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on Urban and Real Estate Economics |
| By: | Eliasson, Kent (Umeå School of Business, Economics and Statistics, Swedish Agency for Growth Policy Analysis); Westerlund, Olle (Department of Economics, Umeå University) |
| Abstract: | We use Swedish longitudinal population register data on university graduates and estimate the effect of migration on earnings. Migration between regional labour markets is used to identify static and dynamic agglomeration effects on earnings. Heterogeneity in effects is examined by individuals’ position in the ability distribution and by origin-destination size categories of regional labour markets. The results indicate that the effect of upward migration (from smaller to larger labour markets) on earnings is positive throughout. Downward migration (from larger to smaller labour markets) is generally associated with negative or no convincing signs of positive effects on earnings. The estimates indicate positive short-term urban wage premiums (UWP) for all origin-destination flows of upward migration, especially high UWP for in-migration to the Stockholm labour market region. The UWP of upward migration is positive also for movers in the lower end of the ability distribution, but it is substantially higher for high ability migrants. We also find evidence of a positive dynamic UWP of migration to Stockholm from the other regions, particularly for high ability migrants. |
| Keywords: | Urban wage premium; human capital; migration; agglomeration economies; ability |
| JEL: | J24 J61 R10 R12 R23 |
| Date: | 2019–10–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:0962&r=all |
| By: | Gharad Bryan; Edward Glaeser; Nick Tsivanidis |
| Abstract: | The fast and often chaotic urbanization of the developing world generates both economic opportunity and challenges, like contagious disease and congestion, because proximity increases both positive and negative externalities. In this paper, we review the expanding body of economic research on developing world cities. One strand of this literature emphasizes the economic benefits of urban connection, typically finding that agglomeration benefits are at least as high in poor countries as they are in rich countries. Yet there remains an ongoing debate about whether slums provide a path to prosperity or an economic dead end. A second strand analyzes the negative externalities associated with urban density, and the challenges of building and maintaining infrastructure to moderate those harms. Researchers are just beginning to understand the links between institutions (such as Public Private Partnerships), incentives (such as congestion pricing) and the effectiveness of urban infrastructure spending. A third line of research addresses the spatial structure of cities directly with formal, structural models. These structural models seem particularly valuable when analyzing land use and transportation systems in the far more fluid cities of the developing world. |
| JEL: | H23 J61 O10 R11 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26390&r=all |
| By: | Richard H. Rijnks (Univesity of Groningen); Stephen Sheppard (Williams College) |
| Abstract: | Recent research indicates that the subjective evaluation of well-being increases when conditions of housing are improved. This suggests that subjective well-being might serve as a useful proxy for characteristics of a home or neighbourhood that are relevant to an occupant, but unobserved by the analyst. In this paper, we assess this idea through analysis of residential property valuation, using a sample of 95,413 respondents matched to house sales for 2000 to 2012 in the North of the Netherlands. Using a spatial econometric approach, we find a significant and positive association between individual and regional subjective well-being and house prices. This suggests that house buyers are willing to pay more for, or that house sellers require greater compensation to sell and move from, properties and areas in which the resident experiences greater happiness. Our study provides the first estimates of the importance of these effects. |
| Keywords: | Subjective well-being, house price, hedonic model |
| JEL: | D91 R2 R3 |
| Date: | 2019–10–23 |
| URL: | http://d.repec.org/n?u=RePEc:wil:wileco:2019-23&r=all |
| By: | Adnan, Wifag (New York University, Abu Dhabi) |
| Abstract: | Past studies have consistently shown that cultural norms predict individual economic outcomes for second-generation US immigrants. However, due to the (mainly) European composition of immigrants prior to the 1965 Immigration Reform Act, most researchers have not accounted for the role of race and ethnicity in identifying culture parameters. Moreover, the majority of studies assume the US is a homogenous region in confronting challenges related to integrating women and disadvantaged minority groups into the labor market. Using recent micro-level data of working-age higher order immigrants, along with detailed local, social capital and source- country measures, allow me to conduct a comprehensive analysis of the relationship between cultural norms and female labor supply. For non-Hispanic Whites, the impact of culture is explained by variation in country-level factors, such as passport power and internationally standardized exam scores. In contrast, for Blacks, the relevant predictors of labor supply are local culture and social capital measures. |
| Keywords: | culture, gender, race, ethnicity, second-generation immigrants, female labor supply, selection-bias |
| JEL: | Z10 P16 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12692&r=all |
| By: | Nguyen, Linh D. (RWTH Aachen University); Steininger, Bertram (Department of Real Estate and Construction Management, Royal Institute of Technology) |
| Abstract: | This study examines the impact of underpriced default risk on investment in the real estate investment trust (REIT) sector, where firms’ investment is highly sensitive to changes in credit market conditions. The findings reveal that REITs exploiting underpriced default risk have a higher level of investment than their peers because the former can access low-cost capital. Moreover, exploiting the underpriced default risk is specific to not only REITs but also to the whole real estate investment sector. In contrast, underpriced default risk has an insignificant impact on investment of non-real estate firms because non-recourse loans are unpopular in these firms. |
| Keywords: | default risk; investment; real estate investment trusts (REITs); underpricing of the default risk |
| JEL: | G21 G32 |
