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  • Articles  (18)
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  • 1
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    Temperature Changes, Household Consumption, and Internal Migration: Evidence from Tanzania (2016)
    Oxford University Press
    Details
    Publication Date: 2016-07-09
    Description: Large rural-urban wage gaps observed in many developing countries are suggestive of barriers to migration that keep potential migrants in rural areas. Using long panel data spanning nearly two decades, I study the extent to which migration rates are constrained by liquidity constraints in rural Tanzania. The analysis begins by quantifying the impact of weather variation on household welfare. The results show how household consumption co-moves with temperature, rendering households vulnerable to local weather events. These temperature-induced income shocks are then found to inhibit long-term migration among men, thus preventing them from tapping into the opportunities brought about by geographical mobility.
    Keywords: O12 - Microeconomic Analyses of Economic Development, O15 - Human Resources ; Human Development ; Income Distribution ; Migration, Q54 - Climate ; Natural Disasters ; Global Warming, R23 - Regional Migration ; Regional Labor Markets ; Population
    Print ISSN: 0002-9092
    Electronic ISSN: 1467-8276
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
    Published by Oxford University Press
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  • 2
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    A Declining Farm Workforce: Analysis of Panel Data from Rural Mexico (2016)
    Oxford University Press
    Details
    Publication Date: 2016-07-09
    Description: Analysis of nationally representative individual-level panel data from 1980 to 2010 reveals a significant negative trend in the agricultural labor supply from rural Mexico, which is the primary source of hired workers for U.S. farms. These findings offer an explanation for the rise over time in U.S. farm wages. Concomitants of the agricultural transformation, including growth in the non-farm economy, falling birth rates, and an increase in rural education, accelerate the transition of rural Mexicans out of farm work. Higher U.S. farm wages and increased border enforcement slow the transition, but the combined impact of these offsetting variables is relatively small. A diminishing farm labor supply has far-reaching implications for farmers, farm labor organizers, rural communities, and agricultural workers.
    Keywords: J21 - Labor Force and Employment, Size, and Structure, J43 - Agricultural Labor Markets, O15 - Human Resources ; Human Development ; Income Distribution ; Migration, Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    Print ISSN: 0002-9092
    Electronic ISSN: 1467-8276
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
    Published by Oxford University Press
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  • 3
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    Measuring industry coagglomeration and identifying the driving forces (2016)
    Oxford University Press
    Details
    Publication Date: 2016-09-20
    Description: Understanding industry agglomeration and its driving forces is critical for the formulation of industrial policy in developing countries. Crucial to this process is the definition and measurement of agglomeration. We construct a new coagglomeration index based purely on the location of firms. We examine what this index reveals about the importance of transport costs, labour market pooling and technology transfer for agglomeration processes, controlling for overall industry agglomeration. We compare the results based on our new measure to existing measures in the literature and find very different underlying stories at work. We conclude that in conducting analyses of this kind giving consideration to the source of agglomeration economies, employees or entrepreneurs, and finding an appropriate measure for agglomeration, are both crucial to the process of identifying agglomerative forces.
    Keywords: L14 - Transactional Relationships ; Contracts and Reputation ; Networks, L60 - General, O14 - Industrialization ; Manufacturing and Service Industries ; Choice of Technology, O33 - Technological Change: Choices and Consequences ; Diffusion Processes
    Print ISSN: 1468-2702
    Electronic ISSN: 1468-2710
    Topics: Geography , Economics
    Published by Oxford University Press
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  • 4
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    Can Free Provision Reduce Demand for Public Services? Evidence from Kenyan Education* (2015)
    Oxford University Press
    Details
    Publication Date: 2015-05-21
    Description: In 2003 Kenya abolished user fees in all government primary schools. We show that this policy contributed to a shift in demand away from free schools, where net enrollment stagnated after 2003, toward fee-charging private schools, where both enrollment and fee levels grew rapidly after 2003. These shifts had mixed distributional consequences. Enrollment by poorer households increased, but segregation between socio-economic groups also increased. We find evidence that the shift in demand toward private schooling was driven by more affluent households who ( i ) paid higher ex ante fees and thus experienced a larger reduction in school funding, and ( ii ) exited public schools in reaction to increased enrollment by poorer children.
