Pub Date : 2023-07-01DOI: 10.1016/j.jue.2023.103569
Catarina Branco , Dirk C. Dohse , João Pereira dos Santos , José Tavares
We study the firm-level responses to a substantial increase in transportation costs in the wake of a quasi-experiment that introduced tolls in a subset of Portuguese highways. Exploiting a unique dataset encompassing the universe of Portuguese private firms, we find that the introduction of tolls caused a substantial decrease in turnover (%) and productivity (%) in treated firms vis-à-vis firms in the comparison group. In response to the tolls, firms substantially cut employment-related expenses and purchases of other inputs. Labor costs were reduced by both employment cuts and a decrease in average wages. While firms did not increase inventory, there is some evidence for increased firm exit, in particular by firms in tradables sectors.
{"title":"Nobody’s gonna slow me down? The effects of a transportation cost shock on firm performance and behavior","authors":"Catarina Branco , Dirk C. Dohse , João Pereira dos Santos , José Tavares","doi":"10.1016/j.jue.2023.103569","DOIUrl":"10.1016/j.jue.2023.103569","url":null,"abstract":"<div><p>We study the firm-level responses to a substantial increase in transportation costs in the wake of a quasi-experiment that introduced tolls in a subset of Portuguese highways. Exploiting a unique dataset encompassing the universe of Portuguese private firms, we find that the introduction of tolls caused a substantial decrease in turnover (<span><math><mrow><mo>−</mo><mn>10.2</mn></mrow></math></span>%) and productivity (<span><math><mrow><mo>−</mo><mn>4.3</mn></mrow></math></span>%) in treated firms <em>vis-à-vis</em> firms in the comparison group. In response to the tolls, firms substantially cut employment-related expenses and purchases of other inputs. Labor costs were reduced by both employment cuts and a decrease in average wages. While firms did not increase inventory, there is some evidence for increased firm exit, in particular by firms in tradables sectors.</p></div>","PeriodicalId":48340,"journal":{"name":"Journal of Urban Economics","volume":"136 ","pages":"Article 103569"},"PeriodicalIF":6.3,"publicationDate":"2023-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41648957","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-26DOI: 10.1016/j.jue.2023.103574
Avichal Mahajan
This paper examines the impact of the Interstate Highway System, constructed between 1950 and 1990 in the United States (US), on racial segregation. To provide causal estimates, I use the 1947 plan of the Interstate Highway System, a variant of the 1947 plan that connects city center pairs in this plan through shortest-distance and exploration routes in the 16th-19th century, as the instruments for actual highways built. Empirical results from census tracts in the US show that the construction of highways led to sorting along racial lines. I find strong evidence of heterogeneous effects based on the initial black population. I do not find any impact of highways on neighborhoods which have a lower share of initial black population. However, there is an increase in the share of the black population for neighborhoods located in close proximity to highways, and which have a higher share of the initial black population. This increase is driven by the white population moving out and black population moving into these neighborhoods. I demonstrate that whites that moved out of neighborhoods, now commute to work, made possible due to access provided by highways. These residents were on average better educated and had a higher income than the residents moving into the neighborhoods. The reasons for this movement are disamenities emanating from highways, and racial preferences for social interactions. Finally, I show that this relationship between highways and segregation is also observed at the aggregate level. Empirical estimates indicate that one new highway passing through the central city leads to 0.02 units increase in the dissimilarity index for the metropolitan area.
{"title":"Highways and segregation","authors":"Avichal Mahajan","doi":"10.1016/j.jue.2023.103574","DOIUrl":"10.1016/j.jue.2023.103574","url":null,"abstract":"<div><p>This paper examines the impact of the Interstate Highway System, constructed between 1950 and 1990 in the United States (US), on racial segregation. To provide causal estimates, I use the 1947 plan of the Interstate Highway System, a variant of the 1947 plan that connects city center pairs in this plan through shortest-distance and exploration routes in the 16th-19th century, as the instruments for actual highways built. Empirical results from census tracts in the US show that the construction of highways led to sorting along racial lines. I find strong evidence of heterogeneous effects based on the initial black population. I do not find any impact of highways on neighborhoods which have a lower share of initial black population. However, there is an increase in the share of the black population for neighborhoods located in close proximity to highways, and which have a higher share of the initial black population. This increase is driven by the white population moving out and black population moving into these neighborhoods. I demonstrate that whites that moved out of neighborhoods, now commute to work, made possible due to access provided by highways. These residents were on average better educated and had a higher income than the residents moving into the neighborhoods. The reasons for this movement are disamenities emanating from highways, and racial preferences for social interactions. Finally, I show that this relationship between highways and segregation is also observed at the aggregate level. Empirical estimates indicate that one new highway passing through the central city leads to 0.02 units increase in the dissimilarity index for the metropolitan area.</p></div>","PeriodicalId":48340,"journal":{"name":"Journal of Urban Economics","volume":"141 ","pages":"Article 103574"},"PeriodicalIF":6.3,"publicationDate":"2023-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0094119023000438/pdfft?md5=103f3c070976279af07f604a8e5ec842&pid=1-s2.0-S0094119023000438-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49192069","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-05-01DOI: 10.1016/j.jue.2023.103547
Gedeão Locks , Josselin Thuilliez
In France, childless adults younger than 25 face hard-to-meet eligibility conditions to enroll in the minimum income program. The restrictive requirements generate a “jump” in the number of recipients at ages around 25. We use a Regression Discontinuity (RD) design to assess the impact of the French minimum income program (RSA) on users of accommodation and meal distribution services. We find that the RSA benefit reduces the homelessness rate by 20% among young adults aged 22 to 27. This result is driven by new RSA recipients who have started paying partial rent to third parties, and the probability of becoming a regular tenant increases after age 26. We simulate the effects of lowering the program’s minimum age eligibility on the probability of being homeless. Our findings suggest that in programs directed at homeless individuals, around 60% of expenditures are offset by savings in social assistance costs to the homeless.
