nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2023‒05‒01
forty-six papers chosen by
Steve Ross
University of Connecticut

  1. The Spatial Distribution of Public Spending, Commuting, and Migration By Wookun Kim
  2. Public and Private School Grade Inflations Patterns in Secondary Education By Silva, Pedro Luís; DesJardins, Stephen L.; Biscaia, Ricardo; Sá, Carla; Teixeira, Pedro N.
  3. Social Inclusion and Levels of Urbanisation: Does It Matter Where You Live? By Whelan, Adele; Devlin, Anne; McGuinness, Seamus
  4. Car dependency in the urban margins: the influence of perceived accessibility on mode choice By Blandin, Lola; Vecchio, Giovanni; Hurtubia, Ricardo; Aitken, Ignacio Tiznado
  5. Ride-hailing and transit accessibility considering the trade-off between time and money By Pereira, Rafael H. M.; Herszenhut, Daniel; Saraiva, Marcus; Farber, Steven
  6. Inequality, poverty, deprivation and the uneven spread of COVID-19 in Europe By Burlina, Chiara; Rodríguez-Pose, Andrés
  7. The role of localised, recombinant and exogenous technological change in European regions By T.E. Uberti; M.A. Maggioni; E. Marrocu; S. Usai
  8. Murphy's Law or Luck of the Irish? Disparate Treatment of the Irish in 19th Century Courts By Anna Bindler; Randi Hjalmarsson; Stephen Machin; Melissa Rubio-Ramos
  9. Rent gaps, gentrification and the “two circuits” of Latin American urban economies By Richmond, Matthew; Garmany, Jeff
  10. Moving OpportunityLocal Connectivity and Spatial Inequality By Luke Heath Milsom
  11. The Effects of Comprehensive Educator Evaluation and Pay Reform on Achievement By Eric A. Hanushek; Jin Luo; Andrew J. Morgan; Minh Nguyen; Ben Ost; Steven G. Rivkin; Ayman Shakeel
  12. Wage Returns to Human Capital Resulting from an Extra Year of Primary School: Evidence from Egypt By Assaad, Ragui; Aydemir, Abdurrahman; Dayioglu-Tayfur, Meltem; Kirdar, Murat G.
  13. Instant Report N. 11/2023 - Differentiated Regional Autonomy: A municipal-level analysis of education and income gaps in Apulia according to the Inner Areas classification By Annamaria Fiore
  14. The Initial and Dynamic Effects of the COVID-19 Pandemic on Crime in New Zealand By Lydia Cheung; Philip Gunby
  15. Displacing Congestion: Evidence from Paris By Lea Bou Sleiman
  16. Environmentally-Inclined Politicians and Local Environmental Performance: Evidence from Publicly Listed Firms in China By Hanming Fang; Honglin Ren; Danwen Song; Nianhang Xu
  17. Measurement Quality of Life of Rural to Urban Migrants in Ho Chi Minh City by Using Partial Least Square Structural Equation Model By Tien Ha Duong, My; Nguyen, Quyen Le Hoang Thuy To; Nguyen, Phong Thanh
  18. Global flows and rates of international migration of scholars By Aliakbar Akbaritabar; Tom Theile; Emilio Zagheni
  20. Wealth and Property Taxation in the United States By Sacha Dray; Camille Landais; Stefanie Stantcheva
  21. When, where, and for what industries does broadband foster establishment births? By Chloé Duvivier; Emma Cazou; Stéphanie Truchet-Aznar; Cédric Brunelle; Jean Dubé
  22. The effects of inter-municipal cooperation and central grant allocation on the size of the French local public sector By Touria Jaaidane; Sophie Larribeau
  23. A general equilibrium model for multi-passenger ridesharing systems with stable matching By Rui Yao; Shlomo Bekhor
  24. Educational tracking and the polygenic prediction of education By Hannu Lahtinen; Pekka Martikainen; Kaarina Korhonen; Tim T. Morris; Mikko Myrskylä
  25. State Taxation of Nonresident Income and the Location of Work By Agrawal, David R.; Tester, Kenneth
  26. Wayfair: A Step Towards the Destination, But Sales Tax Competition Remains By Donald Bruce; William F. Fox; Alannah M. Shute
  27. The Cost of Privacy. The Impact of the California Consumer Protection Act on Mortgage Markets. By Manish Gupta; Danny McGowan; Steven Ongena
  28. Online communities and entrepreneuring mothers: practices of building, being and belonging By Natalia Vershinina; Nichola Phillips; Maura Mcadam
  29. Visa Policy and International Student Migration: Evidence from the Student Partners Program in Canada By Jérôme Gonnot; Mauro Lanati
  30. Longevity, Health and Housing Risks Management in Retirement By Pierre-Carl Michaud; Pascal St-Amour
  31. Fiscal Decentralization and Health Care Access and Quality: Evidence from Local Governments Around the World By Kyriacou, Andreas; Roca-Sagalés, Oriol
  32. The greening of lending: mortgage pricing of energy transition risk By Bell, Jennifer; Battisti, Giuliana; Guin, Benjamin
  33. How Voluntary Information Sharing Systems Form: Evidence from a U.S. Commercial Credit Bureau By José Liberti; Jason Sturgess; Andrew Sutherland
  34. Are Older Mortgage Applicants More Likely to Be Rejected? By Natee Amornsiripanitch
  35. Idaho Blacks: Quiet Economic Triumph of Enduring Champions By Rama K. Malladi; Phillip Thompson
  36. Managing student transitions into upper secondary pathways By Anna Vitoria Perico E Santos
  37. On the Black-White Gaps in Labor Supply and Earnings over the Lifecycle in the US By Rauh, C.; Valladares-Esteban, A.
  38. Surnames in local newspapers and social mobility By Massimo Baldini; Andrea Barigazzi
  39. Zero-Emission Bus Implementation Guidebook for California Transit Fleets By Lipman, Timothy PhD; Rogers, Emily MS
  40. Air Quality, High-Skilled Worker Productivity and Adaptation: Evidence from GitHub By Felix Holub; Beate Thies
  41. Price Competition and Endogenous Product Choice in Networks: Evidence From the US Airline Industry By Christian Bontemps; Cristina Gualdani; Kevin Remmy
  42. Identity, Communication, and Conflict: An Experiment By Sumon Bhaumik; Subhasish M. Chowdhury; Ralitza Dimova; Hanna Fromell
  43. How creative versus technical constraints affect individual learning in an online innovation community By Victor P. Seidel; Christoph Riedl
  44. Measuring Stimulus Effects Around Stock Road in Philippi in the Western Cape By Shamima VAWDA; Mélani PRINSLOO; Martin PRINSLOO; Rawane YASSER
  45. Can Education Change Risk Preference? Evidence from Indonesia and Mexico By Zhou, Renee
  46. On the Road to Equity: Examining Income-Related Inequalities in Ownership of Safer Vehicles By Carrieri, Vincenzo; Davillas, Apostolos; de Oliveira, Victor Hugo

  1. By: Wookun Kim (Southern Methodist University)
    Abstract: What are the aggregate welfare consequences of fiscal transfers across local governments that finance their spending? Answering these questions requires understanding of how much people value local public spending. I develop a spatial equilibrium framework in which people's simultaneous migration and commuting choices reveal preferences. I combine this framework with unique data from South Korea and tax reforms as a source of exogenous variation. The estimated mobility responses imply that workers value an additional dollar of per-capita local government spending by 75 cents of their after-tax income. The general-equilibrium counterfactuals imply that a fiscal arrangement with lower redistribution would result in aggregate gains. A key aspect of my analysis is that bilateral migration and commuting decisions are made jointly. Ignoring any of these margins biases the estimates of preferences for public goods, and of distance elasticities of migration or commuting which play a central role in quantitative spatial models.
