nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2021‒01‒18
sixty papers chosen by
Steve Ross
University of Connecticut

  1. Migration Shocks and Housing: Short-Run Impact of the Syrian Refugee Crisis in Jordan By Alhawarin, Ibrahim; Assaad, Ragui; Elsayed, Ahmed
  2. Commuting in Europe: An Inter-regional Analysis on its Determinants and Spatial Effects By Castelli, Chiara; Parenti, Angela
  3. Demographics and the Housing Market: Japan’s Disappearing Cities By Yuko Hashimoto; Gee Hee Hong; Xiaoxiao Zhang
  4. Regional Availability of Post-compulsory Education and Schooling Choices By Virtanen, Hanna; Riukula, Krista
  5. Frictional Spatial Equilibrium By Benoît Schmutz; Modibo Sidibé
  6. Reducing socio-economic differences between municipalities in Israel By Gabriel Machlica
  7. Regional development in Lithuania: A tale of two economies By Hansjörg Blöchliger; Roland Tusz
  8. CAN FOUNDATIONAL ECONOMY SAVE REGIONS IN CRISIS? By Mikhail Martynovich; Teis Hansen; Karl-Johan Lundquist; ;
  9. Weighing Down America: 2020 Update A Community Approach against Obesity By Lopez, Claude; Bendix, Joseph
  10. This Town Ain't Big Enough? Quantifying Public Good Spillovers By Nicolas Jannin; Aurelie Sotura
  11. Roads to innovation: evidence from Italy By Bottasso, Anna; Conti, Maurizio; Robbiano, Simone; Santagata, Marta
  12. Determinants of intra urban mobility: A study of Bengaluru By Shivakumar Nayka; Kala Seetharam Sridhar
  13. Are Neighborhood Effects Explained by Differences in School Quality? By Wodtke, Geoffrey T; Yildirim, Ugur; Harding, David J; Elwert, Felix
  14. The Making and Consolidation of the First National Trademark System: Diffusion of Trademarks across Spanish Regions (1850–1920) By Patricio Saiz; Jose Luis Zofio; ; ;
  15. Teleworking from a near-home shared office in Mexico City -A discrete choice experiment on office workers By Lara-Pulido, José Alberto; Martinez-Cruz, Adan
  16. Forward to the Past: Short-Term Effects of the Rent Freeze in Berlin By Hahn, Anja M.; Kholodilin, Konstantin A.; Waltl, Sofie R.
  17. Diffusion of E-Commerce and Retail Job Apocalypse: Evidence from Credit Card Data on Online Spending By Chun, Hyunbae; Joo, Hailey Hayeon; Kang, Jisoo; Lee, Yoonsoo
  18. The effect of grade retention on secondary school dropout: Evidence from a natural experiment By Ferreira Sequeda, Maria
  19. The Effect of Access to Post-Compulsory Education: Evidence from Structural Breaks in School Supply By Virtanen, Hanna; Riukula, Krista
  20. Why are some U.S. cities successful, while others are not? Empirical evidence from machine learning By Damien Azzopardi; Fozan Fareed; Patrick Lenain; Douglas Sutherland
  21. Paraísos Fiscales, Wealth Taxation, and Mobility By David R. Agrawal.; Dirk Foremny; Clara Martinez-Toledano
  22. High-Ability Influencers? The Heterogeneous Effects of Gifted Classmates By Balestra, Simone; Sallin, Aurélien; Wolter, Stefan C.
  23. When the Great Equalizer Shuts Down: Schools, Peers, and Parents in Pandemic Times By Agostinelli, Francesco; Doepke, Matthias; Sorrenti, Giuseppe; Zilibotti, Fabrizio
  24. Hops, Skip & a Jump: The Regional Uniqueness of Beer Styles By Ryan M. Hynes; Bernardo S. Buarque; Ronald B. Davies; Dieter F. Kogler;
  25. Do research universities boost regional economic development? - Evidence from China By Chu, Shuai; Liu, Xiangbo
  26. Housing By Paul Cheshire; Christian Hilber
  27. Understanding the Racial and Income Gap in COVID-19: Public Transportation and Home Crowding By Rajashri Chakrabarti; Maxim L. Pinkovskiy
  28. Cities, Productivity, and Trade By Alvaro Garcia Marin; Andrei V. Potlogea; Nico Voigtländer; Yang Yang
  29. To change or not to change: the impact of the law on mortgage origination By Ana Isabel Sá
  30. Spatial and Externality Determinants of Co-operatives and their Growth Dynamics in Morocco By Adil Outla; Koraich Almahdi; Moustapha Hamzaoui
  31. Housing Finance in the CEMAC Region By World Bank Group
  32. Bumps in the Road By John Graham
  33. Analysing the spatio-temporal diffusion of economic change - advanced statistical approach and exemplary application By Sven Wardenburg; Thomas Brenner
  34. Extractive Industries, Price Shocks and Criminality By Sebastian Axbard; Anja Benshaul-Tolonen; Jonas Poulsen
  35. Understanding the Racial and Income Gap in COVID-19: Social Distancing, Pollution, and Demographics By Rajashri Chakrabarti; Lindsay Meyerson; Maxim L. Pinkovskiy
  36. Territorial Development in Argentina By World Bank
  37. The Local Impact of University Decentralization in France By Paul Charruau
  38. Non-US global banks and dollar (co-)dependence: how housing markets became internationally synchronized By Torsten Ehlers; Mathias Hoffmann; Alexander Raabe
  39. What policies for the hydrogen sector ? Lessons from city buses By Guy Meunier; Jean-Pierre Ponssard
  40. Trauma at School: The Impacts of Shootings on Students' Human Capital and Economic Outcomes By Cabral, Marika; Kim, Bokyung; Rossin-Slater, Maya; Schnell, Molly; Schwandt, Hannes
  41. People, Places and Politics By Henry G. Overman
  42. Effects of parental health shocks on children’s school achievements: A register-based population study By Skovrider Aaskoven, Maiken; Kjær, Trine; Gyrd-Hansen, Dorte
  43. MStatistical Discrimination in a Search Equilibrium Model: Racial Wage and Employment Disparities in the US By Linas Tarasonis; Bruno Decreuse
  44. We zoned for density and got higher house prices: Supply and price effects of upzoning over 20 years By Murray, Cameron; Limb, Mark
  45. Anatomy of a techno-creative community : the role of places and events in the emergence of videomapping in Nantes By Etienne Capron; Dominique Sagot-Duvauroux; Raphaël Suire
  46. Uniform Admissions, Unequal Access: Did the Top 10% Plan Increase Access to Selective Flagship Institutions? By Cortes, Kalena E.; Klasik, Daniel
  47. Housing Search Methods and Residential Satisfaction By Hiroaki Niikura; Michio Naoi; Miki Seko
  48. Electric Buses By John Graham
  49. An Extra Hour Wasted? Bar Closing Hours and Traffic Accidents in Norway By Green, Colin P.; Krehic, Lana
  50. Urban Transport in Mandalay By World Bank
  51. Urban Transport in Yangon and Mandalay By World Bank
  52. The Social Side of Early Human Capital Formation: Using a Field Experiment to Estimate the Causal Impact of Neighborhoods By List, John A.; Momeni, Fatemeh; Zenou, Yves
  53. The Costs of Employment Segregation: Evidence from the Federal Government under Wilson By Aneja, Abhay; Xu, Guo
  54. Interregional Contact and National Identity By Bagues, Manuel; Roth, Christopher
  55. Consequences of a Massive Refugee Influx on Firm Performance and Market Structure By Akgündüz, Yusuf Emre; Bağır, Yusuf Kenan; Cilasun, Seyit Mümin; Kirdar, Murat G.
  56. Do role models increase student hope and effort? Evidence from India By Prateek Chandra Bhan
  57. Information, Preferences, and Household Demand for School Value Added By Ainsworth, Robert; Dehejia, Rajeev; Pop-Eleches, Cristian; Urquiola, Miguel
  58. Elderly's Mobility to and from Work in the US: Metropolitan Status and Population Size By Gimenez-Nadal, J. Ignacio; Molina, José Alberto; Velilla, Jorge
  59. Identity and Labor Market Outcomes of Immigrants By Carillo, Maria Rosaria; Lombardo, Vincenzo; Venittelli, Tiziana
  60. Social Distancing during a Pandemic: The Role of Friends By Michael Bailey; Drew Johnston; Martin Koenen; Theresa Kuchler; Dominic Russel; Johannes Stroebel

  1. By: Alhawarin, Ibrahim (Al-Hussein Bin Talal University); Assaad, Ragui (University of Minnesota); Elsayed, Ahmed (IZA)
    Abstract: This paper investigates the impact of migration shocks on housing conditions and rental prices for the local population. The identification comes from the regional variation in the large influx of Syrian refugees to Jordan in the wake of the Syrian conflict which started in 2011. Combining detailed household-level surveys with information on where Syrian refugees are concentrated, we employ a difference-in-difference approach and show that the influx had negative impacts on housing quality and increased the rents paid by local households. Residential mobility also increased in response to the flow of refugees, and this could have acted as a channel through which housing quality decreased and may have attenuated the impact on rents. The effects are more pronounced among poorer and less-educated households, those who are arguably in competition with refugees for housing.
