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on Urban and Real Estate Economics |
| By: | Sarkar, Somwrita; Gurran, Nicole; Shrivastava, Rashi; Chapple, Karen |
| Abstract: | This research investigates a range of significant changes in neighbourhoods in Australia’s five largest capital cities (Sydney, Melbourne, Brisbane, Adelaide and Perth) over two census periods, revealing changes in the housing market, social and economic deprivation and employment connectivity to the rest of the city and the wider region. It reveals that segregation in Australian cities is increasing over time, driven by income and economic class segregation. Spatial segregation is detrimental to social cohesion and community wellbeing. Any segregation has negative effects, whether this segregation occurs at the affluent end (i.e. the rich gathering in some areas) or at the disadvantaged end (the poor concentrated in other areas). The segregation in Australian cities is driven by high-income and very-high-income earners clustering into tight spatial groups. The most affluent areas—the high-value residential neighbourhoods—are closest spatially to the areas where there are the highest number of jobs. This results in a labour market where the highest-income earners travel the least to access job opportunities, whereas lower-income and moderate-income earners are forced out to the peripheries of the cities and must therefore travel more to access these same opportunities. Policies that encourage a healthy spatial mix of housing and tenure types should be encouraged for each neighbourhood or local government area, but especially in affluent neighbourhoods, which typically are in close proximity to the richest employment and social opportunities. Another focus area is a combination of provision of affordable housing options, as well as increased transport accessibility for those neighbourhoods that are not closely connected to employment and social amenities. |
| Date: | 2024–01–09 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:jm95p&r=ure |
| By: | Ioramashvili, Carolin |
| Abstract: | Differences in regional incomes are large and persistent in many countries. On the one hand, internal migration from low- to high-income regions might eradicate these differences over time. On the other hand, internal migration might exacerbate disparities, as receiving regions benefit from incoming skills and agglomeration economies. This paper estimates the effect of internal in- and out-migration on the earnings of employees who do not move, using a panel of employee records from Great Britain between 2004 and 2018. Employees are tracked and identified as internal migrants if they start working in a new travel-to-work area (TTWA), representing functional labour market areas. The share of in- and out-migrants is significantly correlated with earnings and earnings growth of non-migrants in a TTWA. The results show that in-migrants have an immediate negative effect on local earnings of non-migrants. After three years, in-migration is positively correlated with earnings growth. These effects are exclusively driven by urban areas. Out-migrants have no significant effects. The results provide some evidence that labour mobility can be used as a tool to encourage local growth, albeit with significant adjustment costs. |
| Keywords: | internal migration; labour mobility; income; earnings; labour markets; employment |
| JEL: | D31 R11 R23 |
| Date: | 2023–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121382&r=ure |
| By: | Tamar Ramot-Nyska (Bank of Israel) |
| Abstract: | Residential location is economically important for households. It provides them access to local services, as well as to social and economic elements that influence their economic opportunities during their lifetime. Housing policies may create barriers for residential mobility that may create market inefficiencies such as lock-in effects or price distortions. This paper provides evidence on the effect of changing the incentives for residential mobility, using a natural experiment of public housing privatization in Israel. Buying an apartment at a discount was found to increase households’ probability to move. Most movers turned to other neighborhoods within their residential locality, while a small portion left to higher opportunity neighborhoods. Moving probability was greater from properties of lower physical quality, and was higher for young buyers, expecting a longer duration at the new location. The unique policy setting and the rich administrative data allow deeper analysis compared to previous studies that sheds light on the potential effects of residential mobility disincentives existing in other affordable housing settings |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:boi:wpaper:2023.15&r=ure |
| By: | Barbara Biasi; Julien M. Lafortune; David Schönholzer |
| Abstract: | This paper identifies which investments in school facilities help students and are valued by homeowners. Using novel data on school district bonds, test scores, and house prices for 29 U.S. states and a research design that exploits close elections with staggered timing, we show that increased school capital spending raises test scores and house prices on average. However, impacts differ vastly across types of funded projects. Spending on basic infrastructure (such as HVAC) or on the removal of pollutants raises test scores but not house prices; conversely, spending on athletic facilities raises house prices but not test scores. Socio-economically disadvantaged districts benefit more from capital outlays, even conditioning on project type and the existing capital stock. Our estimates suggest that closing the spending gap between high- and low-SES districts and targeting spending towards high-impact projects may close as much as 25% of the observed achievement gap between these districts. |
| JEL: | H41 H75 I22 I24 R30 R53 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32040&r=ure |
| By: | Patricia Alejandro; Mary Ellen Carter; Denise DiPasquale; Edward Ludwig Glaeser; Adam M. Guren; Paul S. Willen |
| Abstract: | Boston’s high housing costs reflect a historic failure to build enough units to satisfy demand. Interest rates and construction costs have risen recently, and the flow of new market-rate residential housing projects has slowed. To spur more construction, the City of Boston is considering various policy options. Our committee was asked by Boston Mayor Michelle Wu to assess the market impacts of one of these options: real estate tax abatements. This report presents our analysis of the likely effects on the number of units constructed and the costs to taxpayers of various tax abatement alternatives.We do not recommend which policy, if any, the city should pursue; Boston officials are better positioned to assess whether the benefits of these policies warrant the costs to taxpayers. |
| Keywords: | tax abatement; housing supply; Boston |
| JEL: | H2 H71 R31 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedbwp:97647&r=ure |
| By: | Adam M. Lavecchia; Philip Oreopoulos; Noah Spencer |
| Abstract: | This study finds substantial reductions to criminal activity from the introduction of a comprehensive high school support program for disadvantaged youth living in the largest public housing project in Toronto. The program, called Pathways to Education, bundles supports such as regular coaching, tutoring, group activities, free public transportation tickets and bursaries for postsecondary education. In this paper, we use a difference-in-differences approach that compares students living in public housing communities where the program was offered to those living in communities where the program was not offered over time. We find that eligibility for Pathways reduces the likelihood of being charged with a crime by 32 percent at its Regent Park location. This effect is driven by a reduction in charges for breaking and entering, theft, mischief, other traffic offenses and Youth Criminal Justice Act offenses. |
| JEL: | I2 I30 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32045&r=ure |
| By: | Duvvuri, Saawan |
| Abstract: | Purpose: This paper investigates the influences of racial and socioeconomic factors on public schools' performance in the Dallas-Fort Worth (DFW) Metroplex. Research Methods: I obtained data from the Texas Education Agency (TEA) and the American Community Survey (ACS), representing 366, 568 students attending 239 public high schools in the DFW Metroplex, which included public schools located in Colin County, Dallas County, Tarrant County, and Denton County. I measured public school performance based on graduation rate metrics and average SAT scores from graduating students. Findings: I found a significant correlation between racial and socioeconomic factors on public school performance. I found that the percent composition of socioeconomically disadvantaged students was the highest correlator to decreased academic performance. Further, I found a positive correlation between the percentage of socioeconomically disadvantaged students attending a given high school in relation to the percentage of African-American and Hispanic students attending a given high school. Notably, I found that public schools in the DFW Metroplex were highly segregated by racial and socioeconomic factors. Implications: This study highlights the necessity for policy pushes to diversify public school districts. Many public schools in the DFW Metroplex remain extensively segregated by racial and socioeconomic factors, and our findings underscore the importance of ensuring equitable resource distribution amongst public schools, specifically in school systems with large percentages of African-American, Hispanic, and socioeconomically disadvantaged students. |
| Date: | 2024–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:2trks&r=ure |
| By: | Goulas, Sofoklis (Brookings Institution); Megalokonomou, Rigissa (Monash University); Zhang, Yi (University of Queensland) |