    Keywords: local public finance, redistribution, gravity equation, migration, commuting, quan-titative spatial model
    JEL: H3 H77 J61 R12 R13 R5
  2. By: Silva, Pedro Luís (University of Porto); DesJardins, Stephen L. (University of Michigan); Biscaia, Ricardo (CIPES – Centre for Research in Higher Education Policies); Sá, Carla (CIPES – Centre for Research in Higher Education Policies); Teixeira, Pedro N. (University of Porto)
    Abstract: Grade inflation in high schools is potentially problematic for students, education institutions, and society. We examine the extent of potential grading inflation in courses taken during high school and how such differences vary across student and school characteristics. Utilizing longitudinal, administrative data for the population of high school students in an entire country (Portugal) over ten years, we develop a measure of grade inflation using the position of the student's high school grade relative to their score on the national standardized admission exam. We analyze differences in this measure across four types of high schools: TEIP schools (public schools located in disadvantaged areas that include children at-risk of social exclusion), public schools (state-funded schools), private schools, and private association schools (owned by private entities but publicly funded). We find that private association schools exhibit a lower probability of grade inflation when compared to public schools. Additionally, TEIP schools tend to have a higher probability of inflation for students with high grades. Implications for policy and practice are discussed.
    Keywords: grade inflation, grading standards, high school grading, postsecondary access equity, upper secondary education
    JEL: I21 I23 I24
    Date: 2023–03
  3. By: Whelan, Adele (ESRI, Dublin); Devlin, Anne (ESRI, Dublin); McGuinness, Seamus (Economic and Social Research Institute, Dublin)
    Abstract: Are individuals living in distinct urban or rural settings more likely to experience barriers to social inclusion? If so, what are the nature of the barriers that they face? Using a unique administrative dataset for Ireland's dominant social inclusion programme, this paper examines the effect of location on the incidence of barriers to social inclusion. We find that some forms of social exclusion, particularly those which are related to economic exclusion, are more prevalent for those in independent urban towns compared to cities, commuter towns or rural areas, even after controlling for area-level deprivation. The results suggest that existing policy, which has traditionally focused on tackling social disadvantage in the most urban or rural areas, is not well targeted and would benefit from having a wider spatial focus.
    Keywords: social inclusion, urban disadvantage, community economic development, jobless household, lone parents, disability, homelessness, ethnic minority
    JEL: R10 R58 P25 J15
    Date: 2023–04
  4. By: Blandin, Lola (Grenoble Applied Economics Lab); Vecchio, Giovanni; Hurtubia, Ricardo; Aitken, Ignacio Tiznado
    Abstract: Car dependence is a dimension of transport poverty whose subjective components have been limitedly explored. Research on car dependence highlights the incidence of transport costs on family budgets, assesses the multidimensional vulnerability of car-dependent subjects and the possibility to access valued opportunities. However, people’s perceptions and their perceived ability to access relevant places can also influence the way in which they move in car dependent settings. In this paper, we aim to examine to which extent perceived accessibility influences mode choices in such areas. Based on a survey carried out in four peripheral and periurban municipalities in the Metropolitan Region of Santiago de Chile, we examine how subjective perceptions of accessibility contribute to explain modal choice in the outskirts of Santiago. Results show that perceived accessibility has a negative net impact on the utilities for both car and public transport, which means that a low perceived accessibility increases the likelihood of choosing motorized modes. Moreover, residents from peripheral municipalities tend to perceive a higher accessibility than households from periurban areas, which are excluded from the public transport system. These findings show the importance of providing nearby opportunities and convenient alternatives to the car in order to limit car dependency, especially in periurban areas.
    Date: 2023–03–28
  5. By: Pereira, Rafael H. M.; Herszenhut, Daniel; Saraiva, Marcus; Farber, Steven
    Abstract: Ride-hailing services have the potential to expand access to opportunities, but out-of-pocket costs may limit the benefits of ride-hail for low-income individuals. This paper examines how ride-hailing services can shape spatial and socioeconomic differences in access to opportunities while accounting for the trade-off between travel time and monetary costs. Using one year of aggregate Uber trip data for Rio de Janeiro in 2019 and a new multi-objective optimization routing method, we analyze the potential for ride-hailing services to improve employment accessibility when used as a standalone transportation mode and in conjunction with transit as a first-mile feeder service. We compare the accessibility Pareto frontiers of these transport mode alternatives with cumulative opportunity measures considering multiple combinations of travel time and monetary cost thresholds. We find that, compared to transit, ride-hailing can significantly expand accessibility as a standalone transport mode for relatively short trips (between 10 and 40 minutes), and as a first-mile feeder to transit in trips longer than 30 minutes. In both cases, the accessibility advantages of ride-hailing are mostly limited by relatively higher out-of-pocket costs. When we account for different affordability thresholds, the accessibility benefits of ride-hailing services accrue mostly to high-income groups. These findings suggest that policy efforts to integrate rideshare with transit are likely not going to benefit low-income communities without some form of subsidized fare discounts to alleviate affordability barriers. The paper also highlights how accounting for trade-offs between travel-time and monetary costs can importantly influence the results of transportation accessibility and equity studies, suggesting that this issue should be addressed in future research.
    Date: 2023–03–23
  6. By: Burlina, Chiara; Rodríguez-Pose, Andrés
    Abstract: COVID-19 is mostly considered to have ravaged places with high levels of inequality and poverty. Yet, in the case of Europe, the evidence for this is limited. In this paper we address this gap in our knowledge by exploring how regional variations in poverty, wealth, and inter-personal inequality have shaped COVID-19-related excess mortality. The results show that during the first 18 months of the pandemic there is no link between inequality and poverty, on the one hand, and the lethality of the disease, on the other. The geographical concentration of wealthy people is related to more, not less, excess mortality.
    Keywords: Covid-19; pandemic; inequality; poverty; institutions; regions; Europe; coronavirus; T&F deal
    JEL: R58 D31
    Date: 2023–03–15
  7. By: T.E. Uberti; M.A. Maggioni; E. Marrocu; S. Usai
    Abstract: How do regions develop and evolve along their productive and technological path is a central question. Within an evolutionary perspective, a given region is likely to develop new technologies closer to its pre-existing specialization. We adopt the approach of Hidalgo et al. (2007) to map the regional European technology/knowledge space to investigate the pattern and the evolution of regional specialisation in the most innovative EU countries. These dynamics depend on the interaction of three factors - (i) localised technological change, (ii) endogenous processes of knowledge recombination, and (iii) exogenous technological paradigm shifts while accounting for spatial and technological spillovers. Our paper maps the technological trajectories of 198 EU regions over the period 1986-2010 by using data on 121 patent sectors at the NUTS2 level for the 11 most innovative European countries, plus Switzerland and Norway. The results show that regional technological specialization is mainly shaped by localised technological change and exogenous technological paradigm shifts, whereas recombinant innovation contributes to a lower extent and that these effects largely depends on the increasing, decreasing or stable regional dynamics.
