nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2020‒06‒08
fifty papers chosen by
Steve Ross
University of Connecticut

  1. The Impacts of Automated Vehicles on Center City Parking Demand By Chai, Huajun; Rodier, Caroline; Song, Jeffery; Zhang, Michael; Jaller, Miguel
  2. House Prices and Household Consumption in Korea By Seungyoon Lee
  3. TEN-T Corridors – Stairway to Heaven or Highway to Hell? By Kathrin Goldmann; Jan Wessel
  4. Related variety, recombinant knowledge and regional innovation. Evidence for Sweden, 1991-2010 By Mikhail Martynovich; Josef Taalbi
  5. Geographic Mobility in America: Evidence from Cell Phone Data By M. Keith Chen; Devin G. Pope
  6. Impact of the COVID-19 Pandemic on New England Homeowners and Renters By Nicholas Chiumenti
  7. Discriminating Behavior: Evidence from teachers’ grading bias By Ferman, Bruno; Fontes, Luiz Felipe
  8. Private Educational Expenditure Inequality between Migrant and Urban Households in China’s Cities By Yiwen Chen; Ioana Salagean; Benteng Zou
  9. The Regional Anatomy of School Dropouts in Spain: The Role of the Industry Structure of Local Labour Markets By Diaz-Serrano, Luis; Nilsson, William
  10. Within-School Heterogeneity in Quality: Do Schools Provide Equal Value Added to All Students? By Naven, Matthew
  11. Housing Collateral Reform and Economic Reallocation By Dimas Mateus Fazio; Thiago Christiano Silva
  12. Spatial Spillover Effects of Mega-City Lockdown Due to Covid-19 Outbreak By Celebioglu, Fatih
  13. Does Internal Displacement Affect Educational Achievement in Host Communities? By Sergio Parra Cely; Clotilde Mahé
  14. The Long-Run Effects of Peers on Mental Health By Lukas Kiessling; Jonathan Norris
  15. Geographical Stratification of Green Urban Areas By Pierre M. Picard; Thi Thu Huyen TRAN
  16. Commuting Time and the Gender Gap in Labor Market Participation By Farré, Lídia; Jofre-Monseny, Jordi; Torrecillas, Juan
  17. Inequalities in Education across Canada : Lessons for the Pandemic By Catherine Haeck; Pierre Lefebvre
  18. Local ability to rewire and socioeconomic performance: Evidence from US counties before and after the Great Recession By Mark Partridge; Alexandra Tsvetkova
  19. Employer Policies and the Immigrant-Native Earnings Gap By Dostie, Benoit; Li, Jiang; Card, David; Parent, Daniel
  20. Innovation catalysts - How multinationals reshape the global geography of innovation By Riccardo Crescenzi; Arnaud Dyèvre; Frank Neffke
  21. Decomposition of density into their components: Analysis for the case of Japan By Delgado Narro, Augusto Ricardo; Katafuchi, Yuya
  22. Airport Competition in Two-sided Markets By Xi Wan; Benteng Zou
  23. Daily commuting By Berliant, Marcus
  24. Tracking COVID-19 Spread in Italy with Mobility Data By Nuriye Melisa Bilgin
  25. How sustainable environments have reduced the diffusion of coronavirus disease 2019: the interaction between spread of COVID-19 infection, polluting industrialization, wind (renewable) energy By Mario Coccia
  26. Education Choice of Households and Income Inequality -Empirical Research of Mixed Public and Private Education Model- By Hiroki Tanaka; Masaya Yasuoka
  27. How prepared are teachers and schools to face the changes to learning caused by the coronavirus pandemic? By OECD
  28. Socioeconomic Factors influencing the Spatial Spread of COVID-19 in the United States By Christopher F Baum; Miguel Henry
  29. What shapes the flypaper effect? The role of the political environment in the budget process. By Miriam Hortas-Rico; Vicente Rios; Pedro Pascual
  30. Wages, Hires, and Labor Market Concentration By Marinescu, Ioana E.; Ouss, Ivan; Pape, Louis-Daniel
  31. A multi-channel interactive learning model of social innovation By Attila Havas; György Molnár
  32. Smart Cities in the Era of Globalisation By Mishra, Mukesh Kumar
  33. COVID-19 and the Role of Economic Conditions in French Regional Departments By Glenn Magerman; Victor Ginsburgh; Ilaria Natali
  34. Task specialization in U.S. cities from 1880-2000 By Michaels, Guy; Rauch, Ferdinand; Redding, Stephen
  35. The importance of studying inter-regional spillover effects of European policies: application of the RHOMOLO model for Poland By Patrizio Lecca; Simone Salotti; Andrea Conte
  36. Combined transport in Europe: Scenario-based projections of emission saving potentials By Jahn, Malte; Schumacher, Paul; Wedemeier, Jan; Wolf, André
  37. Traffic Congestion, Transportation Policies, and the Performance of First Responders By Daniel A. Brent; Louis-Philippe Beland
  38. Can rainfall shocks enhance access to rented land? Evidence from Malawi By Tione, Sarah E.; Holden, Stein T.
  39. When Do Shelter-In-Place Orders Fight COVID-19 Best? Policy Heterogeneity across States and Adoption Time By Dave, Dhaval M.; Friedson, Andrew I.; Matsuzawa, Kyutaro; Sabia, Joseph J.
