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on Urban and Real Estate Economics |
| By: | Francisco Amaral (University of Bonn); Martin Dohmen (University of Bonn); Sebastian Kohl (Max Planck Institute for the Study of Societies - Max-Planck-Gesellschaft); Moritz Schularick (University of Bonn, ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, Federal Reserve Bank of New York) |
| Abstract: | We study long-term returns on residential real estate in twenty-seven "superstar" cities in fifteen countries over 150 years. We find that total returns in superstar cities are close to 100 basis points lower per year than in the rest of the country. House prices tend to grow faster in the superstars, but rent returns are substantially greater outside the big agglomerations, resulting in higher long-run total returns. The excess returns outside the superstars can be rationalized as a compensation for risk, especially for higher covariance with income growth and lower liquidity. Superstar real estate is comparatively safe. |
| Keywords: | Housing returns, Housing risk, Superstar cities, Regional housing markets |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03881493&r=ure |
| By: | Timur Abbiasov; Cate Heine; Edward L. Glaeser; Carlo Ratti; Sadegh Sabouri; Arianna Salazar Miranda; Paolo Santi |
| Abstract: | Americans travel 7 to 9 miles on average for shopping and recreational activities, which is far longer than the 15-minute (walking) city advocated by ecologically-oriented urban planners. This paper provides a comprehensive analysis of local trip behavior in US cities using GPS data on individual trips from 40 million mobile devices. We define local usage as the share of trips made within 15-minutes walking distance from home, and find that the median US city resident makes only 12% of their daily trips within such a short distance. We find that differences in access to local services can explain eighty percent of the variation in 15-minute usage across metropolitan areas and 74 percent of the variation in usage within metropolitan areas. Differences in historic zoning permissiveness within New York suggest a causal link between access and usage, and that less restrictive zoning rules, such as permitting more mixed-use development, would lead to shorter travel times. Finally, we document a strong correlation between local usage and experienced segregation for poorer, but not richer, urbanites, which suggests that 15-minute cities may also exacerbate the social isolation of marginalized communities. |
| JEL: | H0 J0 R0 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30752&r=ure |
| By: | Claudio Luccioletti (CEMFI, Centro de Estudios Monetarios y Financieros) |
| Abstract: | Workers in larger cities are paid higher wages. The city-size wage premium may reflect the productivity gains from agglomeration or sorting of more productive workers in densely populated areas. However, local labor markets in large cities have more firms and are expected to be more competitive, which could also generate part of the urban earnings premium. I quantify the importance of this channel with rich administrative data for Spain using a spatial equilibrium model to guide the empirical strategy. To address the identification challenge posed by labor market power and wages moving endogenously with unobserved local productivity shocks, I first control for firms’ revenues per worker and for time trends that are heterogeneous across local labor markets. I then develop a new instrumental variable that leverages quasi-experimental variation in monopsony power stemming from changes over time in the size of local public firms. I conclude that 20–30% of the city-size wage premium and 6–15% of the employment gap between small and large cities can be attributed to differences in labor market power across locations. |
| Keywords: | Labor market power, city sizes, wage premium. |
| JEL: | R10 J42 R23 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:cmf:wpaper:wp2022_2214&r=ure |
| By: | Bob Bifulco (Center for Policy Research, Maxwell School, Syracuse University, 426 Eggers Hall, Syracuse, NY 13244); Sarah Souders (Center for Policy Research, Maxwell School, Syracuse University, 426 Eggers Hall, Syracuse, NY 13244) |
| Abstract: | Using recently available school-level finance data, we compare exposure to low-income classmates and average per pupil spending for black, Hispanic, and white students. Using within metropolitan area comparisons, we find that the typical black and Hispanic students attend schools with much higher proportions of low-income students than the typical white student, and that per pupil spending in the typical black and Hispanic students’ schools is higher than in the typical white student’s school. Drawing on estimates of the additional spending required to provide low-income students equal educational opportunity, we find that it is unlikely that the additional spending in schools where black and Hispanic students tend to enroll is sufficient to address the high level of student need in these schools. Middle range estimates indicate that cost-adjusted spending the typical black and Hispanic students’ schools is only 88 percent of that in the average white student’s school. Approximately 40 percent of the racial disparities in cost-adjusted spending are due to differences across schools within districts, although within district disparities play a much greater role in the South and West than in the Northeast and Midwest. Racial disparities are largest in the Northeast, and racial disparities across districts did not change significantly between 2006 and 2008. |
| Keywords: | Racial Inequality; Education Finance |
| JEL: | I20 I22 I24 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:max:cprwps:255&r=ure |
| By: | Clémence Tricaud (UCLA Anderson School of Management, CEPR - Center for Economic Policy Research - CEPR, LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques (Sciences Po) - Sciences Po - Sciences Po) |
| Abstract: | This paper provides new evidence on why municipalities are often reluctant to integrate. Exploiting a French reform that made intermunicipal cooperation mandatory, I find that urban municipalities forced to integrate experienced a large increase in construction, consistent with NIMBYism explaining their resistance, while rural municipalities ended up with fewer local public services. I do not find the same effects for municipalities that had voluntarily integrated prior to the law, while both types of municipality enjoyed similar benefits in terms of public transport and fiscal revenues. These findings support the fact that municipalities resisted to avoid the local costs of integration. |
| Keywords: | Local governments, Intermunicipal cooperation, Difference-in-differences, Housing regulations, Local public services |
| Date: | 2021–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03380333&r=ure |
| By: | Joshua Angrist; Peter Hull; Christopher R. Walters |
| Abstract: | Many personal and policy decisions turn on perceptions of school effectiveness, defined here as the causal effect of attendance at a particular school or set of schools on student test scores and other outcomes. Widely-disseminated school ratings frameworks compare average student achievement across schools, but uncontrolled differences in means may owe more to selection bias than to causal effects. Such selection problems have motivated a wave of econometric innovation that uses elements of random and quasi-experimental variation to measure school effectiveness. This chapter reviews these empirical strategies, highlighting solved problems and open questions. Empirical examples are used throughout. |
| JEL: | C11 C26 I20 I21 I24 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30803&r=ure |
| By: | Andrea Araldo; Andre de Palma; Souhila Arib; Vincent Gauthier (Université de Cergy-Pontoise, THEMA) |
| Abstract: | While carpooling is widely adopted for long travels, it is by construction inefficient for daily commuting, where it is difficult to match drivers and riders, sharing similar origin, destination and time. To overcome this limitation, we present an Integrated system, which integrates carpooling into transit, in the line of the philosophy of Mobility as a Service. Carpooling acts as feeder to transit and transit stations act as consolidation points, where trips of riders and drivers meet, increasing potential matching. We present algorithms to construct multimodal rider trips (including transit and carpooling legs) and driver detours. Simulation shows that our Integrated system increases transit ridership and reduces auto-dependency, with respect to current practice, in which carpooling and transit are operated separately. Indeed, the Integrated system decreases the number of riders who are left with no feasible travel option and would thus be forced to use private cars. The simulation code is available as open source. |
| Keywords: | Carpooling, Ride-sharing, Mobility as a Service, Transit, Simulation, Multimodal Transportation. |
| JEL: | R41 R48 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ema:worpap:2022-23&r=ure |
| By: | Boeing, Geoff (Northeastern University); Lu, Yougeng; Pilgram, Clemens |
| Abstract: | Vehicular air pollution has created an ongoing air quality and public health crisis. Despite growing knowledge of racial injustice in exposure levels, less is known about the relationship between the production of and exposure to such pollution. This study assesses pollution burden by testing whether local populations' vehicular air pollution exposure is proportional to how much they drive. Through a Los Angeles, California case study we examine how this relates to race, ethnicity, and socioeconomic status---and how these relationships vary across the region. We find that, all else equal, tracts whose residents drive less are exposed to more air pollution, as are tracts with a less-White population. Commuters from majority-White tracts disproportionately drive through non-White tracts, compared to the inverse. Decades of racially-motivated freeway infrastructure planning and residential segregation shape today's disparities in who produces vehicular air pollution and who is exposed to it, but opportunities exist for urban planning and transport policy to mitigate this injustice. |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:wd92j&r=ure |
| By: | Niels Johannesen; Jakob Miethe; Daniel Weishaar |
| Abstract: | Ownership of real estate through corporations in offshore tax havens creates opportunities for tax evasion and money laundering and may have undesirable effects in housing markets. In this paper, we study offshore ownership of real estate in the United Kingdom by combining several data sources: administrative data from the land register, a comprehensive transaction database, a propriety database on corporate ownership links, and a handful of offshore data leaks. Our descriptive analysis shows that the market share of offshore corporations has increased over time and varies strongly across market segments: It currently stands at 1.25% in the overall residential market and around 15% for top-end properties. When data leaks allow us to trace ownership through offshore corporations to the beneficial owners, we find that around half have ties to Africa, Asia and the Middle East, but that the largest ’foreign’ investor is the United Kingdom itself. Turning to causal evidence, we show that changes in tax incentives and ownership transparency induce strong responses in patterns of offshore ownership, suggesting that both taxation and secrecy are important motives for the beneficial owners. Finally, we show that the Brexit referendum was followed by a sharp increase in property sales by offshore owners and a large differential decrease in property prices in local areas with more offshore ownership, conditional on area and property characteristics. This suggests that the reduction in demand from offshore investors triggered by Brexit had a negative causal effect on property prices and, more broadly, that offshore ownership can have significant real effects in housing markets. |