    Keywords: Technology/knowledge space;spatial ordered models.;recombinant innovation;patent analysis;localised technology change;evolutionary economic geography;european regions
    Date: 2023
  8. By: Anna Bindler (University of Cologne and University of Gothenburg); Randi Hjalmarsson (University of Gothenburg); Stephen Machin (London School of Economics and CEP); Melissa Rubio-Ramos (University of Cologne)
    Abstract: Using data on 100 years of 19th century criminal trials at London’s Old Bailey, this paper offers clear evidence of disparate treatment of Irish-named defendants and victims by English juries. We measure surname Irishness and Englishness using place of birth in the 1881census. Irish-named defendants are 11% less likely to plea, 3% more likely to be convicted by the jury, and 16% less likely to receive a jury recommendation for mercy. These disparities are: (i) largest for violent crimes and for defendants with more distinctive Irish surnames; (ii) robust to case characteristic controls and proxies for signals associated with Irish surnames (social class, Irish county of origin, criminality); (iii) particularly visible for Irish defendants in cases with English victims; and (iv) spill-over onto English-named defendants with Irish codefendants. Disparate treatment is first visible in the 1830s, after which it grows, then persists through to the end of the century. In particular, the gap in jury conviction rates became larger during the twenty years after the Irish Potato Famine-induced migration to London. We do not find evidence, however, that the first bombing campaign of the Irish Republican Brotherhood (in 1867 and the 1880s) further exacerbated these disparities.
    Keywords: Irish, crime, criminal law, discrimination, economic history
    JEL: K42 K14 J15 N33 N93
    Date: 2023–04
  9. By: Richmond, Matthew; Garmany, Jeff
    Abstract: Recent research in Latin America, and our own analysis of Brazilian cities, indicate that aspects of rent gap theory – in particular, the assumption that strong links exist between rent gaps and gentrification – do not fully account for observed empirical conditions. Drawing on Milton Santos' theory of “two circuits” of urban economies in the global South, we seek to develop an expanded framework better suited to explaining the Latin American context. Specifically, we argue that important socio-spatial processes combine to embed what Santos called the “lower circuit” in certain parts of the city. This “territorialisation” of space by the lower circuit impedes the entry of the upper circuit, thus constraining expected rent gap capture and gentrification. We argue that only by taking both circuits into account, and considering how they become territorialised in urban space, can we properly grasp the relationship between rent gaps and gentrification in Latin American cities.
    Keywords: rent gap; gentrification; Southern theory; Latin America; Brazil; urban development; 1632145; ES/ P007635/1; ECF-2019-315; Wiley deal
    JEL: J1
    Date: 2023–03–28
  10. By: Luke Heath Milsom
    Abstract: Spatial inequality within countries is a pervasive and persistent phenomenon. Howdoes the connectivity of place determine underlying spatial inequality of opportunity?To answer this question, I derive a sufficient statistic result linking local opportunity tomarket access terms, developing a framework consistent with a broad class of spatialgeneral equilibrium models. I empirically validate this result using a novel not-on-least-cost-path identification strategy and data from historical road maps in Benin, Cameroon, and Mali covering 1970 to 2020, that I digitize. Using these estimates toparameterize a structural case of the spatial model, I show that road building alters thespatial distribution of opportunity. By considering each possible road upgrade I showthat although some roads decrease the standard deviation of opportunity by more than2%, others increase inequality by a similar amount. By fixing the spatial distribution ofopportunity I show that to achieve similar reductions in inequality by moving people, aprohibitively large number would need to migrate from low- to high-opportunity areas— between 13% and 44% of the low-opportunity areas’ population. Policymakers alsoface an equity-efficiency trade-off: 4 out of the top 10 aggregate opportunity-increasingroads alsoincreasespatial inequality of opportunity.
    Keywords: Inequality, Opportunity, Roads, Spatial, Market Access
    Date: 2023–04
  11. By: Eric A. Hanushek; Jin Luo; Andrew J. Morgan; Minh Nguyen; Ben Ost; Steven G. Rivkin; Ayman Shakeel
    Abstract: A fundamental question for education policy is whether outcomes-based accountability including comprehensive educator evaluations and a closer relationship between effectiveness and compensation improves the quality of instruction and raises achievement. We use synthetic control methods to study the comprehensive teacher and principal evaluation and compensation systems introduced in the Dallas Independent School District (Dallas ISD) in 2013 for principals and 2015 for teachers. Under this far-reaching reform, educator evaluations that are used to support teacher growth and determine salary depend on a combination of supervisor evaluations, student achievement, and student or family survey responses. The reform replaced salary scales based on experience and educational attainment with those based on evaluation scores, a radical departure from decades of rigid salary schedules. The synthetic control estimates reveal positive and significant effects of the reforms on math and reading achievement that increase over time. From 2015 through 2019, the average achievement for the synthetic control district fluctuates narrowly between -0.27 s.d. and -0.3 s.d., while the Dallas ISD average increases steadily from -0.28 s.d. in 2015 to -0.08 s.d. in 2019, the final year of the sample. Though the increase for reading is roughly half as large, it is also highly significant.
    JEL: H75 I20 I21 J30 J45
    Date: 2023–03
  12. By: Assaad, Ragui (University of Minnesota); Aydemir, Abdurrahman (Sabanci University); Dayioglu-Tayfur, Meltem (Middle East Technical University); Kirdar, Murat G. (Bogazici University)
    Abstract: In this paper, we examine the wage returns to an extra year of primary school using a policy reform in Egypt, which reduced compulsory primary schooling from 6 to 5 years. Since this policy changed the duration of primary school while providing the same diploma, we can estimate the human capital effects holding the sheepskin effects constant. We find that the wage returns to an extra year of primary school for Egyptian men aged 24–44 is a statistically insignificant 2–4 percent. Despite the low returns for the overall population, the returns are much higher for men born in rural areas and men whose fathers have low levels of education—indicating important human capital effects for underprivileged boys. Consistent with this result, we find that the policy effects of a one-year reduction in primary schooling on schooling attainment at various levels are more adverse for underprivileged boys. Our findings, therefore, suggest that such a policy could be particularly detrimental for students from lower socioeconomic groups—contributing to increased inequality.
