rafmacalaba/datause-encoder-data huggingface dataset:
Both the treatment and control groups comprise a representative sample of the population of households in the 14 municipalities of the study in each round.<sup>7</sup> The baseline survey above was complemented by the collection of qualitative data that included twelve focus group discussions (separate groups were organized with men and women, with a total of 95 participants) that took place in two treatment and two control communities with representatives of civil society organizations (CSO), individual interviews with representatives from community organizations, including neighborhood associations, women’s organizations, and a range of other social, cultural and development associations; radio and print journalists, and three mayors who had been in office about a month before the survey took place (Dudwick et al, 2012). Meetings were also held with two to three municipal council members in each of the four communities. An operational or process evaluation was also carried out to verify consistency between project design and actual implementation. The process evaluation report shed light on the challenges faced during the course of the intervention and helped interpret the findings of this impact evaluation.

The combination of quantitative and qualitative data provided a very good basis for understanding the dynamics of change in the pilot communities. The group and individual discussions revealed the complexity of the context and the many activities already taking place in municipalities, including donor projects and NGO activities, directed at increasing people’s awareness of public affairs. Another issue that surfaced was the pervasive fear that requesting information would lead to public officials to see them as confrontational. Overall, the main issues identified during the baseline and implementation of the ATI project may be summarized as follows.

Six years after the FOI law was enacted, only about twenty-six percent of respondents knew about transparency legislation. This generally reflects the low levels of education in the poor communities in the study, where just under 10 percent of households had a member with a university degree. Members of community organizations however

> 7 Attrition is not an issue since the two rounds of survey represent cross-sections of households in the 7 treatment and 7 control municipalities (i.e. not a panel of households). The follow-up survey contained 1,918 interviewed households. 8
efficient resource allocation in 2001 is associated with strong positive TFP growth in that year.

The use of these decompositions illustrates the importance of using the Olley and Pakes (1996) methodology to correct for the endogeneity of input choices with respect to TFP. We also calculated a weighted average industry TFP based on the OLS production function estimates and decomposed into the two aforementioned terms. According to this decomposition, the covariance term is positive in most industries and years, suggesting an efficient allocation of resources. However, the OLS coefficient on capital tends to be underestimated which leads to an overestimation of TFP OLS for firms with large capital stocks. Since firms with large capital stocks generally have large sales and market shares, the covariance term between TFP OLS and market shares is erroneously high. Using the Olley and Pakes (1996) coefficient on capital, TFP is not overestimated for firms with large capital and large sales, and thus the more realistic covariance term derived turns out to be negative for some industries.

# **_3. Determinants of Firm TFP_**

## **_3.1. Empirical Framework and Econometric Problems_**

This section examines the determinants of firm TFP in Bangladesh, considering a comprehensive set of policy-relevant factors which are considered in different strands of the literature but have generally not been integrated into a single analytical framework. We study how each of the following factors - human capital, integration into world markets, technology, finance, and the business environment - promote or constrain firm TFP **.** In addition to these factors, we also focus on the role of firm size and age. With _i_ designating a firm, _t_ a year, _j_ an industry, and _r_ a location, the empirical reduced-form specifications that we estimate are given by: where _X_ 1 _irtj_ is a vector of human capital variables, _X_ 2 _irtj_ is a vector of variables related to the integration into world markets, _X_ 3 _irtj_ is a vector of technology variables, _X_ 4 _irtj_ is a 12
effect, where the preferences of a patriarchal society together with higher rural wages, lead to a withdrawal of women into more traditional roles. This interpretation is based on traditional supply-side labor economics. And it is consistent with the fact that female LFPR is much lower in urban areas, as they are almost systematically richer than rural areas.

This interpretation also embodies a pessimistic view about the future of women’s empowerment. Based on the conventional wisdom the female LFPR is bound to decline even further as incomes increase in rural areas and the country urbanizes. And there are few levers for policy makers to try to reverse this trend. Adherents to this interpretation advocate for more crèches to facilitate labor force participation by women in child-rearing ages. And they hope that as the average educational attainment of Indian women shifts from primary education to secondary and finally to tertiary, the trend will be reversed. However, with the average schooling of the labor force increasing by about one year per decade, it could well take half a century to get there.

This paper builds on the intuition that other patriarchal societies display a substantially higher female LFPR than India, despite household incomes growing fast in their case too. In South Asia, Bangladesh comes to mind. The implicit hypothesis is that the availability of jobs considered suitable for women – in Bangladesh’s case, wage employment in the garment industry – encourages participation (World Bank, 2012). The paper also takes a more granular approach to urbanization, treating it as a gradation along a rural-urban continuum rather than as a dichotomous choice, and allowing for the possibility of discrepancies between the actual and the statistical extents of the urbanization. One of the main contributions of the paper is precisely to empirically implement this approach, by constructing disaggregated employment indicators and allowing for differences among multiple ranks in the rural-urban gradation.

