{"title":"FDI inflows and export quality: Domestic competition and within-firm adjustment","authors":"Qing Liu , Larry D. Qiu , Chaoqun Zhan","doi":"10.1016/j.jdeveco.2024.103293","DOIUrl":"https://doi.org/10.1016/j.jdeveco.2024.103293","url":null,"abstract":"<div><p>Product quality is widely regarded as an important determinant for economic development. This paper investigates whether horizontal foreign direct investment (FDI) improves or deteriorates the quality of domestic firms’ exports. We use China’s FDI regulation changes in 2002 as an instrument variable (IV) for FDI penetration in China to identify the causal impact and introduce a theoretical model to rationalize our empirical work. We find that FDI inflows exert a significantly <em>negative</em> effect on Chinese firms’ export quality. The mechanism of the negative effect is that FDI intensifies the <em>domestic</em> market competition, which induces within-firm adjustment of product mix and lowers domestic firms’ incentive to invest in the quality of new products. In particular, while domestic firms drop some existing products and introduce new products, they invest less in the quality of new products and maintain the quality of continuing products.</p></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":null,"pages":null},"PeriodicalIF":5.0,"publicationDate":"2024-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140544009","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Womens access to school, educational attainment, and fertility: Evidence from Jordan","authors":"Hongliang Zhang , Ragui Assaad","doi":"10.1016/j.jdeveco.2024.103291","DOIUrl":"https://doi.org/10.1016/j.jdeveco.2024.103291","url":null,"abstract":"<div><p>In socially conservative Muslim societies, the absence of a sex-appropriate school in one’s community has historically been a major constraint to girls’ schooling. We use the expansion of access to girls’ or mixed schools in Jordan to investigate the effects of access to school on women’s education and fertility. We find that having access to a sex-appropriate school in a woman’s sub-district of birth led to 3.0–3.4 additional years of schooling and 1.0–1.4 fewer births. Using access to girl-appropriate schools as an instrument for female educational attainment, we find that an additional year of schooling reduces total fertility by 0.3–0.4 births. The impact of schooling on fertility is mostly for births occurring at older ages (30+) and higher parities (6+). We also find evidence of effects on intergenerational transmission of education but we find no evidence that school access has translated into higher participation in the labor market.</p></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":null,"pages":null},"PeriodicalIF":5.0,"publicationDate":"2024-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140539947","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Adapting to climate change accounting for individual beliefs","authors":"Guglielmo Zappalà","doi":"10.1016/j.jdeveco.2024.103289","DOIUrl":"https://doi.org/10.1016/j.jdeveco.2024.103289","url":null,"abstract":"<div><p>As the climate changes, efficient climate policy requires a better understanding of how individuals adapt. Despite extensive research on various climate adaptation frictions, including financial and technological constraints, models of adaptive decision-making assume that agents have perfect information and accurate beliefs about climate. Combining rural household data in Bangladesh with a meteorological measure of dryness, this paper studies the role of individual drought beliefs and their accuracy in irrigation decisions as a key adaptive margin. In a theoretical model, I introduce a behavioral friction to document how heterogeneous beliefs differentially influence responsiveness to the same meteorological signal in dryness. The empirical analysis reveals an asymmetric response to dry shocks in irrigation conditional on the accuracy of prior beliefs. A counterfactual analysis shows lower technology adoption levels and higher monetary losses when beliefs are inaccurate.</p></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":null,"pages":null},"PeriodicalIF":5.0,"publicationDate":"2024-03-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0304387824000385/pdfft?md5=fc572cd11a1654943d55115091e762d2&pid=1-s2.0-S0304387824000385-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140344058","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pablo A. Celhay , Emilio Depetris-Chauvin , Cristina Riquelme
