We provide evidence that most Mexican children exposed to the international migration of their fathers experience further variations in their living arrangements or the dissolution of the marital union of their parents. Children left behind typically join the household of their maternal grandparents. These changes have relevant implications for the analysis of the effects of migration and remittances: they interfere with the identification of instances of paternal migration in standard cross-sectional or longitudinal surveys, and they can give rise to heterogeneity in the effects of interest making some key household-level variables endogenous with respect to the treatment.
{"title":"Left Behind but Not Immobile: Living Arrangements of Mexican Transnational Households","authors":"Simone Bertoli, Elsa Gautrain, Elie Murard","doi":"10.1086/717282","DOIUrl":"https://doi.org/10.1086/717282","url":null,"abstract":"We provide evidence that most Mexican children exposed to the international migration of their fathers experience further variations in their living arrangements or the dissolution of the marital union of their parents. Children left behind typically join the household of their maternal grandparents. These changes have relevant implications for the analysis of the effects of migration and remittances: they interfere with the identification of instances of paternal migration in standard cross-sectional or longitudinal surveys, and they can give rise to heterogeneity in the effects of interest making some key household-level variables endogenous with respect to the treatment.","PeriodicalId":48055,"journal":{"name":"Economic Development and Cultural Change","volume":"71 1","pages":"1359 - 1395"},"PeriodicalIF":2.0,"publicationDate":"2021-10-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42335579","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The literature holds that having young children pushes women into self-employment to reconcile motherhood demands with their professional ambitions. However, knowledge gaps remain on how this effect differs by social context. Using nationally representative data from Nigeria, this paper demonstrates that motherhood has no statistically significant impact on women’s self-employment probabilities in a context where self-employment is predominantly informal and marriage creates extended family networks. Instead, after accounting for selection bias and the endogeneity of fertility and education decisions jointly, we find that lack of education drives up women’s self-employment probabilities in such a context. These findings are robust to alternative specifications.
{"title":"Motherhood and Women’s Self-Employment: Theory and Evidence from Nigeria","authors":"Jean-Louis Bago, Sylvain Dessy","doi":"10.1086/716322","DOIUrl":"https://doi.org/10.1086/716322","url":null,"abstract":"The literature holds that having young children pushes women into self-employment to reconcile motherhood demands with their professional ambitions. However, knowledge gaps remain on how this effect differs by social context. Using nationally representative data from Nigeria, this paper demonstrates that motherhood has no statistically significant impact on women’s self-employment probabilities in a context where self-employment is predominantly informal and marriage creates extended family networks. Instead, after accounting for selection bias and the endogeneity of fertility and education decisions jointly, we find that lack of education drives up women’s self-employment probabilities in such a context. These findings are robust to alternative specifications.","PeriodicalId":48055,"journal":{"name":"Economic Development and Cultural Change","volume":"71 1","pages":"1003 - 1055"},"PeriodicalIF":2.0,"publicationDate":"2021-10-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43709355","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We exploit the progression of the Peruvian conflict (1980–2000) over time and space to show that individuals’ responses to conflict violence are affected by the identity of the perpetrator. We find that a 1 standard deviation increase in exposure to all violence (from government and terrorists) reduces the perception of the importance of voting and the probability of voting by 1.4% and 1.8% (of each variable mean). However, distinguishing by the perpetrator’s identity unveils contrasting effects. A 1 standard deviation increase in exposure to government violence reduces the perception of voting importance by 4.8% and reduces participation in civil organizations by 12.8% as well as the perception that democracy works or matters by 4.8% and 3.3%. In contrast, exposure to terrorist violence strengthens social capital, although the size of the effects tends to be smaller. In addition, the period from the late teens to early twenties seems key to influencing later voting behavior, participation, and democratic beliefs. Results are robust to pretrends in the outcome variables, multiple hypothesis testing corrections, and selection into migration.
