nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2023‒02‒27
sixty papers chosen by
Steve Ross
University of Connecticut

  1. Place-based Land Policy and Spatial Misallocation: Theory and Evidence from China By Min Fang; Libin Han; Zibin Huang; Ming Lu; Li Zhang
  2. Does School Choice Leave Behind Future Criminals? By Andrew Bibler; Stephen B. Billings; Stephen L. Ross
  3. Regional Capital No More. How the Reform of the Territorial Government has Marginalized Polish Middle-sized Cities By Borys Cie?lak; Paula Nagler; Frank van Oort
  4. Peer interactions, local markets, and wages: Evidence from Italy By Brunetti, Irene; Intraligi, Valerio; Ricci, Andrea; Vittori, Claudia
  5. Spatial Implications of Telecommuting in the United States By Parkhomenko, Andrii; Delventhal, Matthew J
  6. Transport policies in polycentric cities By Quentin Max David; Moez Kilani
  7. Metro infrastructure and metropolitan attractiveness By Pierre-Henri Bono; Quentin Max David; Rodolphe Desbordes; Loriane Py
  8. The Labor Market Effects of Restricting Refugees' Employment Opportunities By Ahrens, Achim; Beerli, Andreas; Hangartner, Dominik; Kurer, Selina; Siegenthaler, Michael
  9. The long-run effects of temporarily closing schools: Evidence from Virginia, 1870s-1910s By Winfree, Paul
  10. The Dynamics of Networks and Homophily By Matthew O. Jackson; Stephen M. Nei; Erik Snowberg; Leeat Yariv
  11. Seasonality of flights in China: Spatial heterogeneity and its determinants By Jiaoe Wang; Fan Xiao; Frédéric Dobruszkes; Wei Wang
  12. Geographic Mobility over the Life-Cycle By Diaz, Antonia; Jáñez, Álvaro; Wellschmied, Felix
  13. Structural Characteristics and Implications of Regional Innovation Networks By Kim, Jisoo
  14. The Effects of a Free Universal After-School Program on Child Academic Outcomes By Nina Drange; Astrid Marie Jorde Sandsør
  15. Geographic Mobility Over the Life-cycle By Antonia Díaz; Álvaro Jáñez; Felix Wellschmied
  16. Zombie Lending, Labor Hoarding, and Local Industry Growth By Kin Wai Cheung; Masami Imai
  17. Immigration, imports, and (im)mutable Japanese labor markets By Akira Sasahara; Yumin Sui; Emily Taguchi
  18. Impact of Rising Sea Levels in Japan: A Study into the Price Dynamics of Residential Real Estate By Yuen Leng, Chow
  19. The spillover effect of services offshoring on local labour markets By Magli, Martina
  20. Internal Migration and Energy Poverty By Leonard Le Roux; Johanna Choumert-Nkolo
  21. Persecution and Escape By Sascha O. Becker; Volker Lindenthal; Sharun Mukand; Fabian Waldinger
  22. Shared Mobility in Low- and High-Income Regions By Shaheen, Susan; Cohen, Adam; Broader, Jacquelyn
  23. The Social Construction of Ignorance: Experimental Evidence By Ivan Soraperra; Joël van der Weele; Marie Claire Villeval; Shaul Shalvi
  24. Exploring European Regional Trade By Santamaría, Marta; Ventura, Jaume; YeÅŸilbayraktar, UÄŸur
  25. Online Shopping Can Redistribute Local Tax Revenue from Urban to Rural America By David R. Agrawal; Iuliia Shybalkina
  26. The geography of structural transformation: effects on inequality and mobility By Takeda, Kohei
  27. Schools and the transmission of Sars-Cov-2: evidence from Italy By Salvatore Lattanzio
  28. Measuring peer effects in parental leaves: evidence from a reform. By Davide Dottori; Francesca Modena; Giulia Martina Tanzi
  29. Tools and Best Practices for Land Use Efficiency and Equity in Cities By Nguyen, Peter; Barajas, Jesus M
  30. China's Digital Twin City and its Implications By Park, Kayoung
  31. The Effects of Schooling on Cognitive Skills: Evidence from Education Expansions By Cappellari, Lorenzo; Checchi, Daniele; Ovidi, Marco
  32. Improving Transparency and Verifiability in School Admissions: Theory and Experiment By Rustamdjan Hakimov; Madhav Raghavan
  33. Border Apprehensions and Federal Sentencing of Hispanic Citizens in the United States By Simone Bertoli; Morgane Laouénan; Jérôme Valette
  34. Border Apprehensions and Federal Sentencing of Hispanic Citizens in the United States By Simone Bertoli; Morgane Laouénan; Jérôme Valette
  35. Failing to level up? Industrial policy and productivity in interwar Northern Ireland By Jordan, David
  36. Locust Infestations and Individual School Dropout: Evidence from Africa By Abigial O. Asare; Bernhard Christopher Dannemann; Erkan Goeren
  37. Does the culture of property normalise eviction and demolition? The case of Kampung Sungai Baru, Kuala Lumpur By Salleh, Alia
  38. The Impact of the COVID-19 Pandemic on Korea’s Regional Economies By Kang, Duyong; Min, Seong-hwan
  39. (In)convenient stores? What do policies pushing stores to town centres actually do? By Cheshire, Paul; Hilber, Christian A. L.; Montebruno Bondi, Piero; Sanchis-Guarner, Rosa
  40. Mineral resources and the salience of ethnic identities By Nicolas Berman; Mathieu Couttenier; Victoire Girard
  41. ‘Seeing’ the Future: Improving Macroeconomic Forecasts with Spatial Data Using Recurrent Convolutional Neural Networks By Jonathan Leslie
  42. Monetary Policy and Home Buying Inequality By Daniel R. Ringo
  43. The long-run earnings effects of winning a mayoral election By Marco Bertoni; Giorgio Brunello; Lorenzo Cappellari; Maria De Paola
  44. Common lands in India: Spatial distribution and overlay with socioeconomic and environmental indicators By ElDidi, Hagar; Khurana, Ritika; Zhang, Wei; Jadav, Maheshkumar Kalidas; Guha, Chiranjit; Priyadarshini, Pratiti; Guo, Zhe; Sandhu, Harpinder; Nagendra, Harini; Meinzen-Dick, Ruth Suseela
  45. Closing Peru's Ethnic Gaps Amidst Sustained Economic Growth By Mr. Gonzalo Salinas; Yuri Zamora; Carlos Chavez
  46. Public good or public bad? Indigenous institutions and the demand for public goods By Elizalde, Aldo; Hidalgo, Eduardo; Salgado, Nayeli
  47. Explaining the energy performance gap in buildings with a latent profile analysis By Dorothée Charlier
  48. Floods and firms: vulnerabilities and resilience to natural disasters in Europe By Fatica, Serena; Katay, Gabor; Rancan, Michela
  49. Preference reversals with social distances By Geoffrey Castillo
  50. The Leading Role of Bank Supply Shock By Bonilla-Mejía, Leonardo; Villamizar-Villegas, Mauricio; Ruiz-Sánchez, María Alejandra
  51. What Drive HSR' Prices and Frequencies? An Analysis of Intermodal Competition and Multiproduct Incumbent's Strategies in the French Market By Thierry Blayac; Patrice Bougette; Florent Laroche
  52. Nothing new in the East? New evidence on productivity effects of inventions in the GDR By Ann Hipp; Björn Jindra; Kehinde Medase
  53. Gender gap and spatial disparities in the evolution of literacy in Spain, 1860-1910 By Gutiérrez, José Manuel; Quiroga Valle, Gloria
  54. Does money strengthen our social ties? Longitudinal evidence of lottery winners By Costa-Font, Joan; Powdthavee, Nattavudh
  55. Firms and inequality when unemployment is high By Bassier, Ihsaan
  56. Prosecutors, judges and sentencing disparities: Evidence from traffic offenses in France By Alessandro Melcarne; Benjamin Monnery; François-Charles Wolff
  57. The Impact of the "Coding Girls" Program on High School Students' Educational Choices By Basiglio, Stefania; Del Boca, Daniela; Pronzato, Chiara D.
