Despite large investments in piped water throughout the developing world, the share of urban households without piped water has remained stable at 5% for middle-income countries and at 20% for low-income countries over the past decade. Given health, time-savings, and other benefits from piped water, how can water utilities set prices in order to close gaps in access while still covering costs? Conventional wisdom is that subsidizing fixed connection fees with high marginal prices can improve access especially for the poor, but this policy can have the opposite effect when households share water connections, which is common in the developing world. I observe that over 23% of households in Manila access piped water through a neighbor's connection. In this context, high marginal prices weaken incentives for households to extend water access to their neighbors through sharing. Similarly, connection fee subsidies may have limited impacts on access because sharing households already split any fixed costs with their neighbors.
- job market papers 2017
December 3 is the International Day of Persons with Disabilities. Every year, on this day, the international community comes together to take stock of the progress that has been made to advance the rights of people with disabilities around the world.
At the World Bank, we commemorate the signing of the United Nations Convention of the Rights of Persons with Disabilities and underscore our commitment to Sustainable Development Goal 4 (SDG4), to “ensure equal access to all levels of education and vocational training for the vulnerable, including persons with disabilities” by 2030. Yet, despite these international commitments, globally, too many students with disabilities still face significant barriers when it comes to attending school.
This is the seventh in this year’s job market series.
Developing countries regularly underperform in their capacity to collect taxes, with tax revenue to GDP ratios that are 20 to 30 percent less than those of high-income countries (Besley and Persson, 2014). This tax capacity gap represents lost revenue that could have provided much-needed public goods and services while reducing reliance on foreign aid. This issue is especially relevant in Africa, where “shadow economies” comprise up to 75% of national GDP (Schneider and Enste 2000), indicating that large swaths of these countries’ populations manage to evade taxation. What accounts for this failure to convince citizens to pay taxes?
Structural roadblocks to tax collections in developing countries include poor service quality, dysfunctional bureaucracies, and outdated equipment. In contrast, my job market paper provides a political explanation centered on clientelism, or politicians' exchange of targeted goods for votes from loyal supporters.
Good policy starts with good data, which is why the work of Together for Girls (TfG) begins with nationally representative Violence Against Children Surveys (VACS), led by the Center for Disease Control and Prevention (CDC) as part of the TfG partnership. The VACS generate data on prevalence and incidence of physical, sexual, and emotional violence as well as risk and protective factors, consequences of violence, and access to services. VACS have generated data for almost 10% of the world’s youth population (aged 13–24). VACS data catalyzes and informs national action to prevent and respond to violence. With strong data to guide the way, national governments lead the development and implementation of a comprehensive multi-sector policy and programmatic response to violence against children (VAC).
Start-ups in emerging markets are disadvantaged when it comes to accessing mentors and mentorship programs. The infoDev Climate Technology Program has been working to fix this challenge and recently launched two mentorship pilots in partnership with Climate Innovation Centers in Ghana and the Caribbean.
Entrepreneurs are powerful agents of change. They are catalysts for job creation and drivers of economic growth. Successful entrepreneurs from developed technology hubs often engage mentors so that they can learn from experienced industry veterans, solve unfamiliar problems, and navigate blind spots. In emerging economies, great mentors are harder to come by, founders are less familiar with what to expect from a mentor, and support programs and networks are less established.
As behavioral scientists to the World Bank, we at the Mind, Behavior, and Development (eMBeD) Unit tend to see behavioral science everywhere. With the holiday season fast approaching, it’s no surprise that we can apply behavioral science to any number of seasonally appropriate channels, including charitable giving. Reciprocity, it turns out, affects us at every age, and can be a good lesson for charitable giving campaigns.
Photo: kupicoo/ iStock
A key challenge when developing a policy to manage unsolicited proposals (USPs) in infrastructure projects is to strike a balance between receiving submissions and creating competitive tension. In a previous blog, we warned that USPs should be used with caution as an exception to the public procurement method, and argued that a good policy to manage USPs can help ensure transparency and predictability, and protect the public interest.
Surely a government that decides to consider USPs and develops a policy to manage them will look forward to receiving compliant proposals. At the same time, the government should ensure the project represents a fair market price and delivers value for money. Yet what is the incentive for the private sector to submit an unsolicited bid if the government takes it and competitively procures it? How can a government make USPs appealing to the private sector while attracting enough competing bidders?
This is the sixth in this year’s job market series
Labor misallocation is believed to be a key driver of differences in income across countries (Hsieh and Klenow 2010). However, the causes of this misallocation are not always well understood and there is little evidence on what interventions can improve the allocation of workers in the economy. These issues are particularly important in Sub-Saharan Africa, where worker mobility from low to high productivity sectors is often limited (McMillan, Rodrick and Verduzco-Gallo 2014).
My job market paper provides new experimental evidence from Ethiopia showing that subsidizing job applications can reduce inefficiencies in the allocation of workers’ talent.