nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2023‒08‒21
seventy papers chosen by
Steve Ross, University of Connecticut

  1. How Do Students Value an Elite Education? Evidence on Residential Location and Applications to NYC Specialized Schools By Lawrence Costa; JJ Naddeo
  2. White Flight from Asian Immigration: Evidence from California Public Schools By Leah Platt Boustan; Christine Cai; Tammy Tseng
  3. Local labor markets as a taxable location factor? Evidence from a shock to foreign labor supply By Nover, Justus
  4. Ethnic differences in intergenerational housing mobility in England and Wales By Buscha, Franz; Gorman, Emma; Sturgis, Patrick; Zhang, Min
  5. Immigrant–native Differentials in Commuting and Residential Preferences in Japan By LIU Yang; KONDO Keisuke
  6. Remote Work and City Structure By Ferdinando Monte; Charly Porcher; Esteban Rossi-Hansberg
  7. Contacts Between Locals and Migrants Among Chinese Youth: Out-group Bias and Familial Transmission By Timo Heinrich; Jason Shachat; Qinjuan Wan
  8. Sibling Spillovers May Enhance the Efficacy of Targeted School Policies By David Figlio; Krzysztof Karbownik; Umut Özek; David N. Figlio
  9. The geography of environmental innovation: a rural/urban comparison By Danielle Galliano; Simon Nadel; Pierre Triboulet
  10. What's in a Label? On Neighbourhood Labelling, Stigma and Housing Prices By Andersson, Henrik; Blind, Ina; Brunåker, Fabian; Dahlberg, Matz; Fredriksson, Greta; Granath, Jakob; Liang, Che-Yuan
  11. The Spatial Distribution of Stigmatized Properties in Tokyo, Japan By Naonari Yajima; Taisuke Sadayuki
  12. Do Primary Healthcare Facilities in More Remote Areas Provide More Medical Services? Spatial Evidence from Rural Western China By Shen, Chi; Lai, Sha; Deng, Qiwei; Cao, Dan; Zhao, Dantong; Zhao, Yaxin; Zhou, Zhongliang; Dong, Wanyue; Chen, Xi
  13. Anti-mafia policies and public goods in Italy By Stefania Fontana
  14. Global house prices since 1950 By Haroon Mumtaz; Roman Sustek
  15. Capital Shocks and UK Regional Divergence By Michiel Daams; Philip McCann; Paolo Veneri; Richard Barkham
  16. Extended School Day and Teenage Fertility in Dominican Republic By Santiago Garganta; María Florencia Pinto; Joaquín Zentner
  17. The Profit Motive in the Classroom – Friend or Foe? By Henrekson, Magnus; Elert, Niklas
  18. The Age of Mass Migration in Argentina: Social Mobility, Effects on Growth, and Selection Patterns By Federico Droller; Martin Fiszbein; Santiago Pérez
  19. Do Primary Healthcare Facilities in More Remote Areas Provide More Medical Services? Spatial Evidence from Rural Western China By Shen, Chi; Lai, Sha; Deng, Qiwei; Cao, Dan; Zhao, Dantong; Zhao, Yaxin; Zhou, Zhongliang; Dong, Wanyue; Chen, Xi
  20. Can we promote plural local pathways to sustainable development? Insights from the implementation of Wales’s Future Generations Act By Carter, Isabelle; MacKillop, Eleanor
  21. State of Urbanization in Nepal: The Official Definition and Reality By Bhattarai, Keshav; Adhikari, Ambika P.; Gautam, Shiva
  22. How Much Should We Trust Regional-Exposure Designs? By Jeremy Majerovitz; Karthik Sastry
  23. Do Slow Streets Encourage More Dockless Travel? Evidence from Electric Scooter Usage in Four Cities By Boarnet, Marlon G; Lee, Seula; Gross, James; Thigpen, Calvin
  24. Crossing Boundaries and Time: An Exploration of Time Allocation, Emotional Well-Being of Immigrants in the United States By Coniglio, Nicola Daniele; Hoxhaj, Rezart; Lagravinese, Raffaele
  25. Teachers' desired mobility to disadvantaged schools: Do financial incentives matter? By J. SILHOL; L. WILNER
  26. The long-term integration of refugee children:Swedish experiences after the Yugoslav Wars By Åslund, Olof; Liljeberg, Linus; Roman, Sara
  27. Communal lands and social capital: A case study By Oto-Peralías, Daniel
  28. To Own or to Rent? The Effects of Transaction Taxes on Housing Markets By Lu Han; L. Rachel Ngai; Kevin D. Sheedy
  29. Virtual Charter Students Have Worse Labor Market Outcomes as Young Adults By Paul Y. Yoo; Thurston Domina; Andrew McEachin; Leah Clark; Hannah Hertenstein; Andrew M. Penner
  30. Can Information and Alternatives to Irregular Migration Reduce "Backway" Migration from The Gambia? By Bah, Tijan L.; Batista, Catia; Gubert, Flore; McKenzie, David
  31. Does inter-municipal cooperation increase efficiency? Evidence from Italy By Giuseppe Gori; Patrizia Lattarulo; Francesco Porcelli; Leonzio Rizzo; Riccardo Secomandi
  32. Consumption Zones By Andrea Batch; Benjamin R. Bridgman; Abe C. Dunn; Mahsa Gholizadeh
  33. Proxying the socio-economic background through real estate values. An application on performances of university students By Giovanni Gallo; Claudia Garofoli
  34. Transitions into home ownership: a quantitative assessment By Whelan, Stephen; Atalay, Kadir; Barrett, Garry; Cigdem, Melek; Edwards, Rebecca
  35. Preferences over the Racial Composition of Neighborhoods: Estimates and Implications By Morris A. Davis; Jess Gregory; Daniel Hartley
  36. Frontier workers, and the seedbeds of inequality and prosperity By Connor, Dylan Shane; Kemeny, Tom; Storper, Michael
  37. The Local Origins of Business Formation By Emin Dinlersoz; Timothy Dunne; John Haltiwanger; Veronika Penciakova
  38. The paradoxical role of social class background in the educational and labour market outcomes of the children of immigrants in the UK By Zuccotti, Carolina V.; Platt, Lucinda
  39. Remote Work, Foreign Residents, and the Future of Global Cities By Pedro Teles; João Guerreiro; Sérgio Rebelo
  40. School Choice and Private Tutoring By Hiroki Tanaka; Masaya Yasuoka
  41. Homeownership rates, housing policies, and co-residence decisions By Grevenbrock, Nils; Ludwig, Alexander; Siassi, Nawid
  42. Education and social mobility By Holmlund, Helena; Nybom, Martin
  43. Images Say More than Just Words: Effectiveness of Visual and Text Communication in Dispelling the Rent-Control Misconception By Jordi Brandts; Isabel Busom; Cristina Lopez-Mayan; Judith Panadés
  44. Natural Resources, Demand for Skills, and Schooling Choices By Aline Bütikofer; Antonio Dalla-Zuanna; Kjell G. Salvanes
  45. Job Displacement and Migrant Labor Market Assimilation By Maria Balgova; Hannah Illing
  46. Favoritism by the governing elite By Asatryan, Zareh; Baskaran, Thushyanthan; Birkholz, Carlo; Hufschmidt, Patrick
  47. Moonshot: Public R&D and Growth By Shawn Kantor; Alexander T. Whalley
  48. Mineral resources and the salience of ethnic identities By Nicolas Berman; Mathieu Couttenier; Victoire Girard
  49. Exploring the link between diversification strategy and economic performance in the Moroccan real estate sector: A Data Envelopment Analysis approach By Prof. Saadi, T
  50. Importer Dynamics: Do Peers Matter? By Gregory Corcos; Stefanie Haller
  51. Education and Later-life Mortality: Evidence from a School Reform in Japan By Kazuya Masuda; Hitoshi Shigeoka
  52. Access to Guns in the Heat of the Moment: More Restrictive Gun Laws Mitigate the Effect of Temperature on Violence By Jonathan Colmer; Jennifer L. Doleac
  53. Identifying Partisan Gerrymandering and Its Consequences: Evidence from the 1990 US Census Redistricting By Navid Sabet; Noam Yuchtman
  54. Femicide Rates in Mexican Cities along the US-Mexico Border By Pedro H. Albuquerque; Prasad R. Vemala
  55. Inside household debt: disentangling mortgages and consumer credit, and household and bank factors. Evidence from Italy By Massimiliano Affinito; Raffaele Santioni; Luca Tomassetti
  56. The integration of migrants in the German labor market: Evidence over 50 years By Berbée, Paul; Stuhler, Jan
  57. Complementarities between local public and private investment in EU regions By Brasili, Andrea; Brasili, Cristina; Musto, Giorgio; Tueske, Annamaria
  58. The Finance-Dominated Accumulation Regime & the Future of Work in the Post-COVID World By Gouzoulis, Giorgos; Stockhammer, Engelbert
  59. Tracking when Ranking Matters By Fanny Landaud; Éric Maurin
  60. Higher income individuals are more generous when local economic inequality is high By Suss, Joel H.
  61. Do fiscal rules reduce public investment? Evidence from European regions By Mühlenweg, Leonard; Gerling, Lena
  62. Difference-in-differences with Economic Factors and the Case of Housing Returns By Jiyuan Huang; Per Östberg
  63. E-bike Incentive Programs Reduce GHGs and Support Recreational Travel By Fitch-Polse, Dillon; Johnson, Nicholas; Handy, Susan
  64. The Linear Algebra of Economic Geography Models By Benny Kleinman; Ernest Liu; Stephen J. Redding
  65. Developing a Youth Labour Market Index for South Africa at the sub-national level By Gibson Mudiriza; Joanna Grotte; Ariane De Lannoy; Anda David; Murray Leibbrandt
  66. Sustainable Urban Resilience: Cities in the face of modern challenges. Case study: The city of Elliniko-Argyroupoli, Greece By Mitoula, Roido; Gkagkosi, Natalia
  67. Racial Discrimination in Child Protection By E. Jason Baron; Joseph J. Doyle Jr.; Natalia Emanuel; Peter Hull; Joseph P. Ryan
  68. Health literacy: another way of measuring housing quality By Fijalkow, Yankel; Wilson, Yaneira
  69. College Students' Social Capital and Their Perceptions of Local and National Cohesion By Rodríguez-Planas, Núria; Secor, Alan
  70. How institutions shape the economic returns of public investment in European regions By Kerui Du; Luis Orea; Inmaculada C. Alvarez

  1. By: Lawrence Costa (Federal Housing Finance Agency); JJ Naddeo (Georgetown University)
    Abstract: Are students willing to endure long commutes for access to good schools? Using New York City Department of Education administrative data matched with Google transit directions, we find that longer commutes from home markedly deter students from applying to even the most elite high schools. For the top public school in New York State, a student with a 20 minute commute is 74% more likely to apply than one who lives 40 minutes away. For two other schools above the 99th percentile of performance, the differences are 234% and 137%. We also find that eighth grade exam scores relate to how well students understand the admissions process. As far as we are aware, we are the first to have the required location precision to track specific commutes for individual high school students. From a policy perspective, our findings imply that – while expanded school choice may be desirable – housing access near good schools is quite important.