  40. Inequality in access to grammar schools By Asma Benhenda
  41. The information value of energy labels: Evidence from the Dutch residential housing market By Lu Zhang; Lennart Stangenberg; Sjors van Wickeren
  42. Empowering College Students through Community Engagement: Experimental Evidence from Peru By Marcos Agurto; Sandra Buzinsky; Fernando Fernandez; Javier Torres
  43. Regional trajectories of entrepreneurship: the effect of socialism and transition By Michael Fritsch; Maria Kristalova; Michael Wyrwich
  44. Living preferences of STEM workers in a high-tech business park of a peripheral region By Hooijen, Inge; Cörvers, Frank
  45. The Impact of Government Restrictions on Human Mobility: Which States Performed Better? By Kumar, Himangshu; Nataraj, Manikantha
  46. On tax competition, international migration,and occupational choice By Yutao Han; Patrice Pieretti
  47. Occupational Sorting and Wage Gaps of Refugees By F Baum, Christopher; Lööf, Hans; Stephan, Andreas; F. Zimmermann, Klaus
  48. Local Trade Shocks and the Nationalist Backlash in Political Attitudes: Panel Data Evidence from Great Britain By Nils D. Steiner; Philipp Harms
  49. Persistence of commuting habits: Context effects in Germany By Jost, Ramona
  50. Non-Pharmaceutical Interventions and Mortality in U.S. Cities during the Great Influenza Pandemic, 1918-1919 By Robert J. Barro

  1. By: Chai, Huajun; Rodier, Caroline; Song, Jeffery; Zhang, Michael; Jaller, Miguel
    Abstract: The potential for automated vehicles (AVs) to reduce parking in city centers has generated much excitement among urban planners. AVs could drop-off (DO) and pick-up (PU) passengers in areas where parking costs are high: personal AVs could return home or park in less expensive locations, and shared AVs could serve other passengers. Reduced on-street and off-street parking present numerous opportunities for redevelopment that could improve the livability of cities, for example, more street and sidewalk space for pedestrian and bicycle travel. However, reduced demand for parking would be accompanied by increased demand for curbside DO/PU space with related movements to enter and exit the flow of traffic. This change could be particularly challenging for traffic flows in downtown urban areas during peak hours, where high volumes of DOs and PUs are likely to occur. Only limited research examines the travel effects of a shift from parking to DO/PU travel and the impact of changes in parking supply. This study uses a microscopic road traffic model with local travel activity data to simulate personal AV parking scenarios in San Francisco's downtown central business district. These scenarios vary (1) the demand for DO and PU travel versus parking, (2) the supply of on-street and off-street parking, and (3) the total demand for parking and DO/PU travel due to an increase in the cost of travel to the central business district. View the NCST Project Webpage
    Keywords: Engineering, Social and Behavioral Sciences, Autonomous vehicles, Curbside parking, Drop-off zone management, Land use, Planning
    Date: 2020–06–01
  2. By: Seungyoon Lee (Economic Research Institute, Bank of Korea)
    Abstract: We measure impact of real estate housing prices on household consumption and investigate channels in operation, making use of panel data from Korea. Our baseline finding is that households expand their consumption by 0.194 percentage points in response to a 1 percentage point increase in the real house price index. This result is driven to a larger extent by home-owning households rather than non home-owning households, and by falling prices rather than rising prices. In an attempt to find clues as to the operation of relevant channels, we further breakdown total households into subgroups based on multi-house ownership, ages of the householders, size of the housing unit, and borrowing constraints that the household may face. In examining these subgroups of homeowners, we find evidence consistent with the operation of the wealth effect channel, but we do not find evidence supporting the operation of the collateral effect channel. Estimates for non home-owning households are broadly consistent with the precautionary saving effect channel, but we also find results that might be interpreted as there being a discouragement effect channel for a subgroup of non home-owning households.
    Keywords: House price, Consumption, Wealth effect, Household panel data
    JEL: D21 E21
    Date: 2020–05–21
  3. By: Kathrin Goldmann (Institute of Transport Economics, Muenster); Jan Wessel (Institute of Transport Economics, Muenster)
    Abstract: The European Union coordinates and co-finances supra-national transport infrastructure investments in the Trans-European Transport Network (TEN-T), which consists of road, rail, airport, and port infrastructure. To the best of our knowledge, we are the first to quantify the direct and indirect economic growth effects of newly created TEN-T core corridor roads in Eastern European countries. Both the panel data and the spatial analyses show that regional GDP growth at the NUTS3 level is between 0.5 and 2.0 percentage points higher, if a region has direct access to a newly built road. The analyses with a spatial Durbin model (SDM) show that the new construction of a TEN-T core road also causes positive spillover effects on other regions that have direct access to the corridor network, as well as on regions that are not directly connected to the corridors. The results thus indicate that the TEN-T policy, which aims to alleviate transport bottlenecks, can increase cohesion between central and peripheral regions and consequently enhance regional welfare in Eastern Europe.
    Keywords: transport infrastructure, TEN-T corridors, supra-national infrastructure investment, spatial Durbin model
    JEL: R42 O18 O47
    Date: 2020–06
  4. By: Mikhail Martynovich; Josef Taalbi
    Abstract: This study investigates how related variety in the regional employment mix affects the innovation output of a region. Departing from the idea of recombinant innovation, previous research has argued that related variety enhances regional innovation as inter-industry knowledge spillovers occur more easily between different but cognitively similar industries. This study combines a novel dataset and related variety measures based on network theory, which allows a more nuanced perspective on the relationship between related variety and regional innovation. The principal novelty of the paper lies in employing new data on product innovations commercialised by Swedish manufacturing firms between 1970 and 2013. In this respect, it allows a direct measure of regional innovation output as compared to patent measures, usually employed in similar studies. The second contribution of this paper is that we employ network-topology based measures of related variety that allow us to measure relatedness as the recombination rather than direct flow of knowledge. We argue that this measure comes closer to the notion of innovation as spurred by recombination and show that this measure is a superior predictor of innovation activity.
    Keywords: related variety, relatedness, innovation, network analysis
    JEL: L16 O31 R11 R12
    Date: 2020–03
  5. By: M. Keith Chen; Devin G. Pope
    Abstract: Traveling beyond the immediate surroundings of one’s residence can lead to greater exposure to new ideas and information, jobs, and greater transmission of disease. In this paper, we document the geographic mobility of individuals in the U.S., and how this mobility varies across U.S. cities, regions, and income classes. Using geolocation data for ~1.7 million smartphone users over a 10-month period, we compute different measures of mobility, including the total distance traveled, the median daily distance traveled, the maximum distance traveled from one’s home, and the number of unique haunts visited. We find large differences across cities and income groups. For example, people in New York travel 38% fewer total kilometers and visit 14% fewer block-sized areas than people in Atlanta. And, individuals in the bottom income quartile travel 12% less overall and visit 13% fewer total locations than the top income quartile.
    JEL: R23
    Date: 2020–05
  6. By: Nicholas Chiumenti
    Abstract: Job losses and likely layoffs related to the COVID-19 pandemic will put many New England residents at risk of not being able to pay their mortgage or rent and needing financial assistance and state-government safeguards to remain in their homes. Economic interventions from Congress, primarily through the federal CARES Act, include direct payments to households and increased unemployment insurance benefits that are expected to provide vital support to many of these households for the next three to four months. Even with these efforts, 2 to 3 percent of New England homeowners and 9 to 13 percent of New England renters may be unable to make their housing payments. Many states have temporarily halted evictions, foreclosures, or both to protect people from losing their homes, at least in the short term. However, once the economy begins to recover, these households will remain responsible for their unpaid rents and mortgages. This report’s findings represent the immediate, three- to four-month impact that the coronavirus outbreak and resulting legislation are likely having on New England households. The ultimate economic consequences of the pandemic, along with the adequacy of economic-policy responses, will be determined largely by how long it takes to stop the spread of the virus.
    Keywords: rent; NEPPC; mortgage; housing; coronavirus; employment; COVID-19; New England
    Date: 2020–05–18
  7. By: Ferman, Bruno; Fontes, Luiz Felipe
    Abstract: Recent evidence has established that non-cognitive skills are key determinants of education and labor outcomes, and are malleable throughout adolescence. However, little is known about the mechanisms producing these results. This paper tests a channel that could explain part of the association between non-cognitive skills and important outcomes: teacher grading discrimination toward student behaviors. Evidence is drawn from a unique data pertaining to students from middle and high-school in Brazilian private schools. Our empirical strategy is based on the contrasting of school-level tests graded by teachers and school-level tests that cover the same content but are graded blindly. Using detailed data on student classroom behaviors and holding constant performance in exams graded blindly, evidence indicates that teachers inflate the grades of better-behaved students while deducting points from worse-behaved ones. These biases are driven by grading discrimination in exams with open questions. Additionally, teachers’ behavior does not appear to be consistent with statistical discrimination.
