Using the 2017 Pohang earthquake in South Korea as a natural experiment, we examined the responses of the population. By constructing a counterfactual of Pohang using synthetic controls, we found that the earthquake significantly decreased the local population. To investigate the mechanisms of population decrease, we gathered administrative data on the universe of address changes and self-reported reasons for migration. While out-migration due to changes in the residential environment increased significantly, job-related migration showed little change. This out-migration also led to a depreciation in rental housing prices. Our results suggest that local residents perceived the earthquake as a negative amenity.
{"title":"Natural disasters, risk and migration: evidence from the 2017 Pohang earthquake in Korea","authors":"Hyejin Kim, Jongkwan Lee","doi":"10.1093/jeg/lbad007","DOIUrl":"https://doi.org/10.1093/jeg/lbad007","url":null,"abstract":"\u0000 Using the 2017 Pohang earthquake in South Korea as a natural experiment, we examined the responses of the population. By constructing a counterfactual of Pohang using synthetic controls, we found that the earthquake significantly decreased the local population. To investigate the mechanisms of population decrease, we gathered administrative data on the universe of address changes and self-reported reasons for migration. While out-migration due to changes in the residential environment increased significantly, job-related migration showed little change. This out-migration also led to a depreciation in rental housing prices. Our results suggest that local residents perceived the earthquake as a negative amenity.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":" ","pages":""},"PeriodicalIF":2.9,"publicationDate":"2023-05-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43937101","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
It is widely understood that innovations tend to be concentrated in cities, which is evidenced by innovative output increasing disproportionately with city size. Yet, given the heterogeneity of countries and technologies, few studies explore the relationship between population and innovation numbers. For instance, in the USA, innovative output scaling is substantial and is particularly pronounced for complex technologies. Whether this is a universal pattern of complex technologies and a potential facilitator of scaling, is unknown. Our analysis compared urban scaling in urban areas across 33 countries and 569 technologies. Considerable variation was identified between countries, which is rooted in two fundamental mechanisms (sorting and boosting). The sorting of innovation-intensive technologies is found to drive larger innovation counts among cities. Among most countries, this mechanism contributes to scaling more than city size boosting innovation within specific technologies. While complex technologies are concentrated in large cities and benefit from the advantages of urbanization, their contribution to the urban scaling of innovations is limited.
{"title":"Boosting, sorting and complexity—urban scaling of innovation around the world","authors":"Tom Broekel, Louis Knuepling, Lars Mewes","doi":"10.1093/jeg/lbad006","DOIUrl":"https://doi.org/10.1093/jeg/lbad006","url":null,"abstract":"\u0000 It is widely understood that innovations tend to be concentrated in cities, which is evidenced by innovative output increasing disproportionately with city size. Yet, given the heterogeneity of countries and technologies, few studies explore the relationship between population and innovation numbers. For instance, in the USA, innovative output scaling is substantial and is particularly pronounced for complex technologies. Whether this is a universal pattern of complex technologies and a potential facilitator of scaling, is unknown. Our analysis compared urban scaling in urban areas across 33 countries and 569 technologies. Considerable variation was identified between countries, which is rooted in two fundamental mechanisms (sorting and boosting). The sorting of innovation-intensive technologies is found to drive larger innovation counts among cities. Among most countries, this mechanism contributes to scaling more than city size boosting innovation within specific technologies. While complex technologies are concentrated in large cities and benefit from the advantages of urbanization, their contribution to the urban scaling of innovations is limited.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":" ","pages":""},"PeriodicalIF":2.9,"publicationDate":"2023-04-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47562243","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Economic change over the past 20 years has rendered many individuals and territories vulnerable, leading to greater interpersonal and interterritorial inequality. This rising inequality is seen as a root cause of populism. Yet, there is no comparative evidence as to whether this discontent is the consequence of localised interpersonal inequality or stagnant growth in ‘left-behind’ places. This article assesses the association between levels and changes in local GDP per capita and interpersonal inequality, and the rise of far-right populism in Europe and in the USA. The analysis—conducted at small region level for Europe and county level for the USA—shows that there are both similarities and differences in the factors connected to populist voting on both sides of the Atlantic. In the USA, neither interpersonal inequality nor economic decline can explain populist support on their own. However, these factors gain significance when considered together with the racial composition of the area. Counties with a large share of white population where economic growth has been stagnant and where inequalities have increased supported Donald Trump. Meanwhile, counties with a similar economic trajectory but with a higher share of minorities shunned populism. In Europe, the most significant factor behind the rise of far-right populism is economic decline. This effect is particularly large in areas with a high share of immigration.