| Keywords: | tax havens, tax evasion, offshore financial centers, real estate, hidden wealth |
| JEL: | H26 F21 R31 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10159&r=ure |
| By: | Pérez, Jorge; Vial, Felipe; Zárate, Román |
| Abstract: | Does transit infrastructure reduce labor market power? This paper estimates the effects of a large subway expansion on local labor market outcomes in Santiago, Chile. Using a linked employer-employee dataset with spatial information, we estimate the effects of the network expansion on the most-affected workers and firms through a reduced-form analysis. We find changes in work locations and wages consistent with a reduction in firms’ labor market power around areas connected to the subway network after the expansion. We then lay out a quantitative spatial equilibrium model where firms behave as oligopsonies in the labor market to calculate the welfare gains from the transit infrastructure expansion. Our model allows us to decompose the welfare gains into i) the efficiency gains through improved matching between workers and firms and ii) the gains from reducing labor misallocation through labor market power responses. The model also provides a framework to analyze the distributional implications of the infrastructure expansion. We find that workers benefit as firm owners see reduced profits and that accounting for labor market power responses amplifies the welfare gains. |
| Keywords: | Desarrollo urbano, Economía, Infraestructura, |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:dbl:dblwop:1992&r=ure |
| By: | Wenli Li (Federal Reserve Bank Philadelphia); Costas Meghir (Yale University [New Haven], CEPR - Center for Economic Policy Research - CEPR); Florian Oswald (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | We specify and estimate a lifecycle model of consumption, housing demand and labor supply in an environment where individuals may file for bankruptcy or default on their mortgage. Uncertainty in the model is driven by house price shocks, {education specific} productivity shocks, and catastrophic consumption events, while bankruptcy is governed by the basic institutional framework in the US as implied by Chapter 7 and Chapter 13. The model is estimated using micro data on credit reports and mortgages combined with data from the American Community Survey. We use the model to understand the relative importance of the two chapters (7 and 13) for each of our two education groups that differ in both preferences and wage profiles. We also provide an evaluation of the BACPCA reform. Our paper demonstrates importance of distributional effects of Bankruptcy policy. |
| Keywords: | Lifecycle, Bankruptcy, Mortgage Default, Housing, Labor Supply, Consumption, Education, Insurance, Moral hazard |
| Date: | 2022–03–17 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03882830&r=ure |
| By: | Nicolas Coeurdacier (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Florian Oswald (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Marc Teignier (University of Barcelona) |
| Abstract: | We develop a multi-sector spatial equilibrium model with endogenous land use: land is used either for agriculture or housing. Urban land, densely populated due to commuting frictions, expands out of agricultural land. With rising productivity, the reallocation of workers away from agriculture frees up land for cities to expand, limiting the increase in land values despite higher income and increasing urban population. Due to the reallocation of land use, the area of cities expands at a fast rate and urban density persistently declines, as in the data over a long period. As structural change slows down, cities sprawl less and land values start increasing at a faster rate, as in the last decades. Quantitative predictions of the joint evolution of density and land values across time and space are confronted with historical data assembled for France over 180 years. |
| Keywords: | Structural Change, Land Use, Productivity Growth, Urban Density |
| Date: | 2021–12–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03812819&r=ure |
| By: | Ogawa, Akinobu; Kondoh, Haruo |
| Abstract: | This study analyzes the impact of Hometown Tax Donation (HTD), a unique local fiscal system in Japan, on local government efficiency. It allows residents to make donations to local governments of their choice, receiving deductions on payment of local and national taxes, equivalent to the amount donated, except for small self-paid amounts (JPY2, 000, US$15). Moreover, donors can receive gifts from the recipient government in return, depending on the amount donated. Therefore, tax revenue will outflow from the donor residents’ municipalities to other regions, whereas it will inflow to recipient municipalities from other regions. This makes local governments compete to receive donations under the HTD system by trying to enhance their efficiency. On the other hand, HTD may cause misperception of tax prices, thereby leading to inefficient provision of local public services. This study uses stochastic frontier analysis to quantitatively analyze the impact of HTD on the inefficiency of local governments. The findings reveal that municipalities whose revenues are more dependent on HTD tend to be more inefficient. Moreover, greater dependence on intergovernmental grants and local corporate taxation results in inefficiency, thus, providing implications for local public finance on the importance of decentralization. The results also highlight that competition for income through HTD is a zero-sum game, therefore, more fiscal autonomy is needed to ensure healthy competition, thereby, providing new evidence on the relationship between interjurisdictional competition and local government efficiency. |
| Keywords: | Hometown Tax Donation (HTD), Local public finance, Local government’s efficiency, Stochastic frontier analysis (SFA), Intergovernmental competition |
| JEL: | H27 H71 |
| Date: | 2022–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:115739&r=ure |
| By: | Jos\'e M. Gaspar; Minoru Osawa |
| Abstract: | This paper analyses a two-region model with vertical innovations that enhance the quality of varieties of the horizontally differentiated manufactures produced in each of the two regions. We look at how the creation and diffusion of knowledge and increasing returns in manufacturing interact to shape the spatial economy. Innovations occur with a probability that depends on the inter-regional interaction between researchers (mobile workers). We find that, if the weight of interaction with foreign scientists is relatively more important for the success of innovation, the model accounts for re-dispersion of economic activities after an initial stage of progressive agglomeration as transport costs decrease from a high level. |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2212.14475&r=ure |
| By: | Johannes Buggle (University of Vienna [Vienna]); Thierry Mayer (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, CEPR - Center for Economic Policy Research - CEPR); Seyhun Orcan Sakalli (King‘s College London); Mathias Thoenig (UNIL - Université de Lausanne = University of Lausanne, CEPR - Center for Economic Policy Research - CEPR) |
| Abstract: | We estimate the push and pull factors involved in the outmigration of Jews facing persecution in Nazi Germany from 1933 to 1941. Our empirical investigation makes use of a unique individual-level dataset that records the migration history of the Jewish community in Germany over the period. Our analysis highlights new channels, specific to violent contexts, through which social networks affect the decision to flee. We first estimate a structural model of migration where individuals base their own migration decision on the observation of persecution and migration among their peers. Identification rests on exogenous variations in local push and pull factors across peers who live in different cities of residence. Then we perform various experiments of counterfactual history to quantify how migration restrictions in destination countries affected the fate of Jews. For example, removing work restrictions for refugees in the recipient countries after the Nuremberg Laws (of 1935) would have led to an increase in Jewish migration out of Germany in the range of 12 to 20%, and a reduction in mortality due to prevented deportations in the range of 6 to 10%. |
| Keywords: | Refugees, Migration Policy, Counterfactual History, Nazi Germany |
| Date: | 2022–04–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03799567&r=ure |
| By: | L. Rachel Ngai (London School of Economics (LSE); Centre for Macroeconomics (CFM); Centre for Economic Policy Research (CEPR)); Kevin D. Sheedy (London School of Economics (LSE); Centre for Macroeconomics (CFM)) |
| Abstract: | The housing market is subject to search frictions in buying and selling houses. This paper documents the role of inflows (new listings) and outflows (sales) in explaining the volatility and co-movement of housing-market variables. An ‘ins versus outs’ decomposition shows that both inflows and outflows are quantitatively important in understanding fluctuations in houses for sale. The correlations between sales, prices, new listings, and time-to-sell are shown to be stable over time, while their correlations with houses for sale are found to be time varying. Using a housing-market model with endogenous inflows and outflows, a single persistent housing-demand shock can explain all the patterns of co-movement among variables except for houses for sale. Consistent with the data, the model does not predict there is an invariant structural relationship between houses for sale and other variables — the correlation depends on the source and persistence of shocks. |
| Keywords: | housing-market cyclicality, stocks and flows, search frictions |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:cfm:wpaper:2213&r=ure |
| By: | Antonin Bergeaud (Banque de France - Banque de France - Banque de France, CEPR - Center for Economic Policy Research - CEPR); Jean-Benoît Eymeoud (Banque de France - Banque de France - Banque de France, LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques (Sciences Po) - Sciences Po - Sciences Po); Thomas Garcia (Banque de France - Banque de France - Banque de France); Dorian Henricot (Banque de France - Banque de France - Banque de France, ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | We examine how corporate real estate market participants adjust to the take-off of teleworking. We develop an indicator of the exposure of counties to teleworking in France by combining teleworking capacity with incentives and frictions to its deployment. We study how this indicator relates to prices and quantities in the corporate real estate market. We find that for offices in counties more exposed, the Covid-19 crisis has led to (1) higher vacancy rates, (2) less construction, (3) lower prices. Our findings reveal that teleworking has already an impact on the office market. Furthermore, forward-looking indicators suggest that market participants are anticipating the shift to teleworking to be durable. |
