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31. Oh Mother: The Neglected Impact of School Disruptions

Author:
David Jaume and Alexander Willén
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:
Temporary school closures (TSC) represent a major challenge to policymakers across the globe due to their potential impact on instructional time and student achievement. A neglected but equally important question relates to how such closures affect the labor market behavior of parents. This paper provides novel evidence on the effect of temporary school closures on parental labor market behavior, exploiting the prevalence of primary school teacher strikes across time and provinces in Argentina. We find clear evidence that temporary school closures negatively impact the labor market participation of mothers, in particular lower-skilled mothers less attached to the labor force and mothers in dual-income households who face a lower opportunity cost of dropping out of the labor force. This effect translates into a statistically significant and economically meaningful reduction in labor earnings: the average mother whose child is exposed to ten days of TSCs suffers a decline in monthly labor earnings equivalent to 2.92% of the mean. While we do not find any effects among fathers in general, fathers with lower predicted earnings than their spouses also experience negative labor market effects. This suggests that the parental response to TSCs depend, at least in part, on the relative income of each parent. A back-of-the-envelope calculation suggest that the aggregate impact of TSCs on annual parental earnings is more than $113 million, and that the average mother would be willing to forego 1.6 months of labor earnings in order to ensure that there are no TSCs while her child is in primary school.
Topic:
Economics, Education, Markets, Political Economy, and Labor Issues
Political Geography:
United States

32. Intra-Household Inequality and Child Welfare in Argentina

Author:
Miriam Berges, Federico Perali, Martina Menon, and Lucía Echeverria
Publication Date:
01-2019
Content Type:
Working Paper
Institution:
Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:
Are two parents and single parents allocating household resources to children in the same way? Which factors affect intra-household inequality? Do mothers re-distribute more income to children as they are more empowered? We focus on child welfare in the context of two parent and single parent families, which is relevant for policy recommendation. We model households behavior in a collective framework, which allows us to understand the rule governing the allocation process between adults and children. Using consumption data from Argentina from three consecutive expenditures surveys (1996, 2004 and 2012) we analyze intra-household behavior over three different socio-economic contexts. We estimate a collective quadratic demand system following a structural approach to identify the fraction of total household expenditure that is devoted to children and adults, exploiting the observability of assignable goods. We provide the first evidence of intra-household inequality and individual poverty levels for Argentina. Our results indicate that family structure matters in the intra-household distribution. We find a positive gender bias in expenditure when children are females for both types of families, and we document that children fare better when mothers have a higher bargaining power in the allocation process, measured by their employment status. Further, we find several features of intra-household behavior which are persistent in time.
Topic:
Economics, Political Economy, Children, Income Inequality, Child Poverty, and Family
Political Geography:
Argentina and Latin America

33. Formal Employment and Organized Crime: Regression Discontinuity Evidence from Colombia

Author:
Jorge Tamayo, Anant Nyshadham, Carlos Medina, and Gaurav Khanna
Publication Date:
08-2019
Content Type:
Working Paper
Institution:
Empirical Studies of Conflict Project (ESOC)
Abstract:
Canonical models of crime emphasize economic incentives. Yet, causal evidence of sorting into criminal occupations in response to individual-level variation in incentives is limited. We link administrative socioeconomic microdata with the universe of arrests in Medellίn over a decade. We exploit exogenous variation in formal-sector employment around a socioeconomic-score cutoff, below which individuals receive benefits if not formally employed, to test whether a higher cost to formal-sector employment induces crime. Regression discontinuity estimates show this policy generated reductions in formal-sector employment and a corresponding spike in organized crime, but no effects on crimes of impulse or opportunity.
Topic:
Crime, Economics, Political Economy, and Labor Issues
Political Geography:
Colombia and Latin America

34. Eurozone Reform: A Victim of Political Economy

Author:
Linda Zeilina
Publication Date:
11-2019
Content Type:
Special Report
Institution:
Europeum Institute for European Policy
Abstract:
With a new European Commission and a new head of the European Central Bank (ECB), the Eurozone is set to have new leadership and an opening for positive change. As Eurozone faces old and new challenges, it is in dire need of improved capability to tackle both legacy and new problems.
Topic:
Political Economy, Reform, European Union, and European Central Bank
Political Geography:
Europe

