Access to smartphones and mobile internet is increasingly necessary to participate in the modern economy. Yet women significantly lag men in digital access, especially in lower-income settings with gender gaps that span other dimensions - and where digital gaps threaten to deepen existing analog inequities. We study the short- and long-term effects of a large-scale state-sponsored program in India that aimed to close digital gender gaps by transferring free smartphones to women while constructing 4G towers to bring rural areas online. The program was well implemented, reversing gender gaps in smartphone ownership in the short run. However, many women lost ownership and gender gaps in use quickly worsened as men made use of the new phones. Nearly 5 years after the program began, we find limited evidence of persistent effects across a range of outcomes, including phone ownership and use, gender norms, access to information, and local economic activity, although we do find some evidence of sectoral reallocation in the labor market. Despite widespread increase in smartphone adoption across households, digital gender gaps persist and were not affected by the program. Our findings suggest that in gender-unequal, resource-constrained settings, addressing affordability alone may not close digital gender gaps.
The extent to which women participate in the labor market and have access to formal employment differs greatly across Indian states. In this paper we build on the methodology developed by Hsieh, Hurst, Jones, and Klenow (2019) to estimate the productivity consequences of such differences. Using rich microdata on occupational sorting and earnings, our theory allows to separately identify labor demand distortions (e.g., discrimination in hiring for formal jobs) from labor supply distortions (e.g., frictions that discourage women’s labor force participation). We find that both demand distortions and supply distortions are negatively related to state-level economic development. Equalizing distortions across Indian states could raise state-level productivity by up to 15%.
We derive a small open economy (SOE) as the limit of an economy as the number or size of its trading partners goes to infinity and trade costs also go to infinity. We obtain this limit in the Armington, Eaton–Kortum, Krugman, and Melitz models. In all cases, the trade of the SOE with the foreign countries approaches a finite limit, and the domestic expenditure share for the SOE approaches a limit that is not zero or unity. The foreign countries can be either infinitely many SOEs, or alternatively, one or many large countries with domestic expenditure shares that approach unity. We illustrate the usefulness of this framework by obtaining a formula for the optimal tariff in the SOE – depending on the elasticity of domestic wages with respect to the tariff – that is consistent with all models.
Two years prior to elections, two-thirds of Delhi municipal councillors learned they had been randomly chosen for a preelection newspaper report card. Treated councillors in high-slum areas increased pro-poor spending, relative both to control counterparts and treated counterparts from low-slum areas. Treated incumbents ineligible to rerun in home wards because of randomly assigned gender quotas were substantially likelier to run elsewhere only if their report card showed a strong pro-poor spending record. Parties also benefited electorally from councillors' high pro-poor spending. In contrast, in a cross-cut experiment, councillors did not react to actionable information that was not publicly disclosed.
The US-China trade war created net export opportunities rather than simply shifting trade across destinations. Many "bystander" countries grew their exports of taxed products into the rest of the world (excluding the United States and China). Country-specific components of tariff elasticities, rather than specialization patterns, drove large cross-country variation in export growth of tariff-exposed products. The elasticities of exports to US-Chinese tariffs identify whether a country's exports complement or substitute the United States or China and its supply curve's slope. Countries that operate along downward-sloping supplies whose exports substitute (complement) the United States and China are among the larger (smaller) beneficiaries of the trade war.
Does economic growth close labor market-linked gender gaps that disadvantage women? Conversely, do gender inequalities in the labor market impede growth? To inform these questions, we conduct two analyses. First, we estimate regressions using data on gender gaps in a range of labor market outcomes from 153 countries spanning two decades (1998-2018). Second, we conduct a systematic review of the recent economics literature on gender gaps in labor markets, examining 16 journals over 21 years. Our empirical analysis demonstrates that growth is not a panacea. While economic gender gaps have narrowed and growth is associated with gender gap closures specifically in incidence of paid work, the relationship between growth and labor market gaps is otherwise mixed, and results vary by specification. This result reflects, in part, the gendered nature of structural transformation, in which growth leads men to transition from agriculture to industry and services while many women exit the labor force. Disparities in hours worked and wages persist despite growth, and heterogeneity in trends and levels between regions highlight the importance of local institutions. To better understand whether gender inequalities impeded growth, we explore a nascent literature that shows that reducing gender gaps in labor markets increases aggregate productivity. Our broader review highlights how traditional explanations for gender differences do not adequately explain existing gaps and how policy responses need to be sensitive to the changing nature of economic growth. We conclude by posing open questions for future research.
We quantify the effects of the political development cycle – the fluctuations between the left (Maoist) and the right (pragmatist) development policies – on growth and structural transformation of China in 1953-1978. The left policies prioritized structural transformation towards non-agricultural production and consumption at the cost of agricultural development. The right policies prioritized agricultural consumption through slower structural transformation. The imperfect implementation of these policies led to large welfare costs of the political development cycle in a distorted economy undergoing a structural change.