    Keywords: migration, Syrian refugee crisis, housing, Jordan
    JEL: O18 R21 R23
    Date: 2020–12
  2. By: Castelli, Chiara; Parenti, Angela
    Abstract: Commuting shapes countless everyday-lives around the world, with dynamics varying from city to regional and cross regional level. Taking as reference the free-movement EU-28 area (plus Switzerland and Norway), the analysis considers a total sample of 195 NUTS2 regions over the decade 2007-2017 to depict regional cross-border dynamics, thus including the impacts of the 2008 financial crisis. The tested presence of spatial interactions among regions leads to the adoption of the Spatial Durbin Model in a panel context, thus including fixed effects in order to eliminate any time influence on variables as well as any regional idiosyncrasy (i.e. cultural, institutional etc.). The outcoming analysis highlights the potentiality of temporary contracts in preserving jobs during crisis, as they offer a flexible tool for employment adjustments. Moreover, the regional specialization in the knowledge sector is found to be an important attractor of external workers as well as a relatively effective retaining factor of the domestic labour force. But there are also other factors affecting mobility. For instance, the perceived commuting distance significantly depends on the time needed to reach the corresponding workplace and this study finds that the more diffused is the transportation system (in terms of highways’ density) the higher the commuting outflow. A similar impact is found with respect to housing costs, that is the cheaper is the relative house price of the region of residence with respect to the surrounding territories, the more travel-to-work becomes an attractive option, even in its extend of long-distance commute. Finally, a last strong push factor of mobility is found in the lack job opportunities, here expressed as the unemployment rate differential for each single territory with respect to its surroundings. Indeed, the higher the lack of job opportunities in the domestic market with respect to its neighbours, the higher the share of workers that will try to seek their fortune crossing the regional border.
    Keywords: Community/Rural/Urban Development
    Date: 2020–12–16
  3. By: Yuko Hashimoto; Gee Hee Hong; Xiaoxiao Zhang
    Abstract: How does a shrinking population affect the housing market? In this study, drawing on Japan’s experience, we find that there exists an asymmetric relationship between housing prices and population change. Due to the durability of housing structures, the decline in housing prices associated with population losses is estimated to be larger than the rise in prices associated with population increases. Given that population losses have been and are projected to be more acute in rural areas than urban areas in Japan, the on-going demographic transition in Japan could worsen regional disparities, as falling house prices in rural areas could intensify population outflows. Policy measures to promote more even population growth across regions, and avoid the over-supply of houses, are critical to stabilize house prices with a shrinking population.
    Keywords: Housing prices;Population and demographics;Housing;Population growth;Inflation;WP,house price,price,house
    Date: 2020–09–25
  4. By: Virtanen, Hanna; Riukula, Krista
    Abstract: Abstract School consolidations (school closures, mergers, and expansions) have become an increasingly popular policy measure across Western countries facing decreasing fertility, fiscal constraints, and increasing learning disparities. Reducing the regional availability of post-compulsory education may affect choices to participate in education or sorting of individuals across education tracks and schools. These decisions may have long-lasting effects on the schooling and career paths of individuals. Furthermore, school consolidations may increase the regional disparities in the availability of education and thus, introduce inequalities in human capital accumulation between individuals living in different regions. They may also boost differences in skill composition between regions. Research on the effects of school consolidations has concentrated almost exclusively on the effects of closing compulsory schools and the evidence on how closing secondary schools affects the local youth is limited. Our new study Virtanen and Riukula (2020) explores how reducing the regional supply of post-compulsory education affects schooling choices and educational attainment in Finland using both difference-in-differences and event study methods. We exploit variation across municipalities and over time in the availability of three secondary education tracks: general education, and the vocational fields of technology and services. According to our results, access to general education mainly affects decisions regarding what to study, whereas reducing the regional availability of vocational education also postpones studies and may even decrease the educational attainment of local youth. Our results also suggest that school consolidations may have a substantial impact on labor market trajectories. We find that the initial enrollment choices of men are more sensitive to supply reductions than those of women, and that the field of technology is particularly important for individuals with less-educated mothers.
    Keywords: School consolidation, Post-compulsory education, Vocational education, School choice, Student mobility, Education supply
    JEL: I2 I21 I24 H40 J24
    Date: 2021–01–11
  5. By: Benoît Schmutz (Ecole Polytechnique and CREST); Modibo Sidibé (Duke University)
    Abstract: This paper proposes a theory of cities based on a general equilibrium search and matching model where heterogeneous firms and workers continuously decide where to locate within a set of imperfectly connected local labor markets and engage in wage bargaining using both local and remote match opportunities as threat points. The model allows us to introduce the structural origins of workers’ sorting, firms’ selection and matching-based agglomeration economies into a unified framework and discuss their relationship with the city size distribution. Simulations show that power laws in city size do not require increasing returns to scale in matching or production, but may simply result from the combination of imperfect labor mobility, positive assortative matching between labor and capital, and agglomeration economies in the matching between workers and firms. By-products include sufficient statistics to identify sorting and agglomeration using city-level variation and a rationale for the geographic diversity of urban networks.
    Keywords: city size; local labor market; frictions; on-the-job search; migration
    JEL: R1 J2 J3 J6
    Date: 2021–01–04
  6. By: Gabriel Machlica
    Abstract: Despite being one of the smallest countries in the OECD, Israel is marked by significant socio-economic disparities, which have a clear spatial dimension. Ethnic and religious groups with weak socio-economic outcomes are not benefitting from the thriving high-tech sector in the centre of the country. As a result, there is a persistent lack of employment opportunities in the peripheral areas alongside skills shortages in the dynamic centre. Inequalities between municipalities are the highest in the OECD. Moreover, the current pandemic has hit poorer Haredi neighbourhoods particularly hard. The government should reduce barriers that prevent segments of the population from fully participating in the economic process and give everyone a similar chance to succeed, regardless of where he or she was born. This will require equal access to high-quality education, affordable housing, reasonable public transportation and improved urban planning in every municipality to reduce spatial divides and segregation of disadvantaged households. Local authorities can play a significant role, since good municipal government and effective policies to achieve national priorities are the best means to improve the outcomes of residents of poor areas.
    Keywords: education, fiscal decentralisation, housing, infrastructure, municipalities, regional inequality
    JEL: H52 H53 H54 H71 H72 O18 R11 R52 R58
    Date: 2020–12–22
  7. By: Hansjörg Blöchliger; Roland Tusz
    Abstract: Regional differences in GDP per capita, productivity, employment and poverty in Lithuania are among the largest in the OECD, and they have increased over the last decade. The country still recovers from the legacy of the Soviet planning system which aimed at balanced geographical distribution of industrial activity and left many unviable firms and jobs particularly in rural areas. Unemployment is high in many regions, while mobility of excess labour towards economically stronger areas remains insufficient. Some regions feature "surplus infrastructure", while others lack investment. This paper looks at potential reasons for persisting disparities and assesses recent policy initiatives to reduce them. Stark gaps in education outcomes between rural and urban areas should be addressed, mainly by reorganising the municipal school network and by fostering firm-based learning, i.e. apprenticeships. The digital infrastructure is weak in rural regions and should be strengthened to allow access to high-quality jobs in all parts of the country, including through teleworking. Housing supply in economically strong areas should be increased, while urban sprawl should be avoided. Finally, municipal governments should be given more fiscal power, while the planned functional regions should help foster inter-municipal coordination.
