|
on Urban and Real Estate Economics |
| By: | Schröpf, Benedikt; Kovalenko, Tim |
| Abstract: | Although domestic establishment relocations are part of both the factor reallocation across regions and establishment dynamics within an economy, evidence on firm mobility in Germany is rather scarce. In this study, we therefore examine establishment- and regional-level patterns of firm mobility in Germany. Using rich administrative data, we document that most relocation flows go from major cities to the surrounding urban districts, suggesting sub-urbanization patterns. In terms of establishment-level characteristics, we document that middle-sized and knowledge-intensive establishments exhibit high relocation propensities. Further, establishments moving to major cities or urban districts are rather high-wage establishments while establishments moving to rural districts are rather low-wage establishments. Our regional analyses reveal that relocating establishments prefer nearby regions with (compared to their old locations) low tax burdens and low population densities. |
| Keywords: | Firm mobility, Establishment Relocation, Firm Location, Germany |
| JEL: | R10 R12 R30 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iwqwdp:296487&r= |
| By: | Andrew Jordan; Ezra Karger; Derek Neal |
| Abstract: | We examine ten cohorts of male eighth graders in public schools in Chicago, IL: 1995-2004. We find that composite measures of math achievement, reading achievement, and neighborhood SES during elementary school are strong predictors of future felony arraignment and incarceration, even among students of the same race who attend the same school. Nonetheless, elementary achievement and early SES account for less than half of Black versus non-Black disparities in these outcomes. Value-added measures of eighth grade school quality suggest that schools may reduce criminal justice involvement by better preparing students for the non-cognitive demands of high school. |
| JEL: | I0 J1 K0 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32428&r= |
| By: | Yanotti, Maria B.; Kangogo, Moses; Wright, Danika; Sarkar, Somwrita; Lyu, Fei |
| Abstract: | This research examines how population migration to particular suburbs or regions across Australia affects house prices in different suburbs and regions. The research found that when people move into a particular region house prices increase not only in that region and close surrounding areas, but may also rise in other, more distant locations. Furthermore, these house price increases may also trigger successive population movements of people moving out of that first region and moving to other parts of the state or to other states, in turn triggering a succession of house price impacts in these new areas. The research also looked at migration patterns during COVID-19 and found that, with increased numbers of people migrating out of the state, Victoria became a strong contributor of house price changes in every other state or territory. Within each state and territory, the trend is for population movements from inner-city suburbs towards outer city areas and regional areas. The influx of people into regional cities led to a worsening of housing affordability, with limited stock and very low vacancy rates, in part due to the lack of social and affordable housing options in regional areas. Given the traditional attraction of regional areas as relatively affordable locations, these areas are home to a high proportion of low-income and tenant households who are facing rising housing costs. Besides targeting policies that provide financial support for households experiencing housing stress in regional areas, policy makers should be aware that policies focussed on particular regions can have unintended consequences for nearby regions. The connectivity that operates across open borders means that migration increases and house price rises due to a local policy may increase house prices for other regions that may not get a direct benefit from the policy. |
| Date: | 2024–05–29 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:r5eg2&r= |
| By: | Matthew A. Lenard; Mikko Silliman |
| Abstract: | We study the effects of informal social interactions on academic achievement and behaviour using idiosyncratic variation in peer groups stemming from changes in bus routes across elementary, middle, and high school. Our results suggest that student interactions outside the classroom—especially in adolescence—may be an important factor in the education production function for both academic and, particularly, behavioral skills. The effects of interactions on the bus are also related to neighborhood measures—suggesting that one way that interactions on the bus may matter is by amplifying interactions in the neighborhood. |
| Keywords: | social interactions, peer effects, education, behavior |
| JEL: | I21 C31 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_11115&r= |
| By: | Roskruge, Matthew (Massey University); Poot, Jacques (University of Waikato) |
| Abstract: | In this paper, we present evidence from quantitative research over the last decade on how the social capital of individuals in Aotearoa New Zealand is associated with birthplace and, for migrants, years since migration. We also consider the effects of spatial sorting and ethnic diversity on social capital formation. Aotearoa New Zealand has one of the highest rates of immigration in the OECD and, consequently, one of the highest shares of foreign-born individuals in the population. Additionally, the population is characterized by high ethnic diversity and a large indigenous population, with Māori representing 17 percent of the population. Using several data sources, we measure social capital by focusing on participation and volunteering in a range of community activities, perceptions of safety and inclusion, and voting in elections. Regression modelling shows that, as expected, migrants have little local social capital upon arrival. However, differences between their social capital and that of native-born individuals reduce considerably as the duration of residence in Aotearoa New Zealand increases. When the migrant share in a region is larger than the national average, migrants invest less in bridging social capital. Migrant clustering within a region increases their investment in bonding social capital. Bridging activities are associated with better employment outcomes. Less than one in five respondents in the utilized survey data report discrimination, and for migrants, discrimination declines with years of residence. However, the trend in discrimination has been upward over time and particularly affects non-European migrants and persons identifying with Māori and Pacific Peoples ethnicities. Residential location matters. Greater ethnic diversity is associated with the perception of a less safe neighbourhood, but individuals in ethnically diverse regions experience relatively less discrimination. Additionally, there is more involvement in elections in such regions. In contrast, greater ethnic polarisation in regions is associated with less civic engagement and more discrimination. |
| Keywords: | social capital, ethnic diversity, bonding, bridging, linking, immigrant integration, spatial sorting |
| JEL: | F22 R11 Z13 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp17012&r= |
| By: | Jan K. Brueckner |
| Abstract: | This paper analyzes the urban impacts of hybrid WFH in the simplest possible model, relying on Leontief utility and production functions and other simplifying assumptions. The analysis shows that introduction of WFH raises both the wage and land consumption of households while shrinking the size of the business district and reducing business land rent. When WFH requires home work-space, the city’s overall spatial size increases, with residential rents rising in the suburbs while falling near the center. The decline in business rent and the rotation of the residential rent contour match empirical evidence showing that WFH reduces office-building values and flattens the residential rent gradient. |
| Keywords: | work from home, cities, commuting, land rents, productivity |
| JEL: | R14 R31 J01 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_11121&r= |
| By: | Houndetoungan, Aristide (Université de Paris); Kouame, Cristelle (World Bank); Vlassopoulos, Michael (University of Southampton) |
| Abstract: | Peer influence on effort devoted to some activity is often studied using proxy variables when actual effort is unobserved. For instance, in education, academic effort is often proxied by GPA. We propose an alternative approach that circumvents this approximation. Our framework distinguishes unobserved shocks to GPA that do not affect effort from preference shocks that do affect effort levels. We show that peer effects estimates obtained using our approach can differ significantly from classical estimates (where effort is approximated) if the network includes isolated students. Applying our approach to data on high school students in the United States, we find that peer effect estimates relying on GPA as a proxy for effort are 40% lower than those obtained using our approach. |
| Keywords: | social networks, peer effects, academic achievement, unobserved effort, isolated agents |
| JEL: | C31 J24 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16998&r= |
| By: | Anna Stansbury (Peterson Institute for International Economics); Dan Turner (Centre for Progressive Policy); Ed Balls (King's College London and Harvard Kennedy School) |
| Abstract: | This paper analyzes binding constraints to productivity growth in the United Kingdom's regions outside London and the greater South East. These analyses challenge a number of common arguments about the UK's regional economic inequality problem. The authors find little evidence consistent with the hypotheses (i) that low shares of university graduates remain the primary constraint on growth for the UK's regions; (ii) that there is a generalized issue with access to finance for firms outside the South East; or (iii) that low or falling regional migration rates are to blame for the persistence of the UK's regional economic inequalities. Instead, they find evidence consistent with (i) a specific relative shortage of STEM degrees; (ii) binding transport infrastructure constraints within major non-London conurbations; (iii) a failure of public innovation policy to support clusters beyond the South East, in particular through the regional distribution of public support for research and development (R and D); and (iv) missed opportunities for higher internal mobility due to London's overheating housing market. The authors also find some suggestive evidence consistent with constraints on access to early-stage equity financing for high growth-potential small and medium-sized enterprises in certain regions. |
| JEL: | O47 R12 R58 |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:iie:wpaper:wp24-12&r= |
| By: | White, Tim |
| Abstract: | Housing has long been the quintessential rentier asset. But under financialized capitalism its enrolment into accumulation dynamics has greatly intensified. As investors increasingly turn to residential real estate in search of corporate rents, the logic of assetization is reaching novel locations in the housing process – extending to new scales, metrics and micro-morphologies. This paper argues one such novel location is that most intimate and familiar of places: the bed. Bringing together constructivist and political economy approaches to assets and drawing on the empirical case of co-living, the bed is identified as both a technical tool for projecting and enhancing income from real estate, and a strategy for de-risking investments by hyper-focusing on the necessities of life. Reducing domestic space to a technology for bare repose, bed-as-asset offers key insights into how the rhythms of housing are being harmonized with the needs of investors. |
