World Bank Economic Review

doi:http://dx.doi.org/10.1596/39236

Journal:
World Bank Economic Review

ISSN

1564-698X

Publisher

Oxford University Press for the World Bank

The World Bank Economic Review publishes and disseminates innovative theoretical and empirical research that identifies, analyzes, measures, and evaluates the macro and micro-economic forces that promote or impede economic development. It aims to provide the knowledge necessary for designing, implementing, and sustaining effective development policies in low and middle income countries.

The World Bank Economic Review is aimed at readers familiar with economic theory and analysis but not necessarily proficient in advanced mathematical or econometric techniques. Material comes from work conducted by World Bank staff and consultants, as well as outside researchers.

Articles are reviewed by three referees, one from the World Bank and two from outside the institution.

Published three times per year 1996 to Present

Editors: Eric Edmonds, Nina Pavcnik

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Search Results

Now showing 1 - 10 of 598

Religious Leaders’ Compliance with State Authority: Experimental Evidence from COVID-19 in Pakistan
(Published by Oxford University Press on behalf of the World Bank, 2024-05-21) Vyborny, Kate
A randomized controlled trial in Pakistan tests whether one-on-one engagement with community religious leaders can encourage them to instruct congregants to follow government regulations. Treated religious leaders are 25 percent more likely to comply with government requirements to tell congregants they should wear a mask to prevent COVID transmission when attending prayers. Treatment effects do not depend on the religious content of the message. Effects are driven by respondents who already understand the mechanics of COVID transmission at baseline, suggesting the treatment does not work by correcting basic knowledge about the disease, but rather through a mechanism of persuasion.
Infrastructure and Structural Change in Africa
(Published by Oxford University Press on behalf of the World Bank, 2024-03-08) Herrera Dappe, Matías; Lebrand, Mathilde
Past investments in electricity, Internet, and road infrastructure, in isolation and bundled, have contributed to structural transformation and economic development in Africa. Using new data on the expansion of the road, electricity, and Internet networks over the past two decades, the paper shows that having access to both paved roads and electricity has led to a significant reallocation of labor from agricultural to both manufacturing and services. Adding access to fast Internet has had a major impact on structural change, with an even larger impact on reallocating labor away from agriculture. The paper then uses a spatial general-equilibrium model to quantify the impacts of future regional transport investments, bundled with electricity and Internet investments, on economic development in countries in the Horn of Africa and Lake Chad region.
Heuristics on Call: The Impact of Mobile-Phone-Based Business-Management Advice
(Published by Oxford University Press on behalf of the World Bank, 2024-02-22) Cole, Shawn; Joshi, Mukta; Schoar, Antoinette
There is growing evidence that business training for micro-entrepreneurs can be effective. However, in-person training can be expensive and imposes costs on the target beneficiaries. This paper presents the results of a two-site randomized evaluation of a light-touch, mobile-phone-based business-training service for microentrepreneurs in India and the Philippines. The results show that the training had a statistically significant impact on the adoption of improved business practices, with an increase of 0.06 to 0.12 standard deviation points when considering a binary indicator of business practices. The study finds no evidence of impacts on business sales or profits, though the confidence intervals are wide enough to include meaningful effect sizes (positive or negative). These results suggest that mobile-phone-based training can be a cost-effective and scalable way to impart business skills to micro-entrepreneurs.
Catch-Up Growth and Inter-industry Productivity Spillovers: Evidence from Trade Data
(Published by Oxford University Press on behalf of the World Bank, 2024-01-30) Bolhuis, Marijn A.
Where and when does export-led growth work This paper estimates the importance of inter-industry productivity spillovers for the export-led growth of developing countries. My empirical strategy is based on a standard quantitative trade model that features sector-level gravity in trade flows. Applying the framework to four decades of trade data, I find clear evidence of spillovers, which are larger for skill-intensive sectors. The estimates imply that patterns of sectoral specialization play a quantitatively important role in accounting for the slow convergence of labor productivity in tradable sectors. Quantitative exercises suggest that export-led growth works for poorer countries with an initial comparative advantage in manufacturing, as these countries can use foreign demand from richer countries to reallocate labor towards sectors with high spillovers.
How Much Are Government Jobs in Developing Countries Worth?
(Published by Oxford University Press on behalf of the World Bank, 2024-01-22) Mangal, Kunal
Government jobs in developing countries are valuable not just because they pay relatively higher wages, but also because they provide many valuable amenities. How does the value of these amenities compare with the nominal wage itself The observed search behavior of candidates preparing for competitive exams for government jobs is used to infer a lower bound on the total value of a government job, including amenities. Based on a sample of 147 candidates preparing for civil service exams in Pune, India, the amenity value of a government job is estimated to comprise at least two-thirds of total compensation. The high amenity value is not driven by misinformed beliefs about the nominal wage, nor by a high value placed on the process of studying itself. Insights from focus group discussions help explain which government job amenities are most valued in this setting.
