nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2022‒09‒19
fifty-nine papers chosen by
Steve Ross
University of Connecticut

  1. Does Highway Access Influence Local Employment? Evidence from German Municipalities By Luisa Dörr; Stefanie Gäbler
  2. How the rise of teleworking will reshape labor markets and cities By Toshitaka Gokan; Sergei Kichko; Jesse A. Matheson; Jacques-Francois Thisse
  3. What Flattened the House-Price Gradient? The Role of Work-from-Home and Decreased Commuting Cost By Jinwon Kim; Dede Long
  4. Analysis of the Effects of COVID-19 Outbreak on Population Distribution within Cities By Toru Takemoto; Nobuo Akai; Ryuji Kutsuzawa
  5. Disruptive innovation and spatial inequality By Kemeny, Tom; Petralia, Sergio; Storper, Michael
  6. Spatial economic dynamics and transport project appraisal By James Lennox
  7. The rise and fall of social housing? Housing decommodification in long-run perspective By Kholodilin, Konstantin A.; Kohl, Sebastian; Müller, Florian
  8. The long run impact of childhood interracial contact on residential segregation By Luca Paolo Merlino; Max Friedrich Steinhardt; Wren-Lewis Liam
  9. Universal Early Childhood Education and Adolescent Risky Behavior By Michihito Ando; Hiroaki Mori; Shintaro Yamaguchi
  10. House Price Responses to Monetary Policy Surprises: Evidence from the U.S. Listings Data By Gorea, Denis; Kryvtsov, Oleksiy; Kudlyak, Marianna
  11. Impact of COVID-19 School Closures on the Cognitive and Non-cognitive Skills of Elementary School Students By ASAKAWA Shinsuke; OHTAKE Fumio
  12. Selecting names for experiments on ethnic discrimination By Stijn Baert; Louis Lippens; Hannah Van Borm
  13. Intergenerational Spillover Effects of Language Training for Refugees By Mette Foged; Linea Hasager; Giovanni Peri; Jacob N. Arendt; Iben Bolvig
  14. Labor Market Competition and the Assimilation of Immigrants By Christoph Albert; Albrecht Glitz; Joan Llull
  15. Information, Intermediaries, and International Migration By Samuel Bazzi; Lisa Cameron; Simone Schaner; Firman Witoelar
  16. Consumption Cities vs. Production Cities: New Considerations and Evidence By Remi Jedwab; Elena Ianchovichina; Federico Haslop
  17. Regional diversification and intra-regional wage inequality in the Netherlands By Nicola Cortinovis; Dongmiao Zhang; Ron Boschma
  18. National elections, sub-national growth: the politics of Turkey's provincial economic dynamics under AKP rule By Luca, Davide
  19. Agglomeration and welfare in a continuous space By Kensuke Ohtake
  20. Job Location Decisions and the Effect of Children on the Employment Gender Gap By Andrea Albanese; Adrian Nieto Castro; Konstantinos Tatsiramos
  21. School Integration of Syrian Refugee Children in Turkey By Murat Kirdar; İsmet Koç; Meltem DayıoÄŸlu
  22. Effects of Intergovernmental Transfers on Income and Poverty Rates: Evidence from the Philippines By Cheng-Tao Tang; Chun Yee Wong; Orelie Bathan Delas Alas
  23. Risk Weights on Irish Mortgages By Lyons, Paul; Rice, Jonathan
  24. Immigration, Wages, and Employment under Informal Labor Markets By Delgado-Prieto, Lukas
  25. The Impact of the Public Education Expenditures on Regional Development in Turkey: Evidence from Static and Dynamic Panel Data By Köktaş, A. Murat; Apaydın, Şükrü; Pirçekli, Koray
  26. Killing Our Future : The Long-Term and Intergenerational Effects of School Shootings on Labor-Market Outcomes By Sezer, Ayse Hazal
  27. How Intelligent Vehicle Technologies Can Improve Vulnerable Road User Safety at Signalized Intersections By Qian, Xiaodong; Xiao, Runhua; Jaller, Miguel; Chen, Shenyang
  28. Comparative benefits of analyzing spatial aggregate data using Stata’s Sp versus gsem and sem By Emil Coman
  29. On the Estimation of Peer Effects for Sampled Networks By Mamadou Yauck
  30. Non-bank mortgage lending in Ireland: recent developments and macroprudential considerations By Gaffney, Edward; Hennessy, Christina; McCann, Feargal
  31. Assessments in Education By Hans Henrik Sievertsen
  33. Environmental Policies Benefit Economic Development: Implications of Economic Geography By Seth Morgan; Alexander Pfaff; Julien Wolfersberger
  34. Living Wage Benchmark Report: Baja Carlifornia, Mexico (January 2021) By Marcelo Delajara; Rocío Espinosa; Claudia Fonseca; Martha Anker; Richard Anker
  35. Discrimination in a Rank Order Contest. Evidence from the NFL Draft By Gregory-Smith, Ian; Bryson, Alex; Gomez, Rafael
  36. Neutralizing the Tentacles of Organized Crime. Assessment of an Anti-Crime Measure in Fighting Mafia Violence By Anna Laura Baraldi; Erasmo Pagani; Marco Stimolo
  37. Lockdowns Require Geographic Coordination because of the Propagation of Economic Effects through Supply Chains By INOUE Hiroyasu; MURASE Yohsuke; TODO Yasuyuki
  38. Migration and Firm-Level Productivity By Fabling, Richard; Maré, David C.; Stevens, Philip
  39. Policy Uncertainty and Inventor Mobility By Jordan Bisset; Dirk Czarnitzki; Thorsten Doherr
  40. Scapegoating and Discrimination in Times of Crisis: Evidence from Airbnb By Michael Luca; Elizaveta Pronkina; Michelangelo Rossi
  42. Life after Default: Credit Hardship and its Effects By Giacomo De Giorgi; Costanza Naguib
  43. Lifetime Consequences of Lost Instructional Time in the Classroom: Evidence from Shortened School Years By Kamila Cygan-Rehm
  44. Labor Market Power, Self-Employment, and Development By Amodio, Francesco; Medina, Pamela; Morlacco, Monica
  45. Externalities in the Wildland - Urban Interface: Private Decisions, Collective Action, and Results from Wildfire Simulation Models for California By Howard Kunreuther; Artem Demidov; Mark Pauly; Matija Turcic; Michael Wilson
  46. How to Manage Fiscal Risks from Subnational Governments By Mr. Sandeep Saxena
  47. Does the Minimum Wage Affect Wage Inequality? A Study for the Six Largest Latin American Economies By Carlo Lombardo; Lucía Ramirez-Veira; Leonardo Gasparini
  48. Language Barriers and the Speed of Knowledge Diffusion By Kyle HIGHAM; NAGAOKA Sadao
  49. Motivate the crowd or crowd-them out? The impact of local government spending on the voluntary provision of a green public good By Lara Bartels; Martin Kesternich
  50. Centering Work: Integration and Diffusion of Workforce Development within the U.S. Manufacturing Extension Network By Nichola Lowe; Greg Schrock; Matthew D. Wilson; Rumana Rabbani; Allison Forbes
  51. Identity in Court Decision-Making By Ahrsjö, Ulrika; Niknami, Susan; Palme, Mårten
  52. A framework for measuring social value in infrastructure and built environment projects: an industry perspective By Fujiwara, Daniel; Dass, Daniel; King, Emily; Vriend, Myriam; Houston, Richard; Keohane, Kieran
  53. Racial platform capitalism: empire, migration and the making of Uber in London By Gebrial, Dalia
  54. The Leading Role of Bank Supply Shocks By Bonilla-Mejía, Leonardo; Ruiz-Sánchez, María Alejandra; Villamizar-Villegas, Mauricio
  55. Monopsony in labor markets: Empirical evidence from Italian firms By Filippo Passerini
  57. Quality of sub-national government and regional development in Africa By Iddawela, Yohan; Lee, Neil; Rodríguez-Pose, Andrés
  58. The Effects of Electronic Monitoring on Offenders and their Families By Grenet, Julien; Grönqvist, Hans; Niknami, Susan
  59. Ask a local: Improving the public pricing of land titles in urban Tanzania By Tanner Regan; Martina Manara

  1. By: Luisa Dörr; Stefanie Gäbler
    Abstract: We examine how highway accessibility influences local employment outcomes. We exploit the stagewise expansion of the ”Baltic Sea highway”, the largest contiguous highway construction project in Germany since 1945. Results from difference-indifferences estimations and an event study approach show that highway access influences local employment outcomes in peripheral municipalities within 10 km road distance. Improved accessibility decreases employment by 9%. These effects are driven by reduced commuter flows within the periphery, while we find opposing effects on core municipalities. Improved accessibility also gives rise to a shift of population and economic activity from the periphery to the core, weakening the periphery as a place of work.