    Keywords: education, school choice, housing access
    JEL: I20 R20 R21
  2. By: Leah Platt Boustan; Christine Cai; Tammy Tseng
    Abstract: Asian Americans are the fastest-growing racial group in the US but we know little about how Asian immigration has affected cities, neighborhoods and schools. This paper studies white flight from Asian arrivals in high-socioeconomic-status Californian school districts from 2000-2016 using initial settlement patterns and national immigrant flows to instrument for entry. We find that, as Asian students arrive, white student enrollment declines in higher-income suburbs. These patterns cannot be fully explained by racial animus, housing prices, or correlations with Black/Hispanic arrivals. Parental fears of academic competition may play a role.
    JEL: R23
    Date: 2023–07
  3. By: Nover, Justus
    Abstract: This paper examines how municipal taxes respond to the local impact of a labor market shock. The analysis exploits a commuting policy that liberalized cross-border labor markets between Switzerland and the EU. The reform was implemented at a time of skilled labor shortages and led to a substantial inflow of cross-border workers into Swiss border municipalities. Identification rests on exogenous regional variation in treatment intensities based on commuting times. The results show that corporate tax changes are significantly larger than zero in highly-treated border municipalities after the reform and when compared to less-affected regions. This is consistent with the theory according to which governments can tax rents that arise from productive location factors - an interpretation supported by several model extensions and robustness tests. The results on personal income taxation indicate a similar yet smaller and lagged response.
    Keywords: productive amenities, agglomeration, cross-border commuting, skill shortage, tax competition, Swiss-EU agreement
    JEL: H71 R23
    Date: 2023
  4. By: Buscha, Franz; Gorman, Emma; Sturgis, Patrick; Zhang, Min
    Abstract: Home ownership is the largest component of wealth for most households and its intergenerational transmission underpins the production and reproduction of economic inequalities across generations. Yet, little is currently known about ethnic differences in the intergenerational transmission of housing tenure. In this paper we use linked Census data covering 1971-2011 to document rates of intergenerational housing tenure mobility across ethnic groups in England and Wales. We find that while home ownership declined across all ethnic groups during this period, there were substantial differences between them. Black, Pakistani and Bangladeshi households experienced the strongest intergenerational link between parent and child housing tenure, and Black individuals had the highest rates of downward housing mobility. In contrast, those of Indian origin had homeownership rates similar to White British families, and a weaker link between parent and child housing tenure. These patterns are likely to exacerbate existing gradients in other dimensions of ethnicity-based inequality, now and in the future.
    Keywords: housing, social mobility, wealth transmission, ethnicity
    JEL: J62 I24 R31 P46
    Date: 2023
  5. By: LIU Yang; KONDO Keisuke
    Abstract: Several studies have examined immigrants’ labor force participation and economic outcomes and highlighted immigrants’ geographic behaviors in host countries; however, Japanese cases remain unexplored. This study provides novel evidence of the immigrant–native differentials in commuting and residential preferences in Japan. This study uses individual data from the 2010 Population Census. Controlling for individual characteristics, employment status, regions, industries, and occupations, we observe that the gender gap in commuting distance is much smaller for immigrants than for the Japanese natives. Among married couples, male immigrants commute significantly shorter distances than native males. No significant differences exist in commuting distance between female immigrants and natives. While analyzing residential preferences, we find that immigrants who have lived in Japan for 5 years or more tend to reside in areas with a higher population density than those who have lived for less than 5 years. Immigrant–native differentials in residential preferences differ according to home countries. The result contributes to the literature on immigrant economic integration. Further, it provides empirical evidence for policies that address the labor shortage problem in Japan.
    Date: 2023–08
  6. By: Ferdinando Monte; Charly Porcher; Esteban Rossi-Hansberg
    Abstract: We study the adoption of remote work within cities and its effect on city structure and welfare. We develop a dynamic model of a city in which workers can decide to work in the central business district (CBD) or partly at home. Working in the CBD allows them to interact with other commuters, which enhances their productivity through a standard production externality, but entails commuting costs. Switching between modes of labor delivery is costly, and workers face idiosyncratic preference shocks for remote work. We characterize the parameter set in which the city exhibits multiple stationary equilibria. Within this set, a coordination mechanism can lead to stationary equilibria in which most workers commute or most of them work partially from home. In these cases, large shocks in the number of commuters, like the recent lockdowns and self-isolation generated by the COVID-19 pandemic, can result in dynamic paths that make cities converge to a stationary equilibrium with large fractions of remote workers. Using cell-phone-based mobility data for the U.S., we document that although most cities experienced similar reductions in CBD trips during the pandemic, trips in the largest cities have stabilized at levels that are only about 60% of pre-pandemic levels. In contrast, smaller cities have, on average, returned to pre-pandemic levels. House price panel data by city show consistent changes in house price CBD-distance gradients. We estimate the model for 274 U.S. cities and show that cities that have stabilized at a large fraction of remote work are much more likely to have parameters that result in multiple stationary equilibria. Our results imply welfare losses in these cities that average 2.7%.
    JEL: D24 J22 J23 J61 O33 R32
    Date: 2023–07
  7. By: Timo Heinrich (Hamburg University of Technology); Jason Shachat (Durham University Business School and Wuhan University); Qinjuan Wan (Central China Normal University)
    Abstract: Conficts between local and migrant populations have been ubiquitous in modern China. We examine the longer-term potentials for resolution through inter-group contact and persistence through the inter-generational transmission of preferences. Public schooling in Chinese cities provides one of the largest interventions for children with diferent group identities to interact extensively. We adopt the perspective that in- and out-group biased behavior structurally arises from group-conditional social preferences. By conducting experiments consisting of binary dictator allocation tasks in schools in a Chinese city, we can analyze how integrated schooling shapes the respective behavior. Surprisingly, we do not observe any negative out-group bias. In fact, local students exhibit a positive out-group bias by choosing sharing behavior more toward migrant than other local peers. This sharing behavior is most prevalent among primary school cohorts. We also do not fnd a higher prevalence of out-group bias among parents. However, parents make more envious choices, highlighting the potential for broader positive efects of schooling. In addition, we fnd strong evidence for the inter-generational transmission of preferences. Overall, these fndings suggest that more directed eforts to establish contact between locals and migrants may be successful in overcoming the confict.
    Keywords: social preferences, group identity, out-group bias, Chinese youth, migration
    JEL: C91 D92 M11
    Date: 2023
  8. By: David Figlio; Krzysztof Karbownik; Umut Özek; David N. Figlio
    Abstract: Public policies often target individuals but within-family externalities of such interventions are understudied. Using a regression discontinuity design, we document how a third grade retention policy affects both the target children and their younger siblings. The policy improves test scores of both children while the spillover is up to 30% of the target child effect size. The effects are particularly pronounced in families where one of the children is disabled, for boys, and in immigrant families. Candidate mechanisms include improved classroom inputs and parental school choice.
    Keywords: grade retention, sibling spillovers, policy externalities, test scores
    JEL: D13 I20 J13
    Date: 2023
  9. By: Danielle Galliano (AGIR - AGroécologie, Innovations, teRritoires - Toulouse INP - Institut National Polytechnique (Toulouse) - UT - Université de Toulouse - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Simon Nadel (CLERSÉ - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - CNRS - Centre National de la Recherche Scientifique); Pierre Triboulet (AGIR - AGroécologie, Innovations, teRritoires - Toulouse INP - Institut National Polytechnique (Toulouse) - UT - Université de Toulouse - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: This paper aims to contribute to enlarge a geography of eco-innovation. The objective is to study what kind of spatial externalities (specialization, related and unrelated variety) has the most positive impact on eco-innovation, according to firm's location (rural, peri-urban, urban). We empirically test this framework using a hurdle negative binomial model on firm-level data drawn from the French Community Innovation Survey (CIS). The results show that spatial externalities have different effects depending on the firm's engagement and breadth of eco-innovation as well as on its location. Marshallian specialization has a positive effect both on engagement and breadth of eco-innovations unlike unrelated variety, which negatively impacts breadth of eco-innovation. With regard to the firm's location, related variety is particularly correlated with the eco-innovation breadth of rural firms, whereas specialization is positively correlated with the breadth of eco-innovations of peri-urban firms. As for urban firms, spatial externalities seem to have less impact on their eco-innovation related behavior.
    Keywords: Eco-innovation, spatial externalities, related variety, rural, French industry
    Date: 2023
  10. By: Andersson, Henrik; Blind, Ina; Brunåker, Fabian; Dahlberg, Matz; Fredriksson, Greta; Granath, Jakob; Liang, Che-Yuan
    Abstract: In an attempt to identify local areas at risk, the Swedish police classifies a selected set of marginalised neighbourhoods as ``vulnerable''. The classification, first used in 2015, spurs a lot of public debate, and have been hypothesised to shape the perception of localities, potentially stigmatising neighbourhoods. We study the short to long term effect on housing prices (up to six years) of the initial classification. Implicitly, we thereby study the effect of assigning negative labels to neighbourhoods, something that we believe is often an inherent part of area-based policies. Using the synthetic control method, we find that being labelled as vulnerable caused average housing prices in the designated neighbourhoods to drop with around 3.7% in the short run and about 6.5% in the long run. In line with ideas of racial stigma, we also find that areas with a larger share of minorities (pre-classification) where more negatively affected.