    Keywords: education, fiscal decentralisation, labour mobility, Lithuania, regional development, regional infrastructure, regional productivity
    JEL: D24 H70 I24 J24 J61 O31 J65
    Date: 2020–12–22
  8. By: Mikhail Martynovich; Teis Hansen; Karl-Johan Lundquist; ;
    Abstract: We perform an explorative analysis of employment patterns in the foundational economy producing mundane everyday necessities and providing welfare services across Swedish regional labour markets between 2007 and 2016. We focus specifically on hierarchical patterns in spatial distribution of foundational activities and their association – direct and through integration with other economic activities – with regional employment dynamics in times of crisis, recovery, and growth. Our findings suggest the foundational economy plays an important role as employment provider to a substantial number of Swedish workers, particularly in non-metropolitan regions. Besides, it appears to be associated with improved ability of regions to retain employment in the most acute phases of economic crisis, but only if it is well integrated into regional industrial profiles. However, its overall contribution to regional resilience in the long term appears to be rather limited.
    Keywords: foundational economy; everyday economy; employment; regional resilience; crisis; recovery; Sweden
    JEL: E32 J21 L16 R11 R12 R23
    Date: 2020–12
  9. By: Lopez, Claude; Bendix, Joseph
    Abstract: Obesity impacts segments of the US population differently based on their behavioral and socioeconomic profiles. The Milken Institute COVID-19 Community Explorer sorts US counties around eight profiles of communities that share common patterns across behavioral, economic, and social factors. This report uses these communities and identifies which of the 26 factors considered are systemically correlated with high obesity rates for each community. This report identifies three groups of factors that matter for a large part of the US population: • Social and behavioral factors, such as unemployment, excessive drinking, smoking, post-secondary education, and single-parent households, have the strongest association with obesity prevalence across all eight communities' profiles. • Urban-rural factors, including rurality, housing concerns, population density, metropolitan area, violent crime rate, and the number of fast-food establishments per 100,000 people, have the second strongest association with obesity prevalence across four communities, representing 78 percent of the US population. • The Black population factor has the third strongest association with obesity prevalence across four communities. These communities represent 61 percent of the US population. The analysis combines health, behavioral, economic, and social data sets and suggests that some aspects of the obesity epidemic would be better addressed at the local level, while others would benefit from a federal initiative. It also identifies factors for each community to consider when coordinating national and local authorities and other partners such as health-care professionals, business and community leaders, school, and child care. Finally, our analysis shows that the data sets collected need to be properly combined, processed, and analyzed to inform policy in a meaningful and actionable manner.
    Keywords: obesity, community, counties, cluster, machine learning,
    JEL: C8 I12 I14 I18
    Date: 2020–12
  10. By: Nicolas Jannin; Aurelie Sotura
    Abstract: Despite long-standing theoretical interest, empirical attempts at investigating the appropriate level of decentralization remain scarce. This paper develops a simple and flexible framework to test for the presence of public good spillovers between fiscally autonomous jurisdictions and to investigate potential welfare gains from marginal fiscal integration. We build a quantitative spatial equilibrium model with many local jurisdictions, mobile households and endogenous local public goods causing spillovers across jurisdictional boundaries. We show how one can exploit migration and housing price responses to shocks in local public goods at different geographic scales to reveal the intensity of spillovers. Applying our framework to the particularly fragmented French institutional setting, we structurally estimate the model using a unique combination of municipal administrative panel datasets. Estimation relies on plausibly exogenous variations in government subsidies to instrument changes in the supply of public goods. We find that public goods in a municipality account for 4--11\% of the local public good bundle enjoyed by its residents, and that public goods in each neighbor municipality account for an average 3.2--3.5\% of this bundle. Finally, we simulate the effect of a reform increasing fiscal integration and find substantial welfare gains.
    Keywords: Local Public Service, Spillover Effect, Spatial General Equilibrium, Tiebout, Welfare Economics, State Governments Subsidies
    JEL: D16 H41 H71 H72 H73 R13
    Date: 2020
  11. By: Bottasso, Anna; Conti, Maurizio; Robbiano, Simone; Santagata, Marta
    Abstract: In this study we leverage on the ancient Roman roads network as a source of exogenous variation in order to identify the causal effect of the modern highways network on innovation using Italian NUTS-3 regional data. Our results suggest that a 10 percent increase in the highways stock in a region causes an increase in the number of patents of about 2-3 percent over a five years period. We document that this positive effect on innovation might in part be explained by a reduction in travel costs that foster collaborations between inventors living in different regions. We also find that the innovation enhancing effect of highways declines over time, possibly because of the introduction of ICT, or the increasing congestion over the Italian network. Finally, we find also evidence of important heterogeneous treatment effects associated to region population density and we cannot rule out the existence of negative spillovers across regions, suggesting possible reorganization of innovative activity across space.
    Keywords: transport infrastructure; innovation; regional growth; policy evaluation
    JEL: L91 O33 O47 R11 R41
    Date: 2020–12–15
  12. By: Shivakumar Nayka; Kala Seetharam Sridhar (Institute for Social and Economic Change)
    Abstract: Given the importance of intra urban mobility to access jobs and their economic importance for cities, this paper identifies determinants of commuting time for Bengaluru’s commuters. Since secondary data on urban commuters is conspicuous by its absence in Indian cities, this paper uses valuable primary survey data of commuters in Bengaluru using a structured questionnaire. The findings are that, the average one-way commuting time to work is 42.45 minutes, to cover an average distance of 10.84 kms, and an average spending of Rs.2,589 per month on commuting to work. We find, based on regression analysis, that those that are educated, men, those travelling during peak hours and those that are married incur a longer commute time. We find that 70.43 per cent of commuters are travelling to work during peak hours and 43.30 per cent of commuters travel more than the commuting time predicted by the model developed here. We conclude that there has been an insignificant decrease in the metropolitan area’s effective labour market during 2001-2018
    Keywords: Urban commuters; Urban momility; Bengaluru
    Date: 2019
  13. By: Wodtke, Geoffrey T; Yildirim, Ugur; Harding, David J; Elwert, Felix
    Abstract: Although it is widely hypothesized that neighborhood effects are explained by differences in the schools to which children have access, few prior studies have investigated the explanatory role of school quality. In this study, we examine whether school quality mediates or interacts with the effects of neighborhood context on academic achievement. With data from the Early Childhood Longitudinal Study, we operationalize a school’s quality as the difference between the school-year and summer learning rates among its 1st grade students. We then decompose the total effect of neighborhood context on achievement at the end of 3rd, 5th, and 8th grade into components due to mediation versus interaction, which we estimate using novel counterfactual methods. Results indicate that living in a disadvantaged neighborhood substantially reduces academic achievement. But contrary to expectations, we find no evidence that neighborhood effects are mediated by or interact with school quality. The school environment does not mediate the effects of neighborhood context because differences in the socioeconomic composition of neighborhoods are not, in fact, strongly linked with differences in school quality. The school environment also does not interact with neighborhood context because attending a high-quality school is similarly beneficial whether children reside in advantaged or disadvantaged neighborhoods.
    Keywords: Social and Behavioral Sciences, neighborhoods, schools, achievement, poverty, inequality, mediation, interaction
    Date: 2020–02–06
  14. By: Patricio Saiz; Jose Luis Zofio; ; ;
    Abstract: This article studies the creation and consolidation of a trademark system tantamount to market integration and commercial specialization of Spanish regions from 1850 to 1920. We analyze the first 47,000 registrations, their geographical distribution, and the drivers behind this trademark expansion. By using a lineal probability model, we find knowledge spillovers across regions are associated with their relative trademark specialization and diversification. We incorporate the role played by transport infrastructure by calculating generalized transport costs. Our results clarify the origins and evolution of geographical differences in commercial innovation and regional specialization in the first country to institute modern trademark legislation.
    Keywords: Trademarks/Branding; Specialization/Diversification; Generalized Transport Costs; Regional History; Makets; Spain
    JEL: N93 O34 C25 R12
    Date: 2020–12
  15. By: Lara-Pulido, José Alberto (Universidad Iberoamericana, Centro Transdisciplinar Universitario para la Sustentabilidad (CENTRUS)); Martinez-Cruz, Adan (CERE - the Center for Environmental and Resource Economics)
    Abstract: Teleworking from home during the COVID-19 pandemic has faced challenges specific to cities of emerging economies -e.g. lack of access to internet. This paper points out that these challenges may be overcome if teleworking is performed from a shared office located within reasonable commuting time from a worker's home. In November and December 2019, a sample of office workers in Mexico City was presented to a discrete choice experiment (DCE) describing alternatives under which they may choose teleworking two days a week from a shared office. Commuting time to shared offices is an attribute taking four values -within 15 minutes, 30 minutes, 45 minutes, or 60 minutes walking distance from a worker's home. Availability of spaces to park bikes is another attribute. The price attribute is described as the amount that would be cut from worker's monthly paycheck. Based on random parameter logit specifications, willingness to pay (WTP) for teleworking from a shared office two days a week is estimated at (2019) MXP 1,460 (USD 76.68) on a monthly basis. Average value of one-hour of commuting time is estimated at MXP 73.75 (USD 3.87). Average WTP for bike parking is MXP 280 (USD 14.07) on a monthly basis.