| Date: | 2019–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:kthrec:2019_005&r=all |
| By: | Puhani, Patrick A. (Leibniz University of Hannover); Yang, Philip (University of Tübingen) |
| Abstract: | Because accountability may improve the comparability that is compromised by lenient grading, we compare exit exam outcomes in the same schools before and after a policy change that increased teacher accountability by anchoring grading scales. In particular, using a large administrative dataset of 364,445 exit exam outcomes for 72,889 students, we assess the effect of introducing centralized scoring standards into schools with higher and lower quality peer groups. We find that implementation of these standards increases scoring differences between the two school types by about 25 percent. |
| Keywords: | subjective performance evaluation, rating standards, policy reform, transparency |
| JEL: | H83 I20 I28 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12684&r=all |
| By: | Alex Bryson; Lucy Stokes; David Wilkinson |
| Abstract: | We consider the role played by school leaders in improving pupil attainment, going beyond previous studies by exploring the leadership roles of deputy and assistant heads and classroom-based teachers with additional leadership responsibilities. Using panel data for state-funded secondary schools in England for the period 2010/11-2015/16 we find academy schools typically employ more staff in leadership roles than community schools. Increases in the number of staff in leadership roles below headship level are associated, at least to some extent, with improved school performance in Single Academy Trusts, but this is not the case for schools that are part of Multi Academy Trusts. Our findings suggest that the potential benefits of distributing leadership within schools may only be realised when leaders have sufficient autonomy. |
| Keywords: | school performance, distributed leadership, leadership, school autonomy |
| JEL: | I21 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:nsr:niesrd:511&r=all |
| By: | Zoican Marius; Zoican Sorin |
| Abstract: | Distributed securities exchanges may become de facto fragmented if they span geographical regions with asymmetric computer infrastructure. First, we build an economic model of a decentralized exchange with two miner clusters, standing in for compact areas of economic activity (e.g., cities). "Local" miners in the area with relatively higher trading activity only join a decentralized exchange if they enjoy a large speed advantage over "long-distance" competitors. This is due to a transfer of economic value across miners, specifically from high- to low-activity clusters. Second, we estimate the speed advantage of "local" over "long-distance" miners in a series of Monte Carlo experiments over a two-cluster, unstructured peer-to-peer network simulated in C. We find that the speed advantage increases in the level of infrastructure asymmetry between clusters. Cross-region DEX blockchains are feasible as long as the asymmetry levels in trading activity and infrastructure availability across regions are positively correlated. |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1910.11216&r=all |
| By: | Thomas Dee; Emily Penner |
| Abstract: | The My Brother’s Keeper (MBK) Challenge developed by President Obama supports communities that promote civic initiatives designed to improve the educational and economic opportunities specifically for young men of color. In Oakland, California, the MBK educational initiative features the African American Male Achievement (AAMA) program. The AAMA focuses on regularly scheduled classes exclusively for Black, male students and taught by Black, male teachers who focus on social-emotional training, African-American history, culturally relevant pedagogy, and academic supports. In this study, we present quasi-experimental evidence on the dropout effects of the AAMA by leveraging its staggered scale-up across high schools in the Oakland Unified School District (OUSD). We find that AAMA availability led to a significant reduction in the number of Black males who dropped out as well as smaller reductions among Black females, particularly in 9th grade. |
| JEL: | I20 I24 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26386&r=all |
| By: | Thomas Grjebine; Jérôme Héricourt; Fabien Tripier |
| Abstract: | This paper investigates the role of sectoral reallocations in the divergence of productivity in Europe, based on a database for 33 sectors and 14 countries between 1995 and 2015. Using the contribution of sectoral productivity growth to Total Factor Productivity (TFP) at the country level, we highlight that variations in the relative size of sectors - less productive sectors growing relatively to more productive ones - have been at the origin of variable productivity losses in main European countries. Parallel to this divergence, European countries experienced heterogeneous real estate price dynamics, which took the form, in some economies, of massive boom-bust cycles. We investigate real estate shocks as a potential source of sectoral reallocations through a collateral mechanism. These shocks turn out to be a strong driver of productivity divergence between European countries. |
| Keywords: | Productivity;Sectoral Reallocations |
| JEL: | D22 F45 R30 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2019-09&r=all |
| By: | Naghsh Nejad, Maryam (University of Technology, Sydney); Schurer, Stefanie (University of Sydney) |
| Abstract: | Economic theory suggests that selective immigration policies based on observable characteristics will affect unobservable migrant quality. Little empirical evidence exists on this hypothesis. We quantify traditionally unobservable components of migrant quality in Australia, a high-migrant share OECD country with a selective immigration policy. We proxy migrant quality with widely-accepted measures of personality and cognitive ability. Both first- and second-generation immigrants outperform natives on socially-beneficial personality traits. While first-generation migrants suffer language-ability penalties, their off-spring overcome these penalties and outperform natives in cognitive ability. Immigrants do not outperform natives in the labor market, a finding which may be explained by heterogeneous wage returns to non-cognitive ability. |
| Keywords: | economics of immigration, migrant quality, selection on unobservables, non-cognitive ability, cognitive ability |
| JEL: | F22 J61 J24 J31 J62 O15 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12700&r=all |