| Abstract: | Recent research has shown that females make classrooms more conducive to effective learning. We identify the effect of a higher share of female classmates on students' disruptive behavior, engagement, test scores, and major choices in disadvantaged and non-disadvantaged schools. We exploit the random assignment of students to classrooms in early high school in Greece. We combine rich administrative data with hand-collected student-level data from a representative sample of schools that feature two novel contributions. Unlike other gender peer effects studies, a) we use a rich sample of schools and students that contains a large and diverse set of school qualities, and household incomes, and b) we measure disruption and engagement using misconduct-related (unexcused) teacher-reported and parent-approved (excused) student class absences instead of self-reported measures. We find four main results. First, a higher share of female classmates improves students' current and subsequent test scores in STEM subjects and increases STEM college participation, especially for girls. Second, a higher share of female classmates is associated with reduced disruptive behavior for boys and improved engagement for girls, which indicates an increase in overall classroom learning productivity. Third, disadvantaged students - those who attend low-quality schools or reside in low-income neighborhoods - drive the baseline results; they experience the highest improvements in their classroom learning productivity and their STEM outcomes from a higher share of female classmates. Fourth, disadvantaged females randomly assigned to more female classmates in early high school choose college degrees linked to more lucrative or prestigious occupations 2 years later. Our results suggest that classroom interventions that reduce disruption and improve engagement are more effective in disadvantaged or underserved environments. |
| Keywords: | quasi-random variation, STEM careers, classroom learning productivity, natural experiment, gender peer effects, disadvantaged students |
| JEL: | J16 J24 I24 I26 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16689&r=ure |
| By: | Gal Amedi (Bank of Israel) |
| Abstract: | Accessibility is a key factor in the utility from living in different areas. In urban models, accessibility is theoretically expected to be internalized by the residential market, creating an 'accessibility premium' in areas with better accessibility. Previous case-study literature found significant and largely unexplained variation in the transit accessibility premium in different urban contexts. This paper proposes a new approach to uncovering the determinants of this variation in a unified framework, utilizing a theoretically grounded measure of accessibility, and both causal machine learning and standard econometric methods applied to highly granular nationwide data on rents and the transportation network. I find that high residential density, mixed-use zoning, and a demographic composition better reflecting typical transit users imply a larger transit accessibility premium. This premium is also higher in areas with a low level of services compared to a reasonable reference point, and positive only up to a threshold level of services. There is some evidence that proximity to rail systems implies a premium over and above the expected premium implied by a reduction in travel times alone. The estimated effect is usually modest. |
| JEL: | R40 R31 R23 R12 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:boi:wpaper:2023.12&r=ure |
| By: | Stephan D. Whitaker |
| Abstract: | The postpandemic movement of people out of urban neighborhoods is speeding up changes in the age, credit risk, income, home ownership, and ethnic mix of these neighborhoods. Migration has been consistent with patterns in place before the pandemic, but at higher levels. |
| Keywords: | urban migration; COVID-19 pandemic |
| Date: | 2024–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:fip:c00003:97631&r=ure |
| By: | Marguerite Obolensky (Columbia University); Marco Tabellini (Harvard Business School); Charles Taylor (HarvardKennedySchool) |
| Abstract: | This paper introduces the concept of “climate matching†as a driver of migration and establishes several new results. First, we show that climate strongly predicts the spatial distribution of immigrants in the US, both historically (1880) and more recently (2015), whereby movers select destinations with climates similar to their place of origin. Second, we analyze historical flows of German, Norwegian, and domestic migrants in the US and document that climate sorting also holds within countries. Third, we exploit variation in the long-run change in average US climate from 1900 to 2019 and find that migration increased more between locations whose climate converged. Fourth, we verify that results are not driven by the persistence of ethnic networks or other confounders, and provide evidence for two complementary mechanisms: climate-specific human capital and climate as amenity. Fifth, we back out the value of climate similarity by: i) exploiting the Homestead Act, a historical policy that changed relative land prices; and, ii) examining the relationship between climate mismatch and mortality. Finally, we project how climate change shapes the geography of US population growth by altering migration patterns, both historically and into the 21st century. |
| Keywords: | Migration, climate matching, value of climate |
| JEL: | J15 J61 N31 N32 Q54 R11 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:2401&r=ure |
| By: | Cai, Shu; Zimmermann, Klaus F. |
| Abstract: | Previous research on internal mobility has neglected the role of local identity contrary to studies analyzing international migration. Examining social identity and labor market outcomes in China, the country with the largest internal mobility in the world, closes the gap. Instrumental variable estimation and careful robustness checks suggest that identifying as local associates with higher migrants' hourly wages and lower hours worked, although monthly earnings seem to remain largely unchanged. Migrants with strong local identity are more likely to use local networks in job search, and to obtain jobs with higher average wages and lower average hours worked, suggesting the value of integration policies. |
| Keywords: | assimilation, social identity, labor market, migration, internal mobility, China's Great Migration |
| JEL: | J22 J31 J61 Z13 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:716pre&r=ure |
| By: | Kim, Geon |
| Abstract: | Since 2017, the surge in housing prices in South Korea has raised concerns about housing affordability and price bubbles. To dampen the escalating housing prices by regulating speculative demand, the land transaction permit (LTP) area is designated in the Gangnam area in Seoul. This policy represents one of the most stringent regulations because it imposes a mandatory two-year residency obligation, and transactions for those years are prohibited. This study examines the effects of LTP on sales and rental prices in Seoul, South Korea. Using the difference-in-differences method, I find that the LTP triggers up to a 7.7% decrease in sales prices, which is aligned with the policy’s aim. However, the LTP also raises rental prices as well as both sales and rental prices in the surrounding area, which are undesirable and unintended outcomes of the policy from a broader real estate market perspective. |
| Date: | 2024–01–11 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:7sf92&r=ure |
| By: | Jimena Villanueva Kiser (Brigham Young University); Riley Wilson (Brigham Young University) |
| Abstract: | Exploiting variation created by Deferred Action for Childhood Arrivals (DACA), we document the effects of immigrant legalization on immigrant mobility investments and economic outcomes. We provide new evidence that DACA increased both geographic and job mobility of young immigrants, often leading them to high-paying labor markets and licensed occupations. We then examine whether these gains to immigrants spill over and affect labor market outcomes of U.S.-born workers. Exploiting immigrant enclaves and source-country flows of DACA-eligible immigrants to isolate plausibly exogenous variation in the concentration of DACA recipients, we show that in labor markets where more of the working-age population can access legal protection through DACA, U.S.-born workers see little-to-no change in employment rates and actually observe increases in wage earnings after DACA’s implementation. These gains are concentrated among older and more educated workers, suggesting immigrant workers complement U.S.-born workers and immigrant legalization generates broader local labor market benefits. |
| Keywords: | Legal states, DACA, immigration, geographic mobility, job mobility, occupational licensing, local labor markets |
| JEL: | J15 K37 R23 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:upj:weupjo:24-395&r=ure |
| By: | Haapamäki, Taina; Harjunen, Oskari; Kauhanen, Antti; Kuivalainen, Veeti; Riukula, Krista; Valmari, Nelli; Väänänen, Touko |
| Abstract: | Abstract In economics, the regional densification of economic activity is referred to as agglomeration. The effects of agglomeration are often referred to when discussing the wider economic benefits of transportation infrastructure projects. The magnitude of these effects has not been extensively studied in Finland. In this report, we examine the impact of agglomeration on productivity in the Helsinki region, utilizing extensive registry data. We find that improved job to job accessibility increases employees’ wages. However, our findings concerning the value-added at establishment level are less conclusive and statistically insignificant. Our results suggest that increased accessibility leads to increases in other operating expenses such as rents, potentially explaining the lack of statistically significant effect on value-added. Our results suggest that agglomeration benefits are predominantly intraregional, with interregional accessibility having little impact on these benefits. Thus, the ratio between the agglomeration benefits and the direct benefits of transportation infrastructure projects varies depending on the project. Including these benefits directly to cost-benefit analyses risks double counting some benefits. Taxes and similar payments on increased wages due to accessibility increases could be included as a separate item in the cost-benefit analysis. |
