|
on Urban and Real Estate Economics |
| By: | Francesco Agostinelli; Margaux Luflade; Paolo Martellini |
| Abstract: | We define educational access as the component of a neighborhood's value that is determined by the set of schools available to its residents. This paper studies the extent to which educational access is determined by sorting based on heterogeneous preferences over school attributes, or local institutions that constrain residential location and school choice---such as school catchment areas and housing regulation. We develop a spatial equilibrium model of residential sorting and school choice, estimated using data from a large school district in the United States. The model replicates the responses of house prices and school enrollment to quasi-experimental variation in school peer composition and school transportation provision. We find that low-income families prioritize proximity to schools while high-income families and families with high-skilled children place more value on school peer composition. We use the model to evaluate how the geography of neighborhood sorting influences the aggregate and distributional outcomes of a school-choice expansion (place-based) and a housing voucher (people-based) policy. We find that both policies result in net welfare losses, with only marginal improvements in school peer composition for the average low-income family. Although eligible families benefit from these policies, the negative impact falls on families who currently invest in their children's education by residing in expensive neighborhoods. Under both policies, higher-income families are less exposed to the inflow of low-income children into their schools, either because of their longer distance from target neighborhoods or because of the cost imposed by residential zoning regulation on voucher recipients. |
| JEL: | I24 J13 R23 R31 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32246&r=ure |
| By: | Ramón Rey; Günther G. Schulze; Nikita Zakharov |
| Abstract: | This paper investigates the effect of Venezuelan transit migration on crime rates in Colombia. We exploit the reopening of the Venezuela-Colombia border in 2016, which has led to a surge in transit migration, and geospatial information about the distinct routes through which the migrants crossed Colombia. Employing a difference-in-differences approach and propensity score matching, we find that transit migration increased property crime rates in crossed municipalities, with both native Colombians and Venezuelan refugees seeing higher victimization rates. Violent crimes remained unaffected. This is the first study to document a link between transit migration and crime. |
| Keywords: | transit migration, crime, migration |
| JEL: | K42 F22 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10953&r=ure |
| By: | , Marcin Wozniak (Adam Mickiewicz University, Poznan, Poland); Radzimski, Adam; Wajchman-Świtalska, Sandra |
| Abstract: | Enhancing quality of life in contemporary cities hinges on convenient access to parks and forests, offering avenues for physical activity and social engagement, as well as benefits for mental health and opportunities for educational pursuits. This comprehensive study delves into the accessibility to parks and forests across 33 major European cities, employing an interdisciplinary framework drawing from transportation and urban planning methodologies. By analyzing accessibility to urban green spaces (UGS) through sustainable modes of transportation, the research aims at unveiling patterns shaped by population density, terrain elevation, city area and transportation infrastructure. Notably, disparities in accessibility emerge both within and between cities, with urban parks, typically nestled in city centers, exhibiting more equitable accessibility compared to forests, often situated on the outskirts. Further results show that the area of UGS, road network density, public transit availability, and elevation gradients influence parks and forests accessibility with different strengths and in different configurations, unveiling the complexity of green space distribution within urban landscapes. Across transportation modes, disparities in accessibility are most pronounced for pedestrians, accentuating the need for targeted interventions to bridge the gaps. The study also emphasizes the significance of discerning qualitative distinctions among diverse green spaces, advocating for tailored strategies in UGS planning. Acknowledging the pivotal role of parks in augmenting UGS accessibility, particularly in densely populated areas and for short-distance journeys, the paper underscores the urgency of fair provision. Finally, this research furnishes insights for policymakers and urban planners committed to fostering inclusive, healthy and sustainable urban environments. |
| Date: | 2024–03–12 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:hcwgp&r=ure |
| By: | Mauro Bucci (Bank of Italy); Luigi Gazzano (Bank of Italy); Elena Gennari (Bank of Italy); Adele Grompone (Bank of Italy); Giorgio Ivaldi (Bank of Italy); Giovanna Messina (Bank of Italy); Giacomo Ziglio (Bank of Italy) |
| Abstract: | This paper proposes a set of indicators to measure the quality and availability of school infrastructure at the local level, based on information from the Italian school building register (Anagrafe dell’edilizia scolastica, ANAES). The indicators are calculated for each municipality and level of education (from pre-school to upper secondary) and cover several aspects (morphology, functionality, location); an innovative analysis is performed to obtain a measure of potential demand for school services, breaking down the local population by age and average travel time by car, to identify local shortcomings in the availability of school infrastructure. The indicators are also matched with a number of learning progress measures to assess the preliminary and purely descriptive impact of the quality and availability of school buildings on learning processes. |
| Keywords: | education, school infrastructure |
| JEL: | I20 H52 H54 H75 R53 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_827_24&r=ure |
| By: | Charles Ka Yui Leung |
| Abstract: | This short article provides a quick summary of an urban perspective of the real estate markets. Some new developments are also discussed. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:dpr:wpaper:1234&r=ure |
| By: | Gan Jin; Günther G. Schulze |
| Abstract: | Can colonialism affect today’s urban outcomes? This paper examines the long-run impact of Concessions - foreign-run enclaves established in the late nineteenth century inside Chinese cities by European settlers for residence and investment purposes. They soon became the new economic hubs of their hosting cities. By using a unique dataset of geo-referenced apartment transactions and by employing a spatial regression dis-continuity approach to identify the causality, we find that apartments located inside historical Concession areas command a price premium of 17% compared to similar homes just outside of the Concession boundaries. We show that the long-run economic effect of Concessions may be explained by better access to urban facilities in these areas. |
| Keywords: | colonialism, housing price, urbanization, persistence, China |
| JEL: | N95 O18 O43 P48 R50 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10976&r=ure |
| By: | Aksoy, Cevat Giray (European Bank for Reconstruction and Development); Khanna, Gaurav (University of California, San Diego); Marino, Victoria (EBRD, London); Tumen, Semih (Amazon) |
| Abstract: | How does violence in origin areas affect the educational outcomes of refugees in their destinations? Using administrative panel data, we find that heightened violence in the hometowns of Syrian students leads to improvements in their school outcomes in Türkiye. Turkish language and Math scores of refugee students improve, with larger impacts on Turkish scores. There is no impact on naturalized Syrian students. We observe positive spillovers on Turkish students. These findings suggest ongoing violence in refugee-origin areas reduces the prospect of returning home, and induces students to increase their integration effort by investing in education. |
| Keywords: | conflict, forced migration, integration effort, return migration |
| JEL: | J15 I21 I25 F51 O15 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16862&r=ure |
| By: | Zhu, Maria (Syracuse University) |
| Abstract: | This paper examines racial discrepancies in teachers' evaluations of student achievement, conditional on standardized test achievement. After correcting for measurement error in standardized test scores, results indicate teachers evaluate Black students as higher achieving than White students with the same standardized test achievement. This finding stands in contrast to prior findings on Black-White teacher assessment gaps. Further analysis indicates these findings are consistent with two potential explanations: first, standardized tests may exhibit bias against Black students, and second, teachers may inflate assessments of Black students relative to White students due to social desirability bias. |
| Keywords: | teacher assessments, racial bias, standardized tests |
| JEL: | I20 J15 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16815&r=ure |
| By: | Folke, Olle (Department of Political Science, Uppsala University); Martén, Linna (Swedish Institute for Social Research, Stockholm University); Rickne, Johanna (Swedish Institute for Social Research, Stockholm University); Dahlberg, Matz (Institute for Housing and Urban Research, Uppsala University) |