    Keywords: returns to schooling, early human capital investment, instrumental variables, compulsory education duration, Egypt
    JEL: J18 J31 I21 I28
    Date: 2023–03
  13. By: Annamaria Fiore
    Abstract: In this issue, a technical contribution is made to the ongoing debate on differentiated autonomy by providing an original key to interpretation on the basis of the classification of Apulia's municipalities by centres and inner areas, albeit in the knowledge that what matters in terms of differentiated autonomy is the level of services (LEPs), while for the inner areas it is the accessibility of services in terms of travel time. What emerges is the statistical evidence of the significant differences between the municipalities belonging to the different typologies (Poles, Belt, Intermediate, Peripheral and Ultraperipheral) and therefore according to the distance from essential services. The hope that derives from this is that there will be a strong involvement of the Regions in setting the LEPs and that the various territories will be considered in their criticalities and vulnerability points with ample use of information and data as the basis for public choices, using appropriate criteria that take into account internal specificities.
    Date: 2023–04–05
  14. By: Lydia Cheung; Philip Gunby (University of Canterbury)
    Abstract: We use seasonal ARIMA methods to study the imposition and removal of national uniform social distancing restrictions in response to Covid-19 in New Zealand for six crime types in six cities. We then use the estimated models to forecast counterfactual crime trajectories. Novel elements include cleanly defined lockdown periods, two distinct lockdowns with meaningful gaps between them, and sizable periods after each one to allow for dynamics. We find that social restrictions initially lower offending, subsequent lockdowns have smaller impacts on offending, “bounce back” occurs in criminal offending after their removal, and bounce back is faster from subsequent lockdowns.
    Keywords: COVID-19; lockdown; crime; counterfactual; bounce back
    JEL: C22 H75 K14 K42
    Date: 2023–03–01
  15. By: Lea Bou Sleiman
    Abstract: This paper shows that road-closing policies may have adverse short-run effects on pol-lution by reallocating traffic toward more congested roads. I study the impact of the2016closure of the Voie Georges Pompidou, a one-way expressway crossing downtown Paris, ontraffic and pollution displacement. To do so, I rely on a difference-in-difference strategy basedon the direction and the timing of traffic, which I implement on detailed road-sensor data.I show that the closure lowered average speed by over15% on two sets of substitute roads:central streets nearby and the already congested southern ring road. Using air quality data, I show that NO2concentrations increased by6% near the ring road and by1.5% near lo-cal roads. The reduced-form results on traffic are quantitatively consistent with a calibratedmodel of shortest route choice, which allows me to recover the underlying rerouting patterns.Even though few displaced commuters diverted to the ring road, they triggered a massivepollution increase because of the U-shaped relationship between emissions and traffic speed.Overall, I estimate that up to90% of the pollution cost was borne by lower-income residentsaround the ring road, who lived far away from the new amenity created by the closure andmostly outside the jurisdiction responsible for the closure decision. Finally, I study counter-factual closure scenarios to assess under which conditions those adverse effects could havebeen mitigated.
    Keywords: Congestion, Air Pollution, Public Transportation, Route Choice
    Date: 2023–04
  16. By: Hanming Fang; Honglin Ren; Danwen Song; Nianhang Xu
    Abstract: We study how environmentally-inclined politicians (EIPs), i.e., politicians with prior environment-related working experience, affect local environmental performance in China. Firms located in cities with EIPs have lower levels of sulfur dioxide (SO2) emissions. The effect is attenuated when the politician is in his/her second term and among firms that are economically important. Firms in cities with EIPs commit less environmental violations, receive more green subsidies from the local government, and choose to establish new polluting subsidiaries in cities without EIPs. Furthermore, these EIPs do not have inferior economic performance and their promotion likelihood is negatively related to local emission levels. The findings overall suggest that local officials strategically leverage their expertise in environment protection to allocate more effort on environmental causes.
    JEL: D72 G38 H75 Q53
    Date: 2023–03
  17. By: Tien Ha Duong, My; Nguyen, Quyen Le Hoang Thuy To; Nguyen, Phong Thanh
    Abstract: Ho Chi Minh City is among the top cities in Vietnam with a high proportion of rural to urban migration. This strongly contributes to the economic growth of the city but challenges the infrastructure, social security services, health care, clean water, education, traffic, safety, and social order which negatively impacts the quality of life. The purpose of this study was to explore the life quality of rural to urban migrants in Ho Chi Minh City. A quantitative method was employed to confirm the measurement model and structural model. Probability sampling was applied for the field survey. The final data of 272 migrants have been analyzed, using Partial Least Squares Structural Equation Model (PLS-SEM). Social capital, a special resource of the vulnerable like rural to urban migrants has been investigated. This contributes to the theory that both social capital and quality of life have been approached multi-dimensionally. Bonding, bridging, and linking dimensions have all been approached to construct the social capital measurement model. Five aspects of life quality including work, housing, environment, finance, and social cohesion have been measured to reflect the quality of life multi-dimensionally. The research results showed the reliability and validity of the measurement model. The positive impact of social capital on quality of life has empirically been confirmed. The findings implied the prompt strategies for mobilizing social capital effectively and efficiently, including the exploitation of bonding, bridging, and linking to improve the quality of life.
    Keywords: PLS-SEM, Quality of Life, Social Capital, Migrant, Vietnam
    JEL: I3 J17 O18 P25
    Date: 2022–04
  18. By: Aliakbar Akbaritabar (Max Planck Institute for Demographic Research, Rostock, Germany); Tom Theile (Max Planck Institute for Demographic Research, Rostock, Germany); Emilio Zagheni (Max Planck Institute for Demographic Research, Rostock, Germany)
    Abstract: Lack of reliable and comprehensive migration data is one of the major reasons that prevents advancements in our understanding of the causes and consequences of migration processes, including for specific groups like high-skilled migrants. We leverage large-scale bibliometric data from Scopus and OpenAlex to trace the global movements of a specific group of innovators: scholars. We developed pre-processing steps and offered best practices for the measurement and identification of migration events from bibliometric data. Our results show a high level of correlation between the count of scholars in Scopus and OpenAlex for most countries. While the magnitude of observed migration events in OpenAlex is larger than in Scopus, the bilateral flows among top pairs of origin and destination countries are consistent in the two databases. Even though OpenAlex has a higher coverage of non-Western countries, the highest correlations with Scopus are observed in Western countries. We share our aggregated estimates of international migration rates, and bilateral flows, at the country level, and expect that our estimates will enable researchers to improve our understanding of the causes and consequences of migration of scholars, and to forecast the future mobility of global academic talent.