| Keywords: | Agglomeration, Productivity, Transport project, Cost-benefit analysis, Accessibility, Wider economic impacts |
| JEL: | R41 R42 R12 |
| Date: | 2024–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:rif:report:144&r=ure |
| By: | Haiyan Hao; Yan Wang |
| Abstract: | Existing Spatial Interaction Models (SIMs) are limited in capturing the complex and context-aware interactions between business clusters and trade areas. To address the limitation, we propose a SIM-GAT model to predict spatiotemporal visitation flows between community business clusters and their trade areas. The model innovatively represents the integrated system of business clusters, trade areas, and transportation infrastructure within an urban region using a connected graph. Then, a graph-based deep learning model, i.e., Graph AttenTion network (GAT), is used to capture the complexity and interdependencies of business clusters. We developed this model with data collected from the Miami metropolitan area in Florida. We then demonstrated its effectiveness in capturing varying attractiveness of business clusters to different residential neighborhoods and across scenarios with an eXplainable AI approach. We contribute a novel method supplementing conventional SIMs to predict and analyze the dynamics of inter-connected community business clusters. The analysis results can inform data-evidenced and place-specific planning strategies helping community business clusters better accommodate their customers across scenarios, and hence improve the resilience of community businesses. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.04849&r=ure |
| By: | Maré, David C. (Motu Economic and Public Policy Research Trust); Fabling, Richard (Independent Researcher); Hyslop, Dean (Motu Economic and Public Policy Research Trust) |
| Abstract: | Past research finds evidence that workers' labour market outcomes are enhanced if they live in areas with greater job opportunities and employment density. Using two alternative measures of the employment density and job opportunities faced by workers in the local labour market in which they were displaced, this paper analyses their effects on the subsequent migration decisions and labour market outcomes of workers who involuntarily lose their jobs as part of a firm closure or mass layoff event. Our analysis finds only limited support for the spatial mismatch hypothesis. The results imply that workers displaced from jobs in areas with greater employment density or job opportunities are more likely to emigrate, are less likely to be re-employed following layoff and have lower subsequent earnings, although earnings are higher conditional on being employed. However, if employed, workers displaced in areas with more opportunities are less likely to have moved area, but more likely to have changed industry, and have a more similar job to that from which they were displaced. |
| Keywords: | displaced workers, unemployment duration, local labour markets |
| JEL: | J62 J64 R23 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16685&r=ure |
| By: | Fernihough, Alan |
| Abstract: | This paper examines the economic impact of Ireland's partition, assessing market access losses using detailed geospatial data and multimodal transport network analysis. The study reveals that partition significantly reduced market access on both sides of the border, contributing to population decline. Districts closest to the border were the most affected, with estimated population figures being approximately 10 per cent lower than they would have been without the border. This negative impact has persisted, remaining evident despite the reduction of many physical border barriers. A counterfactual analysis suggests that absent the border, the current populations of the Republic of Ireland and Northern Ireland would have been 3 per cent and 5 per cent higher, respectively. These findings illustrate the persistent role of political borders in shaping regional economic activity. |
| Keywords: | Economic Geography, Irish Border, Market Access, Economic History of Ireland |
| JEL: | R12 F15 R11 N94 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:qmsrps:202402&r=ure |
| By: | Francisco, Kris A.; Abrigo, Michael R.M. |
| Abstract: | Electricity serves as a crucial input to many businesses and household activities. As such, the government has historically focused its efforts on expanding the populations’ access to electricity. By contrast, electricity reliability has received less attention from policymakers despite the economic disruption caused by electricity supply interruptions. This paper seeks to deepen the discussion on electricity reliability in the Philippines by providing empirical evidence on the impact of electricity supply interruptions on local economies. Our results show that frequent electricity supply interruptions lead to lower local government income due to reductions in receipts from economic enterprises, business taxes, and real estate taxes. We also found that, consequently, the local government’s ability to provide services related to housing and community development, as well as labor and employment, is constrained, placing the local population at a disadvantage. Comments to this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph. |
| Keywords: | electricity reliability;electricity supply interruptions;local economies |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2023-49&r=ure |
| By: | Alexander Leodolter; Aleksander Rutkowski |
| Abstract: | Mortgage interest tax relief contributes to the favourable tax treatment of owner-occupied housing com-pared to other investments. It thereby creates market distortions and may at the same time often not give rise to its intended effect, namely to increase homeownership. EU country-specific recommendations have asked for a reduction of the relief in Member States, also in view of risks to macroeconomic stability. The paper analyses the effects of removing mortgage interest tax relief on public revenue and expenditure, household disposable income and income inequality in 14 EU Member States with the microsimulation model EUROMOD. It finds that the tax relief largely benefits households at medium to high income levels. Consequently, its removal could help decrease income inequality in almost all Member States. |
| Keywords: | The Fiscal and Distributional Effects of Removing Mortgage Interest Tax Relief in EU Member States, Leodolter, Rutkowski, mortgage interest tax relief, mortgage interest tax deductibility, immovable property, housing, taxation, owner-occupied housing, homeownership tax bias, EUROMOD, simulation, inequality. |
| JEL: | D1 D14 D3 D31 H2 H21 H22 H23 H24 H31 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:euf:ecobri:072&r=ure |
| By: | Jakubowski, Maciej; Gajderowicz, Tomasz; Patrinos, Harry |
| Abstract: | The COVID-19 pandemic resulted in significant disruption in schooling worldwide. This paper uses global test score data to estimate learning losses. It models the effect of school closures on achievement by predicting the deviation of the most recent results from a linear trend using data from all rounds of the Programme for International Student Assessment. Scores declined by an average of 14 percent of a standard deviation, roughly equal to seven months of learning. Losses were greater for students in schools that faced relatively longer closures, boys, immigrants, and disadvantaged students. Educational losses may translate into significant national income losses over time. |
| Keywords: | COVID-19, learning loss, student achievement, PISA, international large-scale assessments |
| JEL: | I19 I20 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1372&r=ure |
| By: | Kalena Cortes; Karen Kortecamp; Susanna Loeb; Carly Robinson |
| Abstract: | This paper presents the results from a randomized controlled trial of Chapter One, an early elementary reading tutoring program that embeds part-time tutors into the classroom to provide short bursts of 1:1 instruction. Eligible kindergarten students were randomly assigned to receive supplementary tutoring during the 2021-22 school year (N=818). The study occurred in a large Southeastern district serving predominantly Black and Hispanic students. Students assigned to the program were over two times more likely to reach the program’s target reading level by the end of kindergarten (70% vs. 32%). The results were largely homogenous across student populations and extended to district-administered assessments. These findings provide promising evidence of an affordable and sustainable approach for delivering personalized reading tutoring at scale. |
| JEL: | I21 I24 I26 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32039&r=ure |
| By: | Randazzo, Teresa (University of Naples Parthenope); Piracha, Matloob (University of Kent) |
| Abstract: | We study the role of immigrant children's ethnic identity in their educational performance and preferences/aspirations in Italy. We find that students with a weak sense of Italian belonging show a low performance in reading and mathematics and higher probability of grade retention. Moreover, children in middle secondary school with a weak sense of Italian identity have a low preference towards academically-oriented high secondary track which normally increases the likelihood of pursuing a university degree. We also find that the intention of immigrant children in high secondary schools to enrol at university decreases if they have a weak Italian identity. We exploit gender heterogeneity finding that females are more adversely affected in their educational aspirations when they have not built a strong sense of Italian identity. Immigrant children will soon form a very important component of the Italian labour force and shedding light on their educational outcomes will help us understand their performance in the Italian labour market better. |