| Abstract: | This paper studies the political economy of local politicians’ residential neighborhoods. We use Swedish data on the location of all politicians’ and citizens’ homes, and their socioeconomic traits. A descriptive analysis shows that politicians live in neighborhoods with more socioeconomically advantaged residents and more of their own party’s voters. Next, we analyze whether having politicians in a neighborhood reduces the likelihood that new buildings are placed there, since these projects often generate local opposition. This analysis compares the neighborhoods of politicians with different degrees of political power and is restricted to close elections. We find that the presence of more politicians with governing power reduces the neighborhood’s proportion of new approved building permits for multifamily homes, but not for single-family homes. The result is most likely explained by undue favoritism. We conclude that spatial political representation matters, and that unequal spatial representation can increase geographic economic inequality. |
| Keywords: | political geography; geographic inequality; proportional representation; local politics; descriptive representation |
| JEL: | R23 |
| Date: | 2024–11–14 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:sofiwp:2023_008&r=ure |
| By: | Zhao, Yuejun (University of Edinburgh); Markussen, Simen (Ragnar Frisch Centre for Economic Research); Røed, Knut (Ragnar Frisch Centre for Economic Research) |
| Abstract: | Can lowering school starting age promote equality of opportunities and reduce the achievement gaps between pupils? We provide evidence on the heterogeneous (positional) effects on early school performance of two mandatory schooling reforms in Norway specifically aimed at reducing achievement gaps based on family background and immigrant status. Whereas the first reform reduced the school starting age from seven to six, the second changed the first-year curriculum from a play-oriented kindergarten pedagogy to a learning-oriented school pedagogy. We apply repeated simple difference models to evaluate the two reforms based on high-quality administrative register data, using children's grade point average (GPA) rank at age 15 to 16 and high school completion at age 21 as the main outcomes. We find no evidence that any of the reforms had the intended effect of reducing socioeconomic achievement gaps or immigrant-native differentials. Both reforms left educational inequalities more or less unchanged. |
| Keywords: | school performance, socioeconomic status, parental earnings, immigrant children, relative age, social mobility |
| JEL: | I24 I28 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16851&r=ure |
| By: | Coskun, Sena (FAU Erlangen Nuremberg); Dauth, Wolfgang (Institut für Arbeitsmarkt- und Berufsforschung); Gartner, Hermann (Institute for Employment Research (IAB), Nuremberg); Stops, Michael (Institute for Employment Research (IAB), Nuremberg); Weber, Enzo (Institute for Employment Research (IAB), Nuremberg) |
| Abstract: | This paper examines how the shift towards working from home during and after the Covid-19 pandemic shapes the way how labor market and locality choices interact. For our analysis, we combine large administrative data on employment biographies in Germany and a new working from home potential indicator based on comprehensive data on working conditions across occupations. We find that in the wake of the Covid-19 pandemic, the distance between workplace and residence has increased more strongly for workers in occupations that can be done from home: The association of working from home potential and work-home distance increased significantly since 2021 as compared to a stable pattern before. The effect is much larger for new jobs, suggesting that people match to jobs with high working from home potential that are further away than before the pandemic. Most of this effect stems from jobs in big cities, which indicates that working from home alleviates constraints by tight housing markets. We find no significant evidence that commuting patterns changed more strongly for women than for men. |
| Keywords: | working from home, commuting, urban labor markets |
| JEL: | J61 R23 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16855&r=ure |
| By: | Thibault Lecourt (AU - Avignon Université, ESPACE - Études des Structures, des Processus d’Adaptation et des Changements de l’Espace - UNS - Université Nice Sophia Antipolis (1965 - 2019) - AU - Avignon Université - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur) |
| Abstract: | In France, municipalities play a crucial role in land use planning. For this purpose, they have three powers at their disposal: a regulatory power that enables them to define the rules of urbanization and building permits; an incentive power through the tax lever, as well as by playing a role as an animator of the local market with calls for projects, co-financing, and communication campaigns; and finally, power through land ownership, which allows control of the location and destination of a development project. The two primary powers in urban development are regulatory and incentive. However, the success of urban development ultimately depends on the willingness of investors to comply with regulations or withdraw from the market. Additionally, land ownership provides greater control over projects and the allocation of land resources. Municipalities and their groups, as the first public owners on the land markets, have significant resources to guide land use planning. However, in the current economic context, public actors are increasingly selling their land assets, thereby depriving themselves of the power of development. This is due to the spread of the neo-liberal management model and resulting austerity policies (Peck, 2012), which are forcing public authorities to reduce their expenditure and generate new revenue. In a context of rising land prices since the 2000s, they are even more tempted to sell their assets. The privatization of public land is a well-documented phenomenon in Canada, the United Kingdom, Italy, and France, mainly concerning state railway and military land (Adisson and Artioli, 2020; Christophers, 2018; Whiteside, 2020). It is important to question the future ability of municipalities to control the development of their territory without land control as landowners. To provide decision-makers with clarity on this matter, this communication proposes an evaluation of the land ownership of the municipal block that could be utilized for development operations. This will be based on an analysis of land-registry tax-based data, known as les Fichiers Fonciers, at the scale of metropolitan France. The initial stage of this work involves outlining the boundaries and contents of municipal land ownership as it is recorded in the land registry. Municipalities may directly own land parcels, or delegate ownership to a municipal service or external body for development operations. In some cases, plots may be held in multi-ownership by different actors, requiring analysis to determine the level of municipal control. We aim to categorize municipal land ownership into distinct market segments based on Joseph Comby's typology (Comby, 2010), which we have adapted to evaluate the development potential of municipalities through land ownership. It is important to note that owning built heritage and land assigned to a specific use does not necessarily confer the same development potential as owning a vacant plot (Casanova Enault et al., 2021). The plots are qualified based on four determining indicators for their potential mobilization: morphology, topography, use assignment, and state of pollution. No changes in content have been made. This qualification work is carried out on a national scale, at the granularity of the plot, and involves specific methods of spatial database management and automated processing powered by PostgreSQL, PostGIS, and Python, using exogenous public data. Municipal land plots are scored based on their potential for development operations, ranging from 1 for plots with low probability of mobilization to 5 for easily mobilized plots without major constraints. After quantifying and mapping the levels of property concentration and dispersion, we provide an explanatory analysis of their unequal distribution among municipalities. By analyzing the residuals of a Chi-square test of independence, we demonstrate that urban municipalities primarily have land already designated for urban services (such as urban parks and sports fields) for their future development, which raises questions about their future. Although rural municipalities have a higher percentage of non-mobilizable land, such as forests and mountains, suburban municipalities possess significant land reserves that are available for urbanization and are likely to be privatized and developed in the future. |
| Keywords: | land management, land registry, land reserve, local government, urban development |
| Date: | 2023–09–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04491816&r=ure |
| By: | Giesing, Yvonne (Ifo Institute for Economic Research); Kauder, Björn (CESifo); Mergele, Lukas (Ifo Institute for Economic Research); Potrafke, Niklas (University of Konstanz); Poutvaara, Panu (University of Munich) |
| Abstract: | We examine how cultural norms shape attitudes toward immigration. Our causal identification relies on comparing students who moved across the East-West border after German reunification with students who moved within former East Germany. Students who moved from East to West became more positive toward immigration. Results are confirmed among students whose move was plausibly exogenous due to national study place allocation mechanisms. Evidence supports horizontal transmission as the difference between East-West movers and East-East movers increases over time and is driven by East German students who often interacted with fellow students. Effects are stronger in less xenophobic West German regions. |
| Keywords: | cultural transmission, migration, attitudes toward immigration, German division and unification, political socialization |
| JEL: | D72 D91 J15 J20 P20 P51 Z10 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16833&r=ure |
| By: | Haddad, Eduardo A. (Departamento de Economia, Universidade de São Paulo); Araujo, Inacio F. (Departamento de Economia, Universidade de São Paulo) |