The results in this paper suggest that the increase in rural wages, rapid urbanization, or the values of a patriarchal society are not the main explanation for the decline in female labor force participation in India. The most important factor has been a decline in agricultural jobs that has not been offset by a commensurate emergence of other employment opportunities considered suitable for women. Between 2004-05 and 2011-12, farming jobs collapsed precipitously in rural areas and especially in small villages, while non-farm regular wage employment only increased in large urban areas and not to a great extent. The place of residence along the rural-urban gradation loses relevance as an explanation of female labor force participation once local job opportunities are taken into account. The policy prescription embodied in these results is thus very different from that implicit in the conventional wisdom. Fostering job creation should be the top priority to increase female labor force participation.

35
# **Table A1. Sample coverage**

In this table we report the distribution of banks across countries and a measure of sample coverage (total sample bank assets scaled by GDP). Not all banks enter the sample during each quarter; in addition, some banks may be excluded in some specifications if the relavant data are missing. So the total number of bank observation included in the sample at each quarter is less than what is reported in this table (between 273 and 313 for the full sample and between 58 and 66 for the large bank sample). Large banks are defined as banks with total assets above $50 billion. The total assets of the large bank sample account for approximately 65 percent of the total assets of the full sample.

||Full sample|Large bank sample|CDS sample|Assets as share of GDP<br>%(*)|
|---|---|---|---|---|
|CANADA|11|7|3|57.64|
|DENMARK|41||1|68.29|
|FRANCE|6|5|3|22.29|
|GERMANY|11|8|2|23.41|
|GREECE|13||2|110.43|
|HONG KONG|8||1|143.95|
|ITALY|24|8|6|44.05|
|JAPAN|99|24|5|73.13|
|NORWAY|16||1|42.67|
|PORTUGAL|||2||
|SPAIN|||2||
|SWEDEN|||1||
|TAIWAN|22|8|2|-|
|UNITED KINGDOM|10|6|2|25.14|
|USA|120|25|5|18.23|
|Total|381|91|33||

(*) Full sample , based on 2008 data.

31
practical option due to time or cost constraints or because the service is used by a miniscule proportion of the population<sup>24</sup> the data must be interpreted with caution, qualified with the necessary caveats.

Thirdly, our analysis suggests that even if a large majority of respondents appear to be more or less satisfied (or dissatisfied), useful information can still be extracted by using the variation in responses rather than the actual responses directly. There are simple implications for survey design as well. Variation in response is more likely to occur when surveys phrase satisfaction-related questions as multiple-choice questions (as in GDS-2), as opposed to a simple “yes/no” or “satisfied/dissatisfied”. Another way to induce variation in responses is by framing separate questions on satisfaction with _different aspects or features_ of a school or health facility (CWIQ surveys usually adopt this approach), as opposed to a single question on satisfaction with education or health services.

Our analysis also sheds light on which aspects of health and education services matter the most for user satisfaction in the case of Indonesia. How these determinants differ across rich and poor districts (the upper and lower 50 percent of the districts in the GDS-2 sample, ranked by GRDP per capita) also suggests differences in priorities among users depending on the economic condition of an area. Firstly, access to ancillary medical facilities supporting the main public health facilities (Puskesmas) is a universally important determinant of satisfaction with health services, whereas infrastructure and coverage are not. Infrastructure, on the other hand, seems to matter for user satisfaction with public school in poor areas. Local governments seeking to increase satisfaction with health facilities may therefore need to concentrate on

> 24 For services that are rarely used, like courts in many developing countries, a random household sample will need to be very large to ensure that a reasonable number of users are included, which can be impractical or too costly.

31
whether the injection of inputs and equipment together with business training is sufficient by itself to jumpstart self-employment or whether the intervention is complementary to other individual characteristics is an empirical question.