    Date: 2023–07–13
  11. By: Naonari Yajima (Faculty of Economics, Seijo University.); Taisuke Sadayuki (Faculty of Economics, Seijo University.)
    Abstract: While intangible yet psychologically repellent factors such as noise or pollutants require disclosure to potential buyers or renters in real estate transactions, the disclosure of a person's death within a building or unit remains uncertain. This uncertainty stems from the limited empirical research on incidents that are considered noteworthy, mainly due to the absence or limited availability of public databases pertaining to incidents that take place in living environments. In this article, we utilize a comprehensive database of incidents in the living environment, contributed by the public in Japan, to explore which types of incidents can be perceived as psychological defects. We find that suicides, homicides, fire deaths, alone deaths, discovery of a corpse, and accidental deaths are main interest of the public. Additionally, we examine the correlation between incident occurrences and socio-economic characteristics within a block. Â We find that the ratio of single-person household, ratio of elder persons, and ratio of person living in sharing housing are related to several incidents. On the contrary, the ratio of individuals residing in an area for a longer time is negatively or not related to the occurrence of such incidents.
    Keywords: Stigmatized property, Duty of disclosure, Posting information, Regression analysis
    JEL: R10 R12 R19
    Date: 2023–08
  12. By: Shen, Chi; Lai, Sha; Deng, Qiwei; Cao, Dan; Zhao, Dantong; Zhao, Yaxin; Zhou, Zhongliang; Dong, Wanyue; Chen, Xi
    Abstract: Primary healthcare institutions (PHIs) in China have experienced a sizable decline in medical services in recent years. Despite the large regional disparities in China, there is a lack of evidence on the differential patterns of medical services offered by PHIs, especially from a spatial perspective. This study examines whether residents in more remote areas use more medical services offered by township healthcare centers (THCs), a main type of PHIs. Linking medical visits to 923 THCs in a western Chinese province in 2020 with the driving time and geographic coordinates from the Gaode map, a leading map navigation provider in China, we applied a multilevel linear model and a geographically weighted regression to examine spatial heterogeneity in medical service utilization. We showed that a one-hour increase in the shortest driving time between THCs and the local county hospitals was associated with an average 6% increase in THCs outpatient visits and a 0.6% increase in THCs inpatient visits. Our findings suggest that THCs located in more remote areas provided more medical services, especially outpatient services.
    Keywords: Primary healthcare institutions, Spatial remote, Medical Service, China
    Date: 2023
  13. By: Stefania Fontana
    Abstract: This paper aims to evaluate the impact of the anti-mafia dismissal policy in municipal councils for mafia infiltration on the share of public goods in Italy. The implementation of policies aimed at reducing the mafia’s influence on local political bodies can improve the level of essential public goods that are relevant for social inclusion and regional development. The results suggest that during the years after a dismissal, municipalities devote more resources to public goods, with an estimated increase of approximately 5.3 pp. Notably, the effect seems to be driven by an increase in investment of approximately 5.4 pp, whereas the effect on consumption is uncertain. We therefore conclude that policies targeting the problem of criminal infiltration in local governments can improve socioeconomic conditions by enhancing the level of economically and socially relevant local public goods.
    Keywords: anti-mafia policies, mafia infiltration, public goods, local governments
    JEL: K42 H41 H75 D04
    Date: 2022–11
  14. By: Haroon Mumtaz (Queen Mary University of London); Roman Sustek (Queen Mary University of London; London School of Economics (LSE); Centre for Macroeconomics (CFM))
    Abstract: An asset valuation approach is applied to house prices in a sample of advanced economies. The price of housing services is determined by the housing stock, population and income per capita, while allowing for housing consumption heterogeneity across age groups. These fundamentals contain persistent predictable components inferred from data. Resulting shifts in expectations about the future values of these fundamentals generate sizable and persistent house price swings. The estimated model accounts well for house prices since 1950. It accounts for the boom starting in many countries in the early 1990s as well as for the spectacular boom and bust in Japan. A decomposition into the contributing factors is carried out.
    Keywords: House prices, asset pricing, expectations, fundamentals, demographics
    JEL: E20 G12 G50 J11 R21
    Date: 2023–02
  15. By: Michiel Daams (University of Groningen); Philip McCann (Alliance Manchester Business School, The University of Manchester and The Productivity Institute); Paolo Veneri (OECD, Paris and GSSI, Italy); Richard Barkham (CBRE, Dallas)
    Keywords: real estate investment, UK regions, productivity
    Date: 2023–07
  16. By: Santiago Garganta (CEDLAS-IIE-FCE-UNLP & CONICET); María Florencia Pinto (CEDLAS-IIE-FCE-UNLP); Joaquín Zentner (Inter-American Development Bank)
    Abstract: This paper investigates the potential impact of extended school days in reducing teenage fertility. We study the Jornada Escolar Extendida program, which doubled the school-day length from 4 to 8 hours in the Dominican Republic, and exploit the geographic and time variation induced by its gradual implementation. We find evidence that a higher exposure to JEE in the municipality, measured as the percentage of secondary students covered by the program, reduces the incidence of teenage pregnancies, and that the effect is stronger after the program has reached at least half of secondary students in the municipality. The estimates are robust to various specifications and alternative checks. These results suggest that extended school-day policies can have spillover effects regarding teenagers’ fertility choices.
    JEL: O1 I31 I24
    Date: 2023–08
  17. By: Henrekson, Magnus (Research Institute of Industrial Economics); Elert, Niklas (IFN - Research Institute of Industrial Economics)
    Abstract: Can competition and the existence of profit-seeking actors in the school market improve educational quality? To see cost-efficient, long-term improvements, we identify the school system's capacity for knowledge-enhancing innovation as crucial and explore this question by examining Swedish tax-financed schooling. The Swedish school system was marketized in the early 1990s to an unparalleled degree but has only seen modest (if any) educational gains. This lack of progress is puzzling considering evidence from regular markets that competition and the presence of for-profit actors should spur innovation. Our analysis suggests that these factors are necessary but not sufficient conditions for innovation, tracing the obstacles to innovation in the Swedish school quasi-market to three sub-par institutional conditions. Together, they result in a significant epistemic problem, which impedes the beneficial effects of competition and the profit-motive. First, the view of knowledge (institutionalized in national curricula) does not entrust teachers with a real, knowledge-promoting mission. Second, the design of the grading system makes grades unreliable measures of knowledge, making it difficult for schools to compete and for users to choose along this dimension. Third, the information provided to users is insufficient and overly complicated, meaning user choice is less informed than it should be. Institutional reforms that improve actors' epistemic positions along these margins could improve the situation, paving the way for innovation and long-term improvements.
    Keywords: for-profit schools, innovation, marketized education, quasi-markets, school choice, view of knowledge
    JEL: H42 H44 H75 I22 I28 L88 O31
    Date: 2023–07
  18. By: Federico Droller; Martin Fiszbein; Santiago Pérez
    Abstract: Argentina was the second largest destination country during the Age of Mass Migration, receiving nearly six million migrants. In this article, we first summarize recent findings characterizing migrants’ long-term economic assimilation and their contributions to local economic development. The reviewed evidence shows that Europeans experienced rapid upward mobility in Argentina and immigration contributed positively to the process of economic development. We then turn our focus to the selection patterns of Italian migrants to Argentina—the largest migratory group to this destination. Our analysis of this initial stage of the migrants’ history shows that Italians who moved to Argentina were positively selected on the basis of literacy, complementing existing evidence of rapid upward mobility and contribution to growth at destination.
    JEL: F22 J61 J62 N36
    Date: 2023–07
  19. By: Shen, Chi (Xi’an Jiaotong University); Lai, Sha (Xi’an Jiaotong University); Deng, Qiwei (Xi’an Jiaotong University); Cao, Dan (Xi’an Jiaotong University); Zhao, Dantong (Xi’an Jiaotong University); Zhao, Yaxin (Xi’an Jiaotong University); Zhou, Zhongliang (Xi’an Jiaotong University); Dong, Wanyue (Nanjing University of Chinese Medicine); Chen, Xi (Yale University)
    Abstract: Primary healthcare institutions (PHIs) in China have experienced a sizable decline in medical services in recent years. Despite the large regional disparities in China, there is a lack of evidence on the differential patterns of medical services offered by PHIs, especially from a spatial perspective. This study examines whether residents in more remote areas use more medical services offered by township healthcare centers (THCs), a main type of PHIs. Linking medical visits to 923 THCs in a western Chinese province in 2020 with the driving time and geographic coordinates from the Gaode map, a leading map navigation provider in China, we applied a multilevel linear model and a geographically weighted regression to examine spatial heterogeneity in medical service utilization. We showed that a one-hour increase in the shortest driving time between THCs and the local county hospitals was associated with an average 6% increase in THCs outpatient visits and a 0.6% increase in THCs inpatient visits. Our findings suggest that THCs located in more remote areas provided more medical services, especially outpatient services.
    Keywords: primary healthcare institutions, spatial accessibility, disparities, medical service, China
    JEL: I11 I14 I18 R53
    Date: 2023–07
  20. By: Carter, Isabelle; MacKillop, Eleanor
    Abstract: This paper examines the implementation of the Well-being of Future Generations (Wales) Act 2015, the first and only piece of legislation to codify the United Nation’s Sustainable Development Goals in law. The paper provides empirical analysis of the implementation of this legislation based on 16 semi-structured interviews with stakeholders across Wales. The analysis explores whether the Act can deliver spatial justice in Wales through its novel and place-based approach to sustainable development. We examine how the Act has been implemented at different spatial scales–the local, the regional and the national–and how the differences in the way it is interpreted by actors at these different levels influences the extent to which spatial justice is realised in its implementation.