{"title":"Left-behind versus unequal places: interpersonal inequality, economic decline and the rise of populism in the USA and Europe","authors":"A. Rodríguez‐Pose, Javier Terrero-Dávila, N. Lee","doi":"10.1093/jeg/lbad005","DOIUrl":"https://doi.org/10.1093/jeg/lbad005","url":null,"abstract":"\u0000 Economic change over the past 20 years has rendered many individuals and territories vulnerable, leading to greater interpersonal and interterritorial inequality. This rising inequality is seen as a root cause of populism. Yet, there is no comparative evidence as to whether this discontent is the consequence of localised interpersonal inequality or stagnant growth in ‘left-behind’ places. This article assesses the association between levels and changes in local GDP per capita and interpersonal inequality, and the rise of far-right populism in Europe and in the USA. The analysis—conducted at small region level for Europe and county level for the USA—shows that there are both similarities and differences in the factors connected to populist voting on both sides of the Atlantic. In the USA, neither interpersonal inequality nor economic decline can explain populist support on their own. However, these factors gain significance when considered together with the racial composition of the area. Counties with a large share of white population where economic growth has been stagnant and where inequalities have increased supported Donald Trump. Meanwhile, counties with a similar economic trajectory but with a higher share of minorities shunned populism. In Europe, the most significant factor behind the rise of far-right populism is economic decline. This effect is particularly large in areas with a high share of immigration.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":" ","pages":""},"PeriodicalIF":2.9,"publicationDate":"2023-04-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47973750","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We analyse whether and to what extent the quality of regional institutions has a differential effect on firms’ growth driven by heterogeneity in firm value chain positioning. We analyse turnover growth during the period 2010–2013 for a sample of manufacturing firms located in four European countries—France, Germany, Italy and Spain. We distinguish final firms serving end markets from suppliers serving other firms. Our instrumental variable estimates point to high-quality regional institutions enhancing the growth performance of only locally embedded suppliers with operations confined to the own regional market—that is, the ‘weakest’ node of the value chain.
{"title":"Value chain, regional institutions and firm growth in Europe","authors":"G. Cainelli, R. Ganau, A. Giunta","doi":"10.1093/jeg/lbad004","DOIUrl":"https://doi.org/10.1093/jeg/lbad004","url":null,"abstract":"\u0000 We analyse whether and to what extent the quality of regional institutions has a differential effect on firms’ growth driven by heterogeneity in firm value chain positioning. We analyse turnover growth during the period 2010–2013 for a sample of manufacturing firms located in four European countries—France, Germany, Italy and Spain. We distinguish final firms serving end markets from suppliers serving other firms. Our instrumental variable estimates point to high-quality regional institutions enhancing the growth performance of only locally embedded suppliers with operations confined to the own regional market—that is, the ‘weakest’ node of the value chain.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":" ","pages":""},"PeriodicalIF":2.9,"publicationDate":"2023-02-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44750292","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Do electoral incentives affect immigration policies? Exploiting the Italian system for refugees’ reception and data from Italian municipalities, we show that proximity to elections reduces the probability that a municipality applies to host a refugee center by 26%, despite the economic benefits arising from these centers. Low electoral competition and high shares of extreme-right voters drive the effect. Our results are rationalized by a theoretical model and can explain the unequal distribution of refugees across and within countries.
