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Description
This dissertation consists of two essays. The first measures the degree to which schooling accounts for differences in industry value added per worker. Using a sample of 107 economies and seven industries, the paper considers the patterns in the education levels of various industries and their relative value added per worker. Agriculture has notably less schooling and is less productive than other sectors, while a group of services including financial services, education and health care has higher rates of schooling and higher value added per worker. The essay finds that in the case of these specific industries education is important in explaining sector differences, and the role of education all other industries are less defined. The second essay provides theory to investigate the relationship between agriculture and schooling. During structural transformation, workers shift from the agriculture sector with relatively low schooling to other sectors which have more schooling. This essay explores to what extent changes in the costs of acquiring schooling drive structural transformation using a multi-sector growth model which includes a schooling choice. The model is disciplined using cross country data on sector of employment and schooling constructed from the IPUM International census collection. Counterfactual exercises are used to determine how much structural transformation is accounted for by changes in the cost of acquiring schooling. These changes account for small shares of structural transformation in all economies with a median near zero.
ContributorsSchreck, Paul (Author) / Herrendorf, Berthold (Committee member) / Lagakos, David (Committee member) / Schoellman, Todd (Committee member) / Arizona State University (Publisher)
Created2011
Description
Since the global financial crisis of 2007-8, interest in worker-cooperatives and alternative forms of organization has surged. Mondragon, located in the Basque region of Spain, represents the largest federation of worker-cooperatives around the world, consisting of 98 cooperatives and 143 subsidiaries, which earned a total revenue of $14.5 billion in 2019. While previous attempts to establish a similar model have historically reached limited success, Mondragon has achieved a unique balance of remaining economically viable, on the one hand, and staying true to its founding principles of democratic governance, on the other. This paper sets out to analyze the democratic structure and the cooperative culture at the heart of the Mondragon model, as well as the new type of human relationship that it fosters. In particular, this relationship is one in which individual well-being is bound up with communal well-being that avoids the antagonistic clash between the capital and labor.
ContributorsSvejda, Sam (Author) / Simhony, Avital (Thesis director) / McNamara, Peter (Committee member) / Department of Economics (Contributor) / Barrett, The Honors College (Contributor)
Created2021-05
Description
This dissertation consists of three essays that broadly deal with the growth and development of economies across time and space. Chapter one is motivated by the fact that agricultural labor productivity is key for understanding aggregate cross-country income differences. One important proximate cause of low agricultural productivity is the low use of intermediate inputs, such as fertilizers, in developing countries. This paper argues that farmers in poor countries rationally choose to use fewer intermediate inputs because it limits their exposure to large uninsurable risks. I formalize the idea in a dynamic general equilibrium model with incomplete markets, subsistence requirements, and idiosyncratic productivity shocks. Quantitatively, the model accounts for two-thirds of the difference in intermediate input shares between the richest and poorest countries. This has important implications for cross-country productivity. Relative to an identical model with no productivity shocks, the addition of agricultural shocks amplifies per capita GDP differences between the richest and poorest countries by nearly eighty percent. Chapter two deals with the changes in college completion in the United States over time. In particular, this paper develop a dynamic lifecycle model to study the increases in college completion and average IQ of college students in cohorts born from 1900 to 1972. I discipline the model by constructing historical data on real college costs from printed government reports covering this time period. The main finding is that that increases in college completion of 1900 to 1950 birth cohorts are due primarily to changes in college costs, which generate a large endogenous increase in college enrollment. Additionally, evidence is found that supports cohorts born after 1950 underpredicted sharp increases in the college earnings premium they eventually received. Combined with increasing college costs during this time period, this generates a slowdown in college completion, consistent with empirical evidence for cohorts born after 1950. Lastly, the rise in average college student IQ cannot be accounted for without a decrease in the variance of ability signals. This is attributed the increased precision of ability signals primarily to the rise of standardized testing. Chapter three again deals with cross-country income differences. In particular, it is concerned with the fact that cross-country income differences are primarily accounted for by total factor productivity (TFP) differences. Motivated by cross-country empirical evidence, this paper investigates the importance individuals who operate their own firms because of a lack of other job opportunities (need-based entrepreneurs). I develop a dynamic general equilibrium labor search model with with entrepreneurship to rationalize this misallocation across occupations and assess its role for understanding cross-country income differences. Developing countries are assumed to have tighter collateral constraints on entrepreneurs and lower unemployment benefits. Because these need-based entrepreneurs actually have a comparative advantage as workers, they operate smaller and less productive firms, lowering aggregate TFP in developing countries.
