{"title":"The causal effect of German reunification on economic freedom","authors":"Vincent Geloso , Kevin Grier , Florence Muhoza","doi":"10.1016/j.jce.2025.12.001","DOIUrl":"10.1016/j.jce.2025.12.001","url":null,"abstract":"<div><div>Do large changes in electorate composition affect institutional quality? In this paper, we causally consider a unique case of a large change in electorate composition that has no ethnic component: German reunification. As East and West Germans were ethnically similar, the main difference between both groups is tied to cultural differences that arose during Communist rule. We test whether reunification lowered economic freedom (our measure of institutional quality) in Germany using synthetic control methods. We find that there was a transitory effect of less than a decade whereby reunification significantly reduced economic freedom and institutional quality.</div></div>","PeriodicalId":48183,"journal":{"name":"Journal of Comparative Economics","volume":"54 2","pages":"Pages 445-466"},"PeriodicalIF":3.1,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"148202530","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Settling prosperity: Historical immigration and its long-term institutional legacies","authors":"Amanda Guimbeau","doi":"10.1016/j.jce.2026.02.008","DOIUrl":"10.1016/j.jce.2026.02.008","url":null,"abstract":"<div><div>During Brazil’s Age of Mass Migration (1880s-1930s), the state sponsored immigrant settlements in São Paulo. Using a new dataset that combines historical and modern administrative records, this paper explores the institutional impact of these settlements. Municipalities closer to them now enjoy better public goods provision and more well-defined property rights, as reflected in structured contractual arrangements, fewer land invasions, and increased investments in high-stakes agricultural practices. Intermediate data show that settlement municipalities recorded higher notarial activity, more frequent legal transactions, and greater land tax revenues in the years following settlement. These changes supported improvements in local governance, legal certainty, and public investment. Overall, the findings highlight how state-led settlement shaped regional economic and institutional development, showing that the implementation of immigration policy had lasting effects on local growth trajectories.</div></div>","PeriodicalId":48183,"journal":{"name":"Journal of Comparative Economics","volume":"54 2","pages":"Pages 386-428"},"PeriodicalIF":3.1,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"148202527","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Internal migration and labor share: Theory and evidence","authors":"Yang Yang , Qi Yu , Junsen Zhang , Kang Zhou","doi":"10.1016/j.jce.2026.01.005","DOIUrl":"10.1016/j.jce.2026.01.005","url":null,"abstract":"<div><div>This paper examines the effect of internal migration on firms’ labor share. We develop a theoretical framework in which rural-to-urban migration increases the labor share of local firms by substituting labor for capital and increasing the skill wage premium. Using a “shift-share” instrumental variable approach, we show that migration inflows increase the labor share of local firms in China. To test the mechanisms predicted by the model, we show that migration inflows reduce capital per worker, raising the relative wages of skilled labor while lowering the skill composition of firm employment. Finally, heterogeneity analysis reveals that the effect is more pronounced among private firms and highly educated migrants, with no significant gender differences.</div></div>","PeriodicalId":48183,"journal":{"name":"Journal of Comparative Economics","volume":"54 2","pages":"Pages 429-444"},"PeriodicalIF":3.1,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"148202528","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Technological progress and the global decline in the manufacturing labour share","authors":"Jakob B. Madsen, Kesavarajah K. Mayandy","doi":"10.1016/j.jce.2026.01.010","DOIUrl":"10.1016/j.jce.2026.01.010","url":null,"abstract":"<div><div>Using manufacturing data for a panel of 86 low- , middle-, and high-income countries over the period 1963–2020, this study investigates the effects of domestic and foreign technological progress on the labour share dynamics in low- and high-tech manufacturing. We find that the increase in domestic and, in particular, foreign technological progress since approximately 1990, has reduced the labour share in high-income countries and contributed to an increase in the labour share in middle- and low-income countries. The positive effects in the low-income countries have been driven by high R&D-intensity firms. Overall, we find that estimates for the US and other high-income countries cannot be used to project the underlying drivers of labour shares in the middle- and low-income countries.