| Abstract: | We quantify blue economy contributions and analyze coast-hinterland economic interdependence through interregional linkages The study advances by adopting a multi-level approach, analyzing municipality and state-level data of ocean-related activities. Using an interstate input-output model, we estimate the blue economy’s value chains, enhancing our understanding of its systemic impacts. We address gaps in national, regional, and local blue economy assessments, providing insights for tailored policies in Brazil’s diverse coastal regions as Brazil aims for UN Sustainable Development Goal 14 by 2030. Our analysis underscores the diverse blue economy structure and regional disparities, advocating for the coordination of sector and region-specific policies. Embracing an integrated regional approach acknowledges the interconnectedness of coastal economies to address shared challenges and capitalize on regional strengths effectively. |
| Keywords: | Regional Accounts; Ocean Economy; Blue Economy; Ocean-related activities; Local Economic Activity; Input-Output Analysis; Domestic Value Chains |
| JEL: | C67 D57 E01 R12 |
| Date: | 2024–03–27 |
| URL: | http://d.repec.org/n?u=RePEc:ris:nereus:2024_003&r=ure |
| By: | João A. Bastos; Jeanne Paquette |
| Abstract: | Uncertainty quantification associated with real estate appraisal has largely been overlooked in the literature. In this paper, we address this gap by analyzing the uncertainty in automated property valuations using conformal prediction, a distribution-free procedure for constructing prediction intervals with valid coverage in finite samples. Through an empirical study of property prices in the San Francisco Bay Area, we find that prediction intervals obtained using conformal quantile regression have exact coverage. In contrast, prediction intervals obtained from nonconformal quantile regressions severely undercover the data. Furthermore, we show that the intervals adapt to various characteristics of the dwellings, which is crucial given the heterogeneous nature of real estate data. Indeed, we observe that larger and older properties, those in both low and high-income neighborhoods, as well as those on the market for less than one year are more challenging to evaluate. |
| Keywords: | Real estate; Automated valuation model; Conformal prediction; Quantile regression; Machine learning. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:ise:remwps:wp03142024&r=ure |
| By: | Aggarwal, Khushboo (Christ University); Barua, Rashmi (Jawaharlal Nehru University); Vidal-Fernandez, Marian (University of Sydney) |
| Abstract: | We investigate the impact of groundwater contamination on educational outcomes in India. Our study leverages variations in the geographical coverage and timing of construction of safe government piped water schemes to identify the effects of exposure to contaminants. Using self-collected survey data from public schools in Assam, one of the most groundwater-contaminated regions in India, we find that prolonged exposure to unsafe groundwater is associated with increased school absenteeism, grade retention, and decreased test scores and Cumulative Grade Point Average (CGPA). To complement our findings and to study the effect of one such contaminant, arsenic, we use a large nationally representative household survey. Using variations in soil textures across districts as an instrument for arsenic concentration levels we find that exposure to arsenic beyond safe threshold levels is negatively associated with school attendance. |
| Keywords: | water contamination, education, India |
| JEL: | I15 I25 F63 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16863&r=ure |
| By: | Roessler, Max (University of Greifswald); Grillitsch, Markus (CIRCLE, Lund University); Miörner, Johan (CIRCLE, Lund University); Schiller, Daniel (University of Greifswald) |
| Abstract: | This paper aims to identify micro-level processes shaping the narratives about regional opportunity spaces. A process perspective is applied to investigate how place leaders engage in shaping narratives to influence the perception of regional opportunity spaces. The empirical research is based on a comparative case study of four peripheral regions in Germany including ninety-two interviews with regional stakeholders complemented by two cross-regional focus groups. Our findings emphasize the central role of place leadership in influencing the perception of regional opportunity spaces, show two pathways of changing dominant narratives (outside-in and inside-out) and provide a multiple-phase framework for their analysis. |
| Keywords: | opportunity spaces; narratives; place leadership; agency; peripheral regions |
| JEL: | O33 P52 R11 R58 |
| Date: | 2024–03–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2024_005&r=ure |
| By: | Andrew Garin (Carnegie Mellon University and NBER); Jonathan Rothbaum (U.S. Census Bureau) |
| Abstract: | This paper studies the long-run effects of government-led construction of manufacturing plants on the regions where they were built and on individuals from those regions. Specifically, we examine publicly financed plants built in dispersed locations outside of major urban centers for security reasons during the United States’ industrial mobilization for World War II. Wartime plant construction had large and persistent impacts on local development, characterized by an expansion of relatively high-wage manufacturing employment throughout the postwar era. These benefits were shared by incumbent residents; we find men born before WWII in counties where plants were built earned $1, 200 (in 2020 dollars) or 2.5 percent more per year in adulthood relative to those born in counterfactual comparison regions, with larger benefits accruing to children of lower-income parents. The balance of evidence suggests that these individuals benefited primarily from the local expansion of higher-wage jobs to which they had access as adults, rather than because of developmental effects from exposure to better environments during childhood. |
| Keywords: | public investment, industrial mobilization, counties, manufacturing, local development, long-run earnings, intergenerational effects, WWII |
| JEL: | J31 J62 H56 R11 R53 O25 N42 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:upj:weupjo:24-399&r=ure |
| By: | Kris Francisco (Philippine Insttute of Development Studies); Neil Irwin Moreno (ACERD); Aniceto Orbeta, Jr. (Philippine Insttute of Development Studies) |
| Abstract: | This paper exploits the timing of the implementation of the Roll-on/Roll-off policy to assess the impact of improved inter-island transport connectivity on local employment and job quality. While not a direct goal of the policy, this paper seeks to demonstrate the mechanism by which improvement in the transport system affects local economies in the Philippines. Using the difference-in-differences strategy, we compared the employment outcomes in municipalities hosting the ports included in the RORO network against those municipalities with ports that are excluded from the network. Our results show that female workers with middle and high skill level largely benefitted from access to the RORO network. We also found that the increase in employment was driven by the services sector, particularly the finance and insurance industries. |
| Keywords: | Roll-on/Roll-off transport, Local employment, Job quality, Philippines |
| JEL: | O18 L91 J40 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:agy:dpaper:202408&r=ure |
| By: | Dinarte Diaz, Lelys (World Bank); Egana-delSol, Pablo (Universidad Adolfo Ibañez); Martínez A., Claudia (Pontificia Universidad Catolica de Chile); Rojas A., Cindy (Inter-American Development Bank) |
| Abstract: | After-school programs (ASP) that keep youth protected while engaging them in socio-emotional learning might address school-based violent behaviors. This paper experimentally studies the socio-emotional-learning component of an ASP targeted to teenagers in public schools in the most violent neighborhoods of El Salvador, Honduras, and Guatemala. Participant schools were randomly assigned to different ASP variations, some of them including psychology-based interventions, which constitutes the ASP socio-emotional-learning component. Results indicate that including psychology-based activities as part of the ASP increases by 23 percent-age points the probability that students are well-behaved at school. The effect is driven by the most at-risk students. Using data gathered from task-based games and AI-powered emotion-detection algorithms, this paper shows that improvement in emotion regulation is likely driving the effect. When comparing a psychology-based curriculum aiming to strengthen participants' character and another based on mindfulness principles, results show that the latter improves violent behaviors while reducing school dropout. |
| Keywords: | after-school programs, psychology-based interventions, school-based violence, emotion regulation |
| JEL: | I29 K42 I25 D87 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16831&r=ure |
| By: | David R. Agrawal; Elke J. Jahn; Eckhard Janeba |
| Abstract: | An unappreciated potential benefit of commuting subsidies is that they can expand the choice set of feasible job opportunities in a way that facilitates a better job match quality. Variations in wages and initial commuting distances, combined with major reforms of the commuting subsidy formula in Germany, generate worker-specific variation in commuting subsidy changes. We study the effect of changes in these subsidies on a worker’s position in the wage distribution. Increases in the generosity of commuting subsidies induce workers to switch to higher-paying jobs with longer commutes. Although increases in commuting subsidies generally induce workers to switch to employers that pay higher wages, commuting subsidies also enhance positive assortativity in the labor market by better matching high-ability workers to higher-productivity plants. Greater assortativity induced by commuting subsidies corresponds to greater earnings inequality. |
| Keywords: | commuting, commuting subsidies, taxes, wage distribution, local labor markets, AKM, assortativity |