  58. Characteristics of Employment in the Manufacturing Industry and a Review of Job Creating Subsectors By Gil, Eunsun
  59. Towing Norms through the American Dream By Jelnov, Pavel
  60. Collective bargaining and spillovers in local labor markets By Bassier, Ihsaan

  1. By: Min Fang (Department of Economics, University of Florida); Libin Han (Dongbei University of Finance and Economics); Zibin Huang (Shanghai University of Finance and Economics); Ming Lu (Shanghai Jiaotong University); Li Zhang (Sun Yat-Sen University)
    Abstract: Place-based land policies may create spatial misallocation. We investigate a major policy in China that aims to reduce regional development gaps by distributing more urban construction land quotas to underdeveloped inland regions. We first show causal evidence that this policy decreased firm-level TFP in more developed eastern regions relative to inland regions. We then build a spatial equilibrium model with migration, land constraints, and agglomeration. The model reveals that this policy led to substantial losses in national TFP and output. It shrinks regional output gap but lowers incomes of workers from underdeveloped regions by hindering their migration to developed regions.
    JEL: O18 R58 E24 J61 R52
    Date: 2022–08
  2. By: Andrew Bibler (University of Nevada, Las Vegas); Stephen B. Billings (University of Colorado); Stephen L. Ross (University of Connecticut)
    Abstract: School choice lotteries are an important tool for allocating access to high-quality and oversubscribed public schools. While prior evidence suggests that winning a school lottery decreases adult criminality, there is little evidence for how school choice lotteries impact non-lottery students who are left behind at their neighborhood school. We leverage variation in actual lottery winners conditional on expected lottery winners to link the displacement of middle school peers to adult criminal outcomes. We find that non-applicant boys are more likely to be arrested as adults when applicants from their neighborhood win the school choice lottery. These effects are concentrated among boys who are at low risk of being arrested based on observables. Finally, we confirm evidence in the literature that students who win the lottery decrease adult criminality but show that after accounting for the negative impact on the students who forego the lottery, lotteries increase overall arrests and days incarcerated for young men.
    Keywords: School Choice Lotteries, Students Left Behind, Arrest, Crime, Middle School, Neighborhood Effects, Peers
    JEL: I24 I28 K42 R23
    Date: 2023–01
  3. By: Borys Cie?lak (Gran Sasso Science Institute); Paula Nagler (Erasmus University Rotterdam); Frank van Oort (Erasmus University Rotterdam)
    Abstract: Among Polish cities facing socio-economic difficulties are the former regional capitals which lost their administrative status due to the 1998 reform, reducing the number of regions from 49 to 16. Making use of this quasiexperimental setting, we assess the impact of the loss of administrative status on the affected cities with difference-in-differences models. Our findings show a significant negative impact on economic and, partly, on other dimensions of development. Restructuring and scaling of devolved regions resulted in ‘leaving places behind’. The problematic socioeconomic trajectories of Poland’s former regional capitals caused or accentuated by the reform suggest a sustained marginalization.
    Keywords: Socioeconomic development, marginalization, decentralization, regional capital status
    JEL: R11 R15 R58
    Date: 2023–01–20
  4. By: Brunetti, Irene; Intraligi, Valerio; Ricci, Andrea; Vittori, Claudia
    Abstract: This paper investigates the relationship between the spatial distribution of occupations with a high content of peer interactions and wages among Italian provinces. At this aim, we use a unique employer-employee dataset obtained by merging administrative data on wages and labor market histories of individuals, with survey data on job tasks and contents. The spatial distribution of jobs intensive in peer-interactions is further measured according to the occupational structure of Italian provinces. The econometric analysis shows that the concentration of peer interactions leads to higher wages at the province level. These results are robust to firms and workers' heterogeneity and endogeneity issues.
    Keywords: Peer interactions, Wages, Agglomeration externalities
    JEL: J31 R12 R23
    Date: 2023
  5. By: Parkhomenko, Andrii; Delventhal, Matthew J
    Abstract: Telecommuting came roaring to the forefront of the American workplace in the spring of 2020. While no more than 8% of work was done remotely in 2019, shutdowns and social-distancing policies introduced at the onset of the Covid-19 pandemic pushed more than 1 out of every 3 American workers to telecommute. To reflect this shift, the research team aimed to update the spatial modeling toolbox to allow remote employment and develop a quantitative framework capable of analyzing the full range of reallocations, both within and across cities, which may result from its increasing popularity. The researchers build a quantitative spatial model in which some workers can substitute on-site effort with work done from home. The team quantifies their framework to match the distribution of jobs and residents across 4, 502 U.S. locations. A permanent increase in the attractiveness of telework results in a rich non-monotonic pattern of reallocations within and across cities. Workers who can telecommute experience welfare gains, and those who cannot suffer losses. Additionally, broader access to jobs reduces inequality across residential locations. The framework robustly predicts changes in residents and housing prices observed 2019—2021. View the NCST Project Webpage
    Keywords: Engineering, Urban, work from home, commuting, spatial equilibrium
    Date: 2023–02–01
  6. By: Quentin Max David; Moez Kilani
    Date: 2022–12–01
  7. By: Pierre-Henri Bono; Quentin Max David; Rodolphe Desbordes; Loriane Py
    Date: 2022–03–01
  8. By: Ahrens, Achim (Economic and Social Research Institute, Dublin); Beerli, Andreas (ETH Zurich); Hangartner, Dominik (Stanford University); Kurer, Selina (ETH Zurich); Siegenthaler, Michael (ETH Zurich)
    Abstract: Refugees, and immigrants more generally, often do not have access to all jobs in the labor market. We argue that restrictions on employment opportunities help explain why immigrants have lower employment and wages than native citizens. To test this hypothesis, we leverage refugees' exogenous geographic assignment in Switzerland, within-canton variation in labor market restrictions, and linked register data 1999–2016. We document large negative employment and earnings effects of banning refugees from working in the first months after arrival, from working in certain sectors and regions, and from prioritizing residents over refugees. Consistent with an effect of outside options on wages, removing 10% of jobs reduces refugees' hourly wages by 2.8% and increases the wage gap to similar host-country citizens in similar jobs by 2.2%. Furthermore, we show that restrictions reduce refugees' earnings even after they cease applying. Restrictions do not spur refugee emigration nor improve earnings of non-refugee immigrants.
    Keywords: labor market integration, migration, labor market policies, labor market institutions, monopsony, refugees, employment, wages, outside options, employment opportunities
    JEL: J08 J31 J42 J61 J68
    Date: 2023–01
  9. By: Winfree, Paul
    Abstract: New hand-collected school administrative data from 1870s Virginia, alongside linked individual US Censusrecords, reveals that temporary school closures had lasting effects on literacy and income in adulthood. Those affected by the closures had lower intergenerational economic mobility, particularly those from low-income backgrounds. The age at which the closures occurred also played a role with younger cohorts more affected by early developmental disruptions and older cohorts more affected by prolonged closures.
    Keywords: returns to education, school closures, literacy, economic mobility, wage inequality
    JEL: H75 I21 I24 J62 N31 N91
    Date: 2023
  10. By: Matthew O. Jackson; Stephen M. Nei; Erik Snowberg; Leeat Yariv
    Abstract: We examine friendships and study partnerships among university students over several years. At the aggregate level, connections increase over time, but homophily on gender and ethnicity is relatively constant across time, university residences, and different network layers. At the individual level, homophilous tendencies are persistent across time and network layers. Furthermore, we see assortativity in homophilous tendencies. There is weaker, albeit significant, homophily over malleable characteristics−risk preferences, altruism, study habits, and so on. We find little evidence of assimilation over those characteristics. We also document the nuanced impact of network connections on changes in Grade Point Average.
