This study examines the impact of workplace-based soft skills training on the productivity of Indian garment workers. The study finds that such training leads to significant productivity gains, with treated workers becoming 13.5% more productive than their untreated counterparts. These gains are particularly pronounced when trainees work in teams alongside their coworkers, emphasizing the importance of teamwork and collaboration skills. Interestingly, even untreated coworkers on the same production lines as the trained workers show increased productivity, suggesting positive spillover effects. However, despite the productivity improvements and higher promotion probabilities among trained workers, the study finds no effects on wages or worker retention, indicating labor market frictions. Nevertheless, the firm experiences substantial net returns, with a 256% return on investment

The paper explores the unexpected consequences of road construction projects in rural India. While constructing roads to connect labor markets in remote areas is often seen as a positive development, this study reveals a significant drawback. The research finds that such road projects inadvertently lead to an increase in harmful crop fires, which have detrimental effects on both air quality and human health. The paper draws attention to the need for a more comprehensive understanding of the multifaceted impacts of rural infrastructure development, highlighting the importance of considering environmental consequences alongside economic benefits when planning such initiatives in developing regions.

Nighttime lights are routinely used as a proxy for economic activity when official statistics are unavailable and are increasingly applied to study the effects of shocks or policy interventions at small geographic scales. The implicit assumption is that the ability of nighttime lights to pick up changes in GDP does not depend on local characteristics of the region under investigation or the scale of aggregation. This study uses panel data on regional GDP growth from six countries, and nighttime lights from the Defense Meteorological Satellite Program (DMSP) to investigate potential nonlinearities and measurement errors in the light production function. Our results for high statistical capacity countries (the United States and Germany) show that nightlights are significantly less responsive to

Subnational measures of economic activity are crucial for analyzing inequalities that persist across subnational regions and for tracking progress towards sustainable development within a country. Eighteen of the Sustainable Development Goals (SDG) indicators require having estimates of Gross Domestic Product (GDP), making subnational GDP estimates crucial for local SDG monitoring. However, many countries do not produce official subnational GDP estimates. Using Paraguay as an example, we show how nightlights imagery from the Visible Infrared Imaging Radiometer Suite’s Day-Night Band (VIIRS-DNB) and data from neighboring countries can be used to produce subnational GDP estimates. We first estimate the relationship between VIIRS and economic activity in South American countries at the first subnational administrative level, employing various econometric models. Results suggest

Trade policy uncertainty (TPU) has become an important source of economic uncertainty and research. We review the main sources and measures of TPU. We then provide a conceptual framework for modeling TPU and methods of estimating and quantifying its effects. We analyze its role in trade agreements and discuss open questions for future research.

Evidence suggests that natural resources have driven conflict and underdevelopment in modern Africa. We show that this relationship exists primarily when neighboring regions are resource-rich. When neighbors are resource-poor, own resources instead drive economic growth. To motivate the empirical study of this set of facts, we present a simple model of parties engaged in potential conflict over resources, revealing that economic prosperity is a function of equilibrium conflict prevalence, determined not just by a region’s own resources but also by the resources of its neighbors. Structural estimates confirm the model’s predictions, and reveal that conflict equilibria are more prevalent where institutional quality is worse.

Through a field experiment in Indonesia, we show that worker productivity was 8.22% lower in deforested relative to forested settings, where wet bulb globe temperatures were, on average, 2.84 °C higher in deforested settings. We demonstrate that productivity losses are driven by behavioral adaptations in the form of increased number of work breaks, and provide evidence that suggests breaks are in part driven by awareness of heat effects on work. Our results indicate that the cooling services from forests have the potential for increasing resilience and adaptive capacity to local warming.

Shelter-in-place ordinances were the first wide-spread policy measures aimed to mitigate the spread of COVID-19. Compliance with shelter-in-place directives is individually costly and requires behavioral changes across diverse sub-populations. Leveraging county-day measures on population movement derived from cellphone location data and the staggered introduction of local mandates, we find that economic factors have played an important role in determining the level of compliance with local shelter-in-place ordinances in the US. Specifically, residents of low income areas complied with shelter-in-place ordinances less than their counterparts in areas with stronger economic endowments, even after accounting for potential confounding factors including partisanship, population density, exposure to recent trade disputes, unemployment, and other factors. Novel results on the local impact of the 2020

Export superstars are important for export growth and diversification and are typically born large. Firm-level data on manufacturing trade from 32 developing countries show that the top five exporters account for on average nearly one-third of exports, 47 percent of export growth, and a third of the growth due to export diversification over a five-year period. Within countries and industries, export growth is positively correlated with the share of exports in the top five firms. Most of the top five exporters were already large five (or eight) years ago or are new firms; it is rare for these export superstars to emerge from the bottom half of the distribution of firm sizes. For countries where detailed data exist, superstars

The most precipitous contraction of the global economy in a century has seen carbon emissions plummet. By the end of this year, emissions are likely to be 8% less than in 2019 — the largest annual percentage drop since the Second World War. To avert a global recession, governments are injecting trillions of dollars into stimulating their economies. The International Monetary Fund anticipates economic recovery by the end of this year, provided there are no further large outbreaks of disease. If nothing else changes, then emissions will tick upwards once more, as they have after each recession since the first oil shock of the early 1970s. The analysis we present here examines past recoveries to find lessons that help

Most research on private governance examines the design and negotiation of particular initiatives or their operation and effectiveness once established, with relatively little work on why firms join in the first place. We contribute to this literature by exploring firms’ willingness to participate in two recent, high-profile private initiatives established in the aftermath of the Rana Plaza disaster in the Bangladesh ready-made garment (RMG) sector: the Accord on Building and Fire Safety and the Alliance for Worker Safety in Bangladesh. We are able to positively attribute only a minority of US RMG imports from Bangladesh to Accord and Alliance signatories. Firms headquartered in the USA were much less likely to sign onto remediation plans, especially the Accord.