| By: | Gazi I Kara; Youngsuk Yook |
| Abstract: | We show that banks reduce the supply of jumbo mortgage loans when policy uncertainty increases, as measured by the timing of US gubernatorial elections in banks' headquarter states. We use high-frequency, geographically granular loan-level data to address an identification problem arising from the changing demand for loans: (1) The data allow for a difference-in-difference specification and for state/time (quarter) fixed effects; (2) we observe banks reduce lending not just in their home states but also outside their home states when their home states hold elections; (3) we observe important cross-sectional differences in the way banks with different characteristics respond to policy uncertainty. Overall, the findings suggest that policy uncertainty has a real effect on residential housing markets through banks' credit supply decisions and that it can spill over across states through lending by banks serving multiple states. |
| Keywords: | Bank Mortgage Credit, Housing Market, Policy Uncertainty, Gubernatorial Elections |
| JEL: | G21 G28 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:bis:biswps:820&r=all |
| By: | Thokozane Princess Dyosini (University of the Witwatersrand, Johannesburg) |
| Abstract: | Novice teachers come into the teaching industry with their own preconceived notions and perceptions of what the profession entails. In their 1-3 years of teaching the realities of the roles and expectations from various stakeholders are revealed. This paper seeks to explore the dynamics that pertain to the professional support that novices receive or not in the schooling context. Furthermore, an investigation of the role that school leadership plays in the support of novices will also be done to gain perspectives from both ends of the spectrum. What novices identify as their challenges, who they identify as being supportive and what needs to be done to solve the challenges and successes that are identified. The theoretical and conceptual framework underpinning this paper is the communities of practice (Wenger, 2011) and The Human Capital Theory (Becker, 2009). The conceptual framework is foregrounded by the triangulation of Mentorship, Initial Teacher Education and Professional Identity. The answer to our leading question is that pedagogical 'know-how' gathered from training is not the only knowledge that novice teachers require to become successful long term teachers but expert support and mentoring into the profession as a diverse array of factors may influence the navigation of this process. |
| Keywords: | Initial Teacher Training (ITE), mentorship, coaching, induction, professional support, novice teachers, school leadership, human capital theory |
| JEL: | A23 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:9411873&r=all |
| By: | Nerea Gómez-Fernández (Universitat Politècnica de València); Mauro Mediavilla (Universitat de València & Institut d’Economia de Barcelona (IEB)) |
| Abstract: | With the world becoming increasingly digitalized, ICT has a key role to play in the educational process. The aim of this research is to determine the personal characteristics of teachers, as well as those of the school and class environment, that make them more likely to use ICT in their classes. This research is especially interesting given that there is little pre-existing literature in this regard. For this purpose, we estimate a logistic model with data from the census survey for the Community of Madrid (2016-2017 academic year) of the individualized evaluation of students in the final evaluation of their fourth year of Compulsory Secondary Education for four different competences: Mathematics, social and civic competence, English and Spanish. Our results suggest that higher teacher motivation, greater use of ICT by students in school and at home and better-prepared teachers who require less ICT training is associated with more frequent use of ICT in the classroom in all four subjects. However, some of the determinants of the use of ICT differ according to the competence evaluated. Teachers working full time use ICT more frequently in the classroom, but only in Spanish and Mathematics. On the other hand, teachers with greater disruption of order in their class use ICT less frequently in social and civic competence and English. We also find that a lack of digital devices in the school is associated with lower uses of ICT in English, Spanish and Mathematics but is associated with a higher use in social and civic competence. Finally, we also find that private and semiprivate schools use more ICT than public schools in Mathematics, English and Spanish. |
| Keywords: | Compulsory Secondary Education, ICT, classroom, teachers |
| JEL: | I20 I21 O33 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:doc2019-08&r=all |
| By: | José A Peres-Cajías (Universitat de Barcelona) |
| Abstract: | This paper offers a general assessment of the economic activity in Bolivian regions thanks to an estimation, for the first time, of regional GDPs in Bolivia from 1950 onwards. The new quantitative evidence shows the economic upsurge and consolidation of new regions beyond the traditional economic zones, which were located to the west of the country since colonial times. This process is in stark contrast with most Latin American experiences, where economic activity has tended to be concentrated continuously in the same regions since the mid-19th century. This changing pattern is firstly explained by the availability of natural resources endowments. However, given the landlocked nature of the country, the vibrant set of ecological regions and the consequent relevance of transports costs, it is argued that natural resources may act as potent engines of regional economic growth only when a minimum network of public infrastructure is available. |
| Keywords: | Natural Resources, Regional convergence, Regional inequality, Landlockness, Bolivia |
| JEL: | N16 N56 N96 R12 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:hes:wpaper:0169&r=all |
| By: | Coral del Río; Olga Alonso-Villar |