{"title":"When the Identity of the Perpetrator Matters: The Heterogeneous Legacies of the Civil Conflict on Social Capital in Peru","authors":"Eduardo A. Malásquez, Edgar Salgado","doi":"10.1086/717341","DOIUrl":"https://doi.org/10.1086/717341","url":null,"abstract":"We exploit the progression of the Peruvian conflict (1980–2000) over time and space to show that individuals’ responses to conflict violence are affected by the identity of the perpetrator. We find that a 1 standard deviation increase in exposure to all violence (from government and terrorists) reduces the perception of the importance of voting and the probability of voting by 1.4% and 1.8% (of each variable mean). However, distinguishing by the perpetrator’s identity unveils contrasting effects. A 1 standard deviation increase in exposure to government violence reduces the perception of voting importance by 4.8% and reduces participation in civil organizations by 12.8% as well as the perception that democracy works or matters by 4.8% and 3.3%. In contrast, exposure to terrorist violence strengthens social capital, although the size of the effects tends to be smaller. In addition, the period from the late teens to early twenties seems key to influencing later voting behavior, participation, and democratic beliefs. Results are robust to pretrends in the outcome variables, multiple hypothesis testing corrections, and selection into migration.","PeriodicalId":48055,"journal":{"name":"Economic Development and Cultural Change","volume":"71 1","pages":"1093 - 1148"},"PeriodicalIF":2.0,"publicationDate":"2021-10-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47208588","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper identifies the relative importance of human and physical capital for entrepreneurship. Microfinance clients were offered business training and a loan lottery of up to seven times the average loan size. Business training increased business knowledge, reduced business failure, improved business practices, and increased household expenditures by US$82 per year. It also improved financial and labor allocation decisions. These effects are concentrated among male clients, however. Access to larger loans, in contrast, had little effect, perhaps because current loan sizes already meet the demand of most clients. Despite these positive impacts, business training was not cost-effective for the lender.
{"title":"Money or Management? A Field Experiment on Constraints to Entrepreneurship in Rural Pakistan","authors":"X. Giné, G. Mansuri","doi":"10.1086/707502","DOIUrl":"https://doi.org/10.1086/707502","url":null,"abstract":"This paper identifies the relative importance of human and physical capital for entrepreneurship. Microfinance clients were offered business training and a loan lottery of up to seven times the average loan size. Business training increased business knowledge, reduced business failure, improved business practices, and increased household expenditures by US$82 per year. It also improved financial and labor allocation decisions. These effects are concentrated among male clients, however. Access to larger loans, in contrast, had little effect, perhaps because current loan sizes already meet the demand of most clients. Despite these positive impacts, business training was not cost-effective for the lender.","PeriodicalId":48055,"journal":{"name":"Economic Development and Cultural Change","volume":"70 1","pages":"41 - 86"},"PeriodicalIF":2.0,"publicationDate":"2021-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1086/707502","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45332593","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In the past decade, Gulf countries have imposed hiring quotas to promote native participation in the private sector and address unemployment. We explore how one such policy, Nitaqat in Saudi Arabia, affected exporting firms. We find that while the policy increased Saudi employment by these firms, it came at a cost. In the year following implementation, relative to firms above the quota, firms below were 1.5 percentage points more likely to exit the market and 7 percentage points less likely to export, and conditional on exporting, their exports fell by 10%–20%. These short-term effects persisted for at least 3 years.
{"title":"Labor Market Nationalization Policies and Exporting Firm Outcomes: Evidence from Saudi Arabia","authors":"Patricia Cortés, Semiray Kasoolu, C. Pan","doi":"10.1086/719835","DOIUrl":"https://doi.org/10.1086/719835","url":null,"abstract":"In the past decade, Gulf countries have imposed hiring quotas to promote native participation in the private sector and address unemployment. We explore how one such policy, Nitaqat in Saudi Arabia, affected exporting firms. We find that while the policy increased Saudi employment by these firms, it came at a cost. In the year following implementation, relative to firms above the quota, firms below were 1.5 percentage points more likely to exit the market and 7 percentage points less likely to export, and conditional on exporting, their exports fell by 10%–20%. These short-term effects persisted for at least 3 years.","PeriodicalId":48055,"journal":{"name":"Economic Development and Cultural Change","volume":"71 1","pages":"1397 - 1426"},"PeriodicalIF":2.0,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42528736","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Conflicts between ethnic groups can threaten group survival and exacerbate son preference in conformity with the traditional role of men as group defenders. We study the impact of the Armenia-Azerbaijan conflict over the Nagorno-Karabakh region on the subnational variation of sex ratios among children in Armenia that has one of the world’s highest sex ratios at birth. Difference-in-differences analysis shows that communities closer to the conflict region have higher sex ratio among children relative to the communities farther away. The findings from household surveys show that fear of war is associated with a stronger son preference at the individual level.