| Keywords: | Corporate real estate, Commercial real estate, Teleworking |
| Date: | 2022–01–27 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03548889&r=ure |
| By: | Roman Sustek (Queen Mary University of London; Centre for Macroeconomics (CFM)) |
| Abstract: | Building on Garriga, Kydland, and Sustek (2017), a simple practical method for quantitative analysis of house prices is proposed. Similar to consumer theory, housing demand is approximately decomposed into changes in income and a relative price. The latter includes implicit costs of mortgage finance, determined by monetary and macroprudential policies and future income growth and inflation expectations. To demonstrate the method, I apply it to the 63% increase in real house prices in Czechia, 2013-2021. The income effect accounts for 32% of the increase, implicit mortgage costs for another 20%. Most of the latter hinges on income growth expectations, reflecting the robust 2013-2020 economic recovery. |
| Keywords: | House prices, decomposition, affordability, mortgage costs, monetary and macroprudential policy |
| JEL: | E52 G21 G59 R21 |
| Date: | 2021–10 |
| URL: | http://d.repec.org/n?u=RePEc:cfm:wpaper:2120&r=ure |
| By: | Arya Gaduh; Menno Pradhan; Jan Priebe; Dewi Susanti |
| Abstract: | Social accountability offers a viable alternative to top-down supervision of service delivery in remote areas when travel cost renders the latter ineffective. However, this bottom-up approach may not be effective when the community has weak authority relative to the service provider. This paper investigates whether giving communities authority over teacher performance pay improves the effectiveness of social accountability in Indonesia’s remote schools. We tested incentive contracts based on either camera-verified teacher presence or community ratings of teacher performance. Social accountability had the strongest and most persistent impact on student learning when combined with the former. The results indicate that when the principal (community) has weak authority vis-à-vis the agent (regular teachers), increasing that authority using an incomplete but verifiable contract works better than using a more comprehensive but subjective one. |
| JEL: | H52 I21 I25 I28 O15 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30758&r=ure |
| By: | Johannes Buggle (University of Vienna [Vienna]); Thierry Mayer (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, CEPR - Center for Economic Policy Research - CEPR); Seyhun Orcan Sakalli (King‘s College London); Mathias Thoenig (UNIL - Université de Lausanne = University of Lausanne, University of Oxford [Oxford], CEPR - Center for Economic Policy Research - CEPR) |
| Abstract: | We estimate the push and pull factors involved in the outmigration of Jews facing persecution in Nazi Germany from 1933 to 1941. Our empirical investigation makes use of a unique individual-level dataset that records the migration history of the Jewish community in Germany over the period. Our analysis highlights new channels, specific to violent contexts, through which social networks affect the decision to flee. We estimate a structural model of migration where individuals base their own migration decision on the observation of persecution and migration among their peers. Identification rests on exogenous variations in local push and pull factors across peers who live in different cities of residence. Then, we perform various experiments of counterfactual history to quantify how migration restrictions in destination countries affected the fate of Jews. For example, removing work restrictions for refugees in the recipient countries after the Nuremberg Laws (of 1935) would have led to an increase in Jewish migration out of Germany in the range of 12 to 20%, and a reduction in mortality due to prevented deportations in the range of 6 to 10%. |
| Keywords: | Refugees, Migration Policy, Counterfactual History, Nazi Germany |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03861721&r=ure |
| By: | Pierre-Philippe Combes (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, CEPR - Center for Economic Policy Research - CEPR); Gilles Duranton (University of Pennsylvania [Philadelphia]); Laurent Gobillon (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: | We propose a new nonparametric approach to estimate the production function for housing. Our estimation treats output as a latent variable and relies on a first-order condition for profit maximization combined with a zero-profit condition. More desirable locations command higher land prices and, in turn, more capital to build houses. For parcels of a given size, we compute housing production by summing across the marginal products of capital. For newly built single-family homes in France, the production function for housing is close to constant returns and is well, though not perfectly, approximated by a Cobb-Douglas function with a capital elasticity of 0.65. |
| Keywords: | Housing, Production function |
| Date: | 2021–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:halshs-03342578&r=ure |
| By: | Johannes Buggle (University of Vienna [Vienna]); Thierry Mayer (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, CEPR - Center for Economic Policy Research - CEPR); Seyhun Orcan Sakalli (King‘s College London); Mathias Thoenig (UNIL - Université de Lausanne = University of Lausanne, University of Oxford [Oxford], CEPR - Center for Economic Policy Research - CEPR) |
| Abstract: | We estimate the push and pull factors involved in the outmigration of Jews facing persecution in Nazi Germany from 1933 to 1941. Our empirical investigation makes use of a unique individual-level dataset that records the migration history of the Jewish community in Germany over the period. Our analysis highlights new channels, specific to violent contexts, through which social networks affect the decision to flee. We estimate a structural model of migration where individuals base their own migration decision on the observation of persecution and migration among their peers. Identification rests on exogenous variations in local push and pull factors across peers who live in different cities of residence. Then, we perform various experiments of counterfactual history to quantify how migration restrictions in destination countries affected the fate of Jews. For example, removing work restrictions for refugees in the recipient countries after the Nuremberg Laws (of 1935) would have led to an increase in Jewish migration out of Germany in the range of 12 to 20%, and a reduction in mortality due to prevented deportations in the range of 6 to 10%. |
| Keywords: | Refugees, Migration Policy, Counterfactual History, Nazi Germany |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03861721&r=ure |
| By: | Youssef Chaabouni; Andre de Palma; Andrea Araldo; Souhila Arib (Université de Cergy-Pontoise, THEMA) |
| Abstract: | In carpooling systems, a set of drivers owning a private car can accept a small detour to pick-up and drop-off other riders. However, carpooling is widely used for long-distance trips, where rider-driver matching can be done days ahead. Making carpooling a viable option for daily commute is more challenging, as trips are shorter and, proportionally, the detours tolerated by drivers are more tight. As a consequence, finding riders and drivers sharing close-enough origins, destinations and departure time is less likely, which limits potential matching. In this paper we propose an Integrated System, where carpooling matching is synchronized with Public Transit (PT) schedules, so as to serve as a feeder service to PT in the first mile. Driver detours are proposed towards PT selected stations, which are used as consolidation points, thus increasing matching probability. We present a computationally efficient method to represent PT schedules and drivers trajectory in a single General Transit Feed Specification database, which allows to compute multimodal rider journeys using any off the shelf planners. We showcase our approach in the metropolitan area of Portland, Oregon, considering 8k randomly generated trips. We show the benefits of our Integrated System. We find that 10% more riders find a feasible matching with respect to the status quo, where carpooling and PT are operated separately. We release our code as open source. |
| Keywords: | Transportation, Carpooling, Public Transit, GTFS, Open Data. |
| JEL: | R41 R48 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ema:worpap:2022-24&r=ure |
| By: | Jeanne Bomare (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); Ségal Le Guern Herry (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper provides evidence of the growing importance of real estate assets in offshore portfolios. We study the implementation of the first multilateral automatic exchange of information norm, the Common Reporting Standard (CRS), which introduces cross-border reporting requirements for financial assets but not for real estate assets. Exploiting administrative data on property purchases made by foreign companies in the UK, we show that the implementation of the CRS led to a significant increase of real estate investments from companies incorporated in the tax havens that were the most exposed to the policy. We confirm that this increase comes from company owners of countries committing to the new standard by identifying the residence country of a sub-sample of buyers using the Panama Papers and other leaked datasets. We estimate that between £16 and £19 billion have been invested in the UK real estate market between 2013 and 2016 in reaction to the CRS, suggesting that at the global scale between 24% and 27% of the money that fled tax havens following this policy were ultimately invested in properties. |
| Date: | 2022–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03811306&r=ure |
| By: | Mundra, Kusum; Uwaifo Oyelere, Ruth |
| Abstract: | Housing is a basic need and is intricately connected to a household's health and wellness. The current pandemic has exposed the housing vulnerability for certain subgroups of the population and further jeopardized these household's health and stability. Using the Household Pulse Survey launched by the US Census Bureau since April 2020, we examine the correlates of housing vulnerability during the pandemic. We explore both subjective and objective measures of vulnerability. In addition, we explore heterogeneity in the evolution of housing vulnerability along demographic characteristics such as ethnicity and housing type (renter vs owner) during the pandemic. Our results suggest that individuals perception on their housing vulnerability in the immediate future is on average higher than the objective evaluation of their current vulnerability. In addition, not being employed, lower levels of education and household size all increase home vulnerability. We also find significant heterogeneity across race in the evolution of vulnerability during the pandemic (2000-2022) with a "chilling effect" on Asians. |
| Keywords: | Renter, Homeowner, Housing vulnerability, Pandemic, Ethnicity |