ContributorsDonovan, Kevin (Author) / Prescott, Edward C. (Thesis advisor) / Herrendorf, Berthold (Committee member) / Lagakos, David (Committee member) / Schoellman, Todd (Committee member) / Arizona State University (Publisher)
Created2013
Description
This dissertation consists of three essays on education and macroeconomics. The first chapter analyzes whether public education financing systems can account for large differences among developed countries in earnings inequality and intergenerational earnings persistence. I first document facts about public education in the U.S. and Norway, which provide an interesting case study because they have very different earnings distributions and public education systems. An overlapping generations model is calibrated to match U.S. data, and tax and public education spending functions are estimated for each country. The benchmark exercise finds that taxes and public education spending account for about 15% of differences in earnings inequality and 10% of differences in intergenerational earnings persistence between the U.S. and Norway. Differences in private education spending and early childhood education investments are also shown to be quantitatively important. The second chapter develops a life-cycle model to study increases in college completion and average ability of college students born from 1900 to 1972. The model is disciplined with new historical data on real college costs from printed government surveys. I find that increases in college completion for 1900 to 1950 cohorts are due primarily to changes in college costs, which generate large endogenous increases in college enrollment. Additionally, I find strong evidence that post-1950 cohorts under-predicted large increases in the college earnings premium. Modifying the model to restrict perfect foresight of the education premia generates a slowdown in college completion consistent with empirical evidence for post-1950 cohorts. Lastly, I find that increased sorting of students by ability can be accounted for by increasingly precise ability signals over time. The third chapter assesses how structural transformation is affected by sectoral differences in labor-augmenting technological progress, capital intensity, and capital-labor substitutability. CES production functions are estimated for agriculture, manufacturing, and services on post-war U.S. data. I find that sectoral differences in labor-augmenting technological progress are the dominant force behind changes in sectoral labor and relative prices. Therefore, Cobb-Douglas production functions with labor-augmenting technological change capture the main technological forces behind post-war U.S. structural transformation.
ContributorsHerrington, Christopher (Author) / Prescott, Edward C. (Thesis advisor) / Ventura, Gustavo (Thesis advisor) / Herrendorf, Berthold (Committee member) / Schoellman, Todd (Committee member) / Arizona State University (Publisher)
Created2013
Description
Civic engagement is often defined as political activism; to be a part of governmental decision making, the practices thereof, and various efforts of participation in voting. However, civic engagement is also known for its role within non-political work, such as community building and development. Because of the former definition many members of our society have a tendency to not embrace the full potential of their community roles. It is always about who is a Republican, who is a Democrat, who looks better, or who has a better name. Now it must be noted that this is not in absolute, not all members of our society work in this thought process, but many still do. If that doesn't come as a surprise to you, then the simplicity of how you can be an engaged member will. As a student attending Arizona State University at the West campus in Phoenix, Arizona, I have chosen to challenge the traditional view of civic engagement and prepare this development plan for the campus community. Having done so, I not only discovered the paths that one can take to be engaged in such matters, but also continued my role as a civil servant.
