| Abstract: | China has experienced high-speed catch-up growth with an average annual rate of over 8% in per capita GDP in the past four decades. Using growth accounting, Zhu (2012) nds that the growth of total factor productivity (TFP) accounts for 77% of Chinas per capita GDP growth during 1978-2007, and argues that Chinas TFP growth is mainly driven by resource reallocation due to market liberalization and institutional reforms. This paper aims to estimate Chinas aggregate productivity growth by applying three leading methods of estimating rm-level production function on Chinese manufacturing rms during 1998-2007, and quantify the contribution of resource reallocation to productivity growth. In addition, we also empirically compare the three estimation methods in this large data set. |
| Keywords: | Chinas economic growth, TFP growth, production function, resource reallocation |
| JEL: | D24 O14 |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:nan:wpaper:1706&r=tra |
| By: | Carlos Garriga; Aaron Hedlund; Yang Tang; Ping Wang |
| Abstract: | This paper explores the contribution of the structural transformation and urbanization process to China's housing-market boom. Rural to urban migration together with regulated land supplies and developer entry restrictions can raise housing prices. This issue is examined using a multi-sector dynamic general-equilibrium model with migration and housing. Our quantitative findings suggest that this process accounts for about 80 percent of urban housing price changes. This mechanism remains valid in extensions calibrated to the two largest cities with most noticeable housing booms and to several alternative setups. Overall, supply factors and productivity account for most of the housing price growth. |
| JEL: | E20 O41 R21 R31 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23819&r=tra |
| By: | Tuyen Quang Tran (University of Economics and Business, Vietnam National University, Hanoi); Huong Vu Van (Academy of Finance, Hanoi) |
| Abstract: | This study examines the relationship between housing and subjective well-being among the Vietnamese elderly, using data from the 2011 Vietnam Ageing Survey. Our regression analysis reveals that permanent housing and better amenities are major factors contributing to housing satisfaction and life satisfaction. Notably, we find that housing satisfaction has a strongly positive impact on life satisfaction and the impact is stronger after controlling for endogeneity problems. Thus, the finding confirms that housing is an important life domain and as a result, housing satisfaction is a strong predictor of life-satisfaction judgments. The findings might suggest that people made a rational choice when they invested a large amount of resources in their houses with notable well-being gains. Also, another implication here is that policies and programs to assist poor families in moving out of temporary accommodation or improving housing amenities are likely to be beneficial in improving well-being for the poorelderly. |
| Keywords: | Aging, Elderly, Endogeneity, Housing satisfaction, Subjective well-being, Vietnam |
| JEL: | D4 D11 D6 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:dpc:wpaper:0217&r=tra |
| By: | Huong Vu Van (Academy of Finance, Hanoi); Tuyen Quang Tran (University of Economics and Business, Vietnam National University, Hanoi); Tuan Van Nguyen (University of Dalat, Vietnam); Lim Steven (University of Waikato, New Zealand) |
| Abstract: | Using a nationwide survey of provincial institutional quality and a sample of private manufacturing small and medium scale enterprises (the SMEs), this paper is the first to examine the effects of corruption on financial performance of the Vietnamese private SMEs. Interestingly, contrary to previous findings, the study finds that corruption as measured by a dummy variable does not affect firms’ financial performance after controlling for heterogeneity, simultaneity and dynamic endogeneity. However, we find that the intensity of bribe and many types of corruption have negative impacts on firms’ financial performance. Thus, a typical approach using only a dummy variable of bribe might not adequately evaluate the impact of bribe intensity or even ignored negative impacts of some types of bribe on firms’ financial performance. Our findings imply that anti-corruption measures are necessary to the development of the Vietnamese private SMEs. |
| Keywords: | Corruption; financial performance; SMEs; institutional quality; Vietnam |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:dpc:wpaper:0117&r=tra |
| By: | Ayhan, Sinem H. (IZA); Gatskova, Kseniia (Institute for East and Southeast European Studies, Regensburg); Lehmann, Hartmut (University of Bologna) |
| Abstract: | This paper provides evidence on the impacts of non-cognitive skills and attitudes towards risk on the decision to migrate from rural to urban areas. Our analysis is based on a unique four-wave panel of Ukrainian Longitudinal Monitoring Survey for the period between 2003 and 2012. Adopting the Five Factor Model of personality structure, and using it in the evaluation of non-cognitive skills, our results suggest that such personality traits as openness to new experience and the willingness to take risks increase the probability of migration. On the other hand, the non-cognitive skills conscientiousness and extraversion are found to be negatively associated with the propensity to migrate. The effects are statistically and quantitatively significant, and mainly driven by movements from rural areas into cities. Our results are robust to several sensitivity checks, including tests for reverse causality. |
| Keywords: | migration, non-cognitive skills, Big Five, risk attitudes |
| JEL: | J61 D03 D81 R23 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp10982&r=tra |
| By: | Teng Ma (Graduate School of Economics, Kobe University); Kenji Takeuchi (Graduate School of Economics, Kobe University) |
| Abstract: | This study examines the effects of air pollution control within the thermal power sector during the 2008 Beijing Olympic Games (BOG08). Using data on pollution control equipment and energy intensity, we investigate for significant differences in their levels between provinces under the regional control policy for BOG08 and other provinces. The results suggest that the energy intensity of thermal power plants improved in 2007 and 2008 in provinces designated as areas requiring coordinated air pollution control for the Olympic Games. On the other hand, we found weaker statistical evidence for treatment effects on pollution control equipment. |
| Keywords: | Air pollution; China; Beijing Olympic Games; Thermal power sector |
| JEL: | Q52 L51 L94 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:koe:wpaper:1718&r=tra |
| By: | Shahbaz, Muhammad; Bhattacharya, Mita; Kumar, Mantu |