| JEL: | R2 R3 J10 I31 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1216&r=ure |
| By: | Frohnweiler, Sarah (RWI); Beber, Bernd (RWI); Ebert, Cara (RWI) |
| Abstract: | Information frictions about the benefits of migration can lead to inefficient migration choices. We study the effects of a randomly assigned information treatment about regional income differentials in Ghana and Uganda to learn about participants' belief updating and subsequent changes in migration intentions and destination preferences. Participants react to the provided information by correcting their destination preferences towards regions with higher incomes, whereas their intent to migrate changes less. Participants' belief updating follows an asymmetric process restricted to individuals who initially underestimated regional differentials. The results suggest that income differentials matter for where to and less whether to migrate. |
| Keywords: | income differentials, migration decision, belief updating |
| JEL: | J31 J68 O15 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15826&r=ure |
| By: | Liam Brunt (Norvegian school of Economics); Cecilia García-Peñalosa (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | A large literature characterises urbanisation as resulting from productivity growth attracting rural workers to cities. Incorporating economic geography elements into a growth model, we suggest that causation runs the other way: when rural workers move to cities, the resulting urbanisation produces technological change and productivity growth. Urban density leads to knowledge exchange and innovation, thus creating a positive feedback loop between city size and productivity that initiates sustained economic growth. This model is consistent with the fact that urbanisation rates in western Europe, most notably England, reached unprecedented levels by the mid-eighteenth century, the eve of the Industrial Revolution. |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03630965&r=ure |
| By: | Ellora Derenoncourt (Princeton University); Chi Hyun (University of Bonn); Moritz Kuhn (University of Bonn); Moritz Schularick (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, University of Bonn, CEPR - Center for Economic Policy Research - CEPR) |
| Abstract: | The racial wealth gap is the largest of the economic disparities between Black and white Americans, with a white-to-Black per capita wealth ratio of 6 to 1. It is also among the most persistent. In this paper, we construct the first continuous series on white-to-Black per capita wealth ratios from 1860 to 2020, drawing on historical census data, early state tax records, and historical waves of the Survey of Consumer Finances, among other sources. Incorporating these data into a parsimonious model of wealth accumulation for each racial group, we document the role played by initial conditions, income growth, savings behavior, and capital returns in the evolution of the gap. Given vastly different starting conditions under slavery, racial wealth convergence would remain a distant scenario, even if wealth-accumulating conditions had been equal across the two groups since Emancipation. Relative to this equal-conditions benchmark, we find that observed convergence has followed an even slower path over the last 150 years, with convergence stalling after 1950. Since the 1980s, the wealth gap has widened again as capital gains have predominantly benefited white households, and income convergence has stopped. |
| Date: | 2022–05–27 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03880971&r=ure |
| By: | Ata Atay; Ana Mauleon; Vincent Vannetelbosch |
| Abstract: | We consider priority-based school choice problems with farsighted students. We show that a singleton set consisting of the matching obtained from the Top Trading Cycles (TTC) mechanism is a farsighted stable set. However, the matching obtained from the Deferred Acceptance (DA) mechanism may not belong to any farsighted stable set. Hence, the TTC mechanism provides an assignment that is not only Pareto efficient but also farsightedly stable. Moreover, looking forward three steps ahead is already sufficient for stabilizing the matching obtained from the TTC. |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2212.07108&r=ure |
| By: | Ben Lockwood; Francesco Porcelli; Michela Redoano; Antonio Schiavone; Benjamin Lockwood |
| Abstract: | We exploit the introduction of an open data online platform - part of a transparency program initiated by the Italian Government in late 2014 - as a natural experiment to analyse the effect of data disclosure on mayors’ expenditure and public good provision. First, we analyse the effect of the program by comparing municipalities on the border between ordinary and special regions, exploiting the fact that the latter regions did not participate in the program. We find that mayors in ordinary regions immediately change their behaviour after data disclosure by improving the disclosed indicators, and that the reaction depends also on their initial relative performance, a yardstick competition effect. Second, we investigate the effect of mayors’ attention to data disclosure within treated regions by tracking their daily accesses to the platform, which we instrument with the daily publication of newspaper articles mentioning the program. We find that mayors react to data disclosure by decreasing spending via a reduction of service provision, resulting in an aggregate decrease in efficiency. Overall, mayors seem to target variables that are disclosed on the website at the expense of variables that are less salient. |
| Keywords: | open data, local government, media coverage, OpenCivitas |
| JEL: | H72 H79 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10155&r=ure |
| By: | Benjamin Hansen; Joseph J. Sabia; Jessamyn Schaller |
| Abstract: | This study explores the effect of in-person schooling on youth suicide. We document three key findings. First, using data from the National Vital Statistics System from 1990-2019, we document the historical association between teen suicides and the school calendar. We show that suicides among 12-to-18-year-olds are highest during months of the school year and lowest during summer months (June through August) and also establish that areas with schools starting in early August experience increases in teen suicides in August, while areas with schools starting in September don’t see youth suicides rise until September. Second, we show that this seasonal pattern dramatically changed in 2020. Teen suicides plummeted in March 2020, when the COVID-19 pandemic began in the U.S. and remained low throughout the summer before rising in Fall 2020 when many K-12 schools returned to in-person instruction. Third, using county-level variation in school reopenings in Fall 2020 and Spring 2021—proxied by anonymized SafeGraph smartphone data on elementary and secondary school foot traffic—we find that returning from online to in-person schooling was associated with a 12-to-18 percent increase teen suicides. This result is robust to controls for seasonal effects and general lockdown effects (proxied by restaurant and bar foot traffic), and survives falsification tests using suicides among young adults ages 19-to-25. Auxiliary analyses using Google Trends queries and the Youth Risk Behavior Survey suggests that bullying victimization may be an important mechanism. |
| JEL: | I1 I18 I19 I2 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30795&r=ure |
| By: | Bhargava, Palaash (Columbia University); Chen, Daniel L. (Toulouse School of Economics); Sutter, Matthias (Max Planck Institute for Research on Collective Goods); Terrier, Camille (University of Lausanne) |
| Abstract: | Social networks are a key factor of success in life, but they are also strongly segmented on gender, ethnicity, and other demographic characteristics (Jackson, 2010). We present novel evidence on an understudied source of homophily, namely behavioral traits. Behavioral traits are important determinants of life-time outcomes. While recent work has focused on how these traits are influenced by the family environment or how they can be affected by childhood interventions, little is still known about how these traits are associated to social networks. Based on unique data that we collected using incentivized experiments on more than 2, 500 French high-school students, we find high levels of homophily across all ten behavioral traits that we study (including social, risk, competitive preferences, and aspirations). Notably, the extent of homophily depends on similarities in demographic characteristics, in particular with respect to gender. Furthermore, the larger the number of behavioral traits that students share, the higher the overall homophily. Then, using network econometrics, we show that the observed homophily is not only an outcome of endogenous network formation, but is also a result of friends influencing each others' behavioral traits. Importantly, the transmission of traits is larger when students share demographic characteristics, such as gender, have been friends for longer or are friends with more popular individuals. |
| Keywords: | homophily, social networks, behavioral traits, peer effects, experiments |
| JEL: | D85 C91 D01 D90 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15840&r=ure |
| By: | Zaheer Allam (IAE Paris - Sorbonne Business School); David Jones |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03477845&r=ure |
| By: | Pierre Cahuc (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, CEPR - Center for Economic Policy Research - CEPR); Stéphane Carcillo (Sciences Po - Sciences Po, IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics); Andreea Minea (Sciences Po - Sciences Po, CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | We investigate the effects of the labor market experience of high school dropouts four years after leaving school by sending fictitious résumés to real job postings in France. Compared to those who have stayed unemployed since leaving school, the callback rate is not raised for those with employment experience, whether it is subsidized or nonsubsidized, if there is no training accompanied by skill certification. We find no stigma effect associated with subsidized work experience. Moreover, training accompanied by skill certification improves youth prospects only when the local unemployment rate is sufficiently low, which occurs in one-fifth of the commuting zones only. |
| Date: | 2021–01–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03878721&r=ure |
| By: | Gabriele Pellegrino (Università Cattolica del Sacro Cuore); Orion Penner (Ecole polytechnique federale de Lausanne); Etienne Piguet (University of Neuchatel); Gaetan de Rassenfosse (Ecole polytechnique federale de Lausanne) |
| Abstract: | This paper studies the relationship between migration and the productivity of high-skilled workers, as captured by inventors listed in patent applications. Using machine learning techniques to identify inventors across patents uniquely, we are able to track the worldwide migration patterns of nearly one million individual inventors. Migrant inventors account for more than ten percent of inventors worldwide. The econometric analysis seeks to explain the recurring finding in the literature that migrant inventors are more productive than non-migrant inventors. We find that migrant inventors become about thirty-percent more productive after having migrated. The disambiguated inventor data are openly available. |
