|
on Urban and Real Estate Economics |
| By: | Yuta Kuroda |
| Abstract: | This study investigates the effect of disclosure of information regarding school quality on the stratification of elementary schools and the widening disparity in the academic ability of students between schools. Using the event in which school-level test scores were first disclosed in October 2014 in Matsue City in Japan, I estimated the change of the effect of test scores on housing rents and population in a school district before and after disclosure. I found that school-level test scores had a significantly positive effect on housing rents of apartments intended for a family after the scores were disclosed. I also found that disclosure significantly increased the population of elementary school-aged individuals within the attendance district of school with high test scores. Additionally, I found that the relative standard deviation of test scores after disclosure became larger than that measured before disclosure. These results suggest that disparity in the academic ability of students between schools may expand through increased housing rents after disclosure of school-level test results. |
| Date: | 2018–12 |
| URL: | http://d.repec.org/n?u=RePEc:toh:dssraa:90&r=all |
| By: | Oosterbeek, Hessel; Sóvágó, Sándor; van der Klaauw, Bas |
| Abstract: | We use rich data from the secondary-school match in Amsterdam to nonparametrically decompose school segregation by ethnicity and by household income into five additive sources: i) ability tracking, ii) noise, iii) residential segregation, iv) preference heterogeneity, and v) capacity constraints. Important features of the Amsterdam school district are its diverse population, that students can freely choose any school at their ability level, that school density is high and that private schools are absent. We find that school segregation is mainly driven by ability tracking and students from different groups having different preferences. Residential segregation, capacity constraints and noise play only a minor role. Of the four policies that we analyze, affirmative action in the form of minority quotas reduces segregation the most. This comes, however, at the cost of reducing student welfare. |
| Keywords: | Ability Tracking; Policy Simulations; School Match; Segregation |
| JEL: | I21 I24 I28 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13462&r=all |
| By: | Combes, Pierre-Philippe; Démurger, Sylvie; Li, Shi; Wang, Jianguo |
| Abstract: | We assess the role of internal migration and urbanisation in China on the nominal earnings of three groups of workers (rural migrants, low-skilled natives, and high-skilled natives). We estimate the impact of many city and city-industry characteristics that shape agglomeration economies, as well as migrant and human capital externalities and substitution effects. We also account for spatial sorting and reverse causality. Location matters for individual earnings, but urban gains are unequally distributed. High-skilled natives enjoy large gains from agglomeration and migrants at the city level. Both conclusions also hold, to a lesser extent, for low-skilled natives, who are only marginally negatively affected by migrants within their industry. By contrast, rural migrants slightly lose from migrants within their industry while otherwise gaining from migration and agglomeration, although less than natives. The different returns from migration and urbanisation are responsible for a large share of wage disparities in China. |
| Keywords: | agglomeration economies; China; human capital externalities; migrants; urban development; wage disparities |
| JEL: | J31 O18 O53 R12 R23 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13487&r=all |
| By: | Taisuke Sadayuki (Faculty of Political Science and Economics, Waseda University. 1-6-1 Nishiwaseda, Shinjukuku, Tokyo 169-8050, Japan); Yuki Kanayama (Graduate School of Economics, Waseda University, Japan); Toshi H. Arimura (Faculty of Political Science and Economics, Waseda University, Tokyo, Japan, and Research Institute for Environmental Economics and Management, Waseda University, Tokyo, Japan) |
| Abstract: | The Japanese housing market has been experiencing a rapid increase in the number of vacant housing units due to regulatory obstacles and decreasing population. When vacant housing is not adequately managed, it can cause a negative externality in the surrounding dwelling environment, such as illegal dumping of garbage and increased risks of arson and collapse. This paper investigates the externality of vacant houses in Toshima municipality, one of 23 wards in Tokyo prefecture. We find that a vacant house devalues nearby rental prices by 1~2% on average, and vacant houses with some deficits in the property bring about greater externalities. It is estimated, for instance, that addressing vacant houses with combustible materials present would bring about an increase in property-tax income of approximately 120 million yen in total, or 1.3 million yen per vacant house. Given the substantial number of existing vacant houses, local governments should discern the types of vacant houses that are causing a serious negative externality to take efficient countermeasures to address the issue. |
| Keywords: | External diseconomy, Dilapidated house, Empty house, Dwelling environment, Hedonic |
| JEL: | H23 Q53 R1 R31 R5 |
| URL: | http://d.repec.org/n?u=RePEc:was:dpaper:1901&r=all |
| By: | Gabarro, Marc; Irani, Rustom M; Peydró, José Luis; van Bekkum, Sjoerd |
| Abstract: | We examine the effects of macroprudential policy for household leverage, liquidity, and default. For identification, we exploit the August 2011 introduction of a limit on mortgage loan-to-value ratios in the Netherlands, in conjunction with population tax-return and property ownership data linked to the universe of housing transactions. First-time homebuyers most affected by the policy shock substantially reduce household leverage and mortgage debt servicing costs by taking on less mortgage debt. Rather than buying more affordable homes or taking non-regulated loans, households consume greater liquidity in the year of home purchase to plug the funding gap. Improvements in household solvency are accompanied by a lower mortgage default rate; however, along the extensive margin, fewer households transition from renting into ownership. These effects are stronger among poorer households and those with fewer liquid assets. |
| Keywords: | financial regulation; household finance; household leverage; Liquidity vs. Solvency; macroprudential policy; Residential Mortgages |
| JEL: | D14 D31 E21 E58 G21 G28 |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13503&r=all |
| By: | Sorana Toma (Centre de Recherche en Économie et Statistique (GENES)); Gregory Verdugo (Observatoire français des conjonctures économiques) |
