rafmacalaba/data-use-mentions-extended huggingface dataset:
measurement error in these consumption data is that errors are negatively correlated with the true value of consumption.

Negatively correlated errors matter because they bias regression coefficients even if present in just the dependent variable. Surveyed consumption is often an outcome measure in impact evaluations, so negatively correlated errors may lead to understated impacts. Household consumption is also used as a key explanatory variable in many studies as a proxy for permanent income. Negatively correlated errors in an explanatory variable may bias regression coefficients either toward or away from zero. In contrast, random (classical) errors cause no bias when just in the dependent variable and always attenuate the coefficient on a single error-ridden explanatory variable. Moreover, economists’ main correction for measurement error bias – instrumental variables (IV) – is inconsistent when errors are correlated with true values (Black, Berger and Scott, 2000), while bounding estimates based on reverse regression are unlikely to be effective in practice (Gibson and Kim, 2010).

# **II. Motivation: Effects of Random and Non-random Measurement Errors**

Consider some true (bivariate) model: for an outcome of interest _y_ , an independent variable _x_ , which may be a binary treatment variable, a response coefficient _β_ , and a pure random error, _u_ . Let measurement error cause the observed * value of the dependent variable, _y_ to be related to the true value by: The textbook case of classical measurement error places stringent restrictions on equation (2), specifically that θ = ,0 λ= 1 and _E_ ( _v_ ) = cov( _y_ , _v_ ) = cov( _x_ , _v_ ) = cov( _u_ , _v_ ) = ,0 so that just white noise is added to the true value. In contrast to this widely used assumption, validation poor. But Deaton and Paxson find the most negative effects of household size in their Engel curves for poor countries. Nothing in the current note resolves the puzzle, since there is a significant negative effect of household size with all survey designs.
more and more challenging; World Bank (forthcoming) projects that by 2050 annual GDP growth will have fallen to 2.4 percent. Nevertheless, there are promising policy areas to at least moderate the decline in economic growth. These include overcoming skills gaps, maintaining the high quality of infrastructure, building innovation capacity, addressing distortions in output markets, improving management quality, and fostering the reallocation of production factors within sectors (World Bank 2016; Chuah et al. 2018; World Bank 2020). Though gains from sources of growth other than within-sector productivity are likely to be more limited, productivity-enhancing policies should nevertheless be combined with efforts to spur the more productive reallocation of labor across sectors. Finally, it will also be important to positively affect the employment rate by further increasing labor force participation especially among women, and better using the productive potential of older persons in the face of a rapidly accelerating aging process.

In terms of methodology, this study follows Martins (2018) and uses the Shapley decomposition method to decompose growth in output per capita into within-sector labor productivity growth, between-sector labor productivity growth, employment growth, and changes in the demographic structure. This study also utilizes the canonical decomposition method in World Bank (2019) that decomposes between-sector labor productivity growth into changes that can be attributed to the static and dynamic reallocation of labor. Regarding data, the study utilizes detailed output, employment, and population data collected and published by the Department of Statistics Malaysia (DOSM). Both output and employment data are compiled at the one-digit sectoral level. All sectoral data have been standardized to match Malaysia’s national accounts sector classification.

Based on this approach, the study provides one of the first quantitative and integrated analyses of structural transformation and labor productivity growth in Malaysia. In the process, it highlights detailed patterns of output and employment growth as Malaysia has shifted from being an agriculture-, to a manufacturing-, and subsequently service-based economy, as well as the underlying sources of these shifts. The resulting findings provide insights
in this area to carry out a screening survey of each household. Households were screened to identify those with an individual age 20 to 55 who was self-employed and working 30 or more hours per week in a business with no paid employees and no motorized vehicle. These criteria were used to select full-time microenterprise owners who were not so large that the grants in our experiment would have little e¤ect.

The gender and business sector of all individuals passing this screen were then recorded. This resulted in screening 7,567 households to identify 3,907 individuals who passed the screen. Only 19.4 percent of these individuals were male, con...rming the predominance of women among small enterprise owners in urban Ghana. Based on the gender mix of self-employed in these 14
**Figure 3: Government Education Spending as a Share of National Income Has Risen Fastest in Low-income and Lower-middle-income Countries**

_a. Public education spending as percentage of b. Public education spending as percentage of GDP by income group classifications as of 2017 GDP in low-income countries by graduation status_ <!-- Start of picture text --> 6<br>6<br>remained LIC between 1999 and 2017<br>graduated between 1999 and 2017<br>HICs<br>5<br>5<br>UMICs<br>4 LMICs 4<br>LICs<br>3 3<br>1998–2001 2002–05 2006–09 2010–13 2014–17 1998–2001 2002–05 2006–09 2010–13 2014–17<br><!-- End of picture text --> _Source:_ World Bank calculations based on UIS and IMF online databases. _Note:_ World Bank income group classifications in 1999 are used to group countries and are as follows: LIC = low-income country, LMIC = lower-middle-income country, UMIC = upper-middle-income country, and HIC = high-income country.