{"title":"The impact of minimum income on homelessness: Evidence from France","authors":"Gedeão Locks , Josselin Thuilliez","doi":"10.1016/j.jue.2023.103547","DOIUrl":"10.1016/j.jue.2023.103547","url":null,"abstract":"<div><p>In France, childless adults younger than 25 face hard-to-meet eligibility conditions to enroll in the minimum income program. The restrictive requirements generate a “jump” in the number of recipients at ages around 25. We use a Regression Discontinuity (RD) design to assess the impact of the French minimum income program (RSA) on users of accommodation and meal distribution services. We find that the RSA benefit reduces the homelessness rate by 20% among young adults aged 22 to 27. This result is driven by new RSA recipients who have started paying partial rent to third parties, and the probability of becoming a regular tenant increases after age 26. We simulate the effects of lowering the program’s minimum age eligibility on the probability of being homeless. Our findings suggest that in programs directed at homeless individuals, around 60% of expenditures are offset by savings in social assistance costs to the homeless.</p></div>","PeriodicalId":48340,"journal":{"name":"Journal of Urban Economics","volume":"135 ","pages":"Article 103547"},"PeriodicalIF":6.3,"publicationDate":"2023-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48246235","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-05-01DOI: 10.1016/j.jue.2023.103557
Dario Diodato , Ricardo Hausmann , Frank Neffke
How does return migration from the US to Mexico affect local workers? Return migrants increase the local labor supply, potentially hurting local workers. However, having been exposed to a more advanced U.S. economy, they may also carry human capital that benefits non-migrants. Using an instrument based on involuntary return migration, we find that, whereas workers who share returnees’ occupations experience a fall in wages, workers in other occupations see their wages rise. These effects are, however, transitory and restricted to the city-industry receiving the returnees. In contrast, returnees permanently alter a city’s long-run industrial composition, by raising employment levels in the local industries that hire them.
{"title":"The impact of return migration on employment and wages in Mexican cities","authors":"Dario Diodato , Ricardo Hausmann , Frank Neffke","doi":"10.1016/j.jue.2023.103557","DOIUrl":"10.1016/j.jue.2023.103557","url":null,"abstract":"<div><p>How does return migration from the US to Mexico affect local workers? Return migrants increase the local labor supply, potentially hurting local workers. However, having been exposed to a more advanced U.S. economy, they may also carry human capital that benefits non-migrants. Using an instrument based on involuntary return migration, we find that, whereas workers who share returnees’ occupations experience a fall in wages, workers in other occupations see their wages rise. These effects are, however, transitory and restricted to the city-industry receiving the returnees. In contrast, returnees permanently alter a city’s long-run industrial composition, by raising employment levels in the local industries that hire them.</p></div>","PeriodicalId":48340,"journal":{"name":"Journal of Urban Economics","volume":"135 ","pages":"Article 103557"},"PeriodicalIF":6.3,"publicationDate":"2023-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44391669","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-05-01DOI: 10.1016/j.jue.2023.103548
Abhimanyu Gupta , Jonathan Halket
We use archaeological data from ancient settlements of three different historical eras on a Greek island to construct novel measures of consumption. Using these, we show that the shares of high-quality consumption goods were relatively more concentrated closer to the center of nucleated settlements as compared to low-quality consumption goods. There is no such pattern in a placebo settlement. In this unique setting, these quality gradients may reflect differences in household consumption baskets across these settlements. We argue that some alternative, trade or production based hypotheses for such gradients can be weakly ruled out based on our data and archaeological sources.