    Keywords: Europe, World, international migration, migration, migration flow
    JEL: J1 Z0
    Date: 2023
  19. By: Kurniawati, Wahyuni
    Abstract: Jakarta Mass Rapid Transit (MRT) is a city mass transportation rail-based rapid (fast railway) being built to reduce congestion in Jakarta. The aim of this research is to analyze the impact of the first stage construction of the Mass Rapid Transit on DKI Jakarta’s economic conditions. MRT is a rail-based transport mode, which lies in an underground passage, and is elevated by using electric power. It is currently under construction and will be operating in 2019. The project is spending extensive funds borrowed from Japan International Cooperation Agency (JICA). MRT is built as a solution to the traffic congestion and as way to improving the quality of mass transportation in Jakarta. Hence, it is very important to know the effects that occur with the construction of the MRT. The research method applies input-output model of Jakarta in 2010 and descriptive analysis. This study found that by the construction of the MRT in Jakarta, it is increased the Gross Domestic Product of Jakarta by two percent, the construction sector contributed the most, and managed to increase income, as well as increasing the amount of labor in Jakarta
    Date: 2023–04–09
  20. By: Sacha Dray; Camille Landais; Stefanie Stantcheva
    Abstract: We study the history and geography of wealth accumulation in the US, using newly collected historical property tax records since the early 1800s. The US General Property Tax was a comprehensive tax on all types of property (real, personal, and financial), making it one of the first “wealth taxes.” Drawing on many historical records, we construct long-run, consistent, high-frequency wealth series at the county, state, and national levels. We first document the long-term evolution of household wealth in the US since the early 1800s. The US experienced extraordinary wealth accumulation after the Civil war and until the Great Depression. Second, we reveal that spatial inequality in the US has been large and highly persistent since the mid-1800s, driven mainly by Southern states, whose long-run divergence from the rest of the US predated the Civil War. Before the Civil war, enslaved people were assessed as personal property of the enslavers, representing almost one-half of total taxable property in Southern states. In addition to the moral and ethical issues involved, this system wrongly counted forced labor income as capital. The regional distribution of wealth and the effects of the Civil war appear very different if enslaved people are not included in the property measure. Third, we investigate the determinants of long-term wealth growth and capital accumulation. Among others, we find that counties with a higher share of enslaved property before the Civil War or higher levels of wealth inequality experienced lower subsequent long-run growth in property.
    JEL: E01 H20 H71 J15 N31 R12
    Date: 2023–03
  21. By: Chloé Duvivier (Territoires - Territoires - AgroParisTech - VAS - VetAgro Sup - Institut national d'enseignement supérieur et de recherche en alimentation, santé animale, sciences agronomiques et de l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UCA - Université Clermont Auvergne); Emma Cazou; Stéphanie Truchet-Aznar (Territoires - Territoires - AgroParisTech - VAS - VetAgro Sup - Institut national d'enseignement supérieur et de recherche en alimentation, santé animale, sciences agronomiques et de l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UCA - Université Clermont Auvergne); Cédric Brunelle; Jean Dubé
    Abstract: We examine the effects of broadband on establishment births for five types of areas, six industries and two speed levels. Econometric results indicate that broadband has an overall positive effect in larger, medium and small urban centres and in periurban areas but has little or no impact in rural areas. However, industry-level analyses show that broadband can foster establishment births in rural areas in some industries, including selected knowledge-intensive industries. Finally, there are no great differences between the impacts of basic and fast broadband, except in larger urban centres with a higher skilled workforce able to use sophisticated applications.
    Keywords: Broadband, Establishment births, Urban gradient
    Date: 2021–12
  22. By: Touria Jaaidane (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique, CRED - Centre de Recherche en Economie et Droit - Université Paris-Panthéon-Assas); Sophie Larribeau (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)
    Abstract: The analysis of French municipalities' public personnel expenditures allows us to study the issue of the size of the local public sector. We concentrate on two paths that French authorities have followed to limit it, i.e., the promotion of inter-municipal cooperation (IMC) and the cut in grants received by municipalities. Our objective is to evaluate their respective role in the evolution of public personnel expenditures at the municipal level, in a context where local politics comes into play. We consider a large panel dataset of municipalities embedded in IMC structures between 2011 and 2018. Our main results, obtained using an original identification strategy, are threefold. We first find evidence that a substitution effect between municipal and IMC personnel expenditures is at work. Second, we find a partisan distorsion through the grant allocation: despite its formula-based definition, aligned and unaligned municipalities are treated differently by the central government. Third, we show that cuts in grants lead to cuts in municipalities' public wage bills, while partisanship hinders such cuts.
    Date: 2023–01
  23. By: Rui Yao; Shlomo Bekhor
    Abstract: This paper proposes a general equilibrium model for multi-passenger ridesharing systems, in which interactions between ridesharing drivers, passengers, platforms, and transportation networks are endogenously captured. Stable matching is modeled as an equilibrium problem in which no ridesharing driver or passenger can reduce ridesharing disutility by unilaterally switching to another matching sequence. This paper is one of the first studies that explicitly integrates the ridesharing platform multi-passenger matching problem into the model. By integrating matching sequence with hyper-network, ridesharing-passenger transfers are avoided in a multi-passenger ridesharing system. Moreover, the matching stability between the ridesharing drivers and passengers is extended to address the multi-OD multi-passenger case in terms of matching sequence. The paper provides a proof for the existence of the proposed general equilibrium. A sequence-bush algorithm is developed for solving the multi-passenger ridesharing equilibrium problem. This algorithm is capable to handle complex ridesharing constraints implicitly. Results illustrate that the proposed sequence-bush algorithm outperforms general-purpose solver, and provides insights into the equilibrium of the joint stable matching and route choice problem. Numerical experiments indicate that ridesharing trips are typically longer than average trip lengths. Sensitivity analysis suggests that a properly designed ridesharing unit price is necessary to achieve network benefits, and travelers with relatively lower values of time are more likely to participate in ridesharing.
    Date: 2023–03
  24. By: Hannu Lahtinen; Pekka Martikainen (Max Planck Institute for Demographic Research, Rostock, Germany); Kaarina Korhonen; Tim T. Morris; Mikko Myrskylä (Max Planck Institute for Demographic Research, Rostock, Germany)
    Abstract: Although it is well known that individuals’ genetics relate to their educational attainment, our understanding of how this may vary across differing educational institutional contexts is limited. In an educational system that does not separate students into different tracks early on, individuals’ unique skills and interests may have more time to manifest, which could potentially strengthen the genetic prediction of education. We test such a hypothesis exploiting the natural experiment of the Finnish comprehensive school reform employed gradually and regionally across the country between 1972 and 1977, using genetically informed population-representative surveys linked to data from administrative registers. We observed that the genetic prediction of education was stronger after the reform by one-third among men and those coming from low-educated families. We observed no evidence for reform effects among women or those from high-educated families. The increase in genetic prediction was particularly pronounced among the first cohort experiencing the new system. From the perspective of genetic prediction, the reform to a more universalist curriculum was successful in promoting equality of opportunity. The results also highlight the potential of various turbulent circumstances – such as puberty or ongoing restructuring of institutional practices – in magnifying genetic effects.
    JEL: J1 Z0
    Date: 2023
  25. By: Agrawal, David R.; Tester, Kenneth
    Abstract: Prior studies show that taxes matter for the residential locations of high-income earners. But, states raise a significant share of revenue from nonresidents. Using variation in state tax rates, we provide causal evidence on the effect of the net-of-tax rate on the location of labor supply for professional golfers. State taxes induce high-income earners to shift employment to low-tax states without a residence change. The elasticity of working in a state is 0.34, and consistent with superstar phenomenon, increases with earnings. Our results suggest a novel margin of mobility responses for top-earners: the spatial relocation of labor supply by nonresidents.
