Micro-level Dataset Research Articles

Business environment optimization and labor income share of enterprises: Evidence from China

The external business environment in which enterprises operate is often subject to constant change. This paper explores how the business environment affects firms’ labor income share. Utilizing a micro-level dataset of China’s A-share listed companies from 2010 to 2020, we find that an optimal business environment enhances the labor income share. Mechanism tests reveal that a better business environment contributes to the increase in labor income share by fostering human capital upgrading and improving labor dispute resolution. Further analysis demonstrates that the positive effect is more pronounced for firms with lower labor intensity and non-state ownership, and also for firms with coastal locations and higher institutional investor shareholdings. These findings contribute to existing literature on factors influencing labor income share and also provide valuable policy implications for promoting the development of a better business environment.

Robots, gender economic opportunities and household adjustment: Evidence from China

Leveraging a unique historical instrumental variable—the first introduction of modern technology during China's Self-Strengthening Movement—this study utilizes macro / micro-level dataset to analyze how robotization affects gender economic opportunities and subsequent life-cycle transitions. The analysis indicates that (1) gender gaps in labor force participation, income and working hour declined significantly more in regions that introduced robots compared to other regions, increasing the relative economic status of women; (2) regions with higher robot exposure tend to experienced also a decline in marriage and childbirth, although no notable change in divorce was observed; (3) these patterns may attributable to enhanced status of women in the labor market, which in turn diminishes their satisfaction with economic and domestic contributions of men and leads to prioritizing career advancement over marriage and childbirth. Overall, our evidence shows that robots have a substantial impact on labor market structures, with potential spillover effects on a series of demographic behaviors.

Land consolidation, cropland use, and vegetation productivity

AbstractLand consolidation represents a valuable tool for enhancing agricultural productivity. However, there is a notable gap in the literature, with few studies effectively estimating the impact of land consolidation on microlevel crop changes. In our study, we estimated how land consolidation affects cropland use and vegetation productivity in Turkey, specifically examining wheat and corn. To analyze microlevel datasets from various villages, we applied multiple difference‐in‐differences approaches. Our results show that land consolidation affects farmers' cropland usage, particularly transitioning from wheat to corn. Land consolidation also leads to increased yields for both wheat and corn, although these benefits are not long‐lasting and diminish within a few years. Thus, our findings provide valuable insights for land‐use policy and planning, highlighting the critical role of land consolidation in determining farmers' cropland uses and its effect on overall productivity [EconLit Citations: Q12, Q15, Q18].

Unveiling the drivers of Africa's digital financial inclusion journey

AbstractThis study aimed to unveil the evolving landscape of digital financial inclusion in African countries during the post‐COVID‐19 era. We examined factors influencing the access and usage of digital financial services and identified population segments facing increased exclusion due to the digital divide. First, by applying principal component analysis to data collected at the country level from 39 African countries in 2014, 2017, and 2022, we developed a digital financial inclusion index. Second, the empirical research utilized a microlevel dataset of 29,042 adults from 29 countries, sourced from the World Bank's Global Findex 2021 database, employing the instrumental variable probit methodology. Comparative analysis showed improvements in digital financial inclusion rankings for Kenya, Lesotho, and Botswana, while Egypt, Sudan, Tunisia, and Niger experienced declines, indicating limited access. Our empirical findings suggest that certain groups, such as women and individuals with limited education and lower incomes, encounter obstacles in accessing digital financial services. Factors such as education level, labor market participation and access to technology and internet infrastructure emerged as crucial in promoting digital financial inclusion. Our sample's representative nature enhances the study's practical implications, guiding public policies and international institutions to accelerate digital financial inclusion in Africa.