    Keywords: policy implementation; spatial justice; sustainable development; Wales; well-being; ES/R00384X/1; Cardiff University who fund the Wales Centre for Public Policy
    JEL: J50
    Date: 2023–06–09
  21. By: Bhattarai, Keshav; Adhikari, Ambika P. (Institute for Integrated Development Studies (IIDS)); Gautam, Shiva
    Abstract: Nepali government’s official delineation of several human settlements as new urban areas has been questionable because many important criteria such as urban infrastructure and services, open space, population density and economic viability are not thoroughly analyzed while defining what is urban. Many settlements in Nepal officially defined as urban, often driven by political considerations, are operating in the rural framework forming ruralopolises. This paper analyzes various criteria needed for defining urbanization that are internationally accepted to assess Nepal’s official definition of urban settlements. Urban areas have been expanding in Nepal at the cost of agricultural, forest, and shrubland land uses. Undulated landscape, low density population, and lack of road infrastructure, among other factors, have limited the expansion of urban areas in the mountainous region. To develop a sustainable urban development plan, this paper did detail land use and land cover analyses. Using 10 x 10 m sentinel satellite imagery, the paper presents detailed analyses of land use and cover changes from 2017 to 2021. These years are chosen because after the promulgation of the new constitution in 2015, rapid urbanization started, but its implementation state restructuring began only after 2017. The urban areas, as defined by the government, expanded rapidly in the Tarai and mid Hills regions from 23% in 2014 to 66% in 2017 and is expanding further.
    Date: 2023–07–21
  22. By: Jeremy Majerovitz; Karthik Sastry
    Abstract: Many prominent studies in macroeconomics, labor, and trade use panel data on regions to identify the local effects of aggregate shocks. These studies construct regional-exposure instruments as an observed aggregate shock times an observed regional exposure to that shock. We argue that the most economically plausible source of identification in these settings is uncorrelatedness of observed and unobserved aggregate shocks. Even when the regression estimator is consistent, we show that inference is complicated by cross-regional residual correlations induced by unobserved aggregate shocks. We suggest two-way clustering, two-way heteroskedasticity- and autocorrelation-consistent standard errors, and randomization inference as options to solve this inference problem. We also develop a feasible optimal instrument to improve efficiency. In an application to the estimation of regional fiscal multipliers, we show that the standard practice of clustering by region generates confidence intervals that are too small. When we construct confidence intervals with robust methods, we can no longer reject multipliers close to zero at the 95% level. The feasible optimal instrument more than doubles statistical power; however, we still cannot reject low multipliers. Our results underscore that the precision promised by regional data may disappear with correct inference.
    Keywords: applied econometrics; regional data; shift-share instruments
    JEL: C12 C18 C21 C23 C26 F16 R12
    Date: 2023–07–27
  23. By: Boarnet, Marlon G; Lee, Seula; Gross, James; Thigpen, Calvin
    Abstract: In the early stages of the COVID-19 pandemic, many cities across the US reallocated street spaces for active transportation such as walking, bicycling, and scootering, including by electric bikes and scooters. Slow Streets, projects that limit through-traffic access for motor vehicles to provide a safer space for other travelers, were implemented at an unprecedented speed and scale. This analysis of pandemic-era Slow Street dockless electric scooter (e-scooter) use offers insights that may assist decisionmakers. A research team at the University of Southern California collaborated with Lime, an e-scooter company, to analyze Slow Streets programs in the cities of Oakland, San Francisco, Los Angeles, and Portland. Using two statistical approaches, they examined dockless e-scooter travel at four different times of day and overall weekly and monthly averages of dockless e-scooter trips. This policy brief summarizes the findings from that research and provides policy implications. View the NCST Project Webpage
    Keywords: Social and Behavioral Sciences, Before and after studies, COVID-19, Scooters, Travel behavior, Urban design
    Date: 2023–08–01
  24. By: Coniglio, Nicola Daniele; Hoxhaj, Rezart; Lagravinese, Raffaele
    Abstract: This study investigates the emotional experiences of immigrants and native- born individuals in the United States, exploring the relationship between daily activities and feelings of happiness, stress, and meaningfulness. We analyze the entire range of daily activities and their durations, utilizing data from the American Time-Use Survey (ATUS) Well-Being modules. The results reveal that when viewed through the evaluation lenses of the general US population, immigrants engage in less happy, more stressful, and less meaningful activ- ities compared to natives. However, when considering subjective emotional assessments, immigrants are more optimistic and perceive these activities as associated with higher levels of happiness and meaningfulness. The study also finds evidence of emotional assimilation over time, with happiness disparities between immigrants and natives diminishing. However, this process appears incomplete for second-generation immigrants. The findings highlights the im- portance of recognizing the different perspectives of immigrants to formulate inclusive policies that facilitate integration.
    Keywords: Immigrants, TimeUse, Emotional Experiences, Assimilation, Well-Being
    JEL: J15 J22 I31 Z13
    Date: 2023
  25. By: J. SILHOL (Insee, AMSE); L. WILNER (Insee, Crest, Ined)
    Abstract: This paper exploits a 2018 reform of teachers' financial incentives to work in some French disadvantaged schools, and determines the role of incentives in teachers' stated preferences to move towards such schools based on this quasi-natural experiment. Using data from the internal human resource management of an educational authority, we find that most responsive teachers are less qualified, have less experience and are already working in such areas. Counterfactual simulations suggest that the policy has not hurt other disadvantaged schools, but rather induced some teachers not to remain in their current school or to opt less for regular schools.
    Keywords: Teacher mobility; Financial incentives; Stated preferences; Rank-ordered choices; Disadvantaged schools
    JEL: I21 I22 J45
    Date: 2023
  26. By: Åslund, Olof (Uppsala University, Department of Economics); Liljeberg, Linus (IFAU - Institute for Evaluation of Labour Market and Education Policy); Roman, Sara (IFAU - Institute for Evaluation of Labour Market and Education Policy)
    Abstract: We study the economic and social integration of refugee children. The analysis follows war refugees arriving from former Yugoslavia to Sweden in the early 1990s for up to 25 years. We find strong educational and economic integration, although differing by age at migration and gender. By contrast, segregation is striking in family formation. Those under 7 at migration had grades and high school completion on par with natives. Poor initial school performance among teenage refugees was partly compensated by education at higher ages. By 2019 there was on average full labor market assimilation among women while a small gap remained among men. However, refugees arriving before school start outperformed their native peers. Endogamy was common; even among preschoolers, 60–70 percent had their first child with a partner of Yugoslavian descent. Many of the partners migrated after the refugee had turned 20. Intermarriage is gendered and related to socioeconomic status. Residential and workplace segregation decreased over time but remained pronounced among people without tertiary education.
    Keywords: Refugee children; migrants; economic and social integration
    JEL: F22 J15 J18
    Date: 2023–06–27
  27. By: Oto-Peralías, Daniel (Universidad Pablo de Olavide)
    Abstract: This paper explores the link between the historical presence of communal goods and the emergence of social capital. I conduct a survey to compare individuals from a town where communal lands have persisted since medieval times with individuals from neighboring-similar towns. I find that individuals exposed to communal lands have higher local social capital as they trust their neighbors more, have more local altruism, are more interested in local politics, and have a better knowledge about the town’s politics and history. Importantly, the effect is mainly present in individuals with family roots in the town, and there is no evidence of a positive effect on social capital beyond the local community.
    Date: 2023–07–03
  28. By: Lu Han (University of Wisconsin-Madison); L. Rachel Ngai (London School of Economics (LSE); Centre for Macroeconomics (CFM)); Kevin D. Sheedy (London School of Economics (LSE); Centre for Macroeconomics (CFM))
    Abstract: Using sales and leasing data, this paper finds three novel effects of a higher property transaction tax: higher buy-to-rent transactions alongside lower buy-to-own transactions, despite both being taxed; lower sales-to-leases and price-to-rent ratios; and longer time-on-the-market. This paper explains these facts by developing a search model with entry of investors and households choosing to own or rent in the presence of credit frictions. A higher transaction tax reduces homeowners’ mobility and increases demand for rental properties, which reduces the homeownership rate. The deadweight loss is large at 113% of tax revenue, with more than half of this due to distorting decisions to own or rent.
    Keywords: rental market, buy-to-rent investors, homeownership rate, transaction taxes
    JEL: D83 E22 R21 R28 R31
    Date: 2023–06
  29. By: Paul Y. Yoo; Thurston Domina; Andrew McEachin; Leah Clark; Hannah Hertenstein; Andrew M. Penner
    Abstract: Virtual charter schools are increasingly popular, yet there is no research on the long-term outcomes of virtual charter students. We link statewide education records from Oregon with earnings information from IRS records housed at the U.S. Census Bureau to provide evidence on how virtual charter students fare as young adults. Virtual charter students have substantially worse high school graduation rates, college enrollment rates, bachelor's degree attainment, employment rates, and earnings than students in traditional public schools. Although there is growing demand for virtual charter schools, our results suggest that students who enroll in virtual charters may face negative long-term consequences.
    Date: 2023–06
  30. By: Bah, Tijan L. (World Bank); Batista, Catia (Nova School of Business and Economics); Gubert, Flore (IRD, DIAL, Paris-Dauphine); McKenzie, David (World Bank)
    Abstract: Irregular migration from West Africa to Europe across the Sahara and Mediterranean is extremely risky for migrants and a key policy concern. A cluster-randomized experiment with 3, 641 young men from 391 settlements in The Gambia is used to test three approaches to reducing risky migration: providing better information and testimonials about the risks of the journey, facilitating migration to a safer destination by providing information and assistance for migration to Dakar, and offering vocational skill training to enhance domestic employment opportunities. Current migration to Senegal was increased by both the Dakar facilitation and vocational training treatments, partially crowding out internal migration. The vocational training treatment reduced intentions to migrate the backway and the number of steps taken toward moving. However, the backway migration rate from The Gambia collapsed, even in the control group, resulting in no space for a treatment effect on irregular migration from any of the three interventions.
