|
on Urban and Real Estate Economics |
| By: | Osswald do Amaral, Francisco; Toth, Mark; Zdrzalek, Jonas |
| Abstract: | This paper examines the relation between location, liquidity, and prices in urban housing markets. We build geospatial datasets for German and U.S. cities and show that housing liquidity and prices jointly decrease with distance to the city center. Using transaction-level data, we estimate a spatial housing search model and show that the cost of travel to the city center determines the joint spatial distribution of housing liquidity and prices. In a counterfactual analysis, we find that frictional illiquidity lowers prices in the outskirts by 7% relative to the city center and explains 19% of the spatial price gradient. |
| Keywords: | housing liquidity, housing prices, cities, spatial equilibrium, housing demand |
| JEL: | G12 G51 R21 R30 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkwp:315471 |
| By: | LIU Yang |
| Abstract: | In recent years, the Japanese government has made significant efforts to promote the integration of migrants in response to serious labor shortages and rising immigrant numbers. Housing is a key indicator of migration integration, yet the gap in homeownership between natives and immigrants in Japan remains unclear. While studies in the U.S. and Europe have found lower homeownership rates among immigrants, this study reveals that Chinese migrant households—comprising over 60% of permanent immigrant households in Japan—are more likely to own homes than native households, after controlling for individual and regional factors. In contrast, immigrants from other countries have lower homeownership probabilities than natives. These findings are explained using the housing tenure choice theory. Additionally, this study explores the factors influencing housing tenure decisions among both natives and immigrants in Japan and investigates the reasons behind the observed differences. This research provides novel empirical evidence to inform migration integration policies. |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:25022 |
| By: | Kitsos, Tasos; Nathan, Max; Gutierrez-Posada, Diana |
| Abstract: | We examine links between creative activity and gentrification at the neighborhood level. These dynamics are both complex and important to understand. Artists may help upgrade inexpensive neighborhoods before being displaced, including by higher-paid creative services workers. Alternatively, creative activity may follow patterns of high-income customers and locales. Many city leaders hope creative industries can drive urban growth while worrying about these highly localized impacts. However, outside case studies, these links are poorly understood. Drawing on urban theory and recent creative industries debates, we frame neighborhood upgrading in larger processes of competition for urban space, then identify distinct creativity–gentrification channels for firms, workers, and arts/service activities. We explore impacts on neighborhoods in England and Wales, via rich microdata on firms and workers between 2001 and 2021. We test aggregate links between creative activity and subsequent gentrification, then explore channels across actors, activity types, level of clustering, the urban hierarchy, and property types. Largely, we find very small associations between creative clustering and gentrification in the following decades. Associations are larger for creative workers than firms, though less stable. Links are stronger in London and larger cities; in neighborhoods with denser clusters of creative firms, changes in gentrification scores are three to seven times larger. Overall, arts workers and businesses are most implicated in gentrification, though the former lead and the latter follow neighborhood change. The findings have important implications for urban economic development and urban planning policy. |
| Keywords: | cities; creative industries; gentrification; housing markets |
| JEL: | L80 O18 R30 |
| Date: | 2025–03–31 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:127757 |
| By: | Ashley C. Craig; David C. Martin; Ashley Craig |
| Abstract: | Does relaxing strict school discipline improve student achievement, or lead to classroom disorder? We study a 2012 reform in New York City public middle schools that eliminated suspensions for non-violent, disorderly behavior. Math scores of students in more-affected schools rose by 0.05 standard deviations over three years relative to other schools. Reading scores rose by 0.03 standard deviations. Only a small portion of these aggregate benefits can be explained by the direct impact of eliminating suspensions on students who would have been suspended under the old policy. Instead, test score gains are associated with improvements in school culture, as measured by the quality of student-teacher relationships and perceptions of safety at school. We find no evidence of trade-offs between students, with students benefiting even if they were unlikely to be suspended themselves. |
| Keywords: | education, school suspension, school discipline, school safety, human capital |
| JEL: | H75 I20 J24 J45 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11756 |
| By: | Ohto Kanninen; Mika Kortelainen; Lassi Tervonen |
| Abstract: | This paper analyzes the effects of selective schools on students’ educational and labor market outcomes. We utilize regression discontinuity design based on the centralized admission system of upper secondary schools in Finland to obtain quasi-random variation for selective high school offers and attendance. By using nationwide administrative data, we first show that the selective schools do not improve high school exit exam scores, even though there is a large jump in peer quality for students attending selective schools. Despite lacking short-term effects, we find that selective schools increase university enrollment and graduation in the long run. Yet, we do not observe positive effects on income. Importantly, our results suggest that selective high schools or better peer groups do not improve students’ human capital or skills, but affect their preferences on educational choices after the secondary school. |
| JEL: | I24 I26 J24 |
| Date: | 2023–12–13 |
| URL: | https://d.repec.org/n?u=RePEc:pst:wpaper:345 |
| By: | Leonardo Boncinelli; Stefania Miricola; Eugenio Vicario |
| Abstract: | The concept of quality of life in urban settings is increasingly associated to the accessibility of amenities within a short walking distance for residents. However, this narrative still requires thorough empirical investigation to evaluate the practical implications, benefits, and challenges. In this work, we propose a novel methodology for evaluating urban accessibility to services, with an application to the city of Florence, Italy. Our approach involves identifying the accessibility of essential services from residential buildings within a 10-minute walking distance, employing a rigorous spatial analysis process and open-source geospatial data. As a second contribution, we extend the concept of 10-minute accessibility within a network theory framework and apply a clustering algorithm to identify urban communities based on shared access to essential services. Finally, we explore the dimension of functional redundancy. Our proposed metrics represent a step forward towards an accurate assessment of the adherence to the 10-minute city model and offer a valuable tool for place-based policies aimed at addressing spatial disparities in urban development. |
| Keywords: | well-being, chrono urbanism, community detection, urban resilience, local amenities |
| JEL: | R00 I30 H40 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:frz:wpaper:wp2025_08.rdf |
| By: | Halvarsson, Daniel (Ratio Institute); Korpi, Martin (Ratio Institute & EHFF, Stockholm School of Economics) |
| Abstract: | This study investigates the relationship between the urban wage premium and employer concentration using Swedish full population employer-employee data. Departing from an AKM modeling framework to distinguish worker from firm specific heterogeneity – a measure of rent-sharing – we then measure the urban wage premium using differences in the estimated firm fixed effects at the level of local industries, nested within local labor markets. Our results suggest that labor market employer concentration, as calculated using the Hirschman-Herfindahl index and a leave-one-out instrumental variable design, can account for a significant share of the estimated urban wage premium (UWP). Addressing city-level wage income inequality by applying our model to different segments of the local labor market income distribution, we find that while the UWP pertains to all income segments, it is largest for top-income levels (above the 90th percentile), and within this segment employer concentration also has the largest explanatory power. Thus, while being an important explanatory factor for all percentiles of the local income distribution, a relatively lower employer concentration within larger cities, and vice versa, higher concentration within smaller cities, primarily help explain the variance of top wages within these cities/labor markets. |
| Keywords: | wage distribution; rent sharing; monopsony; linked employer-employee data; local labor markets |
| JEL: | D22 J31 J42 R12 |
| Date: | 2025–04–23 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:ifauwp:2025_004 |
| By: | Bruno Albuquerque; Mr. Eugenio M Cerutti; Yosuke Kido; Mr. Richard Varghese |
