nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2023‒09‒04
43 papers chosen by
Steve Ross, University of Connecticut

  1. When Climate Meets Real Estate: A Survey of the Literature By Justin Contat; Caroline Hopkins; Luis Mejia; Matthew Suandi
  2. Inquiry into housing policies and practices for precariously housed older Australians By Faulkner, Debbie; Sharam, Andrea; James, Amity; Tually, Selina; Barrie, Helen
  3. Diverse experiences by active travel: Longitudinal study reveals a persistent discrepancy across residential contexts By Samuelsson, Karl; Brandt, S Anders; Barthel, Stephan; Linder, Noah; Lim, Nancy Joy; Giusti, Matteo
  4. Understanding Urban Traffic Flows in Response to COVID-19 Pandemic with Emerging Urban Big Data in Glasgow By Li, Yue; Wang, Mingshu; Zhao, Qunshan
  5. Mapping Australia’s older, low-income renters By Barrie, Helen; Cebulla, Andreas; Lange, Jarrod; Faulkner, Debbie; Sharam, Andrea
  6. The divergence of school track choices after Covid-19 By Breidenbach, Philipp; Hörnig, Lukas; Schaffner, Sandra
  7. Remote Work and City Structure By Ferdinando Monte; Charly Porcher; Esteban Rossi-Hansberg
  8. Spatial wage inequality in North America and Western Europe: changes between and within local labour markets 1975-2019 By Bauluz, Luis; Bukowski, Pawel; Fransham, Mark; Lee, Annie; López Forero, Margarita; Novokmet, Filip; Breau, Sébastien; Lee, Neil; Malgouyres, Clement; Schularick, Moritz; Verdugo, Gregory
  9. Convergence Patterns of Regional Income Inequalities in Russia By Gluschenko, Konstantin
  10. Political favoritism and internal migration in Benin By Stöcker, Alexander; Baskaran, Thushyanthan; Hufschmidt, Patrick
  11. Regional employment effects of the Hartz-reforms By Hörnig, Lukas
  12. Discrimination against gay and transgender people in Latin America: a correspondence study in the rental housing market By Nicolás Abbate; Inés Berniell; Joaquín Coleff; Luis Laguinge; Margarita Machelett; Mariana Marchionni; Julián Pedrazzi; María Florencia Pinto
  13. The Impact of Business Improvement Districts on Crime By Faggio, G.
  14. Service Trade, Regional Specialization, and Welfare By Yuancheng Han; Jorge Miranda-Pinto; Satoshi Tanaka
  15. Peer effects and endogenous social interactions By Koen Jochmans
  16. Natural Resources, Demand for Skills, and Schooling Choices By Aline Bütikofer; Antonio Dalla-Zuanna; Kjell Salvanes
  17. School Choice with Multiple Priorities By Minoru Kitahara; Yasunori Okumura
  18. The Spanish municipal population database (ESPOP) 1860-1930 By Francisco J. Beltran Tapia; Alfonso Diez Minguela; Julio Martinez Galarraga; Daniel A. Tirado Fabregat
  19. The amplification effects of adverse selection in mortgage credit suply By Salomón García
  20. Permanent Residency and Refugee Immigrants' Skill Investment By Arendt, Jacob Nielsen; Dustmann, Christian; Ku, Hyejin
  21. Intergenerational Mobility in Education in Greece: an exploration into socioeconomic determinants of students' performance and future career plans before, during and after the crisis By Svetoslav Danchev; Georgios Gatopoulos; Niki Kalavrezou; Nikolaos Vettas
  22. Advances and pitfalls in measuring transportation equity By Karner, Alex; Pereira, Rafael H. M.; Farber, Steven
  23. Childhood Shocks Across Ages and Human Capital Formation By Pedro Carneiro; Kjell Salvanes; Barton Willage; Alexander Willén
  24. Local banking markets and barriers to entrepreneurship in minority and other areas: Does broadband availability help? By Prieger, James
  25. The gender gap in STEM: (Female) teenagers' ICT skills and subsequent career paths By Hertweck, Friederike; Lehner, Judith
  26. Thailand Asset Value Estimation Using Aerial or Satellite Imagery By Supawich Puengdang; Worawate Ausawalaithong; Phiratath Nopratanawong; Narongdech Keeratipranon; Chayut Wongkamthong
  27. ICT and Social Services Delivery in the Local Government Councils (LGCs) in Enugu State Nigeria By Ali, Akber
  28. Digitalisation in European regions: Unravelling the impact of relatedness and complexity on digital technology adoption and productivity growth By Stefan Apostol; Eduardo Hernández-Rodríguez