    Keywords: Highway, infrastructure, accessibility, commuting, employment, municipalities, local governments
    JEL: H54 H71 O18
    Date: 2022
  2. By: Toshitaka Gokan (Institute of Developing Economies - JETRO); Sergei Kichko (University of Trento); Jesse A. Matheson (Department of Economics, University of Sheffield, UK); Jacques-Francois Thisse (CORE-UCLouvain, Institute of Developing Economies - JETRO and CEPR)
    Abstract: In recent years the land-rent gradient for the city of London has flattened by 17 percentage points. Further, teleworking has increased 24 percentage point for skilled workers, but much less for unskilled workers. To rationalize these stylized facts, we propose a model of the monocentric city with heterogeneous workers and teleworking. Skilled workers, working in final goods production, can telework while unskilled workers, working in either final goods or local services production, cannot. We show that increased teleworking flattens the land-rent gradient, and eventually skilled workers move from the city center to the city’s periphery, fundamentally changing the city structure. The increased teleworking has implications for unskilled workers who move from the local services sector into final goods, leading to greater wage inequality between skilled and unskilled workers. The model is extended to two cities which differ in productivity. Teleworking allows skilled workers of the more productive city to reside in the less productive city where housing is cheaper. This increases housing prices in the less productive city, relative to the more productive city, and has implications for unskilled workers in both cities. We provide empirical evidence from housing prices in England which is consistent with this result.
    Keywords: telecommuting, working from home, gentrified cities, doughnut cities, inter-city commuting
    JEL: J60 R00
    Date: 2022–08
  3. By: Jinwon Kim (DepartmentofEconomics,SogangUniversity,Seoul,Korea); Dede Long (DepartmentofEconomics,CaliforniaStateUniversity,LongBeach)
    Abstract: During the COVID-19 pandemic, house prices increased more in the suburbs than in city centers, flattening house-price gradients in most US cities.This paper explains this phe- nomenon, focusing on the pandemic-induced adoption of work-from-home(WFH)practices. Our theoretical framework shows that WFH reduces not only the frequency of physical com- mutes in a city but also the time-cost of individual commutes by lowering urban congestion levels, both of which alter residents’ locational preferences and consequently the bid-price for housing. To provide empirical support for our theoretical hypotheses, we leverage granular Google Maps travel time data to develop a novel measure of the change in time-cost induced by the COVID-19 shock, along with a county-level WFH potential index, to explain the shift in house-price gradients during the pandemic. We find that the time-cost change and the city-level WFH potential play a significant role in flattening the house-price gradients, contributing equally to the combined effects.
    Keywords: Inflation, Unemployment, Equity Prices, SearchModels
    JEL: E4 E5
    Date: 2022
  4. By: Toru Takemoto (College of Law, Nihon University); Nobuo Akai (Osaka School of International Public Policy, Osaka University); Ryuji Kutsuzawa (Ministry of Land, Infrastructure, Transport and Tourism)
    Abstract: The COVID-19 outbreak could have a negative impact on population change within cities. The impact will be greater in the centers of cities, in particular, given that they present greater chances of person-to-person contact. Consequently, population distribution will also change within the cities. Therefore, this paper, using population data in mesh-based regions divided by a certain width of latitude and longitude, analyzes the effect of COVID-19 on the population distribution within cities. The analysis is based on a fixed effect model using panel data. The analysis showed that COVID-19 had a negative impact on the change of population in meshed-based regions, and that the impact decreased with increasing distance from the centers of cities.
    Keywords: Spatial Distribution of the Population, Mesh-Based Region, Standard Distance, COVID-19, Fixed Effect Analysis
    JEL: R11 R12 R23
    Date: 2022–09
  5. By: Kemeny, Tom; Petralia, Sergio; Storper, Michael
    Abstract: Although technological change is widely credited as driving the last 200 years of economic growth, its role in shaping patterns of inequality remains under-explored. Drawing parallels across two industrial revolutions in the United States, this paper provides new evidence of a relationship between highly disruptive forms of innovation and spatial inequality. Using the universe of patents granted between 1920 and 2010 by the US Patent and Trademark Office (USPTO), we identify disruptive innovations through their rapid growth, complementarity with other innovations and widespread use. We then assign more and less disruptive innovations to subnational regions in the geography of the United States. We document three findings that are new to the literature. First, disruptive innovations exhibit distinctive spatial clustering in phases understood to be those in which industrial revolutions reshape the economy; they are increasingly dispersed in other periods. Second, we discover that the ranks of locations that capture the most disruptive innovation are relatively unstable across industrial revolutions. Third, regression estimates suggest a role for disruptive innovation in regulating overall patterns of spatial output and income inequality.
    Keywords: industrial revolutions; inequality; innovation; regional development; technological change
    JEL: J31 O30 O33 O51
    Date: 2022–07–20
  6. By: James Lennox
    Abstract: Transport infrastructure is costly to build and very long-lived. Major projects are expected to enhance accessibility, which over time, is likely to a ect the distribution of population and employment. In a Dynamic Spatial Equilibrium (DSE) model, the timing and location of a project's direct costs and benefits can be explicitly represented. Effects of both construction and operational phases are captured in a forward-looking spatial general equilibrium with costly adjustment. Not only are dynamic responses of direct interest to policymakers, but they have crucial implications for welfare analysis. In this paper, we present a flexible DSE model incorporating dynamics of internal migration and occupation choice, and intra- period spatial linkages via commuting and trade flows. We calibrate the framework to Australian data and illustrate its application by modelling a hypothetical fast express rail service in South-East Queensland. In analysing the results, we highlight the roles of general equilibrium effects within and between periods. These are important both to overall welfare benefits and to their distribution. Transport cost changes are exogenous inputs to our simulation. However, we also discuss the potential to link a DSE model to a four-step strategic transport model to enable fully dynamic Land Use-Transport Interactions (LUTI) simulations.
    Keywords: dynamic spatial equilibrium, project appraisal
    JEL: R12 R23 R42
    Date: 2022–08
  7. By: Kholodilin, Konstantin A.; Kohl, Sebastian; Müller, Florian
    Abstract: The comparative study of housing decommodification lags behind classical welfare state research, while housing research itself is rich in homeownership studies but lacks comparative accounts of private and social rentals due to missing comparative data. Building on existing works and various primary sources, this study presents a new collection of up to forty-eight countries' social housing shares in stock and new construction since the first housing laws around 1900. The interpolated benchmark time series generally describe the rise and fall of social housing across a residual, a socialist, and a Northern-European housing group. The decline was steeper than for the classical welfare state, but the degree of erosion was surprisingly small in some countries where public housing associations remained resilient. Within the broader housing welfare state, social housing correlates positively with rent regulation and allowances, but negatively with homeownership subsidies and liberal mortgage regulation. A multivariate analysis shows that social housing is rather explained by housing shortages and complementarities with rental and welfare policies than by typical welfare state theories (GDP, political parties). Generally, the paper shows that conventional housing typologies are difficult to defend over time and argues more generally for including housing decommodification in welfare state research.
    Keywords: housing tenure,social housing,welfare state,Sozialwohnungsbau,Wohlfahrtsstaat,Wohneigentumsformen
    Date: 2022
  8. By: Luca Paolo Merlino (ECARES - European Center for Advanced Research in Economics and Statistics - ULB - Université libre de Bruxelles, UA - University of Antwerp); Max Friedrich Steinhardt (FU - Free University of Berlin, IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics); Wren-Lewis Liam (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: This paper exploits quasi-random variation in the share of Black students across cohorts within US schools to investigate whether interracial contact in childhood impacts the residential choices of Whites in adulthood. We find that, 20 years after exposure, Whites who had more Black peers of the same gender in their grade go on to live in census tracts with more Black residents. Further investigation suggests that this result is unlikely to be driven by economic opportunities or social networks. Instead, the effect on residential choice appears to come from a change in preferences among Whites.
    Keywords: Segregation,Intergroup Contact,Race
    Date: 2022–07
  9. By: Michihito Ando (Michihito Ando); Hiroaki Mori (Hiroaki Mori); Shintaro Yamaguchi (Shintaro Yamaguchi)
    Abstract: The evidence for the effects of early childhood education on risky behavior in adolescence is limited. This paper studies the consequences of a reform of a large-scale universal kindergarten program in Japan. Exploiting a staggered expansion of kindergartens across regions, we estimate the effects of the reform using an event study model. Our estimates indicate that the reform significantly reduced juvenile violent arrests and the rate of teenage pregnancy, but we do not find that the reform increased the high school enrolment rate. We suspect that improved non-cognitive skills can account for the reduction of risky behavior in adolescence.