| Abstract: | This paper shows that not all housing price cycles are alike. The nature of the housing expansion phase—especially whether a housing price boom characterized by rapid and persistent house price growth is present—plays a key role in shaping the severity of the subsequent contraction, and the net macroeconomic impact over the full cycle. Analyzing 180 housing expansions across 68 countries, we classify 49 percent as housing booms, characterized by rapid and persistent real house price increases. We find that economic downturns are significantly deeper and longer when housing contractions are preceded by a housing boom. The housing contraction is more severe the more intensive the preceding housing boom, and when accompanied by a credit boom. Overall, while housing booms spur stronger economic growth during the expansion phase, their sharp reversals lead to severe housing contractions, resulting in significant net negative effects on the real economy. |
| Keywords: | Housing booms; Housing busts; Credit booms; Macroprudential policies |
| Date: | 2025–02–28 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/050 |
| By: | Carneiro, Pedro; Cruz-Aguayo, Yyannu; Salvati, Francesca; Schady, Norbert |
| Abstract: | We study how poorly-behaved children affect learning and other outcomes of their peers using data from a unique experiment in Ecuador. Within each school, students were randomly assigned to classrooms in every grade for seven consecutive grades, between kindergarten and 6th grade. Children with persistent behavioral problems lower the math and language achievement of their classmates. The more poorly-behaved children there are in a class, the larger is the negative effect on the achievement of their classmates. These negative impacts are larger for younger children, and they persist for at least two years after exposure to a poorly-behaved peer. We find indirect evidence that children with persistent behavioral difficulties are passed around schools. |
| Keywords: | Peer effects;behavioral problems |
| JEL: | I24 I25 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:14022 |
| By: | Mika AKESAKA; Hitoshi SHIGEOKA |
| Abstract: | We demonstrate that heat disproportionately impairs human capital accumulation among low-performing students compared with their high-performing peers, using data from 22 million students who took nationwide examinations in Japan between 2007 and 2019. Given the strong correlation between academic performance and socioeconomic background, this suggests that heat exposure exacerbates pre-existing socioeconomic disparities among children. However, access to air conditioning in schools significantly mitigates these adverse effects across all achievement levels, with particularly pronounced benefits for lower-performing students. These findings suggest that public investment in school infrastructure can help reduce the unevenly distributed damage caused by heat to student learning. |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:25024 |
| By: | World Bank |
| Keywords: | Urban Development-Transport in Urban Areas |
| Date: | 2023–03 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:39498 |
| By: | Xu, Tao Louie |
| Abstract: | The multi-staged impact of the high-speed railway site-specific complementary policymaking on urban industrialisation remains subject to controversy. This preliminary report examines whether HSR new town planning constrains urban industrialisation with electricity consumption as a proxy for industrial activities. Employing the data of cities in the Yangtze Delta region and the DiD approach, the preliminary regressions estimate the effect of HSR new town policy on urban electricity usage. Our findings indicate a 15% to 20% significant decline in electricity consumption in cities with arranged HSR new town developments, particularly in smaller cities. The preliminary report challenges the assumption that HSR infrastructure inherently facilitates urban growth and calls for more attention to mitigating the negative externalities of transport infrastructure. |
| Keywords: | high-speed railway; new town planning; urban industrialisation; electricity consumption |
| JEL: | O2 R4 Y2 Y6 |
| Date: | 2025–03–01 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124235 |
| By: | Jakub Sokołowski; Karol Madoń; Jan Frankowski |
| Abstract: | The success of energy transition in addressing climate change depends on several factors, including the affordability of new technologies and the influence of peers within communities. However, concerns about affordability raise questions about how economic inequalities shape peer effects and whether they create barriers to equitable adoption. To this end, we explore how inequalities influence peer effects in the uptake of renewable heating sources. We leverage over 260, 000 observations from unique and unpublished microdata from the Polish Clean Air Priority Programme – one of the largest retrofit schemes in Europe. Our results show that peer effects accelerate technology uptake, with each additional installation increasing the likelihood of subsequent adoption by 0.014 pp. Peer influence is affected by economic inequality. In more economically homogeneous regions, affluent individuals considerably impact their peers. In areas with higher economic disparities, this influence diminishes. Our findings highlight the role of heating technology type and adopter wealth in shaping peer effect magnitude. Less wealthy adopters of biomass stoves emerge as a significant driver of peer influence, especially in regions with lower income inequality. We advise direct transfers to address technology adoption inequalities, leveraging social capital in low-inequality regions and adopting individualised strategies in high-inequality areas. |
| Keywords: | inequalities, peer effects, energy transition, residential sector, renewable energy |
| JEL: | Q52 Q55 O33 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:ibt:wpaper:wp032025 |
| By: | Adamopoulou, Effrosyni; Cao, Yaming; Kaya, Ezgi |
| Abstract: | We use the National Longitudinal Study of Adolescent to Adult Health to explore how high school peers' grit, a personality trait characterized by perseverance and passion, influences long-term outcomes approximately 15 years after high school. Exploiting random variation within schools across cohorts and the longitudinal nature of our data, we find t hat p eer g rit s ignificantly in creases fu ture earnings, especially for students from disadvantaged backgrounds. This implies that peer grit may help bridge socioeconomic gaps. We identify two key mechanisms: an increased likelihood of employment in jobs aligned with career goals and an increased resilience to difficulties. Additionally, peer grit leads to higher job satisfaction and asset accumulation. Thus, peer grit's effects extend beyond short-term educational performance and persist into adulthood. |
| Keywords: | grit, peer effects, long-term outcomes, Add Health |
| JEL: | I24 J13 J24 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:312578 |
| By: | Wu, Fengyu; Wang, Julia Shu-Huah; You, Jing; Teitler, Julien |
| Abstract: | This study examines the health impacts of a large-scale internal migration reform in China. Using nationally representative data from the China Labor-Force Dynamics Survey (2012-2018) and a unique dataset on city-level policy intensity and adoption timing, we employ a triple-difference approach to estimate the effects of migration policies on migrants' perceived physical and emotional health. We find that more lenient policies significantly improve migrants' health relative to natives. Integration policies yield health benefits approximately 3-4 times greater than selection policies. The most effective policy tools enhancing all health outcomes are integration policies granting migrants access to public services and education and selection policies targeting high-skilled migrants. Health improvements are driven by reduced overtime work, greater social capital, and stronger integration with natives. Analysis of treatment effect heterogeneity indicates that selection policies offer more consistent health benefits across various durations of residence, while integration policies primarily benefit long-term migrants. |
| Keywords: | Health, Migration Policies, Internal Migration, Hukou Reform, China |
| JEL: | I18 J61 O15 R23 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1598 |
| By: | Takako Nomi (Sinquefield Center for Applied Economic Research, Saint Louis University); Darrin DeChane (Sinquefield Center for Applied Economic Research, Saint Louis University); Michael Podgursky (Department of Economics, University of Missouri-Columbia) |
| Abstract: | Project Lead the Way (PLTW) is an applied STEM program, first introduced nearly three decades ago, designed to enhance the STEM content of Career Technical Education (CTE). Currently, more than 12, 000 US high schools offer the program. Using data from three cohorts of public high school freshmen in Missouri, we investigate the impact of PLTW program offer (ITT), participation impacts on participants (TOT), and the impact of program offer on non-participants on initial post-secondary outcomes. We use a difference-in-difference (DiD) analysis for ITT and a principal score weighted DiD to estimate TOT and the impacts of program offer on non-participants. The parallel trends assumption is also tested and not rejected. We find large positive ITT impacts on STEM major declaration among students with higher STEM preparation levels. ITT impacts on college enrollment are less conclusive. We find no evidence that the program offer affected outcomes for PLTW non-participants. Over a range of estimation strategies, we find large and robust positive TOT effects on STEM major declaration. |
| Keywords: | High School Applied STEM Program, Career Technical Education, Post-Secondary Outcomes, Quasi-Experimental Design |