    Keywords: H52 - Government Expenditures and Education, I22 - Educational Finance, O15 - Human Resources ; Human Development ; Income Distribution ; Migration
    Print ISSN: 0258-6770
    Electronic ISSN: 1564-698X
    Topics: Economics
    Published by Oxford University Press
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  • 5
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    Single-firm case studies in economic geography: some methodological reflections on the case of Zara (2015)
    Oxford University Press
    Details
    Publication Date: 2015-04-14
    Description: In this article, I reassess the undeserved reputation of Inditex’s Zara as a ‘home-sewn exception to globalization’ for supposedly keeping manufacturing at home despite larger trends; and I use the occasion to make a case for rigorous, evidentially strong single-firm case studies. In the process, I draw attention to the manner in which the value-adding qualities of scholarly work are being judged in economic geography; and argue that the prioritization of novelty over unenhanced readings of realities may encourage case studies to be presented as more unique and exceptional than they actually are.
    Keywords: D21 - Firm Behavior, F23 - Multinational Firms ; International Business, L14 - Transactional Relationships ; Contracts and Reputation ; Networks, L25 - Firm Performance: Size, Diversification, and Scope, L67 - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather
    Print ISSN: 1468-2702
    Electronic ISSN: 1468-2710
    Topics: Geography , Economics
    Published by Oxford University Press
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  • 6
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    Regulation of Natural Gas in the United States, Canada, and Europe: Prospects for a Low Carbon Fuel (2015)
    Oxford University Press
    Details
    Publication Date: 2015-01-29
    Description: The United States and Canada have seen a competitive and technological revolution in unconventional natural gas production in the 21 st Century—dramatically lowering the price of gas and displacing high-carbon coal with low-carbon gas for power generation. This gas revolution came from an earlier revolution in the regulation of gas pipelines, which ended the obstruction of gas markets by pipeline interests. Neither revolution has spread to Europe, where increasingly protectionist EU legislation has effectively blocked competitive pipeline entry and related gas markets. As a result, unconventional gas is untapped, coal displaces gas for power generation, and oil-linked gas prices have cost EU consumers a staggering $425 billion more than their US counterparts have paid since 2009 for about the same quantity of gas. Europe faces a serious institutional challenge to adopting the kind of pipeline regulation that facilitates the competitive flow of natural gas supplies and the accompanying lower carbon emissions. ( JEL : D23, K23, L14, L51, L95, N70, Q54)
    Keywords: D23 - Organizational Behavior ; Transaction Costs ; Property Rights, K23 - Regulated Industries and Administrative Law, L14 - Transactional Relationships ; Contracts and Reputation ; Networks, L51 - Economics of Regulation, L95 - Gas Utilities ; Pipelines ; Water Utilities, N70 - General, International, or Comparative, Q54 - Climate ; Natural Disasters ; Global Warming
    Print ISSN: 1750-6816
    Electronic ISSN: 1750-6824
    Topics: Energy, Environment Protection, Nuclear Power Engineering , Political Science , Economics
    Published by Oxford University Press
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  • 7
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    Child Development in a Changing World: Risks and Opportunities (2015)
    Oxford University Press
    Details
    Publication Date: 2015-07-15
    Description: This review explores current understandings of child development and the consequences for children of risk exposure in low- and middle-income countries by integrating empirical evidence from development economics with insights from allied social science disciplines. It provides a holistic perspective that highlights the synergies between children's developmental domains, drawing particular attention to dimensions such as self-efficacy, self-esteem and aspirations, which have had only limited treatment in the economics literature to date, especially in developing countries. It concludes that there is strong evidence of dynamic relationships between risk factors in early childhood and later outcomes across multiple developmental domains, emphasizing the heightened effect of shocks to the care environment and the cumulative effect of multiple shocks. It also concludes that risk is distributed unevenly, with children who are both in poverty and disadvantaged socially according to, for example, their ethnicity bearing the greatest burden; within a household, gender, birth order and other factors mean that some suffer disproportionately from shortfalls and incomplete protection. However, this review finds that low endowments in early childhood can be at least partially compensated for through improved environments and investments in later childhood, emphasizing the resilience of some children. The review goes on to explore the impact on children of dramatic socio-economic changes that have occurred in recent years with rapid growth across most developing countries. It highlights four key forces for change—fall in absolute poverty, increased access to services, changing household incentives for investing in children, and changing social and cultural values—and stresses the ambiguous effects on the welfare of children and their long-term prospects. In so doing, the review aims to consolidate emerging evidence on how risks and opportunities for child development may have changed in these dynamic contexts.
