nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2023‒02‒06
63 papers chosen by
Steve Ross
University of Connecticut

  1. Historical Patterns and Recent Impacts of Chinese Investors in United States Real Estate By Kevin Sun
  2. Urban Renewal and Inequality: Evidence from Chicago's Public Housing Demolitions By Milena Almagro; Eric Chyn; Bryan A. Stuart
  3. Who stays and who leaves? Immigration and the selection of natives across locations By Javier Ortega; Gregory Verdugo
  4. Culture and the creative economy in Lithuania and municipalities of Klaipėda, Neringa and Palanga By OECD
  5. Local Inequities in the Relative Production of and Exposure to Vehicular Air Pollution in Los Angeles By Geoff Boeing; Yougeng Lu; Clemens Pilgram
  6. The Unintended Consequences of Test-Based Remediation By David N. Figlio; Umut Özek
  7. Who stays and who leaves? Immigration and the selection of natives across locations By Javier Ortega; Gregory Verdugo
  8. House Prices and Rents in the 21st Century By Lara Loewenstein; Paul S. Willen
  9. The Freight Space Race: Curbing the Impact of Freight Deliveries in Cities By ITF
  10. Ability composition in the class and the school performance of immigrant students By Meschi, Elena; Pavese, Caterina
  11. Disparities in Pollution Capitalization Rates: The Role of Direct and Systemic Discrimination By Joshua S. Graff Zivin; Gregor Singer
  12. School-Based Healthcare and Absenteeism: Evidence from Telemedicine By Komisarow, Sarah; Hemelt, Steven W.
  13. The Long Run Impacts of Court-Ordered Desegregation By Garrett Anstreicher; Jason Fletcher; Owen Thompson
  14. Forced Migration and Social Cohesion: Evidence from the 2015/16 Mass Inflow in Germany By Albarosa, Emanuele; Elsner, Benjamin
  15. RGP Analysis and Policy Tasks for Regional Industries By Kim, Young Soo
  16. Education inequality By Blanden, Jo; Doepke, Matthias; Stuhler, Jan
  17. How do mass lay-offs affect regional economies? By Wessel Vermeulen; Nils Braakmann
  18. A new dataset to study a century of innovation in Europe and in the US By Bergeaud, Antonin; Verluise, Cyril
  19. Long-range connections and mixed diffusion in fractional networks By Tanya Araújo; Rui Vilela Mendes
  20. "Satellite-Based Vehicle Flow Data to Assess Local Economic Activities" By Eugenia Go; Kentaro Nakajima; Yasuyuki Sawada; Kiyoshi Taniguchi
  21. Schools as Safety Nets: Break-Downs and Recovery in Reporting of Violence against Children By Clarke, Damian; Larroulet, Pilar; Pailañir, Daniel; Quintana, Daniela
  22. Partisanship and the ffectiveness of Fiscal Equalization: Evidence from French Municipalities By Touria Jaaidane; Sophie Larribeau
  23. Household Leverage and Labor Market Outcomes : Evidence from a Macroprudential Mortgage Restriction By Gazi KabaÅŸ; Kasper Roszbach
  24. The Regional Keynesian Cross By Marco Bellifemine; Adrien Couturier; Rustam Jamilov
  25. Loan-to-Value Shocks and Macroeconomic Stability By Emmanuel De Veirman
  26. The Effects of Electronic Monitoring on Offenders and their Families By Julien Grenet; Hans Grönqvist; Susan Niknami
  27. The importance of access to knowledge for technological progress in the Industrial Revolution By Erik Hornung; Julius Koschnick; Francesco Cinnirella
  28. American Indian Casinos and Native American Self-Identification By Antman, Francisca M.; Duncan, Brian
  29. Designing Digital Actor Engagement Platforms for Local High Streets: An Action Design Research Study By Christian Bartelheimer; C. Ingo Berendes; Philipp zur Heiden; Daniel Beverungen
  30. Border Apprehensions and Federal Sentencing of Hispanic Citizens in the United States By Bertoli, Simone; Laouénan, Morgane; Valette, Jérôme
  31. Native-born-immigrant wage gap revisited: The role of market imperfections in Canada By Aydede, Yigit; Dar, Atul A.
  32. Identifying network ties from panel data: theory and an application to tax competition By Áureo de Paula; Imran Rasul; Pedro CL Souza
  33. Deterrence or Backlash? Arrests and the Dynamics of Domestic Violence By Amaral, Sofia; Dahl, Gordon B.; Endl-Geyer, Victoria; Hener, Timo; Rainer, Helmut
  34. The labor demand effects of refugee immigration: Evidence from a natural experiment By Berbée, Paul; Brücker, Herbert; Garloff, Alfred; Sommerfeld, Katrin
  35. Do inequalities predict fear of crime? Empirical evidence from Mexico By Matthieu Clement; Lucie Piaser
  36. Local Conditions of Sexism During Adolescence and Women’s Longer Term Outcomes By Fletcher, Jason
  37. Mandatory Seatbelt Laws and Traffic Fatalities: A Reassessment By Anderson, D. Mark; Liang, Yang; Sabia, Joseph J.
  38. The Spatial Drivers of Discrimination: Evidence From Anti-Muslim Fake News in India By Samira S. Abraham; Gianandrea Lanzara; Sara Lazzaroni; Paolo Masella; Mara P. Squicciarini
  39. Monopsony, Job Tasks, and Labor Market Concentration By Samuel Dodini; Michael F. Lovenheim; Kjell G. Salvanes; Alexander Willén
  40. Losing height: measuring the regional loss of human capital from the Republican exile to Mexico By Sanchez Alonso, Blanca; Santiago Caballero, Carlos
  41. Do Role Models Matter in Large Classes? New Evidence on Gender Match Effects in Higher Education By Maurer, Stephan; Schwerdt, Guido; Wiederhold, Simon
  42. Time Savings When Working from Home By Aksoy, Cevat Giray; Barrero, Jose Maria; Bloom, Nicholas; Davis, Steven J.; Dolls, Mathias; Zarate, Pablo
  43. When Immigrants Meet Exporters: A Reassessment of the Immigrant Wage Gap By Léa Marchal; Guzman Ourens; Giulia Sabbadini
  44. The Long-Run Earnings Effects of Winning a Mayoral Election By Bertoni, Marco; Brunello, Giorgio; Cappellari, Lorenzo; De Paola, Maria
  45. Schooling and Labor Market Consequences of School Construction in Indonesia: Comment By Roodman, David
  46. Fiscal Policies for Job Creation and Innovation: The Experiences of US States By Robert S. Chirinko; Daniel J. Wilson
  47. Cliometrics of Learning-Adjusted Years of Schooling: Evidence from a New Dataset. By Nadir ALTINOK; Claude DIEBOLT
  48. Ask a local: improving the public pricing of land titles in urban Tanzania By Manara, Martina; Regan, Tanner
  49. Leveraging Mobile Phone Expansion in LMICs to Improve Parental Practices By Bastien Michel; Samuel Kembou Nzale; Sonali Wayal; Joanna Murray
  50. Real-time ineuqalities and policies during the pandemic in the US By Luisa Corrado; Daniela Fantozzi; Simona Giglioli
  51. The relation between digitalization and regional development in Romania By Antonescu, Daniela
  52. Is online retail killing coffee shops? Estimating the winners and losers of online retail using customer transaction microdata By Relihan, Lindsay
  53. Changing mutuality: Building a house with unpaid labour in Bulgaria By Detelina Tocheva
  54. Effects of Chinese Import Competition on U.S. Self-employment By Bulent Unel
  55. Impacts of E-bike Ownership on Travel Behavior: Evidence from three Northern California rebate programs By Johnson, Nicholas; Fitch-Polse, Dillon; Handy, Susan
  56. Financial Crisis and Long-Run Labor Demand: Evidence from the Swedish Banking Crisis in the Early 90s By Julien Grenet; Hans Grönqvist; Daniel Jahnson
  57. Initiation of knowledge and technology transfer from academia to industry: Opportunity recognition and transfer channel choice By Matthias Huegel; Philip Doerr; Martin Kalthaus
  58. Immigrant workers and firm resilience on the export market By Léa Marchal; Giulia Sabbadini
  59. Reducing Bullying: Evidence from a Parental Involvement Program on Empathy Education By Flavio Cunha; Qinyou Hu; Yiming Xia; Naibao Zhao
  60. Knowledge spillovers from clean and emerging technologies in the UK By Martin, Ralf; Verhoeven, Dennis
  61. Occupational Regulation, Institutions, and Migrants' Labor Market Outcomes By Maria Koumenta; Mario Pagliero; Davud Rostam-Afschar
  62. Distant but close in sight. Firm-level evidence on French-German productivity gaps in manufacturing By Thomas Grebel; Mauro Napoletano; Lionel Nesta
  63. Does co-residence with parents-in-law reduce women's employment in India? By Rajshri Jayaraman; Bisma Khan

  1. By: Kevin Sun
    Abstract: Since supplanting Canada in 2014, Chinese investors have been the lead foreign buyers of U.S. real estate, concentrating their purchases in urban areas with higher Chinese populations like California. The reasons for investment include prestige, freedom from capital confiscation, and safe, diversified opportunities from abroad simply being more lucrative and available than in their home country, where the market is eroding. Interestingly, since 2019, Chinese investors have sold a net 23.6 billion dollars of U.S. commercial real estate, a stark contrast to past acquisitions between 2013 to 2018 where they were net buyers of almost 52 billion dollars worth of properties. A similar trend appears in the residential real estate segment too. In both 2017 and 2018, Chinese buyers purchased over 40, 000 U.S. residential properties which were halved in 2019 and steadily declined to only 6, 700 in the past year. This turnaround in Chinese investment can be attributed to a deteriorating relationship between the U.S. and China during the Trump Presidency, financial distress in China, and new Chinese government regulations prohibiting outbound investments. Additionally, while Chinese investment is a small share of U.S. real estate (~1.5% at its peak), it has outsized impacts on market valuations of home prices in U.S. zip codes with higher populations of foreign-born Chinese, increasing property prices and exacerbating the issue of housing affordability in these areas. This paper investigates the rapid growth and decline of Chinese investment in U.S. real estate and its effect on U.S. home prices in certain demographics.