  29. Hetreogeneity in Log-Term Returns to Education - An Inconvenient Truth By Anne Zühlke; Philipp Kugler; Tim Ruhberg
  30. Is Self-Employment for Migrants? Evidence from Italy By Brunetti, Marianna; Zaiceva, Anzelika
  31. Regional vulnerability to the green transition By Rodríguez-Pose, Andrés; Bartalucci, Federico
  32. The Political Economy of Assisted Immigration: Australia 1860-1913 By Hatton, Timothy J.
  33. Women's Education, Marriage, and Fertility Outcomes: Evidence from Thailand's Compulsory Schooling Law By Chaijaroen, Pasita; Panda, Pallavi
  34. Homelessness and Poverty in Europe. An introduction By Hélène B Ducros; Elizabeth B. Jones
  35. Analyzing the Reporting Error of Public Transport Trips in the Danish National Travel Survey Using Smart Card Data By Georges Sfeir; Filipe Rodrigues; Maya Abou Zeid; Francisco Camara Pereira
  36. Impact of depenalization on drugs deaths in England and Wales. An instrumental variable approach By Alessandra Foresta; Andrew Pickering
  37. Disaster risk management: Vulnerability and resilience in the coastal barangays of Zamboanga City, Philippines By Atilano-Tang, Lesley Ann
  38. REDISTRIBUTION OF TAX REVENUES BETWEEN THE LEVELS OF THE BUDGET SYSTEM IN THE RUSSIAN FEDERATION By Arlashkin, Igor (Арлашкин, Игорь); Barbashova, Natalya (Барбашова, Наталья); Deryugin, Aleksandr (Дерюгин, Александр); Komarnitskaya, Anna (Комарницкая, Анна)
  39. Regional policy in the countries of the world: a comparative analysis By Akimova, Varvara (Акимова, Варвара); Zemtsov, Stepan (Земцов, Степан)
  40. Climate Migration Amplifies Demographic Change and Population Aging By Hauer, Mathew
  41. Control and Spread of Contagion in Networks By John Higgins; Tarun Sabarwal
  42. Sharing, Social Norms, and Social Distance: Experimental Evidence from Russia and Western Alaska By E. Lance Howe; James J. Murphy; Drew Gerkey; Olga B. Stoddard; Colin Thor West
  43. An anatomy of monopsony : Search frictions, amenities and bargaining in concentrated markets By David Berger; Kyle Herkenhoff; Andreas R. Kostol; Simon Mongey

  1. By: Justin Contat (Federal Housing Finance Agency); Caroline Hopkins (Federal Housing Finance Agency); Luis Mejia (Federal Housing Finance Agency); Matthew Suandi (Federal Housing Finance Agency)
    Abstract: In this paper, we survey a growing body of academic research at the intersection of climate risks, housing, and mortgage markets, with a focus on the United States. With near unanimity, climate scientists project disasters to increase in frequency, severity, and geographic scope over the next century. While natural hazards, such as hurricanes, riverine flooding, and wildfires have historically posed risks to regional housing markets, the systemic risk that climate change may pose to housing and mortgage markets is of increasing concern. To understand the components of systemic climate risk, we survey existing work relating physical and transition risks to mortgage and housing markets, including both single-family and multifamily segments. Our review of physical risks addresses price, loan performance, and migratory effects stemming from flooding, wildfires, and sea level rise. In surveying transition risks, we discuss papers on energy use and decarbonization as they relate to real estate. Where possible, we explain how these topics may intersect with housing affordability and sustainability, especially for historically disadvantaged communities. We conclude by drawing attention to critical areas for research into flood and other climate-related perils likely to pose significant challenges for real estate in the coming century.
    Keywords: climate change, hazard risk, sustainability, affordability
    JEL: C5 E3 R1 R3
  2. By: Faulkner, Debbie; Sharam, Andrea; James, Amity; Tually, Selina; Barrie, Helen
    Abstract: This final Inquiry brings together the findings of three research projects to address how Australia can deliver the types of housing precariously housed individuals in, or approaching, retirement need to support their life aspirations, wellbeing, participation and inclusion. Over the last 20 years, housing options for older Australians on lower incomes have been getting worse with home ownership rates falling, more people carrying their mortgage debt into retirement and reduced access to social housing. By 2031 an estimated 440, 000 older households will be unable to find or afford suitable housing. Lower income older Australians want housing that is achievable, with some factors gaining greater significance as people get older, such as they want to stay in an affordable home and to live in safe, secure and neighbourhoods. The Inquiry developed and explored alternative housing models through a survey with lower income households. There was a clear preference for a shared equity home ownership model, a cooperative housing model and a transportable housing model, which reflects the expectation that it is ‘normal’ to own one’s home in Australia. In addition, the research highlights that, even though many low income older householders can’t afford any form of mortgage, some people are paying large proportions of their income on rent. If they could get a loan there are two options that have the potential to deliver forms of home ownership, with the security of tenure and well being that provides: shared equity mortgages and land lease mortgages. The research mapped the increases (and decreases) in populations of older low income households across Australia and predicted changes in each area to 2031, measured in suburb-sized geographical areas. The largest projected increases are likely to be in peri-urban and outer-suburban regions, with some significant rises in regional and rural locations.
    Date: 2023–08–02
  3. By: Samuelsson, Karl; Brandt, S Anders; Barthel, Stephan; Linder, Noah; Lim, Nancy Joy; Giusti, Matteo
    Abstract: To inform spatial planning promoting low-carbon travel and well-being, we investigate the potential for experiential diversity by active travel across different residential contexts. We use spatiotemporal tracking and experience data from the Gävle city-region, Sweden, generated by 165 participants over the course of 15 months. Findings reveal a discrepancy between typical travel distances to locations of positive experiences (1.5–5 km) and the distances at which active travel dominates (up to 1.5 km). This discrepancy largely persists across urban, suburban, and peripheral contexts, with urban dwellers travelling further for nature experiences, whereas peripheral dwellers travel further for urbanicity experiences. These results illustrate the importance of spatial scale for promoting diverse positive experiences by active travel, regardless of residential context. Planning strategies include enhancing environmental diversity close to people’s homes and providing infrastructure that promotes switching from motorised to active travel for trips of a few kilometres.
    Date: 2023–07–27
  4. By: Li, Yue; Wang, Mingshu; Zhao, Qunshan
    Abstract: With the global pandemic significantly changing people’s travel behaviours, urban traffic analysis has played an even more important role in urban (re)development, providing insights for urban planning, traffic management, and resource allocation. This research uses the spatial Durbin model to understand the relationship between traffic flows, urban infrastructure, and socio-demographic indicators before, during, and after pandemic periods. We analyze factors including road characteristics, socio-demographics, surrounding built environments, and Google Street View images to understand their influences on traffic flows. In Glasgow, we have found that areas with more young and white dwellers are associated with higher traffic flows, while green spaces are associated with fewer traffic flows. The application of Google Street View images has revealed the heterogeneous effects of the built environment on urban traffic flows, as the magnitudes of their effects vary by distance. With the influence of COVID-19, residents prefer to spend their daily life in their local areas rather than having long-distance travel in the pre-pandemic time. With this noticeable travel behaviour change, the promotion and development of the 15 or 20-minute neighbourhood concept can play an important role in encouraging active travel and achieving a net-zero carbon target in the near future.
    Date: 2023–07–27
  5. By: Barrie, Helen; Cebulla, Andreas; Lange, Jarrod; Faulkner, Debbie; Sharam, Andrea
    Abstract: This research provides a geographic and demographic picture of low-income renters in Australia aged 50+ (LIRiA50+), as the basis to finding acceptable solutions to the challenges of population ageing and housing needs in the 21st Century. It presents changes in LIRiA50+ populations overtime in a selection of map graphics. Projections indicate increasing numbers of older people needing affordable housing, from approximately 200, 000 households to about 440, 000 households aged 55 years and over by 2031. It is unlikely that public housing will be able to meet this need. The largest projected increases in the LIRiA50+ populations in Australia are likely to be in peri-urban and outer-suburban regions. For example, in New South Wales, the inner-western suburbs are expecting LIRiA50+ population increases of around 40–50 per cent. There are expected to be some significant rises in regional and rural locations, with strong population increases (between 40% and 100%) expected in many regional centres up to 2032. Understanding the current and future distribution and likely growth in low-income, older renter numbers is important for planning and provision of appropriate and affordable housing stock. This data collation will enable aged care service providers and local and state governments, as well as housing providers, developers and policy makers, to better plan solutions to this growing housing issue.
