Economic Benefits of Rural Feeder Roads: Evidence from Ethiopia

We estimate households’ willingness-to-pay for rural feeder roads in Ethiopia. Using purposefully collected data, we compare the economic behaviour of households by remoteness to estimate the benefits of access to feeder roads. Although we cannot definitively assert a causal relationship, we cautiously estimate that gravel roads have internal rates of return of 12–35 per cent. These results suggest that rural feeder roads may have relatively high rates of return even in unfavourable settings where (a) small-scale farmers have low levels of marketed agricultural surplus, (b) non-farm earning opportunities are negligible, and (c) motorised transport services are not guaranteed.     

Remittance Effects on Child Labour: Evidence from Burkina Faso

This article explores the effects of remittance receipt on child labour in an African context. We focus on Burkina Faso, a country with a high prevalence of child labour and a high rate of migration. Given the complex relationship between remittance receipt and household time allocation decisions, we instrument remittances using economic conditions in remittance-sending countries and explore heterogeneous effects across different types of potential remitters. While remittances have no significant effect on child labour on average, transfers reduce child labour in long-term migrant households, for whom the disruptive effect of migration is no longer felt. We find no gender difference but remittances seem to affect mainly the labour market participation of younger children.     

The Heterogeneous Effects of a Food Price Crisis on Child School Enrolment and Labour: Evidence from Pakistan

Using a panel survey, this paper investigates how food price increases in Pakistan in 2008–2010 affect children’s school enrolment and labour. The causal identification relies on the geographical variations in food (wheat) price. The results show that the negative impacts of food price increase on school enrolment differ by gender, economic status and the presence of siblings. The negative effects on school do not directly correspond to the increase in child labour because the transition from being idle to labour activity or from school to being idle is significant, particularly among poor girls. The results also show that children in households with access to agricultural lands are not affected by higher food prices. The analyses reveal a more dynamic picture of the impact of food price increase on child status and contribute to broader policy discussion to mitigate the impact of crises on child education.     

Can the Rural Employment Guarantee Scheme Reduce Rural Out-migration: Evidence from West Bengal,India

Abstract

Using survey data from the Cooch Behar district of West Bengal, the paper documents the impact of the rural employment guarantee scheme in reducing rural out-migration. Using regression framework and case studies, it finds no significant impact of household participation in the programme on migration decision. However, extent of participation in terms of number of days of work and earnings has a significant negative impact on short-term migration but not on longer duration ones. The findings lay emphasis on effective implementation in terms of asset creation, reduction in rationing of works and tackling delayed payments to enjoy its potential benefits.     

The Effect of Food Price Changes on Child Labour: Evidence from Uganda

Most people in developing countries spend up to 60 per cent of their income on food, even though the majority of them are farmers. Hence, a change in food prices affects both their revenue as well as expenditure, and it may thereby affect their labour market decisions. Using the Uganda National Panel Survey and monthly regional food prices, this paper examines the effect of changes in food prices on child labour. The empirical evidence shows that an increase in food prices is linked to an increase in the probability and the intensity of child labour. We find the effect of food price increases to be smaller among landowning households, which is consistent with the view that landowning households can better compensate for price shocks. The empirical results suggest that periodic shocks in food prices may have longer lasting effects on economic development in developing countries through the channel of child labour.     

The Impact of Cooking with Firewood on Respiratory Health: Evidence from Indonesia

The vast majority of households in low-income countries cook with firewood, which is known to produce various airborne toxins. We examine whether cooking with firewood results in poorer respiratory health by using a unique Indonesian household survey that collected direct measures of lung capacity. We find that individuals living in households that cook with firewood have 9.4 per cent lower lung capacity than those that cook with cleaner fuels. This impact is larger for women and children than for men. The results strongly support the international policy focus on facilitating households to switch to cooking with cleaner fuels.     

The Effects of Risk Preferences on the Adoption of Post-Harvest Technology: Evidence from Rural Cambodia

We investigate how rice farmers’ risk preferences affect the adoption of post-harvest technology in Cambodia, focusing on moisture meters. We find that risk-averse farmers are more likely to adopt moisture meters, although the degree of farmers’ loss aversion or the extent to which they tended to overweight small probabilities do not affect the adoption. In the setting of our study, the effects of farmers’ risk preferences on agricultural technology adoption can be described by using expected utility theory. However, controlling for loss aversion and probability weighting improves the precision of examining the effects of farmers’ risk preferences on adoption.     