    Keywords: cash transfer, vocational training, information interventions, migration deterrence, irregular migration, randomized experiment
    JEL: O15 F22 J61
    Date: 2023–07
  31. By: Giuseppe Gori (Istituto Regionale di Programmazione Economica della Toscana - IRPET); Patrizia Lattarulo (Istituto Regionale di Programmazione Economica della Toscana - IRPET); Francesco Porcelli (Università degli Studi di Bari-Aldo Moro); Leonzio Rizzo (Università degli Studi di Ferrara & IEB); Riccardo Secomandi (Università degli Studi di Ferrara)
    Abstract: Evidence on the impact of municipal amalgamation and cooperation is mixed and most of the existing literature is focused on the effect on the cost per capita, which, however, is not sufficient to test for a potential increase in efficiency. Therefore, the evaluation of the impact on the physical output of municipal services is needed. This is why we use a panel dataset with all Italian municipalities, covering four years, with details on expenditure and output related to six different local services provided by municipalities. The first novelty of our work is including the local service dimension in the analysis. This dimension is extremely important to properly evaluate the impact of inter-municipal cooperation, which, differently from amalgamation, usually covers only some specific services. In our analysis, we exploit the fact that municipalities choose to enter a municipal association at different years. Therefore, we evaluate the impact of intermunicipal cooperation on per-capita expenditure and output by using the within variation in each municipality and municipal service. The second novelty is the use of specific indexes of direct output for the provided services. We find that inter-municipal cooperation decreases per capita expenditure leaving output unchanged, thus generating an increase in efficiency. Interestingly, when we concentrate the analysis on small municipalities with less than 3, 000 inhabitants, inter- municipal cooperation leads also to increase in output. We conclude that inter-municipal cooperation is extremely relevant in sorting out financial constraints of small municipalities when they need to provide services with high fixed costs. This result is particularly important in Italy where 56% of municipalities has less than 3, 000 inhabitants. The effect is more pronounced as the number of associated municipalities increases and when there is at least one big municipality in the association.
    JEL: H72 H73 C23
    Date: 2023–07
  32. By: Andrea Batch; Benjamin R. Bridgman; Abe C. Dunn; Mahsa Gholizadeh (Bureau of Economic Analysis)
    Abstract: Local area data are important to many economic questions, but most local area data are reported using political units, such as counties, which often do not match economic units, such as product markets. Commuting zones (CZs) group counties into local labor markets. However, CZs are not the most appropriate grouping for other economic activities. We introduce consumption zones (ConZs), groupings of counties appropriate for the analysis of household consumption. We apply the CZ methodology to payment card data, which report spending flows across U.S. counties for 15 retail and service industries. We find that different industries have different market sizes. Grocery stores have more than five times the number of ConZs as live entertainment. Industries with more frequent purchases are more local than those with infrequent purchases. We apply ConZs to measuring industry concentration. ConZs give lower concentration levels than counties, with the largest gap for infrequent purchase industries. The difference is economically important. Some industries are below the antitrust enforcement thresholds with ConZs but above them for counties. We further demonstrate the importance of ConZs by analyzing the proposed merger of Albertsons and Kroger.
    JEL: R12
    Date: 2023–05
  33. By: Giovanni Gallo; Claudia Garofoli
    Abstract: This study shows how the socio-economic background of students in tertiary education can influence their performances and, in particular, the obtained graduation mark. Relying on administrative records on graduated students of the University of Modena and Reggio Emilia (UNIMORE) and aggregated statistics from the website, we explore the role of socio-economic background on students’ performances through two different proxies. One refers to the group of the Italian indicator of the household equivalised economic situation (or ISEE) which the student belongs, while the other consists of the average real estate price featuring the postcode where the student resides. Econometric results show a positive influence of both proxies of the socio-economic background on the graduation mark. Specifically, we observe that belonging to highest ISEE groups has on the graduation mark a similar effect with respect to the average real estate price of the student’s postcode of residence. This evidence confirms that the latter may be an effective alternative dimension to proxy the individuals’ socio-economic background when income/wealth variables are not available, interval-censored, or also present relevant issues of reliability.
    Keywords: real estate price; socio-economic background; educational inequalities; higher education
    JEL: I23 I24 R30
    Date: 2023–07
  34. By: Whelan, Stephen; Atalay, Kadir; Barrett, Garry; Cigdem, Melek; Edwards, Rebecca
    Abstract: This research analyses the economic constraints on people’s ability to buy a home over the four decades from the early 1980s. It analyses how home ownership has evolved over time; considers demand subsidies provided to first homebuyers; and examines the support from other family for first homebuyers. Home ownership rates for people aged 30 have fallen from a high of 65 per cent among those born in the late 1950s to around 45 per cent among those born in the 1980s. This development reflects a range of social, demographic and economic influences. Coinciding with the decline in housing affordability, successive cohorts of Australians have entered home ownership at lower rates at any given age. Younger cohorts that experience lower levels of home ownership at ages 30–34 years do exhibit some catch-up over time—in other words, home ownership rates of that group as they age approach the home ownership rates of older cohorts. However, that catch-up remains incomplete: after 10 years, less than half of the gap at age 30–34 years has closed, and between two-thirds and three-quarters of the gap is closed after 20 years. This means that as individuals reach retirement age, it is likely that home ownership rates will be lower than in earlier generations. As house prices have increased, this has led to substantial increases in the housing wealth of existing home owners—especially older home owners. Coupled with financial innovations that allow households to draw on housing equity, parental transfers—both inheritances and financial gifts—appear to have become one of the key enablers of the transition into home ownership.
    Date: 2023–07–19
  35. By: Morris A. Davis; Jess Gregory; Daniel Hartley
    Abstract: We estimate the parameters of a dynamic, forward-looking neighborhood choice model in 197 metro areas where households have preferences over the racial composition of neighborhoods. Our inclusion of multiple metro areas in the estimation sample enables us to develop a new, shift-share IV strategy to estimate the impact of the racial composition of neighborhoods on location choice that relies only on across-metro comparisons of similarly situated neighborhoods. For the “shift, ” we use national data to determine the probabilities different types of households live in different neighborhoods in a metro when neighborhoods are ranked only by within-metro income quantiles. The “shares” are the metro-level population shares of each household type. Thus, the instrument predicts variation in neighborhood-level racial shares, which for a given within-metro income quantile is attributable exclusively to variation in metrolevel type shares. The overall IV estimate is a weighted average of the contribution from all of the income quantiles. We use the tools of Goldsmith-Pinkham, Sorkin, and Swift (2020) to analyze the comparisons that are weighted most heavily for identification and to derive appropriate balance tests. Our key finding is that many households have very strong preferences to live in same-race neighborhoods. These preferences are so strong that the current demographic composition of neighborhoods is not stable.
    Keywords: Segregation; Neighborhood choice; Equilibrium
    JEL: D58 D59 I31 R21 R23
    Date: 2023–06–29
  36. By: Connor, Dylan Shane; Kemeny, Tom; Storper, Michael
    Abstract: This paper examines the role of work at the cutting of technological change – frontier work – as a driver of prosperity and spatial income inequality. Using new methods and data, we analyze the geography and incomes of frontier workers from 1880 to 2019. Initially, frontier work is concentrated in a set of ‘seedbed’ locations, contributing to rising spatial inequality through powerful localized wage premiums. As technologies mature, the economic distinctiveness of frontier work diminishes, as ultimately happened to cities like Manchester and Detroit. Our work uncovers a plausible general origin story of the unfolding of spatial income inequality.
    Date: 2023–07–13
  37. By: Emin Dinlersoz; Timothy Dunne; John Haltiwanger; Veronika Penciakova
    Abstract: What locations generate more business ideas, and where are ideas more likely to turn into businesses? Using comprehensive administrative data on business applications, we analyze the spatial disparity in the creation of business ideas and the formation of new employer startups from these ideas. Startups per capita exhibit enormous variation across granular units of geography. We decompose this variation into variation in ideas per capita and in their rate of transition to startups, and find that both components matter. Observable local demographic, economic, financial, and business conditions accounts for a significant fraction of the variation in startups per capita, and more so for the variation in ideas per capita than in transition rate. Income, education, age, and foreign-born share are generally strong positive correlates of both idea generation and transition. Overall, the relationship of local conditions with ideas differs from that with transition rate in magnitude, and sometimes, in sign: certain conditions (notably, the African-American share of the population) are positively associated with ideas, but negatively with transition rates. We also find a close correspondence between the actual rank of locations in terms of startups per capita and the predicted rank based only on observable local conditions – a result useful for characterizing locations with high startup activity.
    Date: 2023–07
  38. By: Zuccotti, Carolina V.; Platt, Lucinda
    Abstract: Despite predominantly lower social class origins, the second generation of established immigrant groups in the UK are now attaining high levels of education. However, they continue to experience poorer labour market outcomes than the majority population. These worse outcomes are often attributed in part to their disadvantaged origins, which do not, by contrast, appear to constrain their educational success. This paper engages with this paradox. We discuss potential mechanisms for second-generation educational success and how far we might expect these to be replicated in labour market outcomes. We substantiate our discussion with new empirical analysis. Drawing on a unique longitudinal study of England and Wales spanning 40 years and encompassing one per cent of the population, we present evidence on the educational and labour market outcomes of the second generation of four groups of immigrants and the white British majority, controlling for multiple measures of social origins. We demonstrate that second-generation men and women’s educational advantage is only partially reflected in the labour market. We reflect on the implications of our findings for future research.
    Keywords: social mobility; ethnic groups; second-generation; educational outcomes; social class; employment; social origins
    JEL: R14 J01
    Date: 2023–07–13
  39. By: Pedro Teles; João Guerreiro; Sérgio Rebelo
    Abstract: As remote work opportunities expand, more people are seeking residence in foreign destinations. The resulting surge in foreign residents generates capital gains for property owners but negatively impacts renters and creates potentially important production, congestion, and amenities externalities. We study the optimal policy toward foreign residents in a model with key features emphasized in policy discussions. Using this model, we provide sufficient statistics to evaluate the impact of an influx of foreign residents and to calculate the tax/transfer policies required to implement the optimal policy. This policy involves implementing transfers to internalize agglomeration, congestion, and other potential externalities. Importantly, we find that it is not optimal to restrict, tax, or subsidize home purchases by foreign residents.
