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Enfranchising non-citizens: What drives natives’ willingness to share power? J. Comp. Econ. (IF 1.992) Pub Date : 2021-03-26 Anna Maria Koukal, Patricia Schafer, Reiner Eichenberger
Universal suffrage is a core element of democracy. However, in many democratic countries, a large part of the inhabitants are foreigners without suffrage. We analyze the conditions under which domestic citizens are willing to extend suffrage to non-citizen residents. This paper explores a new panel dataset (1992–2016) of Swiss referenda on the enfranchisement of non-citizens. We concentrate on the
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The long-term effects of the slave trade on political violence in Sub-Saharan Africa J. Comp. Econ. (IF 1.992) Pub Date : 2021-03-15 Yu Zhang, Zhicheng Phil Xu, Shahriar Kibriya
This study investigates the long-term legacy of the slave trade on contemporary violence in sub-Saharan Africa. Using a geo-coded disaggregated dataset and exploiting within-country variation in slave trade intensity, we document a robust positive relationship between slave exports and contemporary conflict; the slave trade has long-lasting impacts on ethnic conflict and riots in particular. We examine
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Rules versus norms: How formal and informal institutions shape judicial sentencing cycles J. Comp. Econ. (IF 1.992) Pub Date : 2021-03-08 Christian Dippel, Michael Poyker
Existing research on electoral sentencing cycles consistently finds that elected judges levy longer sentences when they are up for re-election. However, this research finding had previously drawn exclusively on data from four states. Using newly collected sentencing data on seven additional states, we find substantial, and previously un-noted, heterogeneity in the strength of sentencing cycles. This
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Informal pay gaps in good and bad times: Evidence from Russia J. Comp. Econ. (IF 1.992) Pub Date : 2021-03-03 Olivier Bargain, Audrey Etienne, Blaise Melly
Informal work is traditionally large in Russia and has further increased in the recent years. We explore the implications of this shift in terms of wage dynamics. Our characterization is based on the estimation of informal pay gaps at the mean and along the wage distribution, relying on the Russian Longitudinal Monitoring Survey for 2003–2017. Our approach comprises three original features: we rely
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The Dynamics of Institution Building: State Aids, the European Commission, and the Court of Justice of the European Union J. Comp. Econ. (IF 1.992) Pub Date : 2021-03-03 Amanda M. Alves, Eric Brousseau, Timothy Yu-Cheong Yeung
This paper studies the interactions between European Union institutions and the Member States with regard to state aid control. The mandate of the European Commission includes the maintenance and strengthening of economic integration, and as such it may discipline any Member States that undermine the single market. Relying on an original database covering all state aid applications with rulings between
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The puzzling politics of R&D: Signaling competence through risky projects J. Comp. Econ. (IF 1.992) Pub Date : 2021-02-12 Natalia Lamberova
Why do some leaders devote significant funds to research and development (R&D) even though such investments are risky, less visible to the public than many other investments, and typically bear fruit only after the incumbent has already left office? This paper suggests that investing in R&D improves the incumbent's perceived competence among voters. Using a formal model of signaling, survey experiments
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Convergence, divergence, or multiple steady states? New evidence on the institutional development within the European Union J. Comp. Econ. (IF 1.992) Pub Date : 2021-02-10 Linda Glawe, Helmut Wagner
Convergence in institutions and in per capita income across the European Union (EU) Member States are key goals of the European integrations process. Especially in the course of the various EU enlargement waves starting in 2004, it was intensively discussed whether institutional and structural homogeneity are necessary preconditions for real convergence and the smooth functioning of the EU or whether
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The influence of colonialism on Africa's Welfare: An anthropometric study J. Comp. Econ. (IF 1.992) Pub Date : 2021-01-24 Joerg Baten, Laura Maravall
