- In the Harvard Business Review, Nick Bloom discusses how a lot of inequality is getting driven by differences between firms: “companies are paying more to get more: boosting salaries to recruit top talent or to add workers with sought-after skills. The result is that highly skilled and well-educated workers flock to companies that can afford to offer generous salaries, benefits, and perks — and further fuel their companies’ momentum. Employees in less-successful companies continue to be poorly paid and their companies fall further behind”
- Vox EU piece by Brown, van de Walle and Ravallion summarizing their work in two recent papers on the difficulties in targeting the poor “about three-quarters of underweight women and undernourished children are not found in the poorest 20% of households. This is consistent with evidence of considerable intra-household inequality”
“We propose a model of the household with consumption, production and revealed preference conditions for stability on the marriage market. We define marital instability in terms of the consumption gains to remarrying another individual in the same marriage market, and to being single. We find that a 1 percentage point increase in the wife’s estimated consumption gains from remarriage is significantly associated with a 0.6 percentage point increase in divorce probability in the next three years.”
- In news that delighted me and my cohort this week, apparently people in their 40s are the key to a nation’s productivity, embodying “a good balance of experience and creativity”, and “The higher the ratio of people aged 40-49, the faster the economy tended to increase its output per hour of work”. You’re welcome.
- Duncan Green on what aid agencies need to do to get serious about changing social norms
I have just finished writing up and expanding my recent policy talk on active labor market policies (ALMPs) into a research paper (ungated version) which provides a critical overview of impact evaluations on this topic. While my talk focused more on summarizing a lot of my own work on this topic, for this review paper I looked a lot more into the growing number of randomized experiments evaluating these policies in developing countries. Much of this literature is very new: out of the 24 RCTs I summarize results from in several tables, 16 were published in 2015 or later, and only one before 2011.
I focus on three main types of ALMPs: vocational training programs, wage subsidies, and job search assistance services like screening and matching. I’ll summarize a few findings and implications for evaluations that might be of most interest to our blog readers – the paper then, of course, provides a lot more detail and discusses more some of the implications for policy and for other types of ALMPs.
Happy St Patrick’s Day. In honor of this day:
- Forthcoming in the WBER, Catia Batista and Gaia Narcisco conducted an experiment with immigrants in Ireland to see whether making it easier to communicate with their families changed remitting behavior – they find migrants send more money as a result.
- Thank Guinness: as you sip your pints today, remember that your t-ratios and some of the first blocked small sample experiments were invented by W.S. Gosset (aka Student), who served as Guinness’ Brewer-in-Charge of the Experimental Brewery
Here is a curated round-up of recent research on education in low- and middle-income countries, with a few findings from high-income countries that I found relevant. All are from the last few months, since my last round-up.
If I’m missing recent articles that you’ve found useful, please add them in the comments!