    Keywords: early childhood education, crime, teenage pregnancy
    JEL: H52 I20 I28 J13 J24 K40
    Date: 2022–09
  10. By: Gorea, Denis (European Investment Bank); Kryvtsov, Oleksiy (Bank of Canada); Kudlyak, Marianna (Federal Reserve Bank of San Francisco)
    Abstract: Existing literature documents that house prices respond to monetary policy surprises with a significant delay, taking years to reach their peak response. We present new evidence of a much faster response. We exploit information contained in listings for the residential properties for sale in the United States between 2001 and 2019 from the CoreLogic Multiple Listing Service Dataset. Using high-frequency measures of monetary policy shocks, we document that a one-standard-deviation contractionary monetary policy surprise lowers housing list prices by 0.2–0.3 percent within two weeks—a magnitude on par with the effect on stock prices. House prices respond stronger to the surprises to future rates as compared to the surprise changes in the federal funds rate. Sale prices are mostly pre-determined by list prices and do not independently respond to monetary policy surprises.
    Keywords: house prices, monetary policy, transmission of monetary policy, list and sales prices
    JEL: E52 R21 R31
    Date: 2022–08
  11. By: ASAKAWA Shinsuke; OHTAKE Fumio
    Abstract: This study examines the dynamic effects of school closures caused by COVID-19 on the cognitive and non-cognitive skills of fourth and fifth-grade students in Nara City, Japan. We use triannual math tests and concurrent surveys about students’ motivation to learn math. Using Event Study and Difference-in-Differences methods, we compare cohorts with and without the experience of school closure and find that it reduced cognitive skills (math scores) in the short term. But on average, the scores significantly recovered within six months of schools fully reopening. However, some students with disadvantaged living conditions during and after the closure, and some students in fourth grade, did not fully recover. We also find that non-cognitive skills (student attitudes toward proactive learning in math) were higher than in cohorts which did not experience school closure. Furthermore, the lower the students' achievements in math, the greater the impact of living conditions on students’ mathematical cognitive and non-cognitive skills.
    Date: 2022–08
  12. By: Stijn Baert; Louis Lippens; Hannah Van Borm (-)
    Abstract: In recent decades, researchers have found compelling evidence of discrimination in the labor and housing market toward ethnic minorities based on field experiments using fictitious job applications. However, these findings may be exaggerated as the names used for ethnic minorities in various experiments may have also signaled low socioeconomic class. Therefore, in this study, we perform a name categorization experiment in the United States that yields 56 names associated with six ethnicity groups, which signal different ethnicities and genders but similar social classes. These names should greatly improve the validity of future experiments on ethnic discrimination.
    Keywords: ethnic discrimination, social class, experiments
    JEL: C91 C93 J71
    Date: 2022–08
  13. By: Mette Foged; Linea Hasager; Giovanni Peri; Jacob N. Arendt; Iben Bolvig
    Abstract: Children of refugees are among the most economically disadvantaged youth in several European countries. They are more likely to drop out of school and to commit crime. We show that a reform in Denmark in 1999, that expanded language training for adult refugees and improved their economic integration, had significant intergenerational spillover effects in terms of higher completion rates from lower secondary school and lower juvenile crime rates. The effects on crime are driven by boys who were below school-starting age when their parents were treated.
    JEL: I21 J24 J30 J6
    Date: 2022–08
  14. By: Christoph Albert; Albrecht Glitz; Joan Llull
    Abstract: In this paper, we show that the wage assimilation of immigrants is the result of the intricate interplay between individual skill accumulation and dynamic equilibrium effects in the labor market. When immigrants and natives are imperfect substitutes, increasing immigrant in flows widen the wage gap between them. Using a simple production function framework, we show that this labor market competition channel can explain about one quarter of the large increase in the average immigrant-native wage gap in the United States between the 1960s and 1990s arrival cohorts. Once competition effects and compositional changes in education and region of origin are accounted for, we find that the unobservable skills of newly arriving immigrants increased over time rather than decreased as traditionally argued in the literature. We corroborate this finding by documenting closely matching patterns for immigrants' English language proficiency..
    Keywords: immigrant assimilation, labor market competition, cohort, sizes, imperfect substitution, general and specific skills
    JEL: J21 J22 J31 J61
    Date: 2021–08
  15. By: Samuel Bazzi (University of California - San Diego, NBER, and CEPR); Lisa Cameron (University of Melbourne); Simone Schaner (University of Southern California and NBER); Firman Witoelar (Australian National University)
    Abstract: Job seekers face substantial information frictions, especially in international labor markets where intermediaries match prospective migrants with overseas employers. We conducted a randomized trial in Indonesia to explore how information about intermediary quality shapes migration outcomes. Holding access to information about the return to choosing a high-quality intermediary constant, intermediary-specific quality disclosure reduces the migration rate, cutting use of low-quality providers. Workers who do migrate receive better pre-departure preparation and have improved experiences abroad, despite no change in occupation or destination. These results are not driven by changes in beliefs about average provider quality or the return to migration. Nor does selection explain improved outcomes for those who migrate with quality disclosure. Together, our findings are consistent with an increase in the option value of search: with better ability to differentiate offer quality, workers search longer, select higher-quality intermediaries, and ultimately have better migration experiences.
    Keywords: International migration, information, middlemen, quality disclosure, search
    JEL: F22 O15 D83 L15
    Date: 2022–08
  16. By: Remi Jedwab (George Washington University); Elena Ianchovichina (The World Bank); Federico Haslop (George Washington University)
    Abstract: Cities dramatically vary in their sectoral composition across the world, possibly lending credence to the theory that some cities are production cities with high employment shares of urban tradables while others are consumption cities with high employment shares of urban non-tradables. A model of structural change highlights three paths leading to the rise of consumption cities: resource rents from exporting fuels and mining products, agricultural exports, and premature deindustrialization. These findings appear to be corroborated using both country- and city-level data. Compared to cities in industrialized countries, cities of similar sizes in resource-rich and deindustrializing countries have lower shares of employment in manufacturing, tradable services and the formal sector, and higher shares of employment in non-tradables and the informal sector. Results on the construction of "vanitous" tall buildings provide additional evidence on the relationship between resource exports and consumption cities. Finally, the evidence suggests that having mostly consumption cities might have economic implications for a country.
    Keywords: Structural Change; Urbanization; Consumption Cities; Macro-Development Economics; Industrialization; Natural Resources; Deindustrialization; Construction
    JEL: O11 E24 E26 O13 O14 O18 R1 R12
    Date: 2022–05
  17. By: Nicola Cortinovis; Dongmiao Zhang; Ron Boschma
    Abstract: The literature has drawn little attention to the relationship between industrial dynamics (i.e. the rise and fall of industries) and intra-regional wage inequality. This explorative study examines the relationship between industry dynamics and wage inequality in NUTS-3 regions in the Netherlands in the period 2010-2019. While the literature has shown that related diversification in more complex industries enhances economic growth in regions but also inequality between regions, our study shows that related diversification in less complex industries tends to reduce wage inequality within a region. This implies it remains a policy challenge to combine smart and inclusive growth in regions. Our study also showed that there is no significant relationship between exit of industries and regional inequality, with one exception: unrelated low-complex exits tend to increase intra-regional wage inequality. Overall, these findings suggest that related diversification in less complex industries tends to bring benefits in terms of inclusive growth, while unrelated exits in less complex industries tend to do the opposite.
    Keywords: intra-regional inequality, regional inequality, relatedness, structural change, inclusive growth
    JEL: O18 O31 O33 R11
    Date: 2022–08
  18. By: Luca, Davide
    Abstract: Despite a large body of work on the impacts of institutions on subnational growth and development, economic geographers have, in the last decades, frequently overlooked the role of politics and, in particular, that of national political economies. Drawing on the political science literature, the article argues that studying national political dynamics is still key to understand the cumulative process of uneven regional development. Using data from Turkey over the period 2004-2016, the article shows how national electoral politics and government actions have significantly affected provincial growth patterns. The impact is substantive and increases in election years. Results also suggest that the central government may have influenced sub-national growth trajectories in different ways, including boosting the construction sector and expanding public employment.
    Keywords: distributive politics; electoral politics; politics of development; regional economic growth; Turkey
    JEL: D72 H73 O18 R11
    Date: 2022–07–01
  19. By: Kensuke Ohtake
    Abstract: Two spatial equilibria, agglomeration and dispersion, in a continuous space core-periphery model are examined to discuss which equilibrium is socially preferred. It is shown that when transport cost is lower than a critical value, the agglomeration equilibrium is preferable in the sense of Scitovszky, while when the transport cost is above the critical value, the two equilibria can not be ordered in the sense of Scitovszky.