This study presents new evidence on the anthropometric development of 47 countries. Did colonialism have an influence on the biological standard of living of Africans? We find that Africans lost stature upon colonization, even after controlling for a number of different variables and potential sample selectivity bias issues. We analyse various types of colonialism and find that both settler colonies
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The origins of agricultural inheritance traditions J. Comp. Econ. (IF 1.992) Pub Date : 2021-01-23 Thilo R. Huning, Fabian Wahl
We investigate the origins of agricultural inheritance traditions, equal partition and primogeniture. Our case study is the German state of Baden-Württemberg. Our empirical findings suggest that rural inheritance traditions were primarily determined by geography. First, fertile soils allowed splitting of the land among siblings for longer and with fewer conflicts, and hence we find more equal partition
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Touch thee not: Group conflict, caste power and untouchability in rural India J. Comp. Econ. (IF 1.992) Pub Date : 2020-12-29 Indraneel Dasgupta, Sarmistha Pal
We investigate the impact of community power on the practice of untouchability - the avoidance of physical contact – by upper and backward caste Hindus vis-à-vis ‘scheduled’ castes (SCs) in rural India.We hypothesize that an upper or Other Backward caste (OBC) household's propensity to practise untouchability is determined not solely by its own characteristics but, crucially, also by the inter-group
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Markups and Income Inequality: Causal Links, 1975-2011 J. Comp. Econ. (IF 1.992) Pub Date : 2020-12-15 Minsoo Han, Ju Hyun Pyun
Using data for 20 countries during 1975–2011, this study provides new evidence on the association between the lack of competition, measured by an increase in markups, and income inequality. We find that an increase in markups is positively associated with rising income inequality. More interestingly, not only do extra profits from higher markups accrue to the top-income group, but also, within the
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The changing composition of academic majors and wage dynamics: Beyond mean returns J. Comp. Econ. (IF 1.992) Pub Date : 2020-11-01 Natalia Kyui, Natalia Radchenko
This paper studies the effects of the changing composition of academic majors during expansion of higher education on the dynamics of wage distribution. Using a unique dataset constructed from open-ended responses in the Russia Longitudinal Monitoring Survey, we conduct a structural analysis of wage distribution dynamics for higher education graduates over 2002–2016. In addition to the standard mean
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The unintended harms of infrastructure: Opium and road construction in Afghanistan J. Comp. Econ. (IF 1.992) Pub Date : 2020-10-31 Evan Wigton-Jones
This study provides evidence that infrastructure investment can encourage economic activity through illicit pathways. I examine this relationship in the context of Afghanistan, where I show that the construction of the country's largest modern infrastructure project, a 2,200 kilometer highway known as the A1 or Ring Road, led to significant increases in local opium cultivation over the past decade
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Coups, regime transitions, and institutional consequences J. Comp. Econ. (IF 1.992) Pub Date : 2020-10-27 Daniel L. Bennett, Christian Bjørnskov, Stephan F. Gohmann
Coups and regime transitions are events that typically are intended to change the basic institutional framework of a country. Which specific institutions change and the consequences of these changes nevertheless remains largely unknown. Change after a coup or transition implies that some form of political or judiciary barrier has been erected or removed. We therefore focus on what happens to the quality
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Firms and wage inequality in Central and Eastern Europe J. Comp. Econ. (IF 1.992) Pub Date : 2020-10-21 Iga Magda, Jan Gromadzki, Simone Moriconi
We use large linked employer-employee data to analyze wage inequality patterns in Central and Eastern European (CEE) countries between 2002 and 2014. We show that, unlike in many other advanced economies, wage inequality levels have decreased in almost all CEE countries. These reductions in wage inequality resulted from disproportionately large increases in wages at the bottom of the wage distribution
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Voter turnout and intergenerational redistribution J. Comp. Econ. (IF 1.992) Pub Date : 2020-10-09 Michael Klien, Mickael Melki, Andrew Pickering