| Keywords: | ethnic identity, educational performance, educational preferences |
| JEL: | F22 J15 I2 Z13 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16739&r=ure |
| By: | Sigal Ribon (Bank of Israel) |
| Abstract: | We examine the interaction between housing-market macroprudential (MaP) measures, monetary policy, and housing market dynamics in Israel. Using a structural VAR, we show that monetary policy and MaP policy react to positive shocks to house prices and to the volume of transactions in the housing market, acting as complementary policies, but do not react to changes in the levels of mortgage debt. We find that MaP measures are tigghtened in response to negative (accomodative) monetary policy shocks, offsetting their effect, while monetary policy only weakly reacts to shocks to MaP measures. Similar to the findings in previous research, contractionary monetary policy and MaP measures tend to mitigate the increase in house prices. Transaction volume declines in response to monetary tightening, and is also reduced in response to MaP measures, after a temporary increase. While monetary policy does not significantly change housing debt, MaP measures do have a mitigating effect on debt after a few periods. Our results are robust to alternative specifications. |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:boi:wpaper:2023.11&r=ure |
| By: | Martin Hodula; Lukas Pfeifer; Ngoc Anh Ngo |
| Abstract: | We analyze how a large-scale easing of borrower-based measures affects residential mortgage credit and borrower characteristics. We exploit a case of the easing of the LTV limit and the complete abolition of DTI and DSTI limits in the Czech Republic in the first half of 2020. Our empirical evidence suggests that the households affected increased their borrowing and purchased more expensive houses while being able to decrease the collateral value. We also document a significant increase in borrowers' debt (service) but this was softened by the concurrent growth in borrowers' income. While exploring the heterogeneity in the transmission of the regulatory easing, we find that: (i) LTV-constrained borrowers showed signs of cash-retention behavior while DTI- and DSTI-constrained borrowers acted in line with the financial accelerator mechanism; (ii) relaxing the LTV limit had a larger effect in poorer districts while the abolition of DTI and DSTI limits affected borrowers in richer regions; (iii) younger borrowers were more affected by the easing of LTV and DTI limits, while the easing of the DSTI limit affected older borrowers; (iv) relaxing the LTV limit affected mostly first-time borrowers while abolishing the DTI and DSTI limits affected mostly second-time borrowers who obtained higher mortgages and purchased more expensive property. |
| Keywords: | Borrower-based measures, household finance, loosening, macroprudential policy |
| JEL: | E58 G21 G28 G51 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:cnb:wpaper:2023/18&r=ure |
| By: | Chen, Natalie; Novy, Dennis; Perroni, Carlo; Wong, Horng Chern |
| Abstract: | Using firm-level data from France, we document that the shift of economic activity from manufacturing to services over the last few decades has been urban-biased: structural change has been more pronounced in areas with higher population density. This bias can be accounted for by the location choices of large services firms that sort into big cities and large manufacturing firms that increasingly locate in suburban and rural areas. Motivated by these findings, we estimate a structural model of city formation with heterogeneous firms and international trade. We find that agglomeration economies have strengthened for services but weakened for manufacturing. This divergence is a key driver of the urban bias, but it dampens aggregate structural change. Rising manufacturing productivity and falling international trade costs further contribute to the growth of large services firms in the densest urban areas, boosting services productivity and services exports, but also land prices. |
| Keywords: | agglomeration; cities; firm sorting; manufacturing; productivity; services; trade costs; ESRC grant ES/S007121/1; ERC TRADENET grant (714597) |
| JEL: | F15 F00 R12 R14 |
| Date: | 2023–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121286&r=ure |
| By: | Claudio Deiana (University of Cagliari and University of Essex); Ludovica Giua (University of Cagliari and University of Essex); Roberto Nisticò (University of Naples Federico II, CSEF and IZA) |
| Abstract: | This paper establishes a new fact about immigration policies: legalization has long- term effects on formal employment of undocumented immigrants and their assimilation. We exploit the broad amnesty enacted in Italy in 2002 together with rich survey data collected in 2011 on a representative sample of immigrant households to estimate the effect of regularization in the long run. Immigrants who were not eligible for the amnesty have a 14% lower probability of working in the formal sector a decade later, are subject to more severe ethnic segregation on the job and display less linguistic assimilation than their regularized counterparts. |
| Keywords: | Undocumented immigrants; Amnesty program; Formal employment; Discrimination; Segregation |
| JEL: | J15 J61 K37 |
| URL: | http://d.repec.org/n?u=RePEc:csl:devewp:480&r=ure |
| By: | Nicolò Gatti; Fabrizio Mazzonna; Raphaël Parchet; Giovanni Pica |
| Abstract: | This paper investigates the impact of opening the labor market to qualified immigrants who hold fully equivalent diplomas as natives and share the same mother tongue. Leveraging the 2002 opening of the Swiss labor market to qualified workers from the European Union, we show that the policy led to a large inflow of young immigrants with highly heterogeneous effects on the wages and employment status of qualified natives. While incumbent natives experienced a wage gain and a decrease in the likelihood of becoming inactive, the opposite happened for young natives entering the labor market after the policy change. |
| Keywords: | qualified immigration, wage effects, worker substitutability, experience |
| JEL: | F22 J08 J31 J61 |
| URL: | http://d.repec.org/n?u=RePEc:csl:devewp:483&r=ure |
| By: | Effrosyni Adamopoulou; Jeremy Greenwood; Nezih Guner; Karen Kopecky |
| Abstract: | The role of friends in the US opioid epidemic is examined. Using data from the National Longitudinal Survey of Adolescent Health (Add Health), adults aged 25-34 and their high school best friends are focused on. An instrumental variable technique is employed to estimate peer effects in opioid misuse. Severe injuries in the previous year are used as an instrument for opioid misuse in order to estimate the causal impact of someone misusing opioids on the probability that their best friends also misuse. The estimated peer effects are significant: Having a best friend with a reported serious injury in the previous year increases the probability of own opioid misuse by around 7 percentage points in a population where 17 percent ever misuses opioids. The effect is driven by individuals without a college degree and those who live in the same county as their best friends. |
| JEL: | C26 D10 I12 J11 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32032&r=ure |
| By: | OECD |
| Abstract: | Private schools cater for around 1 in 5 students from pre-primary to the end of secondary education, a share that has not changed materially since 2015. They enjoy greater autonomy, suffer fewer shortages of all kinds and handled the COVID-19 pandemic better than public schools. Although their students achieved better results in PISA 2022 in many countries, this is mainly because they enrol more students from advantaged socio-economic backgrounds than their public counterparts. The main challenge in many countries today is to increase the social mix in public and private schools, which is why many efforts have been made in this direction over the past decade. |
| Date: | 2024–01–29 |
| URL: | http://d.repec.org/n?u=RePEc:oec:eduaaf:84-en&r=ure |
| By: | Champeaux, Hugues; Gautrain, Elsa; Marazyan, Karine |
| Abstract: | Bride price customs are widespread in many developing countries. While the economic literature has widely investigated the implications of such transfers on women's welfare, little is known about their consequences on men's premarital behavior. In this paper, we exploit a quasi-natural experiment of a school-building program in Indonesia (INPRES) to investigate the relationship between marriage norms and the internal migrations of young men in age to marry. Based on empirical and theoretical settings of the literature, we rely on the effects of the INPRES program on girls' education and the parents' expectations on their daughters' bride price. Combining anthropological, administrative, and individualbased datasets, we implement a triple-difference approach. We find that men with bride price customs were more likely to migrate to areas more economically attractive than their district of origin. In contrast, no evidence exists of such behavior for men from ethnic groups without marriage payments. We interpret these results as evidence for the fact that men migrate to accumulate resources at destination to meet the parents' bride price expectations and marry at home. We also highlight that these migration strategies are implemented by the less advantaged males in their origin marriage market (latter-borns or from lower social class). These findings suggest that the interaction between marital norms and policies can result in unintended consequences, such as increasing premarital migration. |
| Keywords: | migration, marriage market, cultural norms, Indonesia, marriage payments |
| JEL: | I15 J1 J12 O15 Z10 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1375&r=ure |