    Date: 2022–08
  20. By: Andrea Albanese; Adrian Nieto Castro; Konstantinos Tatsiramos
    Abstract: We study the effect of childbirth on local and non-local employment dynamics for both men and women using Belgian social security and geo-location data. Applying an event-study design that accounts for treatment effect heterogeneity, we show that 75 percent of the effect of the birth of a first child on the overall gender gap in employment is accounted for by gender disparities in non-local employment, with mothers being more likely to give up non-local employment compared to fathers. This gender specialisation is mostly driven by opposing job location responses of men and women to individual, household and regional factors. On the one hand, men do not give up non-local employment after childbirth when they are employed in a high-paid job, have a partner who is not participating in the labour market or experience adverse local labour market conditions, suggesting that fathers trade off better employment opportunities with longer commutes. On the other hand, women give up non-local jobs regardless of their earnings level, their partner’s labour market status and local economic conditions, which is consistent with mothers specialising in childcare provision compared to fathers.
    Keywords: Gender gap; childbirth; job location; cross-border employment; specialisation
    JEL: C21 C23 J13 J16 J60
    Date: 2022–09
  21. By: Murat Kirdar (Murat Güray Kırdar); İsmet Koç (İsmet Koç); Meltem DayıoÄŸlu (Meltem DayıoÄŸlu)
    Abstract: Although school integration of the children of economic migrants in developed countries is well-studied in the literature, little evidence based on large-scale representative data exists on the school integration of refugee children—many of whom live in low- or middle-income countries. This study focuses on Syrian refugee children in Turkey and examines the underlying causes of native– refugee differences in school enrolment. For this purpose, we use the 2018 Turkish Demographic and Health Survey, which includes a representative sample of Syrian refugee households. Accounting for a rich set of socioeconomic variables, we find that the native–refugee gap in school enrolment drops by half for boys and two-thirds for girls, but the gap persists for both genders. When we restrict the sample to refugees who arrived in Turkey at or before age 8 and account for socioeconomic differences, the native–refugee gap completely vanishes for both boys and girls, indicating that school integration of refugee children in Turkey has been possible conditional on their age at arrival. We also find that the timing of boys’ school dropouts coincides with their entry into the labor market, whereas girls’ dropouts mostly occur before marriage age. Finally, we reveal important differences between natives and refugees, as well as early and late arrivers among refugees, in never starting school, grade progression and repetition, dropping out, and grade for age.
    Keywords: refugees; education; school enrollment; integration; child labor; marriage; Turkey
    JEL: F22 I21 I28
    Date: 2022–08
  22. By: Cheng-Tao Tang (IUJ Research Institutey, International University of Japan); Chun Yee Wong (IUJ Research Institutey, International University of Japan); Orelie Bathan Delas Alas
    Abstract: This paper investigates the effects of intergovernmental transfers on the development outcomes by exploiting a formula-based transfer scheme among the Philippine municipalities and cities. The results suggest that the household disposable income per capita increases 9.6 percent in the long run as a result of extra transfers of 1000 Philippine pesos per capita in the Philippine local governments. However, the poverty rate increases by around 5 percentage points in the long run. The income gains, associated with higher poverty rate, mainly occur in small and less-developed LGUs (i.e., municipalities). Furthermore, there exist a large stimulatory effect on local spending and a small effect on local tax revenue reduction due to extra grant transfers.
    Keywords: Intergovernmental transfer, income, poverty, instrumental variable, the Philippines
    Date: 2022–08
  23. By: Lyons, Paul (Central Bank of Ireland); Rice, Jonathan (Central Bank of Ireland)
    Abstract: Risk weighted assets for Irish residential mortgage lending are high in a European context. In this note, we explore the main contributors to these higher mortgage risk weights. One key driver is the underlying credit quality of the stock of outstanding mortgages. Mortgage default rates are higher in Ireland than many other European countries and this is true both historically and over recent years. The majority of recent defaults stem from pre-global financial crisis originated loans, highlighting the central role of these loans issued under weaker lending standards in pushing up risk weights. A second key driver of higher mortgage risk weights relates to higher modelled loss-givendefault. Irish loss rates on mortgage defaults that occurred in the financial crisis years (2009-2013) are more severe than that observed in most other EU countries. This is predominately due to the longer time to resolve defaulted loans in Ireland, associated with a particularly severe crisis. Moving forward, as banks originate new loans, with lower probability of default, these will replace crisis period loans and will place downward pressure on mortgage risk weights. Regulatory reforms such as the introduction of the ‘output floor’ under Basel III will narrow the gap between overall Irish risk weights and those in other countries. Nevertheless, the risk weight applicable to Irish mortgages will likely remain at the higher end of EU comparisons over the medium term.
    Date: 2022–02
  24. By: Delgado-Prieto, Lukas
    Abstract: This paper studies the labor market impacts of Venezuelan immigrants in Colombia. Exploiting spatial variation in exposure, I nd a negative e ect on native wages driven by the informal sector (where immigrants are concentrated) and a reduction in native employment in the formal sector (where the minimum wage binds for many workers). To explain this asymmetry, I build a model in which rms substitute formal for informal labor in response to lower informal wages. Consistent with the model's predictions, I document that the increase in informality is driven by small rms that use both labor types in production.
    Keywords: Immigration; Event study; Labor market; Informality
    JEL: F22 O15 O17 R23
    Date: 2022–08
  25. By: Köktaş, A. Murat; Apaydın, Şükrü; Pirçekli, Koray
    Abstract: This study aims to analyze the impact of public education expenditures on regional economic development in Turkey. For this purpose, we test the hypothesis that there is a strong relationship between education expenditures and economic growth/development using static and dynamic panel data (system GMM) methods. In the analysis, we use annual data on central government education expenditures and regional GDP per capita data for the period 2004– 2019 for 81 provinces at NUTS-III level. The findings of the study revealed a positive relationship between central government education expenditures and regional development. In other words, regional development accelerates if education expenditures increase. However, the magnitude of the effect is not as strong as is expressed in the hypothesis: a ten percent increase in education spending only increases economic development by 1.1 percent.
    Keywords: Public education expenditures, Regional development, Static panel data, Dynamic panel data.
    JEL: E62 O1 R1 R13 R58
    Date: 2022
  26. By: Sezer, Ayse Hazal (Tilburg University, Center For Economic Research)
    Keywords: School Shootings; wages; Intergenerational Mobility
    Date: 2022
  27. By: Qian, Xiaodong; Xiao, Runhua; Jaller, Miguel; Chen, Shenyang
    Abstract: Motor vehicle crashes are the leading cause of accidental deaths in the US. In 2020, 38,824 people lost their lives in car-related crashes. Bicyclists and pedestrians are particularly susceptible—7,448 of these “vulnerable road users” were killed nationwide in 2020, and 29% of all reported crash-related fatalities in California were vulnerable road users. A variety of intelligent vehicle technologies hold promise for improving bicycle and pedestrian safety. Sensors in vehicles and/or used by vulnerable road users themselves could alert travelers of potential conflicts, giving them more time to react. However, these technologies all have unique technical, operational, and financial characteristics, and they might perform differently in different environmental conditions and at different levels of deployment. Little research has been done on how these technologies might affect safety. Researchers at the University of California, Davis combined aggregate historical crash data analysis and micro transportation simulation to examine the safety impacts of four different intelligent vehicle technologies: blind spot detection, a vulnerable-road-user beacon system carried by bicyclists or pedestrians, bicycle/pedestrian-to-vehicle communication, and intersection safety. View the NCST Project Webpage
    Keywords: Engineering, Social and Behavioral Sciences, Intelligent vehicles, Sight distance, Signalized intersections, Traffic safety, Traffic simulation, Traffic volume, Vulnerable road user
    Date: 2022–08–01
  28. By: Emil Coman (Health Disparities Institute, UConn School of Medicine)
    Abstract: We demonstrate the powers of the underutilized Stata spatial analytical module Sp, with an eye on the broader and older path analytic modeling framework (gsem and sem, which stands for structural equation modeling [SEM]). Spatial aggregate data have become widely available, yet analysts often ignore their spatial structure (regions have neighbors, and neighboring regions are more similar than by chance). Research often reports artificial naïve/a-spatial associations that ignore this spatial nonindependence. We analyze public data from the CDC, on social vulnerability and life expectancy, at census tract level, using the state of CT in the U.S. as illustration. We compare (1) the spregress modeling options against SEM models that include the outcome’s spatial lag as copredictor; (2) a two-step mediation model with spregress against SEM with indirect effects; (3) the total effects of a spatial predictor on a spatial outcome estimated with spregress by adding up effects from neighbors to each region (and back), against nonrecursive SEM models that use spatial lag versions of each spatial variable as instrumental variables. We point to several extensions of spatial modeling into the SEM approach, like spatial factor analysis and spatial "causal" mediation models, and contrast Stata’s utilities against GeoDa and Mplus comparable models.