    Keywords: O15 - Human Resources ; Human Development ; Income Distribution ; Migration, I15 - Health and Economic Development, I24 - Education and Inequality, I25 - Education and Economic Development, J13 - Fertility ; Family Planning ; Child Care ; Children ; Youth, J16 - Economics of Gender ; Non-labor Discrimination, I30 - General, Y80 - Related Disciplines
    Print ISSN: 0257-3032
    Electronic ISSN: 1564-6971
    Topics: Economics
    Published by Oxford University Press
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  • 8
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    Evidence on Policies to Increase the Development Impacts of International Migration (2015)
    Oxford University Press
    Details
    Publication Date: 2015-07-15
    Description: International migration offers individuals and their families the potential to experience immediate and large gains in their incomes and offers a number of other positive benefits to the sending communities and countries. However, there are also concerns about the potential costs of migration, including concerns about trafficking and human rights, a desire for remittances to be used more effectively, and concerns about a loss of externalities from skilled workers. As a result, there is increasing interest in policies that can enhance the development benefits of international migration and mitigate these potential costs. We provide a critical review of recent research on the effectiveness of these policies at three stages of the migration process: pre-departure, during migration, and directed towards possible return. The existing evidence base suggests some areas of policy success: bilateral migration agreements for countries whose workers have few other migration options, developing new savings and remittance products that allow migrants more control over how their money is used, and efforts to provide financial education to migrants and their families. Suggestive evidence, together with theory, offers support for a number of other policies, such as lowering the cost of remittances, reducing passport costs, offering dual citizenship, and removing exit barriers to migration. Research offers reasons to be cautious about some policies, including policies enforcing strong rights for migrants, such as high minimum wages. Nevertheless, we find the evidence base to be weak for many policies, with no reliable research on the impact of most return migration programs or whether countries should attempt to induce communal remitting through matching funds.
    Keywords: O15 - Human Resources ; Human Development ; Income Distribution ; Migration, F22 - International Migration
    Print ISSN: 0257-3032
    Electronic ISSN: 1564-6971
    Topics: Economics
    Published by Oxford University Press
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  • 9
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    Managing Quantity, Quality, and Timing in Indian Cane Sugar Production: Ex Post Marketing Permits or Ex Ante Production Contracts? (2015)
    Oxford University Press
    Details
    Publication Date: 2015-09-30
    Description: Private sugar processors in Andhra Pradesh, India use an unusual form of vertical coordination. They issue ‘permits’ to selected cane growers a few weeks before harvest. These permits specify the amount of cane to be delivered during a narrow time period. This article investigates why processors create uncertainty among farmers using ex post permits instead of ex ante production contracts. The theoretical model predicts that ex post permits are more profitable than ex ante contracts or the spot market under existing government regulations in the sugar sector, which include a binding price floor for cane and the designation of a reserve area for each processor wherein it has a legal monopsony for cane. The use of ex post permits creates competition among farmers to increase cane quality, which increases processor profits and farmer costs. Empirical analysis supports the hypothesis that farmers operating in private factory areas have higher unit production costs than do their counterparts who patronize cooperatives.