| Keywords: | inventor; productivity; skilled migration |
| JEL: | F22 J61 O30 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:iip:wpaper:20&r=ure |
| By: | Hugo d'Assenza-David (Sciences Po - Sciences Po) |
| Date: | 2021–09–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03340458&r=ure |
| By: | Murat Demirci (Department of Economics, Koç University); Andrew Foster (Department of Economics and Population Studies and Training Center, Brown University); Murat Kırdar (Department of Economics, Boğaziçi University, Bebek, Istanbul 34342, Turkey and Population Studies and Training Center, Brown University) |
| Abstract: | This study examines disparities in health and nutrition among native and Syrian-refugee children in Turkey. With a view toward understanding the need for targeted programs addressing child well-being among the refugee population, we analyze, in particular, the Turkey Demographic and Health Survey (TDHS). The TDHS is one of few data sets providing representative data on health and nutrition for a large refugee and native population. We find no evidence of a difference in infant or child mortality between refugee children born in Turkey and native children. However, refugee infants born in Turkey have lower birthweight and ageadjusted weight and height than native infants. When we account for a rich set of birth and socioeconomic characteristics that display substantial differences between natives and refugees, the gaps in birthweight and age-adjusted height persist, but the gap in age-adjusted weight disappears. Although refugee infants close the weight gap at the mean over time, the gap at the lower end of the distribution persists. The rich set of covariates we use explains about 35% of the baseline difference in birthweight and more than half of the baseline difference in current height. However, even after that, refugee infants’ average birthweight is 0.17 standard deviations (sd) lower and their current height is 0.23 sd lower. These gaps are even larger for refugee infants born prior to migrating to Turkey, suggesting that remaining deficits reflect conditions in the source country prior to migration rather than deficits in access to maternal and child health services within Turkey |
| Keywords: | Syrian refugees, birthweight, anthropometric measures, forced displacement, Turkey |
| JEL: | J61 O15 F22 R23 R58 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:2228&r=ure |
| By: | Colas, Mark (University of Oregon); Sachs, Dominik (University of St. Gallen) |
| Abstract: | Low-skilled immigrants indirectly affect public finances through their effect on resident wages & labor supply. We operationalize this indirect fiscal effect in a model of immigration and the labor market. We derive closed-form expressions for this effect in terms of estimable statistics. An empirical quantification for the U.S. reveals an indirect fiscal benefit for one average low-skilled immigrant of roughly $750 annually. The indirect fiscal benefit may outweigh the negative direct fiscal effect that has previously been documented. This challenges the perception of low-skilled immigration as a fiscal burden. |
| Keywords: | immigration; fiscal impact; general equilibrium; |
| JEL: | H20 J31 J61 |
| Date: | 2022–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:352&r=ure |
| By: | DENTI Daria |
| Abstract: | This report contributes to the evidence base on how European local governments operationalize the Leave No One Behind (LNOB) principle in their Sustainable Development Goals (SDGs) strategies. This is done considering how 24 local governments have been addressing vulnerable groups between 2015 and 2022. Local policies targeting vulnerable groups, their monitoring and budgeting are assessed against criteria designed referring to up to date LNOB literature developed by practitioners, institutions, and academia. |
| Keywords: | Sustainable Development Goals, Localisation, Leave no one behind, Cities, Vulnerable, VLRs |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc130188&r=ure |
| By: | Magli, Martina (LMU Munich) |
| Abstract: | I provide new empirical evidence on the direct and indirect impact of services offshoring on local employment and wages, using a unique dataset on firms in the UK for the period 2000-2015. Exploiting variation in firms' services offshoring across labour markets, I show positive aggregate local labour employment and wage elasticity to services offshoring. Spillovers from offshoring to non-offshoring firms explain the positive results, and services offshoring complementary to firms' production has a larger effect than the offshoring competing with firms' outputs. Finally, I show that services offshoring widens firms' employment and wage dispersion within local labour markets. |
| Keywords: | services offshoring; local labour market; spillover effect; quantile analysis; |
| JEL: | F1 F16 J2 |
| Date: | 2022–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:351&r=ure |
| By: | Chiwuzulum Odozi, John (Ajayi Crowther University); Uwaifo Oyelere, Ruth (Agnes Scott College) |
| Abstract: | Recent research on Nigeria indicates declining income inequality. In contrast, anecdotal evidence suggests that only the upper class has benefited from economic growth in Nigeria over time. The disconnect between these findings and anecdotal evidence, and the limitation in how inequality was estimated in the past literature are the motivation for our research. First, we consider if inequality decreased in Nigeria between 2010 and 2018. We then explore how changes in inequality relate to changes in consumption and poverty. In addition, we examine whether there has been convergence in inequality and consumption across regions over this period. Our last question is focused on identifying the sources/factors contributing to inequality in Nigeria over time. Leveraging data from the four waves of the Nigeria General Household Panel Survey (GHS) and carefully measuring inequality using consumption expenditure, our results suggest that inequality has decreased and median consumption expenditure increased. At the same time, poverty incidence and severity increased precipitously. Our findings suggest convergence in estimated inequality by regions but we do not find evidence of convergence across regions in consumption or poverty levels. We also find that durable goods expenditures are the biggest contributor to inequality across expenditure sources. Finally, our results suggest that education and living in an urban area are significant contributors to inequality but their effects have declined over time. |
| Keywords: | inequality, Gini, Nigeria, income distribution, poverty, regional disparities |
| JEL: | D31 I32 O15 O10 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15837&r=ure |
| By: | Navarro, Adoracion M.; Latigar, Jokkaz S. |
| Abstract: | In this study, the analysis of quantity and quality indicators in the road and rail transport sector shows that the Philippines continues to suffer from inadequate and poor quality road and rail transport infrastructure. In most metrics of comparison with ASEAN neighbors, the Philippines is also behind in improving the quantity and quality of its road and rail transport infrastructure. The assessment of targets and achievements in the Philippine Development Plan, the Public Investment Program, and the expenditure program reveals that many of the targets were unmet. The low absorptive capacity, as indicated in unmet expenditure targets, of the major agencies in charge of the road and rail transport sector suggests problems in implementation. Digging deeper into the implementation challenges, the study finds that the persistent problems are right-of-way acquisition, financing, political intervention, weak capacity at the local government level, natural calamities, and project management issues. There were also newly introduced problems. One is the adverse effects of the pandemic on the materials and manpower supply chain, but systems for addressing these are already in place, and implementing agencies just need to continue improving the implementation of revised procedures in response to the pandemic. Another newly introduced problem is the difficulty of implementing projects under the “for later release” funds category related to Congress-introduced new budget items or budget increases. Meanwhile, the public is getting caught in the battle of wills between two major influences—the legislators and the sitting President—on budget allocation, releases, and implementation. At the national level, seeking reform champions for minimizing the Congressional introductions and fast-tracking executive approvals is necessary. At the regional level, one solution that can be attempted is for government officials to strengthen the practice of project identification and prioritization through the Regional Development Council processes. Comments to this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph. |
| Keywords: | transport infrastructure;public investment program;road transport;rail transport;infrastructure quality |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2022-34&r=ure |
| By: | Rebecca Fraenkel; Joshua S. Graff Zivin; Sam D. Krumholz |
| Abstract: | During the past fifteen years, more than 30% of US coal plants have had at least one coal-fired generator close. We utilize this natural experiment to estimate the effect of coal plant exposure on mortality and house values. Using a difference-in-differences design, we find that, despite the fact that most of this coal generation is replaced with natural gas generation, individuals in counties whose population centroid is within 30 miles of a plant that closes at least one coal-fired unit experience large health effects following shutdown. While these health improvements appear to capitalize into housing values, they only do so for homes within 15 miles of the plant and only when the retirement is complete rather than partial. Taken together, these results underscore the importance of subjective perceptions in shaping market-mediated price effects with far-reaching implications for the literature. |
| JEL: | I18 Q4 Q50 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30801&r=ure |
| By: | Hanming Fang; Ming Li; Zenan Wu |
| Abstract: | We argue that inter-jurisdictional competition in a regionally decentralized authoritarian regime distorts local politicians’ incentives in resource allocation among firms from their own city and a competing city. We develop a tournament model of project selection that captures the driving forces of local protectionism. The model robustly predicts that the joint presence of regional spillover and the incentive for political competition leads to biased resource allocations against the competing regions. Combining several unique data sets, we test our model predictions in the context of government procurement allocation and firms' equity investment across Chinese cities. We find that, first, when local politicians are in more intensive political competition, they allocate less government procurement contracts to firms in the competing city; second, local firms, especially local SOEs, internalize the local politicians’ career concerns and invest less in the competing cities. Our paper provides a political economy explanation for inefficient local protectionism in an autocracy incentivized by tournament-style political competition. |