35. In Further Pursuit of an IMF-Programme: Possible Pathways for Zambia and Lessons for Africa

Author:
Caesar Cheelo and Nakubyana Mungomba
Publication Date:
09-2019
Content Type:
Working Paper
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
Since 2015, Zambia’s real GDP growth has declined markedly, its local currency has depreciated notably with episodes of serious volatility, and the risks of fiscal and debt distress have mounted. As the country searches for solutions, one viable international economic diplomacy instrument might be the IMF. Since its creation in 1945, the IMF has fostered global monetary cooperation, secured financial stability, international trade, high employment, sustainable economic growth and poverty reduction, mainly through: lending, surveillance and capacity building. Zambia has been pursuing an IMF-supported economic programme since about 2016, but with dismal success. In contrast, other economies like Ghana and Zimbabwe appear to be making headway. Key questions emerge from the foregoing: what does the evidence say about the relevance and significance of an IMF-supported programme for Zambia? Why has the country’s recent quest for an IMF deal failed? Does Zambia have feasible pathways to an IMF deal? This paper tackles these issues using simply descriptive statistical analysis, stylized facts and a political economy lens. We highlight a number of specific pathways that Zambia could follow in further pursuit of an IMF-support programme.
Topic:
Political Economy, GDP, Economy, Macroeconomics, Currency, and IMF
Political Geography:
Africa and Zambia

36. Can Conditional Cash Transfer Programs Improve Collective Action? Lab-in-the-Field Evidence on Coordination and Social Norms

Author:
Sandra Polanía-Reyes
Publication Date:
12-2018
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
This study tests an unintended benefit of a conditional cash transfer program in Colombia: the ability to overcome coordination failures. Participants interact with fellow beneficiaries, which gives rise to a coordination device. Beneficiaries participate in a minimum effort coordination game. Those enrolled in the program for over a year are exerting the highest level of effort. The improvement in coordination is not due to potential confounds such as willingness to cooperate or connectivity. A structural choice model illustrates that when beliefs about other’s behavior are sufficiently high the Pareto- dominant equilibrium holds. The findings support nascent initiatives to influence beliefs through policy interventions.
Topic:
Civil Society, Development, Political Economy, Poverty, Communications, Governance, Inequality, Economic growth, Public Policy, and Institutions
Political Geography:
Colombia, South America, and Latin America

37. Inequality in the Twenty-First Century: A Review on Rockstars of the Realm

Author:
Martyna Berenika Linartas
Publication Date:
01-2018
Content Type:
Working Paper
Institution:
Postgraduate Program on Sustainable Development and Social Inequalities in the Andean Region (trAndeS)
Abstract:
Not only has been economic inequality on the rise, but also the research agenda on inequality has moved decisively from the fringes to the center of policy and academic interest. This new concern and concentration in respect to this topic, data records, and methodological approaches have given rise to a vast amount of literature. It is for this reason that I review the most important recent works engaging with the origins of economic inequality – a debate which remains highly controversial. The usual categorization to explain the different storytelling – “to be or not to be neoliberal” – seems inappropriate. In this review on “the rockstars of the realm” (Thomas Piketty, Anthony Atkinson, Branko Milanovic and Walter Scheidel), I argue that the question and reason behind different approaches is instead: politics or the economy, which is the master that defines the space for action? The gradually established allegory of “the mirrored hourglass of inequality” illustrates the salience of this cleavage.
Topic:
International Political Economy, Political Economy, Capitalism, Inequality, Neoliberalism, and Economic Inequality
Political Geography:
Global Focus

38. Is Poverty a binding constraint on Agricultural Growth in Rural Malawi?

Author:
Mirriam Muhome-Matita and Ephraim Wadonda Chirwa
Publication Date:
07-2018
Content Type:
Policy Brief
Institution:
African Economic Research Consortium (AERC)
Abstract:
Agriculture remains the most important sector in sub-Saharan Africa and is a dominant form of livelihood for a majority of the population that resides in the rural areas. In Malawi, agriculture accounts for 35 percent of GDP and generates more than 80 percent of foreign exchange. In addition, agriculture is the most important occupation for 71 percent of the rural population in which crop production accounts for 74 percent of all rural incomes. However, agriculture has failed to get Africa out of poverty, and most countries are experiencing low agricultural growth, rapid population growth, weak foreign exchange earnings and high transaction costs (World Bank, 2008).
Topic:
Agriculture, Economics, Political Economy, Poverty, World Bank, Economic growth, and Rural
Political Geography:
Africa and Malawi