| Abstract: | Recent decades have seen a rapid increase in the share of non-European immigrants in public housing in Europe, which has led to concern regarding the rise of ghettos in large cities. Using French census data over three decades, we examine how this increase in public housing participation has affected segregation. While segregation levels have increased moderately, on average, the number of immigrant enclaves has grown. The growth of enclaves is being driven by the large increase in non-European immigrants in the census tracts where the largest housing projects are located, both in the housing projects and the surrounding nonpublic dwellings. As a result, contemporary differences in segregation levels across metropolitan areas are being shaped by the concentration of public housing within cities, in particular the share of non-European immigrants in large housing projects constructed before the 1980s. Nevertheless, the overall effect of public housing on segregation has been ambiguous. While large projects have increased segregation, the inflows of non-European immigrants into small projects have brought many immigrants into census tracts where they have previously been rare and, thus, diminished segregation levels. |
| Keywords: | Social housing ; Public housing; Immigration; Segregation; France |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/1ck6j135a79b5pqdagv8visfep&r=all |
| By: | Yuta Kuroda |
| Abstract: | This study investigates the extent to which gradual and partial relaxation of the school-district system for public high schools impacts land prices and student academic achievement. In Matsue City, Japan, students from outside the school district were strictly prohibited from enrolling in general public schools. For many years, students who lived beyond the district boundary were unable to attend the most academic high school that prepared students to apply to high-status universities. In 2008, however, the school-district system was eliminated in the top academic track, where students were preparing to apply to prestigious universities. In the general track, up to 5% of all prospective candidates were allowed to enroll from outside the school district. Since 2016, the percentage of students allowed to enroll from outside the school district has risen to 20%. The present study applies hedonic land-price models using the fixed-effect approach, together with panel data from 2003 to 2018 and a regression discontinuity approach focusing on the boundary of the school district. The findings show that relaxing the school-district system significantly reduced land-prices within school districts with high-quality high schools. This suggests that relaxing the school-district system may reduce the value attributed to living in a high-quality school district. The impact of this change on the number of candidates successfully applying to universities is also analyzed. Although partial relaxation of the school-district system will expand the disparity of the ratio of successful applicants attending prestigious universities, the ratio of students attending national universities or all universities does not change. This implies that a partial relaxation of the system may affect only highly academic students. |
| Date: | 2018–12 |
| URL: | http://d.repec.org/n?u=RePEc:toh:dssraa:91&r=all |
| By: | Martin Gornig; Alexander Schiersch |
| Abstract: | This paper analyzes the effect of agglomeration economies on firms’ total factor productivity. We propose the use of a control function approach to overcome the econometric issue inherent to the two-stage approach commonly used in the literature. Estimations are conducted separately for four industry groups, defined by technological intensity, to allow for non-uniform effects of agglomeration economies on firms given their technological level. In addition, R&D is included to account for the firms’ own efforts to foster productivity through creating and absorbing knowledge. Finally, radii as well as administrative boundaries are used for defining regions. The results confirm differences in the strength and even in the direction of agglomeration economies: While urban economies have the largest effect on TFP for firms in high-tech industries, they have no effect on TFP in low-tech industries. For firms in the latter industries, however, the variety of the local economic structure has an impact, while this is irrelevant for the TFP of firms in high-tech industries. Only localization economies have a positive and significant effect on TFP throughout, but the effect increases with technological intensity of industries. Throughout, R&D is also found to have a positive effect that increases with technological intensity. |
| Keywords: | Total factor productivity, manufacturing firms, agglomeration economies, spatial concentration, structural estimation |
| JEL: | R11 R12 R15 D24 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1788&r=all |
| By: | Neil Bhutta; Jesse Bricker; Lisa J. Dettling; Jimmy Kelliher; Steven Laufer |
| Abstract: | We estimate a county-level model of household delinquency and use it to conduct "stress tests" of household debt. Applying house price and unemployment rate shocks from Comprehensive Capital Analysis Review (CCAR) stress tests, we find that forecasted delinquency rates for the recent stock of debt are moderately lower than for the stock of debt before the 2007-09 financial crisis, given the same set of shocks. This decline in expected delinquency rates under stress reflects an improvement in debt-to-income ratios and an increase in the share of debt held by borrowers with relatively high credit scores. Under an alternative scenario where the size of house price shocks depends on housing valuations, we forecast a much lower delinquency rate than occurred during the crisis, reflecting more reasonable housing valuations than pre-crisis. Stress tests using other scenarios for the path of house prices and unemployment also support the conclusion that household debt curren tly poses a lower risk to financial stability than before the financial crisis. |
| Keywords: | Delinquency ; Household debt ; Loan default ; Stress testing |
| JEL: | D14 G01 E37 |
| Date: | 2019–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2019-08&r=all |
| By: | Jedwab, Remi; Johnson, Noel; Koyama, Mark |
| Abstract: | The Black Death killed 40% of Europe's population between 1347-1352, making it one of the largest shocks in history. Despite its importance, little is known about its spatial effects and the effects of pandemics more generally. Using a novel dataset that provides information on spatial variation in Plague mortality at the city level, as well as various identification strategies, we explore the short-run and long-run impacts of the Black Death on city growth. On average, cities recovered their pre-Plague populations within two centuries. In addition, aggregate convergence masked heterogeneity in urban recovery. We show that both of these facts are consistent with a Malthusian model in which population returns to high-mortality locations endowed with more rural and urban fixed factors of production. Land suitability and natural and historical trade networks played a vital role in urban recovery. Our study highlights the role played by pandemics in determining both the sizes and placements of populations. |
| Keywords: | Black Death; cities; growth; Malthusian Theory. Migration; path dependence; Urbanization |
| JEL: | J11 N00 N13 O11 O47 R11 R12 |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13523&r=all |
| By: | Rodríguez-Pose, Andrés; Zhang, Min |