| Keywords: | beds; assetization; financialization; rent; co-living; housing; T&F deal |
| JEL: | J1 |
| Date: | 2024–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120046&r= |
| By: | Miguel Atienza; Marcelo Lufin; Moritz Breul; |
| Abstract: | New industrial paths do not necessarily translate into regional economic development. This study focuses on how asset mobilization for new industrial paths contributes to economic development. We analyze the mining service supplier industry in Antofagasta (Chile) from 1974 to 2021 and how changing human capital mobilization affected regional development opportunities. The declining territorial embeddedness of mining-related workers through long-distance commuting has weakened the mechanisms that translate path development into regional economic development. The study highlights the value of a multi-scalar focus on asset mobilization processes to improve our understanding of what kind of regional development is generated by new paths. |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2417&r= |
| By: | Inoue, Atsushi (Nippon Institute for Research Advancement); Tanaka, Ryuichi (University of Tokyo) |
| Abstract: | In this study, we examine the impact of a student's household socioeconomic status (SES) rank within a class on two critical factors affecting the accumulation of human capital: school bullying victimization and school absence. We identify the effect from the variation of a within-class SES rank of students assigned to different schools and classes, controlling the absolute level of SES and class fixed effects. Using the data from middle-school students in the Trends in International Mathematics and Science Study (TIMSS), we find that, although the absolute level of SES is negatively associated with these incidences, students with a high SES rank within a class are more likely to be the victims of school bullying and to be absent from school. We confirm that these results are robust when the sample is restricted to schools where students' assignment to classes is as good as random. |
| Keywords: | rank, socioeconomic status, school bullying, school absence |
| JEL: | I21 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16975&r= |
| By: | Jimena Villanueva Kiser; Riley Wilson |
| Abstract: | Exploiting variation created by Deferred Action for Childhood Arrivals (DACA), we document the effects of immigrant legalization on mobility investments and economic outcomes. DACA increased both geographic and job mobility of young immigrants, leading them to high paying labor markets and licensed occupations. Employing these shifts, we examine whether these gains to immigrants are offset by losses among U.S.-born workers. Employment of U.S.-born workers grows in the occupations that DACA recipients shifted into after DACA is implemented, even when controlling for local demand. Spillover estimates are consistent with worker complementarities and suggest that immigrant legalization generates broader economic benefits. |
| Keywords: | legal status, DACA, immigration, geographic mobility, job mobility, occupational licensing, local labor markets |
| JEL: | J15 K37 R23 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_11106&r= |
| By: | Monika Kurian; Pawel Swianiewicz; Filipe Teles |
| Abstract: | Inter-municipal co-operation (IMC) has proved to be a constructive and efficient instrument in many EU and OECD countries for solving several issues at the local government level, including the lack of resources, administrative fragmentation, the investment burden of individual municipalities or better and more efficient organisation of public service provision. Although IMC is still often thought of as an alternative to the politically sensitive merging of small municipalities, nowadays its use has raised the interest of public administrations whose local governments are medium- and large-sized and that see this instrument as a way to empower local governments, provide them with more responsibilities, ensure sustainability of public services and fuel planning capacities and strategic thinking at the local and regional level. This paper summarises examples from EU and OECD countries where IMC either has a long-standing history or has recently received increased support and attention. It also provides an analysis of the legislative basis, support and incentives and practical data of IMC in the Western Balkan administrations. The paper offers several recommendations specific to the Western Balkan administrations for how to benefit from IMC. |
| Keywords: | cross-border co-operation, economies of scale, inter-municipal co-operation, local government autonomy, local government financing, local governments, multi-level governance, public administration, subnational governments, territorial fragmentation, Western Balkan administrations, Western Balkan local governments |
| Date: | 2024–06–06 |
| URL: | https://d.repec.org/n?u=RePEc:oec:govaac:70-en&r= |
| By: | Antman, Francisca M. (University of Colorado, Boulder); Duncan, Brian (University of Colorado Denver) |
| Abstract: | We merge the longitudinally linked historical U.S. Census records with data on lynchings of Hispanics in Texas to investigate the impacts of historical lynchings of ethnic Mexicans in Texas on U.S.-born Mexicans Americans. Using variation in lynching incidents across counties over time, we explore the impacts of local exposure to lynchings during childhood on long-run outcomes such as earnings, education, and home ownership of adults in 1940. Our findings are suggestive of small, negative impacts, but we caution that more research in this area is needed for a more robust interpretation of the results. |
| Keywords: | historical lynchings, Mexican Americans, Texas |
| JEL: | J15 N31 N32 I2 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16974&r= |
| By: | Bontemps, Christian; Martini, Gianmaria; Porta, Flavio |
| Abstract: | This paper studies the relationship between air transportation, tourist _ows, and subsidies to Low Cost Carriers (LCCs), a policy used by many national and local governments to stimulate tourist arrivals. To test the policy empirically, we use a two-stage empirical model. In the _rst stage, we estimate a structural model applied to air transport, and in the second stage, we link passenger arrivals to regional tourism _ows. In this way, we use exogenous shocks (subsidies to LCCs) in airline supply to analyze the causal link with tourist arrivals. This model is applied to tourist _ows from European regions to Italian regions from 2016 to 2018. Our counterfactual analyses consider two regimes for implementing subsidies to LCCs, following the literature coming from Oates (1993, 1999) contributions: a centralized, uniform policy for all regions and a decentralized policy in which subsidies are adopted by a single region. Our simulations reveal that subsidies to LCCs are e_ective in stimulating tourism, and that a centralized regime is more e_ective than a decentralized one. In fact, the latter generates externalities in regions that do not implement the subsidy, making the decentralised policy economically sub-optimal and unsustainable. |
| Keywords: | Air transportation and tourism; Structural model |
| JEL: | R41 R48 O18 |
| Date: | 2024–05–23 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:129352&r= |
| By: | Bathelt, Harald; Buchholz, Maximilian; Storper, Michael |
| Abstract: | Social scientists and policymakers alike have become increasingly concerned with understanding the nature, causes, and consequences of inter-regional inequality in economic living conditions. Contemporary spatial inequality is multi-faceted—it varies depending on how we define inequality, the scale at which it is measured, and which groups in the labor force are considered. Increasing economic inequality has important implications for broader social and political issues. Notably, it is difficult to account for the rise of far-right populism in industrialized countries without considering the context of growing inter-regional inequality. Important explanations for the rise in inter-regional inequality include changing patterns of worker and firm sorting processes across space, major transitions like the reorientation of the economy from manufacturing to digital technologies, and increasing global economic integration, as well as policy. Different causal explanations in turn imply a different role for place-based policy. This article introduces the context of the special issue on the nature, causes, and consequences of inter-regional inequality, focusing specifically on inequality in North America and Western Europe, and aims to identify challenges for, and spark further research on, inter-regional inequality. |
| Keywords: | global economic integration; inter-regional connectivity; inter-regional inequality; place-based policies; political polarization; sorting across space |
| JEL: | D63 D72 D83 F21 O18 R11 |
| Date: | 2024–04–02 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:123014&r= |
| By: | Raffi E. Garcia; Alberto Ortega |
| Abstract: | We examine the impact of local racial demonstrations, such as Black Lives Matter (BLM) protests, and the subsequent racial justice movement following the death of George Floyd on racial disparities in Paycheck Protection Program loan disbursements to small businesses. Using difference-in-differences and event-study methodologies, we find that local racial protests improved credit access for Black business owners. Additionally, the increased social media and public attention following Floyd's death affected the public perception of racial equity issues, resulting in a positive moderating effect on the loan amounts distributed to Black owners relative to other racial-ethnic groups. Our findings indicate that both implicit and explicit racial bias decreased after Floyd’s death, including finance occupations. |
| JEL: | G20 G28 G40 J15 J7 L26 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32477&r= |
| By: | Hasager, Linea (University of Copenhagen); Jørgensen, Mia (Danmarks Nationalbank) |
| Abstract: | Does living in a low-income neighborhood have negative health consequences? We document causal neighborhood effects on health by exploiting a Spatial Dispersal Policy that quasi-randomly resettled refugees across neighborhoods from 1986 to 1998. Refugees allocated to low-income neighborhoods had a 12 percent higher risk of having developed a lifestyle related disease 8 to 15 years after immigration compared with those allocated to high-income neighborhoods. Our results suggest that interaction with neighbors and the characteristics of the immediate environment are important determinants for health outcomes. Differences in health care access, ethnic networks, and individual labor market outcomes cannot explain our findings. |
| Keywords: | health inequality, Refugee Dispersal Policy, lifestyle related diseases, neighborhood effects |
| JEL: | J15 I12 I14 I31 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16949&r= |
| By: | Dorward, Nick; Fox, Sean; Hoelscher, Kristian |