    Date: 2023–08–02
  6. By: Breidenbach, Philipp; Hörnig, Lukas; Schaffner, Sandra
    Abstract: During the pandemic, many measures were taken to prevent the spread of Covid-19. Some of these measures, such as school closures, directly affected students. Children from different backgrounds are likely to have different abilities to cope with the challenges of the pandemic and associated countermeasures. We analyse whether pre-existing differences in transition rates from primary schools in low-income and high-income neighborhoods to secondary schools have widened. Our results show that the transition rate from primary schools to Gymnasium, the academic track, increased by 1.5 percentage points in primary schools in high-income neighborhoods compared to primary schools in low-income neighborhoods, suggesting that the pandemic increased educational differences in Germany. We provide suggestive evidence that children's technological equipment and parents' capabilities to help their children differ across neighborhood types.
    Keywords: Covid-19, school closures, educational inequality, school tracking, neighborhood effects
    JEL: I24 I21 J15 D30
    Date: 2023
  7. By: Ferdinando Monte (Georgetown University); Charly Porcher (Georgetown University); Esteban Rossi-Hansberg (University of Chicago)
    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%.
    Keywords: city structure, commuting, COVID-19
    JEL: R23 J24 C62
    Date: 2023–08
  8. By: Bauluz, Luis; Bukowski, Pawel; Fransham, Mark; Lee, Annie; López Forero, Margarita; Novokmet, Filip; Breau, Sébastien; Lee, Neil; Malgouyres, Clement; Schularick, Moritz; Verdugo, Gregory
    Abstract: The rise of economic inequalities in advanced economies has been often linked with the growth of spatial inequalities within countries, yet there is limited comparative research that studies the relationship between national and subnational economic inequality. This paper presents the first systematic attempt to create internationally comparable evidence showing how different countries perform in terms of geographic wage inequalities. We create cross-country comparable measures of spatial wage disparities between and within similarly-defined local labour market areas (LLMAs) for Canada, France, (West) Germany, the UK and the US since the 1970s, and assess their contribution to national inequality. By the end of the 2010s, spatial inequalities in LLMA mean wages are similar in Canada, France, Germany and the UK; the US exhibits the highest degree of spatial inequality. Over the study period, spatial inequalities have nearly doubled in all countries, except for France where spatial inequalities have fallen back to 1970s levels. Due to a concomitant increase in within-place inequality, the contribution of places in explaining national wage inequality has remained fairly constant over the 40-year study period, except in the UK where we document a significant increase. Whilst common global social, economic and technological shocks are important drivers of spatial inequality, this variation in levels and trends of spatial inequality opens the way to comparative research exploring the role of national institutions in mediating how global shocks translate into economic disparities between places.
    Keywords: regional inequality; wage inequality; local labour markets
    JEL: J30 R10 R23
    Date: 2023–08–01
  9. By: Gluschenko, Konstantin
    Abstract: The paper analyzes the evolution of dispersion of regional income inequalities in Russia in 1995-2022. The aim of the study is to reveal the ‘anatomy’ of regional inequality convergence that took place in 1995-2012, and the divergence that followed it, i.e. the internal structure of these processes. To this end, the paper explores the evolution of the regional Gini indices distribution, namely, that of main distribution statistics and the distribution itself (represented by a histogram). The results obtained suggest that convergence of regional levels of income inequality in Russia in 1995–2012 is almost exclusively due to "catching-up" of low-inequality regions with high-inequality regions. Therefore, this process cannot be considered positive. Divergence of regional inequalities in 2013-2022, on the contrary, was accompanied by a decrease in income inequalities in the regions, improving the situation with spatial inequality in Russia.
    Keywords: income inequality, convergence, divergence, Gini index, Galton’s fallacy, Russian regions
    JEL: D31 D61 R11
    Date: 2023–07–23
  10. By: Stöcker, Alexander; Baskaran, Thushyanthan; Hufschmidt, Patrick
    Abstract: In this paper we explore the role of regional connections with a national leader as a pull factor of internal migration in Benin by exploiting granular census data over the period 1991-2013. The empirical analysis is based on a gravity model of migration and utilizes a PPML estimator. Controlling for a diverse set of fixed effects, we show that being connected to a national leader goes along with statistically significant levels of migration into the respective districts. We also provide more detailed evidence that links these migration movements to the presence of political favoritism through its ability to improve economic opportunities and the access to public goods at the local level. The evidence in this paper blends in well with the related literature on political favoritism extending it by a previously unexplored dimension.
    Keywords: Favoritism, internal migration, spatiality, luminosity, Africa
    JEL: D73 R11 R23 O55
    Date: 2023
  11. By: Hörnig, Lukas
    Abstract: Between 2003 and 2005, the German government passed an unprecedented package of labor market reforms, commonly known as the Hartz-reforms. This led to a "labor market miracle" with sharply declining unemployment rates. This paper examines these reforms at the regional level and provides a comprehensive picture of whether the reforms have exacerbated or reduced regional disparities. I apply a regional difference-in-differences framework commonly used in the minimum wage evaluation literature to analyze the effect of the reforms on employment at the county level. The empirical results show that while all counties benefited from the Hartz-reforms, more prosperous counties derived a stronger benefit than those with high unemployment rates. The evidence is stronger for West Germany than for East Germany. Overall, the reforms have not improved economic performance homogeneously, but have actually increased regional disparities.
