structural estimation
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Captive suppliers? What low supplier prices really mean in global supply chains
Low prices paid to suppliers in global supply chains can raise concerns about unequal sharing of gains from exporting. New research on India’s garment sector shows that these low prices can reflect both mutually beneficial agreements and surplus capt...
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Why do many firms start informal before formalising a few years later?
Many formal firms in sub-Saharan Africa only register after operating informally for a few years in order to grow and overcome financial constraints. Evidence from Nigeria suggests that taxes and enforcement – rather than registration costs alone – a...
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Why graduates struggle to find jobs in West Africa
Educated unemployment in urban West Africa stems from educated workers rationally waiting for scarce, high-paying public and formal private jobs in labour markets characterised by severe hiring frictions. Policies that reduce private-sector hiring co...
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What education and minimum wages can – and can’t – do about wage inequality
In Brazil, education raised productivity and reduced informality, while minimum wage increases compressed inequality but risked lowering formal employment for low-skilled workers.
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Are women better politicians?
In India, women city councillors outperform men. Yet gender quotas actually reduce the overall welfare of voters as deep-seated discrimination against women outweighs policy gains. Alternative designs can improve both representation and welfare.
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How to value the time of the self-employed
Valuing the time of the self-employed is crucial for evaluating interventions and conducting cost-benefit analysis. Yet research often misprices this value at zero or equal to market wages. New evidence from Kenya suggests a practical fix: value unpa...