{"title":"The Role of Conflict in Sex Discrimination: The Case of Missing Girls","authors":"Astghik Mavisakalyan, Anna Minasyan","doi":"10.1086/716101","DOIUrl":"https://doi.org/10.1086/716101","url":null,"abstract":"Conflicts between ethnic groups can threaten group survival and exacerbate son preference in conformity with the traditional role of men as group defenders. We study the impact of the Armenia-Azerbaijan conflict over the Nagorno-Karabakh region on the subnational variation of sex ratios among children in Armenia that has one of the world’s highest sex ratios at birth. Difference-in-differences analysis shows that communities closer to the conflict region have higher sex ratio among children relative to the communities farther away. The findings from household surveys show that fear of war is associated with a stronger son preference at the individual level.","PeriodicalId":48055,"journal":{"name":"Economic Development and Cultural Change","volume":"71 1","pages":"443 - 484"},"PeriodicalIF":2.0,"publicationDate":"2021-07-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1086/716101","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46094741","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper estimates the causal impact of income on life satisfaction for a broad sample of individuals in a developing country. Using a large and representative panel survey of South African residents, we find that receipt of the Older Person’s Grant—a means-tested cash transfer that is given to residents age 60 and older regardless of labor force status—increases several household-level measures of economic well-being, resulting in a large and significant increase in subjective well-being. Specifically, the average 20% increase in per capita household income due to this grant increases life satisfaction by approximately 0.2 points, a large effect that extends to all members of the household. The discontinuity in the eligibility of the Older Person’s Grant provides a reliable causal estimate of the effect of income on life satisfaction that is larger than ordinary least squares estimates.
{"title":"Income Improves Subjective Well-Being: Evidence from South Africa","authors":"M. Alloush, Stephen Wu","doi":"10.1086/716056","DOIUrl":"https://doi.org/10.1086/716056","url":null,"abstract":"This paper estimates the causal impact of income on life satisfaction for a broad sample of individuals in a developing country. Using a large and representative panel survey of South African residents, we find that receipt of the Older Person’s Grant—a means-tested cash transfer that is given to residents age 60 and older regardless of labor force status—increases several household-level measures of economic well-being, resulting in a large and significant increase in subjective well-being. Specifically, the average 20% increase in per capita household income due to this grant increases life satisfaction by approximately 0.2 points, a large effect that extends to all members of the household. The discontinuity in the eligibility of the Older Person’s Grant provides a reliable causal estimate of the effect of income on life satisfaction that is larger than ordinary least squares estimates.","PeriodicalId":48055,"journal":{"name":"Economic Development and Cultural Change","volume":"71 1","pages":"485 - 517"},"PeriodicalIF":2.0,"publicationDate":"2021-07-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1086/716056","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43008893","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper studies the causal impact of political connections on innovation. Using a unique hand-collected data set of sudden deaths of politically connected independent directors (i.e., retired government officials) in Chinese firms, we find that an unexpected loss of political connections increases a firm’s patent applications by 34% (14 patents). The innovation response is more pronounced in firms with stronger connections: when the connected directors held higher-level bureaucratic positions or when firms operate within their geographical jurisdictions. Upon losing political connections, firms face higher competitive pressure and divert resources from rent seeking into innovation investment. Our findings highlight the role of competition in the substitution between political connections and innovation, particularly in settings where formal institutions are weak.