Characteristics of student loan credit recovery: evidence from a micro-level data set

Characteristics of student loan credit recovery: evidence from a micro-level data set

The impact of sinkholes on crop choices in water-scarce regions

ABSTRACT Irrigation is crucial in enhancing agricultural productivity, which is vital for ensuring food security. However, overusing water for irrigation, often due to weak water resource management, leads to groundwater depletion and sinkhole formation. This problem is particularly salient in our research region in Turkey, a water-poor area where farmers intensively irrigate their crops despite limited precipitation and irrigation resources. The expansion of irrigated farmlands in this region has resulted in hundreds of sinkholes, posing serious threats to both the land and the livelihoods dependent on it. This study uses detailed micro-level datasets and panel data econometric techniques to estimate the impact of sinkhole occurrences on farmers’ decisions concerning crop cultivation. Our findings show that despite recurrent sinkhole incidents, farmers persist in their existing farming practices, showing a marked insensitivity to the escalating environmental consequences. This evidence underscores the urgent need for effective policy interventions to regulate water usage and promote more sustainable irrigation techniques.

Severity of climate change and deprivation outcomes: Micro-level assessment for sub-Saharan Africa

Poverty has been recognized as a key socioeconomic developmental issue that exacerbates peoples’ vulnerability to climate change. Given that sub-Saharan Africa (SSA) has been characterized as the region with the highest poverty levels over the years, people living in the region are more susceptible to the adverse implications of climate change relative to other world regions. Based on a micro-level dataset from 33 SSA countries, we examine how climate hazards (drought and flooding) affect various forms of deprivation (food, fuel, income, and water) to offer fresh insights into the poverty-impact of climate change. Using instrumental variable ordered probit and multilevel models, we show that the severity of drought and flooding significantly increase individuals’ likelihood of experiencing the various forms of deprivation. However, water deprivation appears not to be a consequence of flooding. Considering locational heterogeneity, the severity of drought and flooding on deprivation outcomes is more deleterious for rural dwellers compared to their urban counterparts. By and large, we provide evidence to argue that the individuals’ experiences of food, fuel, income, and water deprivation can be attributed to the incidence and severity of hazards induced by climate change.

Digital finance and stock market participation: The case of internet wealth management products in China

Digital financing platforms have enhanced accessibility for households that wish to invest in wealth management products, but their impact on stock market participation remains underexplored in the literature. This paper investigates the effect of internet wealth management products on the household propensity to invest and participate in the stock market, using the microlevel dataset from the China Household Finance Survey, which covers 40,011 households. Our findings reveal that purchasing internet wealth management products positively and significantly influences the household inclination to invest and stock market participation level. Moreover, households with internet wealth management products have higher financial awareness and heightened interest in financial news. These characteristics not only reduce information costs but also promote stock market participation. Furthermore, the impact of purchasing internet wealth management products on stock market participation is more pronounced among households with higher education and lower income risk and residence in regions with a more developed financial market.

The micro-economic effects of COVID-19 containment measures: A simple model and evidence from China.

Optimizing the trade-off between economic growth and public health is a major goal of public administration, especially during public health events. Although containment measures are widely used to combat the Covid-19 outbreak, it is still debated how the measures affect the economy. Using a simplified susceptible-infected-recovered (SIR) model, this study investigates the dynamic impact of lockdown policy on social costs during the epidemic and the underlying mechanism, revealing that the lockdown policy has both a "shutdown effect" and an "anti-epidemic effect", and should be implemented and lifted in a timely manner. Based on a micro-level dataset of 57,547 private enterprises in China in 2020, this study provided empirical evidence for the presence of negative "shutdown effect" and positive "anti-epidemic effect" of lockdown on reopening, both of which are in part mediated by labor input, factor mobility, and market demand recovery. Furthermore, the shutdown effect is weaker in regions with sufficient testing and quarantine resources, government capacity and preference for targeted response, whereas the anti-epidemic effect is stronger in densely populated areas with relatively low public compliance. Additionally, digital measures can aid in the containment of epidemics. The findings not only contribute to a better understanding of the rationality and effectiveness of the lockdown policy, but also provides practical evidence and implications for the government to improve the synergistic efficiency of epidemic control tools and strengthen the resilience of local economic growth.