</div></div>","PeriodicalId":48183,"journal":{"name":"Journal of Comparative Economics","volume":"54 2","pages":"Pages 511-525"},"PeriodicalIF":3.1,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"148202533","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"International tax evasion, state purchases of confidential bank data and voluntary disclosures","authors":"Dirk Bethmann , Michael Kvasnicka","doi":"10.1016/j.jce.2025.11.005","DOIUrl":"10.1016/j.jce.2025.11.005","url":null,"abstract":"<div><div>International tax evasion is a major source of discontent for tax authorities worldwide. State purchases of whistleblower bank data on suspected tax evaders from international tax havens is a potentially powerful policy tool tax authorities may use unilaterally to combat such tax evasion. Tax authorities in North-Rhine Westphalia (NRW), Germany’s most populous federal state, have been the most active internationally in acquiring such confidential bank data in the first half of the 2010s. Using unique self-compiled press data on the timing and content of altogether 10 data acquisitions from Switzerland, a major offshore financial center and tax haven, and on monthly voluntary disclosures of international tax evasion involving Swiss banks, we study the response of voluntary disclosures to news of such acquisitions in the period 2010–2015. Our results show that media reports on new purchases of whistleblower data had a positive, immediate and sizeable effect on the number of voluntary disclosures filed. Various robustness checks and additional explorations corroborate this finding. For NRW, these purchases generated additional tax revenue of more than half a billion euros.</div></div>","PeriodicalId":48183,"journal":{"name":"Journal of Comparative Economics","volume":"54 2","pages":"Pages 526-536"},"PeriodicalIF":3.1,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"148202534","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Fragmentation or inequality: Ethnic divisions and conflict in Sub-Saharan Africa","authors":"Boris Gershman , Ameesh Upadhyay","doi":"10.1016/j.jce.2026.01.006","DOIUrl":"10.1016/j.jce.2026.01.006","url":null,"abstract":"<div><div>This paper examines the relationship between local ethnic divisions and conflict in Sub-Saharan Africa. Using census subsamples and large-scale household surveys, we construct a new subnational dataset on ethnic inequality capturing group-level differences in education, asset ownership, and access to basic amenities for several hundred regions in thirty-five countries. To distinguish between deep-rooted and more recent ethnic divisions, we incorporate groups from our sample into <em>Ethnologue</em>’s linguistic tree model and generate alternative measures of both ethnic fractionalization and inequality based on ancestral languages. Our analysis, leveraging within-country variation and accounting for numerous regional characteristics, reveals a robust positive relationship between ethnic fractionalization and conflict, especially when using deeper linguistic cleavages to define distinct groups. In contrast, ethnic inequality shows no systematic association with conflict frequency or severity. These findings suggest the primacy of ethnolinguistic differences <em>per se</em>, rather than socioeconomic disparities between groups, as a driver of local conflict.</div></div>","PeriodicalId":48183,"journal":{"name":"Journal of Comparative Economics","volume":"54 2","pages":"Pages 313-349"},"PeriodicalIF":3.1,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"148202521","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Road to division: Ethnic favoritism and road infrastructure in Ethiopia","authors":"Elena Perra","doi":"10.1016/j.jce.2025.12.002","DOIUrl":"10.1016/j.jce.2025.12.002","url":null,"abstract":"<div><div>This paper investigates the role of ethnic favoritism in the long run allocation of road infrastructure in Ethiopia. I construct a 5 km<span><math><msup><mrow></mrow><mrow><mn>2</mn></mrow></msup></math></span> grid cell panel by merging road network data from the late 1960s to 2016 with high resolution maps of local ethnic composition. Using a quasi-experimental empirical design, the study finds that cells where the local majority shares the ethnicity with the ruling elite receive 8.7 percent additional road investments and see a 13.8 improvement in road surface quality than otherwise comparable non co-ethnic cells. Exploiting the phased rollout of the Road Sector Development Program between 1997 and 2016, I also document that new roads raise night lights intensity by 0.27 standard deviations in cells benefiting from the program and by 0.51 standard deviations in co-ethnic areas, with larger effects for earlier investments. These findings suggest that ethnic alignment and the availability of large public funds jointly shape the placement of road infrastructure, influencing local economic dynamics.