| By: | Effrosyni Adamopoulou; Jeremy Greenwood; Nezih Guner; Karen Kopecky |
| Abstract: | The role of friends in the US opioid epidemic is examined. Using data from the National Longitudinal Survey of Adolescent Health (Add Health), adults aged 25-34 and their high school best friends are focused on. An instrumental variable technique is employed to estimate peer effects in opioid misuse. Severe injuries in the previous year are used as an instrument for opioid misuse in order to estimate the causal impact of someone misusing opioids on the probability that their best friends also misuse. The estimated peer effects are significant: Having a best friend with a reported serious injury in the previous year increases the probability of own opioid misuse by around 7 percentage points in a population where 17 percent ever misuses opioids. The effect is driven by individuals without a college degree and those who live in the same county as their best friends. |
| Keywords: | opioid, peer-group effects, friends, instrumental variables, Add Health, severe injuries. |
| JEL: | C26 D10 I12 J11 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2024_493&r=ure |
| By: | Sarah McNamara; Guido Neidhoefer; Patrick Lehnert |
| Abstract: | We estimate intergenerational mobility of education for people born 1940-1999 at the subnational level for 40 European countries. The result is a panel of mobility indices for 105 mesoregions (NUTS1), and 215 microregions (NUTS2). We use these indices to make three contributions. First, we describe the geography of intergenerational mobility in Europe. Second, adapting a novel weighting procedure based on cohorts' relative economic contribution, we transform cohort-linked measures into annual measures of intergenerational mobility for each region. Third, we investigate the relationship between intergenerational mobility and innovation, and find robust evidence that higher mobility is associated with increased innovation. |
| Keywords: | Intergenerational Mobility, Equality of Opportunity, Human Capital, Innovation, Regional Economic Performance, Europe |
| JEL: | D63 I24 J62 O15 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:iso:educat:0211&r=ure |
| By: | Ahrens, Achim; Beerli, Andreas; Hangartner, Dominik; Kurer, Selina; Siegenthaler, Michael |
| Abstract: | This paper investigates whether employment restrictions contribute to refugees having poorer labor market outcomes than citizens. Utilizing linked register data from Switzerland and within-canton policy variation between 1999-2015, we find substantial negative effects on employment and earnings when refugees are barred from working upon arrival, excluded from specific sectors or regions, or face resident prioritization. Removing 10% of refugees' outside options reduces job-to-job mobility by 7.5% and wages by 3.0%, widening the wage gap to citizens in similar jobs. The restrictions depress refugees' labor market outcomes even after they apply, but do not spur emigration nor benefit other immigrants. |
| Date: | 2024–01–09 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:bqjn2&r=ure |
| By: | Reis, Julius; Grebe, Leonard; Schiereck, D.; Hennig, Kerstin |
| Abstract: | This study contributes to the ongoing debate on the persistence of stock market anomalies in equity markets (McLean and Pontiff, 2016; Jacobs and Müller, 2020) and concentrates on the day-of-the-week effect in the European real estate sector. Interest payments and settlement effects were discussed as the main factors to explain this anomaly in the past. Today the persistence is highly questionable concerning the dynamically adjusting economic and institutional environment. While previous research indicated a significant Monday and Friday effect in other sectors, literature can only support a Friday effect for real estate. Furthermore, the real estate sector has a lower level of mispricing, which makes it more difficult for an anomaly to survive (Bampinas et al., 2016). The data is splitted in three ten-year periods to analyze the effect's existence over the long term. Applying OLS and GARCH models, results reveal an evolution in a significant Friday effect for cross-country indices (Europe and Global). From 1990 to 2000, the effect is weak but significant. It gains in importance during the period 2000 to 2009. In the final period until 2020, the anomaly weakens again but does not disappear for cross-country indices. From a country-specific perspective, there is no pattern in the significance of the day-of-the-week effect. The real estate sector has a local business character. Therefore, countryspecific effects are possible, but a pattern is not found. In conclusion, there is still a day-of-the-week effect in the real estate sector in Europe from a cross-country perspective. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:141998&r=ure |
| By: | Cortes, Patricia (Boston University); Feng, Ying (National University of Singapore); Guida-Johnson, Nicolás (Pontificia Universidad Javeriana); Pan, Jessica (National University of Singapore) |
| Abstract: | We examine the differential effects of automation on the labor market and educational outcomes of women relative to men over the past four decades. Although women were disproportionately employed in occupations with a high risk of automation in 1980, they were more likely to shift to high-skill, high-wage occupations than men in over time. We provide a causal link by exploiting variation in local labor market exposure to automation attributable to historical differences in local industry structure. For a given change in the exposure to automation across commuting zones, women were more likely than men to shift out of routine task-intensive occupations to high-skill, high wage occupations over the subsequent decade. The net effect is that initially routine-intensive local labor markets experienced greater occupational gender integration. College attainment among younger workers, particularly women, also rose signicantly more in areas more exposed to automation. We propose a model of occupational choice with endogenous skill investments, where social skills and routine tasks are q-complements, and women have a comparative advantage in social skills, to explain the observed patterns. Supporting the model mechanisms, areas with greater exposure to automation experienced a greater movement of women into occupations with high social skill (and high cognitive) requirements than men. |
| Keywords: | automation, gender, occupational segregation, gender skill gap |
| JEL: | J16 J24 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16695&r=ure |
| By: | Casabianca, Elizabeth; Kovacic, Matija |
| Abstract: | This paper investigates the relationship between historically rooted norms that drive individ- uals to adhere to predeftned behavioural standards and attitudes towards loneliness. Focusing on a sub-population of second-generation immigrants, we identify an intergenerationally trans- mitted component of culture that respects the importance of restrained discipline and rules characterising highly intensive pre-industrial agricultural systems. We illustrate how this cul- tural dimension impacts perceptions of the quality of social relationships and plays a substantial role in the likelihood of experiencing loneliness. Subsequently, we show the validity of the iden- tifted trait as an instrument for loneliness in a two-stage model for health. We also ftnd that loneliness has a direct impact on body mass index and speciftc mental health issues, with these results being robust across a range of sensitivity checks. These ftndings contribute to the grow- ing body of research emphasising the pivotal role of attitudes in predicting signiftcant economic and health outcomes, thus opening up a new pathway through which deeply-rooted geograph- ical, cultural, and individual characteristics can influence comparative economic development processes in both origin and destination countries. |
| Keywords: | loneliness, ancestral characteristics, social norms, health |
| JEL: | I12 I14 J14 D91 Z13 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1378&r=ure |
| By: | René Böheim (WIFO); Rainer Eppel (WIFO); Helmut Mahringer (WIFO) |
| Abstract: | We analysed a new counselling and support programme for people with low employment prospects in Austria. The Austrian Public Employment Service introduced regional pilots to investigate whether a new counselling strategy could improve labour market outcomes for this group. Eligible unemployed individuals could opt for third-party counselling and support, access a wide range of low-threshold services, and focus on personal stability rather than job placement. The goal was to achieve similar or even better labour market outcomes at lower cost. By comparing pilot and control regions, we found that introducing the offer resulted in higher costs without improving labour market outcomes. |
| Keywords: | Long-Term Unemployment, Active Labour Market Policy, Public employment service, Counselling, Job placement |
| Date: | 2024–01–22 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2024:i:672&r=ure |
| By: | Albert, Jose Ramon G.; Vizmanos, Jana Flor V.; Muñoz, Mika S.; Basillote, Lovelaine B.; Alinsunurin, Jason, P.; Hernandez, Angelo C. |
