|
on Urban and Real Estate Economics |
| By: | Dionissi Aliprantis; Hal Martin; Kristen Tauber |
| Abstract: | There is currently interest in crafting public housing policy that combats, rather than contributes to, the residential segregation in American cities. One such policy is the Housing Mobility Program (HMP), which aims to help people move from disinvested neighborhoods to ones with more opportunities. This paper studies how design features influence the success of HMPs in reducing racial segregation. We find that the choice of neighborhood opportunity index used to define the opportunity areas to which participants are encouraged to move has limited influence on HMP success. In contrast, we find that three design features have large effects on HMP success: 1) whether the geographic scope is confined to the central city or is implemented as a metro-level partnership; 2) whether the eligibility criteria are race-based, race-conscious, or race-neutral; 3) whether tenant counseling, tenant search assistance, and landlord outreach are successful in relaxing rental housing supply constraints. |
| Keywords: | housing mobility program; opportunity mapping; neighborhood effect; housing choice voucher program |
| JEL: | J15 R23 I38 H43 |
| Date: | 2020–11–24 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedcwq:89091&r=all |
| By: | Parolin, Zachary (Columbia University); Lee, Emma |
| Abstract: | The COVID-19 pandemic has prompted many school districts to turn to distance or at-home learning. Studies are emerging on the negative effects of distance learning on educational performance. Less is known, however, about the socio-economic, geographic, and demographic characteristics of students exposed to distance-learning across the United States. We introduce a U.S. School Closure & Distance Learning Database that tracks in-person attendance across more than 100,000 schools from January through October 2020. We measure year-over-year change in in-person attendance for each school throughout 2020 to estimate whether the school is engaged in distance learning after the onset of the pandemic. Our findings reveal large socio-economic, geographic, and demographic disparities in exposure to distance learning. In October 2020, schools recording the lowest third-grade math scores are nearly twice as likely to be closed compared to schools recording the highest math scores. The average racial composition of closed schools is 25 percentage points less white compared to schools operating in-person (40% versus 65%). Moreover, closures are more common in schools with a higher share of students who experience homelessness, are of limited English proficiency, are eligible for free or reduced-price school lunch, live in single-parent families, or are racial/ethnic minorities. Distance learning is more common in high schools and middle schools relative to elementary schools, but disparities in exposure to distance learning are comparable across school type. Given the potential negative consequences of school closures on educational performance, the vast inequalities in exposure to distance learning portend rising disparities in learning outcomes. |
| Date: | 2020–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:cr6gq&r=all |
| By: | Gabriel Lang (MIA-Paris - Mathématiques et Informatique Appliquées - AgroParisTech - INRA - Institut National de la Recherche Agronomique); Eric Marcon (UMR ECOFOG - Ecologie des forêts de Guyane - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRA - Institut National de la Recherche Agronomique - AgroParisTech - UG - Université de Guyane - CNRS - Centre National de la Recherche Scientifique - UA - Université des Antilles); Florence Puech (RITM - Réseaux Innovation Territoires et Mondialisation - UP11 - Université Paris-Sud - Paris 11) |
| Abstract: | For a decade, distance-based methods have been widely employed and constantly improved in the field of spatial economics. These methods are a very useful tool for accurately evaluating the spatial distribution of plants or retail stores, for example (Duranton and Overman, 2008). In this paper, we introduce a new distance-based statistical measure for evaluating the spatial concentration of economic activities. To our knowledge, the m function is the first relative density function to be proposed in the economics literature. This tool supplements the typology of distance-based methods recently drawn up by Marcon and Puech (2012). By considering several theoretical and empirical examples, we show the advantages and the limits of the m function for detecting spatial structures in economics. |
| Keywords: | Agglomeration,Aggregation,Spatial Concentration,Point Patterns,Economic Geography |
| Date: | 2019–10–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01082178&r=all |
| By: | Bietenbeck, Jan (Lund University) |
| Abstract: | I study how motivation shapes own and peers' educational success. Using data from Project STAR, I find that academic motivation in early elementary school, as measured by a standardized psychological test, predicts contemporaneous and future test scores, high school GPA, and college-test taking over and above cognitive skills. Exploiting random assignment of students to classes, I find that exposure to motivated classmates causally affects contemporaneous reading achievement, a peer effect that operates over and above spillovers from classmates' past achievement and socio-demographic composition. However, peer motivation does not affect longer-term educational success, likely because it does not change own motivation. |
| Keywords: | motivation, personality, peer effects, Project STAR |
| JEL: | I21 J13 J24 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp13872&r=all |
| By: | Ochsen, Carsten |
| Abstract: | Since the early 1970s, it was argued that shifts from relatively smaller to larger youth cohorts in the labor force raise the unemploy- ment rate. In contrast, Shimer (2001) comes to a contrary conclusion using US state level data. I provide a theoretical framework for local labor markets that considers age cohort differences in labor market characteristics. Using a spatial panel data model and US county level data (2000-2014), the estimates provide strong evidence that aging of the working age population reduces overall unemployment by almost one percentage point. Long-run effects that consider local feedbacks are even larger. |
| Keywords: | Regional Unemployment,Spatial Interactions,Aging,Panel Data,Spatial Model |
| JEL: | J60 R12 J10 C23 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:roswps:165&r=all |
| By: | Araujo P., Maria Daniela; Heineck, Guido; Cruz Aguayo, Yyannú |
| Abstract: | Since 2007, the Ecuadorian government has required teacher candidates to pass national skill and content knowledge tests before they are allowed to participate in merit-based selection competitions for tenured positions at public schools in an attempt to raise teacher quality. We evaluate the impact of this policy using linked administrative teacher information to data from a unique experimental study where almost 15,000 kindergarten children were randomly assigned to their teachers in the 2012-2013 school year in Ecuador. We find positive and significant effects of testscreened tenured teachers of at least a 0.105 standard deviation for language and a 0.085 standard deviation for math, which persist even after controlling for teacher education, experience, cognitive ability, personality traits and classroom practices. |
| Keywords: | teacher quality,education policy evaluation,Latin America |
| JEL: | I20 I21 I25 I28 J45 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bamber:165&r=all |
| By: | Charlotte Articus; Hanna Brenzel; Ralf Münnich |
| Abstract: | Recent developments on German real estate markets show a striking increase of rents, especially in larger towns. This development is, however, not homogeneous: The market dynamics vary between different parts of cities and prices develop highly heterogeneously. Therefore, small-scale results are of interest. The German Mikrocensus, Germany’s largest household survey, routinely provides information on housing, including rental prices. Since 2018 results are geo-coded, setting the prerequisite for obtaining results at a local level. This specifically strong regional disaggregation obviously results in small sample sizes for the entities of interest. While standard design-based estimators under these condition result in large standard errors, small are estimation techniques may be a solution to nevertheless obtain reliable estimates. Therefore, the present paper explores the opportunity of obtaining very small-scale estimates of average rental prices based on the Mikrozensus employing small area estimation models. The study focusses on the City of Cologne, which provides a broad range of indicators that can be employed as auxiliary information in the models. |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:trr:wpaper:202009&r=all |