    Keywords: Regional growth, policy evaluation, regional convergence, Hartz-reforms
    JEL: R11 J48 O47
    Date: 2023
  12. By: Nicolás Abbate (Universidad Nacional de La Plata); Inés Berniell (Universidad Nacional de La Plata); Joaquín Coleff (Universidad Nacional de La Plata); Luis Laguinge (Universidad Nacional de La Plata and CONICET); Margarita Machelett (BANCO DE ESPAÑA); Mariana Marchionni (Universidad Nacional de La Plata and CONICET); Julián Pedrazzi (Universidad Nacional de La Plata and CONICET); María Florencia Pinto (Universidad Nacional de La Plata)
    Abstract: We assess the extent of discrimination against gay and transgender individuals in the rental housing markets of four Latin American countries. We conducted a large-scale field experiment based on the correspondence study methodology to examine interactions between property managers and fictitious couples engaged in searches on a major online rental housing platform. We find no evidence of discrimination against gay male couples but we do find evidence of discrimination against heterosexual couples with a transgender woman partner (trans couples). The latter receive 19% fewer responses, 27% fewer positive responses, and 23% fewer invitations to showings than heterosexual couples. We also assess whether the evidence is consistent with taste-based discrimination or statistical discrimination models by comparing response rates when couples signal being professionals with stable jobs (high SES). While we find no significant effect of the signal for high-SES heterosexual or gay male couples, trans couples benefit from this. Their call-back, positive-response, and invitation rates increase by 25%, 36% and 29%, respectively. These results suggest that discrimination against trans couples is consistent with statistical discrimination. Moreover, we find no evidence of heterosexual couples being favored over gay male couples, nor evidence of statistical discrimination for gay male or heterosexual couples.
    Keywords: LGBTQ+, discrimination, correspondence study, rental housing market, Latin America
    JEL: C93 J15 R23 R3
    Date: 2023–06
  13. By: Faggio, G.
    Abstract: This study evaluates the impact of Business Improvement Districts (BIDs) on crime using a novel data set on the total number of BIDs established in England and Wales between 2012-2017. Results indicate that BID areas are, on average, affected by higher levels of crime than other commercial areas, but they experience a drop of 10-11 crimes per quarter following BID formation. The reduction in crime is stronger for shoplifting, anti-social behaviour and public order-related crimes. Effects depends on the intensity of the approach adopted as well as on the amount of resources devoted to crime prevention. The study also provides evidence of diversion effects. As crime declines in BID areas, criminal activity diverts in neighboring commercial areas. Diversion effects are smaller than deterrence effects so that aggregated crime declines.
    Keywords: urban regeneration policy; local government policy; crime
    Date: 2022–07–27
  14. By: Yuancheng Han; Jorge Miranda-Pinto; Satoshi Tanaka
    Abstract: How much does trade in services affect regional production specialization and welfare? Using unique Canadian trade data, we document that the size of inter-provincial service trade is comparable to that of good trade, and that net exports of services are highly correlated with the value-added share of tradable services across provinces. With a spatial model featuring domestic and international trade, we quantify the effects of service trade. Our results highlight that domestic service trade significantly promotes regional specialization, with heterogeneous welfare gains that reduce regional disparities. Conversely, international service trade generates more uniform welfare gains across provinces.
    Keywords: service trade, domestic trade, regional specialization, regional disparities, welfare, structural transformation
    JEL: E20 F10 L16
    Date: 2023–08
  15. By: Koen Jochmans (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: This paper proposes a solution to the problem of the self-selection of peers in the linear-in-means model. We do not require to specify a model for how the selection of peers comes about. Rather, we exploit two restrictions that are inherent in many such specifications to construct conditional moment conditions. The restrictions in question are that link decisions that involve a given individual are not all independent of one another, but that they are independent of the link decisions made between other pairs of individuals that are located sufficiently far away in the network. These conditions imply that instrumental variables can be constructed from leave-own-out networks.
    Keywords: Instrumental variable, Linear-in-means model, Network, Self-selection
    Date: 2023
  16. By: Aline Bütikofer (Norwegian School of Economics); Antonio Dalla-Zuanna (Bank of Italy); Kjell Salvanes (Norges Handelshøyskole)
    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: petroleum industry, Norway, high school dropout rate
    JEL: O13 J24 I26
    Date: 2023–08
  17. By: Minoru Kitahara; Yasunori Okumura
    Abstract: This study considers a model where schools may have multiple priority orders on students, which may be inconsistent with each other. For example, in school choice systems, since the sibling priority and the walk zone priority coexist, the priority orders based on them would be conflicting. In that case, there may be no matching that respect to all priority orders. We introduce a novel fairness notion called M-fairness to examine such markets. Further, we focus on a more specific situation where all schools have two priority orders, and for a certain group of students, a priority order of each school is an improvement of the other priority order of the school. An illustrative example is the school choice matching market with a priority-based affirmative action policy. We introduce a mechanism that utilizes the efficiency adjusted deferred acceptance algorithm and show that the mechanism is student optimally M-stable, improved-group optimally M-stable and responsive to improvements.
    Date: 2023–08
  18. By: Francisco J. Beltran Tapia (NTNU); Alfonso Diez Minguela (Universitat de Valencia); Julio Martinez Galarraga (Universitat de Barcelona); Daniel A. Tirado Fabregat (Universitat de Valencia)
    Abstract: In this paper we introduce ESPOP, a spatial data infrastructure with municipal-level information for Spain from 1860 to 1930. ESPOP offers de facto population for the universe of municipalities (over 9, 000) as reported in 7 censuses (1860, 1877, 1887, 1900, 1910, 1920 and 1930). Given their changing nature, a relevant contribution is that it also provides local de facto population for 9, 130 homogeneous municipalities thereby allowing for consistent intertemporal comparisons. Additionally, municipalities are georeferenced which in turn facilitates the integration of other spatial data infrastructures. ESPOP thus culminates a long process that has benefitted from the work of the Instituto Nacional de Estadística (INE) and a good number of researchers.
    Keywords: Spain, population, history
    JEL: J11 R11 R23 N33 N34
    Date: 2023–05
  19. By: Salomón García (Banco de España)
    Abstract: This paper studies how information frictions in the securitization market amplify the response of mortgage credit supply to house price shocks. We model securitization as an optimal contracting problem between investors and banks. Banks are better informed than investors about the quality of the mortgages they originate, leading to an adverse selection problem. Investors use the quantity sold as a screening device to induce banks to reveal truthful information. We find that adverse selection amplifies the response of a bank’s mortgage originations to house price shocks. The degree of amplification is also a function of the technological differences in managing portfolios between banks and investors. The model has implications for the design of policy interventions aimed at stabilizing liquidity in the securitization market and credit provision to households in the credit market.