Electoral reforms that lead to reduced turnout modify the composition of the electorate, potentially overrepresenting specific interests in policy implementation. Intergenerational redistribution tilts in favor of the elderly when they are sufficiently numerous, but in favor of the young rich otherwise. We exploit a natural experiment provided by the repeal of compulsory voting in Austrian parliamentary
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Unveiling the effects of a headscarf ban: Evidence from municipal jobs in Turkey J. Comp. Econ. (IF 1.992) Pub Date : 2020-10-01 Gozde Corekcioglu
Religious conservatism is often associated with patriarchal attitudes and deterioration of women’s rights. This conventional wisdom has motivated ubiquitous policies that limit public expressions of religion and emphasize secular values. This paper demonstrates that a policy change which undermines secularity ends up empowering women. The current article takes advantage of a unique divergence in political
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Trust in government in times of crisis: A quasi-experiment during the two world wars✰ J. Comp. Econ. (IF 1.992) Pub Date : 2020-09-29 Ahmed Skali, David Stadelmann, Benno Torgler
Do crises erode trust in government? To answer this question, we leverage the quasi-experimental setting of the sharply increased military threat to the neutral country of Switzerland during the two world wars as an exogenous shock. In doing so, we exploit a unique feature of Swiss politics: government issuance of pre-referenda voting recommendations. We use constituent adherence to government recommendations
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The politics of experimentation: Political competition and randomized controlled trials J. Comp. Econ. (IF 1.992) Pub Date : 2020-09-16 Cristina Corduneanu-Huci, Michael T. Dorsch, Paul Maarek
This paper provides an analysis of how political factors affect the incidence of the evaluation of public policies, with a focus on Randomized Control Trial (RCT) experiments in international development. We argue that political environments where incumbents face greater electoral competition and smaller ruling margins are more likely to host RCT experiments. Using various data sources for the incidence
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The Washington consensus works: Causal effects of reform, 1970-2015 J. Comp. Econ. (IF 1.992) Pub Date : 2020-09-08 Kevin B. Grier, Robin M. Grier
Traditional policy reforms of the type embodied in the Washington Consensus have been out of academic fashion for decades. However, we are not aware of a paper that convincingly rejects the efficacy of these reforms. In this paper, we define generalized reform as a discrete, sustained jump in an index of economic freedom, whose components map well onto the points of the old consensus. We identify 49
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Growth, mobility and social progress J. Comp. Econ. (IF 1.992) Pub Date : 2020-09-02 Dirk Van de gaer, Flaviana Palmisano
We evaluate social progress on the basis of panel data on individual incomes by comparing the value of social welfare in the observed panel data to its value in a situation where individuals receive their first period income in each period. We derive necessary conditions for the welfare gain to be positive, and show how it can be decomposed in an effect of economic growth, a mobility effect and a cost
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Riding out of a financial crisis: The joint effect of trust and corporate ownership J. Comp. Econ. (IF 1.992) Pub Date : 2020-07-31 Mario Daniele Amore, Mircea Epure
We study how generalized trust shapes the ability of firms with different ownership forms to obtain trade financing and perform during a financial crisis. Exploiting geographic variations in trust across Italian regions and the occurrence of the 2008-09 financial crisis in a difference-in-differences setting, we show that generalized trust makes family firms less able to obtain trade financing during
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More federal legislators lead to more resources for their constituencies: Evidence from exogenous differences in seat allocations J. Comp. Econ. (IF 1.992) Pub Date : 2020-07-25 Marco Frank, David Stadelmann
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Has globalization shrunk manufacturing labor share in transition economies? J. Comp. Econ. (IF 1.992) Pub Date : 2020-07-25 Marjan Petreski
The objective of this paper is to investigate the nexus between the labor share and globalization in transition economies, with a reference to the skill intensity. We put these developments in the context of the structural and reform developments in transition economies. We rely on the predictions of the efficient bargaining model, whereby globalization forces are set to affect workers’ market bargaining
