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I study the effect of educational policy in the host economy on human capital accumulation and growth. The analysis is performed in a two-country growth model with endogenous fertility. I show that providing additional free educational services for immigrant children can increase the attractiveness of migration for less skilled individuals, which can outweigh the positive effect of this policy on the acquisition of human capital. In contrast, imposing taxes on immigrants in the host country reduces low-skilled immigration flows and has the potential to promote human capital accumulation if the resulting revenues are channeled into educational subsidies.
This study examines the heterogeneous effects of economic freedom on human capital accumulation across 83 developing countries between 2000 and 2018. Employing a range of econometric techniques including quantiles via moments regression, the analysis explores both average and distributional impacts of economic freedom on human capital, disaggregated by gender and employment status. The findings reveal that economic freedom positively influences human capital development, with stronger effects in countries with lower human capital levels. Among the five dimensions of economic freedom, freedom to trade internationally, legal systems, and property rights are most strongly associated with human capital accumulation. The results also indicate that women and employed individuals benefit more from economic freedom, highlighting its potential to reduce gender disparities and enhance labour productivity. These findings underscore the importance of institutional reforms promoting economic freedom as a pathway to human capital development in developing economies.
We study distributional preferences in adolescent peer networks. Using incentivized choices between allocations for themselves and a passive agent, children are classified into efficiency-loving, inequality-loving, inequality-averse, and spiteful types. We find that pairs of students who report a friendship link are more likely to exhibit the same preference type than other students who attend the same school. The relation between types is almost completely driven by inequality-loving and spiteful types. The role of peer networks in explaining distributional preferences goes beyond network composition effects. A low rank in academic performance and a central position within the network relate positively to a higher likelihood of being classified as spiteful. Hence, social hierarchies seem to be correlated with distributional preference types.
We examine the effects of mining booms in Indonesia on labor market outcomes using exogenous price changes and 452 mines. We do this using labor force surveys between the years 1998 and 2011, and four waves of individual panel data between 1997 and 2014. Surprisingly, female incomes grow during mining booms, not because women work more, but because their work moves from the agricultural to the service sector where paid work is more common. Men experience mixed labor market changes. High average mining incomes attract male labor to mining districts, allowing for some adjustment of labor supply to demand. Suggestive evidence also shows that informal work increases marginally for men, potentially in auxiliary mining jobs. A male dominated industry that supports economic opportunities for women can unexpectedly benefit women as well.
We use childhood exposure to disasters as a natural experiment inducing variations in adulthood outcomes. Following the fetal origin hypothesis, we hypothesize that children from households with greater famine exposure will have poorer health outcomes. Employing a unique dataset from Bangladesh, we test this hypothesis for the 1974–75 famine that was largely caused by increased differences between the price of coarse rice and agricultural wages, together with the lack of entitlement to foodgrains for daily wage earners. People from northern regions of Bangladesh were unequally affected by this famine that spanned several months in 1974 and 1975. We find that children surviving the 1974–75 famine have lower health outcomes during their adulthood. Due to the long-lasting effects of such adverse events and their apparent human capital and growth implications, it is important to enact and enforce public policies aimed at ameliorating the immediate harms of such events through helping the poor.
Identifying the impact of remittances on household members remaining behind is difficult due to selection into migration. In this paper, we exploit an unexpected embargo on Qatar, the second major destination among Nepali migrants. Using longitudinal data on about 1,500 Nepali households with migrants prior to the embargo, we assess how this shock translates into changes in remittances and development outcomes. We find a 56% reduction in remittances for households with a migrant in Qatar. At least in the months immediately after the shock, such a fall in remittances does not seem to translate into recipient household's welfare. However, we cannot exclude that such effect might materialize in the medium run. That is particularly true for poor and credit-constrained households, especially vulnerable to the remittance windfall and lacking the ability to move their migrants or other household members to other destinations.
This paper, building on new archival research and the social table method, presents comprehensive estimates of income inequality in Mexico in 1895, 1910, 1930 and 1940. Inequality grew from 1895 to 1910, driven by economic expansion within the context of an oligarchic economy. While real income increased for the lower classes during this period, the main beneficiaries were large landowners and entrepreneurs. In the revolutionary period from 1910 to 1930 inequality decreased especially as a result of land reforms, benefitting peasants at the expense of the large landowners. However, the economic structure of the country was not fundamentally changed, and in the 1930s inequality raised as incomes of peasants and those in the informal sector fell behind manufacturing and other high-earning sectors. The Mexican case shows the complex interaction of economics, demography and politics in determining economic inequality.