    Keywords: securitization, screening, banking, information frictions, liquidity
    JEL: D82 E51 G21 G28 R31
    Date: 2023–06
  20. By: Arendt, Jacob Nielsen (Rockwool Foundation Research Unit); Dustmann, Christian (University College London); Ku, Hyejin (University College London)
    Abstract: We analyze an immigration reform in Denmark that tightened refugee immigrants' eligibility criteria for permanent residency to incentivize their labor market attachment and acquisition of local language skills. Contrary to what the reform intended, the overall employment of those affected decreased while their average language proficiency remained largely unchanged. This was caused by a disincentive effect, where individuals with low pre-reform labor market performance reduced their labor supply. Our findings suggest that stricter permanent residency rules, rather than incentivizing refugees' skill investment, may decrease the efforts of those who believe they cannot meet the new requirements.
    Keywords: immigrant assimilation, refugee integration, labor supply, language proficiency, human capital
    JEL: J22 J24 J61
    Date: 2023–07
  21. By: Svetoslav Danchev; Georgios Gatopoulos; Niki Kalavrezou; Nikolaos Vettas
    Abstract: Education plays a central role in social mobility. Using data from the OECDÕs PISA program, this paper sheds light on: (i) the role of socioeconomic status on the cognitive performance and future plans of Greek high-school students, (ii) intertemporal trends in light of the recent economic crisis and, iii) differences with other countries on the effect of socioeconomic and other drivers on intergenerational educational mobility. We find large and significant associations between student outcomes and educational resources at home, cultural possession at home, parental emotional support and private school attendance. Parental education and occupation effects are also important but differ by domain and between parents. The association between basic socioeconomic characteristics and adolescent educational performance is significant and rather stable before, during, and after the Greek economic crisis, which points to the need to produce a coherent strategy against educational disparities according to the socioeconomic status.
    Keywords: Intergenerational mobility, social mobility, education, inequality, PISA, Greece
    Date: 2023–06
  22. By: Karner, Alex; Pereira, Rafael H. M.; Farber, Steven
    Abstract: Transportation systems play a pivotal role in facilitating access to out-of-home activities, enabling participation in various aspects of social life. But because of budgetary and physical limitations, they cannot provide equal access to all locations; inevitably, some places will be better served than others. This realization gives rise to two fundamental concerns in transportation equity: 1) accessibility inequality and 2) accessibility poverty. Accessibility inequalities may rise to the level of injustice when some socioeconomic groups systematically have lower access to opportunities than others. Accessibility poverty occurs when people are unable to meet their daily needs and live a dignified, fulfilling life because of a lack of access to essential services and opportunities. In this paper, we review two of the most widely used approaches for evaluating transport justice concerns with accessibility inequality and accessibility poverty: Gini coefficients/Lorenz curves and needs-gap/transit desert approaches, respectively. We discuss how their theoretical underpinnings are inconsistent with egalitarian and sufficientarian concerns in transport justice, and show how the underlying assumptions of these methods and their applications found in the transportation equity literature embody many previously unacknowledged limitations that severely limit their utility. We substantiate these concerns by analysing the equity impacts of Covid-19-related service cuts undertaken in Washington, D.C. during 2020. The paper also discusses how alternative methods for measuring transportation equity both better comport with the known impacts of such changes and are consistent with underlying moral concerns.
    Date: 2023–08–05
  23. By: Pedro Carneiro (University College London); Kjell Salvanes (Norges Handelshøyskole); Barton Willage (University of Colorado--Denver); Alexander Willén (Norwegian School of Economics, CESifo, and UCLS)
    Abstract: We provide estimates of the causal impact of shocks to home environments during childhood on the human capital formation of children and their adult earnings, and document how these impacts differ depending on the age of the child when the shock occurs. We do so by comparing the outcomes of children whose parents experienced an involuntary job loss at different points in time. The rich data we have access to enable us to examine a broad range of short- and long-term educational outcomes related to performance, attainment, and behavior. In addition, for a subsample of our cohorts we can explore earnings effects at age 30. Consistent with other studies, we confirm that early childhood represents a crucial time for acquiring skills and abilities, but also establish that changes in the home environment for children in early adolescence matter as much, and sometimes more. We rationalize these results by noting that sensitive periods for different skills occur at different stages of childhood. Furthermore, it is during early adolescence that children face key junctures in their educational choices.
    Keywords: early childhood development, intergenerational links, human capital
    JEL: I20 J12 J13 J63 D10
    Date: 2023–08
  24. By: Prieger, James
    Abstract: This empirical study investigates the linkages among entrepreneurship in the form of establishment entry, local banking markets, and broadband availability, focusing on minority areas in the US. Lack of access to banks and lack of competition in the market for small business loans can make it more difficult for an entrepreneur to overcome the liquidity constraint to starting a new business. Broadband internet access can facilitate startups directly by enhancing firm profitability and indirectly by stimulating competition in the loan market, lowering the cost of access to finance, and enabling access to financial capital from fintech lenders. The barriers to new business creation erected by local banking markets are hypothesized to be even higher in minority areas, given the greater difficulty minority entrepreneurs face in raising financial capital. The empirical results show that broadband availability, local bank density, and competition in small business loans all facilitate startups. Broadband lowers barriers for entrepreneurs as hypothesized through both the direct and indirect channels. Broadband availability attenuates the barriers from insufficient access to local banks and lack of competition in small business loans from banks. For some industries, higher bank density and greater loan competition facilitate startups more in minority areas than in mostly white areas. Given that minority areas have many fewer banks per capita and much less loan competition than mostly white counties, the results imply that minority areas face even higher barriers to entrepreneurship from insufficient local formal financial resources. The moderating effect of broadband on local financial constraints applies even more so to Black communities; thus while the barriers for Black entrepreneurs may be higher, access to broadband has a greater alleviating effect on those barriers. Business creation in Hispanic areas also faces obstacles from the local banking environment, but broadband does not appear to help reduce them, although it still has a positive direct effect on entry. Additional evidence shows that broadband helped small businesses in minority areas procure more bank loans. Broadband access can thus help entrepreneurs in general, Blacks in particular, and to a lesser extent Hispanics surmount the liquidity constraint to starting a business. The implications of the results are discussed with reference to current and proposed policy to promote broadband availability, usage, and digital equity.