| JEL: | I21 I20 I28 |
| Date: | 2025–04–12 |
| URL: | https://d.repec.org/n?u=RePEc:umc:wpaper:2505 |
| By: | Bae, Jinwon (Korea Institute for Industrial Economics and Trade); Lee, Dongkyu (Korea Institute for Industrial Economics and Trade) |
| Abstract: | In South Korea, a growing chorus of experts sees the digital divide between the Seoul Capital Area (SCA) -- which includes the capital Seoul, the nearby metropolis of Incheon, and the surrounding province of Gyeonggi -- and everywhere else in the country as having seriously adverse effects on both national economic and industrial competitiveness and regional development. Research has shown that this gap hinders regional economic growth and stifles innovation, which in turn perpetuates and deepens social inequality (Ko et al., 2022). Up to now, the Korean government’s digital transformation (DX) policies have focused on supporting the development of digital technology and leveraging digital technologies to increase efficiency and productivity. In this paper, we set out to demonstrate the importance of facilitating DX at the local level and analyzing the relationship between digital activity and regional innovative growth. Based on the results of our analysis, we identify the implications for policies capable of bridging the digital divide and promoting balanced development across South Korea. |
| Keywords: | digitalization; digital transformation; regional economics; regional development; regional disparities; regional inequality; Seoul Capital Area; SCA; digital divide; population decline; demographic decline; population aging; innovative growth; regional innovation; South Korea; Korea Institute for Industrial Economics and Trade; KIET |
| JEL: | R10 R11 R12 R38 |
| Date: | 2025–02–28 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kieter:2025_001 |
| By: | Rumert, Luis |
| Abstract: | The COVID-19 pandemic forced university students to transition to online learning due to mobility restrictions and campus closures. When in-person teaching resumed, many students had to commute or move closer to campus and adapt to a new learning and social environment. This paper examines how this mid-study return to campus impacted academic performance and whether all students had to bear the same costs. Using administrative student data from a public university in North Rhine-Westphalia, Germany and a difference-in-differences approach, the results show an overall significant but small decrease in passed credit points and the number of registered exams. The effects increase over time and reach a 14 percent decrease in passed credit points and a 13 percent decrease in registered exams after five semesters. Additionally, the overall dropout probability decreases by 33 percent. The estimated effects are heterogenous with respect to cohorts, sex, and migration background. Moreover, the cost of student mobility increases by distance. |
| Keywords: | Student mobility, reopening of universities, academic performance, difference-in-differences |
| JEL: | I23 R23 I38 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:rwirep:315489 |
| By: | Raissa Fabregas; Laia Navarro-Sola |
| Abstract: | Millions of children worldwide remain out of school due to the high costs of reaching them and a shortage of qualified teachers. Can ICT-based instruction help close this gap and deliver the long-term benefits of traditional schooling? This paper provides causal evidence on the long-term educational and labor market effects of using ICT to expand last-mile access to post-primary education. We focus on Mexico’s TV-schools –physical lower secondary schools that replace most on-site teachers with televised instruction– one of the largest formal mass media-based education models globally, serving over 1.4 million children every year. Exploiting nationwide geographic variation and cohort exposure to TV-school openings during 1980-2000, we find that high exposure to TV-schools increased lower secondary graduation by 8 percentage points, educational attainment by 0.4 years, and it led to a long-term 8% increase in hourly earnings. We show evidence that most TV-school students would have otherwise remained out of school, and that the labor market returns from additional schooling are comparable to those from standard secondary schools. The program benefits both agrarian and more economically diversified areas, with those in the latter experiencing three times higher earning gains. Our findings show that low-tech, scalable educational models can be a cost-effective way to generate significant labor market returns in underserved regions, even before high-tech solutions become widespread. |
| JEL: | I20 J24 O15 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11779 |
| By: | Barbour, Elisa; Thoron, Noah |
| Abstract: | In California, local option sales taxes (LOSTs) are adopted by voters to increase the retail sales tax. Revenues are used to fund specific transportation projects. Meanwhile, metropolitan planning organizations (MPOs) are required by Senate Bill 375 to develop long-range plans to achieve reductions in vehicle miles traveled and emissions. But MPOs do not directly control the sponsorship or funding of most transportation projects in these plans. LOSTs are not bound by requirements of SB 375, even though MPOs must still account for impacts of LOST spending. In this context, an important question is whether and how LOST measures influence transportation planning priorities. To explore this question, researchers from the University of California, Davis, examined county LOST measures and regional transportation plans in California’s “big four” MPO regions—the San Francisco, Los Angeles, San Diego, and Sacramento metropolitan areas. This policy brief summarizes the findings from that research and provides policy implications. View the NCST Project Webpage |
| Keywords: | Social and Behavioral Sciences, expenditures, financing, local taxation, metropolitan planning organizations, sales tax |
| Date: | 2025–04–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt2h40g923 |
| By: | Sulin Sardoschau; Annalí Casanueva Artís |
| Abstract: | Freedom of speech is central to democracy, but protests that amplify extremist views expose a critical trade-off between civil liberties and public safety. This paper investigates how right-wing demonstrations affect the incidence of hate crimes, focusing on Germany’s largest far-right movement since World War II. Leveraging a difference-in-differences framework with instrumental variable and event-study approaches, we find that a 20% increase in local protest attendance nearly doubles hate crime occurrences. We explore three potential mechanisms—signaling, agitation, and coordination—by examining protest dynamics, spatial diffusion, media influence, counter-mobilization, and crime characteristics. Our analysis reveals that large protests primarily act as signals of broad xenophobic support, legitimizing extremist violence. This signaling effect propagates through right-wing social media networks and is intensified by local newspaper coverage and Twitter discussions. Consequently, large protests shift local equilibria, resulting in sustained higher levels of violence primarily perpetrated by repeat offenders. Notably, these protests trigger resistance predominantly online, rather than physical counter-protests. |
| Keywords: | protest, signal, hate crime, refugees, right-wing |
| JEL: | D74 J15 D83 Z10 D72 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11745 |
| By: | Anthony J. Venables |
| Abstract: | The idea that people want to go to where the jobs are is intuitive yet is absent from the standard quantitative spatial modelling approach in which location choices are guided by prices, without reference to quantities (the number of jobs in a place). The purpose of this paper is to fill this gap by making jobs, as well as places, the objects of household choice. This involves minor change to the modelling approach used in the literature and provides a simple description of labour market matching. Similar modification of the modelling of firms' location choices captures the idea that these are shaped by both wage costs and the availability of workers with appropriate skill. These modifications yield powerful agglomeration forces, as workers' location choices become positively influenced by the number of jobs in a place, and firms' decision are shaped by the number of workers with appropriate skills. Results are established analytically and in a regional model in which the equilibrium distributions of workers and sectors are demonstrated. |
| Keywords: | spatial models, agglomeration, discrete choice, matching |
| Date: | 2025–03–19 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2087 |
| By: | Patrinos, Harry Anthony; Jakubowski, Maciej; Gajderowicz, Tomasz |
| Abstract: | The COVID-19 pandemic caused widespread disruptions to education, with school closures affecting over one billion children. These closures, aimed at reducing virus transmission, resulted in significant learning losses, particularly in mathematics and science. Using United States data from TIMSS, this study analyzes the impact of school closure on learning outcomes. The losses amount to 0.36 SD for mathematics and 0.16 SD for science. The declines are similar across grades. The average decline in mathematics performance among U.S. students is substantially greater than the global average. n science, the decline observed among U.S. students does not significantly differ from the global trend. Girls experienced greater deviations from long-term trends than boys across both subjects and grade levels, reversing long term trends that once favored girls. Robustness checks confirm that pandemic-related school closures caused the decline in mathematics, while the downturn in science had already begun before COVID-19. |