ContributorsWaldie, Howard William (Author) / Ackroyd, William (Thesis director) / Smith, Sharon (Committee member) / Alvarez Manninen, Bertha (Committee member) / Barrett, The Honors College (Contributor) / School of Social and Behavioral Sciences (Contributor) / School of Humanities, Arts, and Cultural Studies (Contributor)
Created2015-05
Description
This publication addresses the development of civic engagement programs in the past few decades. While successful in increasing what was perceived as a serious lack of civic engagement among youth, the movement has failed to address a key aspect of civic engagement: political engagement. Although trends have shown that the youth are much more interested in alternative forms of engagement, it is important for the success of democracy and sustaining political structures that the youth are given tools to become engaged in traditional forms of government. This paper, by analyzing data from various academic papers, will look into successful policy initiatives to increase political engagement at universities. Furthermore, the paper will look into current programs at Arizona State University (ASU) based on a criterion created from the academic resources to gauge ASU's standings. The paper will conclude with a proposal for a future ASU program. The program will be an expansion of the current ASU Experience course required of freshmen to implement a political engagement preparatory curriculum.
ContributorsJeong, Yijee (Author) / Woodall, Gina (Thesis director) / Simhony, Avital (Committee member) / Jones, Ruth (Committee member) / Barrett, The Honors College (Contributor) / School of Politics and Global Studies (Contributor) / Sandra Day O'Connor College of Law (Contributor)
Created2013-05
Description
This paper elaborates on the considerations of organizing a democratic deliberation. It addresses issues of topic, length, defining consensus, and how to effectively translate deliberative theory into a concrete, results-producing event. The paper presents this information in the context of the body of academic work on deliberation plus the author's own experience organizing two successful deliberative events.
ContributorsReich, Jennifer Marie (Author) / Crittenden, William J. (Thesis director) / Simhony, Avital (Committee member) / Varrato, Rory (Committee member) / Barrett, The Honors College (Contributor) / Public Participation in Government (Contributor) / School of Politics and Global Studies (Contributor)
Created2013-05
Description
This thesis explores the current standards and the progress being made for civic education in the state of Arizona. To develop a new model, it draws on the programs offered to students in the community of Camden, NJ by the thriving civics department at Rutgers University. Motivated by the current lack of civic resources in Arizona high schools, this research seeks out a practical, community-centered approach to improving the civic education standards. Arizona was one of the first states to make civic education a priority by passing the American Civics Act, but there is still a long way to go to create civically engaged classrooms for students. The proposed plan combines citizenship pedagogy with direct service opportunities, mentorship, and community projects to help students become engaged in their local communities.
ContributorsMiller, Mekenna Moriah (Author) / Simhony, Avital (Thesis director) / Lennon, Tara (Committee member) / School of Public Affairs (Contributor) / School of Social Transformation (Contributor) / School of Politics and Global Studies (Contributor, Contributor, Contributor) / Barrett, The Honors College (Contributor)
Created2020-05
Description
There is a growing consensus that environmental hazards and changing weather patterns disproportionately affect the poor, vulnerable, minority communities. My dissertation studies the nature of risk faced by vulnerable groups of individuals, how these risks affect their labor choice, income, consumption, and migration patterns. In Chapter 1, I study how seniors of different racial and income groups respond to information about hazardous waste sites in their neighborhood and their cleanup process. I find white seniors tend to move out at a higher rate when informed about the presence of a waste site as well as when the site is cleaned up compared to non-white seniors. This suggests that neighborhood gentrification exhibits inertia in the manifestation after the cleanup of Superfund sites. I find an assortative matching of seniors to neighborhoods based on their race and income, reinforcing findings in the environmental justice literature. Chapter 2 documents the effect of drought on labor choices, income, and consumption of rural households in India. I find that household consumption, as well as agricultural jobs, declines in response to drought. Further, I find that these effects are mediated by job skills and land ownership. Specifically, I find that households with working members who have completed primary education account for most of the workers who exit the agricultural sector. In contrast, I find that households with farmland increase their agricultural labor share post-drought. Cultural norms, relative prices, and land market transaction costs provide potential explanations for this behavior. Chapter 3 builds a simple model of household labor allocation based on reduced-form evidence I find in chapter 2. Simulation of the calibrated model implies that projected increases in the frequency of droughts over the next 30 years will have a net effect of a 1\% to 2\% reduction in agricultural labor. While small in percentage terms, this implies that 2.5 to 5 million individuals would leave agriculture. An increase in drought will also increase the size of the manufacturing wage subsidy needed to meet the goals of `Make in India’ policy by 20\%. This is driven by the need to incentivize landowners to reduce farm labor.