| Abstract: | Cities, and the process of urbanization more broadly, play an integral role in narratives and theories of political change, from revolutions to democratization. Yet most accounts fail to make clear distinctions between the political implications of (i) population concentration (spatial context effects), (ii) socioeconomic change in cities (demographic composition effects), and (iii) increases in the size of urban populations (scale effects). These distinctions are significant in the post-WWII context, which has seen rapid “urbanization without growth” in many low- and middle-income countries. We argue that cities facilitate political activity through spatial effects, tend to have populations biased in favor of democracy due to compositional effects, and that these effects have scalar properties—i.e. they increase with city size. Analysis of World Values Survey data from over 179, 000 individuals across 95 countries and cross-national regressions analyzing determinants of political change since 1960 in 161 countries are consistent with this theory. |
| Date: | 2024–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:y6qpj&r= |
| By: | Alexandra de Gendre; Krzysztof Karbownik; Nicolas Salamanca; Yves Zenou |
| Abstract: | We develop a multi-agent model of the education production function where investments of students, parents, and teachers are linked to the presence of minorities in the classroom. We then test the key implications of this model using rich survey data and a mandate to randomly assign students to classrooms. Consistent with our model, we show that exposure to minority peers decreases student effort, parental investments, and teacher engagement and it results in lower student test scores. Observables correlated with minority status explain less than a third of the reduced-form test score effect while over a third can be descriptively attributed to endogenous responses of the agents. |
| Keywords: | minorities, indigenous students, peer effects, student effort, parental investments, teachers |
| JEL: | I23 I26 D13 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_11105&r= |
| By: | Tomohiro HIRANO; Alexis Akira Toda |
| Abstract: | We analyze equilibrium housing prices in an overlapping generations model with perfect housing and rental markets. The economy exhibits a two-stage phase transition: as the income of home buyers rises, the equilibrium regime changes from fundamental to bubble possibility, where fundamental and bubbly equilibria can coexist. With even higher incomes, fundamental equilibria disappear and housing bubbles become a necessity. Even with low current incomes, housing bubbles may emerge if home buyers have access to credit or have high future income expectations. Contrary to widely-held beliefs, fundamental equilibria in the possibility regime are inefficient despite housing being a productive non-reproducible asset. |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:cnn:wpaper:24-009e&r= |
| By: | Amendolagine, Vito; Crescenzi, Riccardo; Rabellotti, Roberta |
| Abstract: | This paper investigates how institutional conditions at national and regional levels shape the decisions of Multinational Enterprises (MNEs) to invest abroad by means of either acquisitions or greenfield investments. The empirical analysis covers all Foreign Direct Investment (FDI) projects in the European Union by the largest MNEs in the world to study alternative choices by the same firm and account for firm-level characteristics in investment decisions. The empirical results show that - other things being equal - regions with stronger investment eco-systems are more likely to attract acquisitions, while greenfield investments are more likely in regions with comparatively weaker systemic conditions. Howerver, the regional quality of institutions makes a fundamental difference to the nature of the investment projects attracted by regions: those with high quality of government can attract greenfield investments undertaken by the most productive MNEs. By improving their quality of government, local and regional policy makers can attract higher quality greenfield investment projects to their constituencies, potentially breaking the vicious circle between low productivity areas and low productivity FDI. |
| Keywords: | foreign direct investment; greenfield investment; cross-border acquisitions; multinational enterprises; firm heterogeneity; regions; European Union; institutions; European Union Horizon 2020 Programme H2020/2014-2020 (Grant Agreement n 639633-MASSIVE-ERC-2014-STG).; Wiley deal |
| JEL: | R12 R58 F23 |
| Date: | 2024–05–13 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122662&r= |
| By: | Wiebe, Michael |
| Abstract: | Gendron-Carrier et al. (2022) studies the effect of subway openings on urban air pollution. The authors find a null average effect, but a negative effect in cities with high initial pollution. In this comment, I perform several robustness checks on the negative effect for high-pollution cities, and repeat the main analyses for low-pollution cities. I show that the main finding for high-pollution cities is robust, and find mixed results for low-pollution cities. I implement an alternative back-of-the-envelope calculation for the effect of subway openings on infant mortality, and find a smaller number of averted deaths. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:i4rdps:121&r= |
| By: | IODICE Silvia (European Commission - JRC); ARBAU Luca; MAISTRALI Antigoni (European Commission - JRC); MARANDO Federica (European Commission - JRC); MELCHIORRI Michele (European Commission - JRC); PROIETTI Paola (European Commission - JRC); SULIS Patrizia (European Commission - JRC); TAINGUY Ophélie; VANDECASTEELE Ine |
| Abstract: | Heatwaves are one of the most concerning consequences of climate change, with record-breaking temperatures becoming more frequent and intense, and projected to continue. Extreme heat is particularly alarming in cities, where it leads to the Urban Heat Island effect. This effect causes higher local temperatures and urban areas to become hotter than surrounding suburban regions and rural areas. This is connected to the presence of more sealed surfaces and higher density of both people and heat-emitting infrastructures. We need to rapidly reduce greenhouse gas emissions to limit climate change. At the same time, we should adapt by diminishing exposure and vulnerability and increasing the overall resilience and adaptive capacity of cities. The deployment of green and blue infrastructures is one of the most effective measures to counteract the urban heat island effect. However, the combination of several strategies adapted to the local circumstances is the most powerful. This policy brief focuses on how to tackle severe heat in cities and provides recommendations, best practices and analytical tools that can be used by local authorities. |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc137891&r= |
| By: | Koike Yasutaka-Mori; Toshitaka Maruyama; Koki Okumura |
| Abstract: | This paper develops an endogenous growth model that incorporates a frictional inventor market and examines the allocation of inventors across firms, knowledge diffusion, and its impact on growth. In our model, inventors play dual roles: they engage in in-house R&D and transfer knowledge from previous employers to new ones when changing jobs. Using an administrative panel dataset on German inventors matched to their employing establishments and patents, we find that, relative to general workers, inventors are more likely to transition to less productive establishments and suffer a higher wage growth via the transition. We also find that the knowledge base of establishments measured by patents grows faster when a significant proportion of their inventors originate from establishments possessing a larger knowledge base. We then calibrate the model to reflect these empirical findings and examine the effects of innovation policy. While subsidies to frontier firms discourage knowledge diffusion from these firms to technologically lagging firms, these subsidies also encourage innovation within frontier firms. The former negative effect dominates in the short term, but the latter positive effect dominates in the long run. |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:dpr:wpaper:1244&r= |
| By: | Coskun, Sena (Institute for Employment Research (IAB), Nuremberg, Germany); Dauth, Wolfgang (Institute for Employment Research (IAB), Nuremberg, Germany); Gartner, Hermann (Institute for Employment Research (IAB), Nuremberg, Germany); Stops, Michael (Institute for Employment Research (IAB), Nuremberg, Germany); Weber, Enzo (Institute for Employment Research (IAB), Nuremberg, Germany ; Univ. Regensburg) |
| 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." (Author's abstract, IAB-Doku) ((en)) |
| Keywords: | Bundesrepublik Deutschland ; Pandemie ; IAB-Open-Access-Publikation ; Auswirkungen ; Berufsgruppe ; Entwicklung ; geschlechtsspezifische Faktoren ; abhängig Beschäftigte ; Integrierte Erwerbsbiografien ; Integrierte Erwerbsbiografien ; Pendelwanderung ; regionale Verteilung ; regionaler Arbeitsmarkt ; Stadtregion ; Telearbeit ; Wohnsituation ; Arbeitsplatzwechsel ; Arbeitsweg ; 2016-2022 |
| JEL: | J61 R23 |
| Date: | 2024–04–12 |
| URL: | https://d.repec.org/n?u=RePEc:iab:iabdpa:202406&r= |
| By: | Kevin Pineda-Hernández (ULB (CEBRIG, DULBEA), UMONS (Soci&ter) and FRS-FNRS); François Rycx (ULB (CEBRIG, DULBEA), UMONS (Soci&ter), UCLouvain (IRES), GLO and IZA); Melanie Volral (UMONS (Soci&ter) and ULB (CEBRIG, DULBEA)) |
| Abstract: | A large body of literature shows that first-generation immigrants born in developing countries experience a higher likelihood of being overeducated than natives (i.e. immigrant overeducation). However, evidence is remarkably scarce when it comes to the overeducation of second-generation immigrants. Using a matched employer-employee database for Belgium over the period 1999-2016 and generalized ordered logit regressions, we contribute to the literature with one of the first studies on the intergenerational nexus between overeducation and origin among tertiary-educated workers. We show that immigrant overeducation disappears across two generations when workers work full-time. However, immigrant overeducation is a persistent intergenerational phenomenon when workers work part-time. Our gender-interacted estimates endorse these findings for female and male immigrants. |
| Keywords: | Immigrants, intergenerational studies, labour market integration, overeducation, generalized ordered logit, moderating factors. |
| JEL: | I21 I22 J15 J24 J61 J62 J71 |
| Date: | 2024–05–28 |
| URL: | https://d.repec.org/n?u=RePEc:ctl:louvir:2024007&r= |
| By: | Romero, Sandra MCP |
| Abstract: | The Universal Basic Mobility (UBM) pilots in Oakland and Los Angeles, launched in 2021, were innovative initiatives to address transportation equity and access issues in historically underserved communities. These experimental programs examined the impact of providing flexible transportation benefits to low-income residents. However, the current program designs fall short of achieving accessibility and sustainability objectives. Instead, they serve as initial steps in exploring UBM as a potential transportation equity strategy. The report explores the motivation behind local agencies initiating UBM pilots despite existing transportation benefit initiatives, and provides insights from program practitioners on the challenges and opportunities in UBM implementation. |
| Keywords: | Social and Behavioral Sciences, Universal Basic Mobility, Mobility as a Service, transportation disadvantaged persons, transportation equity, pilot studies, user side subsidies, accessibility, sustainable transportation |
| Date: | 2024–05–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsrrp:qt4b73k640&r= |