| JEL: | H20 H31 J20 J61 R23 R48 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10981&r=ure |
| By: | Faguet, Jean-Paul; Matajira, Camilo; Sánchez, Fabio |
| Abstract: | The Spanish encomienda, a colonial forced-labour institution that lasted three centuries, killed many indigenous people and caused others to flee into nomadism. What were its long-term effects? We digitize a great deal of historical data from the mid-1500s onwards and reconstruct the Spanish conquerors’ route through Colombia using detailed topographical features to calculate their least-cost path. We show that Colombian municipalities with encomiendas in 1560 enjoy better outcomes today across multiple dimensions of development than those without: higher municipal GDP per capita, tax receipts, and educational attainment; lower infant mortality, poverty, and unsatisfied basic needs; larger populations; and superior fiscal performance and bureaucratic efficiency, but also higher inequality. Why? Two mediation exercises using data on local institutions, populations and racial composition in 1794 shows that encomiendas affected development primarily by helping build the local state. Deep historical evidence fleshes out how encomenderos founded local institutions early on in the places they settled. Places lacking encomiendas also lacked local states for 3-4 centuries. Local institutions mobilized public investment in ways that doubtless suited encomenderos, but, over time, spurred greater economic and human development. |
| Keywords: | Encomienda; Colombia; development; colonialism; extraction; state capacity; forced labour; institutions |
| JEL: | N0 R14 J01 |
| Date: | 2024–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122257&r=ure |
| By: | Shooshan Danagoulian; Monica Deza |
| Abstract: | Traffic fatalities are the leading cause of mortality in the United States despite being preventable. While several policies have been introduced to improve traffic safety and their effects have been well documented, the role of transitory health shocks or situational factors at explaining variations in fatal traffic accidents has been understudied. Exploring daily variation in city-specific pollen counts, this study finds novel evidence that traffic fatalities increase on days in which the local pollen count are particularly high. We find that the effects are present in accidents involving private vehicles and occur most frequently on the weekends, suggesting potentially the missed opportunity to avoid these fatalities. We do not find similar effects for fleet vehicles. These findings remain robust to alternative specifications and alternative definitions of high pollen count. Taken together, this study finds evidence that a prevalent and transitory exogenous health-shock, namely pollen allergies, increases traffic fatalities. Given our lack of evidence of avoidance, these effects are not mechanical and are likely driven by cognitive impairments that arise as a result of seasonal allergies. |
| JEL: | I1 I12 R4 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32233&r=ure |
| By: | Beber, Bernd (RWI); Ebert, Cara (RWI); Sievert, Maximiliane (RWI) |
| Abstract: | We investigate the extent to which asylum policies that aim to deter individuals from migrating irregularly in fact do so. We specifically consider effects of Germany's recent and high-profile asylum policy adjustments, which include accelerated asylum decision processes, the prospect of asylum processing outside of Europe, the introduction of a payment card to replace cash benefits, and an extended waiting period for native-level benefits. In order to estimate effects of these policy measures on irregular migration intent, we implement a conjoint experiment with 989 men aged 18–40 in four cities in Senegal, a population of most-likely migrants in a country where irregular migration to Europe is highly salient. We find that offshoring the asylum process significantly and substantially lowers irregular migration intentions across nearly all types of subjects. Extending the waiting time for native-level benefits only has a small, marginally significant effect on intent, and no effect among the poorest subjects and those that are most motivated to migrate internationally. Neither reducing asylum processing times nor replacing cash benefits with a payment card significantly alters intentions. We note that the presence or absence of an effect does not resolve political and normative questions concerning these policies, which are beyond the scope of this particular study. |
| Keywords: | asylum policy, irregular migration, conjoint experiment |
| JEL: | F22 J61 K37 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16850&r=ure |
| By: | Baum, Christopher F. (Boston College, DIW Berlin and CESIS); Lööf, Hans (Royal Institute of Technology, Stockholm); Stephan, Andreas (Linnaeus University and DIW Berlin); Zimmermann, Klaus F. (UNU-MERIT, Maastricht University, CEPR and GLO) |
| Abstract: | This paper examines the wage earnings of fully-employed refugee immigrants in Sweden. Using administrative employer-employee data from 1990 and onwards, about 100, 000 refugee immigrants who arrived between 1980 and 1996 and were granted asylum are compared to a matched sample of native-born workers. Employing recentered influence function (RIF) quantile regressions for the period 2011–2015 to wage earnings, the occupational task-based Oaxaca–Blinder decomposition approach shows that refugees perform better than natives at the median wage, controlling for individual and firm characteristics. This overperformance is due to female refugee immigrants, who have higher wages than comparable native-born female peers up to the 8th decile of the wage distribution. Refugee immigrant females perform better than native females across all occupational tasks studied, including non-routine cognitive tasks. A remarkable similarity exists in the relative wage distributions among various refugee groups, suggesting that cultural differences and the length of time spent in the host country do not significantly affect their labor market performance. |
| Keywords: | refugees; wage earnings gap; occupational sorting; employer-employee data; recentered influence function; Oaxaca–Blinder decomposition |
| JEL: | C23 F22 J24 O15 |
| Date: | 2024–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:vxesta:2024_003&r=ure |
| By: | Makram El-Shagi (Center for Financial Development and Stability at Henan University, and School of Economics at Henan University, Kaifeng, Henan); Steven Yamarik (Department of Economics, California State University Long Beach, CA) |
| Abstract: | This paper examines the impact of Federal Reserve policy on income inequality across US states. We use the local projections method of Jordà to estimate impulse response functions for each state. We find that a restrictive monetary policy increases income inequality in almost all states, but with different magnitudes. Subsequent panel analysis examines the possible transmission mechanisms that can account for these differences. Our empirical results confirm the theoretical predictions – inequality is increased by higher inflation, home ownership, and earnings in the finance, insurance and real estate (FIRE) sector; but decreased by higher housing prices, unionization rates, educational attainment and minimum wage. |
| Keywords: | monetary policy, inequality, US states, local projections |
| JEL: | D31 D63 E52 R19 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:fds:dpaper:202404&r=ure |
| By: | Zanoni, Wladimir; Díaz, Lina M.; Díaz, Emily; Paredes, Jorge; Acevedo, Paloma |
| Abstract: | This study examines the impact of a behavioral intervention on reducing discrimination against Venezuelan migrants in the screening of home rental applications conducted by Ecuadorian real estate agents (REAs). Given that Venezuelan migrants represent the second-largest migratory group globally, with over seven million individuals seeking refuge primarily in other Latin American countries, understanding and addressing discrimination against them is of significant importance. Our artifactual field experiment involved providing information to REAs that highlighted the extra efforts Venezuelan migrants must make to achieve the same goals as nonmigrants in host countries. The results demonstrated a meaningful increase of 33.67% in the preference for Venezuelan migrants over native applicants, with this effect mainly driven by changes in male REAs discriminatory behaviors. The findings suggest that challenging the information value of Venezuelan migrant stereotypes, which often underlie assumptions about their qualities, can effectively diminish discrimination during the rental application process. This research contributes valuable insights to the ongoing efforts to identify effective means to deal with discrimination against migrants. |
| Keywords: | field experiments;behavioral interventions;Nudges;Migration;prejudice |
| JEL: | F22 J15 R31 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:13200&r=ure |
| By: | Jeffry Frieden; Richard S. Grossman; Daniel Lowery |
| Abstract: | We investigate how Reconstruction affected Black political participation and socio-economic advancement after the American Civil War. We use the location of federal troops and Freedmen’s Bureau offices to indicate more intensive federal enforcement of civil rights. We find greater political empowerment and socio-economic advances by Blacks where Reconstruction was more rigorously enforced and that those effects persisted at least until the early twentieth century, although these advances were weaker in cotton-plantation zones. We suggest a mechanism leading from greater Black political power to higher local property taxes, through to higher levels of Black schooling and greater Black socio-economic achievement. |
| Keywords: | reconstruction, institutions, US Civil War, economic development |
| JEL: | N31 P10 O10 O51 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10971&r=ure |
| By: | Yannai A. Gonczarowski; Michael Yin; Shirley Zhang |