    Date: 2022–12
  2. By: Milena Almagro; Eric Chyn; Bryan A. Stuart
    Abstract: This paper studies one of the largest spatially targeted redevelopment efforts implemented in the United States: public housing demolitions sponsored by the HOPE VI program. Focusing on Chicago, we study welfare and racial disparities in the impacts of demolitions using a structural model that features a rich set of equilibrium responses. Our results indicate that demolitions had notably heterogeneous effects where welfare decreased for low-income minority households and increased for White households. Counterfactual simulations explore how housing policy mitigates negative effects of demolitions and suggest that increased public housing site redevelopment is the most effective policy for reducing racial inequality.
    JEL: I31 R23 R28
    Date: 2023–01
  3. By: Javier Ortega (Kingston University [London]); Gregory Verdugo (EPEE - Centre d'Etudes des Politiques Economiques - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay, OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)
    Abstract: We study the impact of local immigration inflows on natives' wages using a large French administrative panel from 1976-2007. We show that local immigration inflows are followed by reallocations of blue-collar natives across commuting zones. Because these reallocations vary with the initial occupation and blue-collar location movers have wages below the blue-collar average, controlling for changes in local composition is crucial to assess how wages adjust to immigration. Immigration temporarily lowers the wages of blue-collar workers, with unskilled workers experiencing larger losses. Location movers lose more than stayers in terms of daily wages but move to locations with cheaper housing.
    Keywords: Immigration, Wages, Employment, France
    Date: 2021
  4. By: OECD
    Abstract: Cultural and creative sectors are a significant driver of local development through job creation and income generation, spurring innovation across the economy and increasing the attractiveness of cities and regions as destinations to visit, work and live. This case study offers a review of cultural and creative sectors in Lithuania, highlighting issues and trends in employment and business development, financing and cultural participation. It brings a specific focus on three municipalities within the County of Klaipėda located on the Baltic coast – Klaipėda City, Neringa and Palanga – small cities specialised in port activities, logistics, traditional manufacturing and seaside resort tourism. It highlights how culture and creative sectors can be leveraged to foster local development, diversify the economy and strengthen territorial attractiveness. It provides recommendations and international examples on ways to support business development in creative sectors and to strengthen synergies between culture and tourism.
    Keywords: creative industries, cultural employment, culture and local development
    JEL: I31 Z1
    Date: 2023–01–25
  5. By: Geoff Boeing; Yougeng Lu; Clemens Pilgram
    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
  6. By: David N. Figlio; Umut Özek
    Abstract: School systems around the world use achievement tests to assign students to schools, classes, and instructional resources, including remediation. Using a regression discontinuity design, we study a Florida policy that places middle school students who score below a proficiency cutoff into remedial classes. Students scoring below the cutoff receive more educational resources, but they are also placed in classes that are more segregated by race, socio-economic status, and prior achievement. Increased tracking occurs not only in the remedial subject, but also in other core subjects. These tracking effects are significantly larger and more likely to persist beyond the year of remediation for Black students.
    JEL: I21 I24 I28
    Date: 2023–01
  7. By: Javier Ortega; Gregory Verdugo (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)
    Abstract: We study the impact of local immigration inflows on natives' wages using a large French administrative panel from 1976-2007. We show that local immigration inflows are followed by reallocations of blue-collar natives across commuting zones. Because these reallocations vary with the initial occupation and blue-collar location movers have wages below the blue-collar average, controlling for changes in local composition is crucial to assess how wages adjust to immigration. Immigration temporarily lowers the wages of blue-collar workers, with unskilled workers experiencing larger losses. Location movers lose more than stayers in terms of daily wages but move to locations with cheaper housing.
    Keywords: France, immigration, wages, employment
    Date: 2021–01–01
  8. By: Lara Loewenstein; Paul S. Willen
    Abstract: We study the joint evolution of prices and rents of residential property. We construct indices for both rents and prices of renter-occupied properties and for prices of owner-occupied properties. We then decompose the change in the price of occupant-owned property into three components: (1) changes in rent, (2) changes in the relative prices of investor- and occupant-owned properties, and (3) changes in the price-rent ratio. We use a simple model to link our decomposition to different sources of variation in house prices. We argue that while the 2000s boom was plausibly driven by exuberant expectations, the boom of the 2020s more likely resulted from a preference shock.
    Keywords: House Price Overvaluation; Rent-price Ratio; Credit Shocks; Housing Bubbles
    JEL: R30 R31 E30 E32 H31
    Date: 2023–01–05
  9. By: ITF
    Abstract: This report explores ways of making deliveries in cities less disruptive and more sustainable. How goods are distributed in urban environments profoundly affects metropolitan life. Urban freight flows impact cities’ economic vitality, their environmental footprint, the safety and efficiency of traffic and the ways public space is used. The report examines how new partnerships, innovative methods, the use of data and intelligent space allocation can ease the pressure on cities and their inhabitants by rapidly growing freight movements in urban areas. It also addresses whether solutions require new forms of data management, what new types of delivery vehicles might be required and how actors can co-ordinate more effectively.
    Date: 2022–12–06
  10. By: Meschi, Elena; Pavese, Caterina
    Abstract: Using longitudinal data from the Italian National Institute for the Evaluation of the Education System (INVALSI), this paper investigates whether the ability of classmates affects the educational attainment of immigrant students. We focus not only on the average quality of peers in the class, but we further investigate which part of the ability distribution of peers drives the effect, by assessing the role played by the extreme tails of the ability distribution. Our empirical strategy addresses students' endogenous sorting into classes by exploiting the within-student across-subjects variation in achievements and the simultaneity problem by using predetermined measures of peers' ability. We show that peers' ability matters. While native students are mostly influenced by the average quality of their peers, immigrant children are detrimentally affected by the fraction of very low achievers in the classroom. Our findings provide valuable guidance to policymakers concerning the allocation of students to classes in order to foster immigrant students' integration and learning.
    Keywords: Peer effects, Immigrant students, Education
    JEL: J15 I21
    Date: 2023
  11. By: Joshua S. Graff Zivin; Gregor Singer
    Abstract: We examine how exogenous changes in exposure to air pollution over the past two decades have altered the disparities in home values between Black and White homeowners. We find that air quality capitalization rates are significantly lower for Black homeowners. In fact, they are so much lower that, despite secular reductions in the Black-White pollution exposure gap, disparities in housing values have increased during this period. An exploration of mechanisms suggests that roughly one-quarter of this difference is the result of direct discrimination while the remaining three-quarters can be attributed to systemic discrimination through differential access to complementary amenities.