ContributorsBasu, Sayahnika (Author) / Kuminoff, Nicolai (Thesis advisor) / Bishop, Kelly (Thesis advisor) / Herrendorf, Berthold (Committee member) / Mueller, Valerie (Committee member) / Murphy, Alvin (Committee member) / Arizona State University (Publisher)
Created2021
Description
This dissertation consists of two essays with a macroeconomic approach to economic development. These essays explore specific barriers that prevent economic agents from exploiting opportunities across regions or sectors in developing countries, and to what extent the observed allocations are inefficient outcomes or just an efficient response to economic fundamentals and technological constraints.
The first chapter is motivated by the fact that a prominent feature of cities in developing countries is the existence of slums: locations with low housing-quality and informal property rights. This paper focuses on the allocation of land across slums and formal housing, and emphasizes the role of living in central urban areas for the formation of slums. I build a quantitative spatial general equilibrium model to study the aggregate effects of anti-slum policies and use microdata from India for the quantitative implementation. According to my findings, demolishing slums in central urban areas leads to a decrease in welfare, aggregate labor productivity, and urban population. In contrast, decreasing formal housing distortions in India to the U.S. level increases the urban population share by 20% and labor productivity by 2.4%, and reduces the share of the urban population living in slums by 19%.
The second chapter is motivated by the fact that labor productivity gaps between rich and poor countries are much larger for agriculture than for non-agriculture. Using detailed data from Mexican farms, this paper shows that value added per worker is frequently over two times larger in cash crops than in staple crops, yet most farmers choose to produce staples. These findings imply that the agricultural productivity gap is actually a staple productivity gap and understanding production decisions of farmers is crucial to explain why labor productivity is so low in poor countries. This paper develops a general equilibrium framework in which subsistence consumption and interregional trade costs determine the efficient selection of farmers into types of crops. The quantitative results of the model imply that decreasing trade costs in Mexico to the U.S. level reduces the ratio of employment in staple to cash crops by 17% and increases agricultural labor productivity by 14%.
The first chapter is motivated by the fact that a prominent feature of cities in developing countries is the existence of slums: locations with low housing-quality and informal property rights. This paper focuses on the allocation of land across slums and formal housing, and emphasizes the role of living in central urban areas for the formation of slums. I build a quantitative spatial general equilibrium model to study the aggregate effects of anti-slum policies and use microdata from India for the quantitative implementation. According to my findings, demolishing slums in central urban areas leads to a decrease in welfare, aggregate labor productivity, and urban population. In contrast, decreasing formal housing distortions in India to the U.S. level increases the urban population share by 20% and labor productivity by 2.4%, and reduces the share of the urban population living in slums by 19%.
The second chapter is motivated by the fact that labor productivity gaps between rich and poor countries are much larger for agriculture than for non-agriculture. Using detailed data from Mexican farms, this paper shows that value added per worker is frequently over two times larger in cash crops than in staple crops, yet most farmers choose to produce staples. These findings imply that the agricultural productivity gap is actually a staple productivity gap and understanding production decisions of farmers is crucial to explain why labor productivity is so low in poor countries. This paper develops a general equilibrium framework in which subsistence consumption and interregional trade costs determine the efficient selection of farmers into types of crops. The quantitative results of the model imply that decreasing trade costs in Mexico to the U.S. level reduces the ratio of employment in staple to cash crops by 17% and increases agricultural labor productivity by 14%.
ContributorsRivera Padilla, Alberto (Author) / Schoellman, Todd K. (Thesis advisor) / Herrendorf, Berthold (Thesis advisor) / Ferraro, Domenico (Committee member) / Arizona State University (Publisher)
Created2019