Obstacles to Business, Technology Use, and Firms with Female Principal Owners in Kenya

Data on 778 establishments indicates that firms in Kenya rely on technologies such as computers, generators, and cell-phones to conduct operations when regulations, infrastructure, security, workforce, corruption, and finance pose significant hurdles in the business environment. Obstacles related to regulations, security, and workforce, increase the probability of technology ownership, whereas obstacles related to infrastructure in particular, reduces the probability that firms own technology. Results indicate that while all firms rely on technology in the face of regulatory and other obstacles, those with female principal owners experience net effects that are statistically distinct from those experienced by their counterparts. A gender-of-owner disaggregated Oaxaca-Blinder type decomposition of differences in technology ownership indicates that up to 18% of the total gap is unexplained by differences in measurable characteristics between firms that are female-owned and those that are not, suggesting that female-owned firms may own technology to a higher level than is warranted by their observed covariates.Obstacles to Business, Technology, Kenya, Firms, Female Owners

Got Technology? The Impact of Computers and Cell-phones on Productivity in a Difficult Business Climate: Evidence from Firms with Female Owners in Kenya

Firms in Kenya rely on technologies such as computers, cell-phones, and generators to overcome constraints associated with regulations, infrastructure, security, workforce, corruption, and finance. This study shows that such reliance has significant positive impacts on productivity as measured by value-added per worker, especially for firms with female principal owners. The exogenous component of technology ownership is isolated by using information on the regional presence of missionary schools from Kenya’s colonial past, as well as geographical indicators such as rainfall, changes in forest cover, and average regional elevation. Results indicate that for firms with female owners, technology adoption improves value-added per worker by about 49 percentage points. It is also statistically evident that for such firms, the ownership of technologies such as computers, cell-phones, and generators succeeds in mitigating the costs of business obstacles. For male-owned firms, such patterns are absent.Technology, Computers, Cell-phones, Business Obstacles, Kenya, Firms, Female Owners

Labor Conflict and Foreign Investments: An Analysis of FDI in India

This paper analyzes patterns of foreign direct investment in India. We investigate how labor conflict, credit constraints, and indicators of a state’s economic health influence location decisions of foreign firms. We account for the possible endogeneity of labor conflict variables in modeling the location decisions of foreign firms. This is accomplished by using a state-specific fixed effects framework that captures the presence of unobservables, which may influence investment decisions and labor unrest simultaneously. Results indicate that labor unrest is endogenous across the states of India, and has a strong negative impact on foreign investment.Foreign Direct Investment, Labor Disputes, Developing Countries, India.

The unintended child health consequences of the green revolution in India

While the Green Revolution in India greatly enhanced agricultural production, the enhanced use of fertilisers led to the contamination of surface and ground water. This column analyses the impact of fertiliser agrichemicals in water on infant and child health. It is found that exposure of mothers to these contaminants in the month after conception increases the chances of infant death within a month of birth, and also has long-lasting negative effects on child health

Spatial Decentralization and Program Evaluation: Theory and an Example from Indonesia

This paper proposes a novel instrumental variable method for program evaluation that only requires a single cross-section of data on the spatial intensity of programs and outcomes. The instruments are derived from a simple theoretical model of government decision-making in which governments are responsive to the attributes of places and their populations, rather than to the attributes of individuals, in making allocation decisions across space, and have a social welfare function that is spatially weakly separable, that is, that the budgeting process is multi-stage with respect to administrative districts and sub-districts. The spatial instrumental variables model is then estimated and tested by GMM with a single cross-section of Indonesian census data. The results offer support to the identification strategy proposed.spatial decentralization, program evaluation, instrumental variables, Indonesia

Spatial Decentralization and Program Evaluation: Theory and an Example from Indonesia

This paper proposes a novel instrumental variable method for program evaluation that only requires a single cross-section of data on the spatial intensity of programs and outcomes. The instruments are derived from a simple theoretical model of government decision-making in which governments are responsive to the attributes of places and their populations, rather than to the attributes of individuals, in making allocation decisions across space, and have a social welfare function that is spatially weakly separable, that is, that the budgeting process is multi-stage with respect to administrative districts and sub-districts. The spatial instrumental variables model is then estimated and tested by GMM with a single cross-section of Indonesian census data. The results offer support to the identification strategy proposed.Spatial Decentralization, Program Evaluation, Instrumental Variables, Indonesia

War and women's work : evidence from the conflict in Nepal

This paper examines how Nepal's 1996-2006 civil conflict affected women's decisions to engage in employment. Using three waves of the Nepal Demographic and Health Survey, the authors employ a difference-in-difference approach to identify the impact of war on women's employment decisions. The results indicate that as a result of the Maoist-led insurgency, women's employment probabilities were substantially higher in 2001 and 2006 relative to the outbreak of war in 1996. These employment results also hold for self-employment decisions, and they hold for smaller sub-samples that condition on husband's migration status and women's status as widows or household heads. Numerous robustness checks of the difference-in-difference estimates based on alternative empirical methods provide compelling evidence that women's likelihood of employment increased as a consequence of the conflict.Population Policies,Rural Poverty Reduction,Labor Markets,Regional Economic Development,Gender and Law

Impact of the 2008-2009 Food, Fuel, and Financial Crisis On the Philippine Labor Market

This study examines how the 2008-2009 surges in international food and fuel prices and coinciding global financial crisis impacted the Philippine labor market, with a focus on gendered outcomes. A battery of descriptive statistics and probit regressions based on repeated cross sections of the Philippine Labor Force Survey indicate that both men and women experienced declines in the likelihood of employment, especially in 2008 and in manufacturing. While men’s job losses were limited to wage employment, women lost job opportunities in wage- and self-employment, and they experienced increases in unpaid family work. Real wages fell for men and women, with much of the decline at the upper tails of the wage distribution. If one considers education as a proxy for skill, results suggest that unskilled workers were affected most adversely when the crisis began, especially in terms of employment losses, but as the crisis conditions wore on, skilled workers experienced negative impacts as well, especially in terms of real wage cuts.

Gender Differences in Socioeconomic Status and Health: Evidence from the 2008 Vietnam Household Living Standard Survey

The study provides new evidence on gender differences in educational attainment, labor market status, health status, and land titling in Vietnam. Up-to-date statistical evidence on household well-being in Vietnam is particularly important given the heavy weight the government has placed on meeting the needs of vulnerable members of the population, reducing overall poverty, and improving societal well-being. Vietnam’s government has placed priority emphasis on achieving gender equality in the 2006 Law on Gender Equality. One of the major themes addressed in this report is Vietnam’s demonstrated progress in achieving social development targets. The study also identifies a few areas where female outcomes lag those of men, and suggests policies that might help to reduce the observed gaps.

Learning versus Diversification in Project Choice

We study the issue of project choice when a risk-averse agent must choose whether to invest in two projects of the same type (focus) or of different types (diversification). Projects of the same type are subject to common type-specific shocks. Hence focusing is more risky within each period, but enables faster learning across periods. Optimal project choice involves balancing these two considerations. We demonstrate how an agent's choice of whether to focus or diversify is related to (i) the speed of learning (ii) the type-specific risk and (iii) his risk- aversion and investment horizon. We show that, contrary to intuition, an increase in type-specific risk may lead to a decrease in diversification. Our theory is applicable to occupational choice within households, project choice under group lending, and corporate diversification.Bayesian Learning, Insurance, Risk-Sharing