Syndicate content

Labor and Social Protection

Can commuting costs increase welfare? Israeli checkpoints and the ‘Thailandiyas’: Guest post by Alexei Abrahams

This is the third in our series of posts by students on the job market this year.
Puzzling Results:
Economists tend to believe that travel and trade costs reduce welfare. Trade papers like Irwin (2005), Redding & Sturm (2008), Storeygard (2014), and Etkes & Zimring (2014) draw on evidence from the United States, West Germany, sub-Saharan Africa, and the Gaza Strip to support this idea. One might reasonably expect, therefore, that the welfare of Palestinian commuters declined during the Second Palestinian Uprising (2000-2007), when the Israeli army deployed hundreds of roadblocks and checkpoints along the West Bank’s internal road network in order to defend Israeli civilian settlements. Although these obstacles were intended to deter and intercept militants, they had the unintended consequence of delaying Palestinian civilian travel between Palestinian towns, and from Palestinian towns to Israel (B’Tselem (2007), World Bank (2007)). Two World Bank working papers (Cali & Miaari (2014), van der Weide et al (2014)) take advantage of this ‘natural experiment’ to study the effects of travel costs on commuters’ welfare, finding that economic outcomes of Palestinians declined in the face of obstacle deployment. My job market paper, however, finds a very different result: while obstacles reduced the welfare of laborers in some towns, laborers from other towns actually benefited from obstacles. The salient outcome of obstacle deployment was not welfare reduction, but rather welfare inequality.

Saving your way to a better state

Markus Goldstein's picture
People in developing countries, much like people everywhere, save.   And in Sub-Saharan Africa, beyond banks, folks save through a bunch of techniques -- ranging from the less sophisticated under the mattress savings to the more complex community-based rotating savings and credit associations (ROSCAs).    Given this plethora of savings options, one might wonder if an NGO program that set up savings groups but injected no capital or lockboxes or any other capital intensive intervention might make a

Experimentally testing a Job Matching Service and explaining high educated unemployment in Jordan

David McKenzie's picture
In 2010, unemployment rates for Jordanian men and women between the ages of 22 to 26 with a post-secondary degree were 19 percent and 47 percent, respectively. The transition period from graduating university to stable employment for youth who do not immediately find a job is 33 months on average. This problem of educated unemployed is pervasive in many countries in MENA, and raises the question of why the labor market doesn’t clear for educated youth?

When bad people do good surveys

Markus Goldstein's picture
So there I was, a graduate student doing my PhD fieldwork.    In the rather hot office at the University of Ghana, I was going through questionnaire after questionnaire checking for consistency, missed questions and other dimensions of quality.   All of a sudden I saw a pattern:  in the time allocation questions, men in one village seemed to be doing the exact same things, for the same amount of time, on two very different days of the week.  
 

Confusing a treatment for a cure

Berk Ozler's picture
A treatment is an instance of treating someone, say, medically. A cure ends a problem. Sometimes, the treatment is a cure. Other times, it just keeps the problem under control without curing it: if you remove the treatment, the problem comes back…
 

Rethinking the household: the impacts of transfers

Markus Goldstein's picture
Two weeks ago, I blogged about some productive impacts of cash transfer programs.   For these effects, as well as the myriad other blog posts and papers on this topic out there, a key point is that the benefits of these transfers extend well beyond the actual individual recipient of the transfer.   
 

Health effects of non-health programs

Berk Ozler's picture

The previous post in this blog discussed the positive dynamic effects of conditional cash transfer (CCT) programs in Mexico and Nicaragua – in particular on asset accumulation and the incidence of entrepreneurship by the rural poor.

Pages