| Keywords: | Pandemics, human capital, returns to education, labor markets, COVID-19 |
| JEL: | E24 J11 J17 J31 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1574 |
| By: | Giovanna d’Adda; Jessica Gagete Miranda; Giovanni Righetto |
| Abstract: | We study how the influence of social networks on individual labor market outcomes varies across occupations, specifically between manual and cognitive jobs. Using data from over fourteen million Brazilian workers and exploiting exogenous job termination due to mass layoffs, we confirm that social networks reduce unemployment duration and increase wages in the new job, but show that these effects are heterogeneous depending on workers’ occupations at the time of displacement. Manual workers benefit more from networks in terms of job reentry but less in terms of wages compared to workers performing cognitive tasks. We argue that these different patterns are due to the fact that networks reduce the likelihood that manual workers find new jobs in the same occupation, given that occupational change is associated with reductions in wages. |
| Keywords: | Social networks, Labor Market Outcomes, Mass-Layoff, Brazil |
| JEL: | J01 J24 J62 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:fbk:wpaper:2025-02 |
| By: | Srhoj, Stjepan; Mikulić, Josip |
| Abstract: | Tourism influences local economies through direct, indirect, and induced effects. Using novel firm-to-firm transaction data, we shed light on tourism's indirect effects. We find that tourism firms primarily source inputs locally or from the capital, with limited purchases from distant, poorer regions. While direct imports by tourism firms are relatively small, indirect imports-those embedded in supply chains-are substantial, comprising 54.2% of total supplier costs. Our findings suggest that overlooking indirect imports may lead to an overestimation of tourism's true economic contribution. |
| Keywords: | firm-to-firm transaction data, economic leakages, supplier spending, indirect imports, local economic impact |
| JEL: | L83 R12 F14 D22 O18 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1577 |
| By: | Knipe, Taylor; Ortega, Josué |
| Abstract: | The Deferred Acceptance algorithm (DA) frequently produces Pareto inefficient allocations in school choice problems. While a number of efficient mechanisms that Pareto-dominate DA are available, a normative question remains unexplored: which students should benefit from efficiency enhancements? We address it by introducing the concept of maximally improvable students, who benefit in every improvement over DA that includes as many students as possible in set-inclusion terms. We prove that common mechanisms such as Efficiency-Adjusted DA (EADA) and Top Trading Cycles applied to DA (DA+TTC) can fall significantly short of this benchmark. These mechanisms may only improve two maximally-improvable students when up to n − 1 could benefit. Addressing this limitation, we develop the Maximum Improvement over DA mechanism (MIDA), which generates an efficient allocation that maximises the number of students improved over DA. We show that MIDA can generate fewer blocking pairs than EADA and DA+TTC, demonstrating that its distributional improvements need not come at the cost of high justified envy. |
| Keywords: | school choice, improvable students |
| JEL: | C78 D47 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:qmsrps:202503 |
| By: | Ajzenman, Nicolás; Elacqua, Gregory; Kutscher, Macarena; Méndez, Carolina; Suarez Enciso, Sonia |
| Abstract: | This paper examines how the act of giving advice to others can serve as a tool for self-persuasion in high-stakes decisions. We tested this hypothesis in Perus nationwide teacher selection process, involving over 74, 000 candidates. By prompting teachers to advise peers on selecting schools for maximum educational impact, we observe a significant shift in their own choices: an increased probability of choosing and being assigned to hard-to-staff schools, institutions serving disadvantaged areas that are typically understaffed. In line with recent literature on behavioral sciences, our findings demonstrate that advising others can influence ones own consequential decisions. This insight offers a cost-effective approach to mitigating teacher sorting and reducing educational inequality. It also corroborates the validity of the giving advice effect in a high-stakes, real-world context using a large sample. |
| JEL: | D91 I23 I25 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:14017 |
| By: | Suelene Mascarini; Pierre-Alexandre Balland; Renato Garcia |
| Abstract: | This study examined the effects of intra-regional and transnational linkages on technological diversification in Brazilian regions from 1997 to 2020, highlighting the role of stakeholder collaboration in fostering knowledge and skill development. Our findings reveal that regional linkages positively influence diversification, whereas transnational connections primarily help to preserve existing technological specialisations. These results offer valuable insights for policymakers seeking to promote innovation and diversification in emerging economies, underscoring the importance of both regional and international collaborations for technological growth. This study investigates how intra-regional and transnational linkages affect technological diversification in Brazilian regions between 1997 and 2020. We focus on both the emergence of new technological specialisations and the persistence of existing ones. Using patent data from the Brazilian Patent Office and panel regression models with fixed effects, we examine how the structure of inter-regional and international connections relates to the dynamics of diversification. Our findings suggest that domestic regional linkages promote the entry of new specialisations, while transnational linkages are more closely associated with the retention of existing ones. These results offer insights for policymakers seeking to foster innovation in emerging economies by strengthening both regional networks and global connections. |
| Keywords: | transnational linkages; regional linkages; complementary capabilities; regional diversification. |
| JEL: | O19 O31 R11 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2509 |
| By: | TANAKA Kenta; MANAGI Shunsuke |
| Abstract: | This study analyzes whether produced capital investment in post-disaster reconstruction after the Great East Japan Earthquake has improved residents’ well-being, using produced capital data from municipalities between 2010 and 2015 combined with large-scale online survey data collected in 2015. The results show that among the areas more severely damaged by the earthquake, increased investment in produced capital has not improved residents’ well-being. However, increases in social capital stock, such as public housing investments, may have improved residents’ well-being after the disaster. The results contribute to a better understanding of how local and central governments should implement public and private reconstruction investment from the perspective of well-being in the aftermath of future earthquakes. |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:25018 |
| By: | Philip Verwimp |
| Abstract: | This paper investigates the effect of civil war exposure in (early) childhood on school test scores as a teenager. It uses tests scores from the Concours National in Burundi, a nationwide competitive exam taken at the end of primary school, consisting of four academic disciplines for the period 2010-2012. These data are combined with exposure to civil war at different stages in childhood. The paper finds that an average duration of war exposure from in utero to age 12 (4.3 years) increases the age at which the test is taken with 1.72 years and causes a drop in the test score of 5.5 points on average (which is about 5% of the average grade), of which 1.75 points can be attributed to the scarring effect of war exposure and 3.75 points to the cognitive effect. The effects vary according to the timing of the shocks in childhood and along the distribution of test scores. Boys suffer more from the scarring effect, obtaining significantly lower test scores than girls from taking the exam at a later age, whereas girls suffer more from the cognitive effect of war shocks, conditional on age-at-test. Girl’s performance is more affected than boys for mathematics but not more for languages. The paper finds evidence for a sex-specific selection mechanism in utero. |
| Keywords: | civil war, childhood, education, teenager |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:eca:wpaper:2013/390055 |
| By: | Darrin DeChane (Sinquefield Center for Applied Economic Research, Saint Louis University); Takako Nomi (Sinquefield Center for Applied Economic Research, Saint Louis University); Michael Podgursky (Department of Economics, University of Missouri-Columbia) |