    Date: 2022–08–11
  29. By: Mamadou Yauck
    Abstract: This paper deals with the estimation of exogeneous peer effects for partially observed networks under the new inferential paradigm of design identification, which characterizes the missing data challenge arising with sampled networks with the central idea that two full data versions which are topologically compatible with the observed data may give rise to two different probability distributions. We show that peer effects cannot be identified by design when network links between sampled and unsampled units are not observed. Under realistic modeling conditions, and under the assumption that sampled units report on the size of their network of contacts, the asymptotic bias arising from estimating peer effects with incomplete network data is characterized, and a bias-corrected estimator is proposed. The finite sample performance of our methodology is investigated via simulations.
    Date: 2022–08
  30. By: Gaffney, Edward (Central Bank of Ireland); Hennessy, Christina (Central Bank of Ireland); McCann, Feargal (Central Bank of Ireland)
    Abstract: In this Note, we outline the growing role that non-bank lenders are playing in the Irish mortgage market. We show that market share of new lending has increased from 3 per cent in 2018 to 13 per cent in 2021. Non-bank lending is currently concentrated in the buy-to-let and refinance segments of the market, when compared to lending by retail banks. On loan pricing, we show that non-banks had higher interest rates in 2018, but have reduced rates to the point where average interest rates were lower than retail banks in 2021. Among home buyers, customers of non-banks and retail banks have similar characteristics, with the exception that non-bank customers access mortgage finance almost uniquely through mortgage brokers. We complement the data with a discussion of the economic benefits that non-bank lending can bring, as well as sources of potential financial stability risks.
    Date: 2022–05
  31. By: Hans Henrik Sievertsen
    Abstract: Assessments such as standardized tests and teacher evaluations of students' classroom participation are central elements of most educational systems. Assessments inform the student, parent, teacher, and school about the student learning progress. Individuals use the information to adjust their study efforts and to make guide their course choice. Schools and teachers use the information to evaluate effectiveness and inputs. Assessments are also used to sort students into tracks, educational programmes, and on the labor market. Policymakers use assessments to reward or penalise schools and parents use assessment results to select schools. Consequently, assessments incentivize the individual, the teacher, and the school to do well. Because assessments play an important role in individuals' educational careers, either through the information or the incentive channel, they are also important for efficiency, equity, and well-being. The information channel is important for ensuring the most efficient human capital investments: students learn about the returns and costs of effort investments and about their abilities and comparative advantages. However, because students are sorted into educational programs and on the labor market based on assessment results, students optimal educational investment might not equal their optimal human capital investment because of the signaling value. Biases in assessments and heterogeneity in access to assessments are sources of inequality in education according to gender, origin, and socioeconomic background. These sources have long-running implications for equality and opportunity. Finally, because assessment results also carry important consequences for individuals' educational opportunities and on the labor market, they are a source of stress and reduced well-being.
    Date: 2022–08
  32. By: Nshimiyimana Providence; Sikubwabo Cyprien
    Abstract: This study aimed at assessing the contribution of instructional supervision practices on students’ academic performance in private secondary schools. The study was guided by three objectives which are: to assess the instructional supervision practices by school authorities’ private secondary schools, in Burera District; to analyse the learners’ academic performance in private secondary schools, in Burera District; to assess the contribution of instructional supervision, by school authorities, in improving learners’ academic performance in Burera District. The questionnaire was the main instrument of data collection and it was distributed to school mangers, deputy school managers in charge of studies and to teachers from private schools located in Burera District. The study used descriptive design as a research design. Quantitative method was used, and the data were analysed using Statistical Package for Social Science (SPSS) and then the findings were presented using tables. The first objective was to assess instructional supervision practices in private schools of Burera District during the period of 2017-2019. The results from the study revealed that instructional supervision practices by school authorities are various and effective in teaching and learning activities in private schools. The second objective of the study aimed at analysing students’ academic performance in private schools. The findings have shown that respondents had different views but the majority declared that it was good in the last three years. The third objective of this research was to assess contribution of instructional supervision practices on students’ academic performance in private schools in Burera District during the period of 2017-2019. The findings showed that instructional supervision practices done by school authorities contribute greatly on students’ academic performance. Ministry of Education through its institutions such as Rwanda TVET Board (RTB) and Rwanda Education Board (REB) together with Education Directorates at district level should continue to emphasize on practicing instructional supervisions by school authorities and provide school authorities with capacity building (training) on instructional supervision practices. Schools should continue to practice instructional supervisions to improve students’ academic performance. Teachers should continue to improve their teaching and learning methodologies for students’ academic performance improvement. Key words: Academic Performance; Instruction; Instructional Supervision Practices; Private Secondary School; Supervision and School authority
    Date: 2022–03
  33. By: Seth Morgan; Alexander Pfaff; Julien Wolfersberger (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: For over a century, starting with the work of Alfred Marshall (and including in resource economics), economic geography has emphasized the productivity of dense urban agglomerations. Yet little attention goes to one key policy implication of economic geography's core mechanisms: Environmental policies can aid economic development, per se—not hurting the economy to help the environment but advancing both objectives. We review mechanisms from economic geography which imply that environmental policies can deliver such win-wins: influences upon agglomeration of long-standing natural conditions, like usable bays, which long were perceived as fixed yet now are being shifted by global environmental quality; agglomeration's effects on other influential conditions, like urban environmental quality; and the effects of rural nvironmental quality on the flows to cities of people and environmental quality. Finally, we consider a geographic policy typology in asking why society leaves money on the table by failing to promote environmental policies despite the potential win-wins that we highlight.
    Keywords: economic geography,development,environment,natural resources
    Date: 2022–10
  34. By: Marcelo Delajara (Anker Research Institute); Rocío Espinosa (Espinosa Yglesias Research Centre (CEEY)); Claudia Fonseca (Espinosa Yglesias Research Centre (CEEY)); Martha Anker (Anker Research Institute); Richard Anker (Anker Research Institute)
    Abstract: We present estimates of the living wage in the municipalities of Ensenada and San Quintín, which are located in the center and south of Baja California, México. Economic activity in these municipalities is concentrated in agriculture and fishing, and to a much lesser extent in industry. The poverty rates are considerably higher than average for Baja California, but somewhat lower than average for Mexico. In the calculation, we used the Anker and Anker (2017) methodology and data from both primary and secondary sources. We obtained food prices and housing costs directly through a price survey in the two areas studied. We inferred the costs of goods and services other than food and housing from secondary data sources. These secondary data sources, mainly household income and expenditure surveys, do not distinguish between municipalities, but do distinguish between urban and rural areas. The fact that Ensenada is predominantly urban and San Quintín rural and small towns, allowed us to obtain estimates of these costs for each municipality. We show that the living wage in the municipality of Ensenada is MXN 15,929 (US$ 800) per month, which consists of take-home pay of MXN 13,539 (US$ 680) and MXN 2,389 (US$ 120) in income tax and social security. For San Quintín, the living wage is MXN 15,009 (US$ 754) per month consisting of take-home pay of MXN 12,835 (US$ 645) with MXN 2,174 (US$ 109) in social security contribution and income tax. Although these values are similar with only a 5.5% difference between them, we recommend using the living wage that corresponds to each jurisdiction. However, for those companies that have workers in both municipalities and that consider it impractical to have, or cannot pay, two different living wages, we recommend using the higher estimate to ensure that the wage is sufficient to accommodate all workers in the study area.
    Keywords: Living wage, Anker methodology, decent work, Baja California, Mexico.
    JEL: D10 J13 J22 J30 J80
    Date: 2021–01
  35. By: Gregory-Smith, Ian (University of Sheffield); Bryson, Alex (University College London); Gomez, Rafael (University of Toronto)
    Abstract: This paper examines discrimination in the NFL draft. The NFL is a favourable empirical setting to examine the role of skin colour because franchise selectors are required to make rank-order judgements of players based on noisy signals of future productivity. Since wages are tightly related to the rank-order of the draft for the first four years of a player's career, even if discrimination plays only a marginal role in selection, there could be a large discriminatory impact. We observe large unadjusted racial differences in drafting. However, much of the variation is explained by Black and White players selecting into different playing positions. Conditional upon a large set of control variables, including athletic performance at a marque selection event (the NFL combine), we do not find robust evidence of racial discrimination in NFL drafting between 2000 and 2018.