| Abstract: | We extend the seminal model of Pathak and S\"onmez (2008) to a setting with multiple school districts, each running its own separate centralized match, and focus on the case of two districts. In our setting, in addition to each student being either sincere or sophisticated, she is also either constrained - able to apply only to schools within her own district of residence - or unconstrained - able to choose any single district within which to apply. We show that several key results from Pathak and S\"onmez (2008) qualitatively flip: A sophisticated student may prefer for a sincere student to become sophisticated, and a sophisticated student may prefer for her own district to use Deferred Acceptance over the Boston Mechanism, irrespective of the mechanism used by the other district. We furthermore investigate the preferences of students over the constraint levels of other students. Many of these phenomena appear abundantly in large random markets. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.04530&r=ure |
| By: | Giulia Cantarini (Bank of Italy); Carola Carlizza (Bank of Italy); Pietro Gaudenzi (Bank of Italy); Lucia Sironi (Bank of Italy) |
| Abstract: | This paper describes the learning model for high-school pupils known as 'Alternanza Scuola-Lavoro' (Italian work experience programmes) or 'Transferable Skills and Guidance Programmes' (PCTO) offered by the Bank of Italy. We illustrate the characteristics of these PCTOs with a focus on the heterogeneity of participating schools, as well as on inclusivity, contributing to the ongoing debate on the relationship between education and employment. Nearly 11, 000 pupils have taken part in a total of more than 1, 000 PCTOs since 2016. The topics of greatest interest to schools are consumer protection and financial education, as well as currency circulation and payment instruments. The data gathered through pre- and post-programme questionnaires show that the PCTOs seem to foster the development of transferable skills in the pupils, in addition to improving their knowledge of the Bank of Italy's institutional functions. |
| Keywords: | school-work alternation, dual learning, financial education |
| JEL: | G53 I28 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_837_24&r=ure |
| By: | Makram El-Shagi (Center for Financial Development and Stability at Henan University, and School of Economics at Henan University, Kaifeng, Henan); Kiril Tochkov (Texas Christian University, Fort Worth, TX, US) |
| Abstract: | Unitary monetary policy in large emerging economies with substantial regional disparities is likely to have heterogeneous effects with unintended consequences. This paper explores the regional effects of monetary policy in China by estimating the response of a series of provincial variables to a national monetary policy shock using quarterly data over the period 1999-2022. Regional heterogeneity is assessed by comparing the results from a fixed-effects and a mean-group estimator. The response of consumer prices and loans is found to be homogeneous across provinces, while that of output and property prices exhibits significant regional variation. Further analysis of the differential response for two provincial clusters indicates that output in Western China experiences faster drops after a contractionary monetary policy shock and takes longer to recover than in Eastern and Central China. In the same context, property prices react with a delay and endure a more gradual recovery after the shock. The advancement of market institutions, the share of state-owned enterprises, and the size of the private sector are identified as potential determinants of the differential response across the two regional clusters. |
| Keywords: | monetary policy, regional effects, China |
| JEL: | E52 E58 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:fds:dpaper:202401&r=ure |
| By: | Louise Devos; Louis Lippens; Dries Lens; François Rycx; Stijn Baert; Mélanie Volral; Stijn Baert (-) |
| Abstract: | Labour markets struggle to be inclusive, while diversity is increasing. This literature review examines labour market challenges faced by first- and second-generation migrants in Belgium. We systematically review articles published between 2010 and 2023 in the Web of Science Core Collection to delineate underlying mechanisms, associated solutions, policy recommendations and literature gaps. The literature reveals that individuals with a migration background generally experience poorer labour market outcomes than natives. These outcomes vary based on specific origin and gender and persist from the first into the second generation. The mechanisms underlying these poorer outcomes are discrimination, individual preferences, and human and social capital differences. Recommendations for employers include implementing anti-discrimination policies, fostering awareness of discrimination, and taking affirmative action. On the employee side, investing in human capital, increasing labour market knowledge, and having competencies formally recognised can help to narrow employment gaps. Our review also advocates for policy refinement to combat biases and suggests that alternative pathways to attaining employment, such as selfemployment and volunteering, are promising areas for future research. |
| Keywords: | Belgium, migration, labour market, systematic review |
| JEL: | J15 J18 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:24/1083&r=ure |
| By: | Chen, Shi; Gangji, Areez; Karim, Sunny; McCanny, Anthony; Webb, Matthew D. |
| Abstract: | This comment revisits the analysis in Christensen and Timmins (2022). We identify two critical errors used in the original analysis, one with the data and the other with coding. When either error is corrected several major results in the paper change, either in statistical significance or in effect size. The data error is a result of including fixed effects for the string variable 'city'. The raw variable is case sensitive and has many spelling mistakes. The coding error involves assigning a value of zero for the variable "of color" to both individuals identified as 'white' and as 'other' in the raw data. The level of clustering in the paper is also arguably too fine. Many of the results are not robust to clustering at the city level, as opposed to the subject pair level. In total, we affirm the authors' overarching claim of substantial and nuanced housing discrimination against racial minorities generally, and African Americans in particular; however, the effect sizes and significance are generally (although not always) smaller than the original authors findings. Additionally, there are several instances where the effects of discrimination on African Americans are no longer statistically significant but the effect of discrimination on Hispanics becomes significant. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:i4rdps:108&r=ure |
| By: | Leonardo A. Lanzona (Ateneo de Manila University); Geoffrey M. Ducanes (Ateneo de Manila University); Loriel O. Eleazar (ACERD); Katheryn Hidalgo (ACERD); Ancieto Orbeta (Philippine Institute of Development Studies) |
| Abstract: | Using the recently released 2022 PISA dataset in combination with the 2018 PISA dataset, this study examines how the COVID-19 pandemic could have impacted the learnings of school-attending 15-year-olds in the country, whether in terms of actual learning losses or the opportunity cost of learning more. Using both cross-tabulations and regression analysis, the study finds heterogenous changes in learning outcomes before and after the pandemic, with the negative changes higher for some subgroups (males, public school students, those without access to their own digital device) compared with others. The results of the study points to potential priority groups for remedial intervention to make up for pandemic learning losses – public school males, for example – already behind before the pandemic and left further behind after the pandemic, those with little access to real-time lessons by a school teacher through video conferencing and those without access to digital devices during the school closures, and those at the bottom of the socioeconomic strata. The study discusses some policy interventions to facilitate remedial catch-up to make up for pandemic learning losses as well as the general deficiency in the proficiency of Filipino students even before the pandemic. |
| Keywords: | learning loss, learning gain, equity, PISA, pandemic education |
| JEL: | L40 L51 L52 K21 O57 O53 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:agy:dpaper:202404&r=ure |
| By: | Berger, Thor (Department of Economics and Statistics); Prawitz, Erik (Department of Economics and Statistics) |
| Abstract: | Why has collaboration become increasingly central to technological progress? We document the role of lowered travel costs by combining patent data with the rollout of the Swedish railroad network in the 19th and early-20th century. Inventors that gain access to the network are more likely to produce collaborative patents, which is partly driven by long-distance collaborations with other inventors residing along the emerging railroad network. These results suggest that the declining costs of interacting with others is fundamental to account for the long-term increase in inventive collaboration. |
| Keywords: | Innovation; Collaboration; Transport infrastructure; Railroads |
| JEL: | L91 N73 O18 O31 |
| Date: | 2023–03–28 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:vxesta:2023_002&r=ure |
| By: | Jordan S. Berne; Brian A. Jacob; Tareena Musaddiq; Anna Shapiro; Christina Weiland |
| Abstract: | Transitional Kindergarten (TK) is a relatively recent entrant into the U.S. early education landscape, combining features of public pre-K and regular kindergarten. We provide the first estimates of the impact of Michigan’s TK program on 3rd grade test scores. Using an augmented regression discontinuity design, we find that TK improves 3rd grade test scores by 0.29 (math) and 0.19 (English Language Arts) standard deviations relative to a counterfactual that includes other formal and informal early learning options. These impacts are notably large relative to the prior pre-K literature. |