{"title":"Political Connections, Competition, and Innovation: Quasi-Experimental Evidence from Chinese Firms","authors":"Lei Cheng, Zhimin Li","doi":"10.1086/716487","DOIUrl":"https://doi.org/10.1086/716487","url":null,"abstract":"This paper studies the causal impact of political connections on innovation. Using a unique hand-collected data set of sudden deaths of politically connected independent directors (i.e., retired government officials) in Chinese firms, we find that an unexpected loss of political connections increases a firm’s patent applications by 34% (14 patents). The innovation response is more pronounced in firms with stronger connections: when the connected directors held higher-level bureaucratic positions or when firms operate within their geographical jurisdictions. Upon losing political connections, firms face higher competitive pressure and divert resources from rent seeking into innovation investment. Our findings highlight the role of competition in the substitution between political connections and innovation, particularly in settings where formal institutions are weak.","PeriodicalId":48055,"journal":{"name":"Economic Development and Cultural Change","volume":"71 1","pages":"819 - 862"},"PeriodicalIF":2.0,"publicationDate":"2021-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47376971","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Jarrad Farris, M. Porter, Songqing Jin, M. Maredia
Families that rely on rain-fed agriculture are prone to rainfall shocks. We use a unique data set of at-risk children in rural Rwanda to estimate the impact of rainfall shocks during a child’s in utero period. We find that increases in in utero rainfall during the midseason period increase child height-for-age z-scores but that increases in in utero rainfall in the harvest period lower these z-scores. In light of these period-specific effects, annual rainfall measures may attenuate estimates of child growth effects toward zero. We also find that intraseasonal impacts of rainfall on child growth are particularly salient for households that do not report any off-farm income sources and therefore rely solely on their own agricultural production for their livelihoods.
{"title":"Growing Pains: Timing of In Utero Rainfall Shocks and Child Growth in Rural Rwanda","authors":"Jarrad Farris, M. Porter, Songqing Jin, M. Maredia","doi":"10.1086/714886","DOIUrl":"https://doi.org/10.1086/714886","url":null,"abstract":"Families that rely on rain-fed agriculture are prone to rainfall shocks. We use a unique data set of at-risk children in rural Rwanda to estimate the impact of rainfall shocks during a child’s in utero period. We find that increases in in utero rainfall during the midseason period increase child height-for-age z-scores but that increases in in utero rainfall in the harvest period lower these z-scores. In light of these period-specific effects, annual rainfall measures may attenuate estimates of child growth effects toward zero. We also find that intraseasonal impacts of rainfall on child growth are particularly salient for households that do not report any off-farm income sources and therefore rely solely on their own agricultural production for their livelihoods.","PeriodicalId":48055,"journal":{"name":"Economic Development and Cultural Change","volume":"71 1","pages":"793 - 818"},"PeriodicalIF":2.0,"publicationDate":"2021-06-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1086/714886","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43247290","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper examines whether globalization promotes female empowerment by improving the job opportunities available to women. Previous work has documented that exporting causally improved working conditions at predominantly female garment factories in Myanmar. In this study, restricting to garment factory neighborhoods, we find that women living near exporting factories (as opposed to nonexporting factories) report significantly higher employment rates and more joint household decision-making; they have lower tolerance for domestic violence and are less likely to be victims of domestic violence. We reach the same conclusions with an instrumental variables strategy that uses distance to the airport as an instrument.
{"title":"Globalization and Female Empowerment: Evidence from Myanmar","authors":"Teresa Molina, Mari Tanaka","doi":"10.1086/715748","DOIUrl":"https://doi.org/10.1086/715748","url":null,"abstract":"This paper examines whether globalization promotes female empowerment by improving the job opportunities available to women. Previous work has documented that exporting causally improved working conditions at predominantly female garment factories in Myanmar. In this study, restricting to garment factory neighborhoods, we find that women living near exporting factories (as opposed to nonexporting factories) report significantly higher employment rates and more joint household decision-making; they have lower tolerance for domestic violence and are less likely to be victims of domestic violence. We reach the same conclusions with an instrumental variables strategy that uses distance to the airport as an instrument.","PeriodicalId":48055,"journal":{"name":"Economic Development and Cultural Change","volume":"71 1","pages":"519 - 565"},"PeriodicalIF":2.0,"publicationDate":"2021-06-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1086/715748","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45258336","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}