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Marriage traditions and investment in education: The case of bride kidnapping J. Comp. Econ. (IF 1.992) Pub Date : 2020-07-24 Dana Bazarkulova, Janice Compton
The cultural practice of bride kidnapping in Kyrgyzstan may alter the returns to education for young women in an ambiguous direction due to two competing effects. On the one hand, women facing a risk of kidnapping may reduce education investment due to uncertain returns. Alternatively, since kidnapping is less likely to occur while a woman is in school, women may increase education investment to lower
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Government ideology and economic freedom J. Comp. Econ. (IF 1.992) Pub Date : 2020-07-22 Vítor Castro, Rodrigo Martins
This paper tests the widespread belief that right-wing governments tend to promote economic freedom while left-wing ones prefer more control over the economy. Using annual data for 106 countries over the period 1975-2015 and a two-step system GMM estimator, this study shows that right-wing governments are indeed more prone to promote economic freedom and to deregulate the economy. It also finds that
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Which sanctions matter? analysis of the EU/russian sanctions of 2014 J. Comp. Econ. (IF 1.992) Pub Date : 2020-07-21 Matěj Bělín, Jan Hanousek
We use a quasi-natural experiment of reciprocal imposition of trade sanctions by Russia and the EU since 2014. Using UNCTAD/BACI bilateral flows data we take this unique opportunity to analyse both sanctions. In particular, we study the effectiveness of narrow versus broadly defined sanctions, and differences in the effectiveness of sanctions imposed on exports and imports. We show that the Russian
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The power of social mobilisation: The impact of monitoring the 2015 presidential elections in Poland J. Comp. Econ. (IF 1.992) Pub Date : 2020-07-19 Jan Fałkowski, Przemysław J. Kurek
In recent years we have observed an increased engagement of citizen’s movements with elections in democratic polities. Yet our understanding of the influence that this engagement can have over elections is still rather limited. In this paper we study electoral consequences of citizens’ involvement in monitoring 2015 presidential elections in Poland. Our analysis provides strong support for arguments
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The effects of labor regulation on firms and exports: Evidence from Indian apparel manufacturing J. Comp. Econ. (IF 1.992) Pub Date : 2020-07-04 Rana Hasan, Aashish Mehta, Asha Sundaram
We examine the impact of labor regulations on firm outcomes and explore their differential effects on exporters. Building on a conceptual framework developed from standard theory and a detailed qualitative study of India's apparel industry, our econometric analysis exploits establishment-level data on formal Indian garment manufacturers between 2009-10 and 2013-14 and interstate variation in labor
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Human capital accumulation: Evidence from immigrants in low-income countries J. Comp. Econ. (IF 1.992) Pub Date : 2020-06-17 Kanat Abdulla
This paper offers new evidence on the theory of human capital accumulation. The current findings in developed countries have documented that immigrants' earnings growth exceeds that of natives and that immigrants upgrade their occupations over time. Three possible explanations for these observations are suggested in the literature: 1) immigrants accumulate more human capital than natives, 2) immigrants
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Decentralization of firms in a country with weak institutions: Evidence from Russia J. Comp. Econ. (IF 1.992) Pub Date : 2020-06-11 Irina Levina
The paper studies evidence from Russian firms to explore whether the decentralization of firms can be successful under weak institutions. The paper distinguishes between two strategies for decentralization of firms in an environment with weak institutions: decentralization of decision-making authority to professionals hired through open competition (real decentralization) and decentralization to people
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Culture, diversity, and the welfare state J. Comp. Econ. (IF 1.992) Pub Date : 2020-06-10 Klaus Gründler, Sebastian Köllner
We examine how cultural socialization and diversity influence welfare systems. Our sample includes 134 countries (1975-2014). We employ spatial patterns and biological characteristics as instrumental variables for culture. The results show that culture is an important predictor for the generosity of welfare states: welfare provision is higher in countries with loose family ties and individualistic