    Keywords: discrimination, race, NFL
    JEL: J15 J24
    Date: 2022–08
  36. By: Anna Laura Baraldi (Department of Economics, University of Campania); Erasmo Pagani (Department of Law, University of Naples Federico II); Marco Stimolo (Department of Economics, University of Campania)
    Abstract: Organized crime reinforces its corrupting influence on politics through violent intimidation. Anti-crime measures that increase the cost of corruption but not of the exercise of violence might accordingly lead mafia-style organizations to retaliate by resorting to violence in lieu of bribery. On the other hand, anti-corruption measures might also induce criminal clans to go inactive, owing to the higher “entry barriers” to the “business” of influencing politics, which would reduce violence. To determine which of these possible effects is prevalent, we undertake an empirical assessment of the impact of city council dissolution for mafia influence as prescribed by Decree Law 164/1991 in discouraging violence against politicians in the period 2010-2019. Our difference-in-differences analysis shows that in the dissolved municipalities the enforcement of the Law reduces violence, the effect persisting for two electoral rounds. Also, we find spillover effects moderating violence in undissolved neighboring municipalities. These findings are robust to a series of endogeneity tests.
    Keywords: Organized Crime, Violence, Anti-corruption measures, Spillovers
    JEL: C25 D73 D78 I38 K42
    Date: 2022–07
  37. By: INOUE Hiroyasu; MURASE Yohsuke; TODO Yasuyuki
    Abstract: To prevent the spread of COVID-19, many governments have imposed regional or national lockdowns, resulting in economic stagnation across broad areas because the shock of the lockdown propagated to other regions through supply chains. Using supply-chain data of 1.6 million firms in Japan, this study examines how the economic effect of lockdowns in multiple regions interact with each other, particularly focusing on possible differences between synchronous and asynchronous lockdowns. Our major findings are twofold. First, when multiple regions coordinate the timing of their lockdowns, particularly when they impose and lift lockdowns synchronously, their economic losses are smaller than when they do so asynchronously without any coordination. Second, the benefit of synchronous lockdowns in multiple regions is larger when they are connected through a larger number of supply-chain links. Our results suggest a need for policy coordination across regions and countries when lockdowns are imposed.
    Date: 2022–08
  38. By: Fabling, Richard (Independent Researcher); Maré, David C. (Motu Economic and Public Policy Research Trust); Stevens, Philip
    Abstract: We use linked employer-employee microdata for New Zealand to examine the relationship between firm-level productivity, wages and workforce composition. Jointly estimating production functions and firm- level wage bill equations, we compare migrant workers with NZ-born workers, through the lens of a derived "productivity-wage gap" that captures the difference in relative contribution to output and the wage bill. Whether we look at all industries using a common production function, or separately estimate results for the five largest sectors, we find that skilled and long-term migrants make contributions to output that exceed moderately-skilled NZ-born workers, with that higher contribution likely being due to a mix of skill differences and/or effort which is largely reflected in higher wages. Conversely, migrants that are not on skilled visas are associated with lower output and lower wages than moderately-skilled NZ-born, also consistent with a skills/effort narrative. The share of employment for long-term migrants has grown over time (from 2005 to 2019) and we show that their relative contribution to output appears to be increasing over the same period. Finally, we present tentative evidence that high-skilled NZ-born workers make a stronger contribution to output when they work in firms with higher migrant shares, which is suggestive of complementarities between the two groups or, at least, positive mutual sorting of these groups into higher productivity firms.
    Keywords: migrant labour, firm productivity, worker sorting, wage determinants, quality-adjusted labour input
    JEL: D24 J15 J31
    Date: 2022–08
  39. By: Jordan Bisset; Dirk Czarnitzki; Thorsten Doherr
    Abstract: We follow the migration patterns of European inventors and find evidence of a novel emigration determinant: policy uncertainty. We find that policy uncertainty raises the rate of inventor emigration by a notable magnitude. With a one standard deviation in the policy uncertainty of the home country, relative to the possible destination countries, the rate of inventor emigration increases by nearly 40%. Migrating inventors are subsequently exposed to lower levels of policy uncertainty in the destination country emphasising that uncertainty motivated the move. We conclude that these effects may have strong welfare implications at the aggregate level.
    Keywords: Out-Migration, Brain Drain, Uncertainty, Inventors
    Date: 2022–08–22
  40. By: Michael Luca; Elizaveta Pronkina; Michelangelo Rossi
    Abstract: We present evidence that discrimination against Asian-American Airbnb users sharply increased at the start of the COVID-19 pandemic. Using a DiD approach, we find that hosts with distinctively Asian names experienced a 12 percent decline in guests relative to hosts with distinctively White names. In contrast, we do not see spikes in discrimination against Black or Hispanic hosts. Our results suggest that the rise in anti-Asian sentiment in 2020 translated to discrimination in economic activity, highlighting the ways in which scapegoating minority groups can shape markets. Our results also point to the role of platform design choices in enabling discrimination.
    JEL: J15
    Date: 2022–08
  41. By: Ngabonziza Jean Claude; Sikubwabo Cyprien
    Abstract: The purpose of this study was to investigate the causes of school dropout in nine years’ basic education schools in Rwanda and their possible solutions. Specifically, the study sought to examine students’ characteristics leading to school dropout in Nine Years Basic Education in Rutsiro District, to investigate school-based causes of school dropout in Nine Years Basic Education in Rutsiro District, to find out home-based causes of school dropout in Nine Years Basic Education in Rutsiro District and to find out possible solutions to school dropout in Nine Years Basic Education in Rutsiro District. The study was guided by Social capital theory and it adopted a mixed approach. The study was carried out in 10 selected Nine Years Basic education schools in Rutsiro District. The target population of the study comprised of 762 subjects including 672 dropout students, 10 headmasters, 10 DOSs and 10 Discipline Managers. The study used a sample of 60 participants including 30 dropout students, 10 headmasters, 10 DOSs and 10 Discipline Managers. The 10 schools were selected using systematic sampling; the sample size for students was selected using purposive sampling, the sample size for headmasters, DOSs and Discipline Managers was selected using census sampling technique. The data was collected using a structured questionnaire, interview and documentary review. The data was analyzed using descriptive statistics (percentages, frequencies, means and standard deviation) and thematic analysis. The results were presented in tables, figures and texts. The findings revealed that the main causes of school dropout in Rwandan nine years basic education schools are from the student themselves (Negative attitudes towards schooling, Child labor, Unwanted pregnancies, juvenile delinquency, being an orphan, peer influence, poor performance), from the school factors (School manager’s indifference towards the problem of dropout, Lack of counseling services, harsh punishments) and from their families (Domestic violence, Poverty in the family, Irresponsible parents and Alcoholic parents). it was also concluded that possible solutions to the issue of dropout are: Sensitize parents to care for their children’s education, Develop prevention and intervention services at school, Set up and developing counseling and guidance services in schools, Provide rewards to students with good class attendance and Involve each school staff in fighting against school dropout.The study recommended that the Government of Rwanda should find out strong strategies to increase young people’s motivation to learning, continuously track all the people who are responsible for child labor and unwanted pregnancies among young children in Rwanda, punish seriously the school managers who remain indifferent towards the problem of school dropout, always be proactive in fighting against school dropout and ensure a joint effort or collaboration in fighting against school dropout. The study recommended that school managers should always involve all the school staff in fighting against ISSN 2277-7733 Volume 10 Issue 4, March 2022 SCHOOL DROPOUT Voice of Research | Volume 10 Issue 4, March 2022 | 154 school dropout. It was finally recommended that the Government of Rwanda and school managers should manage to put into consideration all the strategies to fight against school dropout emanated from the findings of this study. Key words: School dropout and Nine years basic education
    Date: 2022–03
  42. By: Giacomo De Giorgi; Costanza Naguib
    Abstract: We analyze the impact of credit default on individual trajectories. Using a proprietary dataset for the years 2004-2020, we find that after default individuals relocate to cheaper areas. Importantly, default has long-lasting negative effects on income, credit score, total credit limit, and home-ownership status.
    Keywords: mobility, bankruptcy, default, credit, income
    JEL: J61 G51 D12
    Date: 2022–08
  43. By: Kamila Cygan-Rehm
    Abstract: This study estimates the lifetime effects of lost instructional time in the classroom on labor market performance. For identification, I use historical shifts in the school year schedule in Germany, which substantially shortened the duration of the affected school years with no adjustments in the core curriculum. The lost in-school instruction was mainly compensated for by assigning additional homework. Applying a difference-in-differences design to social security records, I find adverse effects of the policy on earnings and employment over nearly the entire occupational career. Unfavorable impacts on human capital are a plausible mechanism behind the deteriorated labor market outcomes. The earnings losses are driven by men, for whom the policy also elevated income inequality due to larger harm occurring at the bottom of the income distribution.