| By: | Wang-Sheng Lee (Centre for Development Economics and Sustainability, Monash University); Umair Khalil (Deakin University); David Johnston (Centre for Health Economics, Monash University) |
| Abstract: | This paper estimates the impacts of religiosity on criminal activity using a city-wide shock to religious sentiment from a 2015 Papal visit. Using daily data on all reported offences between 2010 and 2015 in Philadelphia at the census tract level and a difference-in-differences approach, we demonstrate significant reductions in less serious crimes in the week of the visit and for several weeks following. Reductions are particularly pronounced for drug offences and in historically Christian areas. Notably, similar crime effects are not found for President Obama’s 2015 visit, suggesting changes in police deployment do not drive results. |
| Keywords: | Economics of religion, Deviant behavior, Crime |
| JEL: | D74 I25 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:mhe:chemon:2024-08&r= |
| By: | Kevin André Pineda-Hernández; François Rycx; Mélanie Volral |
| Abstract: | A large body of literature shows that first-generation immigrants born in developing countries experience a higher likelihood of being overeducated than natives (i.e. immigrant overeducation). However, evidence is remarkably scarce when it comes to the overeducation of second-generation immigrants. Using a matched employer-employee database for Belgium over the period 1999-2016 and generalized ordered logit regressions, we contribute to the literature with one of the first studies on the intergenerational nexus between overeducation and origin among tertiary-educated workers. We show that immigrant overeducation disappears across two generations when workers work full-time. However, immigrant overeducation is a persistent intergenerational phenomenon when workers work part-time. Our gender-interacted estimates endorse these findings for female and male immigrants. |
| Keywords: | Immigrants; intergenerational studies; labour market integration; overeducation; generalized ordered logit; moderating factors |
| JEL: | I21 I22 J15 J24 J61 J62 J71 |
| Date: | 2024–05–06 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/373580&r= |
| By: | Postepska, Agnieszka (University of Groningen); Voloshyna, Anastasiia (University of Groningen) |
| Abstract: | Following the Russian Federation's invasion of Ukraine on 24th February 2022, over a quarter of the Ukrainian population became displaced, with many seeking refuge across Europe. Czechia emerged as a key destination, granting Temporary Protection to approximately 433 thousand Ukrainians by the end of 2022, thus sheltering the highest per capita number of Ukrainian refugees worldwide. The swift enactment of the Lex Ukraine Act granted the refugees benefits typically reserved for permanent residents, such as unrestricted access to the labour market. This led to a notable increase in the number of Ukrainians officially employed and expanding Czechia's workforce. Using individual micro-level data from sixteen waves of the Labour Force Sample Survey (LFSS), collected between the 1st quarter of 2019 and the 4th quarter of 2022, we examine the short-term impact of the influx of the Ukrainian refugees on the labour market outcomes of locals in Czechia. Using several empirical strategies, including a two-way fixed effects model (TWFE), extensions to the canonical difference in differences (DiD) estimator, and matching on selective characteristics of individuals/districts and pre-treatment trends, we find consistent evidence that the influx of refugees had no economically meaningful impact on employment, unemployment, or inactivity rates within the local population, regardless of gender, educational level, or industry, noting that we find small negative effects on employment and positive effects on unemployment in sectors that experienced the largest influx of workers. However, we treat these results with caution due to the small sample sizes. Most importantly, we find consistent evidence of an increase in weekly working hours among local females in treated districts. This increase is primarily driven by workers with secondary education employed in the most affected sectors. |
| Keywords: | Ukrainian refugees, immigrants, local labour market, labour supply |
| JEL: | F22 J15 J21 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16965&r= |
| By: | Silvia Angerer; Hanna Brosch; Daniela Glätzle-Rützler; Philipp Lergetporer; Thomas Rittmannsberger |
| Abstract: | We present representative evidence of discrimination against migrants through an incentivized choice experiment with over 2, 000 participants. Decision makers allocate a fixed endowment between two receivers. To measure discrimination, we randomly vary receivers’ migration background and other attributes, including education, gender, and age. We find that discrimination against migrants by the general population is both widespread and substantial. Our causal moderation analysis shows that migrants with higher education and female migrants experience significantly less discrimination. Discrimination is more pronounced among decision makers who are male, non-migrants, have right-wing political preferences, and live in regions with lower migrant shares. |
| Keywords: | discrimination, representative sample, migration, experiment |
| JEL: | C91 C93 J15 D90 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_11117&r= |
| By: | Andrés Barrios Fernández; Marc Riudavets-Barcons |
| Abstract: | This paper uses rich administrative data from Chile to estimate teacher value added (TVA) on test scores and on an educational attainment index. We allow each teacher to have a different TVA for male and female students and show that differences in TVA explain an important part of the gender gaps we observe in test scores and postsecondary education trajectories. The gaps in gender-specific teaching effectiveness are especially pronounced in mathematics. Indeed, eliminating within-teacher differences in math test score VA would reduce the gender gap in math performance by 67%. We explore what could be behind these gaps in gender-specific TVA and find no significant differences in what makes teachers effective for male and female students. We do find, however, significant associations between teacher characteristics-e.g., gender and performance in the college admission exam-and practices-e.g., paying attention to low-performing students, congratulating students who improve, and having a good relationship with students-with teacher effectiveness. Finally, we also show that math teachers tend to be biased in favor of male students and that teachers with smaller gender biases are more effective for both, male and female students. |
| Keywords: | teacher value-added, education gender gaps, teaching practices |
| Date: | 2024–04–29 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1995&r= |
| By: | Alexandra de Gendre; Krzysztof Karbownik; Nicolás Salamanca; Yves Zenou |
| Abstract: | We develop a multi-agent model of the education production function where investments of students, parents, and teachers are linked to the presence of minorities in the classroom. We then test the key implications of this model using rich survey data and a mandate to randomly assign students to classrooms. Consistent with our model, we show that exposure to minority peers decreases student effort, parental investments, and teacher engagement and it results in lower student test scores. Observables correlated with minority status explain less than a third of the reduced-form test score effect while over a third can be descriptively attributed to endogenous responses of the agents. |
| JEL: | D13 I23 I26 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32429&r= |
| By: | Sarra Ben Yahmed; Francesco Berlingieri; Eduard Brüll |
| Abstract: | We show that digital capital and working from home were essential for the resilience of local labour markets in the context of the COVID-19 crisis in Germany. Employment responses differed widely across local labour markets, with differences in short-time work rates of up to 30 percentage points at the beginning of the pandemic. Using recent advancements in the difference-in-differences approach with a continuous treatment, we find that pre-crisis digital capital potential reduced short-time work rate by up to 3 percentage points. The effect was nonlinear, disproportionately disadvantaging regions at the lower end of the digital capital distribution for a longer period. One channel of impact is working from home, which was more often adopted in regions with higher digital capital. But digital capital smoothed the employment shock beyond the effect of remote work. |
| Keywords: | Covid-19, crisis, digitalisation, employment, information and communication technologies, local labour markets, resilience, short-time work, working from home |
| JEL: | J21 O30 R12 R23 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_11114&r= |
| By: | Rogers, Ben; da Cruz, Nuno F.; Ripa, Francesco; Hamilton-Jones, Imogen |
| Abstract: | In recent years, post-growth ideas and policies have been catching the attention of policymakers, activists, and academics across the globe. Our research finds that European cities in particular are at the leading edge of the recent surge in interest. From Amsterdam to Glasgow, Barcelona to Vienna, European city governments and urban residents are seeking ways to realign their priorities away from Gross Domestic Product (GDP) growth and towards the pursuit of social and ecological well-being. Despite this trend, most of the existing thought on post-growth has focused on the national or global levels; much less attention has been paid to what a distinctly urban post-growth political agenda might look like. This article begins to fill that gap, focusing on the European case and the cities currently at the forefront of post-growth experimentation. We explore the emergence of post-growth thinking both globally and at the city level by analyzing related terms (such as circular economy or degrowth) in academic and policy publications, and in Google search trends. While post-growth-related terms have only recently begun to be linked to cities, our analysis shows that interest in urban post-growth is rising steeply, especially in Europe where even the most growth-critical terms are beginning to permeate mainstream political debates. To conclude, we step back to consider the relevance of post-growth ideas to European cities and to ask what an urban post-growth agenda might look like. |
| Keywords: | circular economy; Doughnut Economics; European cities; beyond GDP; urban post-growth; LSE Cities' European Cities Programme at the London School of Economics and Political Science is supported by Bloomberg Philanthropies |
| JEL: | O40 R00 |
| Date: | 2023–05–08 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:119483&r= |
| By: | Baker, Emma; Coffee, Neil T; Page, Kira; Daniel, Lyrian; Sarkar, Somwrita |