39. The Legal Regime and Political Economy of Land Rights Of Scheduled Tribes in the Scheduled Areas of India

Author:
Namita Wahi and Ankit Bhatia
Publication Date:
03-2018
Content Type:
Special Report
Institution:
Centre for Policy Research, India
Abstract:
Context: India holds the unique distinction of being both the world's largest constitutional democracy and also one of its fastest growing economies. Critical to the process of India's economic development is state acquisition of land for infrastructure and industrial development. Creating a legal framework that ensures equitable and efficient acquisition of land by the state, through processes that are socially inclusive and politically feasible, has proved challenging. While the Indian Constitution guarantees property rights to all, it enshrines special protections for land rights of ‘Scheduled Tribes’, vis-a-vis the state and other communities, in geographically demarcated tribal majority areas known as ‘Scheduled Areas’ under the Fifth and Sixth Schedules of the Constitution. The currently designated Fifth Scheduled areas are in the states of Andhra Pradesh, Telangana, Gujarat, Jharkhand, Chhattisgarh, Himachal Pradesh, Madhya Pradesh, Maharashtra, Orissa, and Rajasthan. The currently designated Sixth Schedule areas are in the north-eastern states of Assam, Meghalaya, Tripura, and Mizoram. The Scheduled Tribes (STs) or adivasis consist of a number of heterogeneous tribal groups that have historically self-identified and been identified by the British colonial and independent Indian states, as lying outside the mainstream of Hindu society, partly because of their ’distinctive culture and way of life as a group’, and partly because of their ‘geographical isolation’. Currently, there are 750 tribes in 26 states and 6 union territories of India. The Constitution guarantees special protections for land rights of Scheduled Tribes in Scheduled areas because land is not only the most important source of tribal livelihoods, but it is also central to their community identity, history and culture. Many non-Scheduled area states have also created legal protections for protecting land rights of tribals. However, CPR Land Rights Initiative research shows that despite these special protections, Scheduled Tribes remain one of the most vulnerable, most impoverished, and most displaced of all groups in India. 47.1% of all STs in rural areas are below the poverty line as compared to 33.8% for the national average, whereas 28.8% of all STs in urban areas are below the poverty line as compared to 20.9% for the national average. Inspite of being the only group with constitutional protections for their land rights, 9.4 % of STs are landless compared to 7.4% for the national average. While STs constitute only 8.6% of the total population, it is estimated that they constitute 40% of all people who have been displaced during the period 1951 to 1990, some more than once, due to the construction of dams, mines, industrial development, and the creation of wildlife parks and sanctuaries. Only 24.7% of ST population that was displaced during this period was rehabilitated. Therefore, it is clear that these groups have disproportionately borne the burden of economic development. Why is this so? The CPR Land Rights Initiative report on ‘The legal and political economy of land rights of Scheduled Tribes in the Scheduled Areas of India’, offers some preliminary answers to these questions. Through a review of constitutional provisions, laws, and policies, governing the rights of Scheduled Tribes and the administration of Scheduled Areas, and the financial and administrative structures that effectuate these protections, the Report delineates a conflicting regime of protective and displacing laws, as well as conflicting policy narratives underlying these laws which facilitate the displacement of Scheduled Tribes and their corresponding landlessness. The Report also contains extensive primary data on the current mapping of Scheduled areas, and the current distribution of dams, forests, and mining activity, in the Scheduled areas. Key findings: Extent of geographical area, and distribution of forests, dams, and mining activity in Scheduled Areas: The Report establishes for the first time that as much as 13% of India’s geographical area is in the Scheduled Areas. Further, the Report finds that both the concentration of forest cover, and the concentration of dams, is significantly higher in Scheduled area districts (a little over two and a half times) as compared to non-Scheduled area districts. Finally, we find that 90% of all mineral wealth generated in India comes from states that have Scheduled Areas. Fragmented constitutional protections for Scheduled Tribes: The Report concludes that despite the centrality of land to the identity, economy, and culture of the Scheduled Tribes, the constitutional protections for Scheduled Tribes and Scheduled Areas are