| Abstract: | The Global Goal of ensuring inclusive and equitable quality education and promoting lifelong learning opportunities for all promotes equality in access to quality learning, supports economic development, improves health outcomes, empowers women and girls, and fosters global citizenship and peace. By reducing inequities in education, both in terms of access and quality, we can help to build a more equitable, prosperous, and sustainable world. This study provides a detailed examination of the progress of the Philippines in achieving Sustainable Development Goal 4 (SDG4) on quality education and lifelong learning opportunities for all. It sets the stage by outlining the Philippine educational policy landscape, including its legal and institutional frameworks. The analysis then progresses to a target-by-target review of SDG 4, highlighting the nation's accomplishments and ongoing challenges. Notable achievements include nearly universal primary education enrollment and increased secondary education participation. However, issues like high dropout rates and subpar learning outcomes remain. The Philippines has also seen growth in early childhood development (ECD) and pre-primary education enrollments, yet access for disadvantaged children is still limited. The country has policies to enhance access to affordable technical, vocational, and higher education, but the quality of these programs and their alignment with future skills needs improvement. Inclusive education initiatives exist, such as programs for learners with disabilities and indigenous communities, but challenges in ensuring universal quality education persist. A shift in education outcomes in favor of girls is observed, with boys now more likely to drop out than girls across various educational levels and girls doing better than boys in learning. While literacy rates appear high, the need to redefine literacy measurements, considering issues like digital skills, is evident. Progress in school infrastructure development is significant, especially with the K-12 rollout, but enhancing learning environments, including using technology for learning, remains crucial. The Philippines boasts a large teaching workforce, yet there is a pressing need to elevate teacher training quality and align it with future skill requirements. The study pinpoints critical improvement areas, including addressing the root causes of learning deficits, implementing an open data policy, and refining teacher training and workload. Concluding with a call to action, the study underscores the necessity of a comprehensive strategy to tackle educational challenges holistically, with integrated planning among the three main government agencies tasked to manage the sector. It suggests developing specific targets for inclusive quality education. This comprehensive review offers valuable insights and practical recommendations for stakeholders to ensure the Philippines fulfills its commitment to quality education for all by 2030. Comments to this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph. |
| Keywords: | education;basic education;higher education;TVET;quality education;technical and vocational education and training |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2023-16&r=ure |
| By: | Cuccu, Liliana; Royuela, Vicente; Scicchitano, Sergio |
| Abstract: | This paper investigates the surge in Involuntary Part-Time (IPT) employment in Italy from 2004 to 2019, exploring its impact on various socio-economic groups and adopting a spatial perspective. Our study tests the hypothesis that technological shifts, specifically routine biased technological change (RBTC), and the expansion of household substitution services contribute to IPT growth. We uncover a widening negative gap in IPT prevalence among marginalized groups - women, young, and less skilled workers. After controlling for sector and occupation, the higher IPT propensity diminishes but remains significant, hinting at persistent discrimination. Additionally, segregation into more exposed occupations and sectors intensifies over time. Leveraging province-level indicators, and using a Partial Adjustment model, we find support for RBTC's correlation with IPT, especially among women. The impact of household substitution services is notably pronounced for women, highlighting sector segregation and gender norms' influence. |
| Keywords: | Involuntary part-time, Precarisation of labour, Automation |
| JEL: | J21 J24 O33 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1374&r=ure |
| By: | Alrababah, Ala; Beerli, Andreas; Hangartner, Dominik; Ward, Dalston |
| Abstract: | The main theories explaining electoral backlash against immigration give centrality to citizens' cultural, economic, and security concerns. We test these predictions in Switzerland, which opened its labor market to neighboring countries in the 2000s. Using a difference-in-differences design, we document that immigration to Swiss border municipalities increased substantially after the borders opened, followed by a more than six percentage point (29%) increase in support for anti-immigrant parties. However, we find no adverse effects on citizens' employment and wages nor on their subjective perceptions of economic, cultural, or security threats. Instead, we describe how far-right parties introduced novel threats to increase hostility toward immigrants. Our evidence demonstrates how elite rhetoric targeted border municipalities and had the greatest effects on voters vulnerable to political persuasion. Together, these findings emphasize the role that elites may play in driving anti-immigrant votes. |
| Date: | 2024–01–11 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:hgczq&r=ure |
| By: | Maggie Isaacson; Cassandra Marks; Lowell R. Ricketts; Hannah Rubinton |
| Abstract: | During the COVID pandemic there were unprecedented shortfalls in immigration. At the same time, during the economic recovery, the labor market was tight, with the number of vacancies per unemployed worker reaching 2.5, more than twice its pre-pandemic average. In this paper, we investigate whether these two trends are linked. We do not find evidence to support the hypothesis that the immigration shortfalls caused the tight labor market for two reasons. First, at the peak, we were missing about 2 million immigrant workers, but this number had largely recovered by February 2022 just as the labor market was becoming tight. Second, states, cities, and industries that were most impacted by the immigration restrictions did not have larger increases in labor market tightness. We build a shift-share instrument to examine the causal impact of the immigration restrictions and still find no evidence to support the hypothesis that the immigration restrictions were the underlying cause of increased labor market tightness. |
| Keywords: | immigration; labor market tightness; COVID-19; wages |
| JEL: | J20 J40 J61 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedlwp:97626&r=ure |
| By: | Fiorio, Grégory; Garfield, Zachary H |
| Abstract: | In many societies, third parties may be held liable to punishment even though they did not take part in the original offence. These retributive practices, commonly referred to under the label of social substitutability, are frequently documented in the historical and ethnographic records. While previous cross-cultural research has focused on blood feuds and retributive collective violence, less attention has focused on explaining why and when third parties would be punished for offences they did not commit. We review research on social substitutability, attempt at clarifying the hypothesis space to account for its cognitive and ecological underpinnings, and offer a preliminary account for its cross-cultural variation. We integrate existing society-level measures from cross-cultural data to investigate the socioecological covariates of social substitutability. Our results suggest that systematic enforcement of social substitutability is more likely to be documented in kinship intensive societies, yet shows no substantial variation across subsistence types and continental regions. Moreover, we fail to find clear evidence that residence patterns facilitating the emergence of fraternal interest groups favor the emergence of social substitutability. Taken together, our review and results suggest that a closer understanding of local social networks and organizations may be a fruitful way to unravel cross-cultural variability in the propension to punish uninvolved third parties. |
| Date: | 2024–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:kt5ws&r=ure |
| By: | Fabio Pieri; Massimiliano Vatiero |
| Abstract: | This paper investigates the role of the market for knowledge in shaping firm hierarchy—that is, the span of control and the number of layers. We predict that, the larger the extent of the market for knowledge, the larger the span of control and the fewer the layers. We test our predictions using a rich database representing industrial firms in Italy during 2005-2018. Our identification strategy is based on existing cross-regional and cross-industry heterogeneity within the extent of the market for business services’ providers and instrumental variables. Results confirm that firms are flatter as the regional market for knowledge expands. |
| Keywords: | firm hierarchy, number of layers, span of control, market for knowledge |
| JEL: | D21 D22 D23 L22 L23 |
| URL: | http://d.repec.org/n?u=RePEc:csl:devewp:482&r=ure |
| By: | Raimi, Daniel (Resources for the Future); Davert, Elena; Neuenfeldt, Haley; Van Zanen, Amy; Whitlock, Zachary (Resources for the Future) |
| Abstract: | Fossil fuels are the primary contributor to global climate change, and efforts to reach net-zero emissions will require a dramatic curtailment of their extraction and use. However, fossil fuels fund public services at all levels of government, and research has not assessed whether clean energy sources can provide similar scales of revenue. In this paper, we analyze a novel dataset that we have assembled on how fossil fuels and renewable energy contribute to local governments in 79 US counties across 10 states. Revenues from fossil fuels far outweigh renewables in aggregate terms, providing more than $1, 000 per capita annually in dozens of counties. However, wind and solar in some states generate more local public revenue than fossil fuels per unit of primary energy production. In most counties that depend heavily on fossil fuels for local revenues, solar—but not wind—has the technical potential to replace existing fossil fuel revenues, but this would require dedicating implausibly large portions of developable land (in some cases, more than half) to solar. For counties with less reliance on fossil fuels, wind and solar can more plausibly replace fossil fuel revenue streams. This finding suggests that while renewable energy will provide new revenue streams for communities, fossil fuel–dependent regions will need to build new tax bases well beyond wind and solar, develop other sources of revenue, or risk a decline in public service provision. |