| Abstract: | There has been little discussion in the literature about the consequences of using standardized (versus unstandardized) segregation measures when comparing societies with different demographic compositions. To measure the segregation of a group in a multigroup setting, this paper develops standardized local segregation indices, which show a maximum value of 1 when the group is fully segregated, and links these measures with existing standardized overall segregation measures. Our research not only allows for enhancement of the local segregation approach—offering new measures and evaluating them against basic properties—but also provides a better understanding of existing standardized overall measures. To illustrate its value, this paper offers estimates of the occupational segregation of white women in the largest U.S. metropolitan areas using standardized and unstandardized segregation measures. This permits us to identify metropolitan areas that would have gone unnoticed if only one of these two approaches had been employed. |
| Keywords: | Multigroup segregation; Standardized segregation indices; Local segregation curves; Local segregation indices |
| JEL: | D63 J15 J16 J71 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:vig:wpaper:1904&r=all |
| By: | Congressional Budget Office |
| Abstract: | In 2017, spending from the Highway Trust Fund exceeded revenues from taxes on highway users by $13.5 billion. A tax of 1 cent per mile on commercial trucks’ travel would have raised $2.6 billion if imposed on all such trucks and $1.6 billion if limited to those with trailers, CBO estimates. Higher rates would have yielded nearly proportionally higher revenues. Implementing such a tax would cost more than raising the existing tax on diesel fuel, however. And such a tax would raise the price of shipped goods and would cause a shift of some freight traffic from truck to rail. |
| JEL: | H22 H25 L92 R41 R48 |
| Date: | 2019–10–17 |
| URL: | http://d.repec.org/n?u=RePEc:cbo:report:55688&r=all |
| By: | Magdalena Domínguez (Universitat de Barcelona & Institut d’Economia de Barcelona (IEB)); Daniel Montolio (Universitat de Barcelona & Institut d’Economia de Barcelona (IEB)) |
| Abstract: | In this paper we study the effects of bolstering community ties on local crime rates. To do so, we take advantage of the quasi-random nature of the implementation of the deployment of a community health policy in the city of Barcelona. The health-care program called Salut als Barris (BSaB; literally, `health in the neighborhoods') aims to improve health outcomes and reduce inequalities in the most disadvantaged neighborhoods of the city through community-based initiatives and empowerment of citizens. The economic and sociological literature suggests that such a policy may also affect other aspects of overall welfare, such as criminal activity. In order to test the hypothesis that BSaB reduces crime, we used monthly data at the neighborhood level and a staggered differences-in-differences approach. Overall we found that BSaB significantly reduces victimization of women. Furthermore, this decline is seen in types of crime we classify as `anger' and `intimate' crimes, with the reduction ranging from 9% to 18%. We argue that this result is due to the stronger community ties, and that it therefore provides evidence that non-traditional crime prevention policies can work. |
| Keywords: | Crime, community action, differences-in-differences |
| JEL: | C23 I18 I28 J18 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:doc2019-06&r=all |
| By: | John Cawley; David Frisvold; David Jones |
| Abstract: | Since 2017, many U.S. cities have implemented taxes on sugar-sweetened beverages (SSBs) to decrease consumption of sugary beverages and raise revenue. In this paper, we analyze household receipt data to examine the impact of SSB taxes on households’ purchases of taxed and untaxed beverages in the four largest U.S. cities with such taxes: Philadelphia, Pennsylvania; San Francisco, California; Seattle, Washington; and Oakland, California. We estimate the impact of these taxes by comparing changes in monthly household purchases in the treatment cities to changes in one of two comparison groups: 1) areas adjacent to the treatment cities; or 2) a matched set of households nationally. We find that an increase in the beverage tax rate of 1 cent per ounce decreases household purchases of taxed beverages by 53.0 ounces per month or 12.2 percent. This impact is small in magnitude and consistent with a reduction in individual consumption of 5 calories per day per household member and eventual reduction in weight of 0.5 pounds. When we examine results separately by city, we find that the decline was concentrated in Philadelphia, where the tax decreased purchases by 27.7 percent. We do not find impacts of the taxes in the other three cities combined. |
| JEL: | H23 H71 I12 I18 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26393&r=all |
| By: | Wilhelmsson, Mats (Department of Real Estate and Construction Management, Royal Institute of Technology) |
| Abstract: | The impact on energy performance certificates on housing prices has been investigated extensively in recent years. However, the results from these investigations are mixed. We add to the literature by more specifically controlling for potential biases by employing a combination of alternative approaches to estimate the causal relationship between house prices and energy performance certificates. We use a traditional hedonic modeling approach, but we are additionally using propensity score methods to be able to compare treated houses with a control group. We also investigate the impact of outliers, spatial dependency, and parameter heterogeneity of our estimates. Moreover, we use quantile regression technique to test the hypothesis that the capitalization effect varies across the price distribution. Our results indicate there is an upward bias if we are not controlling for outlier and selection bias. Regardless of the propensity score method approach, the results are lower than a model (around 3 percent capitalization compared to 6 percent). However, our results do not support that the impact of energy performance certificates varies in the price distribution. Consequently, the certificates are not differently capitalized in the high-end housing price segment. Finally, our results do not support the hypothesis that the energy performance certificate should be more capitalized into house prices in the northern and colder parts of Sweden than in the south of Sweden. |
| Keywords: | energy performance certificates; climate; hedonic price equation; selection bias; propensity score method |
| JEL: | Q40 Q50 R30 R38 |
| Date: | 2019–10–18 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:kthrec:2019_003&r=all |
| By: | Jackman, Mahalia; Lorde, Troy; Naitram, Simon; Greenaway, Tori |
