rafmacalaba/datause-encoder-data huggingface dataset:
characteristics including age, education, and gender. With this conditional distribution in hand, the change in the actual distribution of residential locations of Hispanics over an interval is decomposed into components due to changes in the “returns” to these characteristics in influencing locational choice, and changes in the characteristics themselves over the two periods. This is accomplished through the creation of the counterfactual distribution for residential locations in the second period assuming that the returns to individual characteristics remained the same as in the first period, while allowing for the individual characteristics to change.

# **6.11 Machine Learning and Big Data**

Use of machine learning methods has begun to appear in the regional economics literature. One of the earliest applications involved the use of regression trees to identify convergence clubs (Durlauf, Johnson, and Temple 2005). That paper is important for signaling a change in the receptiveness of economists to the use of data instigated approaches to economic analysis. Previously dismissed as “measurement without theory”, these new machine learning methods are increasingly seen as being novel approaches to uncover empirical patterns that have been previously unrecognized. These new patterns, in turn, provide the basis for more flexible processbased modeling of regional economic growth, and the fusion of machine learning approaches with econometric models offers new avenues to address questions surrounding model stability and process heterogeneity.

Alongside the adoption of machine learning methods, has been a recognition of the potential for new types of data sources to advance the study of regional economic development. Drawing on the big data revolution, economists have begun to tap into new forms of data that are now becoming available at spatial extents, scales, and temporal frequencies that were previously beyond reach. A prominent example is the use of remote sensing imagery and pattern recognition algorithms to provide scalable analyses of regional growth (Lessmann and Seidel 2017). The question of the inverted-U relationship between the level of spatial inequality in a country and the country’s level of economic development is revisited through an expanded cross-section of regions made possible through the use of remote sensing data on night-time lights. The approach is to first estimate a model relating regional incomes to luminosity for countries with established regional accounts. This relationship is then employed to generate estimates for income in regions in developing 45
# **B.2 Descriptive statistics**

## **Table B.1:** General Utilization

|Median|Mean|SD|Min|Max<br>N|BL data|
|---|---|---|---|---|---|
|(1) Number of health episodes in which sought western care<br>1<br>12 _♦_<br>1|0.988|0.382|0|3<br>4496|Yes|

Questions about ante and post natal care, vaccinations and illness/injury episodes are asked for the past one month. Questions about child birth are asked about the past year. †: dummy variable; §: likert scale (1-4); _¶_ : likert scale (1-5); _♦_ : measured across all health episode types (ante and post natal care, child birth, under-2 vaccinations, and illness and injury); w , 1 , 6 , and 12 stand for measures referring to the last week, one month, six months and twelve months respectively.

**Table B.2:** Maternal Utilization

||Median|Mean|SD|Min|Max|N|BL data|
|---|---|---|---|---|---|---|---|
|(1) ANC/PNC visits index<br>12|_−_0.187|_−_0.054|0.956|_−_1.779|5.602|887|Yes|
|(2) Birth in western medicine facility<br>12 †|1|0.862|0.345|0|1|877|Yes|

†: dummy variable; §: likert scale (1-4); _¶_ : likert scale (1-5); _♦_ : measured across all health episode types (