| Abstract: | Economic growth in China in recent decades has largely rested on the dynamism of its cities. High economic growth has coincided with measures aimed at improving the efficiency of local governments and with a mounting political drive to curb corruption. Yet the connection between government institutions and urban growth in China remains poorly understood. This paper is the first to look into the connection between government efficiency and corruption, on the one hand, and urban growth in China, on the other and to assess what is the role of institutions relative to more traditional factors for economic growth in Chinese cities. Using panel data for 283 cities over the period between 2003 and 2014, the results show that urban growth in China is a consequence of a combination of favourable human capital, innovation, density, local conditions, foreign direct investment (FDI), and, city-level government institutions. Both government quality - especially for those cities with the best governments - and the fight against corruption at the city level have a direct effect on urban growth. Measures to tackle corruption at the provincial level matter in a more indirect way, by raising or lowering the returns of other growth-inducing factors. |
| Keywords: | China; cities; Corruption; Economic Growth; government efficiency |
| JEL: | O43 R11 R58 |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13505&r=all |
| By: | Weinand, Sebastian; von Auer, Ludwig |
| Abstract: | Over the last three decades the supply of economic statistics has vastly improved. Unfortunately, statistics on regional price levels (sub-national purchasing power parities) have been exempt from this positive trend, even though they are indispensable for meaningful spatial comparisons of regional output, income, wages, productivity, standards of living, and poverty. To improve the situation, our paper demonstrates that a highly disaggregated and reliable regional price index can be compiled from data that already exist. We use the micro price data that have been collected for Germany's Consumer Price Index in May 2016. For the computation we introduce a multi-stage version of the Country-Product-Dummy method. The unique quality of our price data set allows us to depart from previous spatial price comparisons and to compare only exactly identical products. We find that the price levels of the 402 counties and cities of Germany are largely driven by the cost of housing and to a much lesser degree by the prices of goods and services. The overall price level in the most expensive region, Munich, is about 27 percent higher than in the cheapest region. Our results also reveal strong spatial autocorrelation. |
| Keywords: | spatial price comparison,regional price index,PPP,CPD-method,hedonic regression,consumer price data |
| JEL: | C21 C43 E31 O18 R10 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bubdps:042019&r=all |
| By: | Alberto Alesina; Elie Murard; Hillel Rapoport |
| Abstract: | We examine the relationship between immigration and attitudes toward redistribution using a newly assembled data set of immigrant stocks for 140 regions of 16 Western European countries. Exploiting within-country variations in the share of immigrants at the regional level, we find that native respondents display lower support for redistribution when the share of immigrants in their residence region is higher. This negative association is driven by regions of countries with relatively large Welfare States and by respondents at the center or at the right of the political spectrum. The effects are also stronger when immigrants originate from Middle-Eastern countries, are less skilled than natives, and experience more residential segregation. These results are unlikely to be driven by immigrants' endogenous location choices. |
| JEL: | D6 O15 P16 |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25562&r=all |
| By: | Donna, Javier D. |
| Abstract: | This paper develops a structural model of urban travel to estimate long-run price elasticities. A dynamic discrete choice demand model with switching costs is estimated, using a panel dataset with public market-level data on automobile and public transit use for Chicago. The estimated model shows that long-run own- (automobile) and cross- (transit) price elasticities are more elastic than short-run elasticities, and that elasticity estimates from static and myopic models are downward biased. The estimated model is used to evaluate the response to a gasoline tax. Static and myopic models mismeasure long-run substitution patterns, and could lead to incorrect policy decisions. |
| Keywords: | Long-run price elasticities, Dynamic demand travel, Hysteresis |
| JEL: | L71 L91 L98 |
| Date: | 2018–11–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:92233&r=all |
| By: | Martin, Alberto; Moral-Benito, Enrique; Schmitz, Tom |
| Abstract: | How do housing bubbles affect other economic sectors? We show that in the presence of collateral constraints, a bubble initially raises housing credit demand and crowds out credit to non-housing firms. If the bubble lasts, however, housing credit repayments raise banks’ net worth and expand credit supply, so that crowding-out eventually gives way to crowding-in. This is consistent with evidence from the recent Spanish housing bubble. Initially, credit growth of non-housing firms was lower at banks with higher bubble exposure, and firms relying on these banks exhibited lower credit and output growth. During the bubble’s last years, these effects reversed. JEL Classification: E32, E44, G21 |
| Keywords: | credit, financial frictions, financial transmission, housing bubble, investment, Spain |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20192245&r=all |
| By: | Qi, Shusen (xiamen university); De Haas, Ralph (european bank of reconstruction and development); Ongena, Steven (university of zuerich); Straetmans, Stefan (Finance) |
| Abstract: | We study how information sharing between banks influences the geographical clustering of branches. We construct a spatial oligopoly model with price competition that explains why bank branches cluster and how the introduction of information sharing impacts clustering. Dynamic data on 59,333 branches operated by 676 banks in 22 countries between 1995 and 2012 allow us to test the hypotheses derived from this model. Consistent with our model, we find that information sharing spurs banks to open branches in localities that are new to them but that are already relatively well served by other banks. Information sharing also allows firms to borrow from more distant banks. |
| Keywords: | information sharing, branch clustering |
| JEL: | D43 G21 G28 L13 R51 |
| Date: | 2019–02–12 |
| URL: | http://d.repec.org/n?u=RePEc:unm:umagsb:2019006&r=all |
| By: | Rodríguez-Pose, Andrés; von Berlepsch, Viola |
| Abstract: | This paper examines if internal migrants at the turn of the 20th century have influenced the long-term economic development of the counties where they settled over 100 years ago. Using Census microdata from 1880 and 1910, the distance travelled by American-born migrants between birthplace and county of residence is examined to assess its relevance for the economic development of US counties today. The settlement patterns of domestic migrants across the 48 continental states are then linked to current county-level development. Factors influencing both migration at the time and the level of development of the county today are controlled for. The results of the analysis underline the economic importance of internal migration. Counties that attracted American-born migrants more than 100 years ago are significantly richer today. Moreover, distance is crucial for the impact of internal migration on long-term economic development; the larger the distance travelled by domestic migrants, the greater the long-term economic impact on the receiving territories. |