| Abstract: | This paper argues that length of stay is a reflection of the distance between the origin and destination country. Past interpretations of distance premised on spatial aspects. This study extends the dimensional space of distance to include socio-psychological dimensions, climate distance and economic distance. Our empirical analysis utilizes airport data covering over 350,000 pleasure tourists to Barbados from 144 countries. The results suggest that the length of stay of pleasure tourists to Barbados increases with geographic distance, cultural distance and climatic distance, but is inversely related to economic distance. We find no evidence that long-distance relationships (captured by transnational and diasporic relationships) affect tourist length of stay. Implications of these findings are provided. |
| Keywords: | Length of stay, Distance, Tourism demand, Cultural distance, Climate distance, Linder's hypothesis |
| JEL: | C13 C23 C51 L83 |
| Date: | 2019–09–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:96613&r=all |
| By: | Yasuyuki Sawada (Faculty of Economics, The University of Tokyo); Minhaj Mahmud (Bangladesh Institute of Development Studies); Mai Seki (College of Economics, Department of Economics, Ritsumeikan University); An Le (Le: NextGeM Inc.); Hikaru Kawarazaki (Graduate School of Economics, The University of Tokyo) |
| Abstract: | This paper investigates the effectiveness of a globally popularmethod of self-learning at the right level in improving the cognitiveand non-cognitive abilities of disadvantaged pupils in a developing country, Bangladesh. Using a randomized control trial design,we find substantial improvement in cognitive ability measured bymathematics test scores and catch-up effects on non-cognitive ability measured by a pupil self-esteem measure. These findings areconsistent with a longer-term impact found in take-up rates andscores on a national-level primary school completion exam. Moreover, the teachers' ability to assess student performance substantially improves. Based on our estimates, program benefit exceedscost in a plausible way. Above findings suggest that self-learning atright level can effectively address the learning crisis by improvingthe quality of primary education in developing countries. |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:tky:fseres:2019cf1127&r=all |
| By: | Roberto Antonietti; Sandro Montresor |
| Abstract: | This paper investigates the role of Key Enabling Technologies (KETs) in the regional diversification of economic activities. We maintain that KETs drive different diversification trajectories, leading regions from the most conservative to the most radical pattern of diversification. Using an original dataset for Italian NUTS3 regions, we estimate a series of ordered logit models, in which a region’s propensity to move across industry diversification patterns depends on its KETs endowment. We find regions with more KETs better able to move towards more ‘unrelated’ diversification patterns, but only when KETs are combined with other technologies, and only in densely populated regions. |
| Keywords: | diversification patterns, Key Enabling Technologies, ordered logit |
| JEL: | R11 R58 O31 O33 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1928&r=all |
| By: | Bütikofer, Aline (Dept. of Economics, Norwegian School of Economics and Business Administration); Løken, Katrine V. (Dept. of Economics, Norwegian School of Economics and Business Administration); Willen, Alexander (Dept. of Economics, Norwegian School of Economics and Business Administration) |
| Abstract: | We exploit the opening of a large bridge to study how access to a larger labor market affects economic efficiency, and how these potential efficiency gains are distributed across workers. The bridge we study connected the third largest city of Sweden to the capital of Denmark, and led to a substantial increase in the labor market opportunities of Swedes. Using unique cross-country matched registry data, we find that the bridge led to a large increase in cross-country commuting among Swedes, driven both by extensive and intensive employment responses. This commuting effect translates into a significant increase in the average wage of Swedes residing close to the bridge, providing strong evidence of an efficiency gain for individuals in Sweden. However, these efficiency gains are unevenly distributed across workers: the effect is largest for high-educated men and smallest for low-educated women. Thus, the efficiency gains come at the cost of rising income inequality and an increase in the gender wage gap, both within- and across-households. These equity effects are driven not only by differences in the propensity to commute, but also by occupational segregation. |
| Keywords: | Efficiency; Gains |
| JEL: | J00 |
| Date: | 2019–10–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhheco:2019_019&r=all |
| By: | Maria Kyriacou (University of Southampton); Peter C.B. Phillips (University of Auckland - Yale University); Francesca Rossi (Department of Economics (University of Verona)) |
| Abstract: | Spatial units typically vary over many of their characteristics, introducing potential unobserved heterogeneity which invalidates commonly used homoskedasticity conditions. In the presence of unobserved heteroskedasticity, standard methods based on the (quasi-)likelihood function generally produce inconsistent estimates of both the spatial parameter and the coefficients of the exogenous regressors. A robust generalized method of moments estimator as well as a modified likelihood method have been proposed in the literature to address this issue. The present paper constructs an alternative indirect inference approach which relies on a simple ordinary least squares procedure as its starting point. Heteroskedasticity is accommodated by utilizing a new version of continuous updating that is applied within the indirect inference procedure to take account of the parametrization of the variance-covariance matrix of the disturbances. Finite sample performance of the new estimator is assessed in a Monte Carlo study and found to offer advantages over existing methods. The approach is implemented in an empirical application to house price data in the Boston area, where it is found that spatial effects in house price determination are much more significant under robustification to heterogeneity in the equation errors. |
| Keywords: | Spatial autoregression; Unknown heteroskedasticity; Indirect inference; Robust methods; Weights matrix. |
| JEL: | C13 C15 C21 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:ver:wpaper:15/2019&r=all |
| By: | Youssef Benzarti |