{"title":"When a strike strikes twice: Massive student mobilizations and teenage pregnancy in Chile","authors":"Pablo A. Celhay , Emilio Depetris-Chauvin , Cristina Riquelme","doi":"10.1016/j.jdeveco.2024.103274","DOIUrl":"10.1016/j.jdeveco.2024.103274","url":null,"abstract":"<div><p>This paper empirically studies the impact of massive and sudden school closures following the 2011 nationwide student strike in Chile on teenage pregnancy. We observe an average increase of 2.7% in teenage pregnancies in response to temporary high school shutdowns, equal to 1.9 additional pregnancies per lost school day. The effect diminishes after three quarters since the strike’s onset. The effects are predominantly driven by first-time mothers aligned with high-school absenteeism periods and are unrelated to the typical seasonality of teenage fertility or pregnancies in other age groups. Additionally, we document that the strike had a larger disruptive role by affecting students’ educational trajectories, evidenced by a persistent increase in dropout rates and a reduction in college admission test take-up for both female and male students.</p></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":null,"pages":null},"PeriodicalIF":5.0,"publicationDate":"2024-03-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140401206","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Rafael Novella , David Rosas-Shady , Richard Freund
{"title":"Is online job training for all? Experimental evidence on the effects of a Coursera program in Costa Rica","authors":"Rafael Novella , David Rosas-Shady , Richard Freund","doi":"10.1016/j.jdeveco.2024.103285","DOIUrl":"10.1016/j.jdeveco.2024.103285","url":null,"abstract":"<div><p>Massive open online courses (MOOCs) are frequently viewed as a tool for democratizing education and job training. However, their effectiveness is largely untested. We report on the first randomized evaluation of a job training program offering cost-free access to curated, short Coursera MOOCs and certificates. We find low course completion rates (10%), with males and wealthier individuals more likely to complete a course. Personalized reminders did not increase treatment take-up over a simple, standardized email reminder. Treatment has no significant effect on labour market outcomes roughly two years after the program. However, we find marginally significant evidence that treatment increases post-secondary education enrolment by 11%. Evidence on mechanisms suggests that this may be operating partially through the program motivating individuals who lacked sufficient skills to pursue further specialization.</p></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":null,"pages":null},"PeriodicalIF":5.0,"publicationDate":"2024-03-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0304387824000348/pdfft?md5=e69aecfb6b76403dd76021818b5116fc&pid=1-s2.0-S0304387824000348-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140274658","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Impacts of vocational training for persons with disabilities: Experimental evidence from Cambodia","authors":"Yoshito Takasaki","doi":"10.1016/j.jdeveco.2024.103277","DOIUrl":"https://doi.org/10.1016/j.jdeveco.2024.103277","url":null,"abstract":"<div><p>This paper examines the impacts of vocational training for persons with disabilities (PWDs). In heavily mined areas of rural Cambodia, adults with limb amputation or paralysis were randomly assigned to either a treatment group (invited to participate in an intensive training program in mechanics and services) or a control group (not invited to participate). Over 30% of PWDs in the treatment group participated in the program and none in the control group did so. Although being assigned to the treatment group greatly increased PWDs’ employment and earnings, experiences of discrimination reported by them and their disability stigma (self-stigmatization) also increased. The paper shows suggestive evidence for skill acquisition and networking for employment and negative self-stereotyping leading to stigma.</p></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":null,"pages":null},"PeriodicalIF":5.0,"publicationDate":"2024-03-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140181100","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Does the gig economy discriminate against women? Evidence from physicians in China","authors":"Yutong Chen","doi":"10.1016/j.jdeveco.2024.103275","DOIUrl":"https://doi.org/10.1016/j.jdeveco.2024.103275","url":null,"abstract":"<div><p>This paper investigates gender gaps in the gig economy of a developing country. Using novel data from a major Chinese online healthcare platform, I show that female physicians charge 2.3% lower prices and provide 11.0% fewer consultations than males. Patients appear to discriminate against female physicians despite them having identical observable productive characteristics to those of male physicians. The differential responses of patients to quality signals from female physicians suggest that a portion of this discrimination is statistical in nature. I further find that the platform’s design, particularly its ranking algorithm, plays an important role in enlarging gender gaps. The ranking algorithm amplifies and perpetuates the gaps by using past patient behavior (and thus pre-existing discrimination) as a key predictor of future patient behavior, thereby placing fewer females at the top of search results. Additionally, I cast doubt on several other alternative explanations and conducted a series of robustness checks.</p></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":null,"pages":null},"PeriodicalIF":5.0,"publicationDate":"2024-03-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140191458","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Syngjoo Choi , Kyu Sup Hahn , Byung-Yeon Kim , Eungik Lee , Jungmin Lee , Sokbae Lee