| By: | Davor Kunovac Author-Name-First: Davor (The Croatian National Bank, Croatia); Ivan Žilić (The Institute of Economics, Zagreb, Croatia) |
| Abstract: | In this paper, we explore whether a program of housing loan subsidies introduced in Croatia contributed to housing price increases. The subsidy was designed to cover a portion of annuities in the initial period of the housing loan repayment, with a distinct feature that a household could apply for the subsidy only during a monthlong period. Using a dataset on housing transactions we document that the subsidy disrupted the usual intra-annual dynamics of residential transactions as they became very concentrated in the month when housing loan subsidy applications ended. Using an event study approach we find that the housing prices increased just around the introduction of the subsidy. In order to discuss possible confounders, we exploit the subsidy built-in implementation rules, discuss the role of the international housing cycle, and explore the interplay of the housing market and tourism in Croatia. We conclude that the housing loan subsidy acted as a procyclical policy that contributed to the already increasing trend of housing prices. Finally, exploiting the regional variation in the subsidy intensity, we conclude that housing price capitalization was driven by prices in areas and regions with already active housing markets. |
| JEL: | H24 R21 R31 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:hnb:wpaper:60&r=all |
| By: | Cheng Keat Tang (Nanyang Technological University); Jos van Ommeren (Vrije Universiteit Amsterdam) |
| Abstract: | This paper estimates the marginal accident externality of driving in Central London by exploiting variation in traffic flow induced by the London Congestion Charge Zone using an instrumental variable approach. The charge attributed to a 9.4% reduction in traffic flow, which resulted in a less than proportional 6.0% and 7.6% decrease in accidents and slight injuries, and a 6.5% increase in serious injuries/fatalities. Our preferred estimates indicate that the accident, slight injuries, and serious injuries/fatalities rate elasticities with respect to traffic flow are -0.36, -0.19 and -1.65 respectively. These estimates imply that the marginal external benefit of road safety from an additional kilometre driven is approximately £ 0.16. The marginal accident externality is positive, as the marginal driver along congested roads decreases the risk and severity of traffic collisions for other road users by slowing others down and increasing awareness. |
| Keywords: | Accidents, Injuries, Fatalities, Congestion Charge, Externalities |
| JEL: | H23 I18 R41 R48 |
| Date: | 2020–11–24 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20200080&r=all |
| By: | Lake, A. |
| Abstract: | I introduce a new test of whether house prices are always equal to their fundamental values, which are defined to account for the unique frictions in housing asset markets, based on the speed of their reaction to monetary shocks. This test is justified with two conceptual frameworks and existing empirical work on monetary transmission. The results of applying this test to US data using local projections reject the hypothesis, but are instead consistent with behavioural expectations in housing markets. I also use a sign decomposition based on the conceptual frameworks to identify that consumption demand is the most important driver of US house price cycles, although asset demand is also relatively important. Therefore housing cycles usually arise from partially behavioural reactions to changes in housing demand. |
| Keywords: | House Prices, Forecasting, Expectations, Housing Cycles, Monetary Shocks, Behavioural Housing |
| JEL: | G14 R31 E32 D84 |
| Date: | 2020–11–11 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:20104&r=all |
| By: | Murphy, Richard; Weinhardt, Felix |
| Abstract: | This article establishes a new fact about educational production: ordinal academic rank during primary school has lasting impacts on secondary school achievement that are independent of underlying ability. Using data on the universe of English school students, we exploit naturally occurring differences in achievement distributions across primary school classes to estimate the impact of class rank. We find large effects on test scores, confidence, and subject choice during secondary school, even though these students have a new set of peers and teachers who are unaware of the students’ prior ranking in primary school. The effects are especially pronounced for boys, contributing to an observed gender gap in the number of Maths courses chosen at the end of secondary school. Using a basic model of student effort allocation across subjects, we distinguish between learning and non-cognitive skills mechanisms, finding support for the latter. |
| Keywords: | rank; cognitive skills; peer effects; productivity; ES/J003867/1; UKRI block grant |
| JEL: | I21 J24 |
| Date: | 2020–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:105077&r=all |
| By: | Cai, Shu (Jinan University and Global Labor Organization.); Zimmermann, Klaus F. (UNU-MERIT, Maastricht University, CEPR and Global Labor Organization) |
| Abstract: | Previous research has found identity to be relevant for international migration, but has neglected internal mobility as in the case of the Great Chinese Migration. However, the context of the identities of migrants and their adaption in the migration process is likely to be quite different. The gap is closed by examining social assimilation and the effect on the labourmarket outcomes of migrants in China, the country with the largest record of internal mobility. Using instrumental variable estimation, the study finds that identifying as local residents significantly increase migrants’ hourly wages and reduce hours worked, although their monthly earnings remained barely changed. Further findings suggest that migrants with strong local identity are more likely to use local networks in job search, and to obtain jobs with higher average wages and lower average hours worked per day. |
| Keywords: | Social assimilation, identity, labour market, migration |
| JEL: | J22 J31 J61 O15 Z13 |
| Date: | 2020–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2020051&r=all |
| By: | Hasan, Syed M.; Zhang, Wendong |
| Abstract: | Using four rounds of nationwide household survey data from the Pakistan Social and Living Standards Measurement Survey from 2005 to 2014, we provide the first empirical estimates of districts’ carbon emissions and their changes over time based on representative households’ energy consumption. We find that hotspots for carbon emissions in Pakistan tend to cluster around megacities—Islamabad has the highest per capita carbon emissions. This is contradictory to the compact city hypothesis that denser cities are greener, with lower per-capita carbon emissions, than remote cities, and suggest that urbanization in developing countries may not reduce carbon emissions. Our results also show that ignoring household garbage would underestimate the urban carbon footprint by at least 15%. Finally, our results demonstrate the importance of incorporating rural households and their primary energy usage such as firewood, and the fluid nature of carbon emissions and greenness ranking over time in developing countries like Pakistan. |
| Date: | 2020–05–04 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genstf:202005040700001117&r=all |
| By: | Ferraro, Aniello; Agovino, Massimilano; Garofalo, Antonio; Cerciello, Massimilano |