Refugees and Housing: Evidence from the Mortgage Market

Abstract This paper investigates the impact of large-scale Syrian refugee inflows on the Turkish housing market. Employing a micro-level data set of the population of mortgaged houses in Türkiye between 2010 and 2017, it identifies the dynamic effects using a difference-in-differences approach. As the regional distribution of Syrian refugees is presumably not exogenous, it is instrumented in the estimations. The instrument is constructed using the distance from Turkish provinces to each Syrian region, while weighting each Syrian region by their population and distance to Türkiye compared to other destination countries. The results show that house prices increased in response to the arrival of Syrian refugees. The effects are mostly driven by low-priced housing and faded after 2014. The results further show that construction permits and sales increased, while the average age of purchased houses declined, indicating an increase in supply that may explain the fading-out effect over time. Finally, the findings provide suggestive evidence that houses that are sold after the arrival of refugees decline in size, which further points to a squeeze in the housing market for natives.

The central banking contribution to international statistics: A Basel perspective

A key goal of the Bank for International Settlements is to produce in-depth economic analysis drawing on its position at the intersection of research and policy, its financial markets savvy, and its unique statistical chest. Since the interwar financial crisis in the 1930s, the traditional objective of assessing international linkages has continuously guided BIS statistical offering. Important micro-level data sets have been collected to support global financial regulation in parallel. In addition, the BIS hosts the Irving Fisher Committee on Central Bank Statistics, a global network of central bank statisticians, economists and policymakers who discuss statistical issues of interest to central banks and develop related methodological work. It also actively supports various global statistical initiatives, especially to close economic and financial data gaps. These activities have proved instrumental for tracking and understanding developments in international finance, as was evident again on the occasion of the recent COVID-19 pandemic. Looking ahead, the BIS and the IFC can continue to contribute actively to the international statistical cooperation framework.

Privacy concerns in consumer E-commerce activities and response to social media advertising: Empirical evidence from Europe

This research quantifies how privacy concerns and consumer characteristics are associated with e-commerce participation and consumer response to social media advertising by accounting for both individual-level and country-level covariates. This study uniquely analyzes a rich micro-level data set that includes responses of 153,053 individuals from 29 European countries. Through multilevel logit modelling, authors account for the country nested structure of consumer behavior and report odds ratios for relations between privacy measures and e-commerce activities of consumers in Europe. Privacy risk knowledge and online information sharing levels are positively correlated with probability of e-commerce participation. Odds of e-commerce participation are negatively associated with level of concern on online activity recordings. Consumers who take more protective actions against online privacy risks are more likely to participate in e-commerce and make purchase in response to social media advertisements. Firms that offer credible tools to help consumers protect their online privacy can benefit from increased e-commerce participation and higher effectiveness in social media advertising. Representative sampling in data collection offers external validity and generalizability of findings to the European market, which is unique for this study and an empirical contribution.

An evaluation of competing methods for constructing house price indexes: The case of Warsaw

Accurate house price indexes allow governments and planners to make more effective decisions with regard to land use policy. We compare different ways of computing house price indexes for Warsaw over the period 2006–2018 using a detailed micro-level dataset of 101,182 transactions. We find that when a hedonic approach is used, the resulting index is reasonably robust to the choice of method. More problematic is the repeat-sales method, which is widely used in the US. We find that repeat-sales price indexes are unreliable, affected by sample-selection bias, and prone to significant revisions when new periods are added to the dataset. Even for the hedonic approach, the choice of method can become important for smaller datasets. In such cases, the hedonic time dummy and rolling time dummy methods tend to perform better than the hedonic repricing, hedonic imputation and average characteristics methods. In comparison with the index produced by the National Bank of Poland (NBP), we find that in 2006–7 prices did not rise as much, while since the end of 2012 prices have risen faster than indicated by the NBP index. We attribute these differences to a combination of the choice of hedonic method (we use time-dummy while the NBP index uses the repricing method) and different datasets (the NBP dataset is smaller, especially in the earlier years of the sample).