| JEL: | H11 H70 P30 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30780&r=ure |
| By: | Marie-Pierre de Bellefon (INSEE Paris, 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); Pierre-Philippe Combes (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, CEPR - Center for Economic Policy Research - CEPR, GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - Université de Lyon - CNRS - Centre National de la Recherche Scientifique); Gilles Duranton (University of Pennsylvania [Philadelphia]); Laurent Gobillon (INED - Institut national d'études démographiques, 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); Clément Gorin (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - Université de Lyon - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | We develop a new dartboard methodology to delineate urban areas using detailed information about building location, which we implement using a map of all buildings in France. For each pixel, our approach compares actual building density after smoothing to counterfactual smoothed building density computed after randomly redistributing buildings. We define as urban any area with statistically significant excess building density. Within urban areas, extensions to our approach allow us to distinguish ‘core' urban pixels and detect centres and subcentres. Finally, we develop novel one- and two-sided tests that provide a statistical basis to compare maps with different delineations, which we use to assess the robustness of our approach and to document large differences between our preferred delineation and the corresponding official one. |
| Date: | 2021–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:halshs-02492519&r=ure |
| By: | Kevin Pineda-Hernández (Université libre de Bruxelles, SBS-EM (CEBRIG & DULBEA), Université de Mons (Soci&ter), National Fund for Scientific Research (FRS-FNRS)); François Rycx (Université libre de Bruxelles, SBS-EM (CEBRIG & DULBEA), Université catholique de Louvain (IRES), Université de Mons (Soci&ter), GLO, IZA); Mélanie Volral (Université de Mons (Soci&ter), DULBEA) |
| Abstract: | As immigrants born in developing countries and their descendants represent a growing share of the working-age population in the developed world, their labour market integration constitutes a key factor for fostering economic development and social cohesion. Using a granular, matched employer-employee database of 1.3 million observations between 1999 and 2016, our weighted multilevel log-linear regressions first indicate that in Belgium, the overall wage gap between workers born in developed countries and workers originating from developing countries remains substantial: it reaches 15.7% and 13.5% for first- and second-generation immigrants, respectively. However, controlling for a wide range of observables (e.g. age, tenure, education, type of contract, occupation, firm-level collective agreement, firm fixed effects), we find that, whereas first-generation immigrants born in developing countries still experience a sizeable adjusted wage gap (2.7%), there is no evidence of an adjusted wage gap for their second-generation peers. Moreover, our reweighted, recentered influence function Oaxaca-Blinder decompositions agree with these findings. Indeed, while the overall wage gap for first-generation immigrants born in developing countries is driven by unfavourable human capital, low-paying occupational/sectoral characteristics, and a wage structure effect (e.g. wage discrimination), the wage gap for their second-generation peers is essentially explained by the fact that they are younger and have less tenure than workers born in developed countries. Furthermore, our results emphasize the significant moderating role of geographical origin, gender, and position in the wage distribution. |
| Keywords: | Immigrants, intergenerational studies, labour market integration, wage decompositions, unconditional quantile regressions, employer-employee data |
| JEL: | J15 J16 J21 J24 J31 J61 |
| Date: | 2022–11–29 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvir:2022025&r=ure |
| By: | Francisca M. Antman; Brian Duncan; Stephen J. Trejo |
| Abstract: | This article reviews evidence on the labor market performance of Hispanics in the United States, with a particular focus on the US-born segment of this population. After discussing critical issues that arise in the US data sources commonly used to study Hispanics, we document how Hispanics currently compare with other Americans in terms of education, earnings, and labor supply, and then we discuss long-term trends in these outcomes. Relative to non-Hispanic Whites, US-born Hispanics from most national origin groups possess sizeable deficits in earnings, which in large part reflect corresponding educational deficits. Over time, rates of high school completion by US-born Hispanics have almost converged to those of non-Hispanic Whites, but the large Hispanic deficits in college completion have instead widened. Finally, from the perspective of immigrant generations, Hispanics experience substantial improvements in education and earnings between first-generation immigrants and the second-generation consisting of the US-born children of immigrants. Continued progress beyond the second generation is obscured by measurement issues arising from high rates of Hispanic intermarriage and the fact that later-generation descendants of Hispanic immigrants often do not self-identify as Hispanic when they come from families with mixed ethnic origins. |
| JEL: | I24 J15 J31 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30750&r=ure |
| By: | Vladimir Avetian (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This thesis consists of three chapters that examine from three different perspectives how diversity affects the economy. The first chapter focuses on racial discrimination in rental housing. I concentrate on Moscow's rental housing market, where landlords practice overt discrimination. Using a model with building-level fixed effects, I show that discrimination generates a racial differential in rents: non-discriminatory apartments are 4% more expensive. The second chapter focuses on competition between residents and tourists for urban amenities. Using TripAdvisor reviews, we construct panel data on tourism and consumption in Paris. We show that during the pandemic, a decline in tourism led to an increase in Parisians' satisfaction with restaurants and other amenities. The third chapter explores how contemporary social movements can broaden their base. Using super spread events as a source of plausible exogenous variation at the county level, we find that exposure to the pandemic led to an increase in the likelihood of observing BLM events online and offline. This effect is more pronounced in whiter, more affluent and suburban counties. We show that this effect is driven by higher social media take-up among non-traditional users. |
| Abstract: | Cette thèse se compose de trois chapitres qui examinent sous trois angles différents comment la diversité affecte l'économie. Le premier chapitre porte sur la discrimination raciale dans les logements locatifs. Je me concentre sur le marché unique des logements locatifs de Moscou, où les propriétaires pratiquent une discrimination ouverte. En utilisant un modèle avec des effets fixes au niveau de l'immeuble, je démontre que la discrimination génère un différentiel racial dans les loyers : les appartements non discriminatoires ont un prix supérieur de 4%. Le deuxième chapitre est consacré à la concurrence entre les résidents et les touristes pour les équipements urbains. En utilisant les avis de TripAdvisor, nous construisons des données de panel sur le tourisme et la consommation à Paris. Nous montrons que pendant la pandémie, une baisse du tourisme a entraîné une augmentation de la satisfaction des Parisiens à l'égard des restaurants et d'autres commodités. Le troisième chapitre explore la manière dont les mouvements sociaux contemporains peuvent élargir leur base. En utilisant les événements de super propagation comme source de variation exogène plausible au niveau du comté, nous constatons que l'exposition à la pandémie a conduit à une augmentation de la probabilité d'observer des manifestations BLM en ligne et hors ligne. Cet effet est plus prononcé dans les comtés plus blancs, plus aisés et suburbains. Nous montrons que cet effet est dû à l'utilisation accrue des médias sociaux par les utilisateurs non traditionnels. |
| Keywords: | Discrimination, Diversity, Urban amenity, Protest, Diversité, Aménité urbaine, Protestation |
| Date: | 2022–07–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:tel-03858054&r=ure |
| By: | Clement De Chaisemartin (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, J-PAL Europe - Abdul Latif Jameel Poverty Action Lab - Europe, NBER - National Bureau of Economic Research [New York] - NBER - The National Bureau of Economic Research); Nicolás Navarrete (City University of London) |
| Abstract: | Social and emotional learning (SEL) programs that target disruptive students aim to improve their classroom behavior. Small-scale programs in high-income countries have demonstrated positive effects. Using a randomized experiment, we show that a nationwide SEL program in Chile has no effect. Very disruptive students seem to reduce the program's effectiveness. ADHD being more prevalent in middle-than high-income countries, very disruptive students may be more present there, which could diminish the effectiveness of SEL programs. Moreover, implementation fidelity seems lower in this program than in the small-scale ones considered earlier, which could also explain the program's null effect. |
| Keywords: | disruptive students, spillover effects, peer effects, social and emotional learning, implementation fidelity |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03796424&r=ure |
| By: | Giampaolo Arachi (Università del Salento); Debora Assisi (Università di Bari); Berardino Cesi (DEF, University of Rome "Tor Vergata"); Michele G. Giuranno (Università del Salento); Felice Russo (Università del Salento) |
| Abstract: | This paper assesses the effects of intermunicipal cooperation on public procurement (PP) performance, based on the Italian experience. We estimate a fixed effect regression model using a sample of 50, 905 Italian public works contracts awarded both by municipalities and by municipal unions (MU) from 2012 to 2021. Results prove MU are more efficient than single municipalities at the execution, rather than the winning stage, of the tender. Public tenders awarded by MU show lower winning rebates, shorter delivery delays and, for less complex works, lower final execution extra costs. Furthermore, we investigate whether intergovernmental transfers may enhance PP performance. |
| Keywords: | Public procurement, centralization, local cooperation |
| JEL: | C13 H57 H77 |
| Date: | 2022–12–19 |
| URL: | http://d.repec.org/n?u=RePEc:rtv:ceisrp:548&r=ure |
| By: | Raouf Boucekkine (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique, UCL IRES - Institut de recherches économiques et sociales - UCL - Université Catholique de Louvain = Catholic University of Louvain); Giorgio Fabbri (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Salvatore Federico (DEPS - Dipartimento di Economia Politica e Statistica - UNISI - Università degli Studi di Siena = University of Siena); Fausto Gozzi (Dipartimento di Economia e Finanza [Roma] - LUISS - Libera Università Internazionale degli Studi Sociali Guido Carli [Roma]) |