| JEL: | I20 I21 I24 I28 J01 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32236&r=ure |
| By: | Dennis Guignet; O. Ashton Morgan; Craig Landry; John C. Whitehead; William Anderson |
| Abstract: | Sea-level rise poses a growing threat to coastal communities and economies across the globe. North Carolina (NC) is no exception, with coastal communities facing annual sea-level rise rates of 2.01 to 4.55 mm/year (NOAA, 2018). Sea-level rise can affect key ecosystem services to coastal communities, including the provision of clean drinking water and adequate wastewater treatment. We examine how increases in the cost of these services and possible negative effects on coastal house prices due to sea-level rise impact residential location decisions. Administering a stated preference survey to NC homeowners in counties adjacent to the coast, we assess how households might respond to the increasing costs of drinking water and wastewater treatment due to sea-level rise. We present a novel framework to estimate expected welfare impacts under illustrative scenarios. Our results can inform local communities and benefit-cost analyses of future adaptation strategies and infrastructure investments. Key Words: drinking water; ecosystem service; groundwater; housing; stated preference; sealevel rise; wastewater |
| JEL: | D6 Q51 Q54 Q57 R2 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:apl:wpaper:24-12&r=ure |
| By: | Lucas, Jack (University of Calgary) |
| Abstract: | For more than a century, practitioners and researchers have often argued that municipal politicians are more ideologically moderate than their national counterparts. Testing this claim requires direct comparison of politicians who represent similar constituents but who are elected at different levels of government, but comparative data of this sort are rarely available. Here, I take advantage of new data from surveys of Canadian municipal, provincial, and federal politicians to provide a robust test of the "municipal moderation" thesis. Comparing politicians' symbolic ideological self-understandings (N=3, 000) as well as their latent policy ideologies (N=775), I find strong evidence that municipal politicians think of themselves as more ideologically moderate, but are not more moderate in their actual policy preferences. I further show that these differences disappear when non-partisan local politicians are excluded from the analysis. My results reinforce recent research suggesting that municipal politicians may hold non-ideological cultural norms but are embedded within an ideological electoral and policymaking context. My analysis also illustrates the potential for "vertical" rather than "horizontal" comparative research designs to illuminate important debates in local and urban politics. |
| Date: | 2024–03–19 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:vq28b&r=ure |
| By: | Devos, Louise (Ghent University); Lippens, Louis (Ghent University); Lens, Dries (University of Antwerp); Rycx, François (Free University of Brussels); Volral, Mélanie (University of Mons); Baert, Stijn (Ghent University) |
| Abstract: | Labour markets struggle to be inclusive, while diversity is increasing. This literature review examines labour market challenges faced by first- and second-generation migrants in Belgium. We systematically review articles published between 2010 and 2023 in the Web of Science Core Collection to delineate underlying mechanisms, associated solutions, policy recommendations and literature gaps. The literature reveals that individuals with a migration background generally experience poorer labour market outcomes than natives. These outcomes vary based on specific origin and gender and persist from the first into the second generation. The mechanisms underlying these poorer outcomes are discrimination, individual preferences, and human and social capital differences. Recommendations for employers include implementing anti-discrimination policies, fostering awareness of discrimination, and taking affirmative action. On the employee side, investing in human capital, increasing labour market knowledge, and having competencies formally recognised can help to narrow employment gaps. Our review also advocates for policy refinement to combat biases and suggests that alternative pathways to attaining employment, such as self-employment and volunteering, are promising areas for future research. |
| Keywords: | Belgium, migration, labour market, systematic review |
| JEL: | J15 J18 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16849&r=ure |
| By: | Chiplunkar, Gaurav (University of Virginia); Kelley, Erin (World Bank); Lane, Gregory (University of Chicago) |
| Abstract: | We study how job-seekers share information about jobs within their social network, and its implications for firms. We randomly increase the amount of competition for a job and find that job-seekers are less likely to share information about the job with their high ability peers. This lowers the quality of applicants, hires, and performance on the job - suggesting that firms who disseminate job information through social networks may see lower quality applicants than expected for their most competitive positions. While randomly offering higher wages attracts better talent, it is not able to fully overcome these strategic disincentives in information sharing. |
| Keywords: | job information, social networks, labor markets |
| JEL: | L14 M51 O12 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16840&r=ure |
| By: | Wei Zhou; Alice Moncaster; Eoghan O’Neill; David M Reiner; Xinke Wang; Peter Guthrie |
| Keywords: | Urban residential buildings, embodied energy, dynamic stock turnover, probabilistic model, material intensity, policy implications |
| JEL: | O18 R21 Q4 |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2209&r=ure |
| By: | Enrico Moretti; Moises Yi |
| Abstract: | Economists have long hypothesized that large and thick labor markets facilitate the matching between workers and firms. We use administrative data from the LEHD to compare the job search outcomes of workers originally in large and small markets who lost their jobs due to a firm closure. We define a labor market as the Commuting Zone×industry pair in the quarter before the closure. To account for the possible sorting of high-quality workers into larger markets, the effect of market size is identified by comparing workers in large and small markets within the same CZ, conditional on workers fixed effects. In the six quarters before their firm’s closure, workers in small and large markets have a similar probability of employment and quarterly earnings. Following the closure, workers in larger markets experience significantly shorter non-employment spells and smaller earning losses than workers in smaller markets, indicating that larger markets partially insure workers against idiosyncratic employment shocks. A 1 percent increase in market size results in a 0.014 and 0.023 percentage points increase in the 1-year re-employment probability of high school and college graduates, respectively. Displaced workers in larger markets also experience a significantly lower need for relocation to a different CZ. Conditional on finding a new job, the quality of the new worker-firm match is higher in larger markets, as proxied by a higher probability that the new match lasts more than one year; the new industry is the same as the old one; and the new industry is a “good fit” for the worker’s college major. Consistent with the notion that market size should be particularly consequential for more specialized workers, we find that the effects are larger in industries where human capital is more specialized and less portable. Our findings may help explain the geographical agglomeration of industries—especially those that make intensive use of highly specialized workers—and validate one of the mechanisms that urban economists have proposed for the existence of agglomeration economies. |
| JEL: | H0 J0 R0 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32250&r=ure |
| By: | Choi, S.; Goyal, S.; Guo, F.; Moisan, F. |
| Abstract: | Social interactions shape individual behaviour and public policy increasingly uses networks to improve effectiveness. It is therefore important to understand if the theoretical predictions on the relation between networks and individual choice are empirically valid. This paper tests a key result in the theory of games on networks: an individual’s action is proportional to their (Bonacich) centrality. Our experiment shows that individual efforts increase in centrality but at a rate of increase that is lower than the theoretical prediction. Moreover, efforts are higher than predicted in some cases and lower than predicted in other cases. These departures from equilibrium have large effects on individual earnings. We propose a model of network based imitation decision rule to explain these deviations. |
| JEL: | C92 D83 D85 Z13 |
| Date: | 2024–01–16 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2401&r=ure |
| By: | Robalino, Juan; Mullan, Katrina; Piaggio, Matías; Guzmán, Marisol |
| Abstract: | We evaluate whether floods and landslides are more likely when rain falls inside versus outside protected areas (PAs). We use monthly municipality data for the period 2000-2015 in Guatemala and monthly district data for the period 1992-2019 in Costa Rica. We define relevant catchment areas using water flows to population centers of administrative units. Then, we calculate the precipitation inside and outside PAs within the relevant catchment areas, and test how the frequency of floods and landslides is affected by whether rain falls inside or outside PAs. We use a two-way fixed effect panel data model. For Guatemala, we find no robust statistically significant effects on these types of disasters. However, in Costa Rica, we find that shifts in precipitation towards PAs reduce floods significantly. These results were highly robust. We also find effects on landslides in densely populated districts, as well as reductions in flood-related deaths. |