fragmented and contradictory. The creation of these fragmented protections was in turn a product of two factors. First, even at the time of drafting of the Constitution, many tribal communities were no longer located within the geographically isolated scheduled areas, while many non-tribal communities were resident there, some for several generations. The Constitution makers created safeguards both for tribal people resident in Scheduled areas and those that were residing outside Scheduled Areas, but these fragmented protections failed to fully safeguard the rights of STs. Second, they arose from an inherent contradiction in creating geographically protected areas for Scheduled Tribes, while at the same time imposing no restrictions on the movement of tribals outside those areas, or on the movement of non tribals to those areas. This enabled more dominant non-tribal communities to settle in scheduled areas and in practice displace STs. Special constitutional and legal protections for ST land rights negated by contrary laws: The Report concludes that special constitutional and legal protections for land rights of STs have been diluted by a contrary legal framework comprised of forests, mining, and land acquisition laws. While state land alienation prohibition laws prohibit transfer of land from tribals to non tribals, there is no prohibition on the state acquiring land in Scheduled Areas for its own purposes in the exercise of its power of eminent domain or assertion of its rights over forestland. State led lawfully sanctioned development in the form of dams, mines, industrial development, and wildlife parks and sanctuaries, has historically been the biggest displacer of STs. This is corroborated by data on the intensity of dams and mining activity in the Scheduled Areas as outlined in the Report. Fundamental contradictions between ‘identity based isolation’ and ‘development through integration’ policy narratives of the British and Indian states: The Report finds a fundamental contradiction between two narratives that have characterised the policies of the British colonial state and the independent Indian state. The first narrative, that the Report calls the ‘identity based isolation’ narrative, identifies the tribals as a ‘distinctive group outside mainstream Hindu society’ both in terms of their ‘cultural traits’ and ‘geographical isolation’, and argues that they are keen to preserve their distinctiveness and their isolation. The second narrative called the ‘development through integration’ narrative identifies the tribal way of life as backward, compared to mainstream Indian population and seeks to improve their economic and social indicators to ‘integrate’ or ‘assimilate’ them with the mainstream population. The Report concludes that while both the ‘identity based isolation’ and ‘development through integration’ narratives, characterised the drafting of constitutional protections for STs, post-independence policy making was guided primarily by the latter. STs have however, rejected the ‘development through integration’ narrative as paternalistic and patronising, alleging that it fails to capture their aspirations to ‘develop according to their own genius.’ Meagre financial allocations for ST welfare: Translating policy and legal protections into reality needs financial resources. Even though the Constitution envisages a centralised framework for the administration of tribal areas under the aegis of the President and Governors of states, the responsibility of financing the costs of progressive change increasingly vests with the states. The Report computes significant shortfalls in Planning Commission recommended financial allocations made by both central and state governments in Scheduled area states under the tribal sub plan. Misguided expenditure of allocated funds compounds the problem of shortfall of funds for tribal development.
Topic:
Political Economy, Law, Economies, Constitution, Ethnicity, and Land Rights
Political Geography:
South Asia, India, and Asia

40. Berry Brothers & Rudd: Family, Reputation, and the Cultivation of the European Wine Trade

Author:
Douglas Ajram, Charlie Harris, and Christopher McKenna
Publication Date:
09-2018
Content Type:
Case Study
Institution:
Oxford Centre for Global History
Abstract:
There is no better testament to the longevity of Berry Bros. & Rudd than its rich history of, and great capacity for, reinvention. The family firm began life as a grocery store in 1698, founded by a woman now known only as the Widow Bourne. It is now Britain’s oldest wine and spirits merchant, and one of the nation’s ten oldest family-run businesses, boasting six Masters of Wine – the most of any company in the world – as well as two Royal Warrants, a mark of recognition for tradespeople that provide goods or services to the British royal family.
Topic:
Economics, International Trade and Finance, Political Economy, Food, and Capitalism
Political Geography:
Europe