Overall, countries that graduated out of low-income status between 1999 and 2017 devoted a larger share of GDP to public education spending than those countries that remained in the low-income group (Figure 3). Between 1998 and 2013, countries that graduated from low-income status spent approximately 4.1 percent of GDP on education compared to 3.5 percent for countries that did not graduate.<sup>4</sup> However, this gap has narrowed over time because of a decline in the spending share among graduating countries and an increase in the share among non-graduating countries. Between 2006 **–** 09 and 2014 **–** 17, government education spending as a share of GDP declined from an average of 4.4 to 4.1 percent among graduating countries but increased from an average of 3.7 to 4.1 percent
-Tachrs-N-techers Pay Dlfforneos 3-

other professions. This **salary** premium **is** likely to constitute **an** economic rent in view of the restricted entry into the teaching profession. No primary school teacher can be hired by the Government if he/she has not been trained in one of the teacher training centers (CAFOPs), and entry into CAFOPs is controlled by the Government. There are also to some extent barriers to entry **at the** secondary level because graduates of the public secondary level teacher training schools (ENS and IPNETP) are hired preferentially by the Government. Moreover, there is only a limited number of private schools **whore** teachers can find jobs outside Government (Government licenses are required to operate these schools). Lastly, the teaching profession **is** certainly the most unionized profession in the country, which gives it an almost unique bargaining power.

An alternative to the method discussed above would be to compare salaries of teachers with those of selected comparable occupatione, whereby the criterion Eor selection would be a matching level of required education. Although this may result in more closely matched control groups, the drawback of this approach is that the control groups themselves may be subject to rent (positive or negative), which would distort the results.

# III. THE DATA.

The data for this study come from the 1985 Cote d'Ivoire Living Standards Survey, which canvassed a nationally representative sample of 1600 households. Information was collected on a wide array of subjects, including income, expenditures, assets, employment, and socio-economic characteristics of the household and its members (for a further description of the data content and questionnaire of the survey, see Grootaert, 1986; the survey's data collection procedures are discussed in Ainsworth and
# Non-Technical Summary

This paper explores an empirical methodology to assess the impacts of trade reforms, such as those being proposed in the WTO Doha Round negotiations, on household behavior in developing countries. I focus on consumption and income responses. When price reforms take place, households are affected on both the expenditure and the income sides. By facing changed prices for consumer goods, households modify consumption decisions. By facing different wages, household income responds. The paper proposes a joint estimator of demand and wage price elasticities from survey data.

The method uses an empirical model of demand to extract price information from unit values, and uses this information to estimate the response of households to price reforms. By correcting unit values for quality effects and measurement error, the method overcomes the problem of the endogeneity of unit values. By endogeneizing household income, the model corrects potential biases in the estimation of own- and cross-price elasticities in consumption. I apply the method to an expenditure and income survey for rural Mexico. It is shown that using unit values instead of prices may lead to inconsistent results, and that the corrections suggested in this paper are empirically important. It is also shown that allowing for consumption and income responses is a key element of an accurate empirical assessment of trade policy. Concretely, I show that the standard proposition of the literature, that after an increase in the price of a good net consumers will be worse off but net producers will be better off, may be misleading. In a static context, the welfare effects of a price change can be assessed by comparing budget shares and income shares. This argument, however, fails to consider dynamic household responses. Consumers may respond by substituting away from the more expensive goods. In rural areas, farmers may increase agricultural production, farm employment and wages, and purchases of inputs and services in local markets. Importantly, thus, the net position of the household becomes endogenous: sufficiently large consumption and income responses may cause an ex-ante net consumer become an ex-post net producer,
Policy Research Working Paper 7928

# **Abstract**

This paper provides evidence on the labor productivity growth and employment impacts of foreign direct investment in selected countries in Africa over the years 2001–2012. It uses data from five emerging economies (Brazil, Russia, India, China, and South Africa) and advanced countries (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States of America). The estimation, using system generalized method of moments, shows that foreign direct investment from emerging economies and advanced countries has increased labor productivity growth and employment in Africa, when human capital and governance are controlled for. However, the level of impact varies based on the origin of investment.

This paper is a product of the Macroeconomics and Fiscal Management Global Practice Group. It is part of a larger effort by the World Bank to provide open access to its research and make a contribution to development policy discussions around the world. Policy Research Working Papers are also posted on the Web at http://econ.worldbank.org. The authors may be contacted at KEzemenari@worldbank.org.