| Abstract: | Social exclusion represents a popular topic in the policy agendas of European governments, especially after the Great Recession. The existing literature highlights the presence of spatial patterns, although previous contributions consist of local or national level studies, lacking a broader continental perspective. This work resorts to regional data covering 22 EU countries and aims to characterise the nature of spatial patterns, controlling for socio-economic covariates. Using the Spatial Markov Chain Matrix, we find that the strong clusterisation process unfolded by previous studies tends to become less intense if socio-economic covariates are taken into account. Socio-economic factors represent in other words a containment cage that reduces the extent of neighbour influence. |
| Keywords: | social exclusion; spatial spillovers; spatial markov chain matrix; European regions. |
| JEL: | A14 E0 E24 E25 I3 J6 R5 |
| Date: | 2020–10–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:104217&r=all |
| By: | Steve Machin; Sandra McNally; Camille Terrier; Guglielmo Ventura |
| Abstract: | Some countries, notably those which have long had a weak history of vocational education like the UK and the US, have recently seen a rapid expansion of hybrid schools which provide both general and vocational education. England introduced ‘University Technical Colleges’ (UTCs) in 2010 for students aged 14 to 18. 49 UTCs have been created since then. We use a spatial instrumental variable approach based on geographical availability to evaluate the causal effect of attending a UTC on student academic and vocational achievement and on their labour market outcomes. For those pupils who enter the UTC at a non-standard transition age of 14, UTCs dramatically reduce their academic achievement on national exams at age 16. However, for students who enter at a more conventional transition age of 16, UTCs boost vocational achievement without harming academic achievement. They also improve achievement in STEM qualifications, and enrolment in apprenticeships. By age 19, UTC students are less likely to be unemployed and more likely to study STEM at university. |
| Keywords: | technical education, tracking, school value-added |
| JEL: | I20 I21 I28 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8678&r=all |
| By: | World Bank Group |
| Keywords: | Urban Development - Hazard Risk Management Urban Development - Urban Environment Urban Development - Urban Governance and Management Urban Development - Urban Housing |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:34439&r=all |
| By: | Jeff Larrimore; Erin Troland |
| Abstract: | COVID-19 caused widespread job loss, raising concerns about whether people can still cover their rent or mortgage expenses. Policymakers and researchers are working to understand the effects of the pandemic on housing payments and predict future payment rates. |
| Date: | 2020–10–20 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfn:2020-10-20&r=all |
| By: | Schmidt, James |
| Abstract: | Abstract: This study examines the effect of vegetation cover near structures on the loss rate for single family residences (SFR’s) in four recent northern California wildfires: the Butte fire (September, 2015), the Tubbs fire (October, 2017) , the Carr fire (July, 2018) , and the Camp fire (November, 2018). In total, 19,508 destroyed and 5,208 surviving SFR’s were included in the study. The proportion of pre-fire vegetation cover within 25 meters of a central point representing each structure was estimated using high-resolution infrared aereal imagery. For each fire, structures were grouped into 10 vegetation cover classes, based on the proportion of cover, and loss rates were calculated by class. Linear regression was applied to estimate the effect of vegetation cover on loss rates. Loss rates were found to increase in proportion to vegetation cover in three of the four fires. For the two fires in the Sierra Nevada foothills (Butte and Camp) the slope of the loss rate regression line was similar, around 0.9. That is, the probability of loss increased by 0.9 % for every 1% increase in vegetation cover in the 25-meter zone. For the Carr fire, the loss rate slope coefficient was estimated to be 0.4, about half of the value for the Sierra fires. Structure loss rates in the Tubbs fire were uncorrelated with vegetation cover. The effects of wind speed, vegetation type, and housing density on loss rates were also examined. Loss rate regression lines tended to shift upward in concert with the maximum wind speeds encountered on each fire. In the case of the Tubbs fire, high winds appeared to completely negate the influence of vegetation cover on loss rates. Structures located in conifer vegetation types had a higher loss rate when compared to those located in hardwood types for the Sierra fires, but that pattern did not hold for the Tubbs or Carr fires, located in more coastal mountain ranges. Loss rates did not differ significantly by Wildland Urban Interface zones as mapped by the University of Wisconsin’s SILVIS lab. |
| Keywords: | Wildfire, Structure loss, Vegetation, Defensible Space, Butte Fire, Tubbs Fire, Carr Fire, Camp Fire, California, Wind Speed, Lifeform, Conifer, Hardwood, Shrub, WUI, Wildland Urban Interface, CALFIRE, NDVI, NAIP, LIDAR, Infrared, Housing Density, Linear Regression, Vegetation Cover, Loss Rate, Single Family Residence, Vegetation Reduction, Lifeform, FVEG, FRAP |
| JEL: | H8 Q54 Q58 |
| Date: | 2020–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:104232&r=all |
| By: | Servaas van der Berg (Resep, Department of Economics, Stellenbosch University); Chris van Wyk (Resep, Department of Economics, Stellenbosch University); Rebecca Selkirk (Resep, Department of Economics, Stellenbosch University) |
| Abstract: | One needs good quality data on current enrolment, dropout and repetition in order to evaluate the possible implications of different repetition and dropout decisions by school authorities, learners and parents for enrolment numbers and for the composition of classes in 2021. We obtained learner level data from LURITS, a relative recent way of organising and managing enrolment data that has superseded the Annual National Census of Schools. Though far from perfect, this data give good information about the extremely high levels of repetition. High repetition leads to many learners being over-aged and to dropout being quite common in secondary school. Assessing various alternative scenarios about learners returning to school, repetition and dropout, we conclude that the most likely outcome for 2021 is that considerably more learners would be promoted to grades 11 and 12 in particular, with implications for allocations of classrooms, books and teachers, with a decline of repetition in Grade 10. Learners in all grades would have a learning deficit compared to previous years, but in addition, the heterogeneity of academic backgrounds would be even greater than usual in 2021 in the final two grades, confronting teachers with an even more difficult task than usual. |
| Keywords: | Covid-19, pandemic, schools, repetition, enrolment, dropout, South Africa |
| JEL: | I22 O15 H41 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:sza:wpaper:wpapers355&r=all |
| By: | Marouane Alaya (Portland State University) |
| Abstract: | In this paper various spatial econometric models are performed to check the existence of spatial growth spillovers across a sample study including 73 countries from MENA, Asia, and Europe over the period 1996-2014. The results indicate the occurrence of positive spatial correlation in terms of economic growth within and between the different regions included in the study. However, the findings are somewhat disappointing for the MENA region since we did not find evidence of the presence of strong connections of MENA economies with the other regions namely Asia and Europe. |
| Date: | 2020–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:erg:wpaper:1426&r=all |
| By: | Fidrmuc, Jarko; Moroz, Serhiy; Reck, Fabian |
| Abstract: | This paper analyzes the impact of ethnic heterogeneity and military conflict on the degree of regional consumption risk-sharing in Ukraine. Ethnicity and violent conflicts can influence risk-sharing e.g. through social capital, ethnic fractionalization, migration, and remittances. The sample consists of 25 Ukrainian oblasts and covers the highly volatile period from 2003 to 2016. Our results suggest that the degree of consumption risk-sharing is comparably high; between 70 and 80 percent on average. Moreover, consumption risk-sharing is significantly higher in the regions with a large Russian minority, which are enjoying special treatment by Russia. By contrast, the degree of financial development, as proxied by deposit and loan share in GRP, does not significantly affect the regional degree of consumption risk-sharing. Furthermore, we apply spatial models to control for spatial dependence across regions. Results are confirmed and it is shown that spatial correlation is important. Finally, we show that the recent geopolitical conflict in east Ukraine changed the regional degree of consumption risk-sharing. |