    Keywords: state taxes, superstars, taxing the rich, avoidance, mobility, highfrequency labor supply
    JEL: J22 J61 H26 H73 R50
    Date: 2023
  26. By: Donald Bruce; William F. Fox; Alannah M. Shute
    Abstract: The U.S. Supreme Court decision in the landmark 2018 Wayfair case greatly improved state governments’ ability to enforce collection of sales taxes on a destination basis. This has reduced state tax competition with an essentially-untaxed internet, but has brought traditional cross-border shopping, which is often subject to origin taxation, back to prominence among policy makers and researchers. We provide a detailed discussion of state and local sales tax features and the extent to which they have fostered sales tax competition in recent decades. We then explore the extent to which greater destination taxation has influenced the location of (a) consumer purchases and (b) business locations using two different empirical approaches. First, we analyze county-level data for Tennessee and select surrounding states to provide suggestive evidence that sales tax collections have grown more in rural Tennessee counties and less in Tennessee border counties since Wayfair. Additionally, we show that collections have grown more since Wayfair in North Carolina counties along the Tennessee border, where the tax rate differential is on the order of 3.3 percentage points. Second, we examine state-level data to show that business applications have grown at much faster rates after Wayfair in states with the highest sales tax rates. We attribute this to the removal of the significant disincentive to establish sales tax nexus that dominated the pre-Wayfair environment.
    JEL: H20 H26 H27 H71 H77
    Date: 2023–03
  27. By: Manish Gupta (Nottingham University Business School); Danny McGowan (University of Birmingham); Steven Ongena (University of Zurich - Department of Banking and Finance; Swiss Finance Institute; KU Leuven; NTNU Business School; Centre for Economic Policy Research (CEPR))
    Abstract: We study how the introduction of a law protecting consumer data privacy affects the cost of credit in the US mortgage market. Our estimates reveal that the California Consumer Protection Act increases loan spreads charged by banks by 8 basis points but that it has no effect on the fixed origination costs charged to borrowers. In contrast, nonbanks do not charge more, possibly because they often resell to government-sponsored enterprises thereby minimizing their compliance costs. Banks also reduce their supply of credit more in lower-income areas, consistent with more informationally intense data collection practices there potentially exposing them to larger legal costs. In sum, our findings suggest that banks pass the CCPA compliance costs to borrowers through higher interest rates and reduce their legal exposure by curtailing credit where more data need to be collected.
    Keywords: Consumer Data Privacy, Shadow Banks, Mortgages, Regulatory Costs
    JEL: D12 G21 G23 G28
    Date: 2023–03
  28. By: Natalia Vershinina (Audencia Recherche - Audencia Business School); Nichola Phillips (DMU - De Montfort University [Leicester, United Kingdom]); Maura Mcadam (DCU - Dublin City University [Dublin])
    Abstract: Informed by contributions of Professor Alistair Anderson to the social perspective of entrepreneurship, rooted in social relationships and social capital, this article examines how members of an online community collectively interpret and negotiate the challenges of pursuing entrepreneurship alongside parenthood. This article adopts a multi-staged research design, incorporating netnography, participant observation, and qualitative semi-structured interviews. The analysis reveals the critical role of networking in how entrepreneuring women construct and maintain community connections and distinguishes between three dimensions of community engagement: Building, Being and Belonging. Drawing on communities of practice as an analytical lens, we offer new insights into the form and function of communal entrepreneurial practices facilitated by the digital environment.
    Keywords: Entrepreneurship, motherhood, online communities, communities of practice, gender
    Date: 2022–06–06
  29. By: Jérôme Gonnot; Mauro Lanati
    Abstract: This paper examines how visa policy affects international student migration. Using administrative data on community colleges in Canada, we evaluate a reform that introduced a new visa stream - the Student Partners Program (SPP) - with shorter processing times and higher approval rates for student visa applicants able to demonstrate that they have the financial resources and language skills to succeed academically. Using a triple difference estimator, we find that SPP increased student migration from treated countries by 33% relative to what would have occurred without the reform. In line with our theoretical model, we further show that SPP had a large and positive effect on international enrollment only in countries where migration fraud was a major concern, and that higher enrollment was driven by an increase in both the approval rate and the volume of applications to study at treated institutions. We also leverage the SPP reform to investigate potential crowding-out effects. While we find no evidence that the enrollment of international students took place at the expense of domestic students, our results indicate that the recruitment of students from countries eligible to SPP had a crowding-in effect on noneligible foreign students.
    Keywords: International Migration;Students;Visa Policy;Information
    JEL: F22 H52 I23 O15
    Date: 2023–03
  30. By: Pierre-Carl Michaud (HEC Montreal); Pascal St-Amour (University of Lausanne - School of Economics and Business Administration (HEC-Lausanne); Swiss Finance Institute)
    Abstract: Annuities, long-term care insurance and reverse mortgages remain unpopular to manage longevity, medical and housing price risks after retirement. We analyze low demand using a life-cycle model structurally estimated with a unique stated-preference survey experiment of Canadian households. Low risk aversion, substitution between housing and consumption and low marginal utility when in poor health explain most of the reduced demand. Bequests motives are found to be a luxury good and play a limited role. The remaining disinterest is explained by information frictions and behavioural status-quo biases. We find evidence of strong spousal co-insurance motives motivating LTCI and of responsiveness to bundling with a near doubling of demand for annuities when reverse mortgages can be used to annuitize, instead of consuming home equity.
    Keywords: retirement wealth, insurance, health risk, housing risk
    JEL: J14 G52 G53
    Date: 2023–03
  31. By: Kyriacou, Andreas; Roca-Sagalés, Oriol
    Abstract: In this article we consider the impact on health care access and quality when decentralizing health spending down to local governments, based on data from 49 countries around the world over the period 1996 to 2015. Our empirical results, after controlling for a range of potentially confounding variables, indicate that decentralizing health spending is inimical to timely and effective health care. We moreover explore the role of two specific channels through which fiscal decentralization can undermine health outcomes namely, externalities and foregone economies of scale. We find that decentralizing health expenditure down to the local level may generate externalities to the detriment of health outcomes when it is accompanied by locally elected municipal politicians who are not subject to national parties. Our results also suggest that fiscal decentralization can improve health access and quality when two-thirds or more of the people in a country live in localities with more than 300, 000 inhabitants, implying that below this threshold economies of scale may be foregone.
    Keywords: fiscal decentralization; health decentralization; health care access and quality; local governments; economies of scale; externalities
    JEL: H11 H72 I18
    Date: 2023–02–01
  32. By: Bell, Jennifer (Bank of England); Battisti, Giuliana (Warwick Business School); Guin, Benjamin (Bank of England)
    Abstract: Shocks to energy prices can have a direct impact on homeowners’ disposable income, affecting their ability to pay their mortgage. Properties’ energy efficiency can provide some protection against the transition risk of rising energy costs. Anecdotally, lenders appear to be increasingly differentiating mortgage interest rates based on energy efficiency. But did lenders account for it before relevant regulatory interventions came in? We estimate standard mortgage pricing models using a unique data set of 1.8 million mortgages originated in the United Kingdom pre-2018. We find no evidence of lenders charging higher rates on riskier mortgages against energy-inefficient properties. Overall, our findings do not provide conclusive evidence that lenders took energy efficiency into account when setting interest rates prior to regulatory interventions.