    JEL: H00 J61 R3 R58
    Date: 2023
  40. By: Hiroki Tanaka (Doshisha University); Masaya Yasuoka (Kwansei Gakuin University)
    Abstract: Many related studies reported in the literature examine how public school education and private school education affect human capital accumulation. Public school education is financed by taxation but private school education is financed by households. Our paper sets a human capital accumulation model with school education and private tutoring and examines how private tutoring affects human capital accumulation. As shown by our paper, because of private tutoring, inequality of human capital accumulation exists in the case of public school education. Moreover, our paper shows that if public school education is complementary with private tutoring, then low income households are unable to choose public school education because of private tutoring costs. Therefore, public school education is not a redistribution policy for low income households.
    Keywords: Human capital accumulation, Private tutoring, School education
    JEL: I22 H52
    Date: 2023–08
  41. By: Grevenbrock, Nils; Ludwig, Alexander; Siassi, Nawid
    Abstract: Homeownership rates differ widely across European countries. We document that part of this variation is driven by differences in the fraction of adults co-residing with their parents. Comparing Germany and Italy, we show that in contrast to homeownership rates per household, homeownership rates per individual are very similar during the first part of the life cycle. To understand these patterns, we build an overlapping-generations model where individuals face uninsurable income risk and make consumption-saving and housing tenure decisions. We embed an explicit intergenerational link between children and parents to capture the three-way trade-off between owning, renting, and co-residing. Calibrating the model to Germany we explore the role of income profiles, housing policies, and the taste for independence and show that a combination of these factors goes a long way in explaining the differential life-cycle patterns of living arrangements between the two countries.
    Keywords: Homeownership, Co-residence, Overlapping generations
    JEL: D15 E21 H31 R21
    Date: 2023
  42. By: Holmlund, Helena; Nybom, Martin (UCLS and IZA)
    Abstract: Education policy holds the promise of breaking the strong ties between family background and socio-economic position by providing publicly accessible education for children of all backgrounds. However, the education system may also perpetuate social inequalities if well-off families are able to protect their children from downward mobility by e.g., moving to neighbourhoods with high-quality schools, and by providing networks that offer opportunities to succeed. <p> A growing number of studies however show that educational interventions can have long-lasting effects on students’ outcomes, in particular for disadvantaged students, and that they can be cost-effective. For example, reducing class size, increasing general education spending, tutoring and improved teacher quality are policy levers that are shown to be successful in this regard. Shifting from selective to comprehensive school systems is also a policy that enhances equality of opportunity. While the evidence on credit constraints and their role for access to higher education is evolving but still mostly US focused and largely inconclusive, it is a key domain for shaping social mobility given the life-changing impacts that a university degree can have.
    Keywords: Equality of opportunity; social mobility; intergenerational mobility; education policy; economics of education; effect evaluation
    JEL: I24 I30 J24
    Date: 2023–07–02
  43. By: Jordi Brandts; Isabel Busom; Cristina Lopez-Mayan; Judith Panadés
    Abstract: The highly popular belief that rent–control leads to an increase in the amount of affordable housing is in contradiction with ample empirical evidence and congruent theoretical explanations. It can therefore be qualified as a misconception. We present the results of a preregistered online experiment in which we study how to dispel this misconception using a refutational approach in two different formats, a video and a text. We find that the refutational video has a significantly higher positive impact on revising the misconception than a refutational text. This effect is driven by individuals who initially agreed with it and depart from it after the treatment. The refutational text, in turn, does not have a significant impact relative to a non–refutational text. Higher cognitive reflective ability is positively associated with revising beliefs in all interventions. Our research shows that visual communication effectively reduces the gap between scientific economic knowledge and the views of citizens.
    Keywords: misconceptions, policy beliefs, communication, refutation, online experiments
    JEL: A10 A20 C90 D83 D90
    Date: 2023
  44. By: Aline Bütikofer; Antonio Dalla-Zuanna; Kjell G. Salvanes
    Abstract: This paper studies the consequences of the buildup of a new economic sector—the Norwegian petroleum industry—on investment in human capital. We assess both short-term and long-term effects for a broad set of educational margins, by comparing individuals in regions exposed to the new sector with individuals in unexposed regions. Importantly, we analyze how the effects and the mechanisms change as the sector develops. Our results indicate that an initial increase in the high school dropout rate is short-lived both because dropouts get their degrees later as adults, and because later-born cohorts adapt to the new needs of the industry by enrolling more in vocational secondary education. We also observe a decrease in academic high school and college enrollment except for engineering degrees. Financial incentives to both completing high school and field of study, are the most likely channels driving these effects.
    Keywords: school choice, demand for skills, natural resource sector
    JEL: J24 J23 I26 I23
    Date: 2023
  45. By: Maria Balgova (IZA); Hannah Illing (University of Bonn, IAB, IZA)
    Abstract: This paper sheds new light on the barriers to migrants’ labor market assimilation. Using administrative data for Germany from 1997-2016, we estimate dynamic difference-in-differences regressions to investigate the relative trajectory of earnings, wages, and employment following mass layoff separately for migrants and natives. We show that job displacement affects the two groups differently even when we systematically control for pre-layoff differences in their characteristics: migrants have on average higher earnings losses, and they find it much more difficult to find employment. However, those who do find a new job experience faster wage growth compared to displaced natives. We examine several potential mechanisms and find that these gaps are driven by labor market conditions, such as local migrant networks and labor market tightness, rather than migrants’ behavior.
    Keywords: Immigration, Job Displacement, Job Search
    JEL: J62 J63 J64
    Date: 2023–07
  46. By: Asatryan, Zareh; Baskaran, Thushyanthan; Birkholz, Carlo; Hufschmidt, Patrick
    Abstract: In this paper, we study the extent to which ministers engage in regional favoritism. We are the first to provide a comprehensive analysis of a larger set of the governing elite, not just focusing on the primary leader. We manually collect birthplaces of this governing elite globally. Combining this information with extended nighttime luminosity and novel population data over the period from 1992 to 2016, we utilize a staggered difference-in-differences estimator and find that birthplaces of ministers globally emit on average roughly 9 % more nightlight. This result is predominantly attributable to the African sub-sample. We find no evidence that the measured effect is driven by, or induces, migration to the home regions of ministers. The size of our data set lets us investigate heterogeneities along a number of dimensions: political power, ministerial portfolio, and the institutional setting.
    Keywords: Favoritism, elite capture, spatiality, luminosity, population, democracy
    JEL: D72 H72 H77 R11
    Date: 2023
  47. By: Shawn Kantor; Alexander T. Whalley
    Abstract: We estimate the long-term effect of public R&D on growth in manufacturing by analyzing new data from the Cold War era Space Race. We develop a novel empirical strategy that leverages US-Soviet rivalry in space technology to isolate windfall R&D spending. Our results demonstrate that public R&D conducted by NASA contractors increased manufacturing value added, employment, and capital accumulation in space related sectors. While migration responses were important, they were not sufficient to generate a wedge between local and national effects. The iconic Moonshot R&D program had meaningful economic effects for both the local and national space related sectors. Yet the magnitudes of the estimated effects seem to align with those of other non-R&D types of government expenditures.
    JEL: H54 N12 N72 O32 R11
    Date: 2023–07
  48. 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 Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - 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, LEO - Laboratoire d'Économie d'Orleans [2022-...] - UO - Université d'Orléans - UT - Université de Tours - UCA - Université Clermont Auvergne)
    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-localised 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 findings suggest a new dimension of the natural resource curse: the fragmentation of identities, between ethnic groups and nations.
    Keywords: identity, ethnicity, natural resources
    Date: 2023–07
  49. By: Prof. Saadi, T (ISCAE, Km 9, 5 Route de Nouasseur BP. 8114, Casablanca, Morocco Author-2-Name: Author-2-Workplace-Name: ISCAE, Km 9, 5 Route de Nouasseur BP. 8114, Casablanca, Morocco Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: " Objective - This study examines the relationship between diversification strategy and company economic performance in the Moroccan real estate sector. The research focuses on measuring the impact of diversification on technical and Scale efficiency using the Data Envelopment Analysis (D.E.A.) method. The objective is to provide empirical evidence regarding the performance differences between diversified and undiversified companies in the Moroccan real estate industry context. Methodology - Data was collected on sales, inventory, and personnel expenses to construct the input-output ratio from a sample of 60 companies in the Moroccan real estate sector. Diversified and undiversified firms were identified based on their business activities. The Data Envelopment Analysis (D.E.A.) method was then applied to measure these companies' technical and Scale efficiency. Findings - The results reveal that diversified companies in the Moroccan real estate sector exhibit significantly higher economic efficiency, around 40% compared to 31% for undiversified firms. Moreover, diversified firms demonstrate superior pure technical efficiency with a score of 47%, while undiversified firms lag at 36%. However, the two groups have no significant difference in scale efficiency. These findings highlight the positive impact of diversification on overall efficiency and suggest the potential benefits of adopting diversified strategies in the real estate industry. Novelty - This study contributes to the existing literature by exploring the relationship between diversification and performance in the particular context of the real estate industry in Morocco. The findings of this study have practical implications. Managers and policymakers can utilize the results to understand the potential benefits of diversification and consider incorporating this strategy into their business models. Type of Paper - Empirical/ Review"
    Keywords: Economic performance, D.E.A., diversification, Morocco, real estate sector, technical and Scale efficiency, slack
    JEL: L10 R15 R30 M21
    Date: 2023–06–30
  50. By: Gregory Corcos; Stefanie Haller
    Abstract: Few firms import, even when formal trade barriers are low and despite substantial potential gains. Likely reasons are uncertainty and informational frictions, creating scope for local peers to affect new importers. We explore this hypothesis using data on French imports by firm-product-country-year, location, and importer characteristics. First, we study the decision to start importing as a function of the lagged number of importers in the same commuting zone (CZ). We find that the presence of such peers more than doubles the probability to start importing the same product from the same country. The effect increases disproportionately with the number of peers. Second, we examine how the elimination of Multi-Fibre Agreement textile and clothing quotas affects the number of import starters at the CZ level. Here the number of import starters from quota countries increases by 40 to 90% more in commuting zones with a higher initial number of peers.