_The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent._ Produced by the Research Support Team
Policy Research Working Paper 5486

# **Abstract**

This paper studies the effect of increased access to antiretroviral therapy on risky sexual behavior, using data collected in Mozambique in 2007 and 2008. The survey sampled both households of randomly selected HIV positive individuals and households from the general population. Controlling for unobserved individual characteristics, the findings support the hypothesis of disinhibition behaviors, whereby risky sexual behaviors increase in response to the perceived changes in risk associated with increased access to antiretroviral therapy. Furthermore, men and women respond differently to the perceived changes in risk. In particular, risky behaviors increase for men who believe, wrongly, that AIDS can be cured, while risky behaviors increase for women who believe, correctly, that antiretroviral therapy can treat AIDS but cannot cure it. The findings suggest that scaling up access to antiretroviral therapy without prevention programs may not be optimal if the objective is to contain the disease, since people would adjust their sexual behavior in response to the perceived changes in risk. Therefore, prevention programs need to include educational messages about antiretroviral therapy, and address the changing beliefs about HIV in the era of increasing antiretroviral therapy availability.

This paper—a product of the Human Development and Public Services Team, Development Research Group—is part of a larger effort in the department to better understand the determinants of the HIV/AIDS epidemic. Policy Research Working Papers are also posted on the Web at http://econ.worldbank.org. The authors may be contacted at ddewalque@ worldbank.org, harounan.kazianaga@okstate.edu, mover@cgdev.org _The Impact Evaluation Series has been established in recognition of the importance of impact evaluation studies for World Bank operations and for development in general. The series serves as a vehicle for the dissemination of findings of those studies. Papers in this series are part of the Bank’s Policy Research Working Paper Series. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this
One, Two, and Three 6

**Table S7.** Impact of Public Works on Skilled Wages

|||SGRY +|NREGA||Only NREGA|
|---|---|---|---|---|---|
||(1)|(2)|(3)|(4)|(5)|
|_sinh_<sup>_−_1</sup>(_ed,t_)|-9.270<sup>_∗∗∗_</sup>|2.852<sup>_∗∗∗_</sup>|3.717<sup>_∗∗∗_</sup>|1.935<sup>_∗∗_</sup>|1.028|
||[1.992]|[1.188]|[1.390]|[0.885]|[0.889]|
|District effects|No|Yes|Yes|Yes|Yes|
|Year effects|No|Yes|Yes|Yes|Yes|
|Oth. controls|No|No|Yes|Yes|Yes|
|Het. trends|No|No|No|Yes|Yes|
|Observations|1313|1313|1313|1313|1313|

_Source_ : Author’s analysis based on AWI data (for skilled wages) and program expenditure data for SGRY and NREGA from 2001 to 2010. Program expenditure data is from the Ministry of Rural Development, Government of India. _Note_ : All estimates are of the order 10<sup>_−_2</sup> . The unit of observation is a district-year. The dependent variable in all the regressions is the log of skilled wages. Columns 1-5 have _sinh_<sup>_−_1</sup> ( _ed,t_ ) as the key regressor. In columns 1-4, program expenditure
society in the future” (Gallup 2002). The present paper focuses on one prominent feature of the Vietnamese labor market: the public-private pay gap.

Our aim is to identify the effect of the public sector reform on the labor market earnings inequality. From the literature on public labor markets, two opposing views can be supported. On the one hand, if there is a fixed “public sector premium” that is given to workers independently of their productive characteristics, the public-private differences increase inequality. Hence, a reform that would make public sector pay similar to competitive wage setting would reduce inequality (which was the expected benefit of the public sector reform in Vietnam, as detailed in Bales and Rama (2001)). On the other hand, if the public sector wage setting compresses the wage differentials between the skilled and unskilled workers, given that the public sector workers' skills are higher, on average, then public sector reform could increase inequality (see Gosling and Lemieux 2001). Similarly, Liu (2004) argues that the wage gap between male and female workers, which is typically lower among public employees, could rise in Vietnam after the public sector reforms.

Identifying the effect of any changes in wage setting on inequality is an empirical challenge. In particular, compositional effects must be controlled for because workers have different productive characteristics across sectors. Not all of these characteristics are observed, and it is difficult to account for selection on the unobservable characteristics. Fortunately, panel data provide an opportunity to credibly address this issue by identifying individual, specific, and time-invariant components of workers’ pay. However, fixed effects models, which are most commonly used with panel data, implicitly assume that unobserved skills have the same returns in both sectors. Our model 3
||Positive Behavioral<br>Expectations|2.1 The teacher sets clear behavioral<br>expectations for classroom activities and/or<br>routines|
|---|---|---|
||Facilitation of Learning|3.3 The teacher makes connections during the<br>day that relate to other concepts or children’s<br>daily lives|
|**Guided**<br>**Learning**|Checks for Understanding|4.3 The teacher adjusts teaching to the level of<br>the children|
||Feedback|5.1 The teacher provides specific comments or<br>prompts that help clarify children’s<br>misunderstandings|
||Critical Thinking|6.3 The children ask open-ended questions or<br>perform thinking tasks|
||Autonomy|7.3 Children volunteer to participate in the<br>classroom|
|**Socioemotional**<br>**Skills**|Perseverance|8.2 The teacher responds positively to children's<br>challenges|
||Social & Collaborative<br>Skills|9.2 Children collaborate with one another<br>through peer interaction|