| Abstract: | This paper uses the universe of mortgage contracts to estimate the response of high-interest lenders to borrower protection regulations aimed at simplifying and making loan terms more transparent. Using a quasi-experimental design, we find that lenders substantially reduce interest rates – by an average of 10% – in order to avoid being subject to borrower protection, without reducing amounts lent or the number of loans approved. This finding implies that a substantial number of high-interest lenders prefer to issue obfuscatory mortgage contracts with lower interest rates rather than more transparent and regulated mortgages with higher interest rates. |
| JEL: | D91 G18 G21 H10 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26382&r=all |
| By: | Gaétan de Rassenfosse (Chair of Innovation and IP Policy, EPFL, Lausanne, Switzerland); Jan Kozak; Florian Seliger (KOF Swiss Economic Institute, ETH Zurich, Switzerland) |
| Abstract: | The dataset provides geographic coordinates for inventor and applicant locations in 18.8 million patent documents spanning over more than 30 years. The geocoded data are further allocated to the corresponding countries, regions and cities. When the address information was missing in the original patent document, we imputed it by using information from subsequent filings in the patent family. The resulting database can be used to study patenting activity at a fine-grained geographic level without creating bias towards the traditional, established patent offices. |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:kof:wpskof:19-458&r=all |
| By: | Bloch, Francis (Universite Paris 1 and Paris School of Economics); Dutta, Bhaskar (University of Warwick and Ashoka University); Dziubinski, Marcin (Institute of Informatics, University of Warsaw) |
| Abstract: | We propose and study a strategic model of hiding in a network, where the network designer chooses the links and his position in the network facing the seeker who inspects and disrupts the network. We characterize optimal networks for the hider, as well as equilibrium hiding and seeking strategies on these networks. We show that optimal networks are either equivalent to cycles or variants of a core-periphery networks where every node in the periphery is connected to a single node in the core. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:wcreta:53&r=all |
| By: | Lee, Jongkwan (Korea Development Institute); Peri, Giovanni (University of California, Davis); Yasenov, Vasil (University of California, Berkeley) |
| Abstract: | We examine the labor market consequences of an extensive campaign repatriating around 400,000 Mexicans in 1929-34. To identify a causal effect, we instrument county level repatriations with the existence of a railway line to Mexico interacted with the size of the Mexican communities in 1910. Using individual linked data we find that Mexican repatriations reduced employment of native incumbent workers and resulted in their occupational downgrading. However, using a repeated cross section of county level data, we find attenuated and non-significant employment effects and amplified wage downgrading. We show that this is due to selective in- and out-migration of natives. |
| Keywords: | Mexican repatriations, Great Depression, employment, immigration, railway |
| JEL: | J15 J21 J61 N32 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12689&r=all |
| By: | Silvia Robles; Max Gross; Robert W. Fairlie |
| Abstract: | One frequently cited yet understudied channel through which money matters for college students is course availability- colleges may respond to budgetary pressure by reducing course offerings. Open admissions policies, binding class size constraints, and heavy reliance on state funding may make this channel especially salient at community colleges, which enroll 47% of U.S. undergraduates in public colleges and 55% of underrepresented minority students. We use administrative course registration data from a large community college in California to test this mechanism. By exploiting discontinuities in course admissions created by waitlists, we find that students stuck on a waitlist and shut out of a course section were 25% more likely to take zero courses that term relative to a baseline of 10%. Shutouts also increased transfer rates to nearby, but potentially lower quality, two-year colleges. These results document that course availability- even through a relatively small friction- can interrupt and distort community college students’ educational trajectories. |
| JEL: | I21 I23 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26376&r=all |
| By: | Dobbie, Will (Harvard Kennedy School); Gronqvist, Hans (Uppsala University); Niknami, Susan (Stockholm University); Palme, Marten (Stockholm University); Priks, Mikael (Stockholm University) |
| Abstract: | We estimate the causal effects of parental incarceration on children’s short- and long-run outcomes using administrative data from Sweden. Our empirical strategy exploits exogenous variation in parental incarceration from the random assignment of criminal defendants to judges with different incarceration tendencies. We find that the incarceration of a parent in childhood leads to a significant increase in teen crime and significant decreases in educational attainment and adult employment. The effects are concentrated among children from the most disadvantaged families, where criminal convictions increase by 10 percentage points, high school graduation decreases by 25 percentage points, and employment at age 25 decreases by 29 percentage points. In contrast, there are no detectable effects among children from more advantaged families. These results suggest that the incarceration of parents with young children may significantly increase the intergenerational persistence of poverty and criminal behavior, even in affluent countries with extensive social safety nets. |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp19-031&r=all |
| By: | Boyan KAVALOV (European Commission – JRC); Andrius KUCAS (European Commission – JRC); Filipe BATISTA E SILVA (European Commission – JRC); Mert KOMPIL (European Commission – JRC); Jean-Philippe AURAMBOUT (European Commission – JRC); Carlo LAVALLE (European Commission – JRC) |
