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2018 (2)

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Book
Economic Effects of the Syrian War and the Spread of the Islamic State on the Levant
Authors: ---
Year: 2014 Publisher: Washington, D.C., The World Bank,

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Abstract

This paper uses a global computable general-equilibrium framework with new detail on six Levant countries-the Arab Republic of Egypt, Iraq, Jordan, Lebanon, the Syrian Arab Republic, and Turkey-to quantify the direct and indirect economic effects of the Syrian war and the advance of the Islamic State on the Levant. Syria and Iraq bear the brunt of the direct economic costs, while the other Levant countries lose in per capita but not in aggregate terms. The fact that the Islamic State's spread has undermined regional trade adds to varying degrees to the direct costs in all Levant economies and in the case of Syria and Iraq doubles the welfare losses. All these countries are foregoing opportunities to expand intra-Levant trade and the associated gains in economic efficiency and diversification. The average welfare effects are not indicative of within-country incidence, which varies among workers, landowners, and capitalists.


Book
General Equilibrium Effects of Targeted Cash Transfers : Nutrition Impacts on Non-Beneficiary Children
Authors: --- --- ---
Year: 2018 Publisher: Washington, D.C. : The World Bank,

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Cash transfer programs may generate significant general equilibrium effects that can detract from the anti-poverty goals of the program. Data from a randomized evaluation of a Philippine cash transfer program targeted to poor households show that a 9 percent increase in village income significantly raised the prices of perishable protein-rich foods while leaving other food prices unaffected. The price changes are largest in areas with the highest program saturation, where the shock to village income is on the order of 15 percent and persists more than 2.5 years after program introduction. Although significantly improving nutrition related outcomes among beneficiary children, the cash transfer worsened those same indicators among non-beneficiary children. The stunting rate of young non-beneficiary children increased by eleven percentage points, with even greater increases in the most saturated areas. Another potentially related spillover arises in local health markets: formal health care utilization by mothers and children also declined among non-beneficiary households. Failing to consider such local general equilibrium effects can overstate the net benefit of targeted cash transfers. In areas where individual targeting of social programs covers the majority of households, offering the program on a universal basis should avoid such negative impacts at little additional cost.


Book
Creating New Positions? : Direct and Indirect Effects of a Subsidized Apprenticeship Program
Authors: ---
Year: 2018 Publisher: Washington, D.C. : The World Bank,

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Evaluations of employment programs usually focus on direct impacts on participants. Yet employment programs can have a range of indirect effects that are rarely quantified. This paper analyzes the impact of a subsidized apprenticeship program offering dual on-the-job and theoretical training in Cote d'Ivoire. The experiment simultaneously randomized whether apprenticeship positions opened by firms were filled by the program, and whether interested youths were assigned to a formal apprenticeship. This design allows for estimating direct impacts on youths and indirect impacts on firms selected to host apprentices. The analysis identifies whether individuals forgo other employment or training opportunities, and whether firms replace other workers with program participants. The share of youths in apprenticeships increased by 52.8 percentage points. This estimate accounts for a significant windfall effect: 26 percent of the formal apprentices who were placed substituted out of traditional apprenticeships. The inflow of apprentices into firms increased significantly, but also induced substitution effects, as firms hired 0.23 fewer traditional apprentices per formal apprentice placed. Overall, the net number of apprenticeship positions created was between 51 and 74 percent of the number of formal apprentices placed. In the short term, impacts on earnings were not significant for youths, but firms benefited from an increase in the net value of work provided by apprentices.

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