| Abstract: | Missouri, like most other states, uses assessments in its accountability system that purport to indicate whether a student is on a pathway to “college and career readiness.†The state longitudinal data system now has the capacity to directly test that claim. This study makes use of 8th-grade MAP scores in Math, Science, and Communication Arts for roughly 260, 000 first-time Missouri freshman who began high school between Fall, 2009 and Fall, 2012. These students were tracked through high school and for five years following on-time high school graduation. Here are some key findings: There is a very strong positive association between MAP performance scores in 8th grade Math, Science, and Communication Arts and post-secondary college attendance and degree completion. This is true for the overall population and for White, Black, and Hispanic students disaggregated by gender. Proficiency matters on a single exam. Within the first five years following on-time high school graduation, a student who scored Proficient on any of the 8th grade MAP assessments is twice as likely to earn a post-secondary degree and three times as likely to earn a four-year degree as a student who scored Basic. Proficiency matters even more on all three exams. If all Missouri students who scored below Proficient on the 8th-grade MAP assessments raised their scores to Proficient, the number of students earning post-secondary degrees would increase by roughly 50 percent. The number of Black and Hispanic students earning post-secondary degrees would increase by roughly 152 and 75 percent, respectively. In sum, 8th-grade MAP proficiency scores are highly informative about whether students are on a pathway to “college and career readiness.†|
| Keywords: | Education Policy, Economics of Education |
| JEL: | I21 I20 I28 |
| Date: | 2025–04–13 |
| URL: | https://d.repec.org/n?u=RePEc:umc:wpaper:2507 |
| By: | Foutelet, Adrien; Jang, Bo-Yeon; Medellín-Esguerra, María |
| Abstract: | Bagues and Roth (2023) examine the effect of interregional contact induced by compulsory military service on sympathy towards people from other regions and the consolidation of a national identity in the context of Spain. They find that conscripts assigned away from their home region have 0.8 sd greater contact with people from other parts of the country and have 0.06 sd more positive emotions towards them. For conscripts hailing from regions with peripheral nationalistic movements, these effects are larger by 0.210- 0.318 sd and 0.03-0.04 sd respectively. In addition, soldiers from regions with separatist movements tend to have 0.262 sd greater identification with Spain after service, and all effects are statistically significant at the 5% and 10% levels. In this comment, we successfully verify that the paper is computationally reproducible and correct one minor coding error that does not affect the studies' conclusions. We further confirm the robustness of the main results to dropping all controls, excluding pilot survey observations, and controlling for age at military enrollment, with possible heterogeneity in later military years. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:i4rdps:219 |
| By: | Jeremias Nieminen; Sanni Kiviholma; Ohto Kanninen; Hannu Karhunen |
| Abstract: | We study the effects of lifting labor market testing (LMT) requirements for non-EU workers in Finland utilizing regional variation in occupations exempted from labor market testing. We use individual and firm-level administrative data from 2011–2020 and hand-collected data on local changes in labor market testing rules since 2012. We estimate the effects using a staggered difference-in-differences design. We find that lifting the LMT requirement leads to an increase in the inflow of non-EU workers to treated occupation-regions. A further breakdown of this inflow shows that the effect is mainly driven by non-EU individuals already in Finland. In five years, treatment effect on the annual earnings of natives is -€647 (around 2%) at the occupation-region level and -€1, 121 (around 4%) at the individual level. The observed earnings effects, especially at the occupation-region level, are driven by low-wage and service-oriented occupations. Despite the negative effects on earnings, we observe positive employment effects for some incumbent worker groups at the individual level. Conversely, at the occupation-region level, there is an increase in the number of job seekers in the exempted occupations. At the firm level, we observe an increase in the number of non-EU employees and suggestive evidence of firms expanding in general. |
| Keywords: | labor market testing, immigration, labor supply, wages, shortage list |
| JEL: | J20 J38 J61 J68 |
| Date: | 2024–06–19 |
| URL: | https://d.repec.org/n?u=RePEc:pst:wpaper:344 |
| By: | Ha Trong Nguyen; Zajac, Tomasz; Tomaszewski, Wojtek; Mitrou, Francis |
| Abstract: | This study employs 2011 Census data linked to population-based administrative datasets to explore disparities in educational attainment and earnings trajectories among Australian-born children of diverse parental migration backgrounds from mid-adolescence to early adulthood. Non-English Speaking Background (NESB) second-generation immigrants exhibit superior academic outcomes, primarily driven by children of parents from select Asian countries. These individuals are more likely to complete higher education, particularly bachelor's and master's degrees, and specialise in fields such as management and commerce, health, natural and physical sciences, and engineering. Children of NESB immigrant parents initially earn less than their peers with Australian-born parents at ages 21-22. However, this gap closes by ages 23-24 and reverses by ages 26-27, with children of NESB fathers out-earning their counterparts by ages 28-29. Conversely, children of English-Speaking Background (ESB) immigrant parents, who exhibit weaker academic performance, also experience lower earnings compared to peers with Australian-born parents. This disparity emerges by ages 22-23 and widens throughout the study period, peaking at ages 28-29. The findings underscore the academic and economic advantages of NESB second-generation immigrants, contrasting with the challenges faced by ESB migrant counterparts, and highlight the importance of considering parental migration backgrounds in understanding post-school outcomes of Australian-born children of immigrant parents. |
| Keywords: | Migration, Intergenerational Correlation, Education, Income, Census, Administrative data, Australia |
| JEL: | I24 J24 J62 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1576 |
| By: | Hamza, Sakar Hasan; Li, Qingna; Khezri, Mohsen |
| Abstract: | Despite the significance of economic freedom in tourism dynamics, especially from a spatial standpoint, its nuanced influence remains unexplored mainly in current research. To fill this gap, our study introduces a novel spatial panel data analysis to investigate how various components of the economic freedom index affect tourist arrivals in 41 European countries from 2005 to 2018. By employing this innovative approach, we uncover the complex interdependencies between economic freedom and tourism and highlight the significance of regional economic characteristics on the tourism sector’s health. Our findings reveal that a one percent increase in GDP per capita of neighboring nations corresponds to a 0.4 percent increase in tourist arrivals to the home country. In comparison, a similar rise in neighboring countries’ prices leads to a 0.4 percent decrease in inbound tourists. Most economic freedom variables, including the Business Freedom Index, Investment Freedom Index, Labor Freedom Index, Trade Freedom Index, and Government Integrity Index, demonstrate statistically significant positive effects. However, a one percent increase in the Monetary Freedom Index of neighboring countries results in a 0.747 percent reduction in homebound tourists. Notably, enhancements in the country’s and neighboring countries’ Investment Freedom Index and Government Integrity Index contribute to increased arrivals. This research contributes to the broader understanding of economic policies’ impact on tourism, offering valuable insights for policymakers aiming to leverage economic freedom for tourism development. The application of a spatial panel data approach marks a significant methodological advancement in tourism studies, opening new avenues for analyzing economic influences on tourism at a regional level. |
| JEL: | J1 |
| Date: | 2025–04–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:127786 |
| By: | Pengl, Yannick I.; Muller-Crepon, Carl; Valli, Roberto; Cederman, Lars-Erik; Girardin, Luc |
| Abstract: | This paper uses the gradual expansion of the European railway network to investigate how this key technological driver of modernization affected ethnic separatism between 1816 and 1945. Combining new historical data on ethnic settlement areas, conflict, and railway construction, we test how railroads affected separatist conflict and successful secession as well as independence claims among peripheral ethnic groups. Difference-in-differences, event study, and instrumental variable models show that, on average, railway-based modernization increased separatist mobilization and secession. These effects concentrate in countries with small core groups, weak state capacity, and low levels of economic development as well as in large ethnic minority regions. Exploring causal mechanisms, we show how railway networks can facilitate mobilization by increasing the internal connectivity of ethnic regions and hamper it by boosting state reach. Overall, our findings call for a more nuanced understanding of the effects of European modernization on nation building. |
| JEL: | N0 |
| Date: | 2025–03–21 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:127734 |
| By: | Cai, Zhengyu |