{"title":"Household sorting in an ancient setting","authors":"Abhimanyu Gupta , Jonathan Halket","doi":"10.1016/j.jue.2023.103548","DOIUrl":"https://doi.org/10.1016/j.jue.2023.103548","url":null,"abstract":"<div><p>We use archaeological data from ancient settlements of three different historical eras on a Greek island to construct novel measures of consumption. Using these, we show that the shares of high-quality consumption goods were relatively more concentrated closer to the center of nucleated settlements as compared to low-quality consumption goods. There is no such pattern in a placebo settlement. In this unique setting, these quality gradients may reflect differences in household consumption baskets across these settlements. We argue that some alternative, trade or production based hypotheses for such gradients can be weakly ruled out based on our data and archaeological sources.</p></div>","PeriodicalId":48340,"journal":{"name":"Journal of Urban Economics","volume":"135 ","pages":"Article 103548"},"PeriodicalIF":6.3,"publicationDate":"2023-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49857316","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-05-01DOI: 10.1016/j.jue.2023.103543
Teng Li , Panle Jia Barwick , Yongheng Deng , Xinfei Huang , Shanjun Li
Based on mobile phone records for 71 million users and location tracking information for one million users over almost three years, this study examines the labor market impacts of the COVID-19 pandemic in China’s Guangdong province, whose GDP is larger than that of all but the top 12 countries in the world. Using a standard difference-in-differences framework, our analysis shows dramatic and protracted effects of the pandemic on the labor market: it increased unemployment by 72% and unemployment benefits claims by 57% even after the full reopening in 2020 relative to their levels in the same period in 2019. The impact was also highly heterogeneous, with women, workers older than 40, and migrants being more affected. Cities that rely more on export or that have a higher share of the hospitality industry in GDP but a lower share of the finance and healthcare industries experienced a more pronounced increase in unemployment. The lingering impact likely reflects the global transmission of the pandemic’s effects through the supply chain and trade channels.
{"title":"The COVID-19 pandemic and unemployment: Evidence from mobile phone data from China","authors":"Teng Li , Panle Jia Barwick , Yongheng Deng , Xinfei Huang , Shanjun Li","doi":"10.1016/j.jue.2023.103543","DOIUrl":"10.1016/j.jue.2023.103543","url":null,"abstract":"<div><p>Based on mobile phone records for 71 million users and location tracking information for one million users over almost three years, this study examines the labor market impacts of the COVID-19 pandemic in China’s Guangdong province, whose GDP is larger than that of all but the top 12 countries in the world. Using a standard difference-in-differences framework, our analysis shows dramatic and protracted effects of the pandemic on the labor market: it increased unemployment by 72% and unemployment benefits claims by 57% even after the full reopening in 2020 relative to their levels in the same period in 2019. The impact was also highly heterogeneous, with women, workers older than 40, and migrants being more affected. Cities that rely more on export or that have a higher share of the hospitality industry in GDP but a lower share of the finance and healthcare industries experienced a more pronounced increase in unemployment. The lingering impact likely reflects the global transmission of the pandemic’s effects through the supply chain and trade channels.</p></div>","PeriodicalId":48340,"journal":{"name":"Journal of Urban Economics","volume":"135 ","pages":"Article 103543"},"PeriodicalIF":6.3,"publicationDate":"2023-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9988403/pdf/","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"9419630","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-05-01DOI: 10.1016/j.jue.2023.103544
Gabriel Loumeau
This paper proposes a novel approach to evaluate location decisions for public facilities. The approach addresses, not only the standard distance-minimizing problem, but also the endogenous location decisions of individuals. The paper develops a quantifiable general equilibrium model with endogenous (residential and commercial) densities, housing prices, commutes to work, as well as to public/private facilities. The framework is applied to the case of secondary schools in Paris’ greater region at a 1km geographical scale. The analysis reveals that the observed location decisions made between 2001 and 2015 underestimate the endogenous reaction of individuals. A more decentralized strategy is predicted to increase welfare growth by 10 percent, reduce density in Paris’ center, and shorten commuting times to school globally.