    Keywords: homophily, social networks, dynamic networks, undergraduate education, peer effects
    JEL: D85 I21 J15 J16 Z13
    Date: 2023
  11. By: Jiaoe Wang; Fan Xiao; Frédéric Dobruszkes; Wei Wang
    Abstract: Seasonality is an essential issue for service industries but lacks the attention of most transport scholars. To close this gap, this study explored the spatial heterogeneity and determinants of flight seasonality from a supply-side perspective, using the monthly flights of 222 airports in China during 2018 as a sample. The following conclusions were drawn. First, domestic flights in China face seasonality due to the country's vast territory and diverse natural environment. Second, from an airport perspective, seasonality is high in small airports serving remote places and in cities that are tourism destinations. Third, from a route perspective, feeder routes in the air transport network of China face higher seasonality when compared to trunk routes. Finally, airport size and a mix of natural landscape factors shape domestic flight seasonality at the national level. At the local level, most factors (e.g. airport size and temperature) are more evident in the northwest region.
    Keywords: Air transport; Seasonality; Flight; Airport; Associating factors
    Date: 2023–01–01
  12. By: Diaz, Antonia; Jáñez, Álvaro (Universidad Carlos III de Madrid); Wellschmied, Felix (Universidad Carlos III de Madrid)
    Abstract: When mobility between locations is frictional, a person's economic well-being is partially determined by her place of birth. Using a life cycle model of mobility, we find that search frictions are the main impairment to the mobility of young people in Spain, and these frictions are particularly strong in economically distressed locations. As a result, being born in a high-unemployment urban area carries with it a large welfare penalty. Less stable jobs, slower skill accumulation, lower average wages, and fewer possibilities for geographic mobility all contribute to these welfare losses. Paying transfers to people in distressed economic locations decreases these welfare losses without large adverse effects on mobility. In contrast, several policies that encourage people to move to low-unemployment urban areas increase these welfare losses and fail to meaningfully increase mobility towards these more successful locations.
    Keywords: mobility, local labor markets, search frictions, life cycle, dynamic spatial models
    JEL: E20 E24 E60 J21 J61 J63 J64 J68 R23 R31
    Date: 2023–01
  13. By: Kim, Jisoo (Korea Institute for Industrial Economics and Trade)
    Abstract: Since the importance of innovation as a means of industrial development and economic growth has been emphasized, the region has played a key role as an appropriate spatial unit of innovation policy and a spatial scope in which connections and exchanges between innovators are more active. However, the rapidly changing industrial environment requires to redefine the direction of regional innovation policies and rethink their design. The main purpose of this study is to derive implications for promoting interaction between innovators and suggest policy directions. For this, we identify innovation networks in each region, analyze the status and characteristics of interactions in the networks, and diagnose the structure of relationships among innovation actors.
    Keywords: innovation; regional innovation; regional networks; innovation policy; Korea; COVID-19
    JEL: O38 R58
    Date: 2021–08–01
  14. By: Nina Drange; Astrid Marie Jorde Sandsør
    Abstract: Studies have shown that a lack of adult supervision of school-aged children is associated with antisocial behavior and poor school performance. To mitigate this, one policy response is to provide structured, adult-supervised programs offered after school throughout the academic year. After-school programs in Norway are an integrated part of school, used to extend the school day to a full working day by providing care before and after school. Participation is voluntary and is subject to fees paid by parents. In the past decade, the quality and content of these programs and the role they can play in integrating children have been under scrutiny. In 2016/17, the city of Oslo gradually introduced and expanded an offer of free part time participation in its after-school program, starting with city districts with a high share of children with an immigrant background. We utilize the staggered roll out of this free after-school program to investigate enrollment, learning outcomes and student wellbeing. The take-up was substantial, raising enrollment rates rates from about 70 to 95% in the first wave of affected schools. However, our difference-in-differences estimates show little overall effect of the program on academic performance, neither on average nor across subgroups. There is also little evidence that the program enhanced student well-being or decreased bullying and we find no evidence of increased maternal labor supply.
    Keywords: after-school program, after-school care, difference-in-differences
    JEL: I21 I24 J13
    Date: 2023
  15. By: Antonia Díaz (Instituto Complutense de Análisis Económico (ICAE), Universidad Complutense de Madrid (Spain).); Álvaro Jáñez (Universidad Carlos III de Madrid (Spain).); Felix Wellschmied (Universidad Carlos III de Madrid (Spain).)
    Abstract: When mobility between locations is frictional, a person’s economic well-being is partially determined by her place of birth. Using a life cycle model of mobility, we find that search frictions are the main impairment to the mobility of young people in Spain, and these frictions are particularly strong in economically distressed locations. As a result, being born in a highunemployment urban area carries with it a large welfare penalty. Less stable jobs, slower skill accumulation, lower average wages, and fewer possibilities for geographic mobility all contribute to these welfare losses. Paying transfers to people in distressed economic locations decreases these welfare losses without large adverse effects on mobility. In contrast, several policies that encourage people to move to low-unemployment urban areas increase these welfare losses and fail to meaningfully increase mobility towards these more successful locations.
    Keywords: Mobility; Local labor markets; Search frictions; Life cycle; Dynamic spatial models.
    JEL: E20 E24 E60 J21 J61 J63 J64 J68 R23 R31
    Date: 2023
  16. By: Kin Wai Cheung (Department of Economics, University of California, Davis); Masami Imai (Department of Economics, Wesleyan University)
    Abstract: After the bursting of real estate bubbles in 1991, Japanese banks continued lending to the construction and real estate sectors to conceal problem loans. We revisit Japan’s experience and propose a new mechanism via which banks’ loan-evergreening policy for these troubled sectors undermines allocative efficiency. Namely, banks’ support for the construction and real estate sectors encourages labor hoarding in unviable construction projects. Since construction projects predominantly use low-skilled workers, banks’ loan-evergreening policy may depress other low-skilled industries. Based on the industry-level data in each of Japan’s 47 prefectures from 1992-1996, we document empirical facts consistent with this hypothesis. On average, lowskilled industries experienced disproportionately slower output and employment growth and more sluggish growth in the number of new establishments in prefectures where the share of bank loans to local construction/real estate sectors increased more after construction boom ended.
    Date: 2023–01
  17. By: Akira Sasahara (Faculty of Economics, Keio University); Yumin Sui (Faculty of Economics, Keio University (Student)); Emily Taguchi (Department of Economics, University of Cologne (Student))
    Abstract: This paper investigates the effects of globalization?measured by an increase in immigration and in imports from China?on labor market outcomes in Japan. We attempt to identify the causal links using a shift-share instrument based on previous settlement patterns of migrants for immigration shocks, and the one based on previous spatial allocation of sectoral employment for import shocks. The results suggest limited impact of these variables on wages, however, significant effects are found in the late 1990s, suggesting their interactions with Japan fs Lost Decade.
    Keywords: immigration, China trade shock, wages, Japan
    JEL: F16 F22 F66
    Date: 2023–02–06
  18. By: Yuen Leng, Chow (IUJ Research Institutey, International University of Japan)
    Abstract: This paper provides an exploratory look at whether climate risk was incorporated in land prices. The data sample explored land transactions located in seven wards in Tokyo. The initial results indicate that land unit price was lower by 7% for land parcels located near live water bodies. Variables like area characteristics and land use zoning were statistically significant in explaining for the variation in land unit prices, lending support to the hypothesis that more informed buyers priced in climate risk in the land prices.