| JEL: | E32 E21 R12 P25 |
| Date: | 2020–11–23 |
| URL: | http://d.repec.org/n?u=RePEc:bof:bofitp:2020_025&r=all |
| By: | Moritz Drechsel-Grau; Fabian Greimel |
| Abstract: | We evaluate the hypothesis that rising inequality was a causal source of the US household debt boom since 1980. The mechanism builds on the observation that households care about their social status. To keep up with the ever richer Joneses, the middle class substitutes status-enhancing houses for status-neutral consumption. These houses are mortgage-financed, creating a debt boom across the income distribution. Using a stylized model we show analytically that aggregate debt increases as top incomes rise. In a quantitative general equilibrium model we show that Keeping up with the Joneses and rising income inequality generate 60% of the observed boom in mortgage debt and 50% of the house price boom. We compare this channel to two competing mechanisms. The Global Saving Glut hypothesis gives rise to a similar debt boom, but does not generate a house prices boom. Loosening collateral constraints does not generate booms in either debt or house prices. Finally, we provide novel empirical evidence on the relationship between top incomes and household debt. Mortgage debt rose substantially more in US states that experienced stronger growth in top incomes. There is no such relationship between top incomes and non-mortgage debt. These findings support to the importance of the comparisons channel. |
| Keywords: | mortgages, housing boom, social comparisons, consumption networks, keeping up with the Joneses |
| JEL: | D14 D31 E21 E44 E70 R21 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2020_159v2&r=all |
| By: | Rodríguez-Pose, Andrés; Ketterer, Tobias |
| Abstract: | This paper assesses whether both the levels and the degree of change in government quality influence regional economic performance in the European Union and, in particular, in its lagging regions. The results of the econometric analysis, covering 249 NUTS-2 regions for the period 1999–2013, suggest that (1) government quality matters for regional growth; (2) relative improvements in quality of government are a powerful driver of development; (3) one-size-fits-all policies for lagging regions are not the solution; (4) government quality improvements are essential for low-growth regions; and (5) in low-income regions basic endowment shortages are still the main barrier to development. In particular, low-growth regions in Southern Europe stand to benefit the most from improvements in government quality, while in low-income regions of Central and Eastern Europe, investments in the traditional drivers of growth remain the main factors behind successful economic trajectories. |
| Keywords: | economic growth; government quality; institutional change; regions; EU |
| JEL: | N0 |
| Date: | 2019–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:100721&r=all |
| By: | Kauhanen, Antti (ETLA - The Research Institute of the Finnish Economy); Maczulskij, Terhi (ETLA - The Research Institute of the Finnish Economy); Riukula, Krista (ETLA - The Research Institute of the Finnish Economy) |
| Abstract: | This paper analyses the heterogeneous effects of the decentralization of collective bargaining on the incidence of wage increases and wage dispersion in Finland. We use linked employer-employee panel data for the 2005-2013 period, which includes major changes in bargaining systems and economic conditions. Our regression results from models with high-dimensional individual and firm fixed effects show that decentralized bargaining leads to very different outcomes for blue- and white-collar employees. Decentralized bargaining decreases wage dispersion among blue-collar employees and slightly increases it among white-collar employees. Decentralization also affects the incidence of wage increases differently for blue- and white-collar employees. We argue that these differences reflect the different preferences of the employee groups. We also show that the fallback option in local negotiations affects the decentralization outcomes. |
| Keywords: | decentralization, collective agreements, wage bargaining, wage increase, wage dispersion |
| JEL: | J31 J51 J52 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp13867&r=all |
| By: | Moritz Drechsel-Grau; Fabian Greimel |
| Abstract: | We evaluate the hypothesis that rising inequality was a causal source of the US household debt boom since 1980. The mechanism builds on the observation that households care about their social status. To keep up with the ever richer Joneses, the middle class substitutes status-enhancing houses for status-neutral consumption. These houses are mortgage-financed, creating a debt boom across the income distri- bution. Using a stylized model we show analytically that aggregate debt increases as top incomes rise. In a quantitative general equilibrium model we show that Keeping up with the Joneses and rising income inequality generate 60% of the observed boom in mortgage debt and 50% of the house price boom. We compare this channel to two competing mechanisms. The Global Saving Glut hypothesis gives rise to a similar debt boom, but does not generate a house prices boom. Loosening collateral constraints does not generate booms in either debt or house prices. |
| Keywords: | mortgages, housing boom, social comparisons, consumption networks, keeping up with the Joneses |
| JEL: | D14 D31 E21 E44 E70 R21 |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2020_159v1&r=all |
| By: | Tommaso Agasisti (Politecnico di Milano); Cristian Barra (Università di Salerno); Roberto Zotti (Università di Torino) |
| Abstract: | This paper contributes to the empirical literature on the linkages between decentralized government spending, public finances, and economic growth at the local level. The impact of local government spending on output growth is estimated using a panel of Italian Labor Market Areas - a group of municipalities adjacent to each other, geographically and statistically comparable, characterized by common commuting ows of the working population - during the 2002-2012 period. The attention is focused both on current and capital expenditures as well as on several spending categories. To handle endogeneity problems between public spending and economic development, a system generalized method of moments has been used. The findings indicate a fairly robust negative relationship between local current government expenditure and economic growth. Investment in capital budget turns out to be not statistically significant when the public spending composition is taken into account. Municipalities located in central-southern regions show, instead, negative growth effect of capital spending, underlining the importance of measuring the efficiency of public spending rather than just being concerned with the absolute level of output. Only few of the expenditure categories (Justice, Tourism and Culture) exhibit positive effects on growth, while Administration & Management and Roads & Transportation have negative growth effect in southern regions. |
| Keywords: | Government size, fiscal decentralization, local expenditures, growth |
| JEL: | H11 H72 O43 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipu:wpaper:99&r=all |
| By: | Klein, Gordon |
| Abstract: | I analyze a quasi-natural experiment of fiber broadband rollout in a rural German area. The analysis particularly investigates the impact on real estate values. I find that there are strong and significant effects of fiber broadband deployment. These indicate that there are relevant personal benefits from broadband deployment for customers. Therefore, the findings add to the literature of evaluation of broadband infrastructure investment. |
| Keywords: | Broadband Internet,Real Estate Values,Quasi-natural experiment,Treatment Evaluation |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cawmdp:122&r=all |