    Keywords: Grade discrimination; non-cognitive skills
    JEL: I21 I24
    Date: 2020–05–14
  8. By: Yiwen Chen (Central Bank of Luxembourg); Ioana Salagean (STATEC); Benteng Zou (CREA, Université du Luxembourg)
    Abstract: China’s household registration (hukou) system restricts access to public schools to children without local city hukou. Migrant households thus need to finance privately all education-related costs their children incur. In contrast, local urban households often top- up their spending with private tutoring. Consequently, private educational expenditure of households in China’s cities reflects both willingness to investment in human capital and institutional constraints. We compare the educational expenditure of parents migrating with children to China’s cities to that of local urban parents, with a special focus on the role of the household registration system (hukou) in shaping these inequalities. We find that overall expenditure of migrants overwhelmingly exceeds that of locals after controlling for social and economic characteristics, but expenditure types are different. More detailed analysis of three subcategories of the education-related expenditure shows that migrant households spend more on tuition and sponsorship compared to households with local city hukou, but much less on private tutoring.
    Keywords: Chinese internal migrant children; educational investment; hukou registration
    JEL: O15 I31 J13 R23
    Date: 2020
  9. By: Diaz-Serrano, Luis (Universitat Rovira i Virgili); Nilsson, William (University of the Balearic Islands)
    Abstract: A number of studies have examined the impact of local labor market conditions on school dropout. However, none of them have considered the role of the industry structure. We construct data for a panel of Spanish regions and identify the effect of local labor markets using a variation of the share of employment by industry across regions and over time. In order to control for the huge structural and conjunctural heterogeneity across Spanish regions in the school dropout rate, we use a fixed-effects model with region specific slopes. We run separate regressions for boys and girls. We find a sizable impact of the industry structure and observe that in markets with a higher share low-skill employment the school dropout rate is significantly larger, though the industries affecting boys and girls are different. Our results suggest that the supply of skilled employment in the economy may allow to keep an important share of school dropouts in the school.
    Keywords: educational attainment, Spain, labour market, youth employment, skills
    JEL: J21 J24
    Date: 2020–05
  10. By: Naven, Matthew
    Abstract: Low-socioeconomic status (SES), minority, and male students perform worse than their high-SES, non-minority, and female peers on standardized tests. This paper investigates how within-school differences in school quality contribute to these educational achievement gaps by SES, ethnicity, and sex. Using individual-level data on the universe of public-school students in California, I estimate school quality using a value added methodology that accounts for the fact that students sort to schools on observable characteristics. I run three separate analyses, in which I allow each school to provide a distinct value added to their low-/high-SES, minority/non-minority, and male/female students. I find that there is within-school heterogeneity in value added by SES, ethnicity, and sex, as on average schools provide less value added to their low-SES, minority, and male students. Thus within-school heterogeneity in quality is one factor that contributes to differential outcomes for disadvantaged students.
    Keywords: School Quality; Achievement Gaps; Inequality; Human Capital; Postsecondary Education; Value Added
    JEL: H75 I21 I23 I24 J24
    Date: 2020–05–05
  11. By: Dimas Mateus Fazio; Thiago Christiano Silva
    Abstract: This paper examines how banks reallocate credit after the introduction of a more enforceable housing collateral contract in Brazil. This new contract greatly improved the repossession of real estate assets used as collateral for personal and business loans. We find opposing effects of this policy. Because of the stronger enforcement, credit supply increased in municipalities with higher homeownership, leading to the creation of new firms, higher employment, and economic performance. However, banks restricted credit to borrowers in low homeownership municipalities. These areas experienced a decline in entrepreneurship, local labor demand, and economic activity. The credit reallocation was greatest for credit-constrained banks, consistent with higher external financing costs. Finally, the differential effects in credit supply induced a redistribution of labor in the economy: workers migrated from low to high homeownership municipalities after the reform.
    Date: 2020–05
  12. By: Celebioglu, Fatih
    Abstract: With the Covid-19 outbreak, academic studies have been started to calculate the economic effects of the outbreak. Since it is not possible to determine when epidemics/pandemics (or large magnitude earthquakes, etc.) occur, their negative economic effects cannot be precisely predicted. Decreasing consumption and supply at the same time, breaking the supply chain, closing businesses and increasing unemployment are rapidly disrupting economic conditions. The measures are mostly related to issues at the macroeconomic level. If a full curfew is imposed throughout the country, economists are working on how it will have an impact on the economy of the whole country. However, the analysis of the effects at the regional level is discussed secondarily. The aim of this study is to simulate the effects of an economic lock-down that might take place in two important mega cities such as Istanbul and Izmir. As a result of this analysis made using spatial econometrics tools; in the event of a lockdown (or earthquake) in mega cities such as İstanbul and/or İzmir, there will be major economic difficulties that will spread wave by wave to the neighboring cities and then eventually to the whole country.
    Keywords: Covid-19, Mega-city, Lockdown, Spatial Econometrics, Spillover Effects
    JEL: O20 R11 R12
    Date: 2020–05–11
  13. By: Sergio Parra Cely (Universidad San Francisco de Quito, Equador); Clotilde Mahé (CREA, Université du Luxembourg)
    Abstract: We study the relationship between internal displacement and education in host municipalities in Colombia. We employ a fuzzy regression discontinuity design, exploiting the fact that political loyalty during local elections triggered massive flows of internally displaced people. We obtain a transitory but sizable negative effect of about 3% of a standard deviation per additional displaced arrival by 10,000 inhabitants, on high-school exit exams in math and language during the first two years of incumbency -- an average drop of 0.4 standard deviations. Findings suggest that policies aimed at fostering educational achievement might be ineffective in the shadow of a refugee crisis.
    Keywords: Civil conflict, Migration, Education.
    JEL: I25 J61 R23
    Date: 2020
  14. By: Lukas Kiessling (Max Planck Institute for Research on Collective Goods, Bonn); Jonathan Norris (University of Strathclyde)
    Abstract: This paper studies how peers in school affect students’ mental health. Guided by a theoretical framework, we find that increasing students’ relative ranks in their cohorts by one standard deviation improves their mental health by 6% of a standard deviation conditional on own ability. These effects are more pronounced for low-ability students, persistent for at least 14 years, and carry over to economic long-run outcomes. Moreover, we document a strong asymmetry: Students who receive negative rather than positive shocks react more strongly. Our findings therefore provide evidence on how the school environment can have long-lasting consequences for the well-being of individuals.