{"title":"Locating Public Facilities: Theory and Micro Evidence from Paris","authors":"Gabriel Loumeau","doi":"10.1016/j.jue.2023.103544","DOIUrl":"https://doi.org/10.1016/j.jue.2023.103544","url":null,"abstract":"<div><p>This paper proposes a novel approach to evaluate location decisions for public facilities. The approach addresses, not only the standard distance-minimizing problem, but also the endogenous location decisions of individuals. The paper develops a quantifiable general equilibrium model with endogenous (residential and commercial) densities, housing prices, commutes to work, as well as to public/private facilities. The framework is applied to the case of secondary schools in Paris’ greater region at a 1km<span><math><msup><mrow></mrow><mn>2</mn></msup></math></span> geographical scale. The analysis reveals that the observed location decisions made between 2001 and 2015 underestimate the endogenous reaction of individuals. A more decentralized strategy is predicted to increase welfare growth by 10 percent, reduce density in Paris’ center, and shorten commuting times to school globally.</p></div>","PeriodicalId":48340,"journal":{"name":"Journal of Urban Economics","volume":"135 ","pages":"Article 103544"},"PeriodicalIF":6.3,"publicationDate":"2023-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49857315","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-05-01DOI: 10.1016/j.jue.2023.103568
Kangzhe Ding, R. Itoh
{"title":"The impact of the school admission restriction policy on the housing market in Shanghai","authors":"Kangzhe Ding, R. Itoh","doi":"10.1016/j.jue.2023.103568","DOIUrl":"https://doi.org/10.1016/j.jue.2023.103568","url":null,"abstract":"","PeriodicalId":48340,"journal":{"name":"Journal of Urban Economics","volume":" ","pages":""},"PeriodicalIF":6.3,"publicationDate":"2023-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42005996","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-03-24DOI: 10.1016/j.jue.2023.103541
Leah Boustan , Christine Cai , Tammy Tseng
Asian Americans are the fastest-growing racial group in the US but we know little about how Asian immigration has affected cities, neighborhoods and schools. This paper studies white flight from Asian arrivals in high-socioeconomic-status suburban Californian school districts from 2000–2016 using initial settlement patterns and national immigrant flows to instrument for entry. We find that, as Asian students arrive, white student enrollment declines in these higher-income suburbs. These patterns cannot be fully explained by racial animus, housing prices, or correlations with Black/Hispanic arrivals. Parental fears of academic competition may play a role.
{"title":"JUE Insight: White flight from Asian immigration: Evidence from California Public Schools","authors":"Leah Boustan , Christine Cai , Tammy Tseng","doi":"10.1016/j.jue.2023.103541","DOIUrl":"10.1016/j.jue.2023.103541","url":null,"abstract":"<div><p>Asian Americans are the fastest-growing racial group in the US but we know little about how Asian immigration has affected cities, neighborhoods and schools. This paper studies white flight from Asian arrivals in high-socioeconomic-status suburban Californian school districts from 2000–2016 using initial settlement patterns and national immigrant flows to instrument for entry. We find that, as Asian students arrive, white student enrollment declines in these higher-income suburbs. These patterns cannot be fully explained by racial animus, housing prices, or correlations with Black/Hispanic arrivals. Parental fears of academic competition may play a role.</p></div>","PeriodicalId":48340,"journal":{"name":"Journal of Urban Economics","volume":"141 ","pages":"Article 103541"},"PeriodicalIF":6.3,"publicationDate":"2023-03-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43238326","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-03-22DOI: 10.1016/j.jue.2023.103542
devin michelle bunten , Ellen Fu , Lyndsey Rolheiser , Christopher Severen
How have the longer journeys to work faced by Black commuters evolved in the United States over the last four decades? Black commuters spent 49 more minutes commuting per week in 1980 than White commuters; this difference declined to 22 minutes per week in 2019. Two factors account for the majority of the difference: Black workers are more likely to commute by transit, and Black workers make up a larger share of the population in cities with long average commutes. Increases in car commuting by Black workers account for nearly one quarter of the decline in the racialized difference in commute times between 1980 and 2019. Today, commute times have mostly converged (conditional on observables) for car commuters in small- and mid-sized cities. In contrast, differential job access today drives persistent differences of commute times, particularly in large, congested, and expensive cities.
{"title":"The Problem Has Existed over Endless Years: Racialized Difference in Commuting, 1980–2019","authors":"devin michelle bunten , Ellen Fu , Lyndsey Rolheiser , Christopher Severen","doi":"10.1016/j.jue.2023.103542","DOIUrl":"10.1016/j.jue.2023.103542","url":null,"abstract":"<div><p>How have the longer journeys to work faced by Black commuters evolved in the United States over the last four decades? Black commuters spent 49 more minutes commuting per week in 1980 than White commuters; this difference declined to 22 minutes per week in 2019. Two factors account for the majority of the difference: Black workers are more likely to commute by transit, and Black workers make up a larger share of the population in cities with long average commutes. Increases in car commuting by Black workers account for nearly one quarter of the decline in the racialized difference in commute times between 1980 and 2019. Today, commute times have mostly converged (conditional on observables) for car commuters in small- and mid-sized cities. In contrast, differential job access today drives persistent differences of commute times, particularly in large, congested, and expensive cities.</p></div>","PeriodicalId":48340,"journal":{"name":"Journal of Urban Economics","volume":"141 ","pages":"Article 103542"},"PeriodicalIF":6.3,"publicationDate":"2023-03-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43910331","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}