    Keywords: Mortgage pricing; energy efficiency; climate change; transition risk
    JEL: G21 Q40
    Date: 2023–03–03
  33. By: José Liberti (De Paul University and Northwestern University); Jason Sturgess (Queen Mary University of London); Andrew Sutherland (MIT Sloan School of Management)
    Abstract: We use the introduction of a U.S. commercial credit bureau to study when lenders adopt voluntary information sharing technology and the resulting consequences for competition and credit access. Our results suggest that lenders trade off access to new markets against heightened competition for their own borrowers. Lenders that do not share initially lose borrowers to competitors that share, which ultimately compels them to share and leads to the formation of an information sharing system. We find access to credit improves but only for high-quality borrowers in markets with greater lender adoption. Our results offer the first direct evidence on when financial intermediaries adopt information sharing technologies and how sharing systems form and evolve.
    Keywords: information sharing, access to credit, financial intermediation, fintech, SMEs.
    JEL: G21 G23 G32
    Date: 2021–06–01
  34. By: Natee Amornsiripanitch
    Abstract: As the U.S. population ages and lifespans increase, it is important to understand how aging affects an individual’s ability to access credit. Older homeowners tend to have more financial resources and better credit scores than their younger counterparts, so one would expect that they could borrow more easily. But is that true? This brief, which is based on a recent paper, is the first of a two-part series that looks at the relationship between age and mortgage outcomes. This initial brief uses confidential Home Mortgage Disclosure Act (HMDA) data to study the relationship between age and the probability of being denied a mortgage application. The second brief will examine the relationship between age and the interest rate charged on mortgages. The discussion proceeds as follows. The first section briefly outlines the extent to which a borrower’s age can legally be considered in credit decisions. The second section describes the data, which focus on rate-and-term refinance mortgages for single applicants, and the methodology, which relates the probability of rejection to age and a host of control variables. The third section presents the results, which show that rejection rates rise consistently with age. And the magnitude is large; applications for the three oldest age groups are 1-3 percentage points more likely to be rejected than those of younger applicants. These numbers equal or exceed the marginal rejection rates for Black and Hispanic applicants. The fourth section offers some possible reasons for this relationship: the underwriters frequently cite “insufficient collateral, †but the underlying issue may be mortality risk, which is tightly associated with prepayment, default, and recovery risks. The final section concludes that while the relationship between age and rejection is large and robust, it does not necessarily indicate that lenders are violating fair lending legislation. First, the regulations allow lenders to consider borrower’s age under some circumstances. Second, although the equation controls for many observable characteristics, the results should be viewed as an association between age and rejection – not a causal relationship. Third, mortality risk has real economic implications for lenders for which they might require additional collateral. Regardless of the reason, however, it is important for older individuals to know that they are more likely to be denied credit.
    Date: 2023–02
  35. By: Rama K. Malladi (California State University, Dominguez Hills); Phillip Thompson (The Idaho Black History Museum)
    Abstract: As the United States is witnessing elevated racial differences pertaining to economic disparities, we have found a unique example contrary to the traditional narrative. Idaho is the only US state where Blacks earn more than Whites and all other races. In this paper, we examine how Idaho Blacks might have achieved economic success and, more importantly, what factors might have led to this achievement in reducing racial and economic disparities. Preliminary research suggests that fewer barriers to land ownership, smaller populations, well-knit communities, men's involvement in the family, and a relatively less hostile environment have played a significant role. Further research by historians can help the nation uncover the underlying factors to see if some factors are transportable to other parts of the country.
    Date: 2023–04
  36. By: Anna Vitoria Perico E Santos
    Abstract: Many factors influence students’ experiences in upper secondary education and beyond, including upper secondary curricula, programme design and support for students. But a good transition from earlier levels of education is the first, essential step in a successful journey through upper secondary education and into further education and/or employment. The design of transition systems can mitigate existing inequities in education, but it can also accentuate them. Transitions can also influence student well-being. They can have either a negative impact, for example through highly competitive systems that can be stressful for students and narrow their development, or a positive impact, for example by helping to construct young people’s sense of agency and ability to make informed decisions about their future. This paper looks at how countries manage students’ transition into upper secondary education and the main policy implications of each transition point and how they can influence student outcomes.
    Date: 2023–04–19
  37. By: Rauh, C.; Valladares-Esteban, A.
    Abstract: In the US economy, Black men, on average, receive lower wages than White men, and the difference increases over the working life. The employment rate and the number of hours worked are also lower for Blacks, but the gap is nearly constant. Together these facts suggest that on-the-job human capital accumulation might explain the diverging wages. However, the wage gap and its evolution over the lifecycle cannot be explained by differences in accumulated experience or educational attainment for the cohort we analyze. Instead, the combination of experience and test scores measured at ages 17-22 accounts for the wage gap and its growth. We propose an on-the-job human capital accumulation model with heterogeneity in the initial human capital endowment and the lifelong ability to accumulate human capital, and endogenous labor supply at the extensive and intensive margins to explain the evolution of the Black-White wage gap over the lifecycle. We discipline the distribution of the ability to accumulate human capital using the power of test scores to predict earnings growth in the data. We find that if the pre-market distributions were the same for Blacks and Whites, the racial gap in hourly earnings would be closed by 84%, with the remaining gap opening throughout life due to higher labor supply amongst White men. That is, the unequal conditions with which men in the two groups enter the labor market are likely to be the key determinant of the differences over the lifecycle.
    Keywords: Employment gap, Inequality, Labor supply decision, Lifecycle, Racial gap, Wage gap
    JEL: J15 J24 J31 J64
    Date: 2023–04–17
  38. By: Massimo Baldini; Andrea Barigazzi
    Abstract: This paper exploits an innovative data source, the surnames contained in local newspapers during almost a century in the Italian Province of Modena (NUTS-3 level), to study the phenomenon of social mobility over time. Based on the hypothesis that the surnames that appear in the newspapers have a particular social relevance, the study of changes in the frequency distribution of the set of surnames over time allows to identify periods of greater or lower social mobility. The results show that the periods of greatest change have been the years of transition between democracy and the fascist regime and vice versa, and the 1980s. A strong regression towards the mean in the relative importance of surnames is also observed.
    Date: 2023–04
  39. By: Lipman, Timothy PhD; Rogers, Emily MS
    Abstract: Transit bus operations in California are experiencing new challenges due to economic conditions and the ongoing global pandemic. A confluence of factors has created a focus on this critical public-needs serving industry, due to state and local efforts to reduce emissions of pollutants and climate-changing gases. Transit bus operations in California provide essential and additional useful services that offer critical mobility to needy populations (elderly and handicapped) as well as many other groups for whom transit buses provide the most economical, convenient, and low-emission options. To address the role of transit bus operations in meeting California’s aggressive greenhouse gas (GHG) and emissions, the California Air Resources Board (ARB) has implemented an ambitious Innovative Clean Transit (ICT) regulation that requires all public transit agencies to gradually transition to a 100 percent zero-emission bus (ZEB) fleet.1 Beginning in 2029, 100% of new purchases by transit agencies must be ZEBs, with a goal for a full transition by 2040. Prior to that 25% of purchases of new buses must be ZEBs in 2023-2025 for large transit agencies, rising to 50% in 2026-2028. For smaller transit agencies, defined as those with less than 100 buses in annual maximum service, there is no requirement for 2023-2025 and the requirement for 2026-2028 is 25%, but the 100% ZEB purchase requirement starting in 2029 applies to all agencies.