    JEL: J15 Q53 R31
    Date: 2022–12
  12. By: Komisarow, Sarah (Duke University); Hemelt, Steven W. (University of North Carolina, Chapel Hill)
    Abstract: The prevalence of school-based healthcare has increased markedly over the past decade. We study a modern mode of school-based healthcare, telemedicine, that offers the potential to reach places and populations with historically low access to such care. School-based telemedicine clinics (SBTCs) provide students with access to healthcare during the regular school day through private videoconferencing with a healthcare provider. We exploit variation over time in SBTC openings across schools in three rural districts in North Carolina. We find that school-level SBTC access reduces the likelihood that a student is chronically absent by 2.5 percentage points (29 percent) and reduces the number of days absent by about 0.8 days (10 percent). Relatedly, access to an SBTC increases the likelihood of math and reading test-taking by between 1.8- 2.0 percentage points (about 2 percent). Heterogeneity analyses suggest that these effects are driven by male students. Finally, we see suggestive evidence that SBTC access reduces violent or weapons-related disciplinary infractions among students but has little influence on other forms of misbehavior.
    Keywords: school-based healthcare, student absences, telemedicine
    JEL: I10 I21
    Date: 2023–01
  13. By: Garrett Anstreicher; Jason Fletcher; Owen Thompson
    Abstract: Court ordered desegregation plans were implemented in hundreds of US school districts nationwide from the 1960s through the 1980s, and were arguably the most substantive national attempt to improve educational access for African American children in modern American history. Using large Census samples that are linked to Social Security records containing county of birth, we implement event studies that estimate the long run effects of exposure to desegregation orders on human capital and labor market outcomes. We find that African Americans who were relatively young when a desegregation order was implemented in their county of birth, and therefore had more exposure to integrated schools, experienced large improvements in adult human capital and labor market outcomes relative to Blacks who were older when a court order was locally implemented. There are no comparable changes in outcomes among whites in counties undergoing an order, or among Blacks who were beyond school ages when a local order was implemented. These effects are strongly concentrated in the South, with largely null findings in other regions. Our data and methodology provide the most comprehensive national assessment to date on the impacts of court ordered desegregation, and strongly indicate that these policies were in fact highly effective at improving the long run socioeconomic outcomes of many Black students.
    Keywords: School Desegregation, Student Outcomes, Racial Inequality
    Date: 2022–04
  14. By: Albarosa, Emanuele (University College Dublin); Elsner, Benjamin (University College Dublin)
    Abstract: A commonly expressed concern about immigration is that it undermines social cohesion in the receiving country. In this paper, we study the impact of a large and sudden inflow of asylum seekers on several indicators of social cohesion. In 2015/16, over one million asylum seekers from Syria, Afghanistan, and elsewhere arrived in Germany. Anecdotal evidence suggests that this inflow changed the public opinion on hosting asylum seekers, from being highly welcoming to fairly negative within a few months. Using individual- and county-level panel data, we test whether the evidence supports this apparent shift in attitudes. In a difference-in-differences design, we compare the attitudes of individuals in areas with large vs. small local inflows before and after the inflow. In individual survey data, we find mixed evidence of an impact on social cohesion. In a representative sample, we find no evidence that the inflow undermined social cohesion, except for a negative effect on donations to charity. In areas with high vote shares for the populist party AfD, we find that the inflow led to greater anti-immigrant sentiment and a greater concern about crime. We also show that areas with larger increases in the number of asylum seekers experienced a significant increase in anti-immigrant violence, which lasted for about two years before returning to its pre-inflow level. This effect was larger in areas with higher unemployment and greater support for AfD.
    Keywords: forced migration, social attitudes, anti-immigrant violence
    JEL: J15 J61
    Date: 2023–01
  15. By: Kim, Young Soo (Korea Institute for Industrial Economics and Trade)
    Abstract: Growth potential is the totality of growth factors that can contribute to current or future growth. The core growth potential of the digital economy era should be identified in business and industrial capabilities that are expressed based on human capital and regional innovation. Therefore, regional growth potential (RGP) can be defined as the sum of regional growth performance (Y), corporate/industrial capabilities (K), human capital capabilities (H), regional innovation capabilities (I), and local community capabilities (S). Based on this framework, this paper designs a system of RGP indicators and employed it in an analysis of megaregions, municipalities, and provinces. The results of the analysis suggest the following. First, RGP has a mechanism by which human capital/local innovation/local community capabilities translate into corporate/industrial capabilities that in turn result in regional growth performance. Second, the mechanism by which RGP is expressed exhibits a higher correlation at the megaregion level than in individual cities or provinces. Third, the growth potential gap between the Seoul Capital Area (SCA)/ the Chungcheong megaregion and other megaregions has been widening. Fourth, the decrease in the relative growth potential of the Southeast megaregion and Daegu/Gyeongbuk megaregion — which together host clusters of Korea’s flagship manufacturing industries — is a serious problem which needs to be addressed as at the national industrial policy level. Finally, regions with excellent growth potential show distinctive characteristics compared to regions with poor growth potential at the municipal and provincial levels. Based on this, this paper suggested the following policies to promote regional industries. First, policy efforts should be stepped up to expand innovation investment in existing flagship industries and foster new industries. Second, it is necessary to nurture talented workers who will lead innovation in the digital economy era and expand innovation support primarily for talented workers who are likely to stay in the region. Third, the focus should be on creating quality jobs with high added value targeting knowledge service industries connected to region-specific manufacturing industries. Fourth, it is important to create a compelling regional environment for startups and skilled workers.
    Keywords: Regional Innovation; Regional Growth Performance; Regional Growth Potential
    JEL: R58
    Date: 2022–03–31
  16. By: Blanden, Jo; Doepke, Matthias; Stuhler, Jan
    Abstract: This paper provides new evidence on educational inequality and reviews the literature on the causes and consequences of unequal education. We document large achievement gaps between children from different socio-economic backgrounds, show how patterns of educational inequality vary across countries, time, and generations, and establish a link between educational inequality and social mobility. We interpret this evidence from the perspective of economic models of skill acquisition and investment in human capital. The models account for different channels underlying unequal education and highlight how endogenous responses in parents' and children's educational investments generate a close link between economic inequality and educational inequality. Given concerns over the extended school closures during the Covid-19 pandemic, we also summarize early evidence on the impact of the pandemic on children's education and on possible long-run repercussions for educational inequality.
    Keywords: educational inequality; education finance; children
    JEL: J1
    Date: 2022–04–28
  17. By: Wessel Vermeulen; Nils Braakmann (Newcastle University Business School)
    Abstract: Mass lay-offs from firms and plant restructuring occur regularly and can have potentially large consequences on places and communities. Policy makers may consider supporting firms, in order to prevent mass lay-offs but at the risk of interfering with economic dynamism, or targeting affected workers, to help them transition to new employment. Which strategy (firms versus workers) is the most appropriate and under which circumstances can be informed by better understanding the nature of the economic impact from mass lay-offs. This paper estimates the impact of mass lay-offs between 2008-18 across small regions (TL3) in Europe on regional employment and productivity. It finds there are persistent negative employment effects of mass lay-offs, and rural regions are more negatively affected on average. In part because of differences in the nature of the firm in the region, its relationship with nearby suppliers and clients, and the broader economic context of the region, productivity effects can be both positive and negative over the longer term.
    Keywords: economic shocks, local labour market, mass lay-offs, regional resilience
    JEL: J21 R12 R23
    Date: 2023–01–20
  18. By: Bergeaud, Antonin; Verluise, Cyril
    Abstract: Innovation is an important driver of potential growth but quantitative evidence on the dynamics of innovative activities in the long-run are hardly documented due to the lack of data, especially in Europe. In this paper, we introduce PatentCity, a novel dataset on the location and nature of patentees from the 19th century using information derived from an automated extraction of relevant information from patent documents published by the German, French, British and US Intellectual Property offices. This dataset has been constructed with the view of facilitating the exploration of the geography of innovation and includes additional information on citizenship and occupation of inventors.
    Keywords: history of innovation; patent; text as data
    JEL: R14 J01 J1
    Date: 2022–04–28
  19. By: Tanya Araújo; Rui Vilela Mendes
    Abstract: Networks with long-range connections obeying a distance-dependent power law of su¢ ciently small exponent display superdiffusion, Levy flights and robustness properties very di§erent from the scale-free networks. It has been proposed that these networks, found both in society and biology, be classified as a new structure, the fractional networks. Particular important examples are the social networks and the modular hierarchical brain networks where both short-and long-range connections are present. The anomalous superdi§usive and the mixed diffusion behavior of these networks is studied here as well as its relation to the nature and density of the long-range connections.