# **_Reliability of Tools_**

The Cronbach’s alpha of the domains and overall scores for the AIM-ECD and Teach ECE are shown below in **Table 6** . Overall, the AIM-ECD demonstrates superb reliability with an overall alpha of 0.978 and excellent reliability for each domain. Overall Teach ECE segment scores were very good with a Cronbach’s alpha of 0.884, but individual domains were lower—while Guided learning demonstrated very good reliability (0.820), Socio-Emotional Skills was acceptable (0.771) and Classroom Culture was questionable/fair (0.651). These figures are similar, and slightly better, than reliabilities from a review of international Teach ECE data (Ding et al., 2023
Figure 4: Employment distribution: Manufacturing <!-- Start of picture text --> Burkina Faso (2015) Cameroon (2008) Ghana (2013)<br>Rwanda (2013) USA (2013)<br>1 − 4 5 − 910 − 1920 − 99 100+ 1 − 4 5 − 9 10 − 19 20 − 99 100+ 1 − 4 5 − 9 10 − 19 20 − 99 100+<br>1 − 4 5 − 910 − 1920 − 99 100+ 1 − 4 5 − 9 10 − 19 20 − 99 100+<br>50<br>50<br>40 40<br>30 30<br>20 20<br>10 10<br>0 0<br>50<br>40 50<br>30 40<br>30<br>20<br>20<br>Share of employment (%)<br>10<br>10<br>0 0<br>50<br>40<br>30<br>20<br>Share of employment (%)<br>10<br>0<br><!-- End of picture text --> _Source:_ Establishment censuses obtained from the statistical agencies of the select countries; see section 3. For the U.S., the data comes from the 2019 BDS dataset. _Note:_ The figure is constructed based on data for establishments in the manufacturing sector irrespective of their state or foreign ownership status. Establishments with missing employment data are excluded.

Furthermore, figure 5 shows that most of the employment is concentrated in the lower and uppermost tails. Apart from Cameroon, where most of the workforce is employed in establishments with at least 100 workers, the employment share of the smallest size category (1-4 workers) is the highest for the manufacturing sectors of Burkina Faso, Ghana, and Rwanda. At the same time, the next largest
I oL,ICY RESEARCI-I WORKING PAPER _2551_

# Summary **findings**

Komives, Whittington, and Wu use the World<sup>Bank's</sup> Living Standards Measurement Study (LSMS)<sup>surveys</sup> from 15 countries (covering more than 55,500 households) to examine the relationship between infrastructure coverage and household income.<sup>The</sup> results show that throughout the world all income groups have much higher levels of coverage<sup>for</sup> electricity than for other formal infrastructure<sup>services</sup> (in-house piped water service, sewerage<sup>service, and</sup> private telephone service).

In many countries most households in urban<sup>areas now</sup> have electricity service. As monthly household<sup>incomes</sup> increase from $100 to $250, coverage of<sup>all these</sup> infrastructure services rises, but at different<sup>rates.</sup> The findings confirm that the very poor rarely<sup>have</sup> these infrastructure services-with exceptions.<sup>The very</sup> poor often do have electricity if they live in<sup>urban areas.</sup> The very poor in Eastern Europe and Central<sup>Asia have</sup> much higher levels of coverage than those<sup>elsewhere in</sup> the world; they often have electricity, water,<sup>sewer, and</sup> telephone services.

The results also suggest that if the poor gain access<sup>to</sup> services in their communities, many will<sup>decide to</sup> connect.

This paper-a product of the Private Provision<sup>of Public Services Group, Private Sector Advisory Services Department-</sup> is part of a larger effort in the department to<sup>
way of reaching a trade pattern that is not driven by risk hedging than engaging in some sort of industrial policy.

The analysis of this paper can be extended along several dimensions. First, using more disaggregated data may permit obtaining better proxies of international price uctuations and, therefore, better pinpoint the relevance of the natural hedge mechanism. This can be done by using other new sources of data, such as the Gaulier et al. (2007), BACI database, which has a shorter time span but covers trade at 6-digits of the Harmonized System. Second, the hedge provided by an industry depends not only on the commodity it produces, but also on how the price of their imported inputs comoves with the nominal exchange rate. This paper has taken the stance that that source of hedging operates largely independently of the one on the product side, but of course this does not need to be the case. Addressing this issue faces some serious problems of measuring that would require further assumptions, but it is an interesting area of future research.

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