Less than 30% of people in Africa received a dose of the COVID-19 vaccine even 18 months after vaccine development. Here, motivated by the observation that residents of remote, rural areas of Sierra Leone faced severe access difficulties, we conducted an intervention with last-mile delivery of doses and health professionals to the most inaccessible areas, along with community mobilization. A cluster randomized controlled trial in 150 communities showed that this intervention with mobile vaccination teams increased the immunization rate by about 26 percentage points within 48–72 h. Moreover, auxiliary populations visited our community vaccination points, which more than doubled the number of inoculations administered. The additional people vaccinated per intervention site translated to an implementation cost of US $33 per person vaccinated. Transportation to reach remote villages accounted for a large share of total intervention costs. Therefore, bundling multiple maternal and child health interventions in the same visit would further reduce costs per person treated. Current research on vaccine delivery maintains a large focus on individual behavioural issues such as hesitancy. Our study demonstrates that prioritizing mobile services to overcome access difficulties faced by remote populations in developing countries can generate increased returns in terms of uptake of health services.
We document strong skill matching in Turkish firms’ production networks. Additionally, in the data, export demand shocks from rich countries increase firms’ skill intensity and their trade with skill-intensive domestic partners. We explain these patterns using a quantitative model with heterogeneous firms, quality choices, and endogenous networks. A counterfactual economy-wide export demand shock of 5% leads both exporters and nonexporters to upgrade quality, raising the average wage by 1.2%. This effect is nine times the effect in a scenario without interconnected quality choices. We use the model to study the conditions for the success of export promotion policies.
This paper concerns technology escaping from the United States and how much we should be concerned about it. This topic appears frequently in news articles, with the presumption that we should be very concerned. Since technology is non rival, maybe we shouldn’t be too concerned. Even after it’s escaped, we still have it. But, given security concerns, maybe we should be concerned about some of these technologies escaping. I applaud the authors for bringing rigorous analysis to this contentious issue.
Climate policies vary widely across countries, with some countries imposing stringent emissions policies and others doing very little. When climate policies vary across countries, energy-intensive industries have an incentive to relocate to places with few or no emissions restrictions, an effect known as leakage. Relocated industries would continue to pollute but would be operating in a less desirable location. We consider solutions to the leakage problem in a simple setting where one region of the world imposes a climate policy and the rest of the world is passive. We solve the model analytically and also calibrate and simulate the model. Our model and analysis imply: (1) optimal climate policies tax both the supply of fossil fuels and the demand for fossil fuels; (2) on the demand side, absent administrative costs, optimal policies would tax both the use of fossil fuels in domestic production and the domestic consumption of goods created with fossil fuels, but with the tax rate on production lower due to leakage; (3) taxing only production (on the demand side), however, would be substantially simpler and almost as effective as taxing both production and consumption, because it would avoid the need for border adjustments on imports of goods; and (4) the effectiveness of the latter strategy depends on a low foreign elasticity of energy supply, which means that forming a taxing coalition to ensure a low foreign elasticity of energy supply can act as a substitute for border adjustments on goods.
A currency’s essential feature is to be a medium of exchange. This study explores the potential of cryptocurrencies to be used in daily transactions in El Salvador, the first country to make bitcoin legal tender. The government’s “big push” introduced “Chivo Wallet,” a digital wallet sharing features with Central Bank Digital Currencies (CBDCs), with perks to use it for trading bitcoins and US dollars. Through a nationally representative, face-to-face survey of 1800 households and blockchain data encompassing all Chivo Wallet transactions, we document a pattern of low and decreasing usage of digital payments and bitcoin. Privacy and security concerns are key adoption barriers, which speaks to a policy debate on crypto and CBDCs with anonymity at its core. Additionally, we estimate Chivo Wallet’s adoption cost and complementarities among adopters.
Conditional cash transfer (CCT) programs aim to reduce poverty or advance social goals by encouraging desirable behavior that recipients under-invest in. An unintended consequence of conditionality may be the distortion of recipients’ behavior in ways that lower welfare. We first illustrate a range of potential distortions arising from CCT programs around the world. We then show that in the simple case where a CCT causes low return participants to select into a behavior, and social returns and private perceived returns are aligned, transfer size plays an important role: the larger the transfer, the stronger the distortion becomes, implying that (i) there is an optimal transfer size for such CCTs, and (ii) unconditional cash transfers (UCTs) may be better than CCTs when the transfer amount is large. We provide empirical evidence consistent with these claims by studying a cash transfer program conditional on seasonal labor migration in rural Indonesia. In line with theory, we show that when the transfer size exceeds the amount required for travel expenses, distortionary effects dominate and migration earnings decrease.