Job Loss and Household Labor Supply Adjustments in Developing Countries: Evidence from Argentina
(Published by Oxford University Press on behalf of the World Bank, 2024-01-17) Ciaschi, Matias; Guido Neidhofer
Using longitudinal data for Argentina, this paper estimates the labor supply reaction of spouses and children, as well as the interactions between them, following the job loss of their husband or father. The findings show that job loss by the household head has a positive and significant impact on the labor supply of other household members. However, it increases the likelihood of spouses to switch to informal and downgraded employment, and of children to drop out from education. While effects are stronger among vulnerable households, coverage of social security does not provide enough support in coping with unemployment shocks. Mothers’ labor participation, however, may allow their daughters to continue their education.
The Causal Effect of Early Marriage on Women's Bargaining Power: Evidence from Bangladesh
(Published by Oxford University Press on behalf of the World Bank, 2024-01-09) Tauseef, Salauddin; Sufian, Farha Deba
Early marriage restrains women’s agency and bargaining strength in post marital households, impairing their ability to make meaningful contributions to household decision making. This paper employs a comprehensive measure of women’s empowerment in the domestic and productive spheres, and isolates the causal effect of age at marriage, instrumented by age at menarche, on their bargaining strength, using nationally representative data from Bangladesh. Results suggest that delayed marriages result in significantly higher empowerment scores and probability of being empowered for women, because of higher likelihood in achieving adequacy in their autonomy in agricultural production, control over income, ownership of assets and rights in those assets, and ability to speak in public. Favorable impacts of delayed marriage are also found on women’s freedom of mobility, fertility choices, and their ability to decide on household expenses and investments, with the impacts likely coming via improvements in education and labor market outcomes when women married later.
Crime and Gender Segregation: Evidence from the Bogota 'Pico y Genero' Lockdown
(Published by Oxford University Press on behalf of the World Bank, 2024-01-08) Knight, Brian; Ponce de Leon, Maria Mercedes; Tribin, Ana
The city of Bogota implemented a lockdown during the pandemic under which only men were allowed out on odd days and only women were allowed out on even days. Crime rates in Bogota increased, relative to a synthetic Bogota and relative to the pre-period, during this gender-based lockdown. Moreover, this increase is driven by more crime on men-only days and, more specifically, more robberies with male victims on men-only days. There is no evidence that higher crime rates on men-only days are offset by lower crime rates on women only days. In fact, there is evidence of some increases in crimes with female victims on women-only days. There was an increase in robberies involving female victims on women-only days during the second half of the lockdown, when some restrictions were eased and more men, and thus more potential perpetrators, were on the streets. Overall, the gender-based lockdown, if anything, increased crime.
Effect of Moderate and Radical Rules on High-Caste Behavior and Norms in India
(Published by Oxford University Press on behalf of the World Bank, 2024-01-04) Govindan, Pavithra
Development and legal researchers hypothesize that a moderate law may be more effective than a radical one in changing behavior. This study tests this hypothesis in the context of discriminatory sharing norms practiced by high-caste individuals against low-caste individuals in India. The study employs a lab-in-the-field experiment in which it influences (a) high-caste participants’ social norms of sharing money with a low-caste participant and (b) introduces either a moderate or a radical rule, that is, a rule that is closer or further away from the social norm and requires high-caste participants to share a minimum amount of their money with the low- caste participant. Breaking the rule entails incurring a small fine. This study finds that the effectiveness of the moderate versus radical rule in changing behavior and norms depends on the status quo social norm. This paper provides causal empirical evidence on how social norms influence laws’ effectiveness in inducing behavioral and norm change.
Removing Barriers to Entry in Medicine: Evidence from Pakistan
(Published by Oxford University Press on behalf of the World Bank, 2024-01-03) Aqeel, Fatima
In 1992, Pakistan equalized admissions criteria for women and men applying to medical schools, causing a rapid increase in the female share of medical graduates. Using birth cohort variation, I find that equalizing admissions criteria increased employment among female doctors by 21 percentage points and among doctors overall by 9 percentage points, even though female doctors are less likely to be employed than male doctors. Earnings for male medical graduates increased as lower ability males were crowded out. The 1992 reform led to increased gender diversification in a wide range of medical specialties, but it also concentrated doctors in urban districts where women prefer to practice.