| Keywords: | Counties; distance; economic development; internal migration; long-term; US |
| JEL: | J61 N11 O15 R23 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13485&r=all |
| By: | Badarinza, Cristian; Ramadorai, Tarun; Shimizu, Chihiro |
| Abstract: | Gravity models excel at explaining international trade and investment flows; their success poses a continuing puzzle. In a comprehensive dataset of global commercial real-estate investments, we find that the role of distance in the gravity model is well-explained by preferential matching between counterparties of the same nationality. This tendency for same-country matching is widespread, robust, and increases in poorly-governed locations. We structurally estimate an equilibrium matching model with a friction affecting different-nationality transactions. The model explains the persistent success of gravity using a combination of this friction and the spatial distribution of same-nationality counterparties, which is well-predicted by current and historical linguistic, cultural, and trade links between countries. |
| Keywords: | Commercial real estate; Cross-border flows; Foreign investment; Gravity; Matching; Trust |
| JEL: | D83 F14 F30 G11 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13491&r=all |
| By: | Christina Clark Tuttle; Philip Gleason; Melissa Clark |
| Abstract: | This article draws on data and experiences observing and analyzing school lotteries from the National Evaluation of Charter School Impacts to describe challenges associated with lottery-based research. |
| Keywords: | School Choice , Charter Schools , Lotteries , Randomized Control Trials, Education |
| JEL: | I |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:0d72bc371734463a852a060b9780dc36&r=all |
| By: | Karl Aiginger (Department of Economics, Vienna University of Economics and Business) |
| Abstract: | In the years following the financial crisis, Greece experienced a severe loss in real per capita income and accumulated a public debt much higher than GDP and that of any other EU country. The article briefly analyses the causes of this development, including the policy failures of Greece and the EU. It develops a game-changing strategy, which could return the country to a growth path. This starts with the vision that Greece can make use of its unique location between Europe, Asia and Africa to build a bridge connecting these regions with fascinating and productive complementarities. Given this new strategy, including regional leadership in decarbonisation, youth reform boards, and the Greek diaspora as a manager of reforming and financing new activities, Europe should cut a substantial part of the debt. This would be in the interest of Greece, the EU and Europe´s neighbours. |
| Keywords: | European strategy, a vision for Greece in the globalized world, new actors for reforms |
| JEL: | A13 D22 E02 E61 F13 F42 L52 |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp278&r=all |
| By: | Bindler, Anna; Ketel, Nadine |
| Abstract: | Little is known about the costs of crime to victims and their families. In this paper, we use unique and detailed register data on victimisations and labour market outcomes from the Netherlands to overcome data restrictions previously met in the literature and estimate event-study designs to assess the short- and long-term effects of criminal victimisation. Our results show significant decreases in earnings (6.6-9.3%) and increases in the days of benefit receipt (10.4-14.7%) which are lasting up to eight years after victimisation. We find shorter-lived responses in health expenditure. Additional analyses suggest that the victimisation can be interpreted as an escalation point, potentially triggering subsequent adverse life-events which contribute to its persistent impact. Heterogeneity analyses show that the effects are slightly larger for males regarding earnings and significantly larger for females regarding benefits. These differences appear to be largely (but not completely) driven by different offence characteristics. Lastly, we investigate spill-over effects on non-victimised partners and find evidence for a spill-over effect of violent threat on the partner's earnings. |
| Keywords: | crime; event-study design; labour market outcomes; victimisation |
| JEL: | I1 J01 J12 K4 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13431&r=all |
| By: | Peter Z. Schochet |
| Abstract: | For randomized controlled trials (RCTs) of education interventions, estimates of associations between student and mediating teacher practice outcomes can help examine the extent to which the data support the study's conceptual model. |
| Keywords: | Experimental Design , Program Evaluation , Statistics Research , Methodology |
| JEL: | I |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:80367b32df294d0dae76b082dbd36590&r=all |
| By: | Benjamin Montmartin (Observatoire français des conjonctures économiques); Marcos Herrera (Universidad Nacional de Salta); Nadine Massard (Université Grenoble Alpes) |
| Abstract: | Based on a spatial extension of an R&D investment model, this paper measures the macroeconomic impact of the French R&D policy mix on business R&D using regional data. Our measure takes into account not only the direct effect of policies but also indirect effects generated by the existence of spatial interaction between regions. Using a unique database containing information on the levels of various R&D policy instruments received by firms in French NUTS3 regions over the period 2001–2011, our estimates of a spatial Durbin model with structural breaks and fixed effects reveal the existence of a negative spatial dependence among R&D investments in regions. In this context, while a-spatial estimates would conclude that all instruments have a crowding-in effect, we show that national subsidies are the only instrument that is able to generate significant crowding-in effects. On the contrary, it seems that the design, size and spatial allocation of funds from the other instruments (tax credits, local subsidies, European subsidies) lead them to act (in the French context) as beggar-thy-neighbor policies. |
| Keywords: | Policy mix evaluation; R&D investment; Spatial panel; French NUTS 3 regions |
| JEL: | H25 O31 O38 C23 |
| Date: | 2018–12 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/4ji8v7q9nt9q0rsm9mqn5dqrrp&r=all |
| By: | Guy Tchuente |
| Abstract: | The identification of the network effect is based on either group size variation, the structure of the network or the relative position in the network. I provide easy-to-verify necessary conditions for identification of undirected network models based on the number of distinct eigenvalues of the adjacency matrix. Identification of network effects is possible; although in many empirical situations existing identification strategies may require the use of many instruments or instruments that could be strongly correlated with each other. The use of highly correlated instruments or many instruments may lead to weak identification or many instruments bias. This paper proposes regularized versions of the two-stage least squares (2SLS) estimators as a solution to these problems. The proposed estimators are consistent and asymptotically normal. A Monte Carlo study illustrates the properties of the regularized estimators. An empirical application, assessing a local government tax competition model, shows the empirical relevance of using regularization methods. |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1902.06143&r=all |