    Keywords: L14 - Transactional Relationships ; Contracts and Reputation ; Networks, L22 - Firm Organization and Market Structure, L66 - Food ; Beverages ; Cosmetics ; Tobacco ; Wine and Spirits
    Print ISSN: 0258-6770
    Electronic ISSN: 1564-698X
    Topics: Economics
    Published by Oxford University Press
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  • 10
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    What Explains the Stagnation of Female Labor Force Participation in Urban India? (2015)
    Oxford University Press
    Details
    Publication Date: 2015-09-30
    Description: Female labor force participation rates in urban India between 1987 and 2011 are surprisingly low and have stagnated since the late 1980s. Despite rising growth, fertility decline, and rising wage and education levels, married women's labor force participation hovered around 18 percent. Analysis of five large cross-sectional micro surveys shows that a combination of supply and demand effects have contributed to this stagnation. The main supply side factors are rising household incomes and husband's education as well as the falling selectivity of highly educated women. On the demand side, the sectors that draw in female workers have expanded least, so that changes in the sectoral structure of employment alone would have actually led to declining participation rates.
    Keywords: I25 - Education and Economic Development, J16 - Economics of Gender ; Non-labor Discrimination, J20 - General, O15 - Human Resources ; Human Development ; Income Distribution ; Migration
    Print ISSN: 0258-6770
    Electronic ISSN: 1564-698X
    Topics: Economics
    Published by Oxford University Press
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  • 11
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    The Economics of Collective Reputation: Evidence from the Wine Industry (2015)
    Oxford University Press
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    Publication Date: 2015-03-14
    Description: We use original data regarding the array of Italian winery coalitions (wine denominations) to analyze the economics and determinants of collective reputation. We first run a cross-sectional analysis with 2008 data and the full set of control variables, then move to the dynamics of collective reputation with panel data analysis on a 30-year time span (1978–2008). Group reputation is history-dependent. In particular, past bad collective behavior increases the probability of being stuck in a "bad reputation trap." Minimum quality standards and effective enforcement are fundamental drivers of group reputation. The relationship between group size and collective reputation is non-linear: free entry may not be optimal due to free-riding problems. Finally, institutional signals such as the wine classification system are useful because they can be used by consumers as easily available proxies for information that is much more difficult to acquire.
    Keywords: L14 - Transactional Relationships ; Contracts and Reputation ; Networks, L15 - Information and Product Quality ; Standardization and Compatibility
    Print ISSN: 0002-9092
    Electronic ISSN: 1467-8276
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
    Published by Oxford University Press
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  • 12
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    The Economic Effects of Counterfeiting and Piracy: A Review and Implications for Developing Countries (2016)
    Oxford University Press
    Details
    Publication Date: 2016-02-10
    Description: Policy makers around the world recognize the potentially harmful consequences of trademark counterfeiting and copyright piracy. Indeed, many countries have recently initiated policy reforms to strengthen the enforcement of intellectual property rights (IPR). Further, minimum standards of enforcement have been incorporated in many international treaties, especially trade agreements. This emphasis on enforcement raises basic questions about the actual impacts of IP rights infringement, which differ across the types of IPR and economic sectors. We review the academic literature and other studies in the public domain to evaluate what has been learned about these socioeconomic effects, with an emphasis on developing countries where possible. We also identify important gaps in our understanding of the consequences of counterfeiting and piracy and develop recommendations on how governments might collect data and conduct studies to better inform IPR enforcement policy.