| Abstract: | This paper investigates how human capital concentration in cities is associated with working hours across different worker groups, an important but understudied dimension of urban agglomeration effects. Using microdata from the American Community Survey covering 240 metropolitan statistical areas in 2018, the study finds significant heterogeneous effects: a one percentage point increase in college graduate share is associated with a 0.043% increase in working hours for college graduates but a 0.023% decrease for non-college workers. The effects vary between employment types: college-educated paid workers work 0.054% more hours while the self-employed work 0.071% fewer hours in cities with higher human capital stocks. Through a two-step two-stage least squares approach, the study reveals that these effects operate primarily through income changes rather than non-income channels. Alternative measures of human capital stock and various robustness checks confirm the main findings. These heterogeneous labor supply responses suggest that the welfare impact of place-based development initiatives depends not only on productivity gains but also on workers' capacity to capture these benefits through skill development, highlighting the importance of complementing talent attraction policies with workforce development programs. |
| Keywords: | hours worked, human capital externalities, income, STEM, Heckman procedure |
| JEL: | J22 J24 R23 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1593 |
| By: | Parag Mahajan (University of Delaware) |
| Abstract: | I study how access to foreign-born workers impacts firms and local economics in times of acute crisis. The 2020 H-2B visa lottery randomly gave some U.S. firms the chance to hire low-wage, migrant workers during the height of the COVID-19 pandemic. Using administrative data across three government agencies, I find that access to H-2B workers led to decreased business closures, increased revenues, increased payroll, and increased employment in 2020. I also find suggestive evidence that these effects spilled over to non-participant firms within the same county. |
| Keywords: | migrant workers, H-2B visa, COVID-19 pandemic, firm dynamics |
| JEL: | J23 F22 J61 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:upj:weupjo:25-414 |
| By: | Gabriel Eidelman; Jen Nelles (University of Toronto) |
| Abstract: | During the COVID-19 pandemic, mayors and chairs from 11 of the 30 municipal governments in the Greater Toronto and Hamilton Area (GTHA) met a total of 76 times to share information, coordinate emergency measures, and collectively advocate to provincial and federal governments, marking the most sustained and productive period of bottom-up, voluntary regional collaboration in the region’s history. This report documents the dawn and demise of the GTHA Mayors and Chairs group, as it was known, describing its functions and procedures, summarizing its achievements, tracking its genesis, evolution, and eventual dissolution, and offering lessons about what it takes to build effective metropolitan governance. Findings are based on interviews with nine of the participating mayors and regional chairs and five municipal chief administrative officers, numerous background interviews with the political staff and civil servants involved, and a review of primary meeting materials. During its three-year tenure, the GTHA Mayors and Chairs group – which we also refer to as the GTHA11 – secured a range of legislative, regulatory, and financial returns that benefited the region during the COVID-19 crisis and evolved into a constructive forum for regional dialogue on a range of regional issues exacerbated by the pandemic, such as housing, policing and community safety, and refugee settlement and integration. Today, though, the group no longer meets, undone by a cascade of events, including the surprise resignation of the group’s chair, Toronto Mayor John Tory, in February 2023. All told, the story of the GTHA Mayors and Chairs is a tale of missed opportunity. The group demonstrated that informal, bottom-up regionalism is both possible and worthwhile. Local leaders across the GTHA came together and collaborated in ways rarely seen before. Had it endured, the group may have evolved from a forum for discussion and coordination to a true collaborative regional decision-making body of some kind. Today, however, with the pandemic seemingly behind us, the prospect of effective regional governance in the GTHA once again looks bleak. |
| Keywords: | metropolitan governance, regional governance, regionalism, mayors, intergovernmental relations, COVID-19, Greater Toronto, GTHA Mayors and Chairs |
| JEL: | H11 H70 I18 R50 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:mfg:wpaper:70 |
| By: | Ward, Albert; Tilley, James; Hobolt, Sara |
| Abstract: | It is usually assumed that spending by the European Union translates into greater support for the EU among those who benefit from that spending. Empirical work has, however, produced mixed findings as to the association between the EU’s regional development spending and EU support. To better test this relationship, we link a unique dataset on EU spending in Wales at a hyper-local level to survey panel data that measures EU support at, and in the years following, the Brexit referendum. Using this novel data, we find no evidence of an association between spending and various measures of EU support. We demonstrate that this is, at least partially, due to the fact that very few people know of spending in their local area, and that this knowledge is itself only weakly related to amounts of spending. We further show that views of spending are largely driven by perceptual biases rather than actual spending. Our findings contribute to our understanding of the drivers of EU support, but also the effect of public spending on attitudes more generally. |
| Keywords: | EU spending; EU support; euroscepticism; Brexit; Wales |
| JEL: | J1 |
| Date: | 2025–03–20 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:127558 |
| By: | Ally Abubakar Samiji; Darlene K. Mutalemwa |
| Abstract: | The study examines Dar es Salaam's potential as a focal point for structural transformation, highlighting its emergence as a significant economic hub. Through a mixed-methods approach, the research investigates how urban development is shaped by institutional, economic, political, and spatial factors. Findings indicate a shift toward a service-oriented economy, although the informal sector remains dominant, characterized by low productivity. Key challenges include infrastructure gaps, skills shortages, limited entrepreneurial spirit, and bureaucratic inefficiencies. |
| Keywords: | Structural transformation, Informal sector, Urbanization, Political settlements, Tanzania |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:unu:wpaper:wp-2025-23 |
| By: | Lange, Martin; McNamara, Sarah; Schmidt, Philipp |
| Abstract: | The labor market integration of asylum seekers remains a contested issue. Using the EU-Labor-Force-Survey, we characterize the state of asylum seekers' labor market integration in Europe, and provide representative statistics on several dimensions of integration. We compare asylum seekers to natives and economic migrants and find that asylum seekers struggle to integrate across European states, exhibiting employment rates of 10 percentage points lower than that of natives, on average, as well as a notable gap in job-quality. Analyzing self-reported barriers to employment, we document that asylum seekers' lower employment rates and job-quality are likely the result of institutional hurdles. |
| Keywords: | asylum seekers, refugees, labor market integration |
| JEL: | F22 K37 J11 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:312581 |
| By: | Bernard, Josef; Refisch, Martin; Grzelak, Anna; Bański, Jerzy; Deppisch, Larissa; Konopski, Michał; Kostelecký, Tomáš; Kowalski, Mariusz; Klärner, Andreas |
| Abstract: | Recently, the notion of left-behind places and regions has gained ground in academic debates on regional inequality and changing electoral landscapes. This paper proposes an approach to conceptualising and measuring regional "left-behindness" in three Central Eastern European countries that goes beyond a dichotomous division of regions into "left-behind" versus "not left-behind". It understands left-behindness as a multi-dimensional continuum, representing regional disparities in living standards and socio-economic opportunities. Our understanding of left-behind plades is based to a large extent on the current economic conditions of the regions and their dynamics, but goes beyond them to include a wider range of socially relevant aspects of the living conditions, including educational attainment, poverty, and the attractiveness of places to live. The paper proposes an approach to measuring regional left-behindness and explores how it explains voting patterns. Thus, the paper is motivated by the seminal arguments of the 'geography of discontent' debate. Its proponents have argued that rising support for populist, right-wing nationalist-conservative and antisystem parties is often closely linked to spatial patterns of regional inequality. This argument has been repeatedly tested in Western European countries, but has remained under-researched in Central Eastern Europe. Using our approach, we were able to confirm the validity of the "geography of discontent" as a central thesis for all three countries studied. The novelty and added value of this study is that it extends the understanding of left-behindness and voting. Our multidimensional approach to left-behindness allows for a comprehensive interpretation of spatial patterns of populist voting in Central Eastern Europe. The relationship between regional left-behindness and voting behaviour varies in strength across different countries. In Czechia, there are strong associations for the parties ANO and SPD, but not for the KSéCM. In eastern Germany, the association between leftbehindness and support for the AfD is weaker, as is the case in Poland for the PiS. Another contribution of the multidimensional concept of left-behindness is the finding that different dimensions of left-behindness have different electoral effects. There appears to be a systematic influence of economic prosperity and relative expansion, which primarily capturesthe contrast between metropolitan areas and their hinterlands on the one hand, versus the rest of the country on the other-not only in terms of economic prosperity and relative expansion, but also in terms of a significant social status hierarchy. Poverty, however, shows a less stable relationship. |
