Why is Poverty So High Among Afro-Brazilians? A Decomposition Analysis of the Racial Poverty Gap

This study aimed to identify the major factors underlying the discrepancy in poverty levels between whites and blacks in Brazil. An Oaxaca–Blinder-type decomposition was performed in order to quantify the extent to which differences in observed characteristics (characteristics effect) account for this difference. The remaining unexplained part (coefficients effect) provides evidence on how these characteristics are differentially associated with the risk of poverty in each group. Our results show that the characteristics effect explains a large part of the discrepancy in poverty levels: education and labour variables explain one-half of the gap, and geographic and sociodemographic variables another two-fifths.     

Can Information about Local Government Performance Induce Civic Participation? Evidence from the Philippines

The question of whether people are motivated to engage in civic activities once informed of their local government's performance is relevant to many developing countries that adopted decentralisation. Applying propensity score matching technique on a unique household-level dataset from the Philippines, it is found that the knowledge of an index of local government performance has positive and statistically significant effects on the likelihood of membership in local organisations and participation in local projects. Thus, the results support policies for greater transparency in local governance to deepen citizenship.     

How Does Contract Design Affect the Uptake of Microcredit among the Ultra-poor? Experimental Evidence from the River Islands of Northern Bangladesh

This study examines the demand of microcredit among ultra-poor households in northern Bangladesh. We implemented a field experiment to identify what type of credit is best suited to their demand. We found that the uptake rate by the ultra-poor is the lowest for regular small cash credit, followed by in-kind credit. We also found that the ultra-poor are significantly more likely to join a microcredit programme than the moderately poor if a grace period with longer maturity is attached to a large amount of credit, irrespective of whether the credit is provided in cash or in kind.     

Why Does Citizens' Knowledge of New Policy Vary Between Municipalities? The Case of the Social Support Act

Providing information to citizens is an important first step in the implementation of new policy. In this study we explain differences in the knowledge of citizens between municipalities of a newly introduced law in the Netherlands, the Social Support Act, 10 months after it became into force. This law is especially important for older people that need support in their daily functioning and participation. We focused on two aspects of knowledge related to the act, i.e. having heard of the new act, and knowing how voice with regard to policy on support is organised in the place of residence. Given that socialist local governments focus more on social topics than liberal local governments, we expected citizens of municipalities with socialist councils to have more knowledge about the new Social Support Act. Contrary to our expectations, citizens from municipalities where a liberal party or a collaboration of liberal/socialist parties is the largest, have a better understanding of how voice is organised. On the other hand, citizens in municipalities with an alderman from a combination of liberal/socialist parties have a lower chance of having heard of the Social Support Act. We argue that in view of the Social Support Act, the ideology of a local government related to citizens' responsibilities (liberal view) may have more influence on citizens' knowledge than being a government that pays attention to social issues (socialist view). As far as individual differences between citizens are concerned, as expected, older people that are more educated but in poorer health status have more knowledge about the new act. A higher educational level and an excellent mental health status are related to more knowledge about voice. Educational level is the most powerful predictor for knowledge about the act.     

Institutional design for credence goods: Can the existence of financial incentive be problematic? Evidences from childbirth system of Bangladesh

The introduction of an incentive system in order to increase the provision of credence goods such as health services can be problematic. This article identifies the possible magnitude of overtreatment by physicians in private clinics compared with the situation in government and nongovernment health facilities in Bangladesh. The five to ten times higher volume of cesarean childbirths in private clinics (higher incentive institutions) compared with the volume in government/NGOs health facilities (lower incentive institutions) is indicative of the problem of overtreatment. This problem may become acute where there is only one private clinic in an area; however, the mere increase in the number of private clinics may not solve the problem.