    Keywords: Teleworking; near-home shared office; value of commuting time; value of bike parking; discrete choice experiment; Mexico City.
    JEL: R39 R41
    Date: 2021–01–11
  16. By: Hahn, Anja M.; Kholodilin, Konstantin A.; Waltl, Sofie R.
    Abstract: In 2020, Berlin enacted a rigorous rent-control policy: the “Mietendeckel” (rent freeze), aiming to stop rapidly growing rental prices. We evaluate this newly enacted but old-fashionably designed policy by analyzing its immediate supply-side effects. Using a rich pool of rent advertisements reporting asking rents and comprehensive dwelling characteristics, we perform hedonic-style Difference-in-Difference analyses comparing trajectories of dwellings inside and outside the policy’s scope. We find no immediate effect upon announcement of the policy. Yet advertised rents drop significantly upon the policy’s enactment. Additionally, we document a substitution effect affecting the rental markets of Berlin’s (unregulated) satellite city Potsdam and adjacent smaller municipalities. On top, the supplemental quantity analyses reveal a stark reduction of the number of advertised rental units hampering a successful housing search for newcomers, (young) first-time renters and tenants aiming for a different housing opportunity.
    Keywords: First-Generation Rent Control, Rent Freeze, Urban Policy, Rent Price, Supply Disruptions, Berlin
    Date: 2020–12
  17. By: Chun, Hyunbae; Joo, Hailey Hayeon; Kang, Jisoo; Lee, Yoonsoo
    Abstract: The rapid growth of e-commerce is widely blamed for job losses in brick-and-mortar retailers. We construct a unique measure of online spending share based on 30 billion transactions of credit cards in Korea. Using the geographic variation in online spending shares, we examine the causal e ect of e-commerce on retail employment at the county level. We nd that the rise in online spending share from 2010 to 2015 decreases the county-level oine retail employment by about 172 workers, which represents approximately 3% reduction in average retail employment. We also nd that the employment shifts from oine retail to other local businesses, such as restaurants and personal services. However, such e ects of employment shift are con ned in metropolitan areas and fall far short of o setting employment losses in non-metropolitan areas. Our nding implies a prospect of Retail Job Apocalypse in certain local labor markets (i.e., non-metropolitan areas), if not everywhere.
    Keywords: E-Commerce, Employment, Local Labor Market, Retail, Credit Card
    JEL: J21 L81 R12
    Date: 2020–10
  18. By: Ferreira Sequeda, Maria (RS: GSBE other - not theme-related research, ROA / Training and employment)
    Abstract: This paper analyses the effects of grade retention on secondary school dropout by evaluating a retention policy reform introduced in 2010 in Colombia. The reform ended the restriction that the annual number of retained students at a school could not exceed 5 percent of the total school population. Using administrative data at the school level, we estimate a difference-in-differences model that exploits variation in schools’ retention rates before and after the reform. We distinguish dropout rates by grade (grade 6 to 11). Moreover, we distinguish between retained students who dropped out of school by the end of the year of their retention and the dropout effect on all students enrolled in school the year after retention. Our robust estimates reveal that higher retention increases the rate of students dropping out of school the same year of their retention, that means not enrolling to repeat the failed grade. However, there is little, if any, causal effect of grade retention on the dropout rates of all other students enrolled in the school one year after retention. We find that the latter effect is stronger when retention takes place at the earlier grades whereas the effect for retained students is strongest when retention occurs at grade 9 and grade 11, when students would be entitled to receive the lower secondary school certicate and the high-school diploma respectively.
    JEL: I20 I21 J24
    Date: 2020–12–31
  19. By: Virtanen, Hanna; Riukula, Krista
    Abstract: Abstract We study how reducing the regional supply of post-compulsory education affects schooling choices and educational attainment in Finland. We exploit variation across municipalities and over time in the availability of three secondary education tracks: general education, and the vocational fields of technology and services. According to our results, access to general education mainly affects decisions regarding what to study, whereas reducing the regional availability of vocational education also postpones studies and may even decrease the educational attainment of local youth. Our results also suggest that school consolidations may have a substantial impact on labor market trajectories. We find that the initial enrollment choices of men are more sensitive to supply reductions than those of women, and that the field of technology is particularly important for individuals with less-educated mothers.
    Keywords: School consolidation, Post-compulsory education, Vocational education, School choice, Student mobility, Education supply
    JEL: I2 I21 I24 H40 J24
    Date: 2021–01–11
  20. By: Damien Azzopardi; Fozan Fareed; Patrick Lenain; Douglas Sutherland
    Abstract: The U.S. population has become increasingly concentrated in large metropolitan areas. However, there are striking differences in between the performances of big cities: some of them have been very successful and have been able to pull away from the rest, while others have stagnated or even declined. The main objective of this paper is to characterize U.S. metropolitan areas according to their labor-market performance: which metropolitan areas are struggling and falling behind? Which ones are flourishing? Which ones are staying resilient by adapting to shocks? We rely on an unsupervised machine learning technique called Hierarchical Agglomerative Clustering (HAC) to conduct this empirical investigation. The data comes from a number of sources including the new Job-to-Job (J2J) flows dataset from the Census Bureau, which reports the near universe of job movements in and out of employment at the metropolitan level. We characterize the fate of metropolitan areas by tracking their job mobility rate, unemployment rate, income growth, population increase, net change in job-to-job mobility and GDP growth. Our results indicate that the 372 metropolitan areas under examination can be categorized into four statistically distinct groups: booming areas (67), prosperous mega metropolitan areas (99), resilient areas (149) and distressed metropolitan areas (57). The results show that areas that are doing well are predominantly located in the south and the west. The main features of their success have revolved around embracing digital technologies, adopting local regulations friendly to job mobility and business creation, avoiding strict rules on land-use and housing market, and improving the wellbeing of the city’s population. These results highlight that cities adopting well-targeted policies can accelerate the return to growth after a shock.
    Keywords: clustering analysis, job-to-job flows, Labour mobility, metropolitan areas, United States
    JEL: E24 J11 J61 C38 O51
    Date: 2020–12–18
  21. By: David R. Agrawal. (University of Kentucky); Dirk Foremny (UB - Universitat de Barcelona); Clara Martinez-Toledano (WIL - World Inequality Lab , Columbia Business School - Columbia University [New York])
    Abstract: This paper analyzes the effect of wealth taxation on mobility and the consequences for tax revenue and wealth inequality. We exploit the unique decentralization of the Spanish wealth tax system in 2011—after which all regions levied positive tax rates except for Madrid—using linked administrative wealth and income tax records. We find that five years after the reform, the stock of wealthy individuals in the region of Madrid increases by 10% relative to other regions, while smaller tax differentials between other regions do not matter for mobility. We rationalize our findings with a theoretical model of evasion and migration, which suggests that evasion is the mechanism most consistent with all of the mobility response being driven by the paraíso fiscal. Combining new subnational wealth inequality series with our estimated elasticities, we show that Madrid's status as a tax haven reduces the effectiveness of raising tax revenue and exacerbates regional wealth inequalities.
    Date: 2020–12
  22. By: Balestra, Simone (University of St. Gallen); Sallin, Aurélien (University of St. Gallen); Wolter, Stefan C. (University of Bern)
    Abstract: This paper examines how exposure to students identified as gifted (IQ ≥ 130) affects achievement in secondary school, enrollment in post-compulsory education, and occupational choices. By using student-level administrative data on achievement combined with psychological examination records, we study the causal impact of gifted students on their classmates in unprecedented detail. We find a positive and significant effect of the exposure to gifted students on school achievement in both math and language. The impact of gifted students is, however, highly heterogeneous along three dimensions. First, we observe the strongest effects among male students and high achievers. Second, we show that male students benefit from the presence of gifted peers in all subjects regardless of their gender, whereas female students seem to benefit primarily from the presence of female gifted students. Third, we find that gifted students diagnosed with emotional or behavioral disorders have zero-to-negative effects on their classmates' performance, a detrimental effect more pronounced for female students. Finally, exposure to gifted students in school has consequences that extend beyond the classroom: it increases the likelihood of choosing a selective academic track as well as occupations in STEM fields.