| By: | Cortinovis, Nicola; Crescenzi, Riccardo; Van Oort, Frank |
| Abstract: | This paper investigates the link between multinational enterprises (MNEs) and employment in their host regions by cross-fertilizing the literature on MNE externalities with the emerging body of research on industrial relatedness. The link between employment and MNE presence in the same and related industries is tested for European regions. The results suggest that cross-sectoral MNE spillovers are mediated through industrial relatedness and that they are positively and significantly associated with higher employment levels, independently of input-output relations. Our results indicate that regions characterized by lower factor prices are likely to benefit the most from the presence of multinationals in terms of employment, but these benefits are concentrated in high knowledge-intensive sectors, potentially fostering inequalities within less developed economies. |
| Keywords: | employment; foreign direct investment; relatedness; Europe; regions; 639633-MASSIVE-ERC-2014-STG) |
| JEL: | O33 F22 |
| Date: | 2020–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:104063&r=all |
| By: | OECD |
| Abstract: | This paper explores and classifies some of the most common policy options adopted by national, regional and local policy makers in the context of or prior to the COVID-19 pandemic to enable, encourage and make the most of teleworking. It also considers efforts to foster the attraction and retention of remote workers and entrepreneurs in particular places. The current crisis represents, among other things, a mass experiment in teleworking, unprecedented in size and scope. A shift towards large-scale, long-lasting teleworking would have profound implications for the geography of local employment. However, SMEs may be less equipped than larger firms to face this change. Public policy can play an important role in turning teleworking into an opportunity for all, to minimise the potential of widening pre-existing disparities between people, places and firms. |
| Keywords: | future of work, geography of jobs, local employment, SMEs, teleworking |
| JEL: | J28 J62 J68 J88 R11 |
| Date: | 2020–11–17 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaaa:2020/10-en&r=all |
| By: | Asma Benhenda (Centre for Education Policy and Equalising Opportunities, UCL Institute of Education, University College London) |
| Abstract: | Prime Minister Boris Johnson announced on June 29, 2020 a 10-year investment program for upgrades and refurbishments in English schools. This rebuilding programme is set to start in 2020-21 with the first 50 projects supported by £1 billion in funding. It aims at improving pupils' outcomes and reducing inequalities, as part of the government 'levelling up' agenda. The Prime Minister said "as we bounce back from the pandemic, it’s important we lay the foundations for a country where everyone has the opportunity to succeed, with our younger generations front and centre of this mission". What impact can we expect on pupils' outcomes? This briefing note summarises the empirical evidence on the relationship between pupils’ outcomes and capital investment in schools. To what extent do better school facilities translate into better pupil outcomes? First, it examines the recent international evidence, mostly focused on the United States, which finds, overall, positive effects. Second, it highlights the lack of evidence on school rebuilding and refurbishing programmes in England. |
| Keywords: | pupil attainment; school funding |
| JEL: | I20 I24 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:ucl:cepeob:10&r=all |
| By: | Rodríguez-Pose, Andrés; Ganau, Roberto; Maslauskaite, Kristina; Brezzi, Monica |
| Abstract: | This paper examines the relationship between credit constraints - proxied by the investment-to-cash flow sensitivity – and firm-level economic performance - defined in terms of labor productivity – during the period 2009-2016, using a sample of 22,380 manufacturing firms from 11 European countries. It also assesses how regional institutional quality affects productivity at the level of the firm both directly and indirectly. The empirical results highlight that credit rationing is rife and represents a serious barrier for improvements in firm-level productivity and that this effect is far greater for micro and small than for larger firms. Moreover, high-quality regional institutions foster productivity and help mitigate the negative credit constraints-labor productivity relationship that limits the economic performance of European firms. Dealing with the European productivity conundrum thus requires greater attention to existing credit constraints for micro and small firms, although in many areas of Europe access to credit will become more effective if institutional quality is improved. |
| Keywords: | credit constraints; labor productivity; manufacturing firms; regional institutions; cross-country analysis; Europe |
| JEL: | C23 D24 G32 H41 R12 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:107500&r=all |
| By: | Karin Edmark; Lovisa Persson |
| Abstract: | This paper provides a comprehensive study on how attending a Swedish independent upper secondary school, instead of a public school, affects students’ academic and short-term post-secondary outcomes. We apply two estimation methods to data on upper secondary applicants: 1) A value-added model (VAM), where we, in addition to detailed student background characteristics, also control for student preferences for independent provision, as stated in the application forms. 2) A regression-discontinuity (RD) estimation around admission cutoffs to independent versus public schools. As the RD-results are overall too imprecise to provide much guidance, they are presented in an appendix to the paper. The more precisely estimated results using VAM suggest a positive independent school effect on: final GPA, test results in English and Swedish, the likelihood of graduating on time, and attending post-secondary education. We however also find indications of more lenient grading practices among independent schools, and we cannot rule out that all of the independent school advantage reflects more generous grading standards. Results from a school level analysis reveals that the average independent school impact masks substantial variation. Notably, schools with a higher share of qualified teachers tend to exhibit smaller GPA-gains, but also show signs of adhering to stricter grading standards. |
| Keywords: | private provision, mixed markets, voucher school reform, upper secondary education |
| JEL: | H44 I21 I26 I28 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8680&r=all |
| By: | Edmark, Karin (SOFI, Stockholm University); Persson, Lovisa (Research Institute of Industrial Economics (IFN)) |
| Abstract: | This paper provides a comprehensive study on how attending a Swedish independent upper secondary school, instead of a public school, affects students’ academic and short-term post-secondary outcomes. We apply two estimation methods to data on upper secondary applicants: 1) A value-added model (VAM), where we, in addition to detailed student background characteristics, also control for student preferences for independent provision, as stated in the application forms. 2) A regression-discontinuity (RD) estimation around admission cutoffs to independent versus public schools. As the RD-results are overall too imprecise to provide much guidance, they are presented in an appendix to the paper. The more precisely estimated results using VAM suggest a positive independent school effect on: final GPA, test results in English and Swedish, the likelihood of graduating on time, and attending post-secondary education. We however also find indications of more lenient grading practices among independent schools, and we cannot rule out that all of the independent school advantage reflects more generous grading standards. Results from a school level analysis reveals that the average independent school impact masks substantial variation. Notably, schools with a higher share of qualified teachers tend to exhibit smaller GPA-gains, but also show signs of adhering to stricter grading standards. |
| Keywords: | Private provision; Mixed markets; Voucher school reform; Upper secondary education |
| JEL: | H44 I21 I26 I28 |
| Date: | 2020–11–24 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1371&r=all |