    Keywords: entrepreneurship; startups; minority entrepreneurship; broadband internet access; fintech; FCC Form 477 data; entrepreneurs
    JEL: D22 L26 R11
    Date: 2023–01–02
  25. By: Hertweck, Friederike; Lehner, Judith
    Abstract: Skills shortage in the fields of Sciences, Technology, Engineering, and Mathematics (STEM) poses a significant challenge for industries globally. This study examines the interrelationship between high school students' gender, their proficiency in Information and Communication Technology (ICT), and their career preferences in the STEM domain. Based on representative data for German teenagers, our study shows that female adolescents are less likely to choose a career in STEM unless they have strong ICT skills in secondary school. The relationship does not hold for male students. Our findings can be explained with evidence that teenagers sort into occupations they believe to be good at and that female teenagers rather underestimate their true potential. Using different empirical approaches, we also show that ICT skills act as a moderator and not as a mediator in the gender-specific choice of training upon graduating from secondary school.
    Keywords: Career choice, ICT skills, digital literacy, gender gap, STEM
    JEL: I20 J24 J08
    Date: 2023
  26. By: Supawich Puengdang; Worawate Ausawalaithong; Phiratath Nopratanawong; Narongdech Keeratipranon; Chayut Wongkamthong
    Abstract: Real estate is a critical sector in Thailand's economy, which has led to a growing demand for a more accurate land price prediction approach. Traditional methods of land price prediction, such as the weighted quality score (WQS), are limited due to their reliance on subjective criteria and their lack of consideration for spatial variables. In this study, we utilize aerial or satellite imageries from Google Map API to enhance land price prediction models from the dataset provided by Kasikorn Business Technology Group (KBTG). We propose a similarity-based asset valuation model that uses a Siamese-inspired Neural Network with pretrained EfficientNet architecture to assess the similarity between pairs of lands. By ensembling deep learning and tree-based models, we achieve an area under the ROC curve (AUC) of approximately 0.81, outperforming the baseline model that used only tabular data. The appraisal prices of nearby lands with similarity scores higher than a predefined threshold were used for weighted averaging to predict the reasonable price of the land in question. At 20\% mean absolute percentage error (MAPE), we improve the recall from 59.26\% to 69.55\%, indicating a more accurate and reliable approach to predicting land prices. Our model, which is empowered by a more comprehensive view of land use and environmental factors from aerial or satellite imageries, provides a more precise, data-driven, and adaptive approach for land valuation in Thailand.
    Date: 2023–05
  27. By: Ali, Akber
    Abstract: ICT and Social Services Delivery in the Local Government Councils (LGCs) in Enugu State Nigeria
    Date: 2023–08–04
  28. By: Stefan Apostol; Eduardo Hernández-Rodríguez
    Abstract: Digitalisation has become a clear policy objective. Regions want to digitalise their economies to benefit from the digital world. This paper provides empirical evidence on how the adoption of new digital web technologies is shaped by previous regional digital capabilities. The analysis is based upon an economic complexity and relatedness framework using novel data on digital web technologies’ adoption for 278 European NUTS-2 regions between years 2000-2022. Results show that regions tend to adopt new digital web technologies when they already master related digital capabilities. This paper also shows how digital complexity is associated with labour productivity gains at the regional level. Conclusions shed light on how regions are adopting digital web technologies and serve as a tool for policymakers.
    Keywords: Digitalisation; digital web technologies; relatedness; economic complexity; productivity; European regions
    JEL: L86 O14 O33 R11
    Date: 2023–08
  29. By: Anne Zühlke; Philipp Kugler; Tim Ruhberg
    Abstract: This paper studies the long-term relationship between parental and child education in Germany, where children are tracked into academic and non-academic track schools at the age of 10. On average, children are more likely to attend an academic track school if their parents attended one. Estimating marginal treatment effect curves, we find that there is no effect for disadvantaged individuals, suggesting that educational policies attempting to improve the educational prospect of disadvantaged individuals may fail to reduce inequalities in the long run. Low labor market returns despite better education is the main explanation for the null effect for these individuals.
    Date: 2022–10
  30. By: Brunetti, Marianna; Zaiceva, Anzelika
    Abstract: Using a unique Italian dataset covering the period 2004-2020, we assess the immigrant-native gap in entrepreneurship and investigate channels behind it. The data allows us to account for many observable characteristics as well as for risk aversion, which is usually not observed, yet crucial for the self-employment decision. Unlike most of the existing empirical literature, we find that immigrants in Italy are less likely to be self-employed. The negative gap is confirmed when propensity score matching methodology is used. Heterogeneity analysis suggests that the negative gap is larger for men, for economic migrants and those coming from Sub-Saharan Africa, while it is not significant for mixed immigrant-native couples, for highly skilled, and for migrants from Asia and Oceania. The largest gap is found for those working in the agricultural sector. Regarding additional channels, we explore the role of access to credit, including the informal one, and whether migrants are credit constrained, as well as the importance of migrant networks, easiness of doing business, and expenditures on services for migrants. Despite finding significant correlations between self-employment and some of these factors, none of them seem to decrease the magnitude of the negative gap.
    Keywords: immigrants, self-employment, gender, intermarriage, propensity score matching
    JEL: F22 J21 O15 J15
    Date: 2023
  31. By: Rodríguez-Pose, Andrés (Cañada Blanch Centre and Department of Geography and Environment, London School of Economics); Bartalucci, Federico (Cañada Blanch Centre and Department of Geography and Environment, London School of Economics)
    Abstract: The impacts of climate change are unevenly distributed across territories. Less is known about the potential effects of climate policies aimed at mitigating the negative consequences of climate change, while transitioning economies towards low-carbon standards. This paper presents an analytical framework for identifying and assessing the regional impacts of the green transition. We develop a Regional Green Transition Vulnerability Index, a composite measure of the regional vulnerability of European regions to the socio- economic reconfigurations prompted by the green transition. The index brings to light strong regional variations in vulnerability, with less developed, peri-urban, and rural regions in Southern and Eastern Europe more exposed to the foreseeable changes brought about by the green transition. We also draw attention to the potential rise of pockets of growing ‘green’ discontent, especially if the green transition contributes, as is likely to be the case, to leaving already left-behind regions further behind.