    Keywords: Engineering, Zero emission vehicles, transit buses, greenhouse gases, electric vehicle charging, bus transit operations
    Date: 2023–04–01
  40. By: Felix Holub; Beate Thies
    Abstract: Highly skilled knowledge workers are important drivers of innovation and long-run growth. We study how air quality affects productivity and work patterns among these workers, using data from GitHub, the world’s largest coding platform. We combine panel data on daily output, working hours, and task choices for a sample of 25, 000 software developers across four continents during the period 2014-2019 with information on concentrations of fine particulate matter (PM2.5). An increase in air pollution reduces output, measured by the number of total actions performed on GitHub per day, and induces developers to adapt by working on easier tasks and by ending work activity earlier. To compensate, they work more on weekends following high-pollution days, which suggests adverse impacts on their work-life-balance. The decline in output arises even at concentrations in line with current regulatory standards in the EU and US and is driven by a reduction in individual coding activity, while interactive activities are unaffected. Exposure to PM2.5 levels above the city-specific 75th percentile reduces daily output quantity by 4%, which translates into a loss in output value by approximately $11 per developer.
    Keywords: Air pollution, Productivity, High-skilled work, Adaptation, GitHub
    JEL: D24 J22 J24 L86 Q52 Q53
    Date: 2023–03
  41. By: Christian Bontemps; Cristina Gualdani; Kevin Remmy
    Abstract: We develop a two-stage game in which competing airlines first choose the networks of markets to serve in the first stage before competing in price in the second stage. Spillovers in entry decisions across markets are allowed, which accrue on the demand, marginal cost, and fixed cost sides. We show that the second-stage parameters are point identified, and we design a tractable procedure to set identify the first-stage parameters and to conduct inference. Further, we estimate the model using data from the domestic US airline market and find significant spillovers in entry. In a counterfactual exercise, we evaluate the 2013 merger between American Airlines and US Airways. Our results highlight that spillovers in entry and post-merger network readjustments play an important role in shaping post-merger outcomes.
    Keywords: Endogenous Market Structure, Networks, Airlines, Oligopoly, Product Repositioning, Mergers, Remedies
    JEL: D43 L14 L22 L40 L93
    Date: 2023–03
  42. By: Sumon Bhaumik (Management School, University of Sheffield, Sheffield S10 1FL, UK; IZA – Institute of Labor Economics, Bonn, Germany; Global Labor Organization, Germany); Subhasish M. Chowdhury (Department of Economics, University of Sheffield, Sheffield S1 4DT, UK.); Ralitza Dimova (Global Development Institute, University of Manchester, Manchester M13 9PL, UK; IZA – Institute of Labor Economics, Bonn, Germany; Global Labor Organization, Germany); Hanna Fromell (Department of Economics and Business Economics, Aarhus University, 8210 Aarhus V, Denmark.)
    Abstract: We investigate experimentally the effects of information about native/immigrant identity, and the ability to communicate a self-chosen personal characteristic towards the rival on conflict behavior. In a two-player individual contest with British and Immigrant subjects in the UK we find that neither information about identity nor communicating self-characteristics significantly affect the average level of conflict. Both of those, however, significantly affect players’ strategies, in the sense of the extent they involve conflict over time. Overall, the results indicate that inter-personal communication may help to mitigate high intensity conflicts when the identities are common knowledge among rivals.
    Keywords: Commodity taxation; Experiment; Identity; Immigrant; Communication
    JEL: C72 C91 D72
    Date: 2023–04
  43. By: Victor P. Seidel; Christoph Riedl
    Abstract: Online innovation communities allow for a search for novel solutions within a design space bounded by constraints. Past research has focused on the effect of creative constraints on individual projects, but less is known about how constraints affect learning from repeated design submissions and the effect of the technical constraints that are integral to online platforms. How do creative versus technical constraints affect individual learning in exploring a design space in online communities? We analyzed ten years of data from an online innovation community that crowdsourced 136, 989 design submissions from 33, 813 individuals. We leveraged data from two types of design contests-creatively constrained and unconstrained-running in parallel on the platform, and we evaluated a natural experiment where a platform change reduced technical constraints. We find that creative constraints lead to high rates of learning only if technical constraints are sufficiently relaxed. Our findings have implications for the management of creative design work and the downstream effects of the technical constraints of the information systems that support online innovation communities.
    Date: 2023–03
  44. By: Shamima VAWDA; Mélani PRINSLOO; Martin PRINSLOO; Rawane YASSER
    Abstract: The study aims to contribute to the body of knowledge on the impact of social protection and employment stimulus measures on the formal and informal economies, by exploring shifts in purchasing behaviour between 2019 and 2022 among informal and small traders in a 3.5 km radius around Stock Road in Philippi in the Western Cape.We investigate the spending patterns of 30 social relief distress (SRD) grant recipients and 31 basic education employment initiative (BEEI) participants in the same area in order to reveal that the main linkage between formal and informal economies are hybrid wholesalers and supermarkets.
    Keywords: Afrique du Sud
    JEL: Q
    Date: 2023–03–22
  45. By: Zhou, Renee (University of Warwick)
    Abstract: To test whether education can change risk preference, I exploit the Indonesian school construction programme and the Mexican education reform in compulsory schooling as two separate natural experiments. Applying the instrumental variable approach, I do not find a causal effect of education on risk preference. The results are consistent in the two different settings, so my findings are externally valid. The results suggest that a change in risk preference may not be the channel via which the impact of education on risk-taking in real life. This paper contributes to the literature on the determinants of social preferences and the outcomes of education.
    Keywords: Risk preference ; risk aversion ; education JEL classifications: I25 ; D90
    Date: 2023
  46. By: Carrieri, Vincenzo (University of Calabria); Davillas, Apostolos (University of Macedonia); de Oliveira, Victor Hugo (Instituto de Pesquisa e Estratégia Econômica do Ceará (IPECE))
    Abstract: Using administrative DVLA data matched with micro-data from Understanding Society – the UK Household Longitudinal Study we estimate income-related inequalities in ownership of vehicles with a set of safety features and we apply a regression-based decomposition method for rank-dependent inequality measures to estimate the source of inequalities. We find systematic pro-rich inequalities in ownership of passively safer vehicles that are almost entirely explained by the characteristics of the vehicles, mainly their price and year of manufacture. A wide range of variables measured at the household level including demographics, risk aversion and time preference proxies, personality traits, cognitive ability, and education plays a much less pronounced and, in most cases, non-statistically significant contribution to overall inequality. These findings reveal inequity in access to passively safer vehicles with potential effects on the socio-economic gap in road-traffic injuries and mortality rates, requiring regulatory intervention.
    Keywords: income inequalities, car's safety, concentration indexes, United Kingdom
    JEL: I10 I14 R41
    Date: 2023–03

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