| By: | OECD |
| Abstract: | This paper offers an in-depth analysis of the characteristics of innovative start-up firms in Trentino, a high-income mountainous area in the North East of Italy. This work is part of a series of thematic papers on regional start-up landscapes in Italy, produced by the OECD Trento Centre for Local Development. Following the 2018 OECD Evaluation of the Italian Start-up Act, which embraced a national perspective, it represents a first attempt to analyse the impact of this policy at the local level. Among Italian regions, Trentino boasts the highest density of registered innovative start-ups over all young firms established locally. However, innovative start-ups spread unevenly throughout this territory, concentrating in urban areas. Female and young founders are less prevalent than in Italy at large. Firm dynamism, in particular high-growth and exit trends, the uptake of emerging technologies among local start-ups as well as their propensity to use national incentives are other key areas of this work, which concludes with a set of evidence-based recommendations for policy makers. |
| Keywords: | artificial intelligence, entrepreneurship, firm dynamism, innovation, local development, policy adoption, start-up |
| JEL: | D22 L26 M13 O38 R12 |
| Date: | 2020–11–17 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaaa:2020/09-en&r=all |
| By: | Phil Goodwin |
| Abstract: | This paper discusses the main trends of car use and travel demand, as well as changes in policy responses and attitudes to managing the growth in urban traffic. It highlights the importance of orienting transport policies towards broader objectives beyond efficiency of congestion relief. Such a comprehensive set of objectives would include improvements in health, air quality, active travel activity, human well-being, as well as accessibility and fairness. |
| Date: | 2020–10–28 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaab:2020/27-en&r=all |
| By: | Andrew F. Haughwout; Donghoon Lee; Joelle Scally; Wilbert Van der Klaauw |
| Abstract: | Today, the New York Fed’s Center for Microeconomic Data reported that total household debt balances increased slightly in the third quarter of 2020, according to the latest Quarterly Report on Household Debt and Credit. This increase marked a reversal from the modest decline in the second quarter of 2020, a downturn driven by a sharp contraction in credit card balances. In the third quarter, credit card balances declined again, even as consumer spending recovered somewhat; meanwhile, mortgage originations came in at a robust $1.049 trillion, the highest level since 2003. Many of the efforts to stabilize the economy in response to the COVID-19 crisis have focused on consumer balance sheets, both through direct cash transfers and through forbearances on federally backed debts. Here, we examine the uptake of forbearances on mortgage and auto loans and its impact on their delinquency status and the borrower’s credit score. This analysis, as well as the Quarterly Report on Household Debt and Credit, is based on anonymized Equifax credit report data. |
| Keywords: | household finance; Consumer Credit Panel (CCP); CARES Act; forbearance |
| JEL: | D14 |
| Date: | 2020–11–17 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednls:89057&r=all |
| By: | Brian Feld (Universidad EAFIT); AbdelRahman Nagy (J-PAL); Adam Osman (University of Illinois at Urbana-Champaign) |
| Abstract: | Understanding jobseeker preferences, including their reservation wages and how much they value different non-wage amenities, is difficult because these parameters are not directly observable. We run an experiment at a job matching center in which we test four different methods for estimating these parameters. We find large and important differences between the methods, with the method most commonly used in household and labor force surveys - open ended questions - performing worst, and a short set of discrete choices performing best. We then use the data to estimate job seekers’ valuations of different job attributes and explore how valuations differ by job seeker characteristics such as gender, education and duration of unemployment. Among other findings, we show that in our sample of jobseekers in Egypt, women are more sensitive to long commutes and value flexible schedules more than men. These finds have important implications for researchers who use and collect data on reservation wages and for policymakers and employers who aim to decrease matching frictions. |
| Date: | 2020–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:erg:wpaper:1414&r=all |
| By: | Shaun Markham (Reserve Bank of New Zealand) |
| Abstract: | This Analytical Note examines the effects of monetary policy on New Zealand’s regional labour markets. Unemployment rates differ between regions, which raises the question of monetary policy’s possible contribution to these differences. Our analysis suggests monetary policy has different impacts on unemployment depending on the region. Some regions, such as Waikato, Manawatu/Wanganui and the upper South Island, appear to be more sensitive to monetary policy than others. Future research will investigate the reasons driving these regional differences, which may include the mix of industry, demography or other factors. |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:nzb:nzbans:2020/08&r=all |
| By: | Ge, S. |
| Abstract: | This paper uses extensive text data to construct firms' links via which local shocks transmit. Using the novel text-based linkages, I estimate a heterogeneous spatial-temporal model which accommodates the contemporaneous and dynamic spillover effects at the same time. I document a considerable degree of local risk spillovers in the market plus sector hierarchical factor model residuals of S&P 500 stocks. The method is found to outperform various previously studied methods in terms of out-of-sample fit. Network analysis of the spatial-temporal model identifies the major systemic risk contributors and receivers, which are of particular interest to microprudential policies. From a macroprudential perspective, a rolling-window analysis reveals that the strength of local risk spillovers increases during periods of crisis, when, on the other hand, the market factor loses its importance. |
| Keywords: | Excess co-movement, weak and strong cross-sectional dependence, local risk spillovers, networks, textual analysis, big data, systemic risk, heterogeneous spatial auto-regressive model (HSAR) |
| JEL: | C33 C58 G10 G12 |
| Date: | 2020–11–26 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:20115&r=all |
| By: | Gian Maria Campedelli; Serena Favarin; Alberto Aziani; Alex R. Piquero |
| Abstract: | Recent studies exploiting city-level time series have shown that, around the world, several crimes declined after COVID-19 containment policies have been put in place. Using data at the community-level in Chicago, this work aims to advance our understanding on how public interventions affected criminal activities at a finer spatial scale. The analysis relies on a two-step methodology. First, it estimates the community-wise causal impact of social distancing and shelter-in-place policies adopted in Chicago via Structural Bayesian Time-Series across four crime categories (i.e., burglary, assault, narcotics-related offenses, and robbery). Once the models detected the direction, magnitude and significance of the trend changes, Firth's Logistic Regression is used to investigate the factors associated to the statistically significant crime reduction found in the first step of the analyses. Statistical results first show that changes in crime trends differ across communities and crime types. This suggests that beyond the results of aggregate models lies a complex picture characterized by diverging patterns. Second, regression models provide mixed findings regarding the correlates associated with significant crime reduction: several relations have opposite directions across crimes with population being the only factor that is stably and positively associated with significant crime reduction. |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2011.05658&r=all |
| By: | Rodríguez-Pose, Andrés; Burlina, Chiara |