    Keywords: Peer Effects, Mental Health, Depression, Rank Effects
    JEL: I21 I14 J24
    Date: 2020–06
  15. By: Pierre M. Picard (Department of Economics and Management, Université du Luxembourg); Thi Thu Huyen TRAN (Department of Finance, Université du Luxembourg)
    Abstract: This paper studies the provision of urban green areas in cities when residents have preferences for the size of and access to those areas. At the optimum, the number of urban green spaces is a non-monotone function of distance to the city centre, while the sizes and distances to other urban green areas increase as one moves to the urban fringe. This paper empirically investigates those properties for the 300 largest European cities by using the GMES Urban Atlas database (European Environmental Agency). The empirical analysis confirms the non-monotone relationship between the number of urban green spaces and the distance to the city centre. The distance between two parks also increases as one moves toward the urban fringe. Finally, richer cities are associated with a denser network of urban green areas.
    Keywords: Urban green spaces, urban spatial structure, land use policy, amenities, optimal locations, mono-centric models, open space, public facilities.
    JEL: C61 D61 D62 R14 R53
    Date: 2020
  16. By: Farré, Lídia (University of Barcelona); Jofre-Monseny, Jordi (University of Barcelona); Torrecillas, Juan (University of Barcelona)
    Abstract: This paper investigates the contribution of increasing travel times to the persistent gender gap in labor market participation. In doing so, we estimate the labor supply elasticity of commuting time from a sample of men and women in US cities using microdata from the Census for the last decades. To address endogeneity concerns, we adopt an instrumental variables approach that exploits the shape of cities as an exogenous source of variation for travel times. Our estimates indicate that a 10 minutes increase in commuting decreases the probability of married women to participate in the labor market by 4.6 percentage points. In contrast, the estimated effect on men is small and statistically insignificant. We also find that women with children and immigrant women originating from countries with more gendered social norms respond the most to commuting time variations. This evidence suggests that the higher burden of family responsibilities supported by women may magnify the negative effect of commuting on their labor supply. From our findings, we conclude that the increasing trend in travel times observed in the US and in many European countries during the last decades may have contributed to the persistence of gender disparities in labor market outcomes.
    Keywords: commuting time, labor supply, gender roles, family responsibilities, city shape
    JEL: R41 J01 J16 J22
    Date: 2020–05
  17. By: Catherine Haeck (Department of Economics, University of Quebec in Montreal); Pierre Lefebvre (Department of Economics, University of Quebec in Montreal)
    Abstract: Schools have been closed across the country and will remain so until September. The decision to reopen should take into account current inequalities in education across the country and the impact of school interruptions on the accumulation of cognitive skills. In this article, we document the evolution of the cognitive skills gap across Canada using PISA data. We use PISA tests scores over 7 cycles, from 2000 to 2018, to provide an exhaustive portrait of the evolution of the tests scores distribution over time and by parental socioeconomic status. We find that the achievement gap between top performing students (p90) and students facing challenges (p10) is large. It represents about 4 years of schooling. We also show that socioeconomic differences in PISA scores, in reading, maths and science, are large but unwavering. In other words inequality by SES is stable, and decreasing in some years. There are variations in the size of the SES score gaps by provinces, a proxy for the extent of inequality of opportunities. Using estimates from the literature on the impact of school closures, we find that the SES skills gap could increase by 30 percent.
    Keywords: socioeconomic inequalities, PISA, literacy and numeracy skills, proficiency scales, provincial education policy, education attainment gradient, Canadian provinces
    JEL: I20 I21 I28
    Date: 2020–05
  18. By: Mark Partridge; Alexandra Tsvetkova
    Abstract: The paper examines the effects of three groups of factors (county economic structure, social/demographic attributes and geography) on employment growth and poverty change in US counties before and after the Great Recession. It finds that the industrial structure that facilitates inter-industry employee flows (“rewiring”) is of increasing importance post-Recession. In particular, this measure is associated with employment growth in under-performing counties suggesting that removing barriers to the flow of resources within lagging economies and increasing their adaptability potential might be a viable policy option.
    Keywords: employment growth, Great Recession, inter-industry employee flows, local economic rewiring, poverty change, US
    JEL: J62 O18 R11
    Date: 2020–05–26
  19. By: Dostie, Benoit (HEC Montreal); Li, Jiang (Statistics Canada); Card, David (University of California, Berkeley); Parent, Daniel (HEC Montreal)
    Abstract: We use longitudinal data from the income tax system to study the impacts of firms' employment and wage-setting policies on the level and change in immigrant-native wage differences in Canada. We focus on immigrants who arrived in the early 2000s, distinguishing between those with and without a college degree from two broad groups of countries – the U.S., the U.K. and Northern Europe, and the rest of the world. Consistent with a growing literature based on the two-way fixed effects model of Abowd, Kramarz, and Margolis (1999), we find that firm-specific wage premiums explain a significant share of earnings inequality in Canada and contribute to the average earnings gap between immigrants and natives. In the decade after receiving permanent status, earnings of immigrants rise relative to those of natives. Compositional effects due to selective outmigration and changing participation play no role in this gain. About one-sixth is attributable to movements up the job ladder to employers that offer higher pay premiums for all groups, with particularly large gains for immigrants from the "rest of the world" countries.
    Keywords: wage differentials, immigrants, linked employer-employee data, firm effects
    JEL: J15 J31 J71
    Date: 2020–05
  20. By: Riccardo Crescenzi; Arnaud Dyèvre; Frank Neffke
    Abstract: We study whether and when Research and Development (R&D) activities by foreign multinationals help in the formation and development of new innovation clusters. Combining information on nearly four decades worth of patents with socio-economic data for regions that cover virtually the entire globe, we use matched difference-in-differences estimation to show that R&D activities by foreign multinationals have a positive causal effect on local innovation rates. This effect is sizeable: foreign research activities help a region climb 14 percentiles in the global innovation ranks within five years. This effect materializes through a combination of knowledge spillovers to domestic firms and the attraction of new foreign firms to the region. However, not all multinationals generate equal benefits. In spite of their advanced technological capabilities, technology leaders generate fewer spillovers than technologically less advanced multinationals. A closer inspection reveals that technology leaders also engage in fewer technological alliances and exchange fewer workers in local labor markets abroad than less advanced firms. Moreover, technology leaders tend to set up their foreign R&D activities in regions with relatively low absorptive capacity. We attribute these differences to that fact that the trade-off between costs and benefits of local spillovers a multinational faces depends on the multinational’s technological sophistication. This illustrates the importance of understanding corporate strategy when analyzing innovation clusters.
    Keywords: innovation, regions, foreign direct investment, patenting, cluster emergence
    JEL: O32 O33 R11 R12
    Date: 2020–03
  21. By: Delgado Narro, Augusto Ricardo; Katafuchi, Yuya
    Abstract: The concept of density has been changing through the time; originally, it has the simple definition of the total population divided by the area of analysis. However, the division of cities into residential and commercial areas, the increasing in the number of tall buildings, and the necessity of creating public spaces inside cities created the necessity of refine the original concept of density. This paper decomposes the concept of density into six indicators across the Japanese municipalities in order to explore the real characteristics of them under a more detailed analysis. We showed that, for example, some cities have high density but not due to be a crowded city; instead those cities have reduced residential areas or the average height of buildings are not as tall as other areas.