| Keywords: | Disasters;floods;Landslides;Protected areas;Precipitation |
| JEL: | Q54 Q28 Q24 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:13166&r=ure |
| By: | Carsten Creutzburg (Chair for Economic Policy, University of Hamburg); Wolfgang Maennig (Chair for Economic Policy, University of Hamburg); Steffen Q. Mueller (Chair of Services & Operations Management, University of Zurich) |
| Abstract: | This study investigates the impact of differences in consumers' racial preferences on worker productivity through the example of the home advantage (HA) effect using data on wins in men's professional tennis from 2001 to 2020 (pre-COVID-19). We identify players' racial affiliation as one of five distinct race groups by combining clustering algorithms and facial recognition software. Our empirical design innovates by allowing us to distinguish among HA factors related to the presence of fans, referee bias, travel fatigue, and home-court familiarity. We provide evidence of social environments where Black players benefit more strongly from fan support than players of other races. |
| Date: | 2024–03–22 |
| URL: | http://d.repec.org/n?u=RePEc:hce:wpaper:075&r=ure |
| By: | Gehrke, Esther (University of Wageningen); Genthner, Robert (University of Göttingen); Kis-Katos, Krisztina (University of Goettingen) |
| Abstract: | We analyze the effect of rising protectionism towards foreign direct investment (FDI) on domestic employment, exploiting revisions in Indonesia’s highly-granular negative investment list, and spatial variation in the exposure of the manufacturing sector to these investment restrictions. Rising FDI restrictions caused employment gains at the local level, explaining about one-tenth of the aggregate employment increases observed between 2006 and 2016 in Indonesia. These employment gains went along with a reorganization of the local production structure, and new firm entries in the manufacturing sector that are concentrated among micro and small enterprises. While our results are consistent with an increase in the labor-to-capital ratio and reduced productivity among regulated firms (which allowed smaller and less productive firms to enter the market), we also document that at least half of the employment gains are driven by spillover-effects along the local value chain and into the service sector. |
| Keywords: | FDI regulation, Indonesia, local labor markets |
| JEL: | F16 F21 F23 J23 J31 L51 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16835&r=ure |
| By: | Huanjia Ma (City-REDI Institute, The University of Birmingham); Raquel Ortega-Argilés (Manchester Institute of Innovation Research and TPI Institute, The University of Manchester); Matthew Lyons (City-REDI Institute, The University of Birmingham) |
| Abstract: | This paper examines the UK implications for regional and national growth associated with different geographical investment patterns of publicly-funded R&D, in the light of the recommendations of the 2022 Levelling Up White Paper, aimed at balancing the national economy. The White Paper outlines twelve main "missions" focused on science, technology, and education to achieve this goal. One of these missions aims to increase domestic public Research and Development (R&D) by at least 40% outside the Greater South East (GSE) by 2030. We develop three scenarios based on different assumptions about extra R&D allocation. We use data from UKRI and ONS to determine the current distribution of R&D investment in the UK, and then using the multi-regional Socio-Economic Impact Model for the UK we evaluate our three proposed R&D spending scenarios. Our findings suggest that the regional impact varies significantly across the different proposed scenarios. The scenario that allocates more GERD to areas with previously low funding levels yields the largest effect. On average, output, employment and GVA in regions outside GSE increase by 0.33%, 0.37% and 0.34%, respectively, showing a potentially positive effect on the levelling up of R&D in the country. Our analysis of both internal and external multipliers highlights the importance of investing in regional redistribution. We demonstrate that the GSE is more self-sufficient as it has much higher internal multipliers than the rest of the UK. However, we identified a potential obstacle: the capacity to absorb human capital, which could reduce the expected positive results of a more spatially balanced R&D expenditure across the UK. |
| Keywords: | Multi-region input-output, R&D, Levelling-up, UK |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bdj:smioir:2024-03&r=ure |
| By: | GIBSON, John; ZHANG, Xiaoxuan; PARK, Albert; YI, Jiang; XI, Li |
| Abstract: | It is difficult and expensive to measure rural economic activity and poverty in developing countries. The usual survey-based approach is less informative than often realized due to combined effects of the clustered samples dictated by survey logistics and the spatial autocorrelation in rural livelihoods. Administrative data, like sub-national GDP for lower level spatial units, are often unavailable and the informality and seasonality of many rural activities raises doubts about accuracy of such measures. A recent literature argues that high-resolution satellite imagery can overcome these barriers to the measurement of rural economic activity and rural living standards and poverty. Potential advantages of satellite data include greater comparability between countries irrespective of their varying levels of statistical capacity, cheaper and more timely data availability, and the possibility of extending estimates to spatial units below the level at which GDP data or survey data are reported. While there are many types of remote sensing data, economists have particularly seized upon satellite-detected nighttime lights (NTL) as a proxy for local economic activity. Yet there are growing doubts about the universal usefulness of this proxy, with recent evidence suggesting that NTL data are a poor proxy in low-density rural areas of developing countries. This study examines performance in predicting rural sector economic activity and poverty in China with different types of satellite-detected NTL data that come from three generations of sensors of varying resolution. We include the most popular NTL source in economics, the Defense Meteorological Satellite Program data, whose resolution is, at best, 2.7 km, two data sources from the Visible Infrared Imaging Radiometer Suite (VIIRS) on the Suomi/NPP satellite with spatial resolution of 0.74 km, and data from the Luojia-01 satellite that is even more spatially precise, with resolution of 0.13 km. The sensors also vary in ability to detect feeble light and in the time of night that they observe the earth. With this variation we can ascertain whether better sensors lead to better predictions. We supplement this statistical assessment with a set of ground-truthing exercises. Overall, our study may help to inform decisions about future data directions for studying rural economic activity and poverty in developing countries. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hitcei:2023-08&r=ure |
| By: | Sinding Bentzen, Jeanet (University of Copenhagen, CAGE, CEPR); Boberg-Fazli´c, Nina (TU Dortmund University, CEPR); Sharp, Paul (University of Southern Denmark, CAGE, CEPR); Volmar Skovsgaard, Christian (University of Southern Denmark); Vedel, Christian (University of Southern Denmark) |
| Abstract: | The cultural assimilation of immigrants into the host society is often equated with prospects for economic success, with religion seen as a potential barrier. We investigate the role of ethnic enclaves and churches for the assimilation of Danish Americans using a difference-in-differences setting. Following the ordination of a divisive religious figure in 1883, this otherwise small and homogeneous group split into rival Lutheran revivalist camps - so-called “Happy†and “Holy†Danes. The former sought the preservation of Danish culture and tradition, while the latter encouraged assimilation. We use data from the US census and Danish American church and newspaper archives, and find that Danish Americans living in a county with a “Happy†church chose more Danish names for their children. Newspapers read by “Holy Danes†saw a more rapid Anglicization of the language used. Religious beliefs thus facilitated assimilation. Divergence in behaviour only emerged following the religious division. |
| Keywords: | Assimilation, Danish Americans, enclaves, immigration, religion JEL Classification: F22, J61, N31, N32 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:cge:wacage:703&r=ure |
| By: | Carlsson, Magnus (Department of Economics and Statistics); Eriksson, Stefan (Department of Economics, Uppsala University); Rooth, Dan-Olof (The Swedish Institute for Social Research, Stockholm University) |
| Abstract: | Labor markets in advanced economies have undergone substantial change in recent decades due to globalization, technological improvements, and organizational changes. Due to these developments, oral and written language skills have become increasingly important even in less skilled jobs. Immigrants – who often have limited skills in the host country language upon arrival – are likely to be particularly affected by the increase in language requirements. Despite this increase in literacy requirements, little is known about how immigrants’ language proficiency is rewarded in the labor market. However, estimating the causal effect of immigrants’ language skills on hiring is challenging due to potential biases caused by omitted variables, reverse causality, and measurement error. To address identification problems, we conduct a large-scale field experiment, where we send thousands of fictitious resumes to employers with a job opening. With the help of a professional linguist, we manipulate the cover letters by introducing common second-language features, which makes the resumes reflect variation in the language skills of real-world migrants. Our findings show that better language proficiency in the cover letter has a strong positive effect on the callback rate for a job interview: moving from the lowest level of language proficiency to a level similar to natives almost doubles the callback rate. Consistent with the recent development that language proficiency is also important for many low- and medium- skilled jobs, the effect of better language skills does not vary across the vastly different types of occupations we study. Finally, the results from employer surveys suggest that it is improved language skills per se that is the dominant explanation behind the language proficiency effect, rather than language skills acting as a proxy for other unobserved abilities or characteristics. |