Economic and environmental influences of resource tax: Firm-level evidence from China

The impact of resource tax on the sustainable development of micro-firms is still unknown. Using a unique micro-level dataset containing 5796 mining firms from 2008 to 2011, this study constructs an econometric model to examine the influence of resource tax on the economic and environmental performance of Chinese mining firms. The results show that resource tax has a significant positive impact on the economic and environmental performance of China's mining firms. Overall, a 1% increase in resource tax increases mining firm's total factor productivity by 0.1280% and decreases its carbon intensity by 0.0167%. The conclusion remains valid after alleviating the self-selection bias and endogeneity problems, and it also passes a series of robustness tests. Heterogeneity analysis shows that resource tax has a more significant effect on the economic and environmental performance of private mining firms, mining firms with high energy consumption, and mining firms in the eastern and western regions. In addition, resource tax promotes mining firms' technological innovation and improves their resource allocation efficiency, thereby benefiting the sustainable development. Further analysis shows that resource tax has anti-driving effect and incentive effect on technological innovation, mainly reflected in increasing the external pressure of mining firms and stimulating their investment initiative.

Introducing MACEDA: New micro-data on an indigenous self-determination conflict

This article introduces MACEDA, a micro-level dataset on the self-determination (SD) conflict between the Chilean state and the indigenous Mapuche. Although SD disputes are one of the most common conflicts in the world, and indigenous movements represent about 40% of all SD movements, this is the first micro-dataset focused on an indigenous SD conflict. MACEDA covers the period 1990–2016, including more than 2,600 events collected from local media. As indigenous conflicts are much less violent in terms of casualties, we take a flexible definition of conflict, based on its constituent events, and we discuss the comparability and generalization of our approach. To illustrate the usefulness of these micro-data in the analysis of conflict-related theories, we present a descriptive empirical analysis on the strategies of indigenous resistance, and we discuss how the data can be used in the causal analysis of conflicts.

Sex-disaggregated agricultural extension and weather variability in Africa south of the Sahara

Climate change and extreme weather shocks pose serious threats to a number of agricultural outcomes, including agricultural production, productivity, and income, especially when households depend heavily on this activity. Agricultural extension and rural advisory services are key instruments in promoting technical change, advancing agricultural productivity growth and, ultimately, improving farm livelihoods, and are expected to mitigate the negative effects of climate change and extreme weather shocks. Their mitigation effects, however, may vary depending on the sex of the recipient. This paper investigates the role of sex-disaggregated agricultural extension recipients in contexts where agricultural performance of farm households is affected by weather variability. To this aim, we match multiple rounds of panel microdata from the nationally representative, consumption-based Living Standards Measurement Study -Integrated Surveys on Agriculture (LSMS-ISA), collected in four sub-Saharan African countries, with remote sensing data on biophysical dimensions over a long-term horizon as well as year-specific weather shocks. To our knowledge, this is the first time that a micro-level dataset with individual-level information on agricultural extension services’ recipients has been assembled and examined to investigate the effects of extreme weather shocks and climate change. Applying panel data econometric estimators, the study finds that agricultural extension and advisory services translate into higher agricultural performance of farm households where women are also among the beneficiaries, as compared to non-beneficiaries and households where beneficiaries are men only. Moreover, these services can mitigate the negative effects of weather variability and climate change, controlling for country and time fixed effects as well as holding all other variables constant. These results call for national and international policies and interventions strengthening rural advisory services, especially targeted to women in settings where household livelihoods are predominantly agriculture-based and weather variability and shocks are expected to negatively affect farming activities.