The Elasticity of the Migrant Labour Supply: Evidence from Temporary Filipino Migrants

The effect of immigration on host and origin countries is mediated by the way migrants take their labour supply decisions. We propose a simple way of integrating the traditional random utility maximisation model used to analyse location decisions with a classical labour demand function at destination. Our setup allows us to estimate a general upper bound on the elasticity of the migrant labour supply that we take to the data using the evolution of the numbers and wages of temporary overseas Filipino workers between 1992 and 2009 to different destinations. We find that the migrant labour supply elasticity can be very large. Temporary migrants are very reactive to economic conditions in their potential destinations.     

Linkages between Decentralisation and Inequalities in Neonatal Health: Evidence from Indonesia

This study uses five waves of the Indonesian Demographic Health Surveys to analyse decentralisation and geographical inequality in health services delivery. Accounting for unobserved community-level heterogeneity with random effects and correlated random effects models, we link facility-based birth delivery to the period of decentralisation and Indonesia’s major island groups using a pooled sample of 71,815 children. We also generate direct estimates of neonatal mortality from 1990 to 2007. The results show that the implementation of decentralisation has accorded with a marked expansion in both health service and outcome inequalities in Indonesia, at least with respect to neonates. Systemic funding failures for health and decision-space issues resulting from decentralisation are likely to have greater impact in disadvantaged regions where local capacity is weakest. The need to address these fundamental issues to reduce inequalities and improve general health outcomes appears supportable.     

Migrant Networks in the Urban Labour Market: Evidence from India

This paper analyses the informal channels of the job search process through migrant networks in the urban labour markets in developing countries. Using a novel approach and nationwide sample survey, we measure various aspects of migrant networks such as size, diversity, efficiency and experience content and estimate their effect on probability of employment. Our findings suggest that migrant stock (having experience content) has an inverted-U relationship with the probability of finding a job for a migrant. The share of employed workers in a migrant network (efficiency) and different origin identity (diversity) positively affect the employment outcome through weak ties. Further, the migrant network effect is more active in larger cities as compared to smaller urban areas. The implications of this study indicate towards the importance of non-market informal channels in job searches and the need for integrating labour markets to harness the benefits of larger positive network externalities.     

Stature,Skills and Adult Life Outcomes: Evidence from Indonesia

We investigate the effect of height on earnings, occupational choices and a subjective measure of wellbeing among Indonesian men. We explore the extent to which height captures the effects of endowments set before entry in the labour market. Physical and cognitive skills, co-determined with stature early in life, do not explain much of the height earnings premium directly. Yet, human capital more broadly, including cognition, educational attainment and other factors related to childhood conditions, explains around half of the height premium and does so through occupational sorting. Indeed, taller workers tend to have more education, and educated workers tend to work in more lucrative occupations that require brain and social skills, not brawn. The unexplained share of the height earnings premium may reflect a specific role of stature on social interaction, labour market advantages or self-assurance. We also find a height premium in happiness, half of which simply accounts for the educational and earnings advantages of taller workers.     

Social Networks and Factor Markets: Panel Data Evidence from Ethiopia

We investigate the role of an indigenous social network in Ethiopia, the iddir, in facilitating factor market transactions among smallholder farmers. We use detailed longitudinal household survey data and employ fixed effects estimation approaches to identify the effect of iddir membership on factor market transactions among farmers. We find that joining an iddir network improves households’ access to land, labour and credit transactions. Our findings also hint that iddir networks may crowd-out borrowing from local moneylenders (locally referred as ‘Arata Abedari’), a relatively expensive credit source. These results suggest that non-market institutions can play crucial roles in facilitating market transactions.     

The Impact of Microcredit on Child Education: Quasi-experimental Evidence from Rural China

Abstract

This article assesses causal effects of formal microcredit on children’s educational outcomes by using household panel data (2000 and 2004) in north-west rural China. The unobservables between borrowers and non-borrowers are controlled in static and dynamic regression-discontinuity designs. The static analysis reveals significant positive impact of microcredit on schooling years in 2000 only, and no influence on academic performance for either wave. The dynamic analysis shows progressive treatment effects on both longer schooling years and higher average scores. Formal microcredit improves education in the longer term compared to the short term, and hence may help relaxing the grip of educational poverty traps.     