{"title":"Not welcome anymore: the effect of electoral incentives on the reception of refugees","authors":"Matteo Gamalerio, Margherita Negri","doi":"10.1093/jeg/lbad002","DOIUrl":"https://doi.org/10.1093/jeg/lbad002","url":null,"abstract":"Abstract Do electoral incentives affect immigration policies? Exploiting the Italian system for refugees’ reception and data from Italian municipalities, we show that proximity to elections reduces the probability that a municipality applies to host a refugee center by 26%, despite the economic benefits arising from these centers. Low electoral competition and high shares of extreme-right voters drive the effect. Our results are rationalized by a theoretical model and can explain the unequal distribution of refugees across and within countries.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-02-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134905442","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Correction to: ‘Moving On’—investigating inventors’ ethnic origins using supervised learning","authors":"","doi":"10.1093/jeg/lbad003","DOIUrl":"https://doi.org/10.1093/jeg/lbad003","url":null,"abstract":"","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":" ","pages":""},"PeriodicalIF":2.9,"publicationDate":"2023-02-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44352156","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
D. Wójcik, Liam Keenan, Vladímir Pažitka, Michael Urban, Wei Wu
We analyse mergers and acquisitions in the financial sector between 2000 and 2017 to explore the domestic hierarchies of financial centres. Across a sample of 16 countries, we reveal different levels of financial centre primacy and explain how these levels change over time. These findings are analysed through a theoretical framework which integrates the literatures on urban primacy, global and world cities and comparative political economy. Situating our findings at the intersection of these literatures allows us to remain sensitive to geography, history and institutions in our analysis of financial centre primacy. Overall, our results show uneven levels of financial centre primacy around the world and that primate financial centres do not universally increase their dominance over time.
{"title":"Financial centre primacy around the world: international analysis based on mergers and acquisitions data","authors":"D. Wójcik, Liam Keenan, Vladímir Pažitka, Michael Urban, Wei Wu","doi":"10.1093/jeg/lbac036","DOIUrl":"https://doi.org/10.1093/jeg/lbac036","url":null,"abstract":"\u0000 We analyse mergers and acquisitions in the financial sector between 2000 and 2017 to explore the domestic hierarchies of financial centres. Across a sample of 16 countries, we reveal different levels of financial centre primacy and explain how these levels change over time. These findings are analysed through a theoretical framework which integrates the literatures on urban primacy, global and world cities and comparative political economy. Situating our findings at the intersection of these literatures allows us to remain sensitive to geography, history and institutions in our analysis of financial centre primacy. Overall, our results show uneven levels of financial centre primacy around the world and that primate financial centres do not universally increase their dominance over time.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":" ","pages":""},"PeriodicalIF":2.9,"publicationDate":"2023-01-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44578908","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract In this article, we investigate how some MNEs which spread their home culture over time and space to the rest of the world are affecting, in turn, trade flows from home. By selling products embodying cultural information related to their country of origin, those MNEs embrace the role of ambassadors of their home country. We argue that IKEA offers an ideal case to identify a multinational’s culture-promotion effect on trade. We build a dataset on IKEA’s presence in foreign markets between 1995 and 2015 and merge it with disaggregated product level trade between pairs of countries. We find solid evidence of an externality linked to IKEA: a setting of an IKEA new store in a destination increases trade flows by around 2% from Sweden for products that resemble to what the multinational offers (despite being completely unrelated to that multinational). This result is driven primarily by the products identified to encompass a high-cultural content. Other robustness checks and tests seem to be very much consistent with the hypothesis of IKEA promoting the Swedish culture to the world.
{"title":"The culture-promotion effect of multinationals on trade: the IKEA case","authors":"Dylan Bourny, Daniel Mirza, Camélia Turcu","doi":"10.1093/jeg/lbac033","DOIUrl":"https://doi.org/10.1093/jeg/lbac033","url":null,"abstract":"Abstract In this article, we investigate how some MNEs which spread their home culture over time and space to the rest of the world are affecting, in turn, trade flows from home. By selling products embodying cultural information related to their country of origin, those MNEs embrace the role of ambassadors of their home country. We argue that IKEA offers an ideal case to identify a multinational’s culture-promotion effect on trade. We build a dataset on IKEA’s presence in foreign markets between 1995 and 2015 and merge it with disaggregated product level trade between pairs of countries. We find solid evidence of an externality linked to IKEA: a setting of an IKEA new store in a destination increases trade flows by around 2% from Sweden for products that resemble to what the multinational offers (despite being completely unrelated to that multinational). This result is driven primarily by the products identified to encompass a high-cultural content. Other robustness checks and tests seem to be very much consistent with the hypothesis of IKEA promoting the Swedish culture to the world.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":"31 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135013231","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This article measures the effects of workers’ mobility across regions characterised by different productivity levels through the lens of a search and matching model with heterogeneous workers and firms estimated using administrative data. In an application to Italy, the model estimates imply that the relocation of workers to the most productive region boosts employment and output at the country level, reduces inequality and widens productivity gaps. There is an interplay between the sorting of workers across regions and across firms, and migration mitigates the frictions caused by worker–firm sorting. The model allows for the evaluation of general equilibrium effects of place-based policies towards the least productive region. Subsidising the creation of high-technology jobs reduces migration substantially while increasing employment and productivity. In contrast, subsidies for hiring unemployed or high-skill migrants imply indirect effects that limit policy effectiveness.