| Abstract: | In this paper, we revisit the theory of spatial externalities. In particular, we depart in several respects from the important literature studying the fundamental pollution free riding problem uncovered in the associated empirical works. First, instead of assuming ad hoc pollution diffusion schemes across space, we consider a realistic spatiotemporal law of motion for air and water pollution (diffusion and advection). Second, we tackle spatiotemporal non-cooperative (and cooperative) differential games. Precisely, we consider a circle partitioned into several states where a local authority decides autonomously about its investment, production and depollution strategies over time knowing that investment/production generates pollution, and pollution is transboundary. The time horizon is infinite. Third, we allow for a rich set of geographic heterogeneities across states while the literature assumes identical states. We solve analytically the induced non-cooperative differential game under decentralization and fully characterize the resulting long-term spatial distributions. We further provide with full exploration of the free riding problem, reflected in the so-called border effects. In particular, net pollution flows diffuse at an increasing rate as we approach the borders, with strong asymmetries under advection, and structural breaks show up at the borders. We also build a formal case in which a larger number of states goes with the exacerbation of pollution externalities. Finally, we explore how geographic discrepancies affect the shape of the border effects. |
| Keywords: | Spatial externalities,Environmental federalism,Transboundary pollution,Differential games in continuous time and space,Infinite dimensional optimal control problems |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-02613177&r=ure |
| By: | Kasser, Lea (University of Regensburg, CESifo and CEPR); Fischer, Mira (WZB Berlin and IZA); Valero, Vanessa (Loughborough University and CeDEx) |
| Abstract: | Mindfulness-based meditation practices are becoming increasingly popular in Western societies, including in the business world and in education. While the scientific literature has largely documented the benefits of mindfulness meditation for mental health, little is still known about potential spillovers of these practices on other important life outcomes, such as performance. We address this question through a field experiment in an educational setting. We study the causal impact of mindfulness meditation on academic performance through a randomized evaluation of a well-known 8-week mindfulness meditation training delivered to university students on campus. As expected, the intervention improves students' mental health and non-cognitive skills. However, it takes time before students' performance can benefit from mindfulness meditation: we find that, if anything, the intervention marginally decreases average grades in the short run, i.e., during the exam period right after the end of the intervention, whereas it significantly increases academic performance, by about 0.4 standard deviations, in the long run (ca. 6 months after the end of intervention). We investigate the underlying mechanisms and discuss the implications of our results. |
| Keywords: | performance; mental health; education; meditation; field experiment; |
| JEL: | I21 C93 I12 I31 |
| Date: | 2022–11–11 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:349&r=ure |
| By: | Miglo, Anton |
| Abstract: | Crowdfunding is an innovative and fastly growing way of financing for entrepreneurial firms. England is the leading country in crowdfunding. Yet no research exists that compare different cities of UK with regard to the conditions of crowdfunding emergence. In this article we shed some light on this question. We have found that cities with better access to ultrafast broadband among households and cities with greater number of people with higher education have significantly better results in crowdfunding. Further we find that entrepreneurs in these cities select lower crowdfunding targets and are more likely to publish a spotlight about their ideas suggesting that entrepreneurs in these cities understand the importance of imperfect information and signalling (direct and indirect) in crowdfunding. We also discuss these findings in light of crowdfunding theories. |
| Keywords: | crowdfunding, reward-based crowdfunding, crowdfunding in technology sector, digital entrepreneurship, information asymmetry, signalling, factors of crowdfunding success, campaign target |
| JEL: | G32 L26 M21 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:115833&r=ure |
| By: | Billings, Stephen B. (University of Colorado, Boulder); Braun, Noah (University of Pittsburgh); Jones, Daniel (University of Pittsburgh); Shi, Ying (Syracuse University) |
| Abstract: | In Shelby County v. Holder (2013), the Supreme Court struck down a core provision of the Voting Rights Act (VRA) that enabled federal electoral oversight in select jurisdictions. We study whether this decision disproportionately impacted ballot access for Black and Hispanic registered voters. We use a rich dataset on voter behavior for the universe of registered voters combined with Census block-level sociodemographic attributes to document a decrease in turnout for Black, relative to white, individuals. These effects are concentrated in counties with larger Black and Hispanic populations, consistent with strategic targeting of voter suppression. |
| Keywords: | Voting Rights Act, political participation |
| JEL: | D72 J15 K16 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15829&r=ure |
| By: | Danielle V. Handel; Eric A. Hanushek |
| Abstract: | The impact of school resources on student outcomes was first raised in the 1960s and has been controversial since then. This issue enters into the decision making on school finance in both legislatures and the courts. The historical research found little consistent or systematic relationship of spending and achievement, but this research frequently suffers from significant concerns about the underlying estimation strategies. More recent work has re-opened the fundamental resource-achievement relationship with more compelling analyses that offer stronger identification of resource impacts. A thorough review of existing studies, however, leads to similar conclusions as the historical work: how resources are used is key to the outcomes. At the same time, the research has not been successful at identifying mechanisms underlying successful use of resources or for ascertaining when added school investments are likely to be well-used. Direct investigations of alternative input policies (capital spending, reducing class size, or salary incentives for teachers) do not provide clear support for such specific policy initiatives. |
| JEL: | H41 H72 I20 J08 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30769&r=ure |
| By: | Julieta Caunedo; Namrata Kala; Haimeng Zhang |
| Abstract: | The sharing economy for a wide range of goods and services is expanding across the world. To direct the benefits from sharing capital services towards small-scale producers, governments in the developing world are increasingly intervening in fast-growing mechanization rental markets. However, the distributional and efficiency effects of these interventions are not well understood. Using a novel framework and newly collected data, we study an intervention in farm equipment rentals in India. We document large dispersion in rental rates, unused service capacity and delays in service provision. We then evaluate the impact of an increase in subsidized equipment supply in a calibrated model of frictional rental markets, optimal queueing and service dispatch. The constrained efficient allocation prioritizes largescale producers because they economize on equipment travel cost; but small-scale producers are also valuable because they maximize machine-capacity utilization by increasing demand density. Through counterfactuals, we show that even when providers prioritize large-scale farmers, service finding rates for small-scale producers may exceed those of large-scale producers. The ability of additional supply to reach small-scale producers depends on the joint spatial and size distribution of demand, a novel rationale for the heterogeneous impact of subsidies to capital documented in the literature. |
| JEL: | O12 O13 O18 O47 R41 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30788&r=ure |
| By: | Shai Bernstein; Rebecca Diamond; Abhisit Jiranaphawiboon; Timothy McQuade; Beatriz Pousada |
| Abstract: | We characterize the contribution of immigrants to US innovation, both through their direct productivity as well as through their indirect spillover effects on their native collaborators. To do so, we link patent records to a database containing the first five digits of more than 230 million of Social Security Numbers (SSN). By combining this part of the SSN together with year of birth, we identify whether individuals are immigrants based on the age at which their Social Security Number is assigned. We find immigrants represent 16 percent of all US inventors, but produced 23 percent of total innovation output, as measured by number of patents, patent citations, and the economic value of these patents. Immigrant inventors are more likely to rely on foreign technologies, to collaborate with foreign inventors, and to be cited in foreign markets, thus contributing to the importation and diffusion of ideas across borders. Using an identification strategy that exploits premature inventor deaths, we find that immigrant inventors create especially strong positive externalities on the innovation production of their collaborators, while natives have a much weaker impact. A simple decomposition illustrates that immigrants are responsible for 36% of aggregate innovation, two-thirds of which is due to their innovation externalities on their native-born collaborators. |
| JEL: | J6 O31 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30797&r=ure |
| By: | Zanoni, Wladimir; He, Ailin |
| Abstract: | In this paper, we examine whether acquiring citizenship improves the economic assimilation of Canadian migrants. We took advantage of a natural experiment made possible through changes in the Canadian Citizenship Act of 2014, which extended the physical presence requirement for citizenship from three to four years. Using quasi-experimental methods, we found that delaying citizenship eligibility by one year adversely affected Canadian residents' wages. Access to better jobs explains a citizenship premium of 11 percent in higher wages among naturalized migrants. Our estimates are robust to model specifications, differing sampling windows to form the treatment and comparison groups, and whether the estimator is a non-parametric rather than a parametric one. We discuss how our findings are relevant to the optimal design of naturalization policies regarding efficiency and equity. |
| Keywords: | Labor Supply;Citizenship premium |
| JEL: | E24 K37 J61 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:11104&r=ure |
| By: | Berbée, Paul (ZEW); Brücker, Herbert (Institute for Employment Research (IAB), Nuremberg); Garloff, Alfred (Federal Ministry for Economic Affairs and Climate Action); Sommerfeld, Katrin (ZEW) |