    Keywords: gifted students, peer quality, gender, math, peer effects
    JEL: I21 I24 I26 J24
    Date: 2020–12
  23. By: Agostinelli, Francesco (University of Pennsylvania); Doepke, Matthias (Northwestern University); Sorrenti, Giuseppe (University of Amsterdam); Zilibotti, Fabrizio (Yale University)
    Abstract: What are the effects of school closures during the Covid-19 pandemic on children's education? Online education is an imperfect substitute for in-person learning, particularly for children from low-income families. Peer effects also change: schools allow children from different socio-economic backgrounds to mix together, and this effect is lost when schools are closed. Another factor is the response of parents, some of whom compensate for the changed environment through their own efforts, while others are unable to do so. We examine the interaction of these factors with the aid of a structural model of skill formation. We find that school closures have a large and persistent effect on educational outcomes that is highly unequal. High school students from poor neighborhoods suffer a learning loss of 0.4 standard deviations, whereas children from rich neighborhoods remain unscathed. The channels operating through schools, peers, and parents all contribute to growing educational inequality during the pandemic.
    Keywords: skill acquisition, peer effects, parenting, parenting style, neighborhood effects, COVID-19, pandemics
    JEL: I24 J13 J24 R20
    Date: 2020–12
  24. By: Ryan M. Hynes; Bernardo S. Buarque; Ronald B. Davies; Dieter F. Kogler;
    Abstract: Perhaps more than any other product, beer evokes the place it was made. Weißbier and Germany, dubbels and Belgium, and most of all, Guinness and Ireland. Part of what makes these beers so memorable is what sets them apart and gives them their ‘taste of place’. Many studies have tried to place that taste, and due to a lack of detailed data, have relied largely on qualitative methods to do so. We introduce a novel data set of regionalized beer recipes, styles, and ingredients collected from a homebrewing website. We then turn to the methods of evolutionary economic geography to create regional ingredient networks for recipes within a style of beer, and identify which ingredients are most important to certain styles. Along with identifying these keystone ingredients, we calculate a style’s resiliency or reliance on one particular ingredient. We compare this resiliency within similar styles in different regions and across different styles in the same region to isolate the effects of region on ingredient choice. We find that while almost all beer styles have only a handful of key ingredients, some styles are more resilient than others due to readily available substitute ingredients in their region.
    Keywords: Beer, Economic Geography, Network Analysis
    JEL: Q10 R11
    Date: 2020–12
  25. By: Chu, Shuai; Liu, Xiangbo
    Abstract: This paper studies whether research universities can boost regional economic development through an exogenous shock of a forced relocation of a research university in China. We analyze the development in the treated regions compared with a set of control regions that are created using the synthetic control method and find that research universities can have negative effects on local economic development. We then perform a series of robustness checks. Our main results carry through. By employing a more exogenous shock and more reliable identification strategies, our study provides evidence that research universities do not necessarily promote regional economic development.
    Keywords: Research Universities,Regional Economic Development,Synthetic Control Method
    JEL: O15 O18 R11
    Date: 2021
  26. By: Paul Cheshire; Christian Hilber
    Abstract: Housing affordability is a key concern of an ever-larger fraction of UK voters who are crammed into artificially limited space. It also underlies the sense of being shut out of prosperity and unable to escape declining local economies. The historical rise in the real price of housing means a lot of wealth is now tied up in housing assets, mainly in land as a financial asset, reflecting its shortage, and there are many vested interests in keeping things this way (such as well-established homeowners and landlords). Substantive reforms could solve the housing crisis, but with a few honourable exceptions, politicians, especially ambitious ones, of all stripes, back away from such reforms out of fear of being demonised by the vested interests. Instead, proposed policies tend to tackle the symptoms - rather than the causes - of the UK's housing crisis; or worse - like the Starter Homes scandal - they are designed just to give the appearance of caring. This election analysis provides an overview of the key issues and the underlying causes. It discusses the merits and demerits of key policies. It concludes with a discussion of those reforms that ought to be on the policy agenda.
    Keywords: housing crisis, affordability, substantive reforms, Starter Homes
    Date: 2019–11
  27. By: Rajashri Chakrabarti; Maxim L. Pinkovskiy
    Abstract: This is the second post in a series that aims to understand the gap in COVID-19 intensity by race and income. In our first post, we looked at how comorbidities, uninsurance rates, and health resources may help to explain the race and income gap observed in COVID-19 intensity. We found that a quarter of the income gap and more than a third of the racial gap in case rates are explained by health status and system factors. In this post, we look at two factors related to indoor density—namely public transportation use and home crowding. Here, we will aim to understand whether these two factors affect overall COVID-19 intensity, whether the income and racial gaps of COVID-19 can be further explained when we additionally include these factors, and whether and to what extent these factors independently account for income and racial gaps in COVID-19 intensity (without controlling for the factors considered in the other posts in this series).
    Keywords: COVID-19; race; income; inequality; public transit; home crowding
    JEL: I14 J1 R10 R31
    Date: 2021–01–12
  28. By: Alvaro Garcia Marin; Andrei V. Potlogea; Nico Voigtländer; Yang Yang
    Abstract: We document a novel stylized fact: Using data for several countries, we show that export activity is disproportionately concentrated in larger cities – even more so than overall economic activity. We account for this fact by marrying elements of international trade and economic geography. We build a model with agglomeration economies where firms with heterogeneous productivity sort across city sizes and select into exporting. The model allows us to study the geographic implications of trade policy, as well as the international trade effects of urban policies. We show that (i) lifting restrictions on housing supply raises not only the aggregate productivity of the economy but also its aggregate export intensity, by allowing more firms to locate in larger cities and profit from agglomeration effects; (ii) conversely, while opening up to trade has complex overall economic geography implications, within sectors it tends to shift employment towards larger cities. We structurally estimate the model using data for the universe of Chinese manufacturing firms and study the general equilibrium effects of trade liberalization and of urban policies. We find that the effects of these policies are quantitatively different from those predicted by trade models that ignore economic geography, and by economic geography models that omit international trade (both of which are nested in our framework).
    JEL: F23 F6 R13 R31
    Date: 2020–12
  29. By: Ana Isabel Sá
    Abstract: Differences in mortgage law have significant effects on loan characteristics at origination. Borrower-friendly laws impose higher costs and risks for lenders and, thus, induce effects on mortgage pricing and leverage. However, not all borrower-friendly laws have the same effects. This finding is established using loan-level data for the U.S. mortgage market between 2001 and 2011. Judicial foreclosure requirements imply higher mortgage interest rates due to higher recovery costs and activate the price channel. Recourse restrictions imply higher loan collateralization to compensate for the fewer recovery opportunities and activate the collateral channel.
    JEL: E43 G21 G28 K25 K35
    Date: 2020
  30. By: Adil Outla (UAE - Université Abdelmalek Essaâdi); Koraich Almahdi (UAE - Université Abdelmalek Essaâdi); Moustapha Hamzaoui (UAE - Université Abdelmalek Essaâdi)
    Abstract: Drawing on the literature on business dynamics, entrepreneurship and the spatial determinants of firms' creation, this study use Exploratory spatial data analysis and spatial panel data to test the spatial patterns and dynamics of cooperatives growth in Morocco. The results confirm the existence of spatial concentration of cooperatives, a global spatial autocorrelation and local spatial autocorrelation with different spatial typologies. The results also show that the main positive spatial determinants for cooperatives growth are the existence of cooperatives culture, the males' unemployment rate, and the density of population. However, there are also negative spatial determinants on the growth and dynamics of cooperatives. These include coops density, firm's density, male activity, Business turnover, population growth, Higher education, primary education, and urbanization.
    Keywords: Co-operatives growth,spatial determinants,spatial distribution,social entrepreneurship
    Date: 2020–12–28
  31. By: World Bank Group
    Keywords: Finance and Financial Sector Development - Housing Finance Urban Development - Urban Governance and Management Urban Development - Urban Housing
    Date: 2020–01
  32. By: John Graham
    Keywords: Transport - Transport Economics Policy & Planning Urban Development - Transport in Urban Areas Infrastructure Economics and Finance - Infrastructure Finance
    Date: 2020–01
  33. By: Sven Wardenburg (Philipps-University Marburg); Thomas Brenner (Philipps-University Marburg)
    Abstract: This article presents a spatio-temporal panel vector-autoregressive approach (SptpVAR) as an extended spatial econometric method for analysing spillover effects of regional economic change in time and space. The approach aims to extend the spatial dimension of SpVAR models by capturing the overall cross-regional spillover dynamics over time through additional estimations of effects into neighbouring re- gions and backward spillover to the source region. By showing how local economic dynamics trigger spillover dynamics in economically linked regions, the results are of particular interest to policy makers. To demonstrate the functioning of the SptpVAR approach, it is applied to 361 German regions using a regional growth model and a regional panel data set in the time-period 2000-2017 in an exemplary application.
