Size Matters: The Effect of the Size of Ethnic Groups on Development

Dimico, Arcangelo

doi:10.1111/obes.12145

Cited by 12 publications

(9 citation statements)

References 102 publications

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“…The methods developed by Conley et al (2012) allow us to test the sensitivity of our results to violations of this exogeneity assumption. For this purpose, we estimate the second stage coefficient (γ) and its confidence interval if the exclusion restriction is not exactly valid and π deviates from zero (for prior applications see, e.g., Wang 2013, Dimico 2017, Ager et al 2018, or Nybom 2017. We apply the "union of confidence intervals" approach and assume that the coefficient of the instrument (π) in Eq.…”

Section: Baseline Resultsmentioning

confidence: 99%

Employment effects of payroll tax subsidies

2020

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This paper exploits several reforms of wage subsidies in the framework of the German Minijob program to investigate substitution and complementarity relationships between subsidized and non-subsidized labor demand. We apply an instrumental variables approach and use administrative data on German establishments for the period 1999–2014. Particularly in small establishments (0–9 employees), subsidized Minijob employment comprises large shares of the work force, on average over 40%. For these establishments, robust evidence shows that increasing the subsidization of Minijob employment crowds out non-subsidized employment. Our results imply that Minijob employment in 2014 may have eliminated more than 0.5 million unsubsidized employment relationships just in small establishments. This represents an unintended and harmful consequence of the Minijob subsidy.

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Section: Baseline Resultsmentioning

confidence: 99%

Employment effects of payroll tax subsidies

2020

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“…Table 4 reports the coefficients with political inclusion (column 1) and log nightlight intensity per unit area (column 2) as the dependent variables. Dimico (2016) shows in the context of Africa that the partition of an ethnicity in two countries adversely affects their political representation when the resulting groups are small. However, we show that the effect of how an ethnic group is divided in two democracies on the group's political representation and economic development depends on the electoral system.…”

Section: Identification Resultsmentioning

confidence: 99%

Group Size and Political Representation Under Alternate Electoral Systems

Chaturvedi

Das

2018

SSRN Journal

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We examine the effect of group size of minorities on their representation in national government under majoritarian (MR) and proportional (PR) electoral systems. We first establish a robust empirical regularity using an ethnicity-country level panel data comprising 438 ethno-country minority groups across 102 democracies spanning the period 1946-2013. We show that a minority group's population share has no relation with its absolute representation in the national executive under PR but has an inverted-U shaped relation under MR. The pattern is stable over time and robust to alternate specifications. The developmental outcomes for a group proxied using stable nightlight emissions in a group's settlement area follow the same pattern. We reproduce the main results by two separate identification strategies-(i) instrumenting colony's voting system by that of the primary colonial ruler and, (ii) comparing the same ethnicity across countries within a continent. We argue that existing theoretical framework with a two group set up is not able to explain this pattern. Our proposed model incorporates the spatial distribution of multiple minority groups in a probabilistic voting model and justifies these patterns as equilibrium behavior. The data further validate a critical assumption of the model and its additional comparative static results. Our work highlights that electoral systems can have important effects on power inequality across minorities, and consequently, their well-being.JEL Classification: D72, D78, H11

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“…More recently, two strands have developed that take the information about the spatial distribution of different ethnic groups into account. A first strand uses this information to explain differences in economic outcomes across ethnic homelands (e.g., Michalopoulos and Papaioannou, 2013, Burgess et al, 2015, Dimico, 2017, Hodler and Raschky, 2017, De Luca et al, 2018. A second strand is more macro in nature.…”

Section: Document Thatmentioning

confidence: 99%

Spatial Diffusion of Economic Shocks in Networks

Hodler

2018

SSRN Journal

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The aggregate economic impact of any developmental project depends on its effects within the chosen administrative region as well as its economic spillovers into other regions. However, little is known about how these spillovers propagate through geographic, ethnic and road networks. In this paper, we analyze both theoretically and empirically the role of these networks in the spatial diffusion of local economic shocks. We develop a network model that shows how a district's level of prosperity is related to its position in the network. The network model's firstorder conditions are used to derive an econometric model of spatial spillovers that we estimate using a panel of 5,944 districts from 53 African countries over the period 1997-2013. To identify the causal effect of spatial diffusion, we exploit cross-sectional variation in the location of mineral mines and exogenous time variation in world mineral prices. Our results show that road and ethnic connectivity are particularly important factors for diffusing economic spillovers over longer distances. We then use the estimated parameters from the econometric model to calculate the key player centralities, which determine which districts are key in propagating local economic shocks across Africa. We further show how counterfactual exercises based on these estimates and the underlying network structure can inform us about the potential gains from policies that increase economic activity in specific districts or improve road connectivity between districts.

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Size Matters: The Effect of the Size of Ethnic Groups on Development

Cited by 12 publications

References 102 publications

Employment effects of payroll tax subsidies

Employment effects of payroll tax subsidies

Group Size and Political Representation Under Alternate Electoral Systems

Spatial Diffusion of Economic Shocks in Networks

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