    Date: 2023–02
  20. By: Eugenia Go (World Bank); Kentaro Nakajima (Institute of Innovation Research, Hitotsubashi University); Yasuyuki Sawada (Faculty of Economics, The University of Tokyo); Kiyoshi Taniguchi (Asian Development Bank)
    Abstract: Spatially and seasonally granular measures of local economic activities are increasingly required in a variety of economic analyses. We propose using novel vehicle density data obtained from daytime satellite images to quantify the local economic activity involving human and goods traffic flows. Validation exercises show that vehicle density is a good proxy for local economic levels. We then apply our data to evaluate the impact of a new international airport terminal opening in the Philippines on local economies. The results show that the opening of the new terminal has spatially and seasonally heterogeneous impacts that conventional data cannot ca
    Date: 2023–01
  21. By: Clarke, Damian (University of Chile); Larroulet, Pilar (Pontificia Universidad Catolica de Chile); Pailañir, Daniel (University of Chile); Quintana, Daniela (Central Bank of Chile)
    Abstract: Schools are a key channel in formal reporting of violence against children, but this channel broke down with the onset of the COVID-19 pandemic. We study how widespread such reporting declines are, and to what extent they were recovered once re-openings begin. Examining the universe of all criminal reports of violence against children in Chile, we observe sharp declines in reporting of all types of violence (psychological, physical, and sexual), and that full recovery in reporting had not occurred, even nearly 2 years following initial school closures. Our estimates suggest that school closure and incomplete re-opening resulted in around 2, 800 'missing' reports of intra-family violence against children, 2, 000 missing reports of sexual assault, and 230 missing reports of rape against children, equivalent to between 10-25 weeks of reporting at baseline. In the post-school closure period, we find that greater school attendance encourages faster and more complete recovery in reporting of violence against children, pointing to important non-cognitive costs of both school closure, and school absence.
    Keywords: violence against children, reporting, school closure, school attendance, COVID-19
    JEL: D10 I28 I18 K42
    Date: 2023–01
  22. By: Touria Jaaidane (Université de Lille, LEM (UMR 9221)); Sophie Larribeau (Univ Rennes, CNRS, CREM - UMR 6211, F-35000 Rennes)
    Abstract: We are interested in the effectiveness of the scal equalization system at the French municipal level. This system hinges on both vertical equalizing transfers from the State to the municipalities and horizontal equalization dened at the consolidated level (municipalities and the inter-municipal body they belong to). The transfer received by municipalities from the State, consisting of a lump-sum and an equalizing component, is formula-based. A whole set of criteria is used to dene its amount. An equalization fund is also used to redistribute resources horizontally, from the richest inter-municipal block entities to the poorest. Our main empirical results, using a large panel dataset of French municipalities with more than 1, 000 inhabitants over the very recent period 2018-2022, are three-fold. We first find evidence for the role of the different criteria used to allocate the vertical transfer. Second, the equalization of tax capacities is operated mainly through the vertical transfer, as compared to the horizontal scheme whose performance is modest. We also find a number of dysfunctions in the equalization schemes, undermining their eectiveness. Third, we show that local politics comes into play and introduces partisanship in the allocation of the vertical transfer, which is at odds with the criteria-based rule.
    Keywords: Fiscal equalization, Inter-governmental transfers, Local governments, Inter-municipal cooperation, Partisanship, RDD
    JEL: D78 H70 H72 C23
    Date: 2023–01
  23. By: Gazi KabaÅŸ; Kasper Roszbach
    Abstract: Does household leverage matter for worker job search, matching in the labor market, and wages? Theoretically, household leverage can have opposing effects on the labor market through debt-overhang and liquidity constraint channels. To test which channel dominates empirically, we exploit the introduction of a loan-to-value ratio restriction in Norway that exogenously reduces household leverage. Focusing on a sample of displaced workers who bought a house before losing their jobs due to mass layoffs, we find that a reduction in leverage raises the subsequent wages of these workers. Lower leverage enables workers to search longer, find jobs in higher-paying firms, and switch into new occupations and industries. The positive effect on wages is persistent and more pronounced for young and highly-educated workers who are more likely to benefit from the effects of a reduction in leverage on job search. Our results indicate that in addition to reducing financial stability risks, policies limiting household leverage can improve workers’ labor market outcomes.
    Keywords: Household Leverage, Household Debt, Job Displacement, Job Search, Macroprudential Policy
    JEL: E21 G21 G51 J21
    Date: 2021–11
  24. By: Marco Bellifemine; Adrien Couturier; Rustam Jamilov
    Abstract: We study monetary policy transmission across space. Empirically, we show that two channels explain a sizable portion of the variation in the regional effects of identified U.S. monetary policy shocks: local marginal propensities to consume (MPCs), as captured by household wealth, and industry composition, as measured by the local share of non-tradable employment. Theoretically, we develop a heterogeneous agents New Keynesian (HANK) model of a monetary union with two-layered regional heterogeneity in household and industry composition. We provide a sequence-space characterization of the response of local employment to unexpected changes in interest rates as a function of intertemporal MPCs and industry composition: the regional Keynesian cross. Central to our theory is an equilibrium complementarity between these two sources of regional heterogeneity. We provide direct empirical evidence of this household industry complementarity, thus validating our key model mechanism. Quantitatively, reactions from fiscal authorities and the rest of the nation are key determining factors of the aggregate regional economic response.
    Date: 2022–12–24
  25. By: Emmanuel De Veirman
    Abstract: This paper documents the macroeconomic effects of changes in downpayment re- quirements on mortgage loans in a model where investment is undertaken by collateral- constrained agents. I find that a permanent tightening in lending standards substan- tially lowers aggregate spending in the short run and permanently lowers house prices. These effects are much larger than in earlier findings from a model where unconstrained agents invest. Furthermore, I document that the amplification of macroeconomic shocks is much stronger when steady-state loan-to-value ratios are high. The loan-to-value shock itself is amplified to a greater extent when the loan-to-value ratio starts out at a higher level. In that sense, the effects of loan-to-value ratios on the economy are non-linear.
    Keywords: Collateral effect; financial accelerator
    JEL: D11 D50 D52 E21
    Date: 2023–01
  26. By: Julien Grenet (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); Hans Grönqvist (Linnaeus University, IFAU - Institute for Evaluation of Labour Market and Education Policy); Susan Niknami (Stockholm University)
    Abstract: Electronic monitoring (EM) is a popular instrument to reduce large prison populations. Evidence on the effects of EM on criminal recidivism is, however, limited and it is unclear how this alternative to incarceration affects the labor market outcomes of offenders. Moreover, little is known about potential spillover effects on family members. We study the introduction of EM in Sweden in 1997 wherein offenders sentenced to up to three months in prison were given the possibility to avoid entering prison by substituting to EM. Our difference-indifferences estimates comparing the change in the prison inflow rate of eligible offenders to that of non-eligible offenders with slightly longer sentences show that the reform dramatically decreased incarcerations. Our main finding is that EM lowers criminal recidivism and improves offenders' labor market outcomes. There is also some evidence of improvements in the short and intermediate run outcomes of the children of the offenders. The main channels through which EM operates seem to be by allowing offenders to maintain regular work and potentially also by reducing employer discrimination. Our calculations suggest that the social benefits of EM are at least six to nine times larger than the fiscal savings from reduced prison expenditure. This makes the welfare improvements from EM potentially much greater than what has been previously recognized.
    Keywords: Electronic monitoring, Incarceration, Labor supply, Crime, Spillovers
    Date: 2023–01
  27. By: Erik Hornung (University of Cologne); Julius Koschnick (London School of Economics); Francesco Cinnirella (University of Bergamo)
    Abstract: Sustained technological progress was at the heart of the Industrial Revolution. This column argues that access to knowledge was crucial for innovation and technological diffusion during this period. Inventors and entrepreneurs needed access to useful knowledge to generate new ideas and continue innovating. Such access was provided by the ‘economic societies’ – associations of individuals interested in improving the local economy. These societies became drivers of knowledge diffusion and innovation.
    Date: 2022–12
  28. By: Antman, Francisca M. (University of Colorado, Boulder); Duncan, Brian (University of Colorado Denver)
    Abstract: This paper links Native American racial self-identification with the rise in tribal gaming across the United States. We find that state policy changes allowing tribes to open casinos are associated with an increase in the probability that individuals with American Indian ancestors will self-identify as Native American and a decrease in the probability that individuals with no American Indian ancestry will self-identify as Native American. Moreover, we find that the magnitudes of the impacts are increasing in the strength of American Indian ancestral ties. Similar results hold when causal identification comes from American Indian casino openings across states over time and suggestive evidence shows stronger impacts if casinos are likely to pay per capita dividend payments to their members. These results are consistent with a conceptual framework in which we tie racial identification to economic motivations as well as social stigma associated with affiliating with a racial group for those without documented ancestral ties. Our results underscore the importance of economic incentives and social factors underlying the individual choice of racial identity.