    Keywords: : Economics dynamics, Spatial spillover, Spatial econometrics, SpVAR
    Date: 2021–01
  34. By: Sebastian Axbard; Anja Benshaul-Tolonen; Jonas Poulsen
    Abstract: A large literature has highlighted the potential detrimental effects of natural resource wealth on social, economic and political outcomes. We study a previously largely unexplored relationship - the impact of natural resource wealth on criminal activity. Our empirical strategy exploits price fluctuations in 15 internationally traded minerals to study the impact of mineral wealth on local crime levels in South Africa - leveraging detailed crime data from 1,084 police precincts over 10 years. We find that increased mineral wealth leads to a reduction in criminal activity. An exploration of mechanisms suggest that the effect is due to changes in employment opportunities created by the mining industry, affecting the opportunity cost of engaging in criminal activity. Consistent with this we also document that results are driven by property crime and that mines are less likely to close down when prices are high. Our results suggest that downward shifts in international mineral prices can cause surges in crime. To investigate how resilience against such surges can be achieved, we exploit the roll-out of a government employment guarantee program and document that the program reduces the crime response to changes in international mineral prices.
    Keywords: Extractive Industries, Mining, Crime
    JEL: K42 D74 O13
    Date: 2019–10–01
  35. By: Rajashri Chakrabarti; Lindsay Meyerson; Maxim L. Pinkovskiy
    Abstract: This is the third post in a series looking to explain the gap in COVID-19 intensity by race and by income. In the first two posts, we have investigated whether comorbidities, uninsurance, hospital resources, and home and transit crowding help explain the income and minority gaps. Here, we continue our investigation by looking at three additional potential channels: the fraction of elderly people, pollution, and social distancing at the beginning of the pandemic in the county. We aim to understand whether these three factors affect overall COVID-19 intensity, whether the income and racial gaps of COVID-19 can be further explained when we additionally include these factors, and whether and to what extent these factors independently account for income and racial gaps in COVID-19 intensity (without controlling for the factors considered in the other posts in this series).
    Keywords: COVID-19; hetergeneity; race; social distancing; pollution
    JEL: I14
    Date: 2021–01–12
  36. By: World Bank
    Keywords: Governance - Local Government Urban Development - National Urban Development Policies & Strategies Urban Development - Regional Urban Development
    Date: 2020
  37. By: Paul Charruau (Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres, LEDa - Laboratoire d'Economie de Dauphine - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres)
    Abstract: We measure the effects on human-capital accumulation at the local level of the "new universities" created as part of the U2000 Plan implemented in France in the early 1990s. Established in 1990, this national program resulted in the creation of eight universities (spread over 15 sites), including four outside the Paris region (over 10 sites). Using the synthetic control method, we show that the opening of "new universities" has led to a significant increase in the local share of higher-educated people (not including those in school). On average, the creation of "new universities" increased this share by 3 p.p. within 25 years, though the effect differs across cases. Our estimates provide reliable results in six of the treated-zones, with positive effects between 2 and 5 p.p. within 25 years (which represents around 8,000 more higher-educated individuals on average, in comparison with the counterfactual). Moreover, exploring the employment implications of "new universities" creation, we found credible evidence that, on average, human-capital gains co-occurred with gains in skilled employment.
    Keywords: Human capital HC,Higher education in France,Regional Development,Public policy evaluation
    Date: 2020–12–09
  38. By: Torsten Ehlers; Mathias Hoffmann; Alexander Raabe
    Abstract: US net capital inflows drive the international synchronization of house price growth. An increase (decrease) in US net capital inflows improves (tightens) US dollar funding conditions for non-US global banks, leading them to increase (decrease) foreign lending to third-party borrowing countries. This induces a synchronization of lending across borrowing countries, which translates into an international synchronization of mortgage credit growth and, ultimately, house price growth. Importantly, this synchronization is driven by non-US global banks’ common but heterogenous exposure to US dollar funding conditions, not by the common exposure of borrowing countries to non-US global banks. Our results identify a novel channel of international transmission of US dollar funding conditions: As these conditions vary over time, borrowing country pairs whose non-US global creditor banks are more dependent on US dollar funding exhibit higher house price synchronization.
    Keywords: House price synchronization, US dollar funding, global US dollar cycle, global imbalances, capital inflows, global banks, global banking network
    JEL: F34 F36 G15 G21
    Date: 2020–12
  39. By: Guy Meunier; Jean-Pierre Ponssard (X - École polytechnique)
    Abstract: Summary: Hydrogen is a possible alternative to the internal combustion engine, alongside battery-powered vehicles, in the context of reducing greenhouse gas emissions associated with transport activities. The costs associated with hydrogen vehicles are currently high, even when considering the greenhouse gas emissions and other pollutants avoided by their use. Efforts to reduce these costs, which will determine the social and environmental desirability of hydrogen vehicles, face two challenges : the high cost of refueling, linked to the crucial problem of coordination between development of the vehicle fleet and refueling infrastructure; and high purchase prices, which may decrease when sufficient quantities generate experience effects. This policy brief argues that each of these two handicaps calls for a specific policy design : at a local level for coordination between actors, and at a European level to generate sufficient volumes. The example of hydrogen-powered urban buses offers a telling illustration of these issues.. Key points: The growing importance of the hydrogen sector has been encouraged by various initiatives in France. These initiatives are based on the idea of a regional ecosystem : around a city, a network of local communities, or even a department or a region. The example of hydrogen buses shows that the abatement costs induced by this technology are still too high. The problem lies both in the price of the vehicles and the supply of fuel. Reducing the costs associated with the supply of fuel requires the resolution of coordination problems linked to network effects, which calls for a response at the local level. Achieving vehicle purchase prices low enough to be competitive requires a European approach, which alone makes it possible to reach significant volumes.
    Date: 2020–07
  40. By: Cabral, Marika (University of Texas at Austin); Kim, Bokyung (University of Texas at Austin); Rossin-Slater, Maya (Stanford University); Schnell, Molly (Northwestern University); Schwandt, Hannes (Northwestern University)
    Abstract: A growing number of American children are exposed to gun violence at their schools, but little is known about the impacts of this exposure on their human capital attainment and economic well-being. This paper studies the causal effects of exposure to shootings at schools on children's educational and economic outcomes, using individual-level longitudinal administrative data from Texas. We analyze the universe of shootings at Texas public schools that occurred between 1995 and 2016, and match schools that experienced shootings with observationally similar control schools in other districts. We use difference-in-differences models that leverage within-individual and across-cohort variation in shooting exposure within matched school groups to estimate the short- and long-run impacts of shootings on students attending these schools at the time of the shooting. We find that shooting-exposed students have an increased absence rate and are more likely to be chronically absent and repeat a grade in the two years following the event. We also find adverse long-term impacts on the likelihood of high school graduation, college enrollment and graduation, as well as employment and earnings at ages 24–26. Heterogeneity analyses by student and school characteristics indicate that the detrimental impacts of shootings are universal, with most sub-groups being affected.
    Keywords: school shootings, childhood trauma, human capital development
    JEL: I24 I31 J13
    Date: 2020–12
  41. By: Henry G. Overman
    Abstract: Economic performance varies widely between the towns, cities and regions of the UK. On some measures, this variation has widened since the financial crisis. These disparities have already proved to be a key theme in the run-up to the 2019 general election. This briefing summarises evidence on spatial disparities from the Centre for Economic Performance (CEP), as well as the broader evidence base.
    Keywords: spatial disparities, skills, cities, left-behind places, 2019 General Election
    Date: 2019–11
  42. By: Skovrider Aaskoven, Maiken (University of Southern Denmark, DaCHE - Danish Centre for Health Economics); Kjær, Trine (University of Southern Denmark, DaCHE - Danish Centre for Health Economics); Gyrd-Hansen, Dorte (University of Southern Denmark, DaCHE - Danish Centre for Health Economics)
    Abstract: The onset of a major illness is one of the most sizeable and unpredictable shocks an individual mayexperience and can have devastating effects not only on the individual but the entire household,including children. If a parental health shock reduces investments in children, it may have long-lastingimplications on the children’s future socioeconomic status with consequences on their adult health. Using a detailed longitudinal dataset of Danish children born in the period 1987-2000, this paper studies how a severe parental health shock affects children’s school achievements. We use coarsened exact matching to control for potential endogeneity between parental health and children’s school outcomes and employ cancer specific survival rates to measure the size of the health shock. We findrobust negative effects of a parental health shock on children’s basic school grades as well as their likelihood of starting and finishing secondary education, especially for poor prognosis cancers. We observe different outcomes across children’s gender and age, but no effects of family-related resilience factors such as parental education level. The effects seem not to be driven by pecuniary costs but by non-pecuniary costs such as time and emotional investments. Moreover, we find that the negative effects on school performance increase in the size of the health shock for both survivors and deaths suggesting that the trajectory of the illness, and not only final outcome, is important.