The analysis of this type of active labor market programs, where participation is non-random, raises the problem of the possible self selection of individuals into the program. For example, _Jefes_ beneficiaries with a stronger preference for a self-employment, a higher entrepreneurial ability or organizational capacity or with a larger labor market experience are more likely to self select into the program. To the extent that some of these characteristics are unobservable, this problem is difficult to address. The evaluation design of the productive grants was planned to mitigate significantly this source of bias, by exploiting two fundamental features of the program implementation. First, although the program has been promoted nationally through national newspapers and radio messages, municipalities and/or the local offices of the Ministry of Labor organized an additional effort to promote the program among _Jefes_ beneficiaries with seminars and public presentations. In this process, a registry with information on the beneficiaries who showed up at these public presentations and show potential interest in the program.<sup>12</sup> We used these registries to draw a sample of non-participants. Second, some municipalities experienced long delays in submitting projects or decided to opt out of the program, at least initially. This happened mostly due to the high administrative costs that the program imposes on municipalities. Hence, we can identify a group of _Jefes_ beneficiaries that were interested in the project from having signed up to the promotional activities but that ended up not participating either because they live in ‘non-participating’ municipalities or because there were delays in the project approval. This sample is likely to be quite similar to the group of MEP beneficiaries in

> 12 _Jefes_ interested in participating signed up for additional program information. In some cases, they even gave a general description of the project for which they would like to have financing.

6
-12-

We cite below guidelines of the United Nations Statistical Office for defining value added according to "census" concepts and "national<sup>accounts"</sup> concepts. The "national accounts" concept is designed to<sup>avoid duplication</sup> for the economy as a whole, and the "census" concept is concerned<sup>mainly to</sup> avoid duplication of output within the industrial sector. This "census" concept uf value added has very little legitimacy as a construct for avoiding duplication because manufacturing has very big inputs from the rest of the economy. There are large purchases of agricultural materials<sup>for food</sup> processing and large and increasirg purchases of services such as advertising, accountancy, cleaning, transport, etc. In fact, one of the reasons why modern economies are apparently increasingly concentrated on services, is that manufacturers now purchase these services externally whereas they previously produced them within their enterprises.

For these reasons, the old "census" definitions of value added are becoming increasingly anachronistic. Furthermore, the definitions of census value added vary between countries. This is not so important if the census contains enough information to permit estimation of value added<sup>on national</sup> accounting definitions, but unfortunately the US census information is not adequate for this, as we shall see below. For our purposes, the most useful value added concept is that used in the national accounts and in particular what we have called the "former national accounts" concept, where deduction is made at the industry level for inputs of intermediate financial services (see also chapter IV). In most countries, these intermediate financial services are usually deducted at a global level for all industries combined.

In practice in the detailed analysis of chapter III we had to settle for comparisons using the US Census of Manufactures definition of value added and switch to our preferred concept only at the level of manufacturing branches and manufacturing as a whole. In chapter IV which provides a direct bilateral comparison between Mexico and Brazil we were able to use our preferred "former national accounts" concept of value added throughout.

# Input-Output Tables Potentially Useful for Double Deflation

We were not able to make much use at this stage of the input-output tables (Mexico table 2.5, USA table 2.8). This was partly because in the US they were not readily reconcilable with the census information, and in the Brazil case because the statistical office (IBGE) had not published its work on the 1975 table. However, these tables will be most useful for purposes of double deflation (see chapter III and VIII) at a later stage.
skilled and unskilled, affect wage schedules in cases of large industries or industries with specific factors or mobility costs. These effects have been studied theoretically and empirically, without considering wage heterogeneity, by a large share of the tasks-approach literature of labor markets and technology adoption. In this paper we abstract from general equilibrium wage effects while instead focusing on firm-level outcomes and allowing for imperfect competition in labor markets.

# **4. Conclusions**

We develop a theoretical framework that expands the task-based models of technical progress and labor markets to allow for firm heterogeneity and wages that vary across firms. Our model is compatible with the empirical observation that more productive firms are larger, are more skill intensive, and pay higher wages across skill categories. Regarding investment in ICT, our model predicts that the decision to invest in ICT depends on firm size and labor market characteristics. As a result of investment in ICT, firms grow, become more intensive in complex tasks, and become more skilled intensive as long as skilled labor is complementary to ICT. Even if firms become more skilled intensive, the overall effect of ICT adoption on employment of unskilled workers could be positive if the increase in output due to the reduction in variable costs is sufficiently high. At the aggregate level, changes in employment depend on the distribution of firm productivity and the resulting concentration of production, as output effects become largest for the highest productivity firms. The changes in skill intensity and the absolute level of employment by worker type are questions open for empirical research. Workers who remain employed are better off because their wage increases with ICT. To the extent that skilled workers have more bargaining power than unskilled workers, or that their wage scheme is more tied to firm performance, wage inequality at the firm-level increases with ICT.

# **References**

Acemoglu D. and D. Autor (2011): “Skills, Tasks and Technologies: Implications for Employment and Earnings”. _Handbook of Labor Economics_ , vol. 4b, pp. 1044—1166.