    Date: 2023–01
  19. By: Magli, Martina
    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: F10 F16 J20
    Date: 2022–12–09
  20. By: Leonard Le Roux (Sciences Po Department of Economics); Johanna Choumert-Nkolo (EDI Global)
    Abstract: This paper presents a first analysis of the relationship between rural-urban migration and energy poverty in South Africa, and to the authors' knowledge in Africa, using a nationally representative panel dataset. Using a dynamic difference in differences approach, energy poverty changes for both migrants and non-migrants are tracked over a ten-year period from 2008 to 2017. On average, moving to urban areas results in reductions in energy poverty for migrants themselves, with especially dramatic reductions in the use of traditional cooking fuels. Roughly one in five new urban arrivals move into informal shack dwellings where initial gains in energy access are negligible, but even for these migrants, the gains from migration grow over time. Effects on households, differences between male and female migrants, and other amenitities are also explored.
    Keywords: Energy Poverty, Migration, Urbanization, Panel data
    JEL: Q41 N50 D10 O15
    Date: 2023–02
  21. By: Sascha O. Becker (Monash University and University of Warwick); Volker Lindenthal (LMU Munich); Sharun Mukand (University of Warwick); Fabian Waldinger (LMU Munich)
    Abstract: We study the role of professional networks in facilitating emigration of Jewish academics dismissed from their positions by the Nazi government. We use individual-level exogenous variation in the timing of dismissals to estimate causal effects. Academics with more ties to early émigrés (emigrated 1933-1934) were more likely to emigrate. Early émigrés functioned as "bridging nodes" that facilitated emigration to their own destination. We also provide evidence of decay in social ties over time and show that professional networks transmit information that is not publicly observable. Finally, we study the relative importance of three types (family, community, professional) of social networks.
    Keywords: professional networks; high-skilled emigration; Nazi Germany; Jewish academics; universities;
    JEL: I20 I23 I28 J15 J24 N30 N34 N40 N44
    Date: 2023–01–23
  22. By: Shaheen, Susan; Cohen, Adam; Broader, Jacquelyn
    Keywords: Social and Behavioral Sciences
    Date: 2023–01–01
  23. By: Ivan Soraperra; Joël van der Weele; Marie Claire Villeval (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); Shaul Shalvi
    Abstract: We experimentally study the social transmission of "inconvenient" information about the externalities generated by one's own decision. In the laboratory, we pair uninformed decision makers with informed senders. Compared to a setting where subjects can choose their information directly, we find that social interactions increase selfish decisions. On the supply side, senders suppress almost 30 percent of "inconvenient" information, driven by their own preferences for information and their beliefs about the decision maker's preferences. On the demand side, about one-third of decision makers avoids senders who transmit inconvenient information ("shooting the messenger"), which leads to assortative matching between information-suppressing senders and information-avoiding decision makers. Having more control over information generates opposing effects on behavior: selfish decision makers remain ignorant more often and donate less, while altruistic decision makers seek out informative senders and give more. We discuss applications to information sharing in social networks and to organizational design.
    Keywords: Social interactions, Information avoidance, Assortative matching, Ethical behavior, Experiment
    Date: 2022
  24. By: Santamaría, Marta (University of Warwick); Ventura, Jaume (CREI, Universitat Pompeu Fabra and Barcelona School of Economics); YeÅŸilbayraktar, UÄŸur (Universitat Pompeu Fabra and Barcelona School of Economics)
    Abstract: We use the new dataset of trade flows across 269 European regions in 24 countries constructed in Santamaría et al. (2020) to systematically explore for the first time trade patterns within and across country borders. We focus on the differences between home trade, country trade and foreign trade. We document the following facts: (i) European regional trade has a strong home and country bias, (ii) geographic distance and national borders are important determinants of regional trade, but cannot explain the strong regional home bias and (iii) the home bias is heterogeneous across regions and seems to be driven by political regional borders.
    Keywords: JEL Codes:
    Date: 2022
  25. By: David R. Agrawal; Iuliia Shybalkina
    Abstract: What is the effect of e-commerce on the geographic distribution of local sales tax revenues? Using COVID-19 as a shock to online shopping and hand-collected high-frequency data on local sales tax revenue, we document an important shift in the state and local public finance landscape. As e-commerce increases, a destination basis for remote sales taxes results in higher growth in local sales tax collections in smaller, generally more rural jurisdictions. This increase comes at the expense of larger urban retail centers, which previously enjoyed an origin basis for sales tax collections. As households replace in-person commerce with online shopping, sales taxes no longer accrue to urban centers with large concentrations of retail establishments and instead expand the tax base of smaller jurisdictions. State-level reforms that enforce sales compliance generally mitigate the revenue falls in larger jurisdictions and amplify the increases in smaller jurisdictions.
    Keywords: sales tax, online shopping, e-commerce, COVID-19, tax revenue
    JEL: H25 H71 L81 R51
    Date: 2023
  26. By: Takeda, Kohei
    Abstract: The interplay between structural transformation in the aggregate and local economies is key to understanding spatial inequality and worker mobility. This paper develops a dynamic overlapping generations model of economic geography where historical exposure to different industries creates persistence in occupational structure, and non-homothetic preferences and differential productivity growth lead to different rates of structural transformation. Despite the heterogeneity across locations, sectors, and time, the model remains tractable and is calibrated with the U.S. economy from 1980 to 2010. The calibration allows us to back out measures of upward mobility and inequality, thereby providing theoretical underpinnings to the Gatsby Curve. The counterfactual analysis shows that structural transformation has substantial effects on mobility: if there were no productivity growth in the manufacturing sector, income mobility would be about 6 percent higher, and if amenities were equalized across locations, it would rise by around 10 percent. In these effects, we find that different degrees of historical exposure to industries in local economies play an important role.
    Keywords: structural transformation; upward mobility; labor mobility; economic geography
    JEL: O14 J62 R11 R13
    Date: 2022–12–12
  27. By: Salvatore Lattanzio (Bank of Italy)
    Abstract: This paper studies the effect on the spread of Sars-Cov-2 in Italy of schools’ re-openings and closures. Exploiting different re-opening dates across regions after the summer break of 2020, I show that early-opening regions experienced more cases in the 40 days following school re-openings compared with late-opening ones. However, there is great uncertainty around the estimates, and this suggests a wide dispersion in the effects of school re-openings on Sars-Cov-2 transmission. I also study the effect of school closures in Campania, one of the biggest regions in Southern Italy. Using a synthetic control approach, I show that school closures are associated with lower numbers of cases relative to the counterfactual group, particularly in younger age groups. In contrast, I find no significant effects on older age groups, which are more likely to require hospitalization. Finally, by exploiting survey data, I provide descriptive evidence on the increased incidence rate among teachers and students relative to the general population, following school re-openings.
    Keywords: Covid-19, schools, education, Italy
    JEL: I1 I12 I24
    Date: 2023–02
  28. By: Davide Dottori (Bank of Italy); Francesca Modena (Bank of Italy); Giulia Martina Tanzi (Bank of Italy)
    Abstract: In this paper we estimate peer effects in parental leaves (PLs), analyzing whether mothers' choices may be influenced by prior decisions made by their female colleagues. We identify peer effects through an exogenous variation in the probability that peers take a PL driven by a reform implemented in Italy in 2015 which extended the time period over which parents can receive a paid PL, providing greater flexibility in its use. We focus on post-reform mothers and exploit the heterogeneity in the share of their peers who, due to their children's age, have been affected by the reform. Our findings show the existence of important peer effects: a 10 percentage point increase in the share of peers that took a PL in response to the reform results in mothers being 2.4 percentage points more likely to take a PL. We also find a positive effect on the amount of PLs taken and a negative effect on the probability of working part-time. As suggested by the heterogeneity analysis, signalling about employers' reaction to the use of PLs might be an important channel through which peer effects unfold.