{"title":"Matching and sorting across regions","authors":"Chiara Lacava","doi":"10.1093/jeg/lbac038","DOIUrl":"https://doi.org/10.1093/jeg/lbac038","url":null,"abstract":"\u0000 This article measures the effects of workers’ mobility across regions characterised by different productivity levels through the lens of a search and matching model with heterogeneous workers and firms estimated using administrative data. In an application to Italy, the model estimates imply that the relocation of workers to the most productive region boosts employment and output at the country level, reduces inequality and widens productivity gaps. There is an interplay between the sorting of workers across regions and across firms, and migration mitigates the frictions caused by worker–firm sorting. The model allows for the evaluation of general equilibrium effects of place-based policies towards the least productive region. Subsidising the creation of high-technology jobs reduces migration substantially while increasing employment and productivity. In contrast, subsidies for hiring unemployed or high-skill migrants imply indirect effects that limit policy effectiveness.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":" ","pages":""},"PeriodicalIF":2.9,"publicationDate":"2023-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43910822","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Lídia Farré, Jordi Jofre-Monseny, Juan Torrecillas
In this article, we investigate the contribution of increasing travel times to the persistent gender gap in labor market participation. In doing so, we estimate the effect of commuting times on the labor supply of men and women in the USA using microdata from the censuses of the last two decades. To address endogeneity concerns, we adopt an instrumental variables approach that exploits the shape of cities as an exogenous source of variation for travel times. Our estimates indicate that a 10-min increase in commuting time decreases the probability of married women participating in the labor market by 4.4 percentage points. In contrast, the estimated effect on men is small and statistically insignificant. When exploring potential mechanisms behind the gender asymmetry in our results, we do not find evidence that differences in labor market productivity within couples contribute to the larger penalty of commuting times on women. However, we do find that the negative effect on women increases with the number of children and is larger among those originating from countries with more gendered social norms. Based on this evidence, we conclude that in a context of increasing commuting costs the presence of gender norms that attribute to women the role of main caregivers may prevent gender convergence.
{"title":"Commuting time and the gender gap in labor market participation","authors":"Lídia Farré, Jordi Jofre-Monseny, Juan Torrecillas","doi":"10.1093/jeg/lbac037","DOIUrl":"https://doi.org/10.1093/jeg/lbac037","url":null,"abstract":"In this article, we investigate the contribution of increasing travel times to the persistent gender gap in labor market participation. In doing so, we estimate the effect of commuting times on the labor supply of men and women in the USA using microdata from the censuses of the last two decades. To address endogeneity concerns, we adopt an instrumental variables approach that exploits the shape of cities as an exogenous source of variation for travel times. Our estimates indicate that a 10-min increase in commuting time decreases the probability of married women participating in the labor market by 4.4 percentage points. In contrast, the estimated effect on men is small and statistically insignificant. When exploring potential mechanisms behind the gender asymmetry in our results, we do not find evidence that differences in labor market productivity within couples contribute to the larger penalty of commuting times on women. However, we do find that the negative effect on women increases with the number of children and is larger among those originating from countries with more gendered social norms. Based on this evidence, we conclude that in a context of increasing commuting costs the presence of gender norms that attribute to women the role of main caregivers may prevent gender convergence.","PeriodicalId":48251,"journal":{"name":"Journal of Economic Geography","volume":"9 1","pages":""},"PeriodicalIF":2.9,"publicationDate":"2022-12-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138529697","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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