Acharya, V., R. Baghai, and K. Subramanian (2013): “Labor Laws and Innovation,” _Journal of Law and Economics_ , vol. (56), pp. 997—1037.

Akerman, A., I. Gaarder, and M. Mogstad (2015): “The Skill Complementarity of Broadband Internet,” _The Quarterly Journal of Economics,_ vol.130(4), pp. 1781—1824.

Amiti, M. and D. Davis (2011): “Trade, Firms, and Wages: Theory and Evidence,” _Review of Economic Studies,_ vol. 79, pp. 1—36.

Autor D. H., and D. Dorn (2013): “The growth of low-skill service jobs and the polarization of the US labor market,” _The American Economic Review_ vol. 103(5), pp. 1553—1597.

30
Although loan officers were told which clubs had been fingerprinted in September 2007 when loan applications were due, they do not appear to have used this information in their loan approval decisions. Since biometric technology can be seen as a substitute for loan officer effort, one would expect loan officers to have better knowledge about non-fingerprinted clubs. However, this is not what we find.

Online Appendix Table 2 combines the reports from all loan officers collected in August 2008 as well as borrower responses in the August 2008 follow-up survey. Loan officers were first asked about the specific treatment status of five clubs randomly selected from the sample of clubs for which they were responsible. They were then asked whether they knew the secretary or president of the club and finally they were asked to estimate the number of loans given out in each club. The first row of the table shows that loan officers had very little knowledge about the actual treatment status of clubs. Only 54 percent of the fingerprinted clubs are reported correctly as being fingerprinted and an even lower 22 percent of non-fingerprinted clubs are reported correctly as such. Pure guesswork would yield an accuracy rate of 50 percent. This evidence alone suggests that loan officers did not take into account treatment status in their interactions with the clubs.

Loan officers know club officers roughly half of the time, and on average misreport the number of loans disbursed to a club by 1.5 loans. More importantly, there are no statistical differences in the reporting accuracy of fingerprinted clubs compared to non-fingerprinted ones.

Borrower reports in the last three rows of the table paint a similar picture. Loan officers are no more likely to visit non-fingerprinted clubs to collect repayment compared to fingerprinted clubs, and as a result, members of non-fingerprinted clubs report talking the same number of times to loan officers as do members of fingerprinted clubs. Finally, they all report finding it relatively easy to contact the loan officer.

The evidence in the table indicates that loan officers did not respond to the treatment. Therefore, any impacts of the treatment should be interpreted as emerging solely from borrowers’ responses to being fingerprinted.

Because loan officers did not take treatment status into account, it is not surprising that fingerprinting had no effect on loan approval. We also find no effect on loan-take-up by 14
**Plc,Planning, and Research**

# **Trade Policy**

The application of index numbers to disaggregated Korean footwear exports during 1974-85 suggests that binding voluntary export restraints (VERs) led to significant price increases but not to the upgrading of quality predicted in earlier theoretical analyses.

Unlike most previous empirical studies of VERs, the results de Melo and Winters present in this paper were derived from exporters' rather than imponers' data. Thus they provide a more direct test of the reactions of exporting countries subject to VERs.

Drawing their comparisons from multilateral indices (adjusted for changes in product and country mix), the authors found that the price of Korean footwear exports to the United States (and to a lesser extent to the United Kingdom) rose significantly in the years when VERs were binding (when quotas were filled).

VERs were associated less with quality - upgrading and if anything for exporters whose objective was foreign exchange eamings - rather than profit maximization were possibly associated with quality (.owngrading.

The pattem of quality changes across markets seems not to have varied significantly during the VER period, so adjustment costs may have been enough to prevent a change in product mix toward restricted markets.

The empirical results, the authors conclude, confirm that as a result of VER-type restrictions on shoes, rents accrue to the exporting country (and some rents to the importers, if imponing is not a competitive activity) - but shoes do not show the improved quality that automobiles do under similar restrictions.

This paperis a product of the Trade Policy Division, Country Economics Department. Copies are available free from the World Bank, 1818 H Street NW, Washington DC 20433. Please contact Maria Ameal, room N8-073, extension 61466 (36 pages with tables).

The PPR Working Paper Series disseminates the findings of work under way in the Bank's Policy. Plannitng, and Rcsearch Complex. An objective of the series is to get these fimdings out quickly, even if presentations are less than fully polished. The findings, interpretations, and conclusions in thcse papers do not necessarily represent official policy of the Bank.

Produced at the PPR Dissemination Center