    Keywords: Peer effects, parental leave, Italy
    JEL: C31 J13 J22 D04 K31
    Date: 2023–02
  29. By: Nguyen, Peter; Barajas, Jesus M
    Abstract: Lowering vehicle miles traveled (VMT) to meet greenhouse gas reduction targets through land use and transportation planning and investments is a primary goal of planning organizations in California. This report provides information about the landscape of methods and tools available to regional and local governments to evaluate the land use efficiency and equity within their jurisdictions. This study draws on an evaluation of web-based tools for analyzing VMT generation, gentrification, and equity, and a stakeholder workshop to identify promising practices and opportunities for improvement with respect to planning tools to support land use efficiency. Most of the 11 tools analyzed were easy to use, providing ease of navigation and interactive, intuitive interfaces. Some were static with minimal or no documentation to help understand how to use them. None of the tools reviewed addressed all three issues of VMT generation, gentrification, and equity that were the focus of the study. However, the three tools addressed VMT and equity together were intuitive to use and provided multiple indicators for which to visualize outcomes relevant to VMT and equity. Stakeholders from metropolitan planning organizations (MPOs), city governments, and county governments discussed and gaps of existing land use efficiency tools and the potential need for a new tool development or improvements to existing tools. Participants saw the value of existing quantitative mapping tools supporting their evaluations of proposed planning projects as well as helping to facilitate conversations among staff about the impacts and potential VMT or greenhouse gas emissions reductions. Key gaps included transferability of data and analyses across scales and limited data available for rural areas. Participants saw the need for a new tool that could integrate localized data with statewide data. The findings can inform interagency collaboration around equity analysis and tool development. View the NCST Project Webpage
    Keywords: Engineering, Social and Behavioral Sciences, Transportation equity, planning tools, land use, VMT, gentrification
    Date: 2023–02–01
  30. By: Park, Kayoung (Korea Institute for Industrial Economics and Trade)
    Abstract: The construction of new infrastructure by the Chinese government promotes the development of digital twin city. The digital twin city is an important component of the new infrastructure, and the construction of the new infrastructure accelerates the emergence of the digital twin city. New infrastructure is part of China’s new development strategy and is expected to help drive the new Chinese economy, especially in sectors like new consumption, new manufacturing and new services. Many local authorities have announced related policies, and some policies include provisions for digital twin city. Along with a set of policies, the technologies supporting digital twin city such as 5G, the Internet of Things (IoT), edge computing, cloud computing and AI are expected to mature. This paper explores the concept and current status of China’s digital twin city, which are rapidly developing in recent years, and describe the implications they carry.
    Keywords: China; digital twin; urban economics; urban infrastructure
    JEL: O21 O53 R11
    Date: 2021–06–01
  31. By: Cappellari, Lorenzo (Università Cattolica del Sacro Cuore); Checchi, Daniele (University of Milan); Ovidi, Marco (Catholic University Milan)
    Abstract: We quantify the causal effect of schooling on cognitive skills across 21 countries and the full distribution of working-age individuals. We exploit exogenous variation in educational attainment induced by a broad set of institutional reforms affecting different cohorts of individuals in different countries. We find a positive effect of an additional year of schooling on internationally-comparable numeracy and literacy scores. We show that the effect is substantially homogeneous by gender and socio-economic background and that it is larger for individuals completing a formal qualification rather than dropping out. Results suggest that early and late school years are the most decisive for cognitive skill development. Exploiting unique survey data on the use of skills, we find suggestive evidence that our result is mediated by access to high-skill jobs.
    Keywords: cognitive skills, educational policies, returns to schooling
    JEL: H52 I21 I28
    Date: 2023–01
  32. By: Rustamdjan Hakimov (WZB Berlin); Madhav Raghavan (University of Lausanne)
    Abstract: Students participating in centralized admissions procedures do not typically have access to the information used to determine their matched school, such as other students' preferences or school priorities. This can lead to doubts about whether their matched schools were computed correctly (the `Verifiability Problem') or, at a deeper level, whether the promised admissions procedure was even used (the `Transparency Problem'). In a general centralized admissions model that spans many popular applications, we show how these problems can be addressed by providing appropriate feedback to students, even without disclosing sensitive private information like other students' preferences or school priorities. In particular, we show that the Verifiability Problem can be solved by (1) publicly communicating the minimum scores required to be matched to a school (`cutoffs'); or (2) using `predictable' preference elicitation procedures that convey rich `experiential' information. In our main result, we show that the Transparency Problem can be solved by using cutoffs and predictable procedures together. We find strong support for these solutions in a laboratory experiment, and show how they can be simply implemented for popular school admissions applications involving top trading cycles, and deferred and immediate acceptance.
    Keywords: school choice; matching; transparency; cutoffs; dynamic mechanisms; experiment;
    JEL: C78 C73 D78 D82
    Date: 2023–01–27
  33. By: Simone Bertoli (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne, IRD - Institut de Recherche pour le Développement, IUF - Institut Universitaire de France - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche, IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics); Morgane Laouénan (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, CNRS - Centre National de la Recherche Scientifique, LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques (Sciences Po) - Sciences Po - Sciences Po); Jérôme Valette (CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, UP1 - Université Paris 1 Panthéon-Sorbonne, IC Migrations - Institut Convergences Migrations [Aubervilliers])
    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 timevarying 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
    Date: 2023–01–20
  34. By: Simone Bertoli (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne, IRD - Institut de Recherche pour le Développement, IUF - Institut Universitaire de France - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche, IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics); Morgane Laouénan (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, CNRS - Centre National de la Recherche Scientifique, LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques (Sciences Po) - Sciences Po - Sciences Po); Jérôme Valette (CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, UP1 - Université Paris 1 Panthéon-Sorbonne, IC Migrations - Institut Convergences Migrations [Aubervilliers])
    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 timevarying 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
    Date: 2023–01–20
  35. By: Jordan, David
    Abstract: Northern Ireland's productivity performance has persistently been the worst of any UK region. This is despite having the apparent benefit of subnational industrial policy since the 1920s. Can institutions - through the interaction between business and local policymakers - explain this longstanding productivity gap? Existing literature focuses on post-war policy in Northern Ireland, but neglects its interwar origins. Using new comparisons of regional and sectoral industrial productivity, and new archival evidence for Stormont's interwar industrial policy, demonstrates regional institutions created barriers to productivity growth, restricting the development of new industries in Northern Ireland. Further UK devolution will not automatically promote regional convergence: its success will depend upon the institutional incentives faced by subnational policymakers.
    Keywords: productivity, industrial policy, institutions, devolution, interwar manufacturing
    JEL: H20 N64 O43 R50
    Date: 2023
  36. By: Abigial O. Asare (University of Oldenburg, Department of Economics); Bernhard Christopher Dannemann (University of Oldenburg, Department of Economics); Erkan Goeren (University of Oldenburg, Department of Economics)
    Abstract: This paper examines the effect of desert locust infestations on school enrollment of children and young adults between 3 and 24 years of age. We combine individual and household survey data from the 2005-2019 Demographic and Health Surveys (DHS) Program with data on the spatial distribution of locust events in Africa. We show that months of exposure to locust infestations have a negative and statistically significant impact on individual schooling status. We find that individuals from farming households are affected more negatively by locust infestations than individuals from non-farming households. We also find that individuals from poorer farming households have a higher school dropout rate than individuals from wealthier farming households, highlighting the role of negative income shocks as a possible transmission mechanism for the effects of desert locust events. Our results also show that the estimated effect is amplified by the household’s head educational status. A series of additional robustness tests further corroborate our main findings. We provide a quantitative assessment of the impact of a permanent 1.5 C rise in global temperature on the frequency of locust events and possible implications for schooling outcomes over time. The results show that a 1.5 C rise in temperature will decrease accumulated years of schooling by about 1.2 years over a period of 10 years.