| Abstract: | This paper examines the uneven geography of COVID-19-related excess mortality during the first wave of the pandemic in Europe, before assessing the factors behind the geographical differences in impact. The analysis of 206 regions across 23 European countries reveals a distinct COVID-19 geography. Excess deaths were concentrated in a limited number of regions —expected deaths exceeded 20% in just 16 regions— with more than 40% of the regions considered experiencing no excess mortality during the first six months of 2020. Highly connected regions, in colder and dryer climates, with high air pollution levels, and relatively poorly endowed health systems witnessed the highest incidence of excess mortality. Institutional factors also played an important role. The first wave hit regions with a combination of weak and declining formal institutional quality and fragile informal institutions hardest. Low and declining national government effectiveness, together with a limited capacity to reach out across societal divides, and a frequent tendency to meet with friends and family were powerful drivers of regional excess mortality. |
| Keywords: | Covid-19; pandemic; institutions; regions; Europe; coronavirus |
| JEL: | H75 R58 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:107499&r=all |
| By: | Michelle W. Bowman |
| Date: | 2020–11–19 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgsq:89074&r=all |
| By: | Felix Holub; Laura Hospido; Ulrich J. Wagner |
| Abstract: | We estimate the causal impact of air pollution on the incidence of sick leaves in a representative panel of employees affiliated to the Spanish social security system. Using over 100 million worker-by-week observations from the period 2005-2014, we estimate the relationship between the share of days an individual is on sick leave in a given week and exposure to particulate matter (PM10) at the place of residence, controlling for weather, individual effects, and a wide range of time-by-location controls. We exploit quasi-experimental variation in PM10 that is due to Sahara dust advection in order to instrument for local PM10 concentrations. We estimate that the causal effect of PM10 on sick leaves is positive and varies with respect to worker and job characteristics. The effect is stronger for workers with pre-existing medical conditions, and weaker for workers with low job security. Our estimates are instrumental for quantifying air pollution damages due to changes in labor supply. We estimate that improved ambient air quality in urban Spain between 2005 and 2014 saved at least €503 million in foregone production by reducing worker absence by more than 5.55 million days. |
| Keywords: | air pollution, health, sickness insurance, labor supply |
| JEL: | I12 I13 Q51 Q53 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2020_241&r=all |
| By: | Tamás Keller (Computational Social Science - Research Center for Educational and Network Studies, Centre for Social Sciences. 1097 Budapest, Tóth Kálmán utca 4. and Institute of Economics, Centre for Economic and Regional Studies. 1097 Budapest, Tóth Kálmán utca 4.); Hubert János Kiss (Institute of Economics, Centre for Economic and Regional Studies. 1097 Budapest, Tóth Kálmán utca 4. and Department of Economics, Corvinus University of Budapest. 1093 Budapest Fõvám tér 8.); Szabolcs Számadó (Department of Sociology and Communication, Budapest University of Technology and Economics. 1111 Budapest, Egry J. u. 1. E.71. and Computational Social Science - Research Center for Educational and Network Studies, Centre for Social Sciences. 1097 Budapest, Tóth Kálmán utca 4. and Evolutionary Systems Research Group, Centre for Ecological Research) |
| Abstract: | We contribute to the experimental literature on primary school students’ cheating behavior by studying i) how cheating is influenced by ego depletion; ii) how it correlates with different individual factors. We carried out a large-scale, pre-registered experiment in the field of 28 Hungarian primary schools (126 classrooms) on a voluntary subsample of 1,143 students at grade levels 4 to 8. Students’ cheating behavior was measured by the incentivized dice-roll experiment. We find suggestive evidence that our light-touch treatment on ego-depletion increased students’ deceptive behavior. Cheating behavior correlated weakly with students’ individual characteristics. In a multivariate context controlling for between-classroom differences, we document that students’ cognitive ability correlated negatively, while their age positively, with their cheating behavior. We found students’ social context (their classroom belonging) as a more decisive determinant of students’ cheating behavior than individual characteristics. |
| Keywords: | honesty, cheating, individual factors, ego depletion, dice-roll exercise, pre-registered experiment |
| JEL: | A13 C91 D91 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:has:discpr:2048&r=all |
| By: | Sisira Jayasuriya; I Wayan Sukadana; Chris Manning; Luh Gede Meydianawathi |
| Abstract: | Tourism now dominates the regional economy of Bali, and its direct economic benefits are demonstrably large. However, Bali’s tourism focused development strategy has been criticized for some of its social, cultural and environmental effects, and for potentially hampering sustainable long-term growth through ‘Dutch disease’ effects of tourism boom on other more dynamic tradable sectors, particularly manufacturing. In this paper, we discuss the economic effects of tourism on overall growth, structural change, employment and wages, household and spatial distributional effects, and potential for technological change and longer-term growth. We show that tourism has promoted a complex web of interactions with other industries, and contributed to rapid structural change, skills development and the widespread dissemination and application of information technology. We contend that the application of the conventional Dutch disease model can be misleading in assessing the economic impact of tourist growth in Bali. It is important to recognize that (a) Bali is a regional economy within the much larger national economy of Indonesia, with high levels of integration in both factor (including labour) and product markets, and (b) tourism is a very dynamic export industry, operating in a highly competitive and rapidly changing international market, and requiring increasingly sophisticated managerial and entrepreneurial skills. While many of the negative socio-cultural and environmental effects are serious and must be addressed through appropriate regulatory regimes, they are not very different from effects seen in other economies undergoing rapid growth. Our overall assessment is that tourism, based on Bali’s natural, cultural and economic endowments, is a viable alternative to labour-intensive industrialization and demonstrates that ‘services based growth strategy’ can be quite appropriate in some circumstances. |
| Keywords: | Bali, Indonesia, growth, structural change, tourism, Dutch Disease |
| JEL: | F15 J62 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:pas:papers:2020-01&r=all |
| By: | Roman Römisch (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | This paper asks whether we can, from an economic point of view, justify the EU Cohesion Policy. To this end, our research – using structural equation modelling, macro-economic modelling and regional input-output analysis – found a) positive dynamic effects of Cohesion Policy on regional growth, b) small static effects on output if parts of the Cohesion Policy funds are reallocated to the strongest EU economies and c) strong demand spillovers from the less-developed to the more-developed regions. For us, the dynamic Cohesion Policy gains in growth outweigh the static allocation inefficiency. Additionally, the spillovers from the less-developed regions mitigate potential losses in the more-developed regions. Therefore, our answer to the question ‘Can we justify EU Cohesion Policy from an economic point of view?’ is ‘Yes, we can.’ |
| Keywords: | Cohesion Policy, EU regions, regional development |
| JEL: | R11 R58 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:wii:pnotes:pn:42&r=all |
| By: | Agasisti, Tommaso; Barra,Cristian; Zotti, Roberto (University of Turin) |