    Keywords: L14 - Transactional Relationships ; Contracts and Reputation ; Networks, O31 - Innovation and Invention: Processes and Incentives, O34 - Intellectual Property Rights
    Print ISSN: 0257-3032
    Electronic ISSN: 1564-6971
    Topics: Economics
    Published by Oxford University Press
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  • 13
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    Payment by Results in Development Aid: All That Glitters Is Not Gold (2016)
    Oxford University Press
    Details
    Publication Date: 2016-10-28
    Description: Payment by Results (PbR), where aid is disbursed conditional upon progress against a pre-agreed measure, is becoming increasingly important for various donors. There are great hopes that this innovative instrument will focus attention on ultimate outcomes and lead to greater aid effectiveness by passing the delivery risk on to recipients. However, there is very little related empirical evidence, and previous attempts to place it on a sure conceptual footing are rare and incomplete. This article collates and synthesises relevant insights from a wide range of subfields in economics, providing a rich framework with which to analyze Payment by Results. I argue that the domain in which it dominates more traditional forms is relatively small and if it is used too broadly, many of the results it claims are likely to be misleading. The likelihood of illusory gains stems from the difficulty of using a single indicator to simultaneously measure and reward performance: ‘once a measure becomes a target, it ceases to be a good measure.’ This does not mean PbR should not be used (indeed it will be optimal in some settings), but it does mean that claims of success should be treated with caution.
    Keywords: F35 - Foreign Aid, D86 - Economics of Contract: Theory, L14 - Transactional Relationships ; Contracts and Reputation ; Networks
    Print ISSN: 0257-3032
    Electronic ISSN: 1564-6971
    Topics: Economics
    Published by Oxford University Press
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  • 14
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    The economic value of local social networks (2016)
    Oxford University Press
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    Publication Date: 2016-09-20
    Description: The idea that local social capital yields economic benefits is fundamental to theories of agglomeration, and central to claims about the virtues of cities. However, this relationship has not been evaluated using methods that permit confident statements about causality. This article examines what happens to firms that become affiliated with ‘dealmakers’—individuals who are unusually well connected in local social networks. We adopt a quasi-experimental approach, which examines firms that added exactly one new individual to their firm, combining difference-in-differences and propensity score matching to address selection and\ identification challenges. The results indicate that when compared to a control group, firms which link to a dealmaker are rewarded with substantial gains in employment and sales.
    Keywords: L14 - Transactional Relationships ; Contracts and Reputation ; Networks, O12 - Microeconomic Analyses of Economic Development, O18 - Regional, Urban, and Rural Analyses, R11 - Regional Economic Activity: Growth, Development, and Changes
    Print ISSN: 1468-2702
    Electronic ISSN: 1468-2710
    Topics: Geography , Economics
    Published by Oxford University Press
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  • 15
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    What Really Works to Improve Learning in Developing Countries? An Analysis of Divergent Findings in Systematic Reviews (2016)
    Oxford University Press
    Details
    Publication Date: 2016-10-28
    Description: Over the course of just two years, at least six reviews have examined interventions that seek to improve learning outcomes in developing countries. Although the reviews ostensibly have the same objective, they reach sometimes starkly different conclusions. The first objective of this paper is to identify why reviews diverge in their conclusions and how future reviews can be more effective. The second objective is to identify areas of overlap in the recommendations of existing reviews of what works to improve learning. This paper demonstrates that divergence in the recommendations of learning reviews is largely driven by differences in the samples of research incorporated in each review. Of 229 studies with student learning results, the most inclusive review incorporates less than half of the total studies. Across the reviews, two classes of programs are recommended with some consistency. Pedagogical interventions that tailor teaching to student learning levels—either teacher-led or facilitated by adaptive learning software—are effective at improving student test scores, as are individualized, repeated teacher training interventions often associated with a specific task or tool. Future reviews will be most useful if they combine narrative review with meta-analysis, conduct more exhaustive searches, and maintain low aggregation of intervention categories.
    Keywords: O15 - Human Resources ; Human Development ; Income Distribution ; Migration, I21 - Analysis of Education, I28 - Government Policy, J13 - Fertility ; Family Planning ; Child Care ; Children ; Youth
    Print ISSN: 0257-3032
    Electronic ISSN: 1564-6971
    Topics: Economics
    Published by Oxford University Press
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  • 16
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    Reputation tapping (2015)
    Oxford University Press
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    Publication Date: 2015-07-29
    Description: Models describing the development of collective reputation have focused on the impact of past performance measures, but ignore the role of various marketing efforts for food and beverage products that highlight appellation information. We designed a laboratory experiment and used auction data to estimate consumer response to information tying US wine regions to famous wine production regions in France, a phenomenon we define as reputation tapping. Results show that reputation tapping increases bids for the wines produced in burgeoning US wine regions. Our findings also suggest that full protection of geographical indications may require monitoring of activities beyond those by individual firms.
