Department of Economics
University of Illinois at Urbana-Champaign
1407 West Gregory Drive, 214 David Kinley Hall
Urbana, IL 61801
Institutional Affiliation: University of Illinois at Urbana-Champaign
NBER Working Papers and Publications
|November 2018||Long-term and Intergenerational Effects of Education: Evidence from School Construction in Indonesia|
with Richard Akresh, Daniel Halim: w25265
In 1973, the Indonesian government began one of the largest school construction programs ever. We use 2016 nationally representative data to examine the long-term and intergenerational effects of additional schooling as a child. We use a difference-in-differences identification strategy exploiting variation across birth cohorts and regions in the number of schools built. Men and women exposed to the program attain more education, although women’s effects are concentrated in primary school. As adults, men exposed to the program are more likely to be formal workers, work outside agriculture, and migrate. Households with parents exposed to the program have improved living standards and pay more government taxes. Education benefits are transmitted to the next generation. Increased parental edu...
|March 2017||Reevaluating Agricultural Productivity Gaps with Longitudinal Microdata|
with Joan Hamory Hicks, Nicholas Y. Li, Edward Miguel: w23253
Recent research has pointed to large gaps in labor productivity between the agricultural and nonagricultural sectors in low-income countries, as well as between workers in rural and urban areas. Most estimates are based on national accounts or repeated cross-sections of micro-survey data, and as a result typically struggle to account for individual selection between sectors. This paper uses long-run individual-level panel data from two low-income countries (Indonesia and Kenya). Accounting for individual fixed effects leads to much smaller estimated productivity gains from moving into the nonagricultural sector (or urban areas), reducing estimated gaps by over 80%. Per capita consumption gaps are also small once individual fixed effects are included. Estimated productivity gaps do not emer...