| Abstract: | This paper explores the impact of industrialisation and urbanisation on financial development by incorporating the role of institutional quality for India and China over the period of 1970-2013. We apply the bounds testing approach, which accommodates structural breaks, in order to test the presence of cointegration between the variables. The results show the existence of long-run dynamics between the series. Furthermore, we establish that industrialisation and urbanisation lead to financial development and that the lack of institutional quality and government size reduces financial development. Trade openness enhances Indian financial development but hinders Chinese financial development. The causality analysis depicts the bidirectional causality between urbanisation (industrialisation) and financial development for India. In the case of China, the urbanisation Granger causes financial development, and the feedback effect exists between industrialisation and financial development. Institutional quality is found to be the core factor in enhancing financial development in both countries with a feedback effect. |
| Keywords: | India, China, Financial Development, Institutions |
| JEL: | A1 |
| Date: | 2017–09–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:81609&r=tra |
| By: | Bachev, Hrabrin; Ivanov, Bodjidar; Toteva, Desislava; Sokolova, Emilia |
| Abstract: | This paper presents a holistic approach for assessing agrarian sustainability in Bulgaria based on its economic, social and ecological aspects on sectoral macro-level. It is based on official statistical and other information as well as on expert evaluation. Our study has found that the Bulgarian agriculture on macro-level has good sustainability. Some of the sustainability aspects have higher levels (e.g. the economic aspect) while others (social and environmental) are inferior. Study results could help in focusing the political efforts, so that the agrarian sustainability, in its social and ecological aspect, could be increased. However, a further research is needed to evaluate the level of sustainability at micro-level, so that the major issues and problem areas are addressed accordingly. |
| Keywords: | agrarian sustainability, sustainability indicators, economic, social, ecological aspects, Bulgarian agriculture |
| JEL: | Q10 Q15 Q18 Q2 Q20 Q3 Q30 Q5 Q52 Q53 Q54 Q56 Q57 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:81593&r=tra |
| By: | Jan Hajek; Roman Horvath |
| Abstract: | We estimate a global vector autoregression model to examine the effects of euro area and US monetary policy stances, together with the effect of euro area consumer prices, on economic activity and prices in non-euro EU countries using monthly data from 2001-2016. Along with some standard macroeconomic variables, our model contains measures of the shadow monetary policy rate to address the zero lower bound and the implementation of unconventional monetary policy by the European Central Bank and US Federal Reserve. We find that these monetary shocks have the expected qualitative effects but their magnitude differs across countries, with Southeastern EU economies being less affected than their peers in Central Europe. Euro area monetary shocks have greater effects than those that emanate from the US. We also find certain evidence that the effects of unconventional monetary policy measures are weaker than those of conventional measures. The spillovers of euro area price shocks to non-euro EU countries are limited, suggesting that the law of one price materializes slowly. |
| Keywords: | Global VAR, international spillovers, monetary policy, shadow rate |
| JEL: | E52 E58 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:cnb:wpaper:2017/05&r=tra |
| By: | Lewandowski, Piotr (Institute for Structural Research (IBS)); Góra, Marek (Warsaw School of Economics); Lis, Maciej (Institute for Structural Research (IBS)) |
| Abstract: | Between 2002 and 2015, temporary employment in Poland more than doubled. Poland became the country with the highest share of temporary jobs in the EU. In this paper, we study how this process affected job quality and job quantity. We analyse the gaps between temporary and permanent workers in six dimensions of jobs quality, adopting measures proposed by the OECD and Eurofound. Of these gaps, the differences in earnings quality, job security, and work scheduling quality were the most pronounced. Job quality has improved for both groups of workers, but the gaps have not closed completely. Firms in Poland prefer to employ temporary rather than permanent workers because of the lower firing costs, tax wedges, and wages associated with temporary contracts. We use a stylised labour demand model to quantify the upper bound of a potential job creation effect due to lower labour costs incurred through the use of temporary contracts. We find that this effect did not exceed 4% of dependent employment in 2015. We cannot rule out the possibility that the net employment effect was zero. Our findings show that even if the availability of less-costly temporary contracts caused some additional jobs to be created, temporary workers suffered from lower job quality in several dimensions. |
| Keywords: | job quality, temporary employment, segmentation |
| JEL: | J41 J28 J81 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11012&r=tra |
| By: | Xiao CHEN (Department of Finance, Jinan University, Guangzhou 510630, China.); Bihong HUANG (Asian Development Bank Institute, Kasumigaseki Building 8F, 3-2-5 Kasumigaseki, Chiyoda-ku, Tokyo 100-6008, Japan.); Dezhu YE (Department of Finance, Research Institute of Finance, Jinan University, Guangzhou 510630, China.) |
| Abstract: | This paper investigates the role of punctuation in the peer-to-peer (P2P) lending market. Using data from Renrendai, one of the largest P2P lending platforms in China, we investigate how the amount of punctuation used in loan descriptions influences the funding probability, borrowing rate, and default. The empirical evidence shows that the amount of punctuation is negatively associated with the funding probability and borrowing rate. We propose that the usage of punctuation affects the readability of a loan description and reflects borrowers’ self-control and cognitive ability. Within a given number of words, excessive usage of punctuation makes loan description informal and reduces the readability of the text, thereby impairing investors’ trust in borrowers. Moreover, borrowers that overuse punctuation may have lower ability of self-control, and tend to underestimate the risk of borrowing and offer lower borrowing rate due to overconfidence. |
| Keywords: | P2P lending; information asymmetry; word; punctuation |
| JEL: | G10 G11 G14 G20 G23 G29 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:nan:wpaper:1707&r=tra |