    Keywords: Population density, Urban planning, Japan
    JEL: C80 J10
    Date: 2020–05–12
  22. By: Xi Wan (Nanjing Audit University, China); Benteng Zou (CREA, Université du Luxembourg)
    Abstract: This paper examines the importance of commercial revenue on optimal airport charges in Hotelling type duopoly airports under a two-sided market framework with two complementary services-concession and aeronautical operations. Each airport sets commercial and landing charges and serves a single airline. The airport- airline bundle competes for leisure and business passengers. The setting of landing charges under different regulatory regimes is investigated. We demonstrate that in the leisure travel market, which ignores schedule delay cost, the optimal landing fee is invariant to the regulatory scheme, and concession revenue is determined by an airports home market size. In the business travel market, the optimal landing charge is smaller if concession revenue is included in setting the landing fee than if it is not included. In the former case, increasing passenger volume does not guarantee increases in airports’ aeronautical revenue, and a negative impact may exist if the weight of concession profit out of total profit is small.
    Keywords: Airport competition; airport regulation; two-sided markets; landing fee; commercial charge.
    JEL: L93 D43 L13 C72
    Date: 2020
  23. By: Berliant, Marcus
    Abstract: Workers generally commute on a daily basis, so we model commuting as a repeated game. The folk theorem implies that for sufficiently large discount factors the repeated commuting game has as a Nash equilibrium any strategy profile that is at least as good as the maximin strategy for a commuter in the one shot game, including the efficient ones. This result applies whether the game is static, in the sense that only routes are chosen as a strategy by commuters, or dynamic, where both routes and times of departure are chosen. Our conclusions pose a challenge to congestion pricing. We examine evidence from St. Louis to determine what equilibrium strategies are actually played in the repeated commuting game.
    Keywords: Repeated game; Nash equilibrium; Commuting; Folk theorem
    JEL: R41
    Date: 2020–05–06
  24. By: Nuriye Melisa Bilgin (Koç University)
    Abstract: This paper provides insights for policymakers to evaluate the impact of staying at home and lockdown policies by investigating possible links between individual mobility and the spread of the COVID-19 virus in Italy. By relying on the daily data, the empirical evidence suggests that an increase in the number of visits to public spaces such as workspaces, parks, retail areas, and the use of public transportation is associated with an increase in the positive COVID-19 cases in a subsequent week. On the contrary, the increased intensity of staying in residential spaces is related to a decrease in the confirmed cases of COVID-19 significantly. Results are robust after controlling for the lockdown period. Empirical evidence underlines the importance of the lockdown decision. Further, there is substantial regional variation among the twenty regions of Italy. Individual presence in public vs. residential spaces has a more significant effect on the number of COVID-19 cases in the Lombardy region.
    Keywords: COVID-19, Coronavirus, Italy, Regional Heterogeneity, Mobility.
    JEL: I10 I18 I31
    Date: 2020–05
  25. By: Mario Coccia
    Abstract: This study endeavors to explain the relation between air pollution and particulate compounds emissions, wind resources and energy, and the diffusion of COVID-19 infection to provide insights of sustainable policy to prevent future epidemics. The statistical analysis here focuses on case study of Italy, one of the countries to experience a rapid increase in confirmed cases and deaths. Results reveal two main findings: 1) cities in regions with high wind speed and a high wind energy production in MW have a lower number of infected individuals of COVID-19 infection and total deaths; 2) cities located in hinterland zones (mostly those bordering large urban conurbations) with high polluting industrialization, low wind speed and less cleaner production have a greater number of infected individuals and total deaths. Hence, cities with pollution industrialization and low renewable energy have also to consider low wind speed and other climatological factors that can increase stagnation of the air in the atmosphere with potential problems for public health in the presence of viral agents. Results here suggest that current pandemic of Coronavirus disease and future epidemics similar to COVID-19 infection cannot be solved only with research and practice of medicine, immunology and microbiology but also with a proactive strategy directed to interventions for a sustainable development. Overall, then, this study has to conclude that a strategy to prevent future epidemics similar to COVID-19 infection must also be based on sustainability science to support a higher level of renewable energy and cleaner production to reduce polluting industrialization and, as result, the factors determining the spread of coronavirus disease and other infections in society.
    Date: 2020–05
  26. By: Hiroki Tanaka (Doshisha University); Masaya Yasuoka (Kwansei Gakuin University)
    Abstract: This paper presents consideration of a case in which household education investment, which determines the human capital of children, is made using education of two types: public and private. Furthermore, these analyses based on prefectural panel data obtained for Japan are done using a theoretical model by which income inequality affects household education choice and illustrates empirically whether or not the choice of public and private education in junior and senior high school in Japan is affected by household income inequality and by the subsidy provided by central and local governments for high school tuition fees. The analyses yield the following three results. First, in prefectures with high household income inequality, the preference for public education is slight. Second, a policy of no tuition fees for public high schools and a decrease in tuition fees for private high schools that started from 2010 do not affect public and private education choice for high school. Nevertheless, this policy strongly affects enrollment in private junior high schools. Third, an increase in subsidies for tuition fees of private high school started in 2014 raises preferences for private junior high schools and high schools. In addition, in the prefecture in which subsidies for tuition fees that are higher than the level decided by cental government and the subsidies own benefit for enrollment fees, enrollment in private high school is observed to be stimulated.
    Keywords: ; Education choice, Income inequality, Public and private education
    JEL: I24 H52
    Date: 2020–06
  27. By: OECD
    Abstract: Insights from TALIS 2018 shed light on the level of preparedness of teachers and schools to adjust to new ways of working in the face of the COVID-19 crisis. This will allow education systems to learn from the crisis and be better prepared for the challenges of teaching and learning in this new environment.
    Date: 2020–05–29
  28. By: Christopher F Baum (Boston College; DIW Berlin); Miguel Henry (Greylock McKinnon Associates)
    Abstract: As the COVID-19 pandemic has progressed in the U.S., "hotspots" have been shifting geographically over time to suburban and rural counties showing a high prevalence of the disease. We analyze daily U.S. county-level variations in COVID-19 confirmed case counts to evaluate the spatial dependence between neighboring counties. We find strong evidence of county-level socioeconomic factors influencing the spatial spread. We show the potential of combining spatial econometric techniques and socioeconomic factors in assessing the spatial effects of COVID-19 among neighboring counties.
    Keywords: COVID-19, coronavirus, socioeconomic factors, spillover effects, spatial econometrics
    JEL: C13 C21 R15 R23
    Date: 2020–05–29
  29. By: Miriam Hortas-Rico; Vicente Rios; Pedro Pascual
    Abstract: This study investigates the spatial heterogeneity of the flypaper effect in a sample of 2,451 Spanish municipalities over the period 2003-2015 by means of Bayesian spatial panel data econometric techniques including fixed and time-period fixed effects. In particular, we analyse how differences in the degree of political competition and the local government’s monitoring and enforcement effort in tax collection affect the size of the flypaper effect. Our results suggest that municipalities with higher tax-collection efficiency and more political strength exhibit a lower flypaper effect.