    Keywords: trade, import start, spillovers, peer effects, Multi-Fibre Agreement
    JEL: F14 F61 D22
    Date: 2023
  51. By: Kazuya Masuda; Hitoshi Shigeoka
    Abstract: We examine the mortality effects of a 1947 school reform in Japan, which extended compulsory schooling from primary to secondary school by as much as 3 years. The abolition of secondary school fees also indicates that those affected by the reform likely came from disadvantaged families who could have benefited the most from schooling. Even in this relatively favorable setting, we fail to find that the reform improved later-life mortality up to the age of 87 years, although it significantly increased years of schooling. This finding suggests limited health returns to schooling at the lower level of educational attainment.
    JEL: H52 I12 I21 I28
    Date: 2023–07
  52. By: Jonathan Colmer; Jennifer L. Doleac
    Abstract: Gun violence is a major problem in the United States, and extensive prior work has shown that higher temperatures increase violent behavior. In this paper, we consider whether restricting the concealed carry of firearms mitigates or exacerbates the effect of temperature on violence. We use two identification strategies that exploit daily variation in temperature and variation in gun control policies between and within states. Our findings suggest that more prohibitive concealed carry laws attenuate the temperature-homicide relationship. Additional results suggest that restrictions primarily decrease the lethality of temperature-driven violent crimes, rather than their overall occurrence, but may be less effective at reducing access to guns in more urban areas.
    Keywords: right-to-carry, temperature, crime, homicide
    JEL: K42 Q51 I18
    Date: 2023
  53. By: Navid Sabet; Noam Yuchtman
    Abstract: We empirically identify politically-motivated redistricting and its consequences, studying the effects of changed electorate composition on US congressional district boundaries and on political outcomes. We exploit the 1986 Immigration Reform and Control Act (IRCA), which legalized millions of immigrants, changing local electorates without changing demographics — legalized immigrants were already counted in the census. Where Democrats controlled the 1990 redistricting process, higher IRCA populations were associated with more spatially distorted districts. Consistent with theory, Democrats packed Hispanics (their ardent supporters) into majority-minority districts. House delegations had more Hispanics suggesting that partisan gerrymandering, in this case, served the historically disadvantaged.
    Keywords: gerrymandering, minority political representation, immigrant legalization, state governance
    JEL: D70 P00 J10
    Date: 2023
  54. By: Pedro H. Albuquerque (Aix Marseille Univ, CNRS, AMSE, Marseille, France and ACCELERATION & ADAPTATION, Aix-en-Provence, France); Prasad R. Vemala (Robert Morris University in Pittsburgh, PA (School of Business), USA)
    Abstract: Mexican cities along the US-Mexico border, especially Cd. Juarez became notorious due to high femicide rates supposedly associated with maquiladora industries and the NAFTA. Nonetheless, statistical evaluation of data from 1990 to 2012 shows that their rates are consistent with other Mexican cities’ rates and tend to fall with increased employment opportunities in maquiladoras. Femicide rates in Cd. Juarez are in most years like rates in Cd. Chihuahua and Ensenada and, as a share of overall homicide rates, are lower than in most cities evaluated. These results challenge conventional wisdom and most of the literature on the subject.
    Keywords: maquiladoras, crime, gender violence, violence against women, homicide, femicide, border, Mexico, Juarez
    JEL: K42 J16 Z13
    Date: 2023–07
  55. By: Massimiliano Affinito (Bank of Italy); Raffaele Santioni (Bank of Italy); Luca Tomassetti (Bank of Italy)
    Abstract: This paper contributes to the understanding of lending to households in three ways: we split household debt into its two main components (residential mortgages and consumer credit) and compare the factors most strongly associated with loan types; we analyse both demand-side (household) and supply-side (bank) characteristics related to loan types; and we use micro census data on all loans granted by all banks in Italy (bank-by-bank data) to all households across the Italian territory (province-by-province data). Our results show that household debt growth is related to the characteristics of banks as well as of households, and in different ways for mortgages and consumer loans. Mortgage growth is more significantly associated with bank capital and household income unequal distribution, while consumer credit is more significantly associated with bank profit components and household income level. We find that the relationship between loan growth and accumulated debt is negative for both types of loans, which is a reassuring result as it reduces concerns about over-indebtedness risk, even if we find that the effect is much larger for mortgage loans than for consumer credit.
    Keywords: Household debt, residential mortgages, consumer credit, supply and demand factors, income level and distribution, over-indebtedness, debt accumulation.
    JEL: G01 G21
    Date: 2023–07
  56. By: Berbée, Paul; Stuhler, Jan
    Abstract: Germany has become the second-most important destination for migrants worldwide. Using all waves from the microcensus, we study their labor market integration over the last 50 years, and document key differences to the US case. While the employment gaps between immigrant and native men decline in the first years after arrival, they remain large for most cohorts; the average gap one decade after arrival is around 10 percentage points. Income gaps are instead widening with time spent in Germany. Differences in educational and demographic characteristics explain how those gaps vary across groups, and why they widened over time: accounting for composition, integration outcomes show no systematic trend. However, economic conditions do matter, and the employment rate of some earlier cohorts collapsed when structural shocks hit the German labor market in the 1990s. Finally, we study the likely integration path of recent arrivals during the European refugee 'crisis' and the Russo-Ukrainian war.
    Keywords: Immigration, labor market integration, long-run trends
    JEL: J11 J61 J68
    Date: 2023
  57. By: Brasili, Andrea; Brasili, Cristina; Musto, Giorgio; Tueske, Annamaria
    Abstract: This work investigates the role of local public investment in stimulating private investment and in providing support to growth and development. The analysis is based on a combination of datasets, allowing to build an unbalanced panel for 98 NUTS2 European regions in 13 member states, and for Italy specifically, a balanced panel of 21 regions from 2000 to 2019. The empirical analysis includes both PVARs and local projections as a way to gain robustness in results. The main finding is that locally decided public investment correlates positively with private investment in the same area (with no evidence for reverse causality). The impact of public investment seems to be stronger in downturn phases. GDP growth is more sensitive to public investment in education, training and R&D, in public administration operations and in territorial infrastructures. For Italy, the impact on private investment is particularly strong for public investment in education, training and R&D. This highlights the point, rich of policy implication, that local governments may be more attentive and sensible to the needs of the private sector in terms of skills and labor supply composition and adapt to local specific features.
    Keywords: Fiscal multipliers, government investment, regional public investment, private investment
    JEL: C33 E62 H72
    Date: 2023
  58. By: Gouzoulis, Giorgos; Stockhammer, Engelbert
    Abstract: This paper examines the relationship between financialisation and the future of work in the post-COVID era. It combines an analysis of changes in labour relations due to financialization with an analysis of the macroeconomic impact of financialisation. It will discuss these for the periods before and after the financial crisis and analyse the impact of COVID on labour relations and the growth model in this context. The first section discusses the relationship between the employer-employee distribution of income and economic growth under neoliberalism, highlighting that anaemic growth was largely the outcome of declining wages. A significant amount of declining wages has been associated with the rise of shareholder value orientation which induced the management of non-financial corporations to reduce labour costs. Yet, financialisation is a complex development that has been affecting other domains of the economies beyond the non-financial corporate sector. A notable case is the financialisation of households, and more specifically the financialisation of the housing market. Rapidly rising mortgage debt ratios, driven by rising house prices, generated a debt-fueled real estate bubble in most advanced economies. The effects of rising household indebtedness not only positively affect housing prices, but also exhibits significant effects on class dynamics and has led to several changes at the workplace level. On the one hand, high-income employees who have invested in the real estate market enjoy economic returns and their share of financial incomes and capital gains over their wage income increases steadily. Thus, their class identity transforms from working class to a form of mini-rentier. On the other hand, low-income employees who become indebted become more self-disciplined at the workplace on the fear of defaulting on their debt, which makes them more vulnerable to complying with wage cuts and working under flexible contracts. Since COVID has induced a steep rise in household and corporate indebtedness, the purpose of this paper is to explore how the acceleration of financialisation will impact the future of work in the post-COVID era and discusses potential implications.
    Keywords: financialisation, industrial relations, growth models, COVID
    Date: 2023
  59. By: Fanny Landaud; Éric Maurin (Université de Cergy-Pontoise, THEMA)
    Abstract: This paper investigates the effect of grouping students by prior achievement into different classes in a context where students are preparing for the entrance exams to elite graduate programs offering a limited number of seats. We show that this policy has, on average, pos- itive effects on students’ performance and rankings. However, these improvements mainly concern students who were the strongest at the start of the preparation period, among whom children from privileged backgrounds are largely over-represented. Ultimately, the practice of grouping students by prior achievement into different classes increases inequalities in access to elite programs between children from different backgrounds.
    Keywords: ability tracking, competition, higher education, inequalities.
    JEL: I21 I23 I24
    Date: 2023
  60. By: Suss, Joel H.
    Abstract: There is ongoing debate about whether the relationship between income and pro-social behaviour depends on economic inequality. Studies investigating this question differ in their conclusions but are consistent in measuring inequality at aggregated geographic levels (i.e. at the state, region, or country-level). I hypothesise that local, more immediate manifestations of inequality are important for driving pro-social behaviour, and test the interaction between income and inequality at a much finer geographical resolution than previous studies. I first analyse the charitable giving of US households using ZIP-code level measures of inequality and data on tax deductible charitable donations reported to the IRS. I then examine whether the results generalise using a large-scale UK household survey and neighbourhood-level inequality measures. In both samples I find robust evidence of a significant interaction effect, albeit in the opposite direction as that which has been previously postulated-higher income individuals behave more pro-socially rather than less when local inequality is high.