    Keywords: Green transition, environment, left-behind regions, development trap, European Union
    JEL: O44 Q56 R11
    Date: 2023–07
  32. By: Hatton, Timothy J. (University of Essex)
    Abstract: From 1860 to 1913 the six colonies that became states of Australia strove to attract migrants from the UK with a variety of assisted passages. The colonies/states shared a common culture and sought migrants from a common source, the UK, but set policy independently of each other. This experience provides a unique opportunity to examine the formation of assisted immigration policies. Using a panel of colonies/states over the years 1862 to 1913 I investigate the association between measures of policy activism and a range of economic and political variables. Assisted migration policies were positively linked with government budget surpluses and local economic prosperity. They were also associated with political participation including the widening of the franchise and remuneration of members of parliament. While the reduction in travel time to Australia reduced the need for assisted migration, slumps in the UK increased the take-up of assisted passages.
    Keywords: colonial Australia, assisted passages, international migration
    JEL: F22 N37 N47
    Date: 2023–07
  33. By: Chaijaroen, Pasita; Panda, Pallavi
    Abstract: Increased education affects market and non-market outcomes. This paper investigates the causal impact of the extension of compulsory education from 6 to 9 years on females' education, marriage, and fertility outcomes in Thailand. Using data from the Multiple Indicator Cluster Survey (MICS) and a donut-hole Regression Discontinuity (RD) design, we show that the new law increases lower secondary school completion in girls, leading to decreased probabilities of giving birth in the school-age years (14-17 years). The policy primarily affects the marginal child leading to the postponement of the timing of their fertility to after-school years. We also document heterogeneity and show that the fertility effects are stronger for Muslim women. The policy leads to a consistent drop in the probability of marriage and cumulative births for Muslim women, which sustain beyond the completion of schooling years. The results hold with alternative empirical model specifications and falsification tests.
    Keywords: Compulsory Schooling, Education, Marriage, Fertility, Thailand, Social Norms
    JEL: J13 J12 I25 I28 I21
    Date: 2023
  34. By: Hélène B Ducros (CES - Council for European Studies); Elizabeth B. Jones
    Abstract: While policymakers rightly blame the COVID-19 epidemic, the war in Ukraine, and persistently high levels of inflation for the lack of progress in alleviating homelessness and for the dire shortage of safe and affordable housing in many places, these factors have exacerbated rather than created a complex problem that touches a wide array of people at different life stages and under various socioeconomic conditions.
    Keywords: Homelessness, Poverty
    Date: 2023–07–12
  35. By: Georges Sfeir; Filipe Rodrigues; Maya Abou Zeid; Francisco Camara Pereira
    Abstract: Household travel surveys have been used for decades to collect individuals and households' travel behavior. However, self-reported surveys are subject to recall bias, as respondents might struggle to recall and report their activities accurately. This study addresses examines the time reporting error of public transit users in a nationwide household travel survey by matching, at the individual level, five consecutive years of data from two sources, namely the Danish National Travel Survey (TU) and the Danish Smart Card system (Rejsekort). Survey respondents are matched with travel cards from the Rejsekort data solely based on the respondents' declared spatiotemporal travel behavior. Approximately, 70% of the respondents were successfully matched with Rejsekort travel cards. The findings reveal a median time reporting error of 11.34 minutes, with an Interquartile Range of 28.14 minutes. Furthermore, a statistical analysis was performed to explore the relationships between the survey respondents' reporting error and their socio-economic and demographic characteristics. The results indicate that females and respondents with a fixed schedule are in general more accurate than males and respondents with a flexible schedule in reporting their times of travel. Moreover, trips reported during weekdays or via the internet displayed higher accuracies compared to trips reported during weekends and holidays or via telephones. This disaggregated analysis provides valuable insights that could help in improving the design and analysis of travel surveys, as well accounting for reporting errors/biases in travel survey-based applications. Furthermore, it offers valuable insights underlying the psychology of travel recall by survey respondents.
    Date: 2023–08
  36. By: Alessandra Foresta; Andrew Pickering
    Abstract: This article investigates the role of drug depenalization on drug related deaths in England and Wales. We use an instrumental variable approach, based on Police and Crime Commissioners elections and voters left-wing preferences corresponds a decrease in drug-related arrests. The IV results indicate that a decrease in our instrumented variables generates an increase in deaths related to drug poisoning/drug misuse. Specically, to a decrease of 1% in our instrumented variables corresponds to an increase between 0.04% and 0.07% in the drug poisoning/misuse deaths ratio. We replicate our analysis using different definitions of political preferences, lag specications, dependent and independent variables and the findings are similar.
    Date: 2023
  37. By: Atilano-Tang, Lesley Ann
    Abstract: This study examines the vulnerability and resilience of coastal barangays in Zamboanga City, Philippines, in the context of disaster risk management. Utilizing a comprehensive data collection approach, including interviews, surveys, and field observations, this research aims to identify key factors that contribute to the vulnerability of these communities, as well as the strategies employed to enhance their resilience. The analysis of primary data collected from 30 households across five coastal barangays reveals that these communities face significant vulnerabilities to various hazards, including typhoons, storm surges, and sea-level rise. Findings indicate that factors such as inadequate infrastructure, limited access to basic services, and high poverty levels intensify their exposure to disasters. In response to these challenges, the study documents several resilience-building initiatives undertaken by the local government and community organizations. These efforts include the establishment of early warning systems, the implementation of hazard-resistant infrastructure, and the promotion of community-based disaster risk reduction and management practices.
    Keywords: disaster risk management, vulnerability, resilience, coastal barangays, Zamboanga City, Philippines, hazards, infrastructure, poverty, community-based initiatives.
    JEL: I30 I38 Y80 Y90 Z00
    Date: 2023–07–01
  38. By: Arlashkin, Igor (Арлашкин, Игорь) (The Russian Presidential Academy of National Economy and Public Administration); Barbashova, Natalya (Барбашова, Наталья) (The Russian Presidential Academy of National Economy and Public Administration); Deryugin, Aleksandr (Дерюгин, Александр) (The Russian Presidential Academy of National Economy and Public Administration); Komarnitskaya, Anna (Комарницкая, Анна) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The subject of the study is the distribution of tax revenues between the levels of the budget system in the Russian Federation. The relevance of the study is caused by the need to strengthen the vertical balance of the budget system through tax decentralization in the context of the restructuring of the Russian economy. The aim of the study is to find parameters of tax decentralization that do not worsen the horizontal balance of regional budgets. The research method is the modeling of tax revenues of the consolidated regional budgets. The study used data from the Federal Treasury, the Federal Tax Service and the Ministry of Finance of Russia for 2019–2021. The scientific novelty of the study consists in modeling the effects of tax decentralization on the level of differentiation of regional tax revenues using the latest available data. As a result of the study, it was shown that an increase in regional shares for personal income tax, some components of the MET, water tax and fees for the use of aquatic biological objects up to 100 % will not lead to an increase in inter-regional differentiation of per capita tax revenues. The conclusion of the study is that there is a potential for tax decentralization in Russia, which can be realized by redistributing tax revenues to the regional level without worsening the horizontal budget balance. The prospects of the study are to take into account the effects of the structural transformation of the economy on the territorial distribution of tax bases and the level of taxation, as well as to detail the calculations of the MET as new data are accumulated.