| Abstract: | Understanding the patterns and impacts of population migrations within Australia is key for governments and providers of housing, infrastructure and services to be able to plan where they will prioritise resources. New AHURI research critically assesses the population projection methods available to Australian decision-makers and planners. Population projections are modelled either as top-down models, where larger spatial units are used to control the smaller area projections, or as bottom-up models, where the smaller area projections are added together to form the population projection of the larger spatial units. For example, with a top-down projection Australia’s total population can be used as a control total for the state and territory projections and, in turn, these are used to control the smaller regional populations projections. In the bottom-up model, the projected populations of the states and territories would be added together to form the total population projection of Australia. A significant finding is that because different users need different levels of understanding about future population changes, it is unlikely the existing methods could be unified into one nationally consistent approach that would be accurate enough for everyone’s needs. However, results can be improved by users prioritising good quality, reliable and timely data; ensuring consistent approaches and shared information sources; and making sure they have a good understanding of each method’s strengths and weaknesses. |
| Date: | 2024–05–29 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:3qhcz&r= |
| By: | Tobias Koenig; Thomas Brenner; ; |
| Abstract: | The evolution of industrial clusters has received much attention in the recent literature on evolutionary economic geography (EEG) and regional science. However, scientific results on the influence of different factors on the decline or renewal of mature industrial clusters are scarce. Therefore, this study identifies different factors: preconditions, triggering events and self-augmenting processes, and examines their influence on declining or renewing industrial clusters. In order to obtain transferable results, this meta-analysis is based on 69 individual empirical case studies from different countries and industries. The empirical results show, firstly, that the decline and renewal of industrial clusters is driven by different preconditions, triggering events and self-augmenting processes. Secondly, these factors change over time and may have both positive and negative dimensions. Finally, the decline of industrial clusters is more often associated with unfavorable preconditions and triggering events, while self- augmenting processes are more often found in the context of cluster renewal. |
| Keywords: | Cluster; Evolution; Decline; Renewal; Meta-analysis |
| JEL: | O33 R10 R11 |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2418&r= |
| By: | Subhayu Bandyopadhyay; Hoang Le |
| Abstract: | Geography, historical linkages and economic partnerships have shaped variations in immigration flows across the U.S. and other developed nations. |
| Keywords: | immigration; Organisation for Economic Co-operation and Development (OECD) |
| Date: | 2024–05–07 |
| URL: | http://d.repec.org/n?u=RePEc:fip:l00001:98282&r= |
| By: | Bouvard, Matthieu; de Motta, Adolfo; Titman, Sheridan |
| Abstract: | We explore the diversification of an urban economy where the labor specialization choices of its residents determine the city’s exposure to sectoral shocks. The presence of demand-driven externalities introduces the possibility of city-wide coordination failures. Residents, when making their specialization choices, do not account for the costs of these coordination failures, and as a result, the equilibrium level of diversification is ineÿcient. The optimal policies that address these externalities depend on the city’s economic condition, with prosperous urban economies deriving a greater benefit from fostering diversification. Thus, the paper rationalizes the widespread industrial policies that in some cases promote diversifying, while in others, specializing a city’s economy. |
| Keywords: | City diversification; industrial policy, city risk; coordination failures |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:129348&r= |
| By: | Daniela, Antonescu; Ioana Cristina, Florescu |
| Abstract: | In Romania, the issue of economic inequalities and regional convergence is one of the current important topics on which the attention of economic specialists and the decision-making factors is focused. In the current context, the regional policy in Romania is implemented at regional level, the regions being formed by counties that have voluntarily associated on the basis of a convention signed by the representatives of the county councils, respectively of the General Council of Bucharest. The paper is based on the analysis of the differences between the regions of Romania, in the period 2008-2022, during the COVID-19 pandemic, by highlighting the differences between the dynamics of certain indicators, of the analysis of the GINI index for measuring inequalities, trying to answer the question which of the two crises, financial or health, affected the level of territorial inequalities more and what was the evolution of the regions of Romania in these two sub-periods. |
| Keywords: | regional convergence, Gini Coefficient, NUTS 2 Regions, COVID-19 pandemic crisis, economic-financial crisis |
| JEL: | R0 R11 R15 R5 R58 |
| Date: | 2024–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120992&r= |
| By: | Broader, Jacquelyn |
| Abstract: | In the United States, public transit agencies are increasingly growing interested in deploying open-loop payment systems for public transit fare payments. This interest is based on the benefits these systems can offer, from faster boarding times to the potential of attracting more riders. Open-loop fare payment systems’ popularity is evidenced by the growing number of American public transit agencies who have deployed them; most of whom (63%) are located in California. The overlap between public transit riders who are both transit-dependent and financially excluded (i.e., have no or limited access to financial services) creates the opportunity for public transit agencies deploying open-loop payment systems to leverage these systems to increase financial service access for transit dependent, financially excluded riders. Individuals who are both transit-dependent and financially excluded are typically low-income, identify as part of a racial or ethnic minority group, immigrants, and/or women. As a result of these demographic characteristics, this work focuses on these populations. Additionally, financial inclusion, especially for these populations, is a critical step for economic and social mobility in the United States. This research focuses on California and explores how to leverage public transit agency deployment of open-loop payment systems to increase riders' financial service access. This research is comprised of a literature review, expert interviews (n=11), population needs mapping, and partnership proposals. In general, public transit agencies can strategically work with financial sector-based partners who focus on serving the transit agencies' priority rider groups. |
| Keywords: | Social and Behavioral Sciences, Public transit, automatic fare collection, transportation disadvantaged persons, low income groups, transportation equity |
| Date: | 2024–06–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsrrp:qt88v9c0wm&r= |
| By: | Brummund, Peter (University of Alabama); Makowsky, Michael D. (Clemson University) |
| Abstract: | Participation in social groups ties members to local communities. Employers can capture these benefits as rents when geographically-specific club goods raise the cost of labor mobility. We measure ties to local clubs using the shares of households identifying with a minority religion, enrollment of children in Islamic schools, and membership in secular savings clubs. We identify larger wage markdowns where households have stronger ties to local club goods. Complementarity between labor market concentration and club goods offers an explanation of rising wage markdowns absent increasing concentration, while adding to the difficulty in separating monopsony rents from compensating wage differentials. |
| Keywords: | monopsony, imperfect competition, club goods, religion |
| JEL: | J42 J31 J24 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16999&r= |
| By: | Claudio Ferraz; Dirk Foremny; Juan Francisco Santini |
| Abstract: | This paper investigates how non-tax revenues impact tax collection in Brazilian municipalities, focusing on shifts in intergovernmental transfers due to population updates. Our analysis reveals asymmetric effects of shocks: revenue gains lead to increased spending without tax reductions, while losses in transfers prompt investments in fiscal capacity and boost tax revenues. Enhancing fiscal capacity entails adjusting tax bureaucrat payments, improving property registries, and cracking down on delinquency, with heterogeneous responses based on political competition and the educational levels of local leaders and the bureaucracy. These findings emphasize the importance of rules that reduce the reliance on non-tax revenues and promote effective tax collection. |
| JEL: | H71 H72 H83 P11 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32440&r= |
| By: | Shaheen, Susan A.; Pan, Alexandra |
| Abstract: | The growth of carsharing in North America since the service was first introduced in 1994 has had notable impacts on travel behaviour, including vehicle ownership and modal shift. Existing forms of carsharing (e.g., roundtrip, one-way, and peer-to-peer) alter the conventional cost structure of driving from one of fixed cost to variable cost. Multiple studies have shown that overall, carsharing users increase public transit and non-motorized modal use, with some users also selling their vehicle or postponing future vehicle purchases as a result of being a carsharing member. These modal impacts have led to a reduction in greenhouse gas emissions associated with driving. Further, research has shown that carsharing may provide additional accessibility to individuals without a personal vehicle. In this chapter, we provide an overview of the travel behaviour impacts of carsharing and findings on the demographics of carsharing users. |
| Keywords: | Social and Behavioral Sciences |
| Date: | 2024–04–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsrrp:qt9qf5h094&r= |
| By: | Hao Zeng; Wei Zhong; Xingbai Xu |
| Abstract: | The spatial autoregressive (SAR) model has been widely applied in various empirical economic studies to characterize the spatial dependence among subjects. However, the precision of estimating the SAR model diminishes when the sample size of the target data is limited. In this paper, we propose a new transfer learning framework for the SAR model to borrow the information from similar source data to improve both estimation and prediction. When the informative source data sets are known, we introduce a two-stage algorithm, including a transferring stage and a debiasing stage, to estimate the unknown parameters and also establish the theoretical convergence rates for the resulting estimators. If we do not know which sources to transfer, a transferable source detection algorithm is proposed to detect informative sources data based on spatial residual bootstrap to retain the necessary spatial dependence. Its detection consistency is also derived. Simulation studies demonstrate that using informative source data, our transfer learning algorithm significantly enhances the performance of the classical two-stage least squares estimator. In the empirical application, we apply our method to the election prediction in swing states in the 2020 U.S. presidential election, utilizing polling data from the 2016 U.S. presidential election along with other demographic and geographical data. The empirical results show that our method outperforms traditional estimation methods. |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2405.15600&r= |
| By: | Baskaran, Thushyanthan (Ruhr University Bochum); Hessami, Zohal (Ruhr University Bochum); Schirner, Sebastian (Ruhr University Bochum) |