| Abstract: | This study aims to add technical insights to the debate about overcoming the cross-border obstacles to growth and jobs in the EU internal border regions. It proposes new border geography by defining distinct drive time zones (30, 30-60, 60-90, 90+ minutes) to terrestrial paved border crossing points. The drive time zones are delineated by applying network analysis algorithms to the TomTom Multinet (2017) road network data, based on governing speed limits for passenger cars and assuming free-flow i.e. without congestions and/or border crossing delays. Paved bridges and river ferries are also included. At the next stage, the study looks at the population changes during the period 2001-2011 in the adjacent to the borders "30 minutes" drive time zones and compares these changes with the respective country population trends. The analysis encompasses thirty one couples of EU border areas and three complex border regions, where more than two EU border areas are included. The analysis is executed in the context of the Knowledge Centre for Territorial Policies (KCTP) of the European Commission. |
| Keywords: | Cross-border regions and cooperation, drive-time border zones, border population change |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc116859&r=all |
| By: | Henning Hermes (NHH Norwegian School of Economics); Martin Huschens (Johannes Gutenberg University Mainz); Franz Rothlauf (Johannes Gutenberg University Mainz); Daniel Schunk (Johannes Gutenberg University Mainz) |
| Abstract: | Relative performance feedback ( RPF ) has often been shown to improve effort and performance in the workplace and educational settings. Yet, many studies also document substantial negative effects of RPF, in particular for low-achievers. We study a novel type of RPF designed to overcome these negative effects of RPF on low-achievers by scoring individual performance improvements. With a sample of about 400 children, we conduct a class-wise randomized-controlled trial in regular teaching lessons in primary schools. We demonstrate that this type of RPF significantly increases motivation, effort, and performance in math for low-achieving children, without hurting high-achieving children. Among low-achievers, those receiving more points and moving up in the ranking improved strongest on motivation and math performance. In addition, we document substantial gender differences in response to this type of RPF: improvements in motivation and learning are much stronger for girls. We argue that using this novel type of RPF could potentially reduce inequalities, especially in educational settings. |
| Keywords: | relative performance feedback, rankings, randomized-controlled trial, education, gender differences, inequality |
| Date: | 2019–06–23 |
| URL: | http://d.repec.org/n?u=RePEc:jgu:wpaper:1908&r=all |
| By: | Fischer, Martin; Gerdtham, Ulf-G (Department of Economics); Heckley, Gawain (Department of Health Economics); Karlsson, Martin (Healf Economics); Kjellsson, Gustav (University of Gothenburg); Nilsson, Therese (Research Institute of Industrial Economics (IFN)) |
| Abstract: | We investigate two parallel school reforms in Sweden to assess the long-run health effects of education. One reform only increased years of schooling, while the other increased years of schooling but also removed tracking leading to a more mixed socioeconomic peer group. By differencing the effects of the parallel reforms we can separate the effect of de-tracking and peers from that of more schooling. We find that the pure years of schooling reform reduced mortality and improved current health. Differencing the effects of the reforms shows significant differences in the estimated impacts, suggesting that de-tracking and subsequent peer effects resulted in worse health. |
| Keywords: | Health returns to education; School tracking; Peer effects |
| JEL: | I12 I18 I26 |
| Date: | 2019–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1300&r=all |
| By: | Haixia Hu (University of Birmingham); John Bryson (University of Birmingham); Lauren Andres (University of Birmingham) |
| Abstract: | England independent schools may be conceptualised as a form of cultural capital that is also involved in internationalisation through the recruitment of overseas pupils to study in the UK, but more recently by the establishment of overseas schools. The first such school was established in 1996 (Bunnell, 2008). Up to 2018, there 47 independent schools have established overseas schools around the world (ISC, 2018), but there has been no detailed research into the emergence, growth and development of the internationalisation strategies of England independent schools. This thesis is the first research project to explore the emergence of England based Translocal Educational Enterprises (TEEs) as providers of nursery, primary and secondary education. These are translocal as there is an exchange between two sites ? the England school and a school located in another country. TEEs are providers of services. They are complex hybrid organisational forms. On the one hand, England schools are charities that must demonstrate that they are providing wider social benefits. On the other hand, the overseas operations of these schools are not charities, but are managed by for-profit trading companies. The overseas schools must meet local regulations regarding education provision. This means that the export of educational service provision reflects a complex process of localised customisation. Schools must balance their overseas activities with the on-going provision of educational services in the UK. This highlights the on-going professionalization of management in England independent schools as national providers of educational services evolve in to TEEs.The spatial economic activities of England independent schools explicitly imply in the evolutionary economic geography whereas the utilisation of schools? resources is the capability of schools. This highlights the importance of blending the resource-based view (RBV) of the firm and evolutionary economic geography as an internationalisation strategy. To understand the international strategies of TEEs, the RBV of the firm (Penrose, 1959, Barney, 1991) and evolutionary economic geography (Phelps, 2016) are combined to develop a conceptual framework for understanding the emergence, adaptation and evolution of TEEs. |
| Keywords: | International Strategy, Cultural Capital, Revolution, Translocal Educational Enterprises (TEEs), Hybrid Organisation, Educational Services, Evolutionary Economic Geography and RBV |
| JEL: | I29 O19 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:9610765&r=all |
| By: | Surattana Adipat (Faculty of Education, Ramkhamhaeng University); Alongkorn Ausawasowan (Faculty of Education, Ramkhamhaeng University); Warangkana Sewiset (The Demonstration School of Ramkhamhaeng University); Ratanawadee Chotikapanich (Faculty of Education, Ramkhamhaeng University) |