    Keywords: race, Native American, identity, casinos
    JEL: J15 L83 Z13
    Date: 2023–01
  29. By: Christian Bartelheimer (Paderborn University); C. Ingo Berendes (Paderborn University); Philipp zur Heiden (Paderborn University); Daniel Beverungen (Paderborn University)
    Abstract: Digital platforms are intermediating entities that enable interactions between distinct but interdependent groups of actors in two- or multi-sided markets. Although platforms' management and economic effects have already been researched, the design knowledge on digital platforms as actor engagement ecosystems is scarce. We designed, implemented and evaluated DigiStreet—the first instantiation of a digital actor engagement platform for hybrid online-offline customer high street journeys that connects consumers with stores, service providers and restaurants and provides location-based advertising (LBA) via Bluetooth low-energy (BLE) beacons. Based on detailed field evidence from three interventions—including 150 SMEs and over 2, 300 citizens—we develop a nascent design theory for a new class of IT artefacts: digital actor engagement platforms for hybrid customer journeys in local high streets. Beyond the design knowledge, our study provides unique empirical insights into how digital actor engagement platforms impact actors in a high street and assesses the prospects and limitations of providing LBA via BLE beacons. Further research can build on our contributions to instantiate and improve the design of digital actor engagement platforms, to quantify and increase the efficacy of LBA on a population level and to explore the consequences of platform providers' actions for a platform's success.
    Keywords: digital platform; action design research; design theory; actor engagement; engagement platform; location-based advertising
    JEL: C71 D85 L22
    Date: 2022–06
  30. By: Bertoli, Simone (CERDI, Université Clermont Auvergne); Laouénan, Morgane (CNRS); Valette, Jérôme (CEPII, Paris)
    Abstract: We provide evidence that Hispanic citizens receive significantly longer sentences than non-Hispanic citizens in the Federal Criminal Justice System in the United States when a higher number of illegal aliens are apprehended along the southwest border. Apprehensions can increase the salience of Hispanic ethnic identity, which is associated with persistent negative stereotypes, and can also deteriorate attitudes toward Hispanics. We rule out concerns that apprehensions might be conveying legally relevant information to judges. Thus, we provide direct evidence for time-varying discrimination toward Hispanic defendants. Our estimated effect is only at play for defendants without a heavy previous criminal record.
    Keywords: immigration, ethnic identity, discrimination, attitudes, salience, sentences
    JEL: K42 J15 F22
    Date: 2023–01
  31. By: Aydede, Yigit; Dar, Atul A.
    Abstract: Most studies investigating the poor earnings performance of immigrants implicitly assume that human capital endowments determine actual earnings, and that immigrant-nativeborn wage gaps can be analyzed in terms of those earnings. In this study we claim that this assumption is not validated by evidence and that wage gaps should be analyzed by examining earning potentials rather than actual wages that are also influenced by market imperfections. We apply a two-tier stochastic wage frontier, which allows us to separate potential wage earnings from actual wage earnings and to identify how much of the observed wage gap between immigrant and native-born workers in Canada is attributable to departures from their potential wage earnings due to imperfect information on the demand and supply side of labour markets. Using the 2006 population census data, our results suggest that, although the ethnic background plays an important role in determining the observed wage, a significant part of the wage gap between immigrants and native-born workers is not driven by worker and employer imperfect information, but by differences in human capital endowments.
    Keywords: Imperfect information in labour markets, returns to education, occupational mismatch, stochastic frontier
    JEL: J6 J15 J61
    Date: 2022
  32. By: Áureo de Paula; Imran Rasul; Pedro CL Souza
    Abstract: Social interactions determine many economic behaviors, but information on social ties does not exist in most publicly available and widely used datasets. We present results on the identification of social networks from observational panel data that contains no information on social ties between agents. In the context of a canonical social interactions model, we provide sufficient conditions under which the social interactions matrix, endogenous and exogenous social effect parameters are all globally identified. While this result is relevant across different estimation strategies, we then describe how high-dimensional estimation techniques can be used to estimate the interactions model based on the Adaptive Elastic Net Generalized Method of Moments. We employ the method to study tax competition across US states. We find that the identified social interactions matrix implies tax competition differs markedly from the common assumption of competition between geographically neighbouring states, providing further insights for the long-standing debate on the relative roles of factor mobility and yardstick competition in driving tax setting behavior across states. Most broadly, our identification and application show that the analysis of social interactions can be extended to economic realms where no network data exists.
    Date: 2023–01–18
  33. By: Amaral, Sofia (University of Munich); Dahl, Gordon B. (University of California, San Diego); Endl-Geyer, Victoria (Ifo Institute for Economic Research); Hener, Timo (Aarhus University); Rainer, Helmut (University of Munich)
    Abstract: There is a vigorous debate on whether arrests for domestic violence (DV) will deter future abuse or create a retaliatory backlash. We study how arrests affect the dynamics of DV using administrative data for over 124, 000 DV emergency calls (999 calls) for West Midlands, the second most populous county in England. We take advantage of conditional random assignment of officers to a case by call handlers, combined with systematic differences across police officers in their propensity to arrest suspected batterers. We find that an arrest reduces future DV calls in the ensuing year by 51%. This reduction is not driven by reduced reporting due to fear of retaliation, but instead a decline in repeat victimization. We reach this conclusion based on a threshold reporting model and its testable implications regarding (i) the severity of repeat DV calls and (ii) victim versus third-party reporting. Exploring mechanisms, we find that arrest virtually eliminates the large spike in re-victimization which occurs in the 48 hours after a call, consistent with arrest facilitating a cooling off period during a volatile, at-risk time. In the longer run, we estimate a sizeable deterrence effect. Substantiating this, arrest increases the probability an offender is charged with a crime. Our findings argue against recent calls for a decriminalization of domestic violence and suggest the optimal police response is to lower the threshold for arrest.
    Keywords: domestic violence, arrest, deterrence, repeat victimization
    JEL: J12 J16 K42
    Date: 2023–01
  34. By: Berbée, Paul; Brücker, Herbert; Garloff, Alfred; Sommerfeld, Katrin
    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
  35. By: Matthieu Clement (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Lucie Piaser (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Deeply rooted in the social disorganization theory, this article aims at studying the causal impact of local inequality, a main community structural factor, on individuals' fear of crime. Combining multiple datasets and focusing on the Mexican case, this study has several goals. First, we construct an innovative index of fear of crime composed of three dimensions: emotion, cognition and behavior. Second, we build measures of income and education inequality representative at the municipal level. Lastly, we assess the causal effect of inequalities on fear of crime, controlling both for the hierarchical structure of the data and endogeneity bias relying on two-stage least squares (2SLS) multilevel models. Our results suggest a strong positive linear relationship between municipal income inequality and fear of crime. However, the observed effect is stronger for the emotive and behavioral dimensions. Concerning education inequality, we also find a positive impact on feeling of unsafety (emotive dimension), but of smaller magnitude, and on risk perception (cognitive dimension). While our results are robust to different robustness checks for income inequality, they are less stable for education inequality. © 2020 Elsevier Ltd
    Keywords: Crime, Education, Estimation Method, Income, Mexico [North America], Modeling
    Date: 2021–04
  36. By: Fletcher, Jason
    Abstract: This short report uses a representative school-based sample (Add Health) to characterize local measures of (classmates’) beliefs about traditional sex roles in examining short and long term outcomes for women and men through age 30. Regression analyses suggest several key findings. First, women who attended high school with “traditionalist” classmates have much worse labor market outcomes. Second, the penalty for women’s outcomes is higher if the “traditionalist” classmates are women (vs. men). Third, a large share (typically >50%) of the labor market impacts may be due to reductions in educational outcomes (test scores and completed schooling). Fourth, males also have some reductions in human capital and earnings whose high school classmates were “traditionalist”.