| Abstract: | Do young politicians prioritize other types of municipal spending than old politicians? We study this question using hand-collected candidate-level data on municipal elections (1996-2020), along with detailed administrative data on municipal spending in Bavaria. Our identification strategy makes use of within-party candidate-level races for marginal seats. Our findings indicate that municipalities with a higher proportion of young councilors allocate more resources to social spending. Further analysis reveals that this social spending increase is primarily driven by the expansion of public child care. Exploring mechanisms, we find evidence suggesting that young councilors affect policy choices in- directly through between- and within-party bargaining. |
| Keywords: | young and old politicians, political selection, municipal spending, local councils |
| JEL: | D72 D78 H70 H72 J13 J14 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp17009&r= |
| By: | Jordan G. Taqi-Eddin |
| Abstract: | Claims of soft-handed prosecutorial policies and increases in crime were precipitating factors in the removal of Chesa Boudin as district attorney of the city and county of San Francisco. However, little research has been conducted to empirically investigate the veracity of these indictments on the former district attorney. Using regression discontinuity design (RDD), I find that the Boudin administration led to a 36\% and 21\% reduction in monthly prosecutions and convictions respectively for all crimes. Moreover, his tenure increased monthly successful case diversions by 58\%. When only looking at violent crimes during this period, the SFDA's office saw a 36\% decrease, 7\% decrease, and 47\% increase in monthly prosecutions, convictions, and successful case diversions respectively. Although, the decrease in monthly convictions was not statistically significant for the violent crimes subset. Additionally, I did identify a potentially causal relationship between lower numbers of prosecutions and higher levels of criminal activity, however, such findings did not meet the standard for statistical significance. Finally, I conclude that using machine learning algorithms, such as neural networks and K-nearest neighbors, in place of ordinary least squares regression for the estimation of the reduced form equation possibly may decrease the size of the standard errors of the parameters in the structural equation. However, future research needs to be conducted in this space to corroborate these initially promising findings. |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2405.11455&r= |
| By: | Tayibov, Khayyam (Department of Economics and Statistics) |
| Abstract: | This paper studies the question of how place of birth affects the design of effective tax policies. Using Swedish population-wide register data, I investigate the relationship between regional origin and economic outcomes. Using a numerical simulation approach, I explore the implications of tagging individuals based on their place of birth for optimal tax policy and income redistribution. The numerical simulations show that under optimal tax policy, individuals from more populous regions are consistently assigned higher marginal and average tax rates, implying that the government redistributes from these regions to less populous ones. Moreover, I find that such policies can lead to significant welfare improvements. |
| Keywords: | Optimal taxation; tagging; regional heterogeneity |
| JEL: | H21 H24 |
| Date: | 2024–05–23 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:vxesta:2024_009&r= |
| By: | Diego D\'iaz; Pablo Paniagua; Cristi\'an Larroulet |
| Abstract: | The consequences of natural disasters, such as earthquakes, are evident: death, coordination problems, destruction of infrastructure, and displacement of population. However, according to empirical research, the impact of a natural disaster on economic activity is mixed. Natural disasters could have significant economic effects, especially in developing economies. This is particularly important for highly seismic countries such as Chile and New Zealand. This paper contributes to the literature on natural disasters and economic development by analyzing the cases of two affected regions within these countries in the wake of major earthquakes experienced during 2010-2011: Maule (Chile) and Canterbury (New Zealand). We examine the impact of natural disasters on GDP per capita by applying the synthetic control method. Using the synthetic approach, we assess the effects of these two earthquakes by building counterfactuals to compare their recovery trajectories. We find that Chile and New Zealand experienced opposite economic effects. The Canterbury region grew 10% more in three years than its synthetic counterfactual without the earthquake, while the Maule region declined by 5%. We build synthetic controls at a regional and economic-sector level, looking at aggregated and sectoral effects. The difference in institutions, such as property rights and the large amount of government spending given for reconstruction after the New Zealand earthquake relative to Chile's, help to explain the difference in outcomes. |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2405.12041&r= |
| By: | Anepska, Veronika; Krotova, Sofiia; Mamchur, Polina; Tyshchenko, Sofiia |
| Abstract: | Gender equality is a pivotal aspect of an inclusive and just society. Equal educational opportunities for men and women are necessary for its achievement. This study analyzes the mutual influence between various social-economic factors and the gender parity index. The purpose of this paper is to identify the relationship between the gender parity index and gross primary school enrollment, annual GDP per capita growth, government expenditure on education, life expectancy, unemployment rate, group of income of the country, and its geographical region using regression analysis. Based on the results of our research, it is possible to form an idea of the further process of increasing gender equality in certain countries through the interaction with such factors as increasing primary school enrollment, improving economic conditions, and addressing regional disparities. |
| Keywords: | Education, Gender Parity Index, Regression Analysis |
| JEL: | I21 I24 I29 |
| Date: | 2024–05–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120958&r= |
| By: | Annamaria Fiore; Stefano Marastoni |
| Abstract: | This report examines the opportunities the local and regional policies offer to aid innovative entrepreneurships, focusing on the Apulian region. Through empirical observations and analysis, it specifically describes the Start Cup Puglia (SCP), the competition organized annually by ARTI. The competition incentivizes innovative business plans with high-knowledge content, offering project support, technical assistance, and business development services. The report concludes addressing policy recommendations, such as promoting startups as links between scientific knowledge and traditional production, fostering alliances, facilitating financing and market access, and enhancing digital platforms for team building. |
| Date: | 2024–05–23 |
| URL: | https://d.repec.org/n?u=RePEc:awg:insrep:ir12&r= |
| By: | Miriam Fritzsche |
| Abstract: | Across industrialized countries, regional disparities in labor market outcomes and income have increased in recent decades. This paper investigates how one of the largest localized labor demand shocks tied to the beginning of de-industrialization- the decline of the mining industry between 1960 and 2010 - affects labor market outcomes in the long run. The analysis relies on a new panel data set based on digitized census records from Belgium, France, the UK, and Germany that allows to trace labor market adjustments over 60 years for the male and female working-age population separately. For the causal estimation, I use an IV-shift share approach that exploits exogenous variation in the shifts induced by increased seaborne trade of energy substitutes and the share given by geological rock strata to predict mining activity. The male population disproportionately suffered under this (early) de-industrialization shock and the subsequent job loss. For the male population, the employment-population ratio has not yet recovered resulting in persistent local joblessness. In contrast, the female working-age population experienced a strong catch-up in employment and participation. I find that at the aggregate level, a substantial, albeit time-lagged population response paired with a strong increase in female participation rates fully compensate for the loss of male jobs over the decades. As a consequence, the male-female employment gap shrinks over time. |
| Keywords: | Structural change, local labor markets, regional disparities |
| Date: | 2024–05–14 |
| URL: | http://d.repec.org/n?u=RePEc:bdp:dpaper:0040&r= |
| By: | Berger, Helge; Neugart, Michael |
| Abstract: | Courts are an important element in the institutional framework of labor markets, often determining the degree of employment protection. German labor courts provide a vivid example in this regard. However, we know relatively little about court behavior. A unique dataset on German labor court verdicts reveals that social and other criteria like employee characteristics, the type of job, local labor market conditions and court composition influence court decisions. At least as striking is that workers’ chances to win depend on where and when their cases are filed. This generates considerable ex ante uncertainty about outcomes. |
| Date: | 2024–05–21 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:145350&r= |
| By: | Jos\'e-Ignacio Ant\'on; Juan Ponce; Rafael Mu\~noz de Bustillo |
| Abstract: | This study addresses the impact of illicit drug use on the labour market outcomes of men in Mexico. We leverage statistical information from three waves of a comparable national survey and make use of Lewbel's heteroskedasticity-based instrumental variable strategy to deal with the endogeneity of drug consumption. Our results suggests that drug consumption has quite negative effects in the Mexican context: It reduces employment, occupational attainment and formality and raises unemployment of local men. These effects seem larger than those estimated for high-income economies |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2405.10884&r= |
| By: | David W. Berger; Konstantin Milbradt; Fabrice Tourre; Joseph S. Vavra |
| Abstract: | We build a model of optimal fixed-rate mortgage refinancing with fixed costs and inattention and derive a new sufficient statistic that can be used to measure inattention frictions from simple moments of the rate gap distribution. In the model, borrowers pay attention to rates sporadically so they often fail to refinance even when it is profitable. When paying attention, borrowers optimally choose to refinance earlier than under a perfect attention benchmark. Our model can rationalize almost all errors of “omission” (refinancing too slowly) and a large fraction of the errors of “commission” (refinancing too quickly) previously documented in the data. |
| JEL: | E4 G21 G4 G5 R2 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32447&r= |
| By: | Timothy Freeman; Tim O'Brien (Center for International Development at Harvard University); Alejandro Rueda-Sanz; Ricardo Hausmann (Harvard's Growth Lab) |