    Keywords: Desert Locust; Demographic and Health Surveys (DHS) Program; School Enrollment;Income Shocks; Current Schooling; Farmers; Africa
    Date: 2023–02
  37. By: Salleh, Alia
    Abstract: In Kuala Lumpur, the redevelopment of old housing is framed by the state as a ‘residential upgrading’ as it involves rehousing residents to newer apartment complexes. This paper intends to shine a critical relook at rehousing programs’ assumed virtue. To inquire about this, I use the debate around the ‘culture of property’ and its naturalising effect on processes of gentrification as posed by Ley & Teo (2014) in Hong Kong and transport it to a case study of an ongoing eviction in Kampung Sungai Baru, Kuala Lumpur. Guided by a phenomenological approach, I use interviews and focus group discussions to understand residents’ views. I also trace the institutional origin of the ‘culture of property’ through policy document analysis. I argue that the ‘culture of property’ as seen in Kuala Lumpur is shaped by a housing policy that takes a residual approach which then leads to increased financialisation and anxiety over inheritance. However, this does not stop residents from opposing the redevelopment of their kampung. Instead, their knowledge of property ownership, either as homeowners or individual investors, becomes a useful tool to fight against rogue redevelopment. I also find that the demand for compensation is less about seeking ‘residential upgrading’ for social mobility but a matter of reclaiming ‘sweat equity’ and demanding better treatment as a basic right. Finally, I suggest that ‘development’ holds a bigger virtue than property ownership and may motivate residents to support redevelopment programs that they deem beneficial to society.
    Keywords: culture of property; Asian gentrification; eviction and demolition; Kuala Lumpur
    JEL: Q15
    Date: 2023–01
  38. By: Kang, Duyong (Korea Institute for Industrial Economics and Trade); Min, Seong-hwan (Korea Institute for Industrial Economics and Trade)
    Abstract: This paper estimates the impact of the COVID-19 pandemic-induced recession on Korea's regional economies. It finds that the recession has hit the island province of Jeju and the cities of Incheon and Ulsan the hardest, in that order. For Jeju in particular, it was estimated that the province's real gross regional domestic product (GRDP) declined by 9% compared to the pre-pandemic trend, a figure 2.5 times greater than the estimated impact of the pandemic on nationwide GDP growth. The paper describes implications for policy carried by the analysis. It makes two key suggestions: the government could either work to strengthen support for the industries and subsectors in the deepest slumps, or provide direct support for economies in the hardest-hit regions.
    Keywords: COVID-19; recession; macroeconomics; disaster aid; crisis management; disaster response; Korea; Jeju; regional economics; subsidies; support; bailouts; government support; corporate welfare
    JEL: E32 H12 H25 H32 H71 H84 R10 R11 R50 R58
    Date: 2021–06–29
  39. By: Cheshire, Paul; Hilber, Christian A. L.; Montebruno Bondi, Piero; Sanchis-Guarner, Rosa
    Abstract: England´s Town Centre First Policy, introduced in 1996, restricted the opening of new retail and other ‘traditional town centre activities’ to ‘Town Centre’ (TC) locations. The aim was to halt the decay of high streets. We explore the impact of the policy on the supply and location of grocery shops and patterns of shopping by comparing English with Scottish TCs before and after the policy change in England. Using store level census data, we show first that supply trends for grocery stores in TCs were similar in both countries prior to the implementation of the policy. After the policy took effect, however, stores in TCs increased relatively more strongly in England, but with no change in grocery employment. Second, using survey data, we show that the policy changed the composition of shops in TCs in favour of convenience-type shops supplied by the “big four” grocery chains. However, although it increased the number of TC shops, the policy had no effect on the number of shoppers choosing TC locations.
    Keywords: land use planning; retail location; shopping destinations; town centre; decay of high street
    JEL: L81 R14 R33 R38
    Date: 2022–12–12
  40. By: Nicolas Berman (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, CEPR - Center for Economic Policy Research - CEPR); Mathieu Couttenier (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, CEPR - Center for Economic Policy Research - CEPR); Victoire Girard (NOVA SBE - NOVA - School of Business and Economics - NOVA - Universidade Nova de Lisboa = NOVA University Lisbon)
    Abstract: This paper shows how ethnic identities may become more salient due to natural resources extraction. We combine individual data on the strength of ethnic-relative to national-identities with geo-localized information on the contours of ethnic homelands and on the timing and location of mineral resources exploitation in 25 African countries, from 2005 to 2015. Our strategy takes advantage of several dimensions of exposure to resources exploitation: time, spatial proximity, and ethnic proximity. We find that the strength of an ethnic group identity increases when mineral resource exploitation in that group's historical homeland intensifies. We argue that this result is at least partly rooted in feelings of relative deprivation associated with the exploitation of the resources. We show that such exploitation has limited positive economic spillovers, especially for members of the indigenous ethnic group; and that the link between mineral resources and the salience of ethnic identities is reinforced among members of powerless ethnic groups, and groups with strong baseline identity feelings or living in poorer areas, or areas with a history of conflict. Put together, these finding suggest a new dimension of the natural resource curse: the fragmentation of identities, between ethnic groups and nations.
    Keywords: identity, ethnicity, natural resources
    Date: 2022–07–14
  41. By: Jonathan Leslie (Indiana University, Department of Economics)
    Abstract: I evaluate whether incorporating sub-national trends improves macroeconomic forecasting accuracy in a deep machine learning framework. Specifically, I adopt a computer vision setting by transforming U.S. economic data into a ‘video’ series of geographic ‘images’ and utilizing a recurrent convolutional neural network to extract spatio-temporal features. This spatial forecasting model outperforms equivalent methods based on country-level data and achieves a 0.14 percentage point average error when forecasting out-of-sample monthly percentage changes in real GDP over a twelve-month horizon. The estimated model focuses on Middle America in particular when making its predictions: providing insight into the benefit of employing spatial data.
    Keywords: Macroeconomic Forecasting, Machine Learning, Deep Learning, Computer Vision, Economic Geography
    Date: 2023–02
  42. By: Daniel R. Ringo
    Abstract: Does monetary policy influence who becomes a home owner? Home purchases by low- and moderate-income households may be particularly sensitive to mortgage interest rates, as these households’ budgets are tighter and they more frequently come up against binding payment-to-income ratio constraints in credit decisions. Exploiting the timing of high-frequency observations of mortgage applicants locking in their interest rates around monetary policy shocks, I find that a 1 percentage point policy-induced increase in mortgage rates lowers the presence of low-income households in the population of home buyers by 1 percentage point, and of low- and moderate-income households by 2 percentage points, immediately following the shock. Effects are substantially stronger among first-time home buyers, and persist for approximately one year.
    Keywords: Home ownership; Inequality; Monetary policy; Interest rates; Credit constraints
    JEL: G21 E43 E44 R21
    Date: 2023–01–20
  43. By: Marco Bertoni; Giorgio Brunello; Lorenzo Cappellari; Maria De Paola
    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: 2023–02
  44. By: ElDidi, Hagar; Khurana, Ritika; Zhang, Wei; Jadav, Maheshkumar Kalidas; Guha, Chiranjit; Priyadarshini, Pratiti; Guo, Zhe; Sandhu, Harpinder; Nagendra, Harini; Meinzen-Dick, Ruth Suseela
    Abstract: Common pool resources provide important socioeconomic and ecological benefits for local communities and beyond, with around 2.5-3 billion people depending on commons for their livelihoods and other needs globally. In India, common lands constitute around a quarter of the country’s landmass, help meet the subsistence and livelihood needs of at least 350 million people and are of social and cultural significance to rural communities, as well as providing ecosystem services that benefit wider society. Despite these vital contributions, India’s commons have been facing widespread degradation, and policymakers tend to perceive some commons as “wastelands†because their true extent and value is not known. This study contributes to improved understanding of the magnitude and vitality of commons for rural communities, focusing on land-based commons in India. We provide a national assessment of the spatial extent and usage of common lands across districts, using publicly available spatial datasets and 2011 Census of India data and Household Census data. We further examine the spatial overlap between common lands and officially recognized protected areas to shine light on the possible locations where sustainable management or restoration of commons can potentially add value to conservation, in addition to benefiting local communities. Our results show that common lands are spread out spatially across the country and are intertwined, with more than one type of commons often present within the same district. Further, communities, especially poor, marginalized and indigenous communities such as Scheduled Tribe rely on forest commons, barren lands, pastures and culturable wastelands for their livelihoods, including for extraction of non-timber forest products (NTFPs) for housing and cooking, grazing livestock, among others. Common lands and the communities that depend on them also often live in proximity to or are surrounded by officially recognized protected areas. Our study points to the need to drill down to more disaggregated level for commons mapping, which, in conjunction with information on the values of ecosystem services provide by commons, could inform land use policies and conservation and development planning.