| By: | Amzallag, Adrien; Calza, Alessandro; Georgarakos, Dimitris; Sousa, João |
| Abstract: | Do negative policy rates hinder banks’ transmission of monetary policy? To answer this question, we examine the behaviour of Italian mortgage lenders using a novel loan-level dataset. When policy rates turn negative, banks with higher ratios of retail overnight deposits to total assets charge more on new fixed rate mortgages. This suggests that the funding structure of banks may matter for the transmission of negative policy rates, especially for long-maturity illiquid assets. Nevertheless, the aggregate economic implications for households are small, suggesting that concerns about inefficient monetary policy transmission to households under modestly negative rates are likely overstated. JEL Classification: E40, E52, E58, G21 |
| Keywords: | bank lending, monetary policy, mortgages, negative interest rates |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20192243&r=all |
| By: | Ahlfeldt, Gabriel; Pietrostefani, Elisabetta |
| Abstract: | This paper synthesises the state of knowledge on the economic effects of density. We consider 15 outcome categories and 347 estimates of density elasticities from 180 studies. More than 100 of these estimates have not been previously published and have been provided by authors on request or inferred from published results in auxiliary analyses. We contribute own estimates of density elasticities of 16 distinct outcome variables that belong to categories where the evidence base is thin, inconsistent or non-existent. Along with a critical discussion of the quality and the quantity of the evidence base we present a set of recommended elasticities. Applying them to a scenario that roughly corresponds to an average high-income city, we find that in per-capita present value terms (at a 5% discount rate), a 1%-increase in density implies an increase in wage and rent of $280 and $347. The decrease in real wage net of taxes of $156 is partially compensated for by an aggregate amenity effect of $100 and there is a positive external welfare effect of $60. |
| Keywords: | city; Compact; density; Elasticity; meta-analysis; present value |
| JEL: | R38 R52 R58 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13440&r=all |
| By: | Marius Fabian; Christian Leßmann; Tim Sofke |
| Abstract: | We analyze the impact of earthquakes on nighttime lights at a sub-national level, i.e. on grids of different size. We argue that existing studies on the impact of natural disasters on economic development have several important limitations, both at the level of the outcome variable – usually national income or growth – as well as on the level of the independent variable, e.g. the timing of an event and the measuring of its intensity. We aim to overcome these limitations by using geophysical event data on earthquakes together with satellite nighttime lights. Using panel fixed effects regressions covering the entire world for the period 1992-2013 we find that earthquakes reduce both light growth rates and light levels significantly. The effects are persistent for approximately 5 years, but we find no long run effects. The effects are strong and robust in a small grid and gets weaker the larger the unit of observation. National institutions and economic conditions are relevant mediating factors. |
| Keywords: | natural disasters, earthquakes, event data, satellite nighttime lights, luminosity, grid data, institutions, growth, development |
| JEL: | O44 Q54 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7511&r=all |
| By: | Lang, Jan Hannes; Izzo, Cosimo; Fahr, Stephan; Ruzicka, Josef |
| Abstract: | This paper presents a tractable, transparent and broad-based domestic cyclical systemic risk indicator (d-SRI) that captures risks stemming from domestic credit, real estate markets, asset prices, and external imbalances. The d-SRI increases on average several years before the onset of systemic financial crises, and its early warning properties for euro area countries are superior to those of the total credit-to-GDP gap. In addition, the level of the d-SRI around the start of financial crises is highly correlated with measures of subsequent crisis severity, such as GDP declines. Model estimates suggest that the d-SRI has significant predictive power for large declines in real GDP growth three to four years down the line, as it precedes shifts in the entire distribution of future real GDP growth and especially of its left tail. The d-SRI therefore provides useful information about both the probability and the likely cost of systemic financial crises many years in advance. Given its timely signals, the d-SRI is a useful analytical tool for macroprudential policymakers. JEL Classification: G01, G17, C22, C54 |
| Keywords: | early warning models, financial crises, GDP at risk, local projections, quantile regressions, systemic risk |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbops:2019219&r=all |
| By: | Parashari, S. |
| Abstract: | This paper studies the extent of teacher’s discrimination in occupational expectations and analyses whether discrimination in occupational expectations would further perpetuate discrimination in grading on the basis of student’s caste and socio-economic status. The paper adopts an experimental approach and draws on data generated from 122 teachers from 19 schools in Delhi, India. Student’s caste and socio-economic status were randomly assigned to a set of essays written by students such that the assigned characteristics were not related to essay quality. The results show that teachers’ expect students belonging to low caste and low socio-economic status will be less likely to realize their occupational ambitions relative to students belonging to high caste and high socio-economic status. Consistent with this bias in expectations there is also a bias in grading which shows that low expectations of a teacher perpetuates discrimination in grades awarded. Essays assigned low caste and low socio-economic status characteristics are graded 3.64 points lower relative to essays assigned to high caste and high socio-economic status. Given the ultra-competitive nature of schooling in India and the importance of grades in determining access to higher education in India, a 3.64 point disadvantage is substantial. The estimates also show that there is a trade-off between caste and socio-economic status. Belonging to a high socio-economic status lowers the extent of discrimination faced by low caste students. |
| Keywords: | teacher discrimination, grading, occupational expectations, caste, socioeconomic status, Delhi, India |
| Date: | 2019–02–12 |
| URL: | http://d.repec.org/n?u=RePEc:ems:euriss:114926&r=all |
| By: | Cellini, Roberto; Cuccia, Tiziana; Lisi, Domenico |
| Abstract: | In this paper we investigate whether the services offered by museums are affected by the choices of neighbors, and we discuss whether the evidence can document that competition processes are at work. Specifically, we take into account the Italian case, where governmental and private museums co-exist. Resorting to Spatial Autoregressive Models, we show that a significant influence of neighbors’ choice concerning service supply does emerge. However, we cast several doubts that this piece of evidence can be solely due to sound competition among museums. |