    Keywords: Health shocks; Parental investments; Children’s education; Denmark
    JEL: I14 I21 O15
    Date: 2020–07–13
  43. By: Linas Tarasonis (Bank of Lithuania & Vilnius University); Bruno Decreuse (Aix-Marseille University & CNRS & AMSE)
    Abstract: In the US, black workers spend more time in unemployment, lose their jobs more rapidly, and earn lower wages than white workers. This paper quantifies the contributions of statistical discrimination, as portrayed by negative stereotyping and screening discrimination, to such employment and wage disparities. We develop an equilibrium search model of statistical discrimination with learning based on Moscarini (2005) and estimate it by indirect inference. We show that statistical discrimination alone cannot simultaneously explain the observed differences in residual wages and monthly job loss probabilities between black and white workers. However, a model with negative stereotyping, larger unemployment valuation and faster learning about the quality of matches for black workers can account for these facts. One implication of our findings is that black workers have larger returns to tenure.
    Keywords: Learning; Screening discrimination; Job search; Indirect inference
    JEL: J31 J64 J71
    Date: 2020–12–18
  44. By: Murray, Cameron (The University of Sydney); Limb, Mark (Queensland University of Technology)
    Abstract: Does planning for higher density increase housing development and decrease housing prices? We study the outcomes of planning for density in established suburbs over a twenty-year period using a large site-level dataset on dwelling stock, planning regulations, and prices, in 19 planned densification areas (activity centres) comprising 25,775 sites in Brisbane, Australia. Planning rules in these areas were repeatedly relaxed to allow for higher density; a policy change that should have observable price effects. To study the effect of zoning, we create a variable for each site called zoned capacity, which is the estimated number of additional dwellings able to be built under the planning code. Only 2% of the zoned capacity was taken up in any five-year study interval. Zoned capacity doubled over the whole twenty-year study period (going from 0.9x total dwellings to 1.4x), however despite these changes, 78% of sites with zoned capacity in the first period remained undeveloped. Higher rates of new housing supply are robustly related to higher prices despite demand arguably seeing a similar increase across locations. Our zoned capacity variable has no relationship to price across numerous regression models and is robust to various data selection choices. It could be that planning is not a binding constraint on new housing in Brisbane—yet price growth over our study period is comparable to other Australian cities. This evidence suggests that private housing markets will not rapidly supply new housing and cause significant price reductions, even if the planning system allows it.
    Date: 2020–12–08
  45. By: Etienne Capron (GRANEM - Groupe de Recherche Angevin en Economie et Management - UA - Université d'Angers - AGROCAMPUS OUEST - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - Institut National de l'Horticulture et du Paysage); Dominique Sagot-Duvauroux (GRANEM - Groupe de Recherche Angevin en Economie et Management - UA - Université d'Angers - AGROCAMPUS OUEST - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - Institut National de l'Horticulture et du Paysage); Raphaël Suire (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes - IUML - FR 3473 Institut universitaire Mer et Littoral - UBS - Université de Bretagne Sud - UM - Le Mans Université - UA - Université d'Angers - CNRS - Centre National de la Recherche Scientifique - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - UN - Université de Nantes - ECN - École Centrale de Nantes)
    Abstract: This article aims to study the role of places and events in the structuring of a community of innovation whose practice is at the crossroads of art and tech - videomapping. Based on an exploratory case study, we observe the relationships between the different actors who form subgroups, sharing a common interest in a techno-creative practice - but whose collective innovation dynamic is only in its beginnings. We also document the usage of places and events in their intermediation role for these subgroups. This reveals preferential circulations - patterns of moves among a set of focal locations in the city for a community – and the crucial role of these locations in creative communities emergence.
    Keywords: techno-creative innovation,places,knowledge,network analysis
    Date: 2020
  46. By: Cortes, Kalena E. (Texas A&M University); Klasik, Daniel (University of North Carolina, Chapel Hill)
    Abstract: The Top 10% Plan admissions policy has now been in place in Texas for over two decades. We analyze 18 years of post-Top 10% Plan data to look for evidence of increased access to the selective Texas flagship campuses among all Texas high schools. We provide a detailed description of changes in enrollment patterns at the flagship campuses from Texas high schools after the implementation of the Top 10% Plan, focusing on whether the policy resulted in new sending patterns from high schools that did not have a history of sending students to the flagship campuses. Our analysis reveals an increase in the likelihood that high schools in non-suburban areas sent students to the flagship campuses, but ultimately little to no equity-producing effects of the Top 10% Plan over this 18-year period. In fact, the representation of traditional, always-sending, feeder high schools on the flagship campuses continued to dwarf the population of students from other high schools. Thus, the purported high school representation benefits of the policy appear to be overstated and may not go as far as advocates might have hoped in terms of generating equity of access to the flagship campuses in the state.
    Keywords: affirmative action, college admissions policies, racial and ethnic diversity, geographical diversity, top 10% plan, top x% plans, equity and access, college quality
    JEL: I21 I24 J18
    Date: 2020–12
  47. By: Hiroaki Niikura (Faculty of Economics, Musashino University); Michio Naoi (Faculty of Economics, Keio University); Miki Seko (Institute of Political Economy and Faculty of Economics, Musashino University)
    Abstract: This paper examines the impact of housing search methods on subsequent residential satisfaction among Japanese homeowners. Our empirical results based on the Structural Equation Modeling (SEM) show that using the Internet or visiting housing exhibits during a search process can improve subsequent residential satisfaction. These results are consistent with the notion that these information search methods can alleviate information asymmetry and/or provide more information about properties available on market. Furthermore, the positive effects of these search methods on residential satisfaction can be observed for custom-build homes and second-hand homes but not for houses built for sale.
    Keywords: Housing search method, Residential satisfaction, Information asymmetry, Structural Equation Modeling
    JEL: R31 R21 D83
    Date: 2020–10–19
  48. By: John Graham
    Keywords: Transport - Transport Economics Policy & Planning Urban Development - Transport in Urban Areas Infrastructure Economics and Finance - Infrastructure Finance
    Date: 2020–01
  49. By: Green, Colin P. (Norwegian University of Science and Technology (NTNU)); Krehic, Lana (Norwegian University of Science and Technology (NTNU))
    Abstract: Driving under the influence of alcohol is a major cause of fatalities worldwide. There have been a range of legislative and policy interventions that aim to address this. Bar closing hours is one policy with clear implications for drink driving. Existing evidence, largely drawn from one-off policy changes in urban settings, reports mixed evidence that is difficult to generalise. We return to this issue using a setting, Norway, that is advantageous due to large temporal and regional variation in closing times, frequent changes in closing hours, and a lack of other confounding policy changes. We demonstrate an average zero effect of closing hours on traffic accidents that masks large variations in effects, especially in terms of population density, accident severity, and direction of change in closing hours. Our results suggest that estimates from single policy changes may be difficult to generalise, while demonstrating that closing hours have the potential to generate large effects on traffic accidents.
    Keywords: closing hours, alcohol policy, traffic accidents
    JEL: I18 R41
    Date: 2020–12
  50. By: World Bank
    Keywords: Transport - Transport Economics Policy & Planning Urban Development - National Urban Development Policies & Strategies Urban Development - Transport in Urban Areas Urban Development - Urban Economic Development
    Date: 2020
  51. By: World Bank
    Keywords: Transport - Transport Economics Policy & Planning Urban Development - National Urban Development Policies & Strategies Urban Development - Transport in Urban Areas Urban Development - Urban Economic Development
    Date: 2020
  52. By: List, John A. (University of Chicago); Momeni, Fatemeh (University of Chicago); Zenou, Yves (Monash University)
    Abstract: The behavioral revolution within economics has been largely driven by psychological insights, with the sister sciences playing a lesser role. This study leverages insights from sociology to explore the role of neighborhoods on human capital formation at an early age. We do so by estimating the spillover effects from a large-scale early childhood intervention on the educational attainment of over 2,000 disadvantaged children in the United States. We document large spillover effects on both treatment and control children who live near treated children. Interestingly, the spillover effects are localized, decreasing with the spatial distance to treated neighbors. Perhaps our most novel insight is the underlying mechanisms at work: the spillover effect on non-cognitive scores operate through the child's social network while parental investment is an important channel through which cognitive spillover effects operate. Overall, our results reveal the importance of public programs and neighborhoods on human capital formation at an early age, highlighting that human capital accumulation is fundamentally a social activity.