| Keywords: | Labor migrants; Language proficiency; Language skills; Human capital; Field experiment |
| JEL: | F22 J15 J24 |
| Date: | 2023–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:vxesta:2023_001&r=ure |
| By: | Fabrice Murtin; Milenko Fadic |
| Abstract: | This paper provides two innovative measures of well-being for French communes, namely a well-being aggregate index and an index of multi-dimensional poverty. These measures provide an unprecedented view of well-being at the local level by using 7 of the 11 key dimensions of the OECD Better Life Initiative (income, unemployment, housing, education, civic engagement, health and environmental quality). The results show that joint deprivation in at least five dimensions of well-being is starkly concentrated among 316 communes, representing as many as 5.2 million inhabitants (7.7% of the French population). |
| Keywords: | poverty, spatial inequality, well-being |
| JEL: | I14 I31 I32 |
| Date: | 2024–04–04 |
| URL: | http://d.repec.org/n?u=RePEc:oec:wiseaa:23-en&r=ure |
| By: | Soloaga, Isidro; Plassot, Thibaut; Reyes, Moisés |
| Date: | 2023–08–30 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:68914&r=ure |
| By: | Arun G. Chandrasekhar; Paul Goldsmith-Pinkham; Tyler McCormick; Samuel A. Thau; Jerry Wei |
| Abstract: | Network diffusion models are used to study things like disease transmission, information spread, and technology adoption. However, small amounts of mismeasurement are extremely likely in the networks constructed to operationalize these models. We show that estimates of diffusions are highly non-robust to this measurement error. First, we show that even when measurement error is vanishingly small, such that the share of missed links is close to zero, forecasts about the extent of diffusion will greatly underestimate the truth. Second, a small mismeasurement in the identity of the initial seed generates a large shift in the locations of expected diffusion path. We show that both of these results still hold when the vanishing measurement error is only local in nature. Such non-robustness in forecasting exists even under conditions where the basic reproductive number is consistently estimable. Possible solutions, such as estimating the measurement error or implementing widespread detection efforts, still face difficulties because the number of missed links are so small. Finally, we conduct Monte Carlo simulations on simulated networks, and real networks from three settings: travel data from the COVID-19 pandemic in the western US, a mobile phone marketing campaign in rural India, and in an insurance experiment in China. |
| JEL: | C01 D85 E0 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32251&r=ure |
| By: | Lichtin, Florian; Smith, E. Keith; Axhausen, Kay W.; Bernauer, Thomas |
| Abstract: | The twin challenge of increasing capacity to accommodate growing travel demand while simultaneously decarbonizing the transport sector places enormous pressure on public transport (PT) systems globally. Arguably the most fundamental policy choice and trade-off in designing and operating PT systems in the coming years will be service levels versus cost implications. On the presumption that public (citizen and consumer) opinion is crucial to making such choices, we study this question with a focus on Switzerland by using a factorial experiment (n = 1'634) that considers the frequency and geographic coverage of PT services as well as the cost implications for PT users and taxpayers. We find that support for increased frequency of connections and more services to peripheral regions is high as long as such service expansion is funded mainly by the government, rather than PT users. Preferences are generally consistent across subgroups, except in the case of government funding, where preferences differ by political orientation. This suggests that there is substantial demand across the board for PT services expansion funded primarily by the government, but that the question of funding is also potentially politically the most controversial. While our findings are specific to a country with a highly developed PT system, our research provides a template for similar research in other countries that struggle with a similar challenge. |
| Date: | 2024–03–13 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:2m6a7&r=ure |
| By: | Mumford, Kevin J. (Purdue University); Patterson, Richard (Brigham Young University); Yim, Anthony (Brigham Young University) |
| Abstract: | What happens when college students are not able to enroll in the courses they want? We use a natural experiment at Purdue University in which first-year students are conditionally randomly assigned to oversubscribed courses. Compared to students who are assigned a requested course, those who are shut out are 40% less likely to ever take the oversubscribed course and 30% less likely to ever take a course in the same subject. While a course shutout is equally likely to occur to female and male students who requested the course, shutouts are much more disruptive for female students. In the short run, shutouts decrease the credits female students earn as well as their GPA. In the long-run, shutouts increase the probability female students drop out of school in the first year, decrease the probability they choose majors in STEM fields (Science, Technology, Engineering, and Math), decrease cumulative GPA, and decrease the probability of graduating within four years. In contrast, shutouts have no effects on short-run credits earned, dropout, majoring in STEM, cumulative GPA, or four-year graduation for male students. Shutouts do have one large measurable long-run impact on male students—shutouts significantly increase the probability that men choose a major from the business school. |
| Keywords: | course shutouts, major choice |
| JEL: | I23 J16 J24 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16859&r=ure |
| By: | Joe DeLosa III; Johannes P. Pfeifenberger; Paul Joskow |
| Abstract: | The U.S. regulation of high-voltage transmission is highly complex and, as a result, generally poorly understood. The complexity is created by separate, but overlapping, jurisdictional authorities of the U.S. federal regulators and those of individual states, districts, and territories. While U.S. federal regulators have authority over stand-alone transmission service and the regional wholesale power markets that use the transmission grid, state regulators have jurisdiction over both (1) retail electricity services that include the distribution network, the retail cost of transmission service, and often generation service; and (2) the permitting of most new transmission facilities within their states’ boundaries. Some of these federal and state regulatory authorities overlap and some of them do not apply to non-jurisdictional transmission providers (such as certain municipal utilities, cooperatives, and federal power marketing agencies) and states (such as Texas) that are not synchronized with the larger regional grid. We summarize this complex structure of transmission regulation in the U.S. and the history of regulations that have created the industry structure and regulatory frameworks that exist today. We provide an overview of how transmission investments are priced and recovered and the planning processes that individual transmission owners and regional grid operators use to plan the necessary expansion of the high-voltage transmission grid. We also point out some of the economic inefficiencies that are created by a combination of balkanized regulatory structures and outdated industry planning practices. |
| JEL: | L51 L94 Q48 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32254&r=ure |
| By: | Mary C. Daly |
| Abstract: | Speech to 2024 National Interagency Community Reinvestment Conference, Portland, OR, March 6, 2024, by Mary C. Daly, President and Chief Executive Officer, Federal Reserve Bank of San Francisco. |
| Keywords: | housing; affordable housing; communities |
| Date: | 2024–02–16 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedfsp:97976&r=ure |
| By: | Justin C. Wiltshire (Department of Economics, University of Victoria) |
| Abstract: | Scholars disagree about the effect out-of-state university students have on potential in-state students. Despite paying a premium to attend state universities, researchers argue that out-of-state students may come at a cost to in-state students by negatively affecting academic quality or by crowding out in-state students. To study this relationship, we examine the effect of a 2016 policy at a highly ranked state flagship university that removed the limit on how many out-of-state students it could enroll. We find the policy caused an increase in out-of-state enrollment by around 29 percent and increased tuition revenue collected by the university by 47 percent. We argue that this revenue was used to fund increases in financial aid disbursed at the university, particularly to students from low-income households, indicating that out-ofstate students cross-subsidize lower income students. We also fail to find evidence that this increase in out-of-state students had any effect on several measures of academic quality. |
| Keywords: | Higher Education, Out-of-State Students, Human Capital |
| Date: | 2023–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:vic:vicddp:2023-03&r=ure |