| Keywords: | Museum; Services; Competition; Spatial dependence; Italy |
| JEL: | C21 L33 L83 Z10 |
| Date: | 2019–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:92093&r=all |
| By: | Green, David A. (University of British Columbia, Vancouver); Riddell, W. Craig (University of British Columbia, Vancouver) |
| Abstract: | Numerous studies conclude that ethnic/cultural/racial diversity has negative impacts on interpersonal trust and support for redistributive social programs. Although some Canadian public opinion data is consistent with this view, whether these impacts on public opinion are important enough to influence policy is unclear. Many scholars argue that Canada is an exception to experience elsewhere. This paper examines this question for the case of Canadian social assistance (welfare) policies - a central component of the social safety net. We exploit two salient features of recent Canadian experience. One is dramatic growth in the ethnic and cultural diversity of Canada's immigrant inflows in recent decades, but the extent of this growth has varied substantially across regions. The second is that welfare policies vary across provinces, and the ability of the provinces to employ different approaches to welfare programs has increased since the mid-1990s. We thus examine whether provinces that became more diverse reduced the generosity of their welfare programs, relative to provinces that experienced little change in the heterogeneity of their populations. We examine impacts of immigration on welfare benefit rates of four family types: single employables, single disabled, lone parents and couples with children. Our main finding is that there is limited evidence of increased immigration on any of these types other than families with children. Even in this case the estimated effects are small. Our study thus supports the view that Canada's experience stands as an example in which greater diversity has not reduced support for redistributive social programs. |
| Keywords: | redistribution, social assistance, welfare, immigration, multiculturalism, ethnic diversity, interpersonal trust |
| JEL: | H0 I3 J6 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12098&r=all |
| By: | Thomas Cornelissen (Department of Economics, University of York, and Centre for Research and Analysis of Migration (CReAM)); Christian Dustmann (Department of Economics, University College London and CReAM) |
| Abstract: | We estimate the effects of receiving additional schooling before age 5 on cognitive and noncognitive outcomes, exploiting unique school entry rules in England that cause variation in the age at school entry and the effective length of the first school year, and combining survey data with administrative school records up to 6 years after exposure. We find significant effects on both cognitive and noncognitive outcomes at ages 5 and 7, particularly so for boys with a disadvantaged parental background. At age 11, effects on cognitive outcomes have disappeared, while there is still evidence for effects on noncognitive outcomes. |
| Keywords: | Returns to early schooling, school entry age, child development |
| JEL: | J13 |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:1903&r=all |
| By: | Jeff Archer; Jeffrey Max |
| Abstract: | As KIPP has grown to become the largest charter school network in the country, the organization has greatly expanded its pipeline of new principals. |
| Keywords: | Principal preparation, job training, KIPPP, assistant principals, school leaders |
| JEL: | I |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:448b6157445d4448b1e283d23212b360&r=all |
| By: | Ch, R.; Martin, D.; Vargas, J. |
| Abstract: | This paper uses high-resolution images of nighttime luminosity to estimate a globally comparable measure of the size of metropolitan areas around the world for the years 2000 and 2010. We apply recently-proposed methodologies that correct the known problems of available nighttime luminosity data including blurring, instability of lit pixels overtime and the reduced comparability of night light images across satellites and across time. We then develop a protocol that isolates stable nighttime light pixels that constitute urban footprint, including low luminosity urban settlements such as slums, and excluding confounding phenomena such as highway illumination. When analyzed together with existing geo-referenced population datasets, our measure of urban footprint, can be used to compute city densities for the entire world. After characterizing some basic stylized facts regarding the distribution of urban sprawl, urban population and population density across world regions, we offer an application of our measure to the study of the size distribution of cities, including test of the Zipf's Law and Gibrat's Law. |
| Keywords: | Ciudades, Desarrollo, Desarrollo urbano, Economía, Políticas públicas, |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:dbl:dblwop:1279&r=all |
| By: | van der Klaauw, Bas; Ziegler, Lennart |
| Abstract: | We conduct a field experiment to evaluate the effectiveness of labor market speeddates where unemployed workers meet temporary employment agencies. Our analysis shows that participation in such events increases immediate job finding by 6-7 percentage points. In the subsequent months, employment effects diminish again, suggesting that vacancies mediated through temporary employment agencies have no long-lasting effect on employment prospects. While the intervention is cost effective for the UI administration, higher labor earnings of treated job seekers do not fully compensate for the decline in benefit payments. Additional survey evidence shows that speeddate participation increases job search motivation and reduces reservation wages. |
| Keywords: | active labor market policies; job search behavior; Matching events; randomized experiment; temporary work |
| JEL: | C21 C93 J64 J65 |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13516&r=all |
| By: | Blimpo, Moussa P.; Carneiro, Pedro; Jervis, Pamela; Pugatch, Todd |
| Abstract: | This paper studies two experiments of early childhood development programs in The Gambia: one increasing access to services, and another improving service quality. In the first experiment, new community-based early childhood development (ECD) centers were introduced to randomly chosen villages that had no pre-existing structured ECD services. In the second experiment, a randomly assigned subset of existing ECD centers received intensive provider training. We find no evidence that either intervention improved average levels of child development. Exploratory analysis suggests that, in fact, the first experiment, which increased access to relatively low quality ECD services, led to declines in child development among children from less disadvantaged households. Evidence supports that these households may have been steered away from better quality early childhood settings in their homes. |
| Keywords: | early childhood development,cognitive stimulation,teacher training,The Gambia,randomized control trials,Malawi Developmental Assessment Tool |
| JEL: | I25 I38 O15 O22 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:318&r=all |