    Keywords: instructional time, education, earnings, skills, Germany
    JEL: I21 I26 J24 J17
    Date: 2022
  44. By: Amodio, Francesco (McGill University); Medina, Pamela (University of Toronto); Morlacco, Monica (University of Southern California)
    Abstract: This paper shows that self-employment opportunities shape the market power of employers in low-income countries, with implications for industrial development. Using data from Peru, we document substantial employer concentration and high self-employment rates across manufacturing local labor markets. Where employer concentration is higher, wages are lower, and self-employment is more prevalent but less remunerative. To interpret these facts, we build a general equilibrium model where labor market power in each market arises from (i) strategic interactions among employers and (ii) sorting of heterogeneous workers across wage work and self-employment. We structurally estimate the model and quantify the relevance of these mechanisms for rent-sharing between workers and firms and for the effect of policies promoting manufacturing wage employment. We show that changes in concentration magnify the pass-through of productivity and profitability shocks to wages, but worker sorting across wage and self-employment mitigates these effects. We find that policies that increase firm productivity are more effective in expanding wage employment and increasing workers' earnings than other interventions that improve workers' skills or decrease firm entry cost.
    Keywords: labor market power, monopsony, self-employment, sorting, development
    JEL: J2 J3 J42 L10 O14 O54
    Date: 2022–08
  45. By: Howard Kunreuther; Artem Demidov; Mark Pauly; Matija Turcic; Michael Wilson
    Abstract: Much of the property damage from wildfires occurs when fires spread into built up areas, the wildland urban interface. Fire spread within such areas occurs from house to house, as embers from one burning structure ignite neighboring ones. Actions can be taken to mitigate the chances that a given house will ignite. This size and configuration of this external benefit depends on the assumed process of fire spread. In this paper we use a simulation model based on plausible parameters to illustrate likely patterns of marginal benefit from mitigation as a function of building density and effectiveness of mitigation. The model indicates that a common pattern is for marginal benefit to unmitigated neighbors to be low at low levels of community mitigation, rise to a maximum, and then fall quickly to a low level. This maximum marginal benefit (known as “herd immunity”) helps to indicate the optimal pattern of mitigation in a community. However individual owners in Nash equilibrium will not take the spillover benefits into account. We use the distribution of house values in a California community relative to an assumed cost of mitigation to illustrate in the model the level of mitigation owners will undertake when they make independent investment decisions, and the corrective actions that can lead to the social optimum. We discuss the use of rules or subsidies for insurance premium adjustments based on mitigation activities. Because it will rarely be optimal to mitigate all homes, the optimal solution may involve unequal treatment and raise equity issues.
    JEL: H0 Q0
    Date: 2022–08
  46. By: Mr. Sandeep Saxena
    Abstract: Subnational governments can create sizable fiscal risks for central governments. In addition to impacting service delivery at the grassroots level, unsustainable subnational finances can be a continuous drain on central resources. The need for stronger public financial management systems and capacities to analyze and manage risks at the subnational government level cannot be overemphasized. Central governments need to develop sound institutional mechanisms to systematically monitor the health of subnational finances to be able to proactively manage associated risks. This How to Note provides a framework for central governments that seek to assess and manage fiscal risks stemming from weak subnational finances. It analyzes the sources of subnational finance vulnerabilities and argues that central governments would benefit from putting in place the following: (1) a stronger regulatory framework, (2) improved fiscal reporting, and (3) enhanced central oversight. The lessons distilled from the international experience are particularly useful for developing economies where the management of risks can be improved.
    Keywords: fiscal risks; contingent liabilities; subnational debt; public financial management (PFM); fiscal institutions; public debt; fiscal policy; budget planning; subnational finances
    Date: 2022–09–01
  47. By: Carlo Lombardo (CEDLAS-IIE-FCE-UNLP & CONICET); Lucía Ramirez-Veira (CEDLAS-IIE-FCE-UNLP & CONICET); Leonardo Gasparini (CEDLAS-IIE-FCE-UNLP & CONICET)
    Abstract: Minimum wage (MW) policies are widespread in the developing world and yet their effects are still unclear. In this paper we explore the effect of national MW policies in Latin America’s six largest economies by exploiting the heterogeneity in the bite of the national minimum wage across local labor markets and over time. We find evidence that the MW has a compression effect on the wage distribution of formal workers. The effect was particularly large during the 2000s, a decade of sustained growth and strong labor markets. In contrast, the effect seems to vanish in the 2010s, a decade of much weaker labor markets. We also find suggestive evidence of a lighthouse effect: the MW seems to have an equalizing effect also on the wage distribution of informal workers.
    JEL: J22 J31 J38 K31
    Date: 2022–09
  48. By: Kyle HIGHAM; NAGAOKA Sadao
    Abstract: While language barriers are well-known obstacles to knowledge diffusion, quantitative research on this topic is sparse. In this work, we attempt to fill this gap by providing causal evidence on their effects on the speed of knowledge diffusion by exploiting the introduction of pre-grant publications by the American Inventors Protection Act (AIPA) in 2000. We find that this policy significantly accelerated, relative to Japanese inventors, US inventors’ use of Japan-originating technical knowledge in their patents. Our analysis controls for biases of patent citations as proxies of knowledge flow, including preference for citing local prior art. Consistent with incentives for translation, this acceleration is much larger for small firms and the firms with little investment in the Japanese market. Consistent with high uncertainty of foreign patents before translation, we see much larger effects of the AIPA on the patent applications with higher quality. Our findings suggest that pre-grant publication provides a significant public good for cumulative innovation through earlier translations of foreign patents.
    Date: 2022–08
  49. By: Lara Bartels (University of Kassel); Martin Kesternich (University of Kassel)
    Abstract: Cities are increasingly hold accountable for climate action. By demonstrating their pro-environmentality through own climate-related activities, they not at least aspire to encourage individual climate protection efforts. Based on standard economic theory there is little reason to assume that this is a promising strategy. Financed by taxpayers’ money, cities’ contributions are considered as substitutes that crowd-out private contributions to the same public good. Inspired by research on providing information on reference group behavior, we challenge this argument and conduct a framed-field experiment to analyze the impact of reference group information on the voluntary provision of a green public good. We investigate whether information on previous contributions by fellow citizens or the city affect individual contributions. We do not find statistical evidence that city-level information crowds-out additional individual contributions. A reference to fellow citizens significantly increases the share of contributors as it attracts subjects that are not per-se pro-environmentally oriented.
    Keywords: Voluntary provision of environmental public goods; Social Norms; Crowding-out; Willingness to pay; Framed-field experiment
    JEL: C93 C83 D9 H41 Q54
    Date: 2022
  50. By: Nichola Lowe (University of North Carolina at Chapel Hill); Greg Schrock (Portland State University); Matthew D. Wilson (Great Cities Institute, University of Illinois Chicago); Rumana Rabbani (University of North Carolina at Chapel Hill); Allison Forbes (Center for Regional Economic Competitiveness)
    Abstract: As the U.S. economy rebounds from the COVID-19 pandemic, strategies that promote long-term transformation toward high-quality jobs will be critical. This includes workplace-improving interventions that enable employers to upgrade existing jobs, often while enhancing their own competitive position. This paper focuses on the Manufacturing Extension Partnership, a national network of federally funded centers that support small and medium-sized manufacturing firms. We document the range of workforce- and workplace-enhancing strategies that MEP centers have adopted since the network’s inception in the mid-1990s. While workforce development is unevenly implemented across today’s MEP network, leading centers within the network are devising transformative strategies that shape underlying business practices in ways that can improve the quality of front-line manufacturing jobs. The pandemic recovery, along with federal commitment to reenergize domestic supply chains, presents an opportunity to establish NIST-MEP as a national workforce-development leader while also strengthening localized institutional partnerships to center that effort on inclusive economic development and recovery.
    Keywords: Industrial policy, industry studies,economic development policy, workforce development policy
    JEL: L6 R11 J81
    Date: 2022–08
  51. By: Ahrsjö, Ulrika (Department of Economics, Stockholm University); Niknami, Susan (Swedish Institute for Social Research, Stockholm University); Palme, Mårten (Department of Economics, Stockholm University)
    Abstract: We explore the role of identity along multiple dimensions in high-stakes decisionmaking. Our data contain information about demographic and socioeconomic indicators for randomly assigned jurors and defendants in a Swedish court. Our results show that defendants are 15 percent less likely to get a prison sentence if they and the jurors belong to the same identity-forming groups. Socioeconomic background and demographic attributes are at least as important, and combining several identities produces stronger effects.