This study examines disparities in health and nutrition among native and Syrian refugee children in Turkey. To understand the need for targeted programs addressing child well-being among the refugee population, we analyze the Turkey Demographic and Health Survey (TDHS) – which provides representative data for a large refugee and native population. We find no evidence of a difference in infant or child mortality between refugee children born in Turkey and native children. However, refugee infants born in Turkey have lower birthweight and age-adjusted weight and height than native infants. When we account for a rich set of birth and socioeconomic characteristics that display substantial differences between natives and refugees, the gaps in birthweight and age-adjusted height persist, but the gap in age-adjusted weight disappears. Moreover, the remaining gaps in birthweight and anthropometric outcomes are limited to the lower end of the distribution. The observed gaps are even larger for refugee infants born before migrating to Turkey, suggesting that the remaining deficits reflect conditions in the source country before migration rather than deficits in access to health services within Turkey. Finally, comparing children by the country of their first trimester, we find evidence of the detrimental effects of stress exposure during pregnancy.
Following the most dramatic migration episode of the 21st century, Turkey hosted the largest number of Syrian refugees in the world. This paper assesses the impact of the arrival of Syrian refugees on the Turkish children's health, with a focus on height – a standard nutritional outcome. Accounting for the endogenous choice of immigrant location, our results show that Turkish children residing in provinces with a large share of refugees exhibit a significant improvement in their height as compared to those living in provinces with fewer refugees. Against other potential channels, a refugee-induced increase in maternal unemployment and the associated increase in maternal care seem to explain the observed positive effect on children's health.
Existing empirical literature provides converging evidence that selective emigration enhances human capital accumulation in the world's poorest countries. However, the within-country distribution of such brain gain effects has received limited attention. Focusing on Senegal, we provide evidence that the brain gain mechanism primarily benefits the wealthiest regions that are internationally connected and have better access to education. Conversely, human capital responses are negligible in regions lacking international connectivity, and even negative in better connected regions with inadequate educational opportunities. These results extend to internal migration, implying that highly vulnerable populations are trapped in the least developed areas.
This paper examines child labor response to parental education. Prior studies present anecdotal evidence with a causal interpretation of this relationship rarely explored. Hence, conditional on a range of parental characteristics and multigenerational co-residence, I use as a set of instruments grandparents’ educational attainment to exploit plausibly exogenous variation in parents’ schooling. I generally find evidence of a negative parental education impact on child labor outcomes. The effect of maternal education on household farm work, however, is not significant. With respect to potential mechanisms, the results suggest that engagement in nonfarm employment pursuits among educated parents may mediate these effects.
This research note documents the revision of a dataset of real wages in Argentina, Brazil, Chile, Colombia, Mexico and Venezuela during 1920-2011. This resource was originally published by this journal in Astorga (2017). The revision affected all eighteen basic wage series plus six weighted-average series, with varying degrees of modification. The revised dataset is made available as supplementary material. Regardless of changes to the data, the key findings and conclusions of the 2017 paper still hold.
The purpose of this paper is to analyse the effects of natural resources on income inequality conditional on economic complexity in 111 developed and developing countries from 1995 to 2016. The system-GMM results show that economic complexity reverses the positive effects of natural resource dependence on income inequality. Furthermore, results are robust to the distinction between dependence on point resources (fossil fuels, ores, and metals), dependence on diffuse resources (agricultural raw material), and resource abundance. Finally, there are significant differences between countries, depending on the level of ethnic fragmentation and democracy.
How do deported migrants engage in civic and political life after being forcibly returned to their home countries? Do experiences during the migration journey impact how deportees (re)engage? We explore how extortion experienced during migration alters political and civic engagement preferences. We utilize a multi-method approach combining original survey data of Guatemalans deported from the United States and a series of qualitative deportee interviews. We find that extortion during migration has a significant direct effect on increased citizen engagement. Economic hardship exacerbated by extortion may mediate this effect. Overall, extortion experienced while migrating has long-term financial consequences for deportees, with implications for their reintegration and the broader health of civic institutions in their home countries.