| Abstract: | This paper contributes to the empirical literature on the linkages between decentralized government spending, public finances, and economic growth at the local level. The impact of local government spending on output growth is estimated using a panel of Italian Labor Market Areas - a group of municipalities adjacent to each other, geographically and statistically comparable, characterized by common commuting ows of the working population - during the 2002-2012 period. The attention is focused both on current and capital expenditures as well as on several spending categories. To handle endogeneity problems between public spending and economic development, a system generalized method of moments has been used. The findings indicate a fairly robust negative relationship between local current government expenditure and economic growth. Investment in capital budget turns out to be not statistically significant when the public spending composition is taken into account. Municipalities located in central-southern regions show, instead, negative growth e ect of capital spending, underlining the importance of measuring the efficiency of public spending rather than just being concerned with the absolute level of output. Only few of the expenditure categories (Justice, Tourism and Culture) exhibit positive effects on growth, while Administration & Management and Roads & Transportation have negative growth effect in southern regions. |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:202022&r=all |
| By: | Caria, Stefano (University of Bristol); Franklin, Simon (Queen Mary, University of London); Witte, Marc (IZA) |
| Abstract: | We study how active labor market policies affect the exchange of information and support among jobseekers. Leveraging a unique social network survey in Ethiopia, we find that a randomized job-search assistance intervention reduces information sharing and support between treated jobseekers and their active job-search partners. Due to lower job-search support, untreated individuals search less and, suggestively, have worse employment outcomes. These results are explained by a model of networks where unemployed individuals form job-search partnerships to exploit the complementarities of job search. These partnerships are broken if policy creates inequality in the access to information about job vacancies. |
| Keywords: | job search, social networks, RCT, active labor market policies |
| JEL: | D85 L14 O12 J64 D8 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp13857&r=all |
| By: | Kimberlin Butler; Kristin Hallgren; Alexandra Resch |
| Abstract: | This discussion guide, produced in partnership with the Funder & Evaluator Affinity Network, helps funders and evaluators anticipate and overcome common barriers to knowledge sharing about the findings of an evaluation. |
| Keywords: | philanthropy, evaluation, knowledge sharing, evaluators, equitable evaluation |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:15597f46b2b24e778f4b442bf2f11298&r=all |
| By: | Syed M. Ahsan |
| Abstract: | The idea of proportional representation has been circulating for over two hundred years and is widely practiced, among other, in post-war Europe. The primary focus is to allow smaller parties, minorities and other disenfranchised groups in society systematic representation in the national legislature. This paper proposes a novel idea of jurisdictional-level proportionality specifically targeted at federal systems. Emphasising the primacy of jurisdictions (namely provinces and states) within a federation, we use data on the voting pattern in each such jurisdiction to determine the allocation of elected delegates (or electoral seats for that matter) that would be utilized in the eventual makeup of the ruling government. The proposed scheme is the simplest that we know of. All it requires is the record of all votes cast by individuals in favour of the candidate of their choice in a given constituency. Our design ensures that the mechanism encompass the governance virtues such as (a) inclusivity and stability of the elected government, (b) accountability of elected delegates and their interface with voters, and (c) and fully conform to the principle of proportionality. In the parliamentary mode, while it may tend to predict minority governments more often, it allows each major party a greater degree of freedom to forge a ruling coalition. When reviewing the US Presidential election, it appears that the outcome here may change too, typically in favour of the plurality winner of nation-wide popular votes, even though the seat arithmetic is based on proportional votes within each state in the union. |
| Keywords: | the agency problem, effective governance, gerrymandering, inclusive representation, jurisdictional representation, proportional representation, stable government |
| JEL: | D72 H77 I31 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8676&r=all |
| By: | Daniel Rakotomalala |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:tep:teppwp:wp20-06&r=all |
| By: | Aldén, Lina (Department of Economics and Statistic, Linnaeus University); Bastani, Spencer (Institute for Evaluation of Labor Market and Education Policy (IFAU), Uppsala); Hammarstedt, Mats (Linneaus University) |
| Abstract: | In this paper, we use a randomized field experiment in Sweden to investigate how self-employment experience is valued in the labor market. We find that self-employment experience negatively impacts the probability of receiving a positive response from employers. For male applicants, this holds regardless of their ethnic background, and independently of whether we consider applicants with experience solely from self-employment, or applicants with a mix of experience from wage-employment and self-employment. For female applicants, the results are less clear-cut. Our findings provide input into the discussion about the impact of self-employment on the chances for natives and immigrants to obtain wage-employment. |
| Keywords: | Self-employment; Wage-employment; Randomized experiment; Discrimination; Labor market outcomes |
| JEL: | J15 J24 J71 L26 |
| Date: | 2020–11–19 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1369&r=all |
| By: | Einmahl, John (Tilburg University, School of Economics and Management); Ferreira, Ana; de Haan, Laurens; Neves, C.; Zhou, C. |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutis:ae5818cd-f071-4275-9577-d7b816807429&r=all |
| By: | Augusto Cerqua (Department of Social Sciences and Economics, Sapienza University of Rome); Guido Pellegrini (Department of Social Sciences and Economics, Sapienza University of Rome) |
| Abstract: | Are place-based policies capable of taking lagging areas to a higher growth trajectory permanently? We answer this key question by investigating what happens when strongly subsidised regions suddenly experience a substantial reduction in external funding. We analyse an extensive database and estimate the average causal impact of exiting the convergence region status of the EU regional policy via the mean balancing approach, an econometric technique created appositely to fully exploit time-series cross-sectional data. Such an approach also allows us to investigate the heterogeneity of the impact concerning relevant covariates. We find that regions which experienced a considerable reduction in funding in a period of economic expansion did not suffer from the loss of such funding. On the other hand, we find that the sharp reduction in funding during the crisis led to a negative, but not statistically significant, impact on economic growth. However, the impact varies with the features of the regions and the local economic context. These findings differ from previous literature and signal a long-term positive effect of the EU funds on growth and employment. |
| Keywords: | Place-based policy, European Union, mean balancing, regional growth |
| JEL: | C23 O47 R11 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:saq:wpaper:20/20&r=all |
| By: | Ropertz, Henry |
| Keywords: | Public Economics |
| Date: | 2020–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cantrf:305940&r=all |
| By: | Eileen Divringi; Davin Reed |
| Abstract: | COVID-19 and associated economic shutdowns have led to unprecedented job losses, with up to 20 million households and 24 million individuals experiencing an unemployment spell between March 2020 and August 2020.1 The scale of these losses, their disproportionate impact on lower-income workers, and the uncertain timeline of economic recovery have raised concerns about the ability of households to maintain rent payments while out of work. |
| Date: | 2020–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedpcd:89006&r=all |