| Abstract: | Thailand is among a number of ASEAN member countries including Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, and Vietnam. With an agreement among the countries, English is used as an official language for communication. The 11th policy established by the Thai government in 2013 encourages Thai citizens to English to help prepare the country for the ASEAN Economic Community (AEC). The issue of teacher-centered instruction (TCI) and student-centered instruction (SCI) may appear outdated, but it is necessary and should be considered since it can have a major influence on students? language learning. Both instruction types have benefits and drawbacks to varying extents in terms of students? academic success, learning motivation, and maintaining student attention. This study aims to investigate the pre-service teachers? perspectives towards TCI and SCI. The results yield a significant contribution to the development of English courses which enhance students? knowledge and skills, promote student engagement in the learning process, and enable students to transfer the knowledge they gain in class to their long-term memory. As with any course design and development, properly designed courses that meet students? varying needs are of the utmost importance. |
| Keywords: | English course, pre-service teachers, student-centered instruction, teacher-centered instruction, perspective |
| JEL: | I29 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:9412023&r=all |
| By: | Agarwal, Lisha (University of Padova); Brunello, Giorgio (University of Padova); Rocco, Lorenzo (University of Padova) |
| Abstract: | We estimate the effect of the high school curriculum (or track) on the returns to college using data from the Italian PLUS (Participation Labour and Unemployment Survey) survey. We find that college graduates with vocational high school are less likely to be employed than graduates with academic high school. When employed, they earn 7.3 percent less per hour but work 3.8 percent more hours per week. They are less likely to fill high ranked occupations and more likely to find their first job quickly after school completion than other graduates. The wage penalty associated to vocational education in high school is larger for females than for males and for those born in the less economically developed Southern regions. |
| Keywords: | high school curriculum, returns to college, Italy |
| JEL: | J24 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12691&r=all |
| By: | David Escamilla-Guerrero |
| Abstract: | This paper introduces and analyses the Mexican Border Crossing Records (MBCRs), an unexplored data source that records aliens crossing the Mexico-United States land border at diverse entrance ports from 1903 to 1955. The MBCRs identify immigrants and report rich demographic, geographic and socioeconomic information at the in¬dividual level. These micro data have the potential to support cliometric research, which is scarce for the Mexico-United States migration, especially for the beginnings of the flow (1884–1910). My analysis of the MBCRs suggests that previous literature might have inaccurately described the initial patterns of the flow. The results diverge from historical scholarship because the micro data capture better the geographic composition of the flow, allowing me to characterize the initial migration patterns with more precision. Overall, the micro data reported in the MBCRs offer the opportunity to address topics that concern the economics of migration in the past and present. |
| Keywords: | migration, micro data, Mexico |
| JEL: | N01 N36 |
| Date: | 2019–10–24 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:esohwp:_173&r=all |
| By: | Thompson, Paul N. (Oregon State University) |
| Abstract: | While cost savings is the primary motivation for the switch to four-day school weeks in many school districts, do these school schedules save school districts any money? To answer this question, this study uses a difference-in-differences analysis using a unique, self-collected longitudinal dataset of four-day school week use from 1999-2015 and National Center for Education Statistics data on school district expenditures. School districts that switch to the four-day school weeks reduce operating expenditures per pupil by 3.1 percent. The largest percentage reductions occur in spending areas where services are reduced one day per week (e.g., food service, transportation), with little to no change in instructional expenditures. Although employment in many of these student service subcategories holds steady after the switch to a four-day school week, some of the burden of reduced service provision is shifted onto hourly workers as spending on employee compensation falls for these types of services. |
| Keywords: | four-day school weeks, school districts, expenditures |
| JEL: | H72 I21 I22 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12698&r=all |
| By: | M. Bockarjova; W.J.W. Botzen; Mark J. Koetse |
| Abstract: | There is an increased interest in applying nature-based solutions for addressing various urban challenges, such as those related to air pollution, climate change, and (mental) health. It is clear that nature can bring various benefits to city inhabitants, but the economic value of nature is not always well recognized. In this study we present a meta-analysis of a rapidly expanding literature that applied stated preference valuation methods to value green and blue urban nature in a variety of contexts. We estimate value transfer functions based on primary studies that elicited nature values from in total more than 41,000 respondents worldwide. We obtain insights into the main determinants of values of urban nature, in terms of study and methodological characteristics, types of nature, and ecosystem services. Main findings are that the per hectare value of nature is negatively related to the size of the nature area, and positively related to income and population density. Parks are the most highly valued types of urban nature, and aesthetics and cultural heritage services are the most highly valued ecosystem services it provides. Moreover, certain methodological choices in eliciting nature values appear to affect the final valuation results, such as the payment vehicle in stated preference surveys, and to some degree the valuation method. We present and illustrate the use of benefit transfer functions, which can be used for estimating the value of specific nature types and ecosystem services in a variety of urban settings. |
| Keywords: | benefit transfer, stated preferences, ecosystem services, meta-analysis, naturebased solution, urban nature |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:use:tkiwps:1808&r=all |