Sri Lanka has a history of successfully managing communicable diseases by utilising its extensive public healthcare network of community clinics and public hospitals. This article makes use of Job Demands-Resources theory (JD-R) to examine the impact of COVID-19 on nurses’ working conditions in public and private hospitals in Sri Lanka. Prior to the COVID-19 pandemic, nurses’ job demands on public hospital wards included long working hours, limited workplace autonomy, minimal medical resources and high workloads caused by understaffing. Private hospital nurses experienced pressure from patients and their families to provide them with discounts on medical bills. Nurses allocated to work on COVID-19 wards experienced additional physical job demands from wearing personal protective equipment (PPE) for lengthy periods on hospital wards in a humid climate. Nurses on COVID-19 wards also experienced increased anxiety that they could transmit the disease to family members. While nurses experienced job resources such as social support from nursing supervisors and other nurses, they reported receiving minimal training in the provision of healthcare to COVID-19 patients. This combination of high job demands and low job resources increased the levels of exhaustion and mental distress experienced by many nurses working on COVID-19 hospital wards.
This paper documents the patterns and correlates of retirement in China using a nationally representative survey, the China Health and Retirement Longitudinal Study. After documenting stark differences in retirement ages between urban and rural residents, the paper shows that China's urban residents retire earlier than workers in many Organization for Economic Co-operation and Development countries and that rural residents continue to work until advanced ages. Differences in access to generous pensions and economic resources explain much of the urban–rural difference in retirement rates. The paper suggests that reducing disincentives created by China's Urban Employee Pension system, improving health status, providing childcare and elder care support may all facilitate longer working lives. Given spouse preferences for joint retirement, creating incentives for women to retire later may facilitate longer working lives for both men and women.
Coral bleaching is associated with large income shocks and a substantial decrease in protein consumption among the affected fishery households in Indonesia [Chaijaroen (2019) Long-lasting income shocks and adaptations: evidence from coral bleaching in Indonesia. Journal of Development Economics136, 119–136]. According to the health and economics literature, early childhood exposures to shocks such as those from coral bleaching can have long-lasting effects on health, schooling, and other later-life outcomes. This paper explores how the mass coral bleaching in 1998 affected household decisions on fertility and child development. Using the Indonesian Family Life Survey (IFLS) and a triple differences approach, results from 2000 suggest an increase in fertility and an increased likelihood of severe childhood stunting among the affected households. For comparison, rainfall shocks are associated with a decrease in fertility and smaller adverse effects on child health and schooling outcomes. This study suggests that the effects of coral bleaching might have been underestimated, and our findings yield more targeted policy recommendations on climate shock mitigation.
Migration is a common means of adaptation to weather shocks. Previous research has identified heterogeneous effects according to age, sex, and wealth, but little is still known about how marriage-related institutions affect such migration. Relying on a quasi-experimental identification strategy, we analyze marriage- and work-related migration in Malawi following large droughts, separating the effects for female and male migrants according to different age groups. The analysis based on stated motives of migration reveals marginal decreases in marriage-related migration among girls, but increases in marriage-related migration within districts for women in older age groups. We also find large increases in work-related between-district migration for boys, and to a smaller extent also for girls following severe drought. The results add to the evidence of the potentially adverse effects of migration as a coping mechanism following drought when other means of insurance do not exist.
This paper addresses a question which is fundamental to the perceived legitimacy of the distribution of resources today: to what extent does unfairness in how assets came to be acquired in the past affect incomes and wealth now? To answer that question requires two things: first, a principle to determine what is, and what is not, a just acquisition of wealth or a just source of income; second, a means of using that principle to estimate what fraction of wealth and income is now unjust. I use a principle put forward by Robert Nozick to provide the first of these things and then use a model of wealth accumulation and economic growth to illustrate its implications for the scale of unfairness today. The greater is depreciation of assets, the higher are saving rates out of labour income and the less important is human capital the more transient are the effects of past economic injustices. I use data on the perceived unfairness of economic outcomes to see if there is any evidence that those features which the model implies should influence the durability of injustice help explain cross-country differences in attitudes towards unfairness.
This study looks at human capital in Spain during the early stages of modern economic growth. We have assembled a new dataset for age-heaping and literacy in Spain with information about men and women from six population censuses and forty-nine provinces between 1877 and 1930. Our results show that, although age-heaping was less prevalent during the second half of the 19th century than previously thought, it did not decline until the early 20th century. Given that literacy increased throughout the whole period, our study thus unveils stark differences between age-heaping and literacy, which raises further questions regarding sources, methods and interpretation.