Food policies and obesity in low- and middle-income countries

• We examine the implication of food policies on body weight outcomes. • An increase in tariff rate on “unhealthy” foods is associated with reduction in obesity rates. • An increase in subsidy rate is associated with higher obesity rates. • These implications of these food policies are more pronounced among poorer individuals. • We highlight heterogenous implications of trade and fiscal policies. Understanding the public health implications of food policies is crucial to combat recently increasing overweight and obesity rates in many low-and-middle income countries (LMICs). This study examines the implication of food policies, mainly tariff rates on “unhealthy” foods (sugar and confectionery products as well as fats and oils) and governments’ subsidies, on individuals’ body weight outcomes. We compile several macro- and micro-level datasets that provide macro-level information on food policies and micro-level anthropometric data for several LMICs. We exploit temporal dynamics in tariff rates on “unhealthy” foods and governments’ spending on subsidies to estimate fixed effects models characterizing the evolution of body weight outcomes. We find that temporal dynamics in tariff rates on unhealthy and energy-dense foods are significantly and negatively associated with body weight. Conditional on several observable and time-invariant unobservable factors, a decrease in tariff rates on sugar and confectionary foods or fats and oils is associated with an increase in overweight and obesity rates. On the other hand, an increase in subsidy rate, as a share of government expenditure, is significantly associated with higher overweight and obesity rates. Interestingly, we find that the implications of these food policies are more pronounced among poorer individuals. This may be explained by the fact that poorer households usually spend a larger share of their income on food consumption or unhealthy foods; and that poorer individuals are often beneficiaries of government subsidies in many LMICs. These findings have important implications for informing public health policies in LMICs, which are experiencing an unprecedented rise in overweight and obesity rates.

Risk differentials between green and brown assets?

We examine the relative riskiness of residential mortgages depending on the energy efficiency of the underlying property. Using a unique micro-level dataset in the UK, our analyses suggest that mortgages against energy-efficient properties are less frequently in payment arrears than mortgages against energy-inefficient properties. This result is robust to controlling for other relevant determinants of mortgage default including borrower income and loan-to-value (LTV). We conclude that the energy efficiency of a property is a relevant predictor of mortgage payment arrears. This result adds to the evidence base on risk differentials between green and brown assets.

The Role of Institutional Linkages and Regional Institutions in the Location Choice of Outward Foreign Direct Investment: Empirical Evidence from Chinese Firms

Differently from the prior studies that look at the determinants of Outward foreign direct investment (OFDI) location choice, based on the institution theory and employing a comprehensive and unique micro-level dataset of Chinese firms, this study is the first to integrate institutional linkages (Confucius Institute) and regional institutions into one framework and looks at the role of the location choices of Chinese OFDI. The results show that Chinese firms prefer to invest in countries with the presence and higher number of Confucius Institutes including Confucius classrooms. Moreover, the institutional linkage of Confucius Institutes can alleviate the possible negative effects caused by the distance between China and the host country, which suggests Confucius Institutes help Chinese firms against liabilities of foreignness and risks and costs of operation in more distant host countries. We also find that the availability and quality of China’s regional institutions have a strong impact on local firms’ willingness and capability of participating.

All you need is political love? Assessing the effects of partisan favouritism in Croatia's public procurement

This paper discusses the political donations - public procurement interplay in Croatia. It rests on a unique and comprehensive hand-collected firm-by-tender micro-level dataset that enables the assessment of partisan favouritism in procuring goods, services and work by the Croatian government in the 2012–2018 period. Main results show that (i) political donations pay off and a ten percent increase in political donations leads to an increase in public procurement revenues of 5.7%; (ii) political disloyalty, i.e. switching donations from centre-right to centre-left parties or vice versa, does not reimburse; (iii) big firms in Croatia are big enough to bid lower prices and/or contract better terms, such that they don't need favouritism in public procurement awards; and (iv) political contributions ex-post election (2016–2018) increase procurement revenues of donating firms by 27%, and firms connected to the losing party exhibit a drop in procurement revenues of more than 12% compared to the ex-ante elections.