    JEL: J1
    Date: 2023–06–14
  61. By: Mühlenweg, Leonard; Gerling, Lena
    Abstract: This paper analyses the impact of fiscal rules on different public spending categories, namely public expenditure and investment, at the subnational level in Europe. Building on the notion of the deficit bias, we suspect that in the presence of fiscal rules, politicians have an incentive to reduce public spending through disproportionate cuts in investments. To empirically test this hypothesis, we focus on subnational administrative levels since budget reallocations can be expected to be pronounced at these levels and because the empirical evidence here is scarce. We introduce a new index based on partially ordered set theory (POSET), using the EC's fiscal rules dataset, which allows us to analyze the stringency of fiscal rules for different levels of government. Our balanced dataset covers 179 NUTS2 regions in 14 EU member states from 1995 to 2018. The empirical analysis is based on Within, GMM, and instrumental variable estimators. Our empirical findings are highly robust. In our baseline model, a one standard-deviation increase in our fiscal rules stringency index reduces overall public expenditure by up to 1.28 percent, while investment declines by more than 4 percent. The results imply that more stringent fiscal rules lead to a disproportionate reduction in public investment as compared to overall expenditure.
    Keywords: European regions, local government, fiscal rules, fiscal policy, expenditure, investment, deficit bias, POSET
    JEL: E02 E62 H54 H60 H74
    Date: 2023
  62. By: Jiyuan Huang (University of Zurich; Swiss Finance Institute); Per Östberg (University of Zurich; Swiss Finance Institute)
    Abstract: This paper studies how to incorporate observable factors in difference-in-differences and document their empirical relevance. We show that even under random assignment directly adding factors with unit-specific loadings into the difference-in-differences estimation results in biased estimates. This bias, which we term the “bad time control problem” arises when the treatment effect covaries with the factor variation. Researchers often control for factor structures by using: (i) unit time trends, (ii) pre-treatment covariates interacted with a time trend and (iii) group-time dummies. We show that all these methods suffer from the bad time control problem and/or omitted factor bias. We propose two solutions to the bad time control problem. To evaluate the relevance of the factor structure we study US housing returns. Adding macroeconomic factors shows that factors have additional explanatory power and estimated factor loadings differ systematically across geographic areas. This results in substantially altered treatment effects.
    Keywords: Difference-in-differences, Factor models, House prices
    JEL: C22 C54 G28 R30
    Date: 2023–06
  63. By: Fitch-Polse, Dillon; Johnson, Nicholas; Handy, Susan
    Abstract: Local and state electric bike (e-bike) incentive programs offering point-of-sale or post-sale monetary discounts to consumers have been implemented across the United States since 2018. As yet, however, little is known about their effectiveness in changing travel behavior. To understand the outcomes of these incentive programs, UC Davis researchers analyzed survey data from rebate recipients in Northern California two months and one year after they acquired e-bikes. The rebate programs were evaluated for effects of e-bike ownership on travel behavior, including changes in bicycling, driving, and use of transit, and on greenhouse gas emissions. The team also suggest areas for future research. View the NCST Project Webpage
    Keywords: Social and Behavioral Sciences, Electric bicycles, Incentives, Ownership, Travel behavior
    Date: 2023–08–01
  64. By: Benny Kleinman; Ernest Liu; Stephen J. Redding
    Abstract: We provide sufficient statistics for nominal and real wage exposure to productivity shocks in a constant elasticity economic geography model. These exposure measures summarize the first-order general equilibrium elasticity of nominal and real wages in each location with respect to productivity shocks in all locations. They are readily computed using commonly-available trade data and the values of trade and migration elasticities. They have an intuitive interpretation in terms of underlying economic mechanisms. Computing these measures for all bilateral pairs of locations involves a single matrix inversion and therefore remains computational efficient even with an extremely high-dimensional state space. These sufficient statistics provide theory-consistent measures of locations' exposure to productivity shocks for use in further economic and statistical analysis.
    JEL: F10 F15 R12
    Date: 2023–07
  65. By: Gibson Mudiriza (University of the Free State); Joanna Grotte (SALDRU, University of Cape Town); Ariane De Lannoy (SALDRU, University of Cape Town); Anda David (Agence Française de Développement); Murray Leibbrandt (SALDRU, University of Cape Town)
    Abstract: Assessing the labour market situation for young people is a critical area of research that has attracted the attention of scholars and policymakers globally. However, understanding the complexity of the labour market for youth, particularly in developing countries, requires a comprehensive, multidimensional approach. We address this need by developing a Youth Labour Market Index (YLMI) for South Africa, incorporating ten indicators that capture the unique youth labour market situation from various perspectives. Drawing on nationally representative data from the Quarterly Labour Force Survey for the period 2013-2023, the YLMI provides a nuanced understanding of the labour market for 15-35-year-olds, and further allows for the identification of variations in the labour market’s functionality for various subgroups of the youth population. The study reveals alarmingly low YLMI scores for South Africa and its nine provinces, which have decreased over time. Significant gender and rural-urban disparities in the distribution of the YLMI scores are observed, and the YLMI scores exhibit an unequal spatial distribution, with lower values concentrated in provinces in former homeland areas. Further analysis reveals that the working conditions and education dimensions are the primary contributors to the low YLMI score, highlighting their role as major drivers of the underperforming youth labour market. Specifically, relative unemployment, skills mismatch, vulnerable employment, and lack of secondary education are the key indicators contributing to the low YLMI scores, with vulnerable employment being particularly critical. These results highlight that the South African labour market for youth is highly dysfunctional and has worsened over time. A defunct labour market entrenches inequality by contributing to further unemployment, pointing to an urgent need for policymakers to address the deteriorating situation. The YLMI provides a valuable tool for informing and targeting the necessary policies and interventions to promote a well-functioning labour market for youth.
    Date: 2023
  66. By: Mitoula, Roido; Gkagkosi, Natalia
    Abstract: The present paper deals with the analysis of the current situation of the Municipality of Elliniko - Argyroupoli, in the region of Attica in Greece, regarding the sustainable urban resilience to impending disasters. The disasters are divided into natural and technological, of which natural disasters have affected the Municipality of Elliniko - Argyroupoli in recent years. Climate change, the increasing trend of urbanization, and the city's complexity are among the main reasons that necessitate urban resilience to prevent, respond to, and recover from a variety of impending disasters. The operational plans for civil protection, combined with the sustainable urban mobility plans and the waste management plans of the Municipality of Elliniko - Argyroupoli, make it a model municipality for achieving urban resilience. Through the results of the questionnaire, conclusions are drawn that could be considered useful both for the further analysis of the current situation and for the design of future policies.
    Keywords: Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies
    Date: 2022–09–23
  67. By: E. Jason Baron; Joseph J. Doyle Jr.; Natalia Emanuel; Peter Hull; Joseph P. Ryan
    Abstract: Ten percent of Black children in the U.S. spend time in foster care—twice the rate of white children. We estimate unwarranted disparities in foster care placement decisions, adjusting for differences in the potential for future maltreatment by leveraging the quasi-random assignment of cases to investigators. Using a sample of nearly 220, 000 maltreatment investigations, we find that Black children are 1.7 percentage points (50%) more likely to be placed into foster care following an investigation than white children conditional on subsequent maltreatment potential. This disparity is entirely driven by white investigators and by cases where maltreatment potential is present, in which Black children are twice as likely to be placed as white children (12% vs. 6%). These results suggest white children may be harmed by “under-placement” in high-risk situations via the leniency that white investigators afford to white parents. Leveraging the additional quasi-random assignment of hotline call screeners, we find that both screeners and investigators are responsible for unwarranted disparities in placement, with investigators amplifying the disparity for cases with subsequent maltreatment potential and mitigating it for lower-risk cases. This finding highlights the importance of “systems-based” analyses of inequity in high-stakes decisions, where discrimination can compound across multiple decision-makers.
    JEL: C26 I31 J13 J15
    Date: 2023–07
  68. By: Fijalkow, Yankel; Wilson, Yaneira
    Abstract: Today, whether condominiums or social housing, Parisian buildings are facing a series of renovation processes that allow us to deepen the quality of their construction. This renewal affects the social life of the buildings, which has been consolidated over the years. While a building is built by materials and populations, it is also the result of history, from its construction to its daily maintenance (or degradation). Our assumption is that people who have no control over their living space are likely to suffer more health problems, in most cases without knowing exactly why, due to a lack of knowledge about the causes or health literacy in their living space. The inability to adapt to their homes or to resolve these situations independently makes us wonder: How can residents' health be influenced by their ability to control their living space? To demonstrate this, we will explain the methodology we are using to understand how people feel affected by the tension between factors that generate satisfaction or dissatisfaction and that have different effects on physical and mental health.
    Date: 2023–07–19
  69. By: Rodríguez-Planas, Núria (Queens College, CUNY); Secor, Alan (City College of New York)
    Abstract: Using Queens College (a four-year college in NYC public system) students' survey data from 2022/23, we find that vulnerable students have less social capital in terms of physical order and social support in their neighborhoods. While social capital is directly related to self-reported neighborhood and national cohesion, resilience, and better mental health, different components of social capital matter for specific demographics. Physical order is more salient for less vulnerable students while social support is more salient for vulnerable students. Our findings underscore the need for policy action to be tailored to specific groups, rather than following a one-size-fits-all approach.
    Keywords: social cohesion, social capital, college students, mental health
    JEL: I24
    Date: 2023–07
  70. By: Kerui Du; Luis Orea; Inmaculada C. Alvarez
    Abstract: In this article, we introduce a new command spxtsfa for fitting spatial stochastic frontier models in Stata. Over the last decades, an important theoretical progress of stochastic frontier models is the incorporation of various types of spatial components. Models with the ability to account for spatial dependence and spillovers have been developed for efficiency and productivity analysis, drawing extensive attention from industry and academia. Due to the unavailability of the statistical packages, the empirical applications of the new stochastic frontier models appear to be lagging. The spxtsfa command provides a routine for estimating the spatial stochastic frontier models in the style of Orea and Álvarez (2019) and Galli (2022), enabling users to handle different sources of spatial dependence. In the presented article, we introduce the spatial stochastic frontier models, describe the syntax and options of the new command, and provide several examples to illustrate its usage.
    Date: 2023

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