    Keywords: INDIA; SOUTH ASIA; ASIA; common lands; communities; data; data analysis; degradation; ecosystem services; forests; land use; land-use planning; land conservation; livelihoods; pastures; policy innovation; protected areas; restoration; rural communities; tribal peoples
    Date: 2023
  45. By: Mr. Gonzalo Salinas; Yuri Zamora; Carlos Chavez
    Abstract: We analyze the recent evolution of ethnic economic inequality in Peru, a major source of social discontent in the country. Household survey data indicates that recent decades of high output growth also witnessed a substantial narrowing of socioeconomic gaps among ethnicities. Most notably, the Mestizo ethnic group surpassed the White group in income per capita, and Native American also experienced a relative improvement. Mincerian regression analysis suggests that the main contributors to these developments were rural-to-urban migration and increased education. Based on our statistical findings, we propose enhancing education and other public services, increasing government revenues, lowering informality, and promoting competition as the main public policies that could accelerate the ongoing narrowing of ethnic gaps.
    Keywords: Income Inequality; Informal Economy; Poverty; Welfare.; household survey data; labor income; Earnings function; gaps narrow; regression analysis; Income; Income distribution; Public employment; East Asia; Caribbean
    Date: 2022–09–09
  46. By: Elizalde, Aldo; Hidalgo, Eduardo; Salgado, Nayeli
    Abstract: This paper argues that the underprovision of public goods can be partly explained by lower demand from Indigenous groups with high preferences for Indigenous identity and a high capacity for coordination. Examining the post-Mexican Revolution period (1920s-1950s), when the state used the first road network for nation-building, our diff-in-diff analysis shows that pre-colonial political centralisation is associated with less road infrastructure. This is attributed to stronger capacity for collective action and stronger Indigenous identity preferences. Finally, we show that poor road infrastructure today is linked to lower economic performance.
    Keywords: Indigenous institutions, public good provision, collective action, Indigenous identity
    JEL: H41 H79 N7 O18
    Date: 2023
  47. By: Dorothée Charlier (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)
    Abstract: The aim of this research is to identify energy consumption profiles that explain the difference between actual and theoretical energy consumption (the energy performance gap) in the residential sector using latent profile analysis (LPA). The resulting profiles inform behavioral and socio-demographic differences in consumption patterns among households and help explain inconsistencies in prior research on the energy performance gap. This research demonstrates that under-consumption of energy compared with the theoretical measure is partially explained by behavior related to poverty and deprivation. To address this, preventive measures should be put in place that focus on renovation or social housing to enable the poorest households to heat their dwellings adequately. Particular attention could also be paid to households that consume the most to avoid bias in energy forecasting models.
    Keywords: Residential, Energy performance gap, Latent profile analysis, Deprivation, Poverty
    Date: 2021–09
  48. By: Fatica, Serena (European Commission); Katay, Gabor (European Commission); Rancan, Michela (Universita Politecnica delle Marche)
    Abstract: Combining a rich database on natural hazards, granular flood risk maps and detailed information on firm geolocalisation, we study the dynamic impacts of floods on European manufacturing firms during the period 2007-2018. We find that water damages significantly and persistently worsen firm performance, and may endanger their survival. An average flood deteriorates total assets by about 2% in the year after the event, and up to 5% seven years out. The drop in sales and employment is comparable. We show how reallocation of economic activity within flooded regions can reconcile our results with the 'creative destruction' hypothesis proposed by the natural disaster literature.
    Keywords: natural disasters, floods, climate risk, firm performance, panel local projections
    JEL: D22 Q54 R11
    Date: 2022–12
  49. By: Geoffrey Castillo (VCEE - Vienna Center for Experimental Economics, University of Vienna)
    Abstract: Preference reversals between choice and valuation are typically studied with probabilities or with time delays. I extend them to social distances and document their existence in this new domain.
    Keywords: preference reversals, social distance
    Date: 2021–10
  50. By: Bonilla-Mejía, Leonardo; Villamizar-Villegas, Mauricio; Ruiz-Sánchez, María Alejandra
    Abstract: This paper studies the impact of the Covid-19 pandemic on corporate credit in Colombia. We first exploit the geographic and temporal variation in the disease spread to estimate the effect of local exposure to the virus on credit. Our estimates indicate that neither local exposure to the virus, nor the sector-specific mobility restrictions had an impact on credit. We then assess the role of bank supply shocks. We create a measure of bank exposure, reflecting the geographic heterogeneity in pandemic vulnerability and deposits, and estimate its effect on credit. Results indicate that bank-supply shocks account for a credit contraction of approximately 5.2%. To further disentangle the role of bank supply shock, we control for the interaction between firm and time fixed-effects and restrict the sample to municipalities that were relatively spared from the pandemic, finding similar results. Most of the bank supply effects are driven by firms that are small, young, and have relatively low liquidity.
    Keywords: Credit; Covid-19 Pandemic; Bank liquidity
    JEL: G01 G21
    Date: 2023–02
  51. By: Thierry Blayac (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Patrice Bougette (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015-2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur); Florent Laroche (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper provides an empirical analysis of the determinants of service prices and frequencies of conventional high-speed rail (HSR) in France. We use original data for the period 09/2019-03/2020 and consider the intensity of intermodal competition and the diversification strategy of the incumbent rail operator. The main econometric results show that the determinants of the price per kilometer of conventional HSR services (1st and 2nd class) are partly common (especially for the variables explaining the technical characteristics of the routes and the alternative offer) and partly specific (competitive environment, economic and demographic environment). Frequencies depend mainly on travel time. On the routes for which the conventional HSR does not provide a quality service (frequency and/or price), a complementary alternative offer compensates the low frequency of conventional HSR services.
    Keywords: HSR, Intermodal competition, Multiproduct firms' strategies, Low-cost transportation, France, Working Papers du LAET
    Date: 2023
  52. By: Ann Hipp; Björn Jindra; Kehinde Medase
    Abstract: Former socialist systems were considered inferior to Western market economies in terms of innovation and productivity. We provide new evidence on the productivity effects of inventorship in the Soviet-type economy of the German Democratic Republic (GDR). We investigate three types of inventorship: knowledge generation, accumulation and diffusion. By applying a Cobb-Douglas production function using original primary and harmonized productivity data and manually cleaned patent data of the GDR between 1970 and 1989, we show that inventorship contributed to productivity in the industry sectors. This holds for knowledge generation, accumulation and diffusion in general, while in the presence of sufficient local interactive capabilities, international knowledge diffusion did not result in productivity gains. We contribute to empirical evidence on the productivity effects from an alternative system of patenting and innovation.
    Keywords: Soviet-type economy, productivity, inventorship, knowledge
    JEL: P23 L60 O14
    Date: 2023–01
  53. By: Gutiérrez, José Manuel; Quiroga Valle, Gloria
    Abstract: This article considers the dynamics of Spanish literacy in the period 1860-1910, characterized by local councils’ responsibility of public elementary education. To this end, it is built a harmonized series of the literacy of the population aged ten or over, disaggregated by sex and province. Marked spatial differences and a very large gender gap can be observed. Five clusters are determined according to the male literacy rates of the provinces in 1860; these clusters prove to have explanatory power all along the period and for both sexes. A parsimonious statistical model of the evolution of male literacy during the period, introducing linguistics variables, shows a considerable temporal stability of the spatial distribution of male literacy. The model of the evolution of female literacy presents similarities with that of male literacy, although now the initial state (in 1860) is not described by female literacy, but yet by male literacy. All in all, the evolution of literacy in Spain between 1860 and 1910 did not follow the spatial pattern of the economic modernization process. Besides, there was no correlation between birth rates and literacy rates of children, for both sexes, and the same can be said of the correlation between urbanization and literacy. Considering the West European context, the Spanish literacy process during the period 1860-1910 was a failure, except for the geographical area of the first cluster.