| Abstract: | Wyoming communities are reliant on grants to fund local priorities, yet the grants system is not effectively meeting the needs of many communities across the state. This problem is central to the growth challenges of many rural economies across the state. Although this problem pre-dates the recent expansion of federal grant programs, the importance of this problem has grown in the last several years as the scale and complexity of federal grant opportunities — particularly discretionary grants — has increased. Wyoming communities are struggling to navigate and benefit from these federal funding opportunities. As of late 2023, the state is significantly underperforming many comparator states in the number of federal grants received and the distribution of federal grants across the state. Grant writers and administrators face a sometimes impossible task in navigating an ever-shifting grants landscape. This is a challenge for local governments across the country but may be especially important in Wyoming due to narrow local tax bases and the rural nature of the state. Through an eight-month effort combining research and action, we have explored the causes of this problem to inform potential solutions. We have identified four principal constraints that are most to blame for Wyoming’s underperformance: (1) Lack of relationships between communities and funders; (2) Inability to follow changing grant opportunities (esp. federal); (3) Shortage of prioritized community needs and “grant ready” project plans; and (4) Overreliance on “local heroes” – especially for smaller communities. We argue that these challenges are “principal constraints” because they are binding for the largest number of communities, especially smaller communities. However, there are additional constraints that are critical for other communities, especially those that have more experience with accessing state and federal grants. This note summarizes key evidence we have found on each of these principal constraints. These constraints occur early in the grants process, meaning many potentially promising grant opportunities are never pursued. We find that many federal grant programs and discretionary award processes are inconsistent with the realities of scarce staff, resources, and bandwidth of local governments, especially in small communities. However, we find widespread examples and evidence that these constraints can be overcome through actions to enable a strong state-wide network that supports local leaders and grant administrators. Examples of success within the state and in other states show that building the capabilities of the network and enabling all communities to access the knowhow of the network can lead to much better grant outcomes. The note closes with a discussion of how to target a network-enabling response to the grants problem. We outline a first-best option that centers on establishing regional officers who would be responsible for a set of tasks that would respond directly to the principal constraints identified. This approach would require annual funding, but preliminary analysis shows the return on investment overall would be very high and the approach would have the greatest benefits for smaller communities across the state. Very initial designs have been explored for how to establish such a system building on existing assets. Finally, we compare this first-best approach to alternative approaches that are closer to the current support actions underway in the state. |
| Keywords: | Wyoming |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:cid:wpfacu:441&r= |
| By: | Giulia Brancaccio (New York University); Myrto Kalouptsidi (Harvard University); Theodore Papageorgiou (Boston College) |
| Abstract: | Transportation infrastructure is vital for the smooth functioning of international trade. Ports are a crucial gateway to this system: with more than 80% of trade carried by ships, they shape trade costs, and it is critical that they operate efficiently. Yet ports are susceptible to disruptions, causing costly delays. With enormous budgets spent on infrastructure to alleviate these costs, a key policy question emerges: in a world with high volatility, what are the returns to investing in infrastructure? To address this question, we introduce an empirical framework that combines insights from queueing theory to capture port technology, with tools from demand estimation. We use our framework, together with a collection of novel datasets, to quantify the costs of disruptions and evaluate transportation infrastructure investment. Our analysis unveils three policy-relevant messages: (i) investing in port infrastructure can lead to substantial trade and welfare gains, but only if targeted properly– in fact, net of costs, investment has positive returns at a minority of US ports; (ii) there are sizable spillovers across ports, as investing in one port can decongest a wider set of ports, suggesting that decision-making should not be decentralized to local authorities; (iii) macroeconomic volatility can drastically change returns to investment and their geography. |
| Keywords: | transportation, infrastructure, ports, congestion, macroeconomic volatility, disruptions, spillovers, welfare |
| JEL: | E39 F1 F14 L0 L90 L91 R4 R41 R42 |
| Date: | 2024–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:boc:bocoec:1072&r= |
| By: | Bloomfield, Matthew J.; Heinle, Mirko; Timmermans, Oscar |
| Abstract: | Many firms use relative stock performance to evaluate and incentivize their CEOs. We document that such firms routinely disclose information that harms their peers' stock prices, and sometimes explicitly mention the harmed peers, by name, in these disclosures. Consistent with deliberate sabotage, peer-harming disclosures appear to be aimed at peers whose stock price depressions are most likely to benefit the disclosing firms' CEOs. The pricing effect of these disclosures does not reverse, suggesting that the disclosures contain legitimate information regarding peers' prospects. In sum, our results suggest that relative performance evaluation in CEO pay motivates CEOs to internalize the externalities of their disclosures, and strategically disclose information that harms peers' stock prices, in order to improve their firms' relative standing within their peer group. |
| Keywords: | relative performance evaluation; peer-harming actions; voluntary disclosure; sabotage; stock returns; capital markets |
| JEL: | G12 G14 J33 M41 |
| Date: | 2024–05–02 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122509&r= |
| By: | Julien Martin; Florian Mayneris |
| Abstract: | At a time when alarmist analyses of the decline of the Quartier latin are multiplying, we use public census data to describe the population of the Quartier latin and its evolution over the past twenty years. The demographic portrait we draw is more nuanced than the prevailing discourse. The Quartier latin appears to be a neighborhood of young professionals and university students, whose population has grown faster than the rest of the Montreal metropolitan area from 2001 to 2021. Levels of education and average income have also risen faster than in the rest of the metropolis, reflecting a form of residential gentrification. The Habitations Jeanne-Mance, which provide low-cost housing for low-income households in the heart of the Quartier Latin, on the other hand, have seen their population decline. These findings suggest that housing should be a central issue in the revival of the Quartier Latin, so that it can be reconciled with the maintenance of a certain social mix. Alors que les analyses alarmistes sur le déclin du Quartier latin se multiplient, nous utilisons les données publiques de recensement pour décrire la population du Quartier latin et son évolution au cours des vingt dernières années. Le portrait démographique que nous en tirons est plus nuancé que le discours ambiant. Le Quartier latin apparaît comme un quartier de jeunes actifs diplômés et d’étudiants universitaires dont la population a connu une croissance supérieure au reste de la région métropolitaine de Montréal entre 2001 et 2021. Le niveau d’éducation et le revenu moyen y ont aussi progressé plus rapidement que dans le reste de la métropole, reflétant une forme d’embourgeoisement résidentiel. Les Habitations Jeanne-Mance, qui fournissent au coeur du Quartier latin des logements à loyer modique à destination de ménages à faible revenu, voient au contraire leur population décliner. Ces constats invitent ainsi à faire de la question du logement un enjeu central de la relance du Quartier latin, afin que celle-ci puisse être conciliée avec le maintien d’une certaine mixité sociale. |
| Keywords: | Census, Latin Quarter, Social mix, Demography, Housing, Recensement, Quartier latin, Mixité sociale, Démographie, Logements |
| Date: | 2024–06–12 |
| URL: | https://d.repec.org/n?u=RePEc:cir:circah:2024pr-02&r= |
| By: | Fabien Leurent (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | A line ride-sharing service is supplied along a given roadway path by an operator that matches Users (riders) and Agents (drivers), under specific protocol that involves price schedule on both the U and A sides, waiting policy on either side and transaction times. The resulting time and money items add up over trip legs, yielding trip time and money cost depending on the service role, A or U, compared to Non-commitment, called role N for Neutral. The article brings about a traffic model of people involvement in the service. Service conditions of frequency φ and average number of users per car run ω are key factors of the time and money features of the alternative roles A, U and N. Individual choice of role is modeled as a rational behavior of minimizing the generalized cost depending on the individual Value-of-Time (VoT). Aggregation over trip-makers according to the statistical distribution of VoT yields the respective role flows (y_A, y_U, y_N), which in turn determine the macroscopic factors (φ, ω). Traffic equilibrium is defined as a balance condition between the "supplied flows" and the "demanded flows" of the three roles. A computational scheme is provided, with graphical interpretation in the (y_A, y_U) plane as well as in the (φ, ω) plane. A numerical experiment is conducted, showing that two alternative configurations can arise at equilibrium: either {A, U, N} with less wealthy Agents driving wealthier Users, or {U, A, N} where less wealthy Users are driven by wealthier Agents: in both cases the Neutral role attracts the upper range of the VoT distribution. |
| Keywords: | bi-sided platform, traffic equilibrium, multi-sided equilibrium, equilibration algorithm, Ride-sharing service |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ciredw:hal-04579457&r= |
| By: | Beber, Bernd; Ebert, Cara; Sievert, Maximiliane |
| 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. |
| Abstract: | Wir untersuchen, inwieweit asylpolitische Maßnahmen, die darauf abzielen, Menschen von irregulärer Migration abzuhalten, dies auch tatsächlich tun. Wir untersuchen insbesondere die Auswirkungen der jüngsten und öffentlichkeitswirksamen Anpassungen der deutschen Asylpolitik, zu denen beschleunigte Asylentscheidungsverfahren, die Aussicht auf Asylverfahren außerhalb Europas, die Einführung einer Bezahlkarte als Ersatz für Barleistungen und eine verlängerte Wartezeit für Analogleistungen gehören. Um die Auswirkungen dieser politischen Maßnahmen auf die Absicht der irregulären Migration zu schätzen, führen wir ein Conjoint-Experiment mit 989 Männern im Alter von 18 bis 40 Jahren in vier senegalesischen Städten durch, also mit einer Bevölkerungsgruppe, in der irreguläre Migration nach Europa präsent ist. Wir stellen fest, dass die Verlagerung des Asylverfahrens die Absicht zur irregulären Migration bei fast allen Subjekttypen signifikant und erheblich senkt. Die Verlängerung der Wartezeit für Analogleistungen hat nur einen kleinen, marginal signifikanten Effekt auf Migrationsabsichten, und keinen Effekt bei den ärmsten Personen und denjenigen, die am meisten motiviert sind, international zu migrieren. Weder die Verkürzung der Bearbeitungszeiten für Asylanträge noch die Ersetzung von Geldleistungen durch eine Bezahlkarte haben einen signifikanten Einfluss auf die relevante Migrationsabsicht. Wir weisen darauf hin, dass das Vorhandensein oder Nichtvorhandensein eines Effekts politische und normative Fragen in Bezug auf diese Maßnahmen nicht löst. |
