Empirical studies of the relationship between school inputs and test scores typically do not account for household responses to changes in school inputs. Evidence from India and Zambia shows that student test scores are higher when schools receive unanticipated grants; but there is no impact of grants that are anticipated. We show that the most likely mechanism for this result is that household...

Remittances and Income Smoothing Due to inadequate savings and binding borrowing constraints, income volatility can make households in developing countries particularly susceptible to economic hardship. We examine the role of remittances in either alleviating or increasing household income volatility using Mexican household level data over the 2000 through 2008 period. We correct for reverse ca...

We study the long-term effect of becoming a refugee on employment, income and later mobility. After the World War II, Finland ceded a tenth of its land area to the Soviet Union. The entire population in the ceded areas were settled into the remaining parts of the country. Using individual-level panel data, we find that forced migration increased longterm income. The effect is strongest among me...

Most risk-sharing tests on developing country data are conducted at the level of the village; generally, the full risk-sharing hypothesis is rejected. This paper uses detailed data on all insurance networks within a village in Tanzania; networks are not clustered but largely overlapping. We test whether full risk-sharing occurs within these networks. While village level full-insurance cannot be...

Regional inequality is severe in China since regional development is uneven due to various initial conditions and government policies. We employ unit root tests allowing for structural breaks to alternative inequality measures from 1952 to 2000. Empirical results indicate that (1) the regional inequality is trend stationary with structural breaks rather than follow a random walk. Thus, ignoring...

this paper aims to analyze the relationship among the employee, the employer, and the government with the help of game theory. the game among these three players is of the sort of static games with complete information and the strategies used by each player have been determined in the figure of tending to change the current situation and tending to keep it. the equilibrium among this three play...

This paper challenges the conventional wisdom that income and consumption inequality in Poland increased substantially following the economic transition in 1989–90. Using microdata from the 1985–92 Household Budget Surveys, we find that overall income inequality increased in 1989 but subsequently declined to pretransition levels. The distribution of consumption reveals a similar pattern. Social...

The Todaro Paradox Revisited The Todaro Paradox states that policies aimed at reducing urban unemployment are bound to backfire: they will raise rather than reduce urban unemployment. The aim of this paper is to reexamine this paradox in the context of efficiency wage and search-matching models. For that, we study a policy that consists in decreasing the urban unemployment benefit. In an effici...

I evaluate a reform in India which sought to provide a second teacher to all one-teacher primary schools. The central government paid for 140,000 teachers, which is 8% of the pre-reform stock of primary-level teachers. I find that less than half of these teachers were sent to the intended place. Additionally, teachers per school did not increase and class size did not decrease. The only effect ...