</div></div>","PeriodicalId":48183,"journal":{"name":"Journal of Comparative Economics","volume":"54 2","pages":"Pages 350-366"},"PeriodicalIF":3.1,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"148202522","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Settlers and norms","authors":"Joanne Haddad","doi":"10.1016/j.jce.2026.02.005","DOIUrl":"10.1016/j.jce.2026.02.005","url":null,"abstract":"<div><div>The distinctive traits of early settlers at the initial stages of institutional development may be crucial for cultural formation. In 1973, cultural geographer Wilbur Zelinsky formalized this idea in his doctrine of “First Effective Settlement.” I examine this doctrine and identify its short- and long-run implications for gender norms in the United States. To capture counties at early stages of cultural and institutional development, I focus on county creation events and proxy early settlers’ gender norms using historical female labor force participation rates and women’s financial rights in their places of origin. I document the distinctive characteristics of early settler populations and provide suggestive evidence of the transmission of gender norms across space and time. The results show that women’s labor supply is higher, both in the short and long run, in United States counties that historically hosted larger foreign-born early settler populations from places with high female labor force participation. I provide evidence for four reinforcing mechanisms underlying this persistence: foundational influence during critical junctures, demographic dominance, intergenerational cultural transmission, and political dominance. Together, these findings shed new light on how immigrants’ cultural endowments can have durable effects when introduced during critical junctures of institutional formation in host societies.</div></div>","PeriodicalId":48183,"journal":{"name":"Journal of Comparative Economics","volume":"54 2","pages":"Pages 367-385"},"PeriodicalIF":3.1,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"148202526","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"How does FDI transmit into domestic investment? Exploring intra-industry and financial channels","authors":"Tim de Leeuw , Konstantin M. Wacker","doi":"10.1016/j.jce.2026.01.004","DOIUrl":"10.1016/j.jce.2026.01.004","url":null,"abstract":"<div><div>Foreign direct investment (FDI) is often seen as a means to boost domestic investment and, hence, capital accumulation. Yet, the empirical support for such a positive investment effect of FDI is inconclusive. A possible reason is that FDI is often directed towards the financial sector, where capital investment tends to be low. In this paper, we develop a novel approach to analyse how FDI into the financial sector transmits into domestic investment by non-financial industries. Our approach uses shares of industries’ financial exposure to attribute shifts in financial FDI to individual non-financial industries. Using industry-level FDI and investment data from 12 Central and Eastern European countries between 1997 and 2019, we find that industries with close links to the financial sector increase domestic investment in the presence of financial FDI, particularly manufacturing, trade and real estate. Additionally, we provide suggestive evidence that this relationship operates through a liquidity channel.</div></div>","PeriodicalId":48183,"journal":{"name":"Journal of Comparative Economics","volume":"54 2","pages":"Pages 554-577"},"PeriodicalIF":3.1,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"148202536","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Hong Cao , Liyan Han , Lei Li , Libo Yin , Peng Yin
{"title":"The impact of low-carbon pilots policy on health","authors":"Hong Cao , Liyan Han , Lei Li , Libo Yin , Peng Yin","doi":"10.1016/j.jce.2026.02.001","DOIUrl":"10.1016/j.jce.2026.02.001","url":null,"abstract":"<div><div>This paper quantifies the health benefits of China’s Low-Carbon Pilot (LCP) policy using individual-level mortality records. Exploiting staggered policy adoption and estimating dynamic treatment effects with the Sun and Abraham (2021) approach, we find that LCP implementation reduces pollution-related mortality among older adults by 12.6%, with the largest declines in cardiovascular, ischemic heart, and cerebrovascular deaths. The mechanism evidence points to improved air quality—achieved mainly through stronger fiscal support and tighter regulatory enforcement—and the effects are amplified in places led by younger, career-motivated officials, underscoring sizeable health benefits from climate-oriented environmental regulation.</div></div>","PeriodicalId":48183,"journal":{"name":"Journal of Comparative Economics","volume":"54 2","pages":"Pages 578-597"},"PeriodicalIF":3.1,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"148202537","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}