| Abstract: | Der Begriff der "abgehängten" Orte und Regionen hat in akademischen Debatten über regionale Disparitäten und sich verändernde Wahllandschaften an Bedeutung gewonnen. Dieses Paper schlägt einen Ansatz zur Konzeptualisierung und Messung regionaler Disparitäten in drei mittel- und osteuropäischen Ländern vor, der über eine dichotomische Unterteilung der Regionen in "abgehängt" versus "nicht abgehängt" hinausgeht. "Abgehängtheit" wird als ein mehrdimensionales Kontinuum verstanden, das regionale Disparitäten in Bezug auf Lebensstandards und sozioökonomische Chancen darstellt. Unser Verständnis von "abgehängten" Regionen basiert weitgehend auf den aktuellen wirtschaftlichen Bedingungen der Regionen und deren Dynamik, geht jedoch darüber hinaus und schließt ein breites Spektrum sozial relevanter Aspekte der Lebensbedingungen ein, einschließlich Bildungsniveau und Armut. Das Paper schlägt einen neuen Ansatz zur Messung regionaler Disparitäten vor und untersucht, wie diese Wahlverhalten erklären. Das Paper nimmt Bezug auf die grundlegenden Argumente der Debatte über die "Geographie der Unzufriedenheit". Darin wird argumentiert, dass die zunehmende Unterstützung für populistische, rechtspopulistische national-konservative und Anti-System-Parteien oft eng mit räumlichen Mustern regionaler Disparitäten verbunden ist. Diese These wurde wiederholt in westeuropäischen Ländern getestet, jedoch in Mittel- und Osteuropa noch unzureichend untersucht. Mit unseren Analysen können wir die Gültigkeit der Annahmen der "Geographie der Unzufriedenheit"für alle drei untersuchten Länder im Grundsatz bestätigen. Die Neuheit und der Mehrwert dieses Papers bestehen darin, dass darin das Verständnis von regionalen Disparitäten und Wahlverhalten erweitert wird. Unser multidimensionaler Ansatz zur Messung regionaler Disparitäten ermöglicht eine umfassende Interpretation räumlicher Muster populistischen Wahlverhaltens in Mittel- und Osteuropa. Die Beziehung zwischen regionalem "Abgehängtsein" und Wahlverhalten variiert in ihrer Stärke zwischen den verschiedenen Ländern. In Tschechien bestehen starke Assoziationen zu den Parteien ANO und SPD, jedoch nicht zur KSéCM. In Ostdeutschland ist der Zusammenhang zwischen "Abgehängtsein" und Unterstützung für die AfD schwächer, ebenso wie in Polen für die PiS. Ein weiterer Beitrag des multidimensionalen Konzepts des "Abgehängtseins" ist die Erkenntnis, dass verschiedene Dimensionen unterschiedliche Wahleffekte haben. Es scheint einen systematischen Einfluss von wirtschaftlichem Wohlstand und regionalem Wachstum zu geben, der sich vor allem in Unterschieden zwischen städtischen Gebieten und deren ländlichem Umland einerseits und dem Rest des Landes andererseits zeigt. Der Zusammenhang zwischen Armut und sozialer Exklusion auf der einen Seite und dem Wahlverhalten auf der anderen Seite ist jedoch weniger stabil. |
| Keywords: | Geographie der Unzufriedenheit, politische Geographie, abgehängte Regionen, regionale Disparitäten, Wahlgeographie, Deutschland, Tschechien, Polen, Europäische Union, geography of discontent, political geography, left-behind places, regional disparities, electoral geography, Germany, Czechia, Poland, European Union |
| JEL: | D72 O18 O57 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:jhtiwp:312565 |
| By: | Robert C. M. Beyer; Claire Li; Mr. Sebastian Weber |
| Abstract: | EU enlargement has stalled since the last member joined over ten years ago, marking the longest period without expansion since 1973. This elapsed time contrasts with the potential income gains membership promises. Drawing on the biggest EU enlargement in 2004 and employing a synthetic difference-in-difference estimator on regional data, we estimate that EU membership has increased per capita incomes by more than 30 percent. Capital accumulation and higher productivity contributed broadly equally, while employment effects were small. Gains were initially driven by the industrial sector and later by services. Despite substantial regional heterogeneity in gains—larger for those with better financial access and stronger integration in value chains prior to accession—all regions that joined the EU benefited. Moreover, existing members benefited too, with average income per capita around 10 percent higher. The estimated gains suggest that deep integration carries significant additional economic benefits beyond simple trade unions, providing valuable lessons for future EU enlargement and regional integration efforts elsewhere. |
| Keywords: | European Union; Deep Integration; 2004 EU Enlargement; GDP Growth; NUTS2 Regions |
| Date: | 2025–02–21 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/047 |
| By: | Jan David Bakker; Nikhil Datta |
| Abstract: | Hidden “junk” fees have the potential to distort competition, creating high costs to consumers. However, regulating them can lead to adverse effects, especially in complex markets with intermediaries where they are most prevalent. To explore the equilibrium adjustments of regulating hidden fees, we leverage a unique matched landlord-broker dataset and a recent policy reform in the UK rental market capping non-salient broker fees charged to tenants. To guide our empirical analysis we first develop a conceptual framework of imperfectly competitive two-sided markets with non-salient price components. We estimate pass-throughs of the broker-tenant fee price cap to broker-landlord fees and advertised rental prices, examine demand responses, and net exit of both brokers and landlords. In line with imperfect competition, brokers absorb 75% of the regulation and landlords the remaining 25%. There is no market exit of landlords or brokers. Combining our reduced-form estimates and the theoretical framework we find that the policy saved tenants £376 per tenancy (equivalent to 4% of median yearly rent), landlords lost £74, and brokers lost £288. Overall, there was an aggregate welfare gain of £14 per tenancy, amounting to at least £16.4 million per year, as the policy reallocated market shares from less to more productive intermediaries. If the fee had been fully salient, consumer savings would be almost halved, and reallocated to landlords. Our results highlight the importance of economic analysis for designing consumer protection regulation. |
| Keywords: | junk fees, price regulation, housing rental brokers |
| JEL: | R28 D91 L51 L85 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11751 |
| By: | MHA Ridhwan (Bank Indonesia); Nurul Pratiwi (Bank Indonesia); Sulistiyo K. Ardiyono (Bank Indonesia); Amelia A. Hidayat (Bank Indonesia) |
| Abstract: | This study investigates the role of servicification within Indonesia’s manufacturing sector, focusing on its impact on productivity, global value chain (GVC) participation, and regional diversity in servicification practices. Empirical results indicate that servicification is positively correlated with firm productivity, with a 10% increase in service intensity linked to approximately a 1% productivity boost. The study further explores the differential impact of servicification across regions, technological classifications, and firm sizes. It reveals that in regions such as Java and Sumatra, high-value-added sectors benefit more from service integration, while the Eastern of Indonesia (EoI)’s reliance on primary manufacturing highlights challenges due to skill gaps and resource constraints. Also, based on regional survey data, they reveal how the integration of services—such as logistics, R&D, and customer support—into manufacturing operations can drive productivity and increase the sector’s competitiveness. This analysis provides policy recommendations to optimize servicification, enhance GVC participation, and support the transition to a service-oriented manufacturing landscape. |
| Keywords: | Servicification, Manufacturing Sector, Productivity, Global Value Chains, Digitalization |
| JEL: | L60 L25 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:idn:wpaper:wp032024 |
| By: | Augusto Cerqua; Samuel Nocito; Gabriele Pinto |
| Abstract: | We evaluate the impact of a recent reform that sharply increased the salaries of Italian local politicians on electoral competition and the valence attributes of the candidates elected. Exploiting misaligned election dates across Italian cities, we propose a novel methodology, the time-shifted control design (TSCD), to estimate the reform’s impact on municipalities up to 30, 000 inhabitants, representative of almost the entire universe of Italy’s local administrative units. We find a boost in the entry of new political candidates after the first post-reform electoral round, with no significant enhancement in the overall quality of the political class. These outcomes possibly stem from the varying distribution of compliers—whose candidacy decision is influenced by the reform—across diverse political and economic contexts. Thus, we find that in less affluent areas or those with fewer entry barriers, the pay rise drew a larger number of mayoral candidates, encouraging individuals from outside the political sphere to enter the competition. In the poorest contexts, we also observe a shift in the profile of councilors and members of the mayor’s executive committee, where the pay rise attracted individuals with lower educational levels but with experience in white-collar positions. |