| By: | Mehdi Farajallah (ESC Rennes School of Business - ESC Rennes School of Business); Robert Hammond (NCSU - North Carolina State University [Raleigh]); Thierry Pénard (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | We examine how price and demand are determined on peer-to-peer platforms and whether experience and reputation have the same impact as in traditional markets. We use data from the world's leading intercity carsharing platform, BlaBlaCar, which connects drivers with empty seats to riders. We find that pricing decisions evolve as drivers gain experience with the platform. More-experienced drivers set lower prices and, controlling for price, sell more seats. Our interpretation is that more-experienced drivers on BlaBlaCar learn to lower their prices as they gain experience; accordingly, more-experienced drivers earn more revenue per trip. In total, our results suggest that peer-to-peer markets such as BlaBlaCar share some characteristics with other types of peer-to-peer markets such as eBay but remain a unique and rich setting in which there are many new insights to be gained. |
| Keywords: | blablacar,intercity carsharing platform,peer-to-peer market |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-02012097&r=all |
| By: | Méndez-Errico, Luciana (Universidad de la República de Uruguay); Ramos, Xavier (Universitat Autònoma de Barcelona) |
| Abstract: | We model schooling as a sequential process and examine why some children are left behind. We focus on the factors that explain selection at early stages of the education system. Our findings for Uruguay suggest that long-term factors, such as parental background or ethnicity matter across all education stages while the effect of short-term factors, such as family income, wear out as individuals progress in the education system, suggesting a severe selection process at early stages. |
| Keywords: | schooling transition, selection, inequality, education, ethnicity, cognitive and non-cognitive abilities, sequential dynamic model |
| JEL: | I20 I24 J13 J15 J24 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12118&r=all |
| By: | Limonov, Leonid E.; Kholodilin, Konstantin A.; Waltl, Sofie R. |
| Abstract: | This article studies the evolution of housing rents in St. Petersburg between 1880 and 1917 covering an eventful period of Russian and world history. We collect and digitize over 5,000 rental advertisements from historic newspapers, which we use together with geo-coded addresses and detailed structural characteristics to construct a quality-adjusted rent price index in continuous time. We provide the first pre-war and pre-Soviet index based on market data for any Russian housing market. In 1915, one of the world's earliest rent control and tenant protection policies was introduced as a response to soaring prices following the outbreak of World War I. We analyze the impact of this policy: while before the regulation rents were increasing at a similar rapid pace as other consumer prices, the policy reversed this trend. We find evidence for official compliance with the policy, document a rise in tenure duration and strongly increased rent affordability among workers after the introduction of the policy. We conclude that the immediate prelude to the October Revolution was indeed characterized by economic turmoil, but rent affordability and rising rents were no longer the prevailing problems. |
| Keywords: | Rental Market, Rent Regulation, Intra-Urban Rent Dynamics, Hedonic Rent Price Index, Economic History, Pre-Soviet Russia, October Revolution |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wus005:6817&r=all |
| By: | Dittmar, Jeremiah E.; Meisenzahl, Ralf R. |
| Abstract: | What are the origins and consequences of the state as a provider of public goods? We study public goods provision established through new laws in German cities during the 1500s. Cities that adopted the laws subsequently began to differentially produce and attract human capital and to grow faster. Legal change occurred where ideological competition introduced by the Protestant Reformation interacted with local politics. We study plagues that shifted local politics in a narrow period as sources of exogenous variation in public goods institutions, and find support for a causal interpretation of the relationship between legal change, human capital, and growth. |
| Keywords: | institutions; political economy; public goods; education; human capital; growth; state capacity |
| JEL: | I2 N13 O11 O4 |
| Date: | 2020–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:91195&r=all |
| By: | Gibbons, Eric M. (Ohio State University); Greenman, Allie (University of Nevada, Reno); Norlander, Peter (Loyola University); Sorensen, Todd A. (University of Nevada, Reno) |
| Abstract: | Guest workers on visas in the United States may be unable to quit bad employers due to barriers to mobility and a lack of labor market competition. Using H-1B, H-2A, and H-2B program data, we calculate the concentration of employers in geographically defined labor markets within occupations. We find that many guest workers face moderately or highly concentrated labor markets, based on federal merger scrutiny guidelines, and that concentration generally decreases wages. For example, moving from a market with an HHI of zero to a market comprised of two employers lowers H-1B worker wages approximately 10 percent, and a pure monopsony (one employer) reduces wages by 13 percent. A simulation shows that wages under pure monopsony could be 47 percent lower, suggesting that employers do not use the extent of their monopsony power. Enforcing wage regulations and decreasing barriers to mobility may better address issues of exploitation than antitrust scrutiny. |
| Keywords: | guest workers, migration, monopsony, market concentration |
| JEL: | J42 F22 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12096&r=all |
| By: | de Janvry, Alain; Emerick, Kyle; Kelley, Erin; Sadoulet, Elisabeth |
| Abstract: | Can agents in a social network be induced to obtain information from outside their peer groups? Using a field experiment in rural Bangladesh, we show that demonstration plots in agriculture - a technique where the first users of a new variety cultivate it in a side-by-side comparison with an existing variety - facilitate social learning by inducing conversations and information sharing outside of existing social networks. We compare these improvements in learning with those from seeding new technology with more central farmers in village social networks. The demonstration plots - when cultivated by randomly selected farmers - improve knowledge by just as much as seeding with more central farmers. Moreover, the demonstration plots only induce conversations and facilitate learning for farmers that were unconnected to entry points at baseline. Finally, we combine this diffusion experiment with an impact experiment to show that both demonstration plots and improved seeding transmit information to farmers that are less likely to benefit from the new innovation. |
| Keywords: | agriculture; Social learning; Technology adoption |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13507&r=all |
| By: | Marcela Eslava; John C. Haltiwanger; Alvaro Pinzón |