    Keywords: Crime
    Date: 2022–07–01
  52. By: Fujiwara, Daniel; Dass, Daniel; King, Emily; Vriend, Myriam; Houston, Richard; Keohane, Kieran
    Abstract: As the infrastructure and built environment sectors shift from traditional economic valuation towards more holistic approaches, projects are being designed, built and evaluated in new ways. An important emerging technique for the economic evaluation of projects is social value measurement. This paper sets out the foundations for the social value measurement techniques that underpin the methods and frameworks developed in central governments and by multilateral and international organisations and describes how these can be adapted to value the broader societal and environmental effects of infrastructure and built environment projects. The paper provides practical evidence of social value measurement in valuing heritage impacts for Stonehenge World Heritage Site as well as presenting a detailed account of the foundations of cost-benefit analysis as a tool for social value measurement and non-market valuation.
    Keywords: built environment; infrastructure planning; public policy; social impact
    JEL: R14 J01
    Date: 2022–08–04
  53. By: Gebrial, Dalia
    Abstract: The critical platform studies literature has built a compelling picture of how techniques like worker (mis)classification, algorithmic management and workforce atomisation lie at the heart of how ‘work on-demand via apps’ actively restructure labour. Much of this emerging scholarship identifies that platform workforces are predominantly comprised of migrant and racially minoritised workers. However, few studies theorise migration and race as structuring logics of the platform model and the precarity it engenders. This paper addresses this gap by exploring how the platform economy – specifically work on-demand via apps – both shapes and is shaped by historically contingent contexts of racialisation, and their constitutive processes such as embodiment and immigration policy/rhetoric. Beyond identifying the over-representation of racial minorities in the platform economy, it argues that processes of racialisation have been crucial at every stage of the platform economy's rise to dominance, and therefore constitutes a key organising principle of platform capitalism – hence the term ‘racial platform capitalism’. In doing so, this paper draws on the racial capitalism literature, to situate key platform techniques such as worker (mis)classification and algorithmic management as forms of racial practice, deployed to (re-)organise surplus urban labour-power following the 2008 financial crisis. This framework will be explored through an ethnographic study of Uber's rise in London. Through this, the paper demonstrates a co-constitutive relationship, where the conditions of minoritised workers in a global city like London post-2008, and the political economy of platform companies can be said to have co-produced one another.
    Keywords: Racial capitalism; migration; platform labour; precarity; urbanism; Sage deal
    JEL: R14 J01 J1
    Date: 2022–08–01
  54. By: Bonilla-Mejía, Leonardo; Ruiz-Sánchez, María Alejandra; Villamizar-Villegas, Mauricio
    Abstract: This paper studies the impact of the Covid-19 pandemic on corporate credit in Colombia. We first exploit the geographic and temporal variation in the disease spread to estimate the effect of local exposure to the virus on credit. Our estimates indicate that neither local exposure to the virus, nor the sector-specific mobility restrictions had an impact on credit. We then assess the role of bank supply shocks. We create a measure of bank exposure, reflecting the geographic heterogeneity in pandemic vulnerability and deposits, and estimate its effect on credit. Results indicate that bank-supply shocks account for a credit contraction of approximately 5.2%. To further disentangle the role of bank supply shock, we control for the interaction between firm and time fixed-effects and restrict the sample to municipalities that were relatively spared from the pandemic, finding similar results. Most of the bank supply effects are driven by firms that are small, young, and have relatively low liquidity.
    Keywords: Credit; Covid-19 Pandemic; Bank liquidity
    JEL: G01 G21
    Date: 2022–08
  55. By: Filippo Passerini (Catholic University of Milan)
    Abstract: I leverage on a matched employer-employee database drawn by an INPS archive representative of the universe of Italian private sector workers to investigate how labor market concentration affects wages and employment. I compute concentration measures relying on new hires, finding that LMs aren’t on average concentrated, despite showing relevant heterogeneity. I then investigate the relationship between concentration and wages and employment, finding negative correlations. I then develop an IV strategy based on M&As to explore whether mergers increase concentration at a market-level and to find a reliable source of variation to identify their effect. First-stage estimates indicate that only mergers raise concentration significantly, while other events don’t. Estimated elasticities with different IVs range between -0.09 and -0.14 p.p for wages and between -0.68 and -0.77 p.p for hires.
    Date: 2022–08–01
  56. By: Celestin Mutabeshya,; Cyprien Sikubwabo
    Abstract: The purpose of this study was to investigate the Effect of family socio-economic status on students’ Academic Achievement in Nine Year Basic Education (9YBE) schools located in Rubavu District. To this end, this study sought to investigate the effect of family socio-economic status on students’ academic achievement. The study used a mixed research design, involving quantitative and qualitative methods. The target population involved 9216 students, 13 head teachers, and 13 directors of studies. Simple random and purposive sampling techniques were used to select the sample of 383 participants, including 357 students, 13 head teachers, and 13 directors of studies. This sample was calculated using Yamane’s simplified formula for determining a sample size.Questionnaires, documentary review, and interview guide were used to collect relevant data.. The interpretation referred to means, standard deviations, and regression analysis, complemented by results from interviews. The findings revealed that family socio-economic status has a significant effect on students’ academic achievement. This is obvious when we look at p and Beta values for dimensions of family socio-economic status such as family financial status, family size, and family headship, linked to the objectives of this study. The p and ß values of these variables are as follows: Family financial status (p-value=0.00, ß=.381), family size (p-value=0.00, ß=0.274), and family headship (p-value=0.00, ß=0.391). If students are to achieve academically, government, parents (guardians)/families, teachers, education officers, NGOs in education, and other stakeholders in education should put more efforts in addressing issues related to socio-economic status of families from which learners come from. Key words: Family socio-economic status, students’ academic achievement, family size, family headship, Nine-Year Basic Education
    Date: 2022–03
  57. By: Iddawela, Yohan; Lee, Neil; Rodríguez-Pose, Andrés
    Abstract: Despite widespread interest in government quality and economic development, the role of sub-national government has been largely overlooked. This represents an omission in Africa, given ongoing processes of devolution in much of the continent. In this article, we consider the impact of sub-national government institutions on economic development in 339 regions across 22 African countries. We create a novel index of sub-national government quality based on large-scale survey data and assess its impact on regional economies using satellite data on night light luminosity. To address causality concerns, we instrument sub-national government quality with data from pre-colonial societies. Our results show a positive and significant relationship between sub-national government quality and regional economic development, even when controlling for the quality of national-level institutions. Better sub-national governments are a powerful but often overlooked determinant of development in Africa.
    Keywords: institutions; quality of government; regions; Africa; decentralisation
    JEL: N0 R14 J01
    Date: 2021–08–03
  58. By: Grenet, Julien (Paris School of Economics, CNRS); Grönqvist, Hans (Linnaeus University, IFAU); Niknami, Susan (Swedish Institute for Social Research, Stockholm University)
    Abstract: Electronic monitoring (EM) is a popular instrument to reduce large prison populations. Evidence on the effects of EM on criminal recidivism is, however, limited and it is unclear how this alternative to incarceration affects the labor market outcomes of offenders. Moreover, little is known about potential spillover effects on family members. We study the introduction of EM in Sweden in 1997 wherein offenders sentenced to up to three months in prison were given the possibility to avoid entering prison by substituting to EM. Our difference-in-differences estimates comparing the change in the prison inflow rate of eligible offenders to that of non-eligible offenders with slightly longer sentences show that the reform dramatically decreased incarcerations. Our main finding is that EM lowers criminal recidivism and improves offenders’ labor market outcomes. There is also some evidence of improvements in the short and intermediate run outcomes of the children of the offenders. The main channels through which EM operates seem to be by allowing offenders to maintain regular work and potentially also by reducing employer discrimination. Our calculations suggest that the social benefits of EM are at least six to nine times larger than the fiscal savings from reduced prison expenditure. This makes the welfare improvements from EM potentially much greater than what has been previously recognized.
    Keywords: Electronic monitoring; Incarceration; Labor supply; Crime; Spillovers
    JEL: K42
    Date: 2022–08–01
  59. By: Tanner Regan (George Washington University); Martina Manara (London School of Economics)
    Abstract: Information on willingness-to-pay is key for public pricing and allocation of services but not easily collected. Studying land titles in Dar-es-Salaam, we ask whether local leaders know and will reveal plot owners' willingness-to-pay. We randomly assign leaders to predict under different settings then elicit owners' actual willingness-to-pay. Demand is substantial, but below exorbitant fees. Leaders can predict the aggregate demand curve and distinguish variation across owners. Predictions worsen when used to target subsidies, but adding cash incentives mitigates this. We demonstrate that leader-elicited information can improve the public pricing of title deeds, raising uptake while maintaining public funds.
    Keywords: property rights; willingness-to-pay; public pricing; local publicly provided goods
    JEL: O17 H40 R21 D80
    Date: 2022–07

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