| Date: | 2024–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-24-01&r=ure |
| By: | Chihiro Shimizu; Yongheng Deng; Tomoo Inoue; Kiyohiko Nishimura |
| Abstract: | Many developed countries have experienced prolonged economic stagnation in the aftermath of property bubbles bursting. Such observations have led people to believe that economic stagnation accompanied by property bubbles has longer and more severe consequences than other forms of economic stagnation. This study conducts an empirical analysis to challenge this hypothesis and suggest that demographics are closely related to other aspects of long-term economic stagnation. Using panel data from 17 countries from 1974 to 2018, we investigate the residential property price dynamics by incorporating demographic factors and considering the interaction of those demographics with credit conditions. Our results shed new light on the importance of demographic factors in modeling the long-run equilibrium of residential property prices. We find that the effect of nominal interest rates determined by monetary policy on asset prices varies depending on the country and the degree of population aging at the time. We also find that persistently optimistic population projections lead to the over-supply of residential stocks in rapidly aging countries, resulting in stagnant residential property markets. We demonstrated that ignoring the demographic and credit factors in the dynamics may lead to misjudgment of the long-run equilibrium conditions and incorrect policy decisions.Length: 36 pages |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:tcr:wpaper:e198&r=ure |
| By: | Hosseini, S A Hamed (The University of Newcastle) |
| Abstract: | This paper introduces a novel survey questionnaire designed by S A Hamed Hosseini, aimed at assessing the quality of life of Muslims in regional Australia. The development of this survey is guided by the conceptual framework of the “Well-Living Paradigm, ” as outlined in Hosseini’s 2023 article. This paradigm forms the basis for a comprehensive exploration of various life aspects including socio-economic status, religious practices, health, social networks, and experiences of discrimination among the Muslim community. The questionnaire is unique in its methodical organization and holistic approach, encompassing a range of topics to ensure a thorough understanding of the quality of life from multiple perspectives. This survey operationalizes the new paradigm by structuring questions around its four essential components (objective, subjective, intersubjective, and transsubjective) and dimensions (individual, household, community, and broader society). Each section of the questionnaire is carefully crafted to reflect the key concepts and themes of the paradigm, facilitating data collection that is theoretically aligned and contextually relevant. The survey also incorporates innovative elements, with most questions being developed anew, while others are adapted from established sources like the World Values Survey project. While the survey is specifically tailored for Muslims in regional Australia, its principles can be effectively applied in different settings, necessitating diverse research tools and approaches. This adaptability is balanced with caution against the over-reliance on positivist methodologies. The paradigm advocates a balanced integration of quantitative and qualitative methods within the critical realist ontological and epistemological frameworks. This approach ensures that the data analysis remains deeply connected to and informed by the theoretical underpinnings of the paradigm, thereby guaranteeing empirically sound and philosophically consistent research outcomes. |
| Date: | 2023–12–13 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:2fmhc&r=ure |
| By: | Benoit Decerf; Guillaume Haeringer; Martin Van der Linden |
| Abstract: | Mandatory clearinghouse participation is a standard setting in many school districts, and students can appeal (block) their assignments only with a valid reason. When students do not observe the assignments of other students, claims relying on justified envy are hard to establish. A student's appeal is said to be legitimate if there is no profile of preferences of the other students that can rationalize the student's assignment, and an assignment is incontestable if no student has a legitimate complaint. Incontestability is shown to be equivalent to individual rationality, non-wastefulness, and respect for top-priority sets. This latter property is a weakening of non-justified envy that relates to Hall's marriage theorem. We show that any stable mechanism is incontestable, as well as any mechanism that Pareto dominates a stable mechanism. The Top-Trading Cycle mechanism and some of its variants are incontestable (but Boston is not). Incontestable mechanisms are i-indinstiguishable (Li, 2017), and share many similar incentive properties. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.03598&r=ure |
| By: | Murat, Marina |
| Abstract: | This paper investigates whether citizenship of immigrant students in the host country influences their choice of majors, and whether these effects differ by gender. Using detailed students' data from an Italian university, combined with characteristics of the countries of origin, I examine the effects of citizenship on enrolments in educational areas categorized by their mathematical content. Results indicate a decrease in the likelihood of enrolment in math-intensive fields among students who acquire citizenship, particularly among males, leading to a reduction in gender gaps. Moreover, gender gaps are smaller and show a more pronounced decrease with citizenship as gender inequality in countries increases. Results are corroborated by matching and instrumental variables strategies. These findings shed light on the existence of trade-offs between empowerment, as manifested through citizenship, and major choices. |
| Keywords: | Citizenship, immigrants, higher education, math, gender gaps, gender inequality |
| JEL: | I23 I24 I25 J16 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1370&r=ure |
| By: | Aleksei Novitskii; Ilya Shevchenko (Federal Autonomous Scientific Institution «Eastern State Planning Centre») |
| Abstract: | The article examines the dynamics of the main parameters of the execution of consolidated budgets in the regions of the Russian Far East in 2022 and for 7 months of 2023. In 2022, the main result in the regions of the Far East was the reduction of budget revenues in real terms. In terms of the total volume of budget revenues, as well as the volume of tax and non-tax revenues, the dynamics of revenues in most Far Eastern regions was worse than the average for Russia. With regard to interbudgetary transfers from the federal budget, the rates of revenue decline, on the contrary, were less abrupt. In the first half of 2023, there was an improvement in the dynamics of budget revenues compared to the corresponding period of 2022, however, according to the approved budget estimates, the situation with budget balance remains tense. As of August 1, 2023, in most Far Eastern constituent entities of the Russian Federation, budgets are approved with a significant level of deficit. At the same time, the adjustments made at the federal level to the methodology for distributing equalization grants to constituent entities indicate a tendency to reduce subsidies to the Far Eastern regions in the coming years. |
| Keywords: | regional budget, Far Eastern Federal District, budget revenues, government debt, federal grants |
| JEL: | H70 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:aln:wpaper:350-00001-23/4&r=ure |
| By: | Fletcher, Jason; Grodsky, Eric; Jajtner, Katie |
| Abstract: | Education can break the intergenerational cycle of disadvantage but, like socioeconomic status, education is also persistent across generations (Fletcher & Han, 2019; Hertz et al., 2007). This persistence can erode the power of education to fuel the mobility prospects of members of some groups relative to others. To describe variation in the mobility-enhancing potential of education, we examine sex and racial/ethnic patterns in intergenerational education mobility. Results suggest women unambiguously experience better mobility outcomes relative to males; however, patterns by race/ethnicity are less clear. Although there is evidence of some differentiated education mobility by race/ethnicity, estimates often lack precision. Among males, upward mobility is relatively consistent across race/ethnicity. Downward mobility appears highest among non-Hispanic Black and Hispanic Americans and lower among Asian Americans relative to non-Hispanic White American males. Females have less evidence of differentiated education mobility across race/ethnicity. Contextual correlates at the individual and spatial levels tend to reveal less upward mobility and more downward mobility for disadvantaged groups; however, certain mobility metrics do not offer consistent findings. |
| Date: | 2024–01–19 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:q495t&r=ure |
| By: | Bellodi, Luca (Bocconi University); Docquier, Frédéric (LISER); Iandolo, Stefano (University of Salerno); Morelli, Massimo (Bocconi University); Turati, Riccardo (Universitat Autònoma de Barcelona) |