| Abstract: | There is growing consensus that a key difference between the U.S. and developing economies is that the latter exhibit slower employment growth over the life cycle of the average business. At the same time, the rapid post entry growth in the U.S. is driven by an “up or out dynamic”. We track manufacturing establishments in Colombia vs. the US and find that slower average life cycle growth in Colombia is driven by a less enthusiastic contribution of extraordinary growth plants and less dynamic selection of young underperforming plants. As a consequence, the size distribution of non-micro plants exhibits more concentration in small-old plants in Colombia, both in unweighted and employment-weighted bases. These findings point to a shortage of high-growth entrepreneurship and a relatively high likelihood of long-run survival for small, likely unproductive plants, as two key elements at the heart of the development problem. An extreme concentration of resources in micro plants is the other distinguishing feature of the Colombian manufacturing sector vis a vis the US. |
| JEL: | O14 O47 |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25550&r=all |
| By: | Rohner, Dominic; Saia, Alessandro |
| Abstract: | This paper studies the impact of school construction on the likelihood of conflict, drawing on a policy experiment in Indonesia, and collecting our own novel dataset on political violence for 289 districts in Indonesia over the period 1955-1994. We find that education has a strong, robust and quantitatively sizeable conflict-reducing impact. It is shown that the channels of transmission are both related to economic factors as well as to an increase in inter-religious trust and tolerance. Interestingly, while societal mechanisms are found to have an immediate impact, economic channels only gain importance after some years. We also show that school construction results in a shift away from violent means of expression (armed conflict) towards non-violent ones (peaceful protests). |
| Keywords: | Civil War; conflict; education; Fighting; Polarization; protest; Returns to education; Schools |
| JEL: | C23 D74 H52 I20 N45 |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13509&r=all |
| By: | Konstantin A. Kholodilin (DIW Berlin and Leontief Centre); Leonid E. Limonov (National Research University - Higher School of Economics and Leontief Centre); Sofie R. Waltl (Luxembourg Institute of Socio-Economic Research and Vienna University of Economics and Business - Department of Economics) |
| Abstract: | This article studies the evolution of housing rents in St. Petersburg between 1880 and 1917 covering an eventful period of Russian and world history. We collect and digitize over 5,000 rental advertisements from historic newspapers, which we use together with geo-coded addresses and detailed structural characteristics to construct a quality-adjusted rent price index in continuous time. We provide the first pre-war and pre-Soviet index based on market data for any Russian housing market. In 1915, one of the world’s earliest rent control and tenant protection policies was introduced as a response to soaring prices following the outbreak of World War I. We analyze the impact of this policy: while before the regulation rents were increasing at a similar rapid pace as other consumer prices, the policy reversed this trend. We find evidence for official compliance with the policy, document a rise in tenure duration and strongly increased rent affordability among workers after the introduction of the policy. We conclude that the immediate prelude to the October Revolution was indeed characterized by economic turmoil, but rent affordability and rising rents were no longer the prevailing problems. |
| Keywords: | Rental Market, Rent Regulation, Intra-Urban Rent Dynamics, Hedonic Rent Price Index, Economic History, Pre-Soviet Russia, October Revolution |
| JEL: | C14 C43 N93 O18 |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp279&r=all |
| By: | Henning Finseraas; Torbjørn Hanson; Åshild A. Johnsen; Andreas Kotsadam; Gaute Torsvik |
| Abstract: | We study how close personal contact with minorities affects in-group and out-group trust in a field experiment in the armed forces. Soldiers are randomly assigned to rooms with or without ethnic minorities. At the end of the recruit period, we measure trust by using a trust game. Results indicate that close personal contact with minorities increases trust towards a generic immigrant. We replicate the result that individuals coming from more ethnically diverse areas trust minorities less, but random assignment to interact with minority soldiers removes this negative correlation. We conclude that social integration involving personal contact can reduce negative effects of ethnic diversity on trust. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7515&r=all |
| By: | Kristin Hallgren; Naihobe Gonzalez; Kevin Kelly; Alicia Demers; Brian Gill |
| Abstract: | This is the second report on Year 2 of the Strategy, following an interim report (Hallgren et al. 2018) that presented detailed implementation findings in targeted and partnership schools after the second year of the Strategy (2017–2018). |
| Keywords: | Atlanta Public Schools, Turnaround strategy, Education |
| JEL: | I |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:b95f1470d12c4ea0b6b1829e31bc009f&r=all |
| By: | Rafael González-Val (Universidad de Zaragoza and Institut d'Economia de Barcelona (IEB)); Fernando Pueyo (Universidad de Zaragoza) |
| Abstract: | In this paper we discuss the relationship between economic growth and natural resources at a global level, taking into account geography. With this aim, our model integrates elements of the theories of endogenous growth, natural resources and new economic geography. We find that an increase in the world growth rate can lead to a higher depletion of the natural resources following an increase in the world demand due to expansion in population. However, the consideration of geography and growth mechanisms make the relationship between growth and natural resources more complex, and can even lead to the opposite conclusion when the forces behind growth are different from world demand. Indeed, either a reduction in transport costs or an increase in R&D productivity appears to be able to generate a faster growth compatible with a lower depletion of natural resources. |
| Keywords: | Industrial Location, Endogenous Growth, Renewable Resource, Geography |
| JEL: | F43 O30 Q20 R12 |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2018.26&r=all |
| By: | Campbell, Stuart (University of London); Nuevo-Chiquero, Ana (University of Edinburgh); Popli, Gurleen (University of Sheffield); Ratcliffe, Anita (University of Sheffield) |
| Abstract: | We examine the relationship between parental ethnic identity and cognitive development in ethnic minority children. This aspect of parental identity may shape children's cognitive outcomes through a direct influence on parenting behaviour, or by mediating parental access to social resources. Drawing an ethnic minority sample from a detailed UK cohort study, we find a negative association between maternal majority identity and children's cognitive test scores. This result is driven by poor households, by those who lack local family support networks, and by those who mostly speak a foreign language at home. We suggest that differential access to social resources is the most persuasive explanation of this result. Differences in parenting behaviour do not seem to play an important role. |
| Keywords: | ethnic identity, national identity, child development |
| JEL: | I21 J13 J15 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12104&r=all |