    Keywords: Flypaper effect; Political competition; Tax collection efficiency; Spanish Municipalities; Spatial Econometrics.
    JEL: C1 H7
    Date: 2020–05
  30. By: Marinescu, Ioana E. (University of Pennsylvania); Ouss, Ivan (CREST (ENSAE)); Pape, Louis-Daniel (CREST (ENSAE))
    Abstract: How does employer market power affect workers? We compute the concentration of new hires by occupation and commuting zone in France using linked employer-employee data. Using instrumental variables with worker and firm fixed effects, we find that a 10% increase in labor market concentration decreases hires by 12.4% and the wages of new hires by nearly 0.9%, as hypothesized by monopsony theory. Based on a simple merger simulation, we find that a merger between the top two employers in the retail industry would be most damaging, with about 24 million euros in annual lost wages for new hires, and an 8000 decrease in annual hires.
    Keywords: labor market concentration, wages, hires, merger simulation
    JEL: J31 J32 J42 L13 J51 L40 L41 L44
    Date: 2020–05
  31. By: Attila Havas (Institute of Economics, CERS, 1097 Budapest, Tóth Kálmán u. 4., Hungary); György Molnár (Institute of Economics, CERS, 1097 Budapest, Tóth Kálmán u. 4., Hungary)
    Abstract: We develop a new model of social innovation (SI) inspired by the multi-channel interactive learning model of business innovation. As opposed to the linear models of innovation, this model does not identify ‘stages’ of business innovation. Rather, it stresses that innovation is an interactive process, in which collaboration among various partners are crucial, as they possess different types of knowledge, all indispensable for successful innovation activities. Having considered numerous definitions of SI, first we propose a new one, then adapt the multi-channel interactive learning model to SI. To do so, we identify the major actors in an SI process, their activities, interactions, modes of (co-)producing, disseminating and utilising knowledge. We also consider the micro and macro environment of a given SI. We illustrate the analytical relevance of the proposed model by considering three real-life cases. The model can assist SI policy-makers, policy analysts, as well as practitioners when devising, implementing or assessing SI.
    Keywords: Definitions and models of social innovation, Business innovation studies, Multi-channel interactive learning, Microcredit industry, Roma minority, Social housing
    JEL: O35 O30 J71 G21 L31 O18
    Date: 2020–05
  32. By: Mishra, Mukesh Kumar
    Abstract: The world is in the midst of a massive wave of urban growth. World is urbanizing rapidly, and this can bring negative consequences to the environment. Against this backdrop, governments are looking for ways to ensure cities’ environmental sustainability. An urbanizing world means cities are gaining greater control over their development, economically and politically. Cities are also being empowered technologically, as the core systems on which they are based become instrumented and interconnected, enabling new levels of intelligence. In parallel, cities face a range of challenges and threats to their sustainability – across their business and people systems and core infrastructures such as transport, water, energy and communication – that they need to address holistically. To seize opportunities and build sustainable prosperity, cities need to become “smarter.” At the same time, it has been noted that residents of cities and their surrounding environments are increasingly connected through intelligent or smart technologies.
    Keywords: Smart Cities,Smart Economy
    JEL: O18 O19
    Date: 2020
  33. By: Glenn Magerman; Victor Ginsburgh; Ilaria Natali
    Abstract: The recent outbreak of Covid-19 has infected the world at an incredible speed. While there are many similarities across countries in terms of the characteristics of the epidemic spread, there are also large differences across regions. In this paper, we examine regional variation in the outbreak across continental France. We use information on the number of deaths and discharged patients from Covid-19 and socio-economic variables at the department level. Controlling for other factors, we corroborate existing evidence that, unfortunately, inequality kills: departments with more inequality face a higher incidence rate of the disease, expressed as the number of deaths and discharged (gravely ill) patients. Using covariance analysis combining both deaths and releases, we find no statistically differential relationship across factors that contribute to deaths or recoveries.
    Keywords: Covid-19; France; departmental effects on the pandemic
    JEL: I10 I14
    Date: 2020–05
  34. By: Michaels, Guy; Rauch, Ferdinand; Redding, Stephen
    Abstract: We develop a new methodology for quantifying the tasks undertaken within occupations using over 3,000 verbs from more than 12,000 occupational descriptions in the Dictionary of Occupational Titles (DOTs). Using micro-data from the United States from 1880-2000, we find an increase in the employment share of interactive occupations within sectors over time that is larger in metro areas than non-metro areas. We interpret these findings using a model in which reductions in transport and communication costs induce urban areas to specialize according to their comparative advantage in interactive tasks. We presenting suggestive evidence relating increases in employment in interactive occupations to improvements in transport and communication technologies. Our findings highlight a change in the nature of agglomeration over time towards an increased emphasis on human interaction.
    Keywords: economic development; human interaction; urbanization
    JEL: N0
    Date: 2019–06–01
  35. By: Patrizio Lecca (European Commission - JRC); Simone Salotti (European Commission - JRC); Andrea Conte (European Commission - JRC)
    Abstract: The European cohesion policy is the EU’s main investment policy and targets all regions and cities across the EU to support job creation, business competitiveness, economic growth, and sustainable development. In the 2014–2020 programming period, one third of the EU budget has been allocated to the projects under this policy. This report contains a macroeconomic impact assessment of the European cohesion policy with a focus on Polish regions. The analysis deals in particular with the spillover effects arising from the policy intervention resulting from indirect trade effects and other inter-regional inter-dependencies and interactions. The analysis shows that the policy has a positive long-run impact, lasting years after the end of the programmes. This reflects the fact that cohesion policy supports investments in key engines of growth improving the structure of the Polish economy.
    Keywords: Rhomolo, region, growth, cohesion policy, Poland
    JEL: C68 R13
    Date: 2020–06
  36. By: Jahn, Malte; Schumacher, Paul; Wedemeier, Jan; Wolf, André
    Abstract: The paper at hand discusses the different typologies of combined transportation in Europe. It shows that an improvement of handling infrastructure for combined transport can positively reduce environmental costs of trading between regions. However, the expected emission reduction effects are relatively small in comparison to the total emissions of the transport sector. This means that, in order to achieve a substantial reduction of emissions, combined transport initiatives need to be complemented by a reduction of the specific emissions of the relevant transport modes. The paper closes with an outlook towards the development of the combined transportation sector.