    Keywords: C91 - Laboratory, Individual Behavior, L14 - Transactional Relationships ; Contracts and Reputation ; Networks, Q13 - Agricultural Markets and Marketing ; Cooperatives ; Agribusiness
    Print ISSN: 0165-1587
    Electronic ISSN: 1464-3618
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
    Published by Oxford University Press
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  • 17
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    The Impact of Vocational Schooling on Human Capital Development in Developing Countries: Evidence from China (2016)
    Oxford University Press
    Details
    Publication Date: 2016-01-19
    Description: A number of developing countries are currently promoting vocational education and training (VET) as a way to build human capital and strengthen economic growth. The primary aim of this study is to understand whether VET at the high school level contributes to human capital development in one of those countries—China. To fulfill this aim, we draw on longitudinal data on more than 10,000 students in vocational high school (in the most popular major, computing) and academic high school from two provinces of China. First, estimates from instrumental variables and matching analyses show that attending vocational high school (relative to academic high school) substantially reduces math skills and does not improve computing skills. Second, heterogeneous effect estimates also show that attending vocational high school increases dropout, especially among disadvantaged (low-income or low-ability) students. Third, we use vertically scaled (equated) baseline and follow-up test scores to measure gains in math and computing skills among the students. We find that students who attend vocational high school experience absolute reductions in math skills. Taken together, our findings suggest that the rapid expansion of vocational schooling as a substitute for academic schooling can have detrimental consequences for building human capital in developing countries such as China.
    Keywords: I25 - Education and Economic Development, J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity, O15 - Human Resources ; Human Development ; Income Distribution ; Migration
    Print ISSN: 0258-6770
    Electronic ISSN: 1564-698X
    Topics: Economics
    Published by Oxford University Press
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  • 18
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    The Decision to Invest in Child Quality over Quantity: Household Size and Household Investment in Education in Vietnam (2016)
    Oxford University Press
    Details
    Publication Date: 2016-01-19
    Description: During Vietnam's two decades of rapid economic growth, its fertility rate has fallen sharply at the same time that its educational attainment has risen rapidly—macro trends that are consistent with the hypothesis of a quantity-quality tradeoff in child-rearing. We investigate whether the micro-level evidence supports the hypothesis that Vietnamese parents are in fact making a tradeoff between quantity and "quality" of children. We present private tutoring—a widespread education phenomenon in Vietnam—as a new measure of household investment in children's quality, combining it with traditional measures of household education investments. To assess the quantity-quality tradeoff, we instrument for family size using the commune distance to the nearest family planning center. Our IV estimation results based on data from the Vietnam Household Living Standards Surveys (VHLSSs) and other sources show that rural families do indeed invest less in the education of school-age children who have larger numbers of siblings. This effect holds for several different indicators of educational investment and is robust to different definitions of family size, identification strategies, and model specifications that control for community characteristics as well as the distance to the city center. Finally, our estimation results suggest that private tutoring may be a better measure of quality-oriented household investments in education than traditional measures like enrollment, which are arguably less nuanced and less household-driven.
    Keywords: I22 - Educational Finance, I28 - Government Policy, J13 - Fertility ; Family Planning ; Child Care ; Children ; Youth, O15 - Human Resources ; Human Development ; Income Distribution ; Migration, O53 - Asia including Middle East, P36 - Socialist Institutions and Their Transitions: Consumer Economics ; Health, Education and Traini
    Print ISSN: 0258-6770
    Electronic ISSN: 1564-698X
    Topics: Economics
    Published by Oxford University Press
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