| Keywords: | Asylum policy, irregular migration, conjoint experiment |
| JEL: | F22 J61 K37 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:295228&r= |
| By: | Sandor Juhasz; Zoltan Elekes; Virag Ilyes; Frank Neffke |
| Abstract: | Strong local clusters help firms compete on global markets. One explanation for this is that firms benefit from locating close to their suppliers and customers. However, the emergence of global supply chains shows that physical proximity is not necessarily a prerequisite to successfully manage customer-supplier relations anymore. This raises the question when firms need to colocate in value chains and when they can coordinate over longer distances. We hypothesize that one important aspect is the extent to which supply chain partners exchange not just goods but also know-how. To test this, we build on an expanding literature that studies the drivers of industrial coagglomeration to analyze when supply chain connections lead firms to colocation. We exploit detailed micro-data for the Hungarian economy between 2015 and 2017, linking firm registries, employer-employee matched data and firm-to-firm transaction data from value-added tax records. This allows us to observe colocation, labor flows and value chain connec- tions at the level of firms, as well as construct aggregated coagglomeration patterns, skill relatedness and input-output connections between pairs of industries. We show that supply chains are more likely to support coagglomeration when the industries in- volved are also skill related. That is, input-output and labor market channels reinforce each other, but supplier connections only matter for colocation when industries have similar labor requirements, suggesting that they employ similar types of know-how. We corroborate this finding by analyzing the interactions between firms, showing that supplier relations are more geographically constrained between companies that operate in skill related industries. |
| Keywords: | coagglomeration, labor flow network, skill relatedness, supply chain |
| JEL: | R12 J24 O14 D57 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2416&r= |
| By: | Yeon-Koo Che; Jinwoo Kim; Konrad Mierendorff |
| Abstract: | We study law enforcement guided by data-informed predictions of "hot spots" for likely criminal offenses. Such "predictive" enforcement could lead to data being selectively and disproportionately collected from neighborhoods targeted for enforcement by the prediction. Predictive enforcement that fails to account for this endogenous "datafication" may lead to the over-policing of traditionally high-crime neighborhoods and performs poorly, in particular, in some cases as poorly as if no data were used. Endogenizing the incentives for criminal offenses identifies additional deterrence benefits from the informationally efficient use of data. |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2405.04764&r= |
| By: | Antman, Francisca M. (University of Colorado, Boulder); Doran, Kirk (University of Notre Dame); Qian, Xuechao (Stanford University); Weinberg, Bruce A. (Ohio State University) |
| Abstract: | Using dissertation research topics found in the EconLit database and large-scale algorithmic methods that identify author demographics based on names, we explore the link between race and ethnicity and fields of economic research. We find that underrepresented racial and ethnic minority (URM) researchers are more likely to write dissertations in some unexpected sub-fields of economics, but limited evidence that they are more likely to write dissertations on racial topics once we include basic controls. These descriptive results may be due to limitations in the data, intrinsic motivations, or external constraints. |
| Keywords: | economic research, race and ethnicity, dissertation |
| JEL: | I23 J15 O30 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16979&r= |
| By: | Tomohiro HIRANO; Joseph E. Stiglitz |
| Abstract: | This paper analyses the impact of credit expansions arising from increases in collateral values or lower interest rate policies on long-run productivity and economic growth in a two-sector endogenous growth economy with credit frictions, with the driver of growth lying in one sector (manufacturing) but not in the other (real estate). We show that it is not so much aggregate credit expansion that matters for long-run productivity and economic growth but sectoral credit expansions. Credit expansions associated mainly with relaxation of real estate financing (capital investment financing) will be productivity-and growth-retarding (enhancing). Without financial regulations, low interest rates and more expansionary monetary policy may so encourage land speculation using leverage that productive capital investment and economic growth are decreased. Unlike in standard macroeconomic models, in ours, the equilibrium price of land will be finite even if the safe rate of interest is less than the rate of output growth. |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:cnn:wpaper:24-010e&r= |
| By: | Chiara Maria Zisler; Eric Bettinger; Uschi Backes-Gellner |
| Abstract: | Given the increase in global refugee and migration flows and the severe labor shortages in host countries, actively helping refugees enter the labor market constitutes a critical solution for both challenges. This paper analyzes the effect of targeted training programs for refugees on their labor market and social integration. Using a quasi-experimental approach, we investigate a Swiss IT and coding bootcamp that combines occupational skills training with workplace-based cultural skills training (i.e., implicit skills that can be learned only through work experience). By matching individual survey data with detailed records from the program application process, we compare the labor market and social integration outcomes of program applicants around the admission threshold. Results for this quasi-random sample of applicants show that program participation significantly increases labor market outcomes compared to non-participation within the first three years after program graduation. |
| Keywords: | Refugees, Labor market integration, Skills training, Natural experiment |
| JEL: | J61 M53 |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:iso:educat:0218&r= |
| By: | Nakazawa, Katsuyoshi |
| Abstract: | This study adopts a quasi-experimental approach to empirically identify the discretion exercised by municipalities in conducting eligibility assessments for Japan’s Long-Term Care Insurance (LTCI) program. It leverages the municipal merger phenomenon in the first half of the 2000s as a significant factor in creating an extrapolation shock. Prior to the merger, municipalities had a clear incentive to enhance their eligibility ratios as they could transfer eligible recipients to the merged municipalities. This study’s difference-in-difference regression analysis provides concrete evidence that pre-merger municipalities did, indeed, escalate their eligibility ratios immediately before the merger, underscoring discretionary conduct in eligibility assessments. Moreover, it suggests that pre-merger municipalities tended to upgrade the eligibility status of insured residents from “Support needs” to “Long-term care needs I.” These findings not only highlight the deviation of the Japanese LTCI system from its institutional design but also point towards potential mismanagement within the system. Understanding these dynamics is crucial for improving the efficacy and fairness of LTCI programs. |
| Keywords: | Long-term care insurance; Eligibility assessment; Municipal merger; Free-rider behavior; Difference-in-difference |
| JEL: | H51 H73 H75 I13 I18 R51 |
| Date: | 2024–04–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120911&r= |
| By: | Peter van der Windt (New York University - Abu Dhabi); Leonid Peisakhin (New York University - Abu Dhabi); Nik Stoop (University of Antwerp, Research Foundation Flanders) |
| Abstract: | Tens of millions of individuals are displaced due to violence, and most are hosted by other households in their home countries. We ask what motivates people to host the forcibly displaced. We are interested in whether empathy increases the willingness to host but also consider alternative explanations. To explore the correlates of hosting we collected survey data from 1, 504 households in the Democratic Republic of the Congo, fielded in-depth interviews, and implemented an experiment. We employ a novel strategy to measure hosting behavior, where household characteristics are measured prior to the arrival of displaced persons. We find that households with higher empathy are more likely to host in the ten-month period following the survey. There is no evidence that ethnicity, religiosity or wealth affect hosting behavior. Results from the experiment suggest that it is difficult to increase hosting propensity in the longer term (4+ months) through simple interventions. |
| Keywords: | Civil War, Displacement, Hosting, Experiment, Democratic Republic of Congo |
| JEL: | D74 O15 C93 C83 |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:hic:wpaper:412&r= |
| By: | Justin R. Pierce; Peter K. Schott; Cristina Tello-Trillo |
| Abstract: | We examine US workers' employment and earnings before and after trade liberalization with China. Among workers initially employed in manufacturing, we find substantial and persistent declines in both outcomes, with indirect exposure via input-output linkages exacerbating the negative effects of direct exposure. For workers initially employed outside manufacturing, however, we find that the positive impact of greater upstream exposure via inputs more than offsets the adverse impacts of own- and downstream exposure, inducing relative earnings gains. We also find that spatial exposure is more influential than industry exposure. |
| JEL: | F0 F13 J30 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32438&r= |
| By: | Bas Scheer (CPB Netherlands Bureau for Economic Policy Analysis); Brinn Hekkelman (CPB Netherlands Bureau for Economic Policy Analysis); Mark Kattenberg (CPB Netherlands Bureau for Economic Policy Analysis) |
| Abstract: | It is possible to promote diversity among student populations without the use of lottery selection. This is shown by research from the Netherlands Bureau for Economic Policy Analysis (CPB) on fair algorithms that was published on the 29th of May. Lotteries are often proposed as a means to promote equality of opportunity, for example in the case of admission to medical school. However, that is not the only way in which inequality of opportunity can be combated, and certainly not the most effective. An alternative method is to reserve places for specific groups, such as men or people with a migration background, and then select the most suitable candidates from each group. This approach ensures that effective selection can take place, while at the same time promoting diversity. For more information, see the Discussion Paper (English), or the ESB article (Dutch) based on the research. |
| JEL: | J15 D63 I24 J24 |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:cpb:discus:455&r= |