    Keywords: Literacy, Spain, nineteenth century, gender gap, spatial distribution
    JEL: N3
    Date: 2023–02–06
  54. By: Costa-Font, Joan; Powdthavee, Nattavudh
    Abstract: We study the effect of lottery wins on social ties and support network in the United Kingdom. On average, we find that winning more in the lottery increases the probability of meeting friends on most days, which is consistent with the complementary effect of income on social ties. The opposite is true with regards to social ties held for more instrumental reasons such as talking to neighbours. Winning more in the lottery also lessens an individual support network consistently with a substitution for instrumental social ties. However, further robustness checks reveal that the average lottery effects are driven by the few outliers of very large wins in the sample, thus suggesting that small to medium-sized wins (below £10k) may not be enough to change people’s social ties and support network in a substantial way.
    Keywords: income; lottery; socialization effect; unearned income; friendships; neighbourhood; social ties
    JEL: Z10
    Date: 2023–02–03
  55. By: Bassier, Ihsaan
    Abstract: How important are firms for wage inequality in developing countries where structural unemployment is high? Research focused on contexts close to full employment has suggested a substantial role of firms in labor market inequality. Using matched employer-employee data from South Africa, I find that firms explain a larger share of wage variation than in richer countries. I consider drivers of this, documenting first a higher productivity dispersion as found for other developing countries. Secondly, I estimate the separations elasticity by instrumenting wages of matched workers with firm wages, and I find a low separations elasticity. This generates a high degree of monopsony, and the correspondingly high estimated rent-sharing elasticity helps explain the important role of firm wage policies in inequality. Monopsony may be driven by higher unemployment, and regional heterogeneity provides suggestive evidence for this. Such firm-level competitive dynamics may exacerbate inequality in developing countries more generally.
    Keywords: inequality; firm wage premia; unemployment; monopsony
    JEL: D31 J31 J42 J63 J64
    Date: 2022–10–07
  56. By: Alessandro Melcarne (EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique); Benjamin Monnery (EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique); François-Charles Wolff (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - ONIRIS - École nationale vétérinaire, agroalimentaire et de l'alimentation Nantes-Atlantique - IMT Atlantique - IMT Atlantique - IMT - Institut Mines-Télécom [Paris] - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université - IUML - FR 3473 Institut universitaire Mer et Littoral - UM - Le Mans Université - UA - Université d'Angers - UBS - Université de Bretagne Sud - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - CNRS - Centre National de la Recherche Scientifique - Nantes Université - pôle Sciences et technologie - Nantes Univ - Nantes Université - Nantes Univ - ECN - Nantes Université - École Centrale de Nantes - Nantes Univ - Nantes Université)
    Abstract: While there is widespread evidence that sentences for similar cases tend to differ across courts, the production of sentencing disparities by prosecutors versus judges has received very limited attention to date. In this paper, we focus on this issue using traffic offenses data from neighboring courts in SouthEast France. First, we measure disparities for observably similar cases both at the extensive margin (type of sentences) and intensive margin (quantum) and find large differences in sentencing across courts. Second, we decompose those disparities between the influence of prosecutors through their procedural choices (simplified versus classical criminal procedures) and that of judges who always have the final word on sentences. While there is heterogeneity in the role of prosecutors between courts, we find that most sentencing disparities cannot be explained by the sole decisions of prosecutors.
    Date: 2022–09
  57. By: Basiglio, Stefania (University of Bari); Del Boca, Daniela (University of Turin); Pronzato, Chiara D. (University of Turin)
    Abstract: This paper evaluates the impact of "Coding Girls", an educational enrichment program designed to address the underrepresentation of women and girls in the fields of science, technology, engineering, and math (STEM) in Italy by stimulating young female students' interest in programming and science and encouraging them to consider careers in STEM-related fields. Implemented in ten secondary schools in Turin (Italy) over the period 2019-2022, the Coding Girls program provided lab-based computer programming instruction as well as introductory talks on specific topics in STEM. The program was evaluated by randomized controlled trial. Our results show that Coding Girls had a significant and positive impact on male and female students' programming skills and on their awareness of gender differences in the workforce. However, it did not seem to affect girls' aspirations to pursue higher education in STEM-related disciplines. The gender stereotypes children are exposed to from a very young age tend to steer girls and young women to the humanities. This bias is deeply entrenched and difficult to modify.
    Keywords: gender, STEM, higher educational choice
    JEL: J16 I23
    Date: 2023–01
  58. By: Gil, Eunsun (Korea Institute for Industrial Economics and Trade)
    Abstract: While overall production of the manufacturing industry has contracted due to the COVID-19 pandemic, total employment levels have not undergone a major adjustment. Unlike the service industry, which saw an immediate reduction in employment, the manufacturing industry has more-or-less maintained the scale of its employment. This property of manufacturing employment has served as a buffer against short-term production shocks and has helped limit the negative spillover effects on the labor market. Generally, employment in the manufacturing industry is not sensitive to short-term economic downturns. However, when the production outlook deteriorates for the longer term, major reductions in employment follow. Once large-scale restructuring occurs, industrial employment seldom rebounds thereafter. To boost job creation in the manufacturing industry, this study proposes independently classifying relevant manufacturing subsectors as 'job creators, ' independent of and distinguished from existing sectoral categorizations as 'new industries' or 'leading export industries.' Job policies in the private sector should thus target these job creators, identified as such for their high potential to produce net employment growth.
    Keywords: manufacturing; COVID-19; employment; labor; labor economics; business cycle; recession; employment shocks; job creation; employment policy; job creation policy; labor policy; manufacturing policy; Korea; employment growth; job growth; class mobility; social mobility; inequality
    JEL: D31 E32 H25 H32 J08 J21 J22 J23 J31 J38 J62 L60
    Date: 2021–07–12
  59. By: Jelnov, Pavel (Leibniz University of Hannover)
    Abstract: This paper takes advantage of a natural experiment, in which Soviet Jewish immigrants were quasi-randomly allocated of to the U.S. and Israel. I find that young women who immigrated as children follow similar fertility profiles in the two host countries. In Israel, they are also similar to native-born women by exercising almost no selection into motherhood and postnatal labor force participation. By contrast, and away from native-born American women, immigrants to the U.S. either combine family and career or become low-educated non-working mothers. This non-trivial segregation arises from a combination of the American Dream with origin-determined fertility norms.
    Keywords: immigration, Soviet Jews, female labor force participation, immigrant fertility
    JEL: J13 J61
    Date: 2023–01
  60. By: Bassier, Ihsaan
    Abstract: How does collective bargaining affect the broader wage structure? How are such spillovers transmitted? I present a model where firms with wage-setting power that are not covered by collective bargaining agreements, but are close to collective bargaining firms, are incentivized to increase their wages alongside these wage agreements. My model suggests an empirically rich measure of closely connected firms, the flow of workers between them. I test my hypotheses across a decade of wage agreements matched with worker-level data in South Africa. I show that bilateral worker flows reflect a wide range of firm characteristics, capturing firm links which are poorly predicted by industry and location. Observed wages in collective bargaining firms follow sharp increases in prescribed wages, and indeed firms more closely connected by worker flows to covered firms differentially increase wages more. My implied cross-wage elasticity is higher than comparable estimates in the literature because I am able to pin down the labor market segments empirically relevant to wage spillovers. A microdata simulation suggests that spillovers double the intensive and extensive margin effects of collective bargaining agreements on the full wage distribution.
    Keywords: collective bargaining; spillovers; worker flows; monopsony
    JEL: J31 J42 J51 L10
    Date: 2022–12–13

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