    Keywords: combined transport,European Union,hinterland transportation,sustainability,regional economics,Baltic Sea Region
    JEL: R4 R40 R48 Q56
    Date: 2020
  37. By: Daniel A. Brent (Department of Agricultural Economics, Sociology, and Education, Pennsylvania State University); Louis-Philippe Beland (Department of Economics, Carleton University)
    Abstract: Traffic congestion is a growing problem in urbanizing economies that results in lost time, health problems from pollution, and contributes to the accumulation of greenhouse gas emissions. We examine a new external cost of traffic by estimating the relationship between traffic congestion and emergency response times. Matching traffic data at a fine spatial and temporal scale to incident report data from fire departments in California allows us to assign traffic immediately preceding an emergency. Our results show that traffic slows down fire trucks arriving at the scene of an emergency and increases the average monetary damages from fires. The effects are highly nonlinear; increases in response time are primarily due to traffic in the right tail of the traffic distribution. We document an additional externality of traffic congestion and highlight the negative effect of traffic on a critical public good.
    Keywords: Traffic, Public Goods, Externalities, Emergency Response Times
    JEL: R41 R42 R48 H41 Q50
    Date: 2020–05–20
  38. By: Tione, Sarah E. (Centre for Land Tenure Studies, Norwegian University of Life Sciences); Holden, Stein T. (Centre for Land Tenure Studies, Norwegian University of Life Sciences)
    Abstract: This study investigates whether and to what extent rainfall shocks recurring in Sub-Saharan Africa, that have been associated with distress land rentals, enhance short-term and medium-term access to rented land by tenant households. Tenant households’ rental decisions are modeled in the state-contingent framework with renting-in of land as a risky input choice. Our data is from three rounds of LSMS data from Malawi used to construct a balanced household panel, combined with corresponding district rainfall data that are used to generate seasonal district-wise rainfall shock variables. Panel probit and Tobit models controlling for unobserved heterogeneity were used. Regional heterogeneities were revealed. The results from the Central Region of Malawi, where land rental markets are most active, indicates that the one-year and two-year lagged downside rainfall shocks help tenant households accessing land not only the first year after a rainfall shock but also in the following years. For the more land constrained Southern Region of Malawi, with less prevalence of land rental markets, we observed that the two-year lagged downside rainfall shock is associated with less access to rented land. These results reveal surprising intertemporal and regional variations that are important for policy discussions and lessons on land rental markets amidst recurring rainfall shocks in SSA.
    Keywords: Rainfall shocks; Land rental markets; State-contingent framework; Malawi.
    JEL: Q15 Q51
    Date: 2020–05–22
  39. By: Dave, Dhaval M. (Bentley University); Friedson, Andrew I. (University of Colorado Denver); Matsuzawa, Kyutaro (San Diego State University); Sabia, Joseph J. (San Diego State University)
    Abstract: Shelter in place orders (SIPOs) require residents to remain home for all but essential activities such as purchasing food or medicine, caring for others, exercise, or traveling for employment deemed essential. Between March 19 and April 20, 2020, 40 states and the District of Columbia adopted SIPOs. This study explores the impact of SIPOs on health, with particular attention to heterogeneity in their impacts. First, using daily state-level social distancing data from SafeGraph and a difference-in-differences approach, we document that adoption of a SIPO was associated with a 5 to 10 percent increase in the rate at which state residents remained in their homes full-time. Then, using daily state-level coronavirus case data collected by the Centers for Disease Control and Prevention, we find that approximately three weeks following the adoption of a SIPO, cumulative COVID-19 cases fell by 44 percent. Event-study analyses confirm common COVID-19 case trends in the week prior to SIPO adoption and show that SIPO-induced case reductions grew larger over time. However, this average effect masks important heterogeneity across states — early adopters and high population density states appear to reap larger benefits from their SIPOs. Finally, we find that statewide SIPOs were associated with a reduction in coronavirus-related deaths, but estimated mortality effects were imprecisely estimated.
    Keywords: coronavirus, COVID-19, shelter-in-place order, social distance
    JEL: H75 I18
    Date: 2020–04
  40. By: Asma Benhenda (Centre for Education Policy and Equalising Opportunities, UCL Institute of Education, University College London)
    Abstract: The COVID-19 pandemic has triggered an unprecedented shock to the UK and global economy. Teaching is often perceived as "recession-proof" by the general public. To what extent does existing economic evidence back this intuition? How do economic recessions impact teacher labour markets? This briefing note summarises the empirical evidence on the impact of recessions on teacher labour markets, through their effects on 1/ teacher labour supply (number and quality of applicants to teaching positions) and 2/ teacher labour demand (teacher job openings). While recessions can positively impact teacher labour supply by making the teaching profession more attractive, it can also negatively impact demand through austerity measures and cuts in teacher job openings and wages.
    Keywords: Teachers, Recessions, Labour Markets, Teacher Labour Market.
    JEL: I28 J23 J24 J45
    Date: 2020–05
  41. By: Lu Zhang (CPB Netherlands Bureau for Economic Policy Analysis); Lennart Stangenberg (RUG); Sjors van Wickeren (EUR)
    Abstract: Do energy labels contain extra information that buyers cannot observe themselves? Which labeling scheme is more effective: a voluntary or a mandatory one? In this paper we examine the information value of voluntary and mandatory energy labels using administrative data on all transactions in the Dutch residential housing market. Employing a combination of hedonic price models, matching and a sharp Regression Discontinuity Design (RDD), we show that voluntary labels introduced in the period 2008-2014 contain limited information value. The information value of mandatory labels that are adopted since 2015 is less clear-cut. We observe that better-labeled dwellings were transacted with significant price premiums before obtaining labels. This implies that at least part of the premiums cannot be attributed to mandatory labels.
    JEL: R38 R58
    Date: 2020–05
  42. By: Marcos Agurto (Universidad de Piura); Sandra Buzinsky (Universidad de Piura); Fernando Fernandez (Universidad de Piura); Javier Torres (Universidad del Pacífico)
    Abstract: We exploit a randomized control trial involving 131 fellows of a higher education scholarship program, who study at the same university. Half of the students were randomly assigned to a youth community engagement initiative and acted as academic ambassadors in the diffusion of an electronic wallet in their local communities. They received training on leadership, teamwork and financial literacy. Also, their role as agents of change in their communities was constantly emphasized. They later delivered training and information sessions about the new electronic wallet to members of their local communities. Treated female students show positive effects regarding attitudes of empowerment, self-efficacy, motivation, and community engagement. On average, treated female students report being more appreciated by their community members, have a stronger sense of commitment towards their community, and report higher levels of self-efficacy. They also experience improved academic performance, measured in GPA and academic credits successfully completed. We do not find the same effects for treated male students.
    Keywords: Youth Empowerment, College Academic Performance, Community Engagement, Beca 18, Peru
    JEL: H52 I25 I28 J16
    Date: 2020–05
  43. By: Michael Fritsch (Friedrich Schiller University Jena and Halle Institute for Economic Research (IWH), Germany); Maria Kristalova (Friedrich Schiller University Jena, Germany); Michael Wyrwich (University of Groningen, The Netherlands, and Friedrich Schiller University Jena, Germany)
    Abstract: We investigate how major historical shocks affect regional trajectories of economic activity. To this end, we conduct a comparative analysis of the development of entrepreneurship in East and West Germany after World War II. The introduction of an anti-entrepreneurial socialist economy in East Germany in 1949, and the subsequent transformation to a market economy four decades later were major historical shocks to the economy in general, and to entrepreneurship specifically. Our comparative analysis of East and West Germany assesses how these shocks affected the level of entrepreneurship at the regional level. Surprisingly, our results show that socialism does not have a long-run negative effect on the prevalence of self-employment in East Germany, despite the severe anti- entrepreneurial policies prevalent in Soviet-style socialism. Quite to the contrary, there is actually a positive treatment effect of German separation and reunification. Further analyses suggest that current structural differences in regional levels of self-employment in Germany are not pre- dominantly due to the socialist legacy of the East, but mainly a result of the shock transformation that occurred with reunification.