    Keywords: early education, social activity, neighborhood, field experiment, spillover effects, non-cognitive skills
    JEL: C93 I21 R1
    Date: 2020–12
  53. By: Aneja, Abhay; Xu, Guo
    Abstract: We link personnel records of the federal civil service to census data for 1907-1921 to study the segregation of the civil service by race under President Woodrow Wilson. Using a difference-indifferences design to compare the black-white wage gap around Wilson’s presidential transition, we find that the introduction of employment segregation increased the black wage penalty by 7 percentage points. This gap increases over time and is driven by a reallocation of already-serving black civil servants to lower paid positions. Our results thus document significant costs borne by minorities during a unique episode of state-sanctioned discrimination.
    Keywords: Social and Behavioral Sciences, segregation, federal segregation, racial earnings inequality, civil service, Woodrow Wilson, public policy, discrimination
    Date: 2020–12–02
  54. By: Bagues, Manuel (University of Warwick); Roth, Christopher (University of Warwick)
    Abstract: We study the long-run effects of contact with individuals from other regions on beliefs, preferences and national identity. We combine a natural experiment, the random assignment of male conscripts to different locations throughout Spain, with tailored survey data. Being randomly assigned to complete military service outside of one's region of residence fosters contact with conscripts from other regions, and increases sympathy towards people from the region of service, measured several decades later. We also observe an increase in identification with Spain for individuals originating from regions with peripheral nationalism. Our evidence suggests that intergroup exposure in early adulthood can have long-lasting effects on individual preferences and national identity.
    Keywords: interregional contact, intergroup exposure, beliefs, preference formation, identity
    JEL: R23 D91 Z1
    Date: 2020–12
  55. By: Akgündüz, Yusuf Emre (Sabanci University); Bağır, Yusuf Kenan (Central Bank of the Republic of Turkey); Cilasun, Seyit Mümin (Central Bank of the Republic of Turkey); Kirdar, Murat G. (Bogazici University)
    Abstract: This study combines an administrative dataset of the full population of Turkish firms and the setting of the sudden mass migration of Syrian refugees to Turkey to identify the effect of migrants on firm performance and market structure. As a result of the migrant shock, existing firms expand and new firms are established. Quantitatively, a 10 percentage-point rise in migrant-to-native ratio increases average firm sales by 4% and the number of registered firms by 5%. While the number of firms rises, new firms are more likely to be small. The resulting market structure shows less concentration and firms reduce the share of workers formally employed. We further document an increased propensity to export and an increase in the variety of exported products. The impact on exports is driven by a rise in competitiveness of firms in regions hosting Syrians as a decline in export prices is observed. We also uncover evidence for an effect of migrants' skills and networks on exports, as the export value and variety of products to the Middle East and North Africa (MENA) region increase more than those to the EU region among exporters while the prices of products exported to the two regions show similar changes.
    Keywords: refugees, firm performance, market structure, sales, informality, exports, migrant business networks
    JEL: J15 J61 F16 L11
    Date: 2020–12
  56. By: Prateek Chandra Bhan
    Abstract: This paper offers experimental evidence on the significance of role-models on fostering hope, increasing effort and improving the academic performance of primary school students in India. Students from private schools were individually randomised to a treatment or a placebo group. Treated students watch a short film produced as a part of the experiment in Jaipur, Rajasthan - the study location. The placebo group students watch a television show for kids, ‘Malgudi Days’. I find a 0.17 standard deviation (s.d.) increase in student hope and 0.25 s.d increase in their effort, immediately after the intervention. The one-off treatment leads to a 0.16 s.d. increase on standardised test scores in English, six-weeks after the intervention. Along with hope, I find significant improvements in students’ self-efficacy or optimism and happiness. A cost-effectiveness analysis highlights role-models as a promising treatment intervention tool that can have an effect on student motivation and their learning outcomes.
    Keywords: Role models, hope, effort, education, primary school, India.
    JEL: O12 I25 I21 J24
    Date: 2020–11
  57. By: Ainsworth, Robert (University of Florida); Dehejia, Rajeev (New York University); Pop-Eleches, Cristian (Columbia University); Urquiola, Miguel (Columbia University)
    Abstract: This paper examines the roles that information and preferences play in determining whether households choose schools with high value added. We study Romanian school markets using administrative data, a survey, and an experiment. The administrative data show that, on average, households could select schools with 1 s.d. worth of additional value added. This may reflect that households have incorrect beliefs about schools' value added, or that their preferences lead them to prioritize other school traits. We elicit households' beliefs and find that they explain less than a fifth of the variation in value added. We then inform randomly selected households about the value added of the schools in their towns. This improves the accuracy of households' beliefs and leads low-achieving students to attend higher-value added schools. We next estimate households' preferences and predict their choices under the counterfactual of fully accurate beliefs. We find that beliefs account for 18 (11) percent of the value added that households with low- (high-) achieving children leave unexploited. Interestingly, for households with low-achieving children, the experiment seems to have affected both beliefs and preferences. This generates larger effects on choices than would be predicted via impacts on beliefs alone.
    Keywords: value added, information intervention, preferences
    JEL: I2 C93 D8
    Date: 2020–12
  58. By: Gimenez-Nadal, J. Ignacio (University of Zaragoza); Molina, José Alberto (University of Zaragoza); Velilla, Jorge (University of La Rioja)
    Abstract: This paper explores the mobility patterns of elder workers in the United States, with a focus on mobility to and from work (e.g., commuting) across metropolitan areas and metropolitan population sizes. Using detailed time diaries from the American Time Use Survey for the years 2003-2018, estimates reveal a positive correlation between the time spent commuting and residing in metropolitan areas, which is also driven by longer commutes in more populated metropolitan areas. Furthermore, elder workers in metropolitan areas of more than 2.5 million inhabitants use more public transports in their commuting trips than similar workers in less-populated or non-metropolitan areas. The analysis presented here may allow policy makers to identify which elder workers may be more affected by the negative consequences of commuting, and also which groups of elder workers have more limitations in their commuting behaviors.
    Keywords: commuting time, elder workers, metropolitan areas, population size, American Time Use Survey
    JEL: R40 J14
    Date: 2020–12
  59. By: Carillo, Maria Rosaria; Lombardo, Vincenzo; Venittelli, Tiziana
    Abstract: This paper explores the relationship between social identity and labor market outcomes of immigrants. Using survey data from Italy, we provide robust evidence that immigrants with stronger feelings of belonging to the societies of both the host and home country have higher employment rates, while those who exclusively identify with the host country culture do not have a net occupational advantage. Analysis of the potential mechanisms suggests that, although simultaneous identification with host and home country groups can be costly, the positive effect of multiple social identities is especially triggered by the enlarged information transmission and in-group favoritism that identification with, and membership of, extended communities ensure.
    Keywords: Migration,Integration,Ethnic identity,Acculturation,Culture,Labor market
    JEL: F22 J15 J61 Z1
    Date: 2021
  60. By: Michael Bailey; Drew Johnston; Martin Koenen; Theresa Kuchler; Dominic Russel; Johannes Stroebel
    Abstract: We explore how social network exposure to COVID-19 cases shapes individuals’ social distancing behavior during the early months of the ongoing pandemic. We work with de-identified data from Facebook to show that U.S. users whose friends live in areas with worse coronavirus outbreaks reduce their mobility more than otherwise similar users whose friends live in areas with smaller outbreaks. The effects are quantitatively large: a one standard deviation increase in friend-exposure to COVID-19 cases early in the pandemic results in a 1.2 percentage point increase in the probability that an individual stays home on a given day. As the pandemic progresses, changes in friend-exposure drive changes in social distancing behavior. Given the evolving nature and geography of the pandemic—and hence friend-exposure — these results rule out many alternative explanations for the observed relationships. We also analyze data on public posts and membership in groups advocating to “reopen” the economy to show that our findings can be explained by friend-exposure raising awareness about the risks of the disease and inducing individuals to participate in mitigating public health behavior.
    Keywords: social networks, peer effects, Covid-19, social distancing
    JEL: I00 D83 D85 H00
    Date: 2020

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