| Keywords: | local governments, politicians’ wages, time-shifted control design |
| JEL: | D04 D72 J45 C13 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11778 |
| By: | Jeremias Nieminen; Sanni Kiviholma; Ohto Kanninen; Hannu Karhunen |
| Abstract: | Labor market testing (LMT) requires firms to demonstrate there are no local work-ers available before hiring an immigrant. We examine the effect of removing LMT requirements for non-EU workers in Finland utilizing regional and temporal vari-ation in occupations exempted from LMT. We combine individual and firm-level administrative data with hand-collected information on local changes in labor market testing rules and apply a staggered difference-in-differences research design. We find that removing the LMT requirement increases the inflow of non-EU workers to treated occupation-region cells. This is mainly driven by non-EU individuals already in Finland. Five years post-treatment, the negative earnings effect is 2 % at the occupation-region level and 4% for incumbent workers at the individual level, more pronounced in low-wage and service-oriented occupations and among older workers. In low-paying occupations, the earnings effect is largely attributable to decreased working hours and to a suppressed wage drift for stayers. However, we also observe a positive employment effect at the individual level for workers in the upper segment of the wage distribution. At the firm level, LMT removal increases the number of non-EU employees while having no effect on profitability. |
| Keywords: | labor market testing, immigration, labor supply, wages, shortage list |
| JEL: | J20 J38 J61 J68 |
| Date: | 2025–01–29 |
| URL: | https://d.repec.org/n?u=RePEc:pst:wpaper:352 |
| By: | Capoani, Luigi; Lakócai, Csaba; Imbesi, Cristoforo; Van Veen, Violetta |
| Abstract: | This paper investigates the positioning of the UK and Northern Italy within the Blue Banana, which the literature considers as the productive core of Europe. We compare the main economic characteristics of the two regions with the rest of the Blue Banana by analysing several indicators, ranging from urbanisation and infrastructure development to unemployment, productivity, competitiveness, and attractiveness. Based on our findings, in terms of population, urbanisation, and infrastructure, the Blue Banana and the two edges are still an integral part of Europe’s core. However, in terms of employment structure, productivity, competitiveness and attractiveness, its significance can be questioned due to the weaker performance of Northern Italy and the negative effects of Brexit. |
| Keywords: | Blue Banana; Northern Italy; European integration; EUTS-2 region |
| JEL: | N0 R14 J01 |
| Date: | 2024–12–30 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:127678 |
| By: | Yarkin, Alexander |
| Abstract: | This paper documents the effects of home-country Internet expansion on immigrants' health and subjective well-being (SWB). Combining data on SWB and health from the European Social Survey (ESS) with data on 3G and overall Internet expansion (ITU and Collins Batholomew), I find that immigrants' SWB and health increase following home-country Internet expansion. This result is observed in both the TWFE, and event study frameworks. The effects are stronger for (i) first-generation immigrants, (ii) those less socially integrated at destination, and (iii) those with stronger family ties to the origins. Thus, while recent evidence points towards negative effects of the Internet and social media on user well-being, the effects are very different for immigrants. |
| Keywords: | Immigration, Internet, Subjective Well-being, Health, Social Networks |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1573 |
| By: | Brooke Dirtzu; Jayme Gerring; Brett Huettner; Russell Mills |
| Abstract: | The Cleveland Fed’s Survey of Regional Conditions and Expectations (SORCE) administered in February 2025 asked respondents from across the Fourth District a set of special questions about the potential impact of tariffs on their business. This District Data Brief analyzes their responses. |
| Keywords: | Fourth District; Tariffs; Regional economics |
| Date: | 2025–04–22 |
| URL: | https://d.repec.org/n?u=RePEc:fip:c00003:99880 |
| By: | Costantiello, Alberto; Drago, Carlo; Arnone, Massimo; Leogrande, Angelo |
| Abstract: | This study investigates the relationship between Research Intensity (RI) and a range of Environmental, Social, and Governance (ESG) variables for Italian regions using machine learning algorithms and panel data models. The study seeks to identify the most predictive variables of research intensity from a range of cultural, environmental, socio-economic, and governance indicators. Support Vector Machine, Random Forest, k-Nearest Neighbors, and Neural Network algorithms are used to ascertain comparative predictive power. Feature importance analysis identifies education levels, in particular tertiary education qualifications, and technological infrastructure as most predictive of research intensity. Regional differences in research intensity are also investigated on the basis of political representation, healthcare accessibility, material consumption, and cultural investment variables. Results indicate that economically developed regions with sufficient research capacity are more research-intensive but can also face environmental sustainability and social inclusiveness issues. The study concludes that policy measures to enable education, technological innovation, environmental management, and governance improvement are required to spur research capacity in Italian regions. The study also provides insight into the use of research intensity in informing broader ESG objectives, including policy intervention for mitigating regional imbalances. Future studies should provide insight into the dynamic interaction effects of research intensity and ESG variables over time using more sophisticated machine learning techniques to further enhance predictive power. |
| Keywords: | Research Intensity, ESG Factors, Machine Learning, Panel Data Models, Italian Regions. |
| JEL: | C23 I23 O32 Q56 R58 |
| Date: | 2024–03–30 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124185 |
| By: | Yashodhan Ghorpade; Muhammad Saad Imtiaz |
| Abstract: | We examine the relationship between violent conflict and the willingness of potential migrants to accept lower skilled work (occupational downgrading). We develop a theoretical model of migration decisions, which we test using an innovative survey module administered to highskilled youth in Myanmar. Consistent with the predictions of the model, we show that insecurity induced by conflict reduces the additional wage premium that individuals would typically demand for taking on lower-skilled work, indicating greater amenability to occupational downgrading. These effects are particularly pronounced for disadvantaged groups, such as women, ethnic minorities, and those with weaker labor market networks or English language skills. The results are driven by respondents from areas under territorial contestation, and those interviewed after the sudden activation of a conscription law during the survey. This further confirms how security considerations may override the preference for skill-appropriate job matching, suggesting that conflict may worsen labor market outcomes and reduce potential gains from migration, especially for disadvantaged groups. |
| Keywords: | compensating differentials, conflict, migration, myanmar, occupational downgrading |
| JEL: | F22 J61 O15 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hic:wpaper:427 |
| By: | Duleep, Harriet; Dowhan, Dan; Liu, Xingfei; Regets, Mark; Gesumaria, Robert |
| Abstract: | The 1924 Immigration Act excluded immigrants from economically developing countries to the point of their near total exclusion. Forty years later, the 1965 Immigration and Nationality Act eliminated most discriminatory county-of-origin barriers. America's doors opened and immigration from economically developing countries soared. Fueling debates about the "quality" of immigrants from economically developing countries, empirical studies based on a wellrespected methodology conclude that post-1965 immigrant men have low initial earnings and sluggish earnings growth. This methodology is based on flawed assumptions (Duleep, Liu, and Regets, 2022). Removing these assumptions reveals high earnings growth for post-1965 immigrant men in accordance with the Immigrant Human Capital Investment Model (Duleep and Regets, 1999). A similar story emerges for immigrant women, contradicting the Family Investment Hypothesis first put forth by Long (1980) and Duleep and Sanders (1993). It appears a pre- 1965/post-1965 transition occurred in the earnings profiles of U.S. immigrants, from earnings resembling those of U.S. natives to low initial earnings but much higher earnings growth than their U.S.-born statistical twins. The transition underlies the overtime success story of immigrant families from economically developing countries (Duleep, Regets, Sanders, and Wunnava, 2021); the high earnings growth reflects human capital investment that invigorates the economy (Duleep, Jaeger, and McHenry, 2018; Green, 1999, Green and Worswick, 2012). |
| Keywords: | Immigrant earning growth, human capital investment, skill transferability, immigrant quality, sample restrictions, family investment hypothesis, nonparametric estimation |
| JEL: | J15 J16 J24 J31 C1 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1596 |