{"title":"North Korean refugees’ implicit bias against South Korea predicts market earnings","authors":"Syngjoo Choi , Kyu Sup Hahn , Byung-Yeon Kim , Eungik Lee , Jungmin Lee , Sokbae Lee","doi":"10.1016/j.jdeveco.2024.103276","DOIUrl":"https://doi.org/10.1016/j.jdeveco.2024.103276","url":null,"abstract":"<div><p>This paper investigates whether experiences of living in a communist regime relate to low market earnings. We recruit North Korean refugees and measure their implicit bias against South Korea by using the Implicit Association Test. Conducting double auction and bilateral bargaining market experiments, we find that North Korean refugees with a larger bias against South Korea have lower expectations about their earning potential, exhibit trading behavior with lower target profits, and earn less profits. These associations are robust to conditioning on correlates of preferences, human capital, and assimilation experiences.</p></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":null,"pages":null},"PeriodicalIF":5.0,"publicationDate":"2024-03-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140187963","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Can information about jobs improve the effectiveness of vocational training? Experimental evidence from India","authors":"Bhaskar Chakravorty , Wiji Arulampalam , Apurav Yash Bhatiya , Clément Imbert , Roland Rathelot","doi":"10.1016/j.jdeveco.2024.103273","DOIUrl":"https://doi.org/10.1016/j.jdeveco.2024.103273","url":null,"abstract":"<div><p>We use a randomized experiment to evaluate the impact of providing richer information about prospective jobs to vocational trainees on their employment outcomes. The setting of the study is the vocational training program DDU-GKY in India. We find that including in the training two information sessions about placement opportunities make trainees 18% more likely to stay in the jobs in which they are placed. We provide suggestive evidence that the effect is driven by improved selection into training: as a result of the intervention, trainees that are over-optimistic about placement jobs are more likely to drop out before placement.</p></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":null,"pages":null},"PeriodicalIF":5.0,"publicationDate":"2024-03-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0304387824000221/pdfft?md5=0392865013cf919f5a892b1a26c4a6fe&pid=1-s2.0-S0304387824000221-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140096309","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pavel Chakraborty , Devashish Mitra , Asha Sundaram
{"title":"Import competition, labor market regulations, and firm outsourcing","authors":"Pavel Chakraborty , Devashish Mitra , Asha Sundaram","doi":"10.1016/j.jdeveco.2024.103272","DOIUrl":"https://doi.org/10.1016/j.jdeveco.2024.103272","url":null,"abstract":"<div><p>Using unique information on firm level domestic outsourcing of manufacturing jobs by Indian firms, we propose two channels and their interaction as determinants of the fragmentation of production: import competition and labor market regulation. We find that greater import competition from China is associated with a significant increase in domestic outsourcing of manufacturing jobs — a 10-percentage point increase in the import penetration ratio leads to a 11%–14% increase in the ratio of outsourcing expenses to the wage bill of a firm. This effect is driven by multi-product firms operating in states with pro-worker labor laws. We find a corresponding increase in the likelihood of sub-contracting among informal sector firms. Our results are consistent with a model where forward-looking firms outsource more in response to an increase in import competition, when there are future firing costs that can be avoided through such outsourcing. We thus are the first to highlight that labor market regulation and its interaction with international trade can determine the organization of production. Our findings have significant development implications that take the form of movement of manufacturing production towards the informal sector (and possible subsequent impoverishment of workers) as a consequence of a major trade shock.</p></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":null,"pages":null},"PeriodicalIF":5.0,"publicationDate":"2024-02-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140052103","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}