    Keywords: Entrepreneurship, self-employment, transition, socialism, regional development, GDR
    JEL: L26 R11 N94 P25
    Date: 2020–06–02
  44. By: Hooijen, Inge (ROA / Human capital in the region, RS: GSBE Theme Learning and Work); Cörvers, Frank (RS: GSBE Theme Learning and Work, RS: FdR Institute ITEM, RS: SBE - MACIMIDE, ROA / Human capital in the region)
    Abstract: Despite the importance of STEM workers to regional economies, scientists and policymakers have a limited understanding of how to recruit this scarce target group, particularly in offering an attractive living environment. This case study uses self-reported overall life satisfaction to explore the living preferences of STEM workers employed at a high-tech business park (HTBP) in a demographically shrinking region in the southern periphery of the Netherlands. We argue that individuals’ self-evaluation of life satisfaction is a proxy for their individual utility and thereby indicates the preferred features of the geographical unit in which they reside. We relate the survey data of 420 employees at the business park to the specific characteristics of the municipalities they live in, complemented by qualitative data from 32 semi-structured interviews with these workers. We conclude that the average STEM worker at the HTBP prefers to reside in places of lower extraversion, which are often characterized by a suburban lifestyle, green areas, and open spaces, including a little touch of consumer amenities.
    JEL: J11 O18 R11 R23 R58
    Date: 2020–05–18
  45. By: Kumar, Himangshu; Nataraj, Manikantha
    Abstract: Indian central and state governments have imposed restrictions on human mobility to slow the spread of COVID-19. Based on state government directives and mobility data from Google, we find that similar restrictions did not lead to equal reductions in mobility across states before the national lockdown. Maharashtra’s restrictions were the most effective in reducing mobility by a large margin. The national lockdown had a larger and more uniform effect for most states.
    Keywords: Mobility, social distancing, government restrictions, COVID-19, coronavirus, India
    JEL: I18 Z18
    Date: 2020–05–10
  46. By: Yutao Han (University of International Business and Economics, Beijing, CH); Patrice Pieretti (Department of Economics and Management, Université du Luxembourg)
    Abstract: The aim of the paper is to analyze tax competition with inter- nationally mobile individuals who make occupational choices. Two types of migration are distinguished, namely entrepreneur and worker migration. When the competing jurisdictions put a sufficiently high valuation on public good expenditures, entrepreneurship migration increases joint welfare relative to autarky. However, in case of labor migration, tax competition can decrease joint welfare independently of how much the jurisdictions value public expenditures.
    Keywords: migration, tax competition, occupational choice, social Welfare
    JEL: F22 H24 H73 J24 J61
    Date: 2020
  47. By: F Baum, Christopher (Boston College, DIW Berlin & Centre of Excellence for Science and Innovation Studies); Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Stephan, Andreas (Jönköping University, DIW Berlin & Centre of Excellence for Science and Innovation Studies); F. Zimmermann, Klaus (UNU-MERIT, Maastricht University, CEPR and GLO)
    Abstract: Refugee workers start low and adjust slowly to the wages of comparable natives. The innovative approach in this study using unique Swedish employer employee data shows that the observed wage gap between established refugees and comparable natives is mainly caused by occupational sorting into cognitive and manual tasks. Within occupations, it can be largely explained by differences in work experience. The identification strategy relies on a control group of matched natives with the same characteristics as the refugees, using panel data for 2003–2013 to capture unobserved heterogeneity.
    Keywords: refugees; wage earnings gap; Blinder—Oaxaca decomposition; employer-employee data; coarsened exact matching; correlated random effects model
    JEL: C23 F22 J24 J60 O15
    Date: 2020–06–01
  48. By: Nils D. Steiner (Johannes Gutenberg University); Philipp Harms (Johannes Gutenberg University)
    Abstract: Is opposition to globalization rooted in economic transformations caused by international trade? To contribute to the ongoing debate on this question, we propose a “nationalist backlash” thesis and test it with panel data on individual political attitudes. We argue that individuals living in regions suffering from stronger import competition develop more nationalist attitudes as part of a broad counter-reaction to globalization. Our analysis of data from the British Household Panel Study (BHPS) finds that respondents from regions exposed to higher imports from low-wage countries – in particular, China – turn more critical of EU membership and international cooperation. Moreover, on an affective level, their nationalist sentiments increase. In contrast, there is no evidence that regional trade shocks cause economic policy orientations to shift leftwards. We thus document a direct individual-level response to import shocks in the form of rising nationalist attitudes that helps to explain these shocks’ aggregate electoral consequences in terms of increased vote shares for the radical right.
    Keywords: China shock; globalization; import competition; international trade; nationalism; political attitudes; EU support; panel data.
    JEL: C90 D01 D90 D91
    Date: 2020–05–22
  49. By: Jost, Ramona (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "Based on the geo-referenced data, I analyse the commuting behaviour of employees in Germany. With the help of a behavioural economic approach, which is based on the investigation of Simonsohn (2006) for the US, I can show that it is not only the wage and the individual heterogeneity that shape commuting decisions. Instead, the commuting behaviour depends on the context individuals observe in the past. In particular, I demonstrate that the commuting behaviour is influenced by past-observed commutes: Worker choose longer commuting times in a region they just moved to, the longer the average commute was in the region they moved away. This effect applies especially for older employees, but is the same for men and women. Moreover, my robustness checks indicate that individual heterogeneity, selectivity or endogeneity issues do not drive this effect. In addition, I show if individuals stay in the new region, the effect of the previous region disappears, as workers adapt the commuting behaviour of the new region and move again within the new region. This is consistent with the prediction of behavioural economic theory, but refuses the assumption of stable taste differences." (Author's abstract, IAB-Doku) ((en))
    JEL: J60 R10 R19 R23
  50. By: Robert J. Barro
    Abstract: Non-pharmaceutical interventions (NPIs) were measured by Markel, et al. (2007) for U.S. cities during the second wave of the Great Influenza Pandemic, September 1918-February 1919. The NPIs were in three categories: school closings, prohibitions on public gatherings, and quarantine/isolation. An increase in NPIs sharply reduced the ratio of peak to average deaths, with a larger effect when NPIs were treated as endogenous. However, the estimated effect on overall deaths was small and statistically insignificant. The likely reason that the NPIs were not more successful in curtailing mortality is that the interventions had a mean duration of only around one month.
    Date: 2020

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