The Impact of School Meals on School Participation: Evidence from Rural India

This article assesses the effect of transition from monthly distribution of free food grains to the daily provision of free cooked meals to school children on enrolments and attendance in a rural area of India. School panel data allow a difference-in-differences estimation strategy to address possible endogeneity of programme placement. The results suggest that programme transition had a significant impact on improving the daily participation rates of children in lower grades. The average monthly attendance rate of girls in grade one was more than 12 percentage points higher while there was a positive but insignificant effect on grade one boys' attendance rate. The impact on enrolment levels was insignificant.     

Determinants of smallholder landownership: Evidence from south Sulawesi,Indonesia

This article analyses differences in landownership between smallholders using survey data from six villages in a land abundant region in Indonesia. Differences in landholdings are only partially explained by differences in labour availability. Land‐holdings are positively correlated with educational level, and early settlers have more land than late settlers. The hypothesis is put forward that early settlers are wealthier, and some empirical evidence is offered in support. Finally, the paper uses a conditional logit model of land purchases to test whether wealthier households are better able to purchase (additional) land. The results support this hypothesis.     

Bureaucracy and implementation of complex tasks in rapidly developing states: Evidence from Indonesia

Political institutions play key roles in rapidly developing states. This article describes the complex and overlapping responsibilities of Indonesian government institutions and explains how they affect policy design and implementation in two policy arenas: primary education and soil/water conservation. It suggests that the struggles for control over local level implementation between general (territorial) regional government and branch offices of specialized, central ministries seriously constrain performance in these two sectors. Dwight Y. King is associate professor of political science and associate of the Center for Southeast Asian Studies, Northern Illinois University, DeKalb, IL 60115 (internet: dking@niu.edu). He continues use research on how the structures of national bureaucracies and the policies governing them affect civil servants’ behavior and economic development, as well as the political economy of bureaucratic reform.     

Labour Market Impacts of School Expenditure and Class Size: Evidence from China

This study is a first attempt to estimate the impact of school resources on students’ subsequent labour market earnings in China. Combining unprecedented school data from the early 1950s to the 1990s with household survey data in the 2000s, this paper documents that expenditure-per-pupil, a proxy measure of school resources (or quality) has a significant impact on the level of subsequent earnings through its influence on education returns. The positive effect calls for policy intervention aimed at improving education, to be based on the perceived economic return to the quantity as well as the quality components of education.     

The Labour Market Impacts of Immigration to Developing Countries: Evidence from a Registration Campaign in Thailand

Little is known about the labour market impact of immigration to developing countries, because most immigration to developing countries is poorly measured. We use an unusual dataset from a campaign to register irregular migrants to study how immigration has affected wages, employment, and internal migration in Thailand. We allow for endogenous migration, whereby immigrants are disproportionately attracted to areas with higher wages. Our results suggest that immigration sufficient to increase Thailand's total labour force by one per cent would reduce Thai wages by approximately half a per cent. This effect is stronger than is generally found in developed countries. We find no evidence that immigration has reduced Thai employment rates or has affected internal migration by Thais.     

The Role of Empowerment in Agricultural Production: Evidence from Rural Households in Niger

We use new household and individual level WEAI data from the Tahoua region of Niger and estimate a variable coefficient Cobb-Douglas production function in which traditional inputs interact with two human capital variables – empowerment and formal education. Our estimation results reveal that human capital matters for productivity. So much so that it can be considered as technology-changing, significantly affecting a household’s production technology by enhancing returns to equipment. In fact, differentiating households by their status as dual or primary with only an adult female or male reveals that the productivity elasticity of empowerment is large for dual households in which women are the least empowered. Enhancing the empowerment of women in this group of households, by increasing their leadership skills or tenure security, would yield important productivity gains.     

Long-term Impacts of Global Food Crisis on Production Decisions: Evidence from Farm Investments in Indonesia

This paper estimates farmers’ investment response to food price spikes using household panel data collected before and after the 2007/08 food price crisis in Indonesia. We found that an increase in farmers’ terms-of-trade allowed relatively large crop-producing farmers to increase their investments at both extensive and intensive margins. Food price spikes had a significant income effect among farmers whose production surplus is large for market sales. During the food price crisis, large farmers particularly increased machine investments, which saved some labour inputs, pointing to the importance of complementarities between land and machine investments.