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  • 1
    Online Resource
    Online Resource
    Washington, D.C : The World Bank
    Language: English
    Pages: 1 Online-Ressource (47 pages)
    Parallel Title: Erscheint auch als Ulate, Mauricio Labor Market Effects of Global Supply Chain Disruptions
    Keywords: COVID Impact On Labor Market ; Downward Nominal Wage Rigidity ; Macroeconomics and Economic Growth, Rural Labor Markets, Supply Chain Disruption ; Pandemic Labor Market Impact ; Rural Development ; Social Protections and Labor ; Trade Cost ; US Labor Force Participation Decline
    Abstract: This paper examines the labor market consequences of recent global supply chain disruptions induced by COVID-19. Specifically, it considers a temporary increase in international trade costs similar to the one observed during the pandemic and analyzes its effects on labor market outcomes using a quantitative trade model with downward nominal wage rigidities. Even omitting any health-related impacts of the pandemic, the increase in trade costs leads to a temporary but prolonged decline in U.S. labor force participation. However, there is a temporary increase in manufacturing employment as the United States is a net importer of manufactured goods, which become costlier to obtain from abroad. By contrast, service and agricultural employment experience temporary declines. Nominal frictions lead to temporary unemployment when the shock dissipates, but this depends on the degree of monetary accommodation. Overall, the shock results in a 0.14 percent welfare loss for the United States. The impact on labor force participation and welfare across countries varies depending on the initial degree of openness and sectoral deficits
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  • 2
    Language: English
    Pages: 1 Online-Ressource (39 pages)
    Parallel Title: Erscheint auch als Gomez, Maria DelMar The Economic Effects of Market Integration in the Western Balkans
    Keywords: European Union Accession ; International Economics and Trade ; Quantitative Spatial Models ; Regional Integration ; Trade Facilitation ; Western Balkans
    Abstract: In the Western Balkans, trade and transport policy reforms that reduce waiting time at the border by just three hours are equivalent to removing a value-based tariff of 2 percent. Reform gains are maximized when they are coordinated across economies and implemented jointly: cross-border coordination in the implementation of the package of national single window and other trade facilitation reforms would generate 8 percent higher gains than if each economy were to carry out the reforms autonomously. The impacts of trade reforms and improvements in road infrastructure would be further amplified if Western Balkan economies belonged to the European Union, which would result in an additional 6 percent boost to welfare. Moreover, the accession of Western Balkan economies to the European Union would have positive spillover welfare effects for countries such as Croatia, Bulgaria, Romania, and Hungary, and negligible effects for other EU members
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  • 3
    Language: English
    Pages: 1 Online-Ressource (74 pages)
    Parallel Title: Erscheint auch als Jedwab, Remi The Effects of Climate Change in the Poorest Countries: Evidence from the Permanent Shrinking of Lake Chad
    Keywords: Adaptation ; Adaptation To Climate Change ; Agriculture ; Aridification ; Climate Change ; Climate Change and Agriculture ; Ecosystems and Natural Habitats ; Environment ; Land Supply ; Land Use ; Natural Disasters ; Rural Decline ; Shrinkage of Lakes ; Social Aspects of Climate Change ; Social Development ; Water Supply
    Abstract: Empirical studies of the economic effects of climate change largely rely on climate anomalies for causal identification purposes. Slow and permanent changes in climate-driven geographical conditions, that is, climate change as defined by the Intergovernmental Panel on Climate Change, have been relatively less studied, especially in Africa, which remains the most vulnerable continent to climate change. This paper focuses on Lake Chad, which used to be the 11th largest lake in the world. Lake Chad, which is the size of El Salvador, Israel, or Massachusetts, slowly shrank by 90 percent for exogenous reasons between 1963 and 1990. While the water supply decreased, the land supply increased, generating a priori ambiguous effects. These effects make the increasing global disappearance of lakes a critical trend to study. For Cameroon, Chad, Nigeria, and Niger-25 percent of Sub-Saharan Africa's population- the paper constructs a novel data set tracking population patterns at a fine spatial level from the 1940s to the 2010s. Difference-in-differences show much slower growth in the proximity of the lake, but only after the lake started shrinking. These effects persist two decades after the lake stopped shrinking, implying limited adaptation. Additionally, the negative water supply effects on fishing, farming, and herding outweighed the growth of land supply and other positive effects. A quantitative spatial model used to rationalize these results and estimate aggregate welfare losses, which accounts for adaptation, shows overall losses of about 6 percent. The model also allows studying the aggregate and spatial effects of policies related to migration, land use, trade, roads, and cities
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  • 4
    Online Resource
    Online Resource
    Washington, D.C : The World Bank
    Language: English
    Pages: 1 Online-Ressource (87 pages)
    Parallel Title: Erscheint auch als Zarate, Roman D Spatial Misallocation, Informality, and Transit Improvements: Evidence from Mexico City
    Keywords: Access To Employment ; Allocative Efficiency ; Formal Economy ; Informal Urban Economy ; Informality ; Inter-Urban Roads and Passenger Transport ; Labor Market Informality ; Labor Markets ; Public Transportation ; Social Protections and Labor ; Spatial Misallocation ; Transport ; Urban Infrastructure ; Urban Transport ; Urban Transport Infrastructure
    Abstract: This paper proposes a new mechanism to explain resource misallocation in developing countries: the high commuting costs within cities that prevent workers from accessing formal employment. To test this mechanism, the paper combines a rich collection of microdata and exploits the opening of new subway lines in Mexico City. The findings show that transit improvements reduce informality by 7 percent in areas near the new stations. The paper develops a spatial model that accounts for the direct effects of infrastructure in perfectly economies and allocative efficiency. Changes in allocative efficiency driven by workers' reallocation to the formal sector amplify the gains by 20-25 percent
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