| Abstract: | We study the effect of local exposure to populism on net population movements by citizenship status, gender, age and education level in the context of Italian municipalities. We present two research designs to estimate the causal effect of populist attitudes and politics. Initially, we use a combination of collective memory and trigger variables as an instrument for the variation in populist vote shares across national elections. Subsequently, we apply a regression discontinuity design to estimate the effect of electing a populist mayor on population movements. We establish three converging findings. First, the exposure to both populist attitudes and policies, as manifested by the vote share of populist parties in national election or the closeelection of a new populist mayor, reduces the attractiveness of municipalities, leading to larger population outflows. Second, the effect is particularly pronounced among young, female, and highly educated natives, who tend to relocate across Italian municipalities rather than internationally. Third, we do not find any effect on the foreign population. Our results highlight a foot-voting mechanism that may contribute to a political polarization in Italian municipalities. |
| Keywords: | migration, human capital, populism, Italian politics |
| JEL: | D72 F22 F52 J61 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16732&r=ure |
| By: | Gabriele Di Filippo |
| Abstract: | This paper presents a new database of direct investment positions held through captive financial institutions (CFIs) in Luxembourg that are owned by (resident and non-resident) investment funds focusing on private equity or real estate. Compared to Di Filippo (2023), the new database is more comprehensive as it includes smaller CFIs with less than 500 million euros in total assets. Over 2011-2021, intra-Luxembourg investment positions were larger than foreign direct investment (FDI) positions (both inward and outward). Most of these intra-Luxembourg investment positions arise because investment funds use Luxembourg CFIs to structure their holdings and acquisitions across the globe. In 2021, only about 1% of the inward FDI position held through these CFIs is ultimately invested in targets located in Luxembourg. The outward FDI position held through these CFIs is invested in private companies (65%) or real estate assets (35%). While most investment fund sponsors are headquartered in the United States or in the United Kingdom, investment targets are mostly in Western Europe, with a focus on the euro area. Outward FDI in private equity targets companies that are quite dispersed across economic activities. In 2021, "Information, telecommunications and computer services" have the largest share (17%), followed by "Electricity, gas, water supply, recycling" (12%) and "Chemicals and non-metallic mineral products" (10%). Outward FDI in real estate is more concentrated by property type, with 45% in commercial buildings (office and retail properties), 24% in industrial buildings (in particular logistics properties) and 15% in residential properties. Targets in Luxembourg are mostly companies operating in finance and insurance activities (private equity) or office properties (real estate). |
| Keywords: | Foreign direct investment, Captive financial institutions and money lenders, Sector S127, Investment funds, Private equity, Real estate |
| JEL: | C80 C81 F23 F30 G23 G32 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:bcl:bclwop:bclwp181&r=ure |
| By: | Maximiliano Dvorkin; Cassandra Marks |
| Abstract: | Both state-level data and individual-level data suggest that periods with low unemployment rates are also periods with more rapid wage growth, an analysis finds. |
| Keywords: | unemployment; wage growth |
| Date: | 2024–01–16 |
| URL: | http://d.repec.org/n?u=RePEc:fip:l00001:97622&r=ure |
| By: | Federico S. Mandelman; Yang Yu; Francesco Zanetti; Andrei Zlate |
| Abstract: | We document a slowdown in low-skilled immigration that began around the onset of the Great Recession in 2007, which was associated with a subsequent rise in low-skilled wages, a decline in the skill premium, and labor shortages in service occupations. Falling returns to education also coincided with a decline in the educational attainment of native workers. We then develop and estimate a stochastic growth model with endogenous immigration and training to rationalize these facts. Lower immigration leads to higher wages for low-skilled workers but also to higher consumer prices and lower aggregate consumption. Importantly, the decline in the skill premium reduces the incentive to train native workers and hurts aggregate productivity over time, which reduces welfare. We assess the implications of stimulus policies implemented during the COVID-19 pandemic and show that the shortage of low-skilled immigrant labor amplified the increase in consumer prices, partially eroding the effectiveness of stimulus. |
| Keywords: | international labor migration; skill premium; task upgrading; heterogeneous workers |
| JEL: | F16 F22 F41 |
| Date: | 2024–01–16 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedawp:97633&r=ure |
| By: | Grishina, Irina (Гришина, Ирина) (The Russian Presidential Academy of National Economy and Public Administration); Shkuropat, Anna (Шкуропат, Анна) (The Russian Presidential Academy of National Economy and Public Administration); Kotov, Alexandr (Котов, Александр) (The Russian Presidential Academy of National Economy and Public Administration); Filatov, Artemiy (Филатов, Артемий) (The Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | The relevance of the work undertaken in RANEPA in 2022 is due to the fact that the national goals of socio-economic development of Russia for the period up to 2030, defined by the Decree of the President of the Russian Federation dated 21.07.2020 N 474, are formulated taking into account the tasks of achieving the global sustainable development goals (SDGs) of the UN. A prerequisite for their implementation is participation of the regions in the process. Localization of the SDGs in line with the new international approaches will strengthen the sustainability of regional policies and cooperation. The subject of the study is new methodology for assessing the achievement of the SDGsfor the regions of the Russian Federation. The purpose of the work is to develop a methodology for assessing the achievement of the UN SDGs by the regions of Russia to clarify the priority areas of regional policy and is based on the following tasks undertaken: analysis of the experience of developed countries in developing an approach and assessing the achievement of SDGs at the level of regions of the second territorial level (according to the OECD classification); analysis of domestic experience in assessing the achievement of SDGs at different levels (national and regional); substantiation of the composition of indicators and methodological approach to assessing the achievement of SDGs at the regional level; formation of an information base for assessing the achievement of SDGs in the regions of the Russian Federation; approbation of the methodology; development of recommendations on priorities for the implementation of Russia's regional policy, based on estimates of indicators for achieving the SDGs. The scientific novelty of the work is determined by the fact that for the first time a new composite index has been developed to assess the achievement of the SDGs in the regions of Russia, based on a system of indicators, consistent with the national goals of Russia until 2030. On its basis, experimental assessments have been obtained that allow for interregional comparisons. Research methods applied: system, factor and statistical analysis of the distribution of indicators; index method, etc. Research results can be used to: clarify priorities and develop regional policy mechanisms that ensure the achievement of the UN Sustainable Development Goals in the regions of Russia, as well as the achievement of the country's national development goals until 2030 in territorial dimension. The application of the authors’ approach is recommended for information and methodological support of the state regional policy development to increase its effectiveness. |
| Keywords: | UN Sustainable Development Goals, national development goals, regions of Russia, methods of assessing the achievement of goals, composite indices, methodology, comprehensive assessment, methodology of analysis |
| JEL: | R11 R12 R13 R58 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:w20220310&r=ure |
| By: | Shevelova, Anastasia; Melnyk, Anna; Motliuk, Mark |
| Abstract: | This study delves into the determinants of academic success among students at the Kyiv School of Economics, exploring the influence of various factors on their academic performance. Drawing upon a sample of 72 participants, encompassing both bachelor's and master's students, this research investigates the impact of participation, attendance, confidence levels, social media usage, and the relevance of work spheres on students' Grade Point Average (GPA). Employing multivariate linear regression analysis, the study uncovers various insights, revealing that active class engagement, high attendance rates, strong self-belief, limited social media use, and relevance of work to studies significantly correlate with higher GPA scores. Notably, factors like active participation and confidence in academic capabilities emerge as more consistent and robust predictors of academic success than others, echoing the nuanced interplay between various determinants and GPA outcomes. These findings offer valuable implications for educational strategies, suggesting avenues for fostering a conducive academic environment, particularly at KSE while advocating for further exploration into the multifaceted nature of academic success in diverse educational settings. |
| Keywords: | Academic performance, GPA, Multivariate linear regression, Determinants of academic success |
| JEL: | A1 C83 I21 |
| Date: | 2023–01–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119700&r=ure |
| By: | Kyle Fee |
| Abstract: | Turnover is a particular problem among childcare workers and less so among preschool and kindergarten teachers. In 2022, turnover in childcare work was about 65 percent higher than in a typical job, while attrition among preschool and kindergarten teachers was on par with the typical occupation. |
| Keywords: | workforce develoment; education; childcare; Labor turnover |
| Date: | 2024–01–19 |
| URL: | http://d.repec.org/n?u=RePEc:fip:c00034:97641&r=ure |