Foreign aid and oil taxes: helping the poor in oil-rich countries

This paper proposes a theoretical analysis of the joint impact of foreign aid and oil taxes on the revenues of a rich oil importing country (North) and a two-class, oil exporting country (South). Without coordination, oil taxes are strictly higher in the North and the global allocation of oil is inefficient. Moreover, oil taxes in the North extract some of the South's oil rents, undoing the revenue transfers from foreign aid. We show that a policy coordination mechanism reduces inefficiencies and improves global welfar

Community influence as an explanatory factor why Roma children get little schooling

Parents who experience poverty and who want to provide their children with an escape route can be expected to encourage and support their progeny’s education. The evidence that Roma parents behave differently is unsettling. In this paper we test empirically an explanation for that behavior. The explanation is based on a theory (Stark et al. 2018) that can be “borrowed” to rationalize the enforcement of norms of little formal education in underprivileged communities. An analysis of survey data collected in Roma communities in four Central and Eastern European countries lends support to the explanation. The analysis reveals a strong negative correlation between the influence of the Roma community on an individual member’s life and the importance accorded by the individual to formal schooling for children. The correlation is robust to controlling for standard determinants of attitudes towards schooling, such as poverty, unemployment, labor market discrimination, and parents’ educational attainment. The analysis suggests that policy interventions aiming to increase the formal education of Roma children need to reckon with the influence of Roma community norms on individual choices

Does working abroad affect political opinions? Evidence from Moldova

This paper investigates the effects of work experience abroad on political opinions using survey data from Moldova, a former soviet republic caught in an ideological battle between Russia and the West, with high emigration rates to both destinations. Contrarily to studies conducted in Africa or Latin America, we find no effect of past migration on democratic participation or on critical governance assessment. Likewise, no effect is found on domestic policy preferences. The one dimension strongly associated with migration experience is geopolitical preference, whereby return migrants from former Soviet countries are more likely to support closer ties with Russia, while return migrants from Western countries show higher support for EU integration, controlling for economic, demographic and ethnic confounding factors. For identification, we instrument individual migration with district level migrant networks. IV regressions show that only work experience in Western countries affects geopolitical preferences.status: publishe