| Abstract: | We study the labor demand effect of immigration on local labor markets by exploiting the fact that refugees in Germany are banned from working in the first few months after arrival. This natural experiment allows isolating a pure immigration-induced labor demand effect. For empirical identification we rely on the local presence of vacant military bases and on allocation quotas from a dispersal policy. The results are in line with our predictions from a theoretical framework with non-homothetic demand, where an increasing share in the consumption of necessities is associated with rising demand of labor-intensive goods: As the number of recently arrived refugees and thus the demand for locally produced goods increases, local employment increases particularly in non-tradable sectors in the short run. At the same time, unemployment drops while individual wages do not change significantly which can be traced back to widespread labor market rigidities in Germany. The isolation of labor demand effects complements the literature that isolates labor supply shocks from immigration, so as to gain a more comprehensive understanding of how immigration affects labor markets. |
| Keywords: | labor demand, employment, immigration, refugees, natural experiment |
| JEL: | J23 J60 H50 R10 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15833&r=ure |
| By: | Clément Malgouyres (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, IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics); Thierry Mayer (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, CEPR - Center for Economic Policy Research - CEPR, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique); Clément Mazet-Sonilhac (Centre de recherche de la Banque de France - Banque de France) |
| Abstract: | Suárez Serrato and Zidar (2016) identify state corporate tax incidence in a spatial equilibrium model with imperfectly mobile firms. Their identification argument rests on comparative-statics omitting a channel implied by their model: the link between common determinants of a location's attractiveness and the average idiosyncratic productivity of firms choosing that location. This compositional margin causes the labor demand elasticity to be independent from the product demand elasticity, impeding the identification of incidence from the four estimated reduced-form effects. Assigning consensual values to the unidentified parameters, we find that the incidence share born by firm-owners is closer to 25% than 40%. |
| Keywords: | Incidence, Corporate income tax, Discrete/Continuous choice |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03805536&r=ure |
| By: | Tomohiro Hirano (Royal Holloway, University of London; Centre for Macroeconomics (CFM); Canon Institute for Global Studies); Joseph E. Stiglitz (Columbia University) |
| Abstract: | This paper examines the global macro-dynamics of a dynamic model with capital and land with rational expectations. Through the interactions between capital accumulation and land prices, the economy experiences phase transitions, endogenously moving from back and forth from situations with unique and multiple momentary equilibria. Consequently, there can be a plethora of rational expectation equilibria trajectories, without any smooth convergence properties, neither converging to a steady state or even to a limit cycle—what we call “wobbly” macro-dynamics. The price of land and other key macro variables (wages, interest rates, output, consumption, wealth, capital stock) endogenously fluctuate within a well-identified range with repeated boom-bust cycles. The key disturbance to the economy is endogenous; even with rational expectations, there can be real estate booms, with resource allocation deteriorating as land prices increase, crowding out productive investments; but such unsustainable land price booms inevitably are followed by a crash. We analyze the set of parameter values for which wobbly fluctuations occur, show that with some parameter values, the only r.e. trajectories involve such wobbly dynamics, demonstrate how changes in parameters affect global macro-dynamics, and show how policy interventions can affect stability and social welfare. |
| Keywords: | Interactions between land prices and capital, Critical point, Endogenous phase transitions, Endogenous crash |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:cfm:wpaper:2201&r=ure |
| By: | Leonardo Bursztyn (University of Chicago, NBER - National Bureau of Economic Research [New York] - NBER - The National Bureau of Economic Research); Thomas Chaney (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Tarek Alexander (BU - Boston University [Boston], NBER - National Bureau of Economic Research [New York] - NBER - The National Bureau of Economic Research); Hassan Aakaash Rao (Harvard University [Cambridge]) |
| Abstract: | We study how decades-long exposure to individuals of a given foreign descent shapes natives' attitudes and behavior toward that group. Using individualized donations data from large charitable organizations, we show that long-term exposure to a given foreign ancestry leads to more generous behavior specifically toward that group's ancestral country. To shed light on mechanisms, we focus on attitudes and behavior toward Arab Muslims, combining several existing large-scale surveys, cross-county data on implicit prejudice, and a newly-collected national survey. We show that greater long-term exposure: (i) decreases both explicit and implicit prejudice against Arab-Muslims, (ii) reduces support for policies and political candidates hostile toward Arab-Muslims, (iii) leads to more personal contact with Arab-Muslim individuals, and (iv) increases knowledge of Arab-Muslims and Islam in general. |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03870145&r=ure |
| By: | Bredtmann, Julia; Otten, Sebastian |
| Abstract: | This paper analyzes the impact of source-country culture on the labor supply of female immigrants in Europe. We find that the labor supply of immigrant women is positively associated with the female-to-male labor force participation ratio in their source country, which serves as a proxy for the country's preferences and beliefs regarding women's roles. This suggests that the culture and norms of their source country play an important role for immigrant women's labor supply. However, contradicting previous evidence for the U.S., we do not find evidence that the cultural effect persists through the second generation. |
| Keywords: | Female labor force participation, immigration, integration, cultural transmission, epidemiological approach |
| JEL: | J16 J22 J61 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:986&r=ure |
| By: | Giacomo Cazzola (EPiC Earth and Polis Research Centre, Fondazione Eni Enrico Mattei and Università Iuav di Venezia) |
| Abstract: | This paper proposes an application of the analytical path assembled within my PhD research on Disaster Risk Creation (DRC) in humanitarian contexts, to Flood Risk Management (FRM) planning in Italy. The investigation concerns some key challenges, for spatial planning and disaster risk management, in understanding, evaluating, and addressing Disaster Risk (DR) drivers and pressures, those processes and land uses enhancing exposure, vulnerability and flood hazard itself. The reference methodological approach benefits from well-established theoretical models of causal analysis of Disaster Risk Creation processes as bridging analytical construct for reordering and coordinating flood risk management interventions. These theoretical and analytical reflections are build upon a gap between the European Water Framework and the Flood Directives that, despite their many interconnections and commonalities, differ in the focus (or lack of) on underlying causal factors. Thus, the Water Framework Directive provides a valuable operational reference for orienting flood risk management planning to the reduction of disaster risk creation components. |
| Keywords: | Flood Risk Management, European Flood Directive, Risk Driver, Spatial Planning |
| JEL: | Q54 R58 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2022.43&r=ure |
| By: | Jérémy Hervelin (CY - CY Cergy Paris Université, THEMA - Théorie économique, modélisation et applications - CNRS - Centre National de la Recherche Scientifique - CY - CY Cergy Paris Université); Pierre Villedieu (Sciences Po - Sciences Po, LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques (Sciences Po) - Sciences Po - Sciences Po) |
| Abstract: | This paper investigates whether work experience gained through a subsidized job program can improve the employment prospects of young school dropouts. Relying on a correspondence study field experiment conducted in France, we find that the chances to be invited for a job interview are more than doubled (from 7.6 percent to 19.3 percent) when youths signal a one-year job-related experience in their résumé - either in the private or public sector; either certified or not - compared to youths who remained mainly inactive after dropping out from high school. We show that this effect is fairly stable across firm, contract or labor market characteristics, and also when testing another channel of application where resumes were sent spontaneously to firms. |
| Keywords: | School dropouts, Work experience, Subsidized employment, Job Interview, Field experiment |
| Date: | 2022–07–18 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:halshs-03618526&r=ure |
| By: | Clément Malgouyres (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, IPP - Institut des politiques publiques); Thierry Mayer (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, CEPR - Center for Economic Policy Research - CEPR); Clément Mazet-Sonilhac (Banque de France - Banque de France - Banque de France, ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Suárez Serrato and Zidar (2016) identify state corporate tax incidence in a spatial equilibrium model with imperfectly mobile firms. Their identification argument rests on comparative-statics omitting a channel implied by their model: the link between common determinants of a location's attractiveness and the average idiosyncratic productivity of firms choosing that location. This compositional margin causes the labor demand elasticity to be independent from the product demand elasticity, impeding the identification of incidence from the four estimated reduced-form effects. Assigning consensual values to the unidentified parameters, we find that the incidence share born by firm-owners is closer to 25% than 40%. |
| Keywords: | Incidence, Corporate income tax, Discrete/continuous choice |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:halshs-03082268&r=ure |
| By: | Qianshuo Liu; Inés Macho-Stadler |
| Abstract: | We propose a simple three-stage model where heterogeneous schools compete via tuition fees, individuals with the ex-ante unknown ability make their education choices to (eventually) get a diploma and reveal their ability, and finally the job market determines the assignment of workers to firms and the equilibrium wages. In equilibrium, wages in the labor market and schools’ fees and individuals’ school choices are strongly related. We also analyze the effects of the existence of a public school or a subsidy on social welfare. |
| Keywords: | education choices, skills, job market |
| JEL: | I26 C78 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:1379&r=ure |