    JEL: H71 H73 H77
    Date: 2022–11
  39. By: Akimova, Varvara (Акимова, Варвара) (The Russian Presidential Academy of National Economy and Public Administration); Zemtsov, Stepan (Земцов, Степан) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: Relevance of the research: Socio-economic development of countries and regions is historically uneven. But in some cases, too much territorial inequality can lead to the collapse of the state. In constantly changing conditions, it is necessary to use the spatial policy experience of the most successful countries. The conclusions obtained in the work will make it possible to offer recommendations for updating methodological approaches to the development of strategic documents in the field of regional policy, considering the global best practices. The goal of the study is to analyze and summarize foreign experience in implementing regional policies, including the conditions of uncertainty (COVID-19 pandemic). Research methods and methodology: comparative analysis, system analysis, qualitative analysis, historical and economic analysis. Scientific novelty: We conducted a comprehensive qualitative and value-content analysis of the best regional policy practices in Europe and North America, as well as the experience of developing countries, including India, China and Brazil. Separately, the strategies of regional policy in the context of the pandemic are highlighted.
    Keywords: regional policy, developed and developing countries, strategic planning, regional policy mechanisms, COVID-19
    JEL: B52 O18
    Date: 2022–07
  40. By: Hauer, Mathew
    Abstract: The warnings of potential climate migration first appeared in the scientific literature in the late 1970s when increased recognition that disintegrating ice sheets could drive people to migrate from coastal cities. Since that time, scientists have modelled potential climate migration without integrating other population processes, potentially obscuring the demographic amplification of this migration. Climate migration could amplify demographic change – enhancing migration to destinations and suppressing migration to origins. Additionally, older populations are the least likely to migrate and climate migration could accelerate population aging in origin areas. Here, we investigate climate migration under sea-level rise (SLR), a single climatic hazard, and examine both the potential demographic amplification effect and population aging by combining matrix population models, flood hazard models, and a migration model built on 40 years of environmental migration in the US to project the US population distribution of US counties. We find that the demographic amplification of SLR for all feasible RCP-SSP scenarios in 2100 ranges between 8.6M - 28M [5.7M - 53M] – 5.3 to 18 times the number of migrants (0.4M - 10M). We also project a significant aging of coastal areas as youthful populations migrate but older populations remain, accelerating population aging in origin areas. As the percentage of the population lost due to climate migration increases, the median age also increases – up to 10+ years older in some highly impacted coastal counties. Additionally, our population projection approach can be easily adapted to investigate additional or multiple climate hazards.
    Date: 2023–07–25
  41. By: John Higgins; Tarun Sabarwal
    Abstract: We study proliferation of an action in binary action network coordination games that are generalized to include global effects. This captures important aspects of proliferation of a particular action or narrative in online social networks, providing a basis to understand their impact on societal outcomes. Our model naturally captures complementarities among starting sets, network resilience, and global effects, and highlights interdependence in channels through which contagion spreads. We present new, natural, and computationally tractable algorithms to define and compute equilibrium objects that facilitate the general study of contagion in networks and prove their theoretical properties. Our algorithms are easy to implement and help to quantify relationships previously inaccessible due to computational intractability. Using these algorithms, we study the spread of contagion in scale-free networks with 1, 000 players using millions of Monte Carlo simulations. Our analysis provides quantitative and qualitative insight into the design of policies to control or spread contagion in networks. The scope of application is enlarged given the many other situations across different fields that may be modeled using this framework.
    Date: 2023–07
  42. By: E. Lance Howe (Department of Economics, University of Alaska Anchorage); James J. Murphy (Department of Economics, University of Alaska Anchorage); Drew Gerkey (Oregon State University); Olga B. Stoddard (Department of Economics, Bringham Young University); Colin Thor West (University of North Carolina, Chapel Hill)
    Abstract: This paper investigates how dictator giving varies by social context and worthiness of the recipient. We conduct lab-in-the-field experiments in Kamchatka, Russia, and Western Alaska, as well as a lab experiment with university students, in which we vary social distance and recipient characteristics across treatments. We ask what motivates individuals to share and whether offers from a dictator game, where dictators give from own-earnings, can tell us something more fundamental about social norms and sharing. Results indicate that subjects living in rural Indigenous communities, in both Russia and Alaska, who depend heavily on wild food harvests and possess strong sharing norms, are significantly more likely to give positive amounts compared to university students. We also find that in Indigenous communities, family relations and financial needs are prioritized in giving decisions. We suggest that treatment differences correspond to social norm differences in our study areas.
    Keywords: dictator game, experimental economics, lab-in-the-field experiments, sharing, risk pooling
    JEL: C93 D64
    Date: 2023–07–18
  43. By: David Berger; Kyle Herkenhoff; Andreas R. Kostol; Simon Mongey
    Abstract: We contribute a theory in which three channels interact to determine the degree of monopsony power and therefore the markdown of a worker’s spot wage relative to her marginal product: (1) heterogeneity in worker-firm-specific preferences (non-wage amenities), (2) firm granularity, and (3) off- and on-the-job search frictions. We use Norwegian data to discipline each channel and then reproduce new reduced-form empirical relationships between market concentration, job flows, wages and wage inequality. In doing so we provide a novel method for clustering occupations into local labor markets. Our main exercise quantifies the contribution of each channel to income inequality and wage markdowns. The average markdown is 21 percent in our baseline estimation. Removing nonwage amenity dispersion narrows them by a third. Giving the next-lowest-ranked competitor a seat at the bargaining table narrows them by half, suggesting that granularity and strategic interactions in the bargaining process is an important source of markdowns. Removing search frictions narrows them by two-thirds. Each counterfactual reduces wage inequality and increases welfare.
    Keywords: Monopsony, Inequality.
    JEL: E2 J2 J42
    Date: 2023–06–15

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