    Date: 2023–01–11
  37. By: Anderson, D. Mark (Montana State University); Liang, Yang (San Diego State University); Sabia, Joseph J. (San Diego State University)
    Abstract: Using data from the Fatality Analysis Reporting System for the period 1983-1997, Cohen and Einav (Review of Economics and Statistics 2003; 85(4): 828–843) found that mandatory seatbelt laws were associated with a 4 to 6 percent reduction in traffic fatalities among motor vehicle occupants. After successfully replicating their two-way fixed effects estimates, we (1) add 22 years of data (1998-2019) to capture additional seatbelt policy variation and observe a longer post-treatment period, (2) employ the interaction-weighted estimator proposed by Sun and Abraham (2021) to address potential bias due to heterogeneous and dynamic treatment effects, and (3) estimate event-study models to investigate pre-treatment trends and explore lagged post-treatment effects. Consistent with Cohen and Einav (2003), our updated estimates show that primary seatbelt laws are associated with a 5 to 9 percent reduction in fatalities among motor vehicle occupants. Estimated effects of secondary seatbelt laws are smaller in magnitude and sensitive to model choice.
    Keywords: mandatory seatbelt laws, traffic fatalities, traffic safety
    JEL: C13 I12 K32 K42
    Date: 2022–12
  38. By: Samira S. Abraham; Gianandrea Lanzara; Sara Lazzaroni; Paolo Masella; Mara P. Squicciarini
    Abstract: This paper studies how discriminatory fake news arises and spatially diffuses. We focus on India at the onset of the COVID-19 pandemic: on March 30, a Muslim convention (the Tablighi Jamaat) in New Delhi became publicly recognized as a COVID hotspot, and the next day, fake news on Muslims intentionally spreading the virus spiked. Using Twitter data, we build a comprehensive novel dataset of georeferenced tweets to identify anti-Muslim fake news. We find, in cross-sectional and difference-in-difference settings, that discriminatory fake news became much more widespread after March 30 (1) in New Delhi, (2) in districts closer to New Delhi, and (3) in districts with higher social media interactions with New Delhi. Further, we investigate whether deeply rooted historical factors may have also played a role in the diffusion of anti-Muslim fake news: we show that, after March 30, discriminatory fake news was more common in districts historically exposed to attacks by Muslim groups.
    JEL: J15 Z12
    Date: 2023–01
  39. By: Samuel Dodini; Michael F. Lovenheim; Kjell G. Salvanes; Alexander Willén
    Abstract: This paper extends the literature on monopsony and labor market concentration by taking a task-based approach and estimating the causal effect of concentration in the demand for skills on labor market outcomes. The prior literature has focused on industry and occupation concentration and likely overstates the degree of monopsony power, since worker skills are substitutable across different firms, occupations, and industries. Exploiting linked employer-employee data that cover the universe of Norwegian workers over time, we find that our job task-based measure shows lower degrees of concentration than the conventional industry-and occupation-based measures. We also find that the gender gap in concentration is substantially larger using this measure. Exploiting mass layoffs and establishment closures as exogenous shocks to local labor demand, we show that workers who experience a mass separation have substantially worse subsequent labor market outcomes when they are in more concentrated labor markets defined by skill clusters. Our results point to the existence of employer market power in the economy that is driven by the concentration of skill demand across firms.
    JEL: J23 J24 J42 J63
    Date: 2023–01
  40. By: Sanchez Alonso, Blanca; Santiago Caballero, Carlos
    Abstract: Recent studies showed that Spanish republican exiles who travelled to Mexico to escape the effects and aftermath of the Spanish civil war were positively selected. However, the potential existence of regional differences in this positive selection needs to be addressed appropriately. Using a new dataset directly extracted from primary sources, we compare the heights of the republican exiles in Mexico with the estimations of those who stayed behind in their provinces of origin. We also study the existence of potential determinants to explain these differences. In addition to estimating how intense the loss of human capital was at the regional level, we also compare the heights of the republican exiles in Mexico with the heights of the Mexican population. Our results show significant regional differences in the positive selection of republican exiles. This was probably the consequence of the opportunities the local populations had to escape after the war started. We also show that Mexico was a place where Spanish migrants were able to obtain better occupations than their counterparts in Spain, meaning that although Mexico benefited from the arrival of a highly skilled labour force, it also provided republican exiles new opportunities.
    Keywords: Heights; Exile; Gender; War
    JEL: D6 J24 N0 N33 O15
    Date: 2023–01–20
  41. By: Maurer, Stephan (University of Konstanz); Schwerdt, Guido (University of Konstanz); Wiederhold, Simon (Ifo Institute for Economic Research)
    Abstract: We study whether female students benefit from being taught by female professors, and whether such gender match effects differ by class size. We use administrative records of a German public university, covering all programs and courses between 2006 and 2018. We find that gender match effects on student performance are sizable in smaller classes, but do not exist in larger classes. This difference suggests that direct and frequent interactions between students and professors are important for the emergence of gender match effects. Instead, the mere fact that one's professor is female is not sufficient to increase performance of female students.
    Keywords: gender gap, role models, tertiary education, professors
    JEL: I21 I23 I24 J16
    Date: 2023–01
  42. By: Aksoy, Cevat Giray (European Bank for Reconstruction and Development); Barrero, Jose Maria (Instituto Tecnológico Autónomo de México Business School); Bloom, Nicholas (Stanford University); Davis, Steven J. (University of Chicago); Dolls, Mathias (Ifo Institute for Economic Research); Zarate, Pablo (Princeton University)
    Abstract: We quantify the commute time savings associated with work from home, drawing on data for 27 countries. The average daily time savings when working from home is 72 minutes in our sample. We estimate that work from home saved about two hours per week per worker in 2021 and 2022, and that it will save about one hour per week per worker after the pandemic ends. Workers allocate 40 percent of their time savings to their jobs and about 11 percent to caregiving activities. People living with children allocate more of their time savings to caregiving.
    Keywords: work from home, commute times, allocation of time savings, COVID-19
    Date: 2023–01
  43. By: Léa Marchal (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, IC Migrations - Institut Convergences Migrations [Aubervilliers], UP1 - Université Paris 1 Panthéon-Sorbonne); Guzman Ourens (Tilburg University [Tilburg] - Netspar); Giulia Sabbadini (Institut de hautes études internationales et du développement - Graduate Institute of International and Development Studies [Geneva, Switzerland])
    Abstract: We use French employer-employee data to reassess the wage gap between native and foreign workers. We find that the wage gap varies with the export intensity of the firm and the occupation of the worker. A model with heterogeneous firms and workers shows that our findings are consistent with white-collar immigrants capturing an informational rent. The evidence supports this mechanism. First, we show that the wage gap is positively correlated with the complexity of the firm export activity. Second, we show that wages react to changes in export intensity when the export destination coincides with the origin of foreign workers.
    Keywords: export, firm, immigrants, wage inequality
    Date: 2022–12–18
  44. By: Bertoni, Marco (University of Padova); Brunello, Giorgio (University of Padova); Cappellari, Lorenzo (Università Cattolica del Sacro Cuore); De Paola, Maria
    Abstract: We estimate the effect of winning a mayoral election on long-run licit earnings, which plays a key role in the selection of local political leaders. We use Italian administrative social security data from 1995 to 2017 and a sharp regression discontinuity design based on close elections. Over a 15-year horizon, the average present discounted value of winning an election is equal to 35, 000€, or 85 percent of the annual labor and social security earnings for the average candidate in our sample, a modest effect driven by the compensations for political service and concentrated during the first five years after the election. Net of compensations for service, this effect is negative during the first ten years after the election, and almost fades away afterwards. Differences in the political careers of winners and runners-up and a two-term limit rule on mayors' office contribute to explain our results.
    Keywords: returns to office, political selection, revolving door, rent-seeking, close elections
    JEL: D72 J44 J45
    Date: 2023–01
  45. By: Roodman, David
    Abstract: Duflo (2001) exploits a 1970s schooling expansion in Indonesia to estimate the returns to schooling. Under the study's difference-in-differences (DID) design, two patterns in the data-shallower pay scales for younger workers and negative selection in treatment-can violate the parallel trends assumption and upward-bias results. In response, I follow up later, test for trend breaks timed to the intervention, and perform changes-in-changes (CIC). I also correct data errors, cluster variance estimates, incorporate survey weights to correct for en-dogenous sampling, and test for (and detect) instrument weakness. Weak identification-robust inference yields imprecise, positive estimates. CIC estimates tilt slightly negative.
    Keywords: education, wages, reanalysis
    JEL: I2 J31 O15
    Date: 2023
  46. By: Robert S. Chirinko; Daniel J. Wilson
    Abstract: This paper reviews selected fiscal policy initiatives undertaken by US states to encourage job creation and innovation. We begin with a discussion of some general considerations about the design of tax policies summarized in a tax policy design table. Four policies are reviewed: job creation tax credits, research and development tax credits, a set of tax policies targeted to the biotechnology industry, and a broad set of tax policies that attract star scientists. The experiences at the state level are used to evaluate the effectiveness of these employment and knowledge-capital tax incentives in creating jobs and spurring innovation. The paper concludes with four other considerations need to be taken into account in selecting policies.
    Keywords: targeted state fiscal policies, employment tax incentives, job creation, knowledge-capital tax incentives, innovation
    JEL: H71 H25
    Date: 2022
  47. By: Nadir ALTINOK; Claude DIEBOLT
    Abstract: Analyzing education does not only involve years of schooling, quality matters! This paper aims at providing better data on schooling with a focus on learning outcomes. It provides the largest dataset on learning outcomes, years of schooling and learning-adjusted year of schooling (LAYS) with comparable data between 1970 and 2020. The quantity dimension is measured by years of schooling and uses the latest data from Barro and Lee (2013), while the quality dimension is taken from linking standardized, psychometrically-robust international achievement tests and hybrid tests. The data are available for more than 120 countries between 1970 and 2020. Several findings can be highlighted. A global convergence on both learning outcomes and enrollment has occurred since 1970, but a breakdown can be found after 1990. A very low number of countries perform better over time regarding the quality of schooling, while most countries have a stable level of learning outcomes.
    Keywords: Quality, Human Capital, Education, International, Achievement, Database, Cliometrics, PISA, TIMSS, SACMEQ, PASEC, LLECE, EGRA.
    JEL: C8 I2 J24 N3 O15
    Date: 2023
  48. By: Manara, Martina; Regan, Tanner
    Abstract: Information on willingness-to-pay is key for public pricing and allocation of services but not easily collected. Studying land titles in Dar-es-Salaam, we ask whether local leaders know and will reveal plot owners' willingness-to-pay. We randomly assign leaders to predict under different settings then elicit owners' actual willingness-to-pay. Demand is substantial, but below exorbitant fees. Leaders can predict the aggregate demand curve and distinguish variation across owners. Predictions worsen when used to target subsidies, but adding cash incentives mitigates this. Finally, we demonstrate that leader-elicited information can improve the public pricing of title deeds, raising uptake while maintaining public funds.
    Keywords: property rights; willingness-to-pay; public pricing; local publicly provided goods
    JEL: O17 H40 R21 D80
    Date: 2022–04–28
  49. By: Bastien Michel (Nantes Univ - Nantes Université); Samuel Kembou Nzale (UNIL - Université de Lausanne = University of Lausanne); Sonali Wayal (DMI - Development Media International); Joanna Murray (DMI - Development Media International)
    Abstract: We study an easily scalable intervention based on mobile videos promoting simple parental practices that foster early childhood stimulation (ECS). Videos were disseminated via memory cards with the help of volunteer local leaders and health workers. We implemented an RCT to measure the impact of the intervention. We show that it managed to reach a third of the target population and that video exposure improved caregivers' ECS-related knowledge and practices. In particular, it improved those of male caregivers and reduced the prevalence of violent discipline. More generally, our results highlight the public policy potential of mobile phone expansion in LMICs.
    Keywords: Mobile Phone Expansion, Early Childhood Stimulation, Violent Discipline, Videos
    Date: 2022–12–21
  50. By: Luisa Corrado (University of Rome Tor Vergata); Daniela Fantozzi (Italian National Institute of Statistics); Simona Giglioli (Bank of Italy)
    Abstract: We investigate the effects of different policies implemented during the pandemic on real-time spatial inequalities in the US. We use a novel database built using anonymized data from the private sector, which enables us to compute daily measures of spending inequality at county level. Using a narrative approach combined with high-frequency data to identify the shocks, we evaluate the impact of monetary policy in a VAR framework. The main findings show that consumption spending inequality rose during the pandemic and that the Fed's policies did not mitigate this increase. Indeed, although these measures had a positive effect on spending for both richer and poorer counties, consumption was stimulated more for the former than for the latter ones. We distinguish two kinds of interventions: those regarding the federal funds rate, Repo agreements and QE programmes ('purely monetary') and those concerning subsidized lending facilities to support credit and avoid mass layoffs ('quasi-fiscal'). Our evidence suggests a greater contribution in the short run by the latter type to stimulating the consumption spending of higher-income counties.
    Keywords: monetary policy, inequality, high-frequency data, Covid-19
    JEL: D31 E21 E52 E58
    Date: 2022–12
  51. By: Antonescu, Daniela
    Abstract: Digitalization is an essential element for the development of today’s society, in the context of actual geo-political challenges. Moreover, the COVID-19 pandemic has accelerated the process of digitalization, offering new perspectives on sustainable and inclusive development. From the point of view of the regional approach, digitalization can have an important impact on the level of territorial development and on the reduction of economic and social inequalities. This paper proposes to identify the relationship between a series of indicators specific to digitization and regional GDP, with the help of panel models. The objective of the research is to estimate the relationship between GDP and two indicators specific to digitalization: online commerce and broadband internet infrastructure, the level of the eight development regions in Romania. Dependency modelling, based on econometric equations, offers the possibility of highlighting the way in which the two indicators of the digital economy contribute to the growth of GDP per capita. This analysis aims to illustrate the fact that broadband technologies and the increase in the number of people using the Internet for commercial purposes can have a positive impact on the growth of the regional economy. The results of the analysis highlighted the direct relationship of the indicators between the three variables related to the digitalization process at the level of Romania’s regions and the strong influence of broadband internet and online trade on GDP per capita, proving that any growth among independent variables will lead to an increase amongst the dependent variables.
    Keywords: Digitalization, GDP, regional inequalities, Panel model, OLS model
    JEL: O18 O3 O32
    Date: 2022–11–03
  52. By: Relihan, Lindsay
    Abstract: Is online retail a complement or substitute to local offline economies? This paper provides the first evidence that consumers use time saved from online retail to increase their trips for time-intensive services like coffee shops. I use new, detailed data on the daily transactions of millions of anonymized customers. I then estimate a discrete choice model of consumer trip choice, which embeds time use mechanisms and accounts for correlations in trip utility shocks. I show that the model matches key features of observed behaviour that are missed by more standard models, such as the disproportionate increase in trips to nearby coffee shops when consumers switch to online groceries. Model counterfactuals are used to forecast changes in future trip demand and outline strategies, which offline retailers can use to compete against online retail. For consumers, I find that the welfare gains from online grocery platforms go disproportionately to high-income consumers.
    Keywords: online; retail; time use; tips
    JEL: D12 J20 L81 R12
    Date: 2022–03–03
  53. By: Detelina Tocheva (GSRL - Groupe Sociétés, Religions, Laïcités - EPHE - École pratique des hautes études - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique)
    Date: 2022
  54. By: Bulent Unel
    Abstract: This paper investigates effects of increased Chinese import competition (following a change in U.S. trade policy that eliminated uncertainties surrounding tariff rates on Chinese imports) on self-employment across U.S. local markets. Areas most exposed to the trade policy change experienced a more significant decline in self-employment, which, in turn, explains about an 11.5% reduction in total employment. Further, effects almost entirely come from non-manufacturing sectors and are larger on in- corporated self-employed business owners. Finally, the impact varies considerably across different groups characterized by gender, age, and education, and the results are robust to the choice of controls.
    Date: 2021–02
  55. By: Johnson, Nicholas; Fitch-Polse, Dillon; Handy, Susan
    Abstract: E-bike incentive programs are being utilized across the United States to encourage the adoption of active transportation. This study assesses the impacts of three e-bike rebate programs in Northern California using survey results gathered by each agency. Three research questions are answered through this study: “How has e-bike ownership impacted the mode choices, trip purpose, and travel frequency of our sample?”, “How much do e-bike rebate recipients reduce their mobile greenhouse gases (GHGs)?”, and “How did the design of each program impact who was able to participate and the program outcomes?”. To answer these, the research team merged and cleaned the survey data from the three programs, explored descriptive statistics, and undertook an estimation of GHG emissions reductions. This analysis highlighted changes in travel behavior, car travel replacement, the impact of program designs, and various equity impacts. E-bike recipients reported more regular bike use after getting their e-bike, although their frequency of bike travel began to decline in the long-term. Respondents also reported high rates of occasional car trip replacement (1-3 times per week and 1-3 times per month). The vast majority of e-bike use in the sample was for recreational travel. Although the GHG reductions analysis estimated a monthly diversion of 12-44 kilograms of CO2 per rebate participant. The authors conclude with an equity analysis that explores how program design influenced who participated in these rebate programs. This found that low-income requirements are successful at targeting those with the most need for financial assistance, though these requirements do not help meet other equity metrics by association. View the NCST Project Webpage
    Keywords: Social and Behavioral Sciences, Bicycling behavior, e-bike, rebate, VMT
    Date: 2023–01–01
  56. By: Julien Grenet (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); Hans Grönqvist (Uppsala University, IFAU - Institute for Evaluation of Labour Market and Education Policy); Daniel Jahnson (Uppsala University)
    Abstract: The Swedish banking crisis in the early 90s counts as one of the five most severe financial crises in history. We examine how firms more exposed to this event adjusted employment in the longrun and the mechanisms involved. Our analysis draws on matched employer-employee data containing the financial statements for a large sample of firms. Our difference-indifferences estimates show that firms with a greater pre-crisis debt burden experienced more difficulties in accessing external capital during the crisis compared to firms with lower baseline debts. This is consistent with the most exposed firms becoming financially constrained. More exposed firms exhibit stronger downward employment adjustments than less exposed firms, and the reductions are mainly concentrated among low-skilled workers. Employment in more exposed firms started to recover four years after the crisis and had fully recuperated about a decade later. These firms also temporarily saw a larger drop in both productivity and investment. We do not find a significant effect on the wage bill, and the estimates are precise enough to rule out even moderate effect sizes.
    Keywords: Financial Crisis, Matched Employer-Employee Data, Macroeconomic Shocks, Labor Demand
    Date: 2023–01
  57. By: Matthias Huegel (Friedrich Schiller University Jena, Department of Economics); Philip Doerr (Friedrich Schiller University Jena, Department of Economics); Martin Kalthaus (Friedrich Schiller University Jena, Department of Economics)
    Abstract: The transfer of knowledge and technology from academia to industry is usually understood as a process. While previous research focuses on phenomena along the process and its outcomes, the starting point of the process – the initiation of a transfer activity – remains unstudied. We provide first empirical insights on the initiation of the transfer process and conceptualize this initiation as a simultaneous recognition of a transfer opportunity and the choice of a transfer channel. We focus on Science-Industry collaboration, Intellectual Property Rights and spin-off creation as relevant channels. We use survey data from 1, 149 scientists from the German state of Thuringia and utilize seemingly unrelated regressions to account for selection and multiple channel choices in our econometric approach. Our results show a positive relationship between scientists’ probability to recognize a transfer opportunity and different kinds of prior knowledge. Contrary to our expectation, scientific quality reduces the likelihood of recognizing a transfer opportunity. For the choice of the transfer channel, the results show a positive relationship between choosing the spin-off channel and risk willingness, as well as basic research. Applied research increases the likelihood to choose Intellectual Property Rights as a channel. Furthermore, role models are positively associated with these two channels.
    Keywords: Transfer Process, Transfer Initiation, Opportunity Recognition, Transfer Channel, Science-Industry Collaboration, Intellectual Property Right, Academic Spin-off
    JEL: L26 O31 O33 O34
    Date: 2023–01–18
  58. By: Léa Marchal (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, IC Migrations - Institut Convergences Migrations [Aubervilliers], UP1 - Université Paris 1 Panthéon-Sorbonne); Giulia Sabbadini (DICE - Düsseldorf Institute for Competition Economics - Heinrich Heine Universität Düsseldorf = Heinrich Heine University [Düsseldorf])
    Abstract: This paper studies whether firms employing immigrant workers are more resilient to an increase in competition in their export markets. Exploiting the surge of Chinese imports following its accession to the World Trade Organization and using a sample of French manufacturing exporters from 2002 to 2015, we find that an increase in the growth rate of Chinese competition in a foreign market has a negative effect on both the two-year survival and growth rate of sales of French exporters on that foreign market. This negative effect on firm performance is mitigated by the employment of immigrant workers.
    Keywords: Firm Heterogeneity Immigrant workers Import competition Productivity JEL Codes: F14 F22 F16, Firm, Heterogeneity, Immigrant workers, Import competition, Productivity JEL Codes: F14 F22 F16
    Date: 2022–11–04
  59. By: Flavio Cunha; Qinyou Hu; Yiming Xia; Naibao Zhao
    Abstract: According to UNESCO, one-third of the world’s youths are victims of bullying, which deteriorates academic performance and mental health, and increases suicide ideation and the risk of committing suicide. This paper analyzes a four-month parent-directed intervention designed to foster empathy in middle schoolers in China. Our implementation and evaluation study enrolled 2, 246 seventh and eighth graders and their parents, whom we assigned, at the classroom level, to the control or intervention condition randomly. We measured, before and after the intervention, parental investments, children’s empathy, and self-reported bullying perpetration and victimization incidents. Our analyses show that the intervention increased investments and empathy and reduced bullying incidents. In addition, we measured costs and found that it costs $12.50 for our intervention to reduce one bullying incident. Our study offers a scalable and low-cost strategy that can inform public policy on bullying prevention in other similar settings.
    JEL: I10 I20 J24 O10
    Date: 2023–01
  60. By: Martin, Ralf; Verhoeven, Dennis
    Abstract: The UK government has committed to increase R&D support for clean technologies in an effort to meet its net-zero target by 2050. The opportunity cost of such programs crucially depends on the value of knowledge spillovers that accrue from clean relative to other (emerging) technologies. Using patent information to measure the value of direct and indirect knowledge spillovers, we derive estimates for the expected economic returns of subsidising a particular technology field. Our method allows comparing fields by the returns a hypothetical additional subsidy would have generated within the UK or globally. Clean technologies are top-ranked in terms of within-UK returns, with Tidal and Offshore Wind showing particularly high returns. In terms of global returns, emerging technologies such as Wireless, as well as Electrical Engineering outperform Clean by a small margin. We also find that cross-border knowledge spillovers are important for all technology fields, with global return rates over ten times larger than within-UK ones. In sum, our results suggest that the opportunity cost of R&D support programs for clean innovation in the UK is low at worst.
    Keywords: innovation; knowledge spillovers; clean technology; innovation policy; patent data
    JEL: R14 J01 J1
    Date: 2022–03–02
  61. By: Maria Koumenta; Mario Pagliero; Davud Rostam-Afschar
    Abstract: We study how licensing, certification and unionisation affect the wages of natives and migrants and their representation among licensed, certified, and unionized workers. We provide evidence of a dual role of labor market institutions, which both screen workers based on unobservable characteristics and also provide them with wage setting power. Labor market institutions confer significant wage premia to native workers (4, 1.6, and 2.7 log points for licensing, certification, and unionization respectively), due to screening and wage setting power. Wage premia are significantly larger for licensed and certified migrants (10.3 and 6.6 log points), reflecting a more intense screening of migrant than native workers. The representation of migrants among licensed (but not certified or unionized) workers is 15% lower than that of natives. This again implies a more intense screening of migrants by licensing institutions than by certification and unionization.
    Keywords: Occupational regulation, Licensing, Certification, Unionization, Migration, Wages
    Date: 2022
  62. By: Thomas Grebel; Mauro Napoletano (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Lionel Nesta (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)
    Abstract: We study the productivity level distributions of manufacturing firms in France and Germany, and how these distributions evolved across the Great Recession. We show the presence of a systematic productivity advantage of German firms over French ones in the decade 2003-2013, but the gap has narrowed down after the Great Recession. Convergence is explained by the better growth performance of French firms in the post-recession period, especially of those located in the top percentiles of the productivity distribution. We also highlight the role of sectoral growth, firm size and export intensity in explaining the above convergence. In contrast, the contribution of allocative efficiency was small.
    Keywords: international productivity gaps, productivity distributions, firm level comparisons
    Date: 2021–01–01
  63. By: Rajshri Jayaraman; Bisma Khan
    Abstract: We examine the effect of co-residence with fathers- and mothers-in-law on married women’s employment in India. Instrumental variable fixed effects estimates using two different household panel datasets indicate that co-residence with a father-in-law reduces married women’s employment by 11-13%, while co-residence with a mother-in-law has no effect. Difference-in-difference estimates show that married women’s employment increases following the death of a co-residing father-in-law, but not mother-in-law. We investigate three classes of explanations for this: income effects, increased domestic responsibilities, and social norms. Our evidence is consistent with gender- and generational norms intersecting to constrain married women’s employment when parents-in-law co-reside.
    Keywords: female employment, family structure, labour supply, parents-in-lawJ16, J22, J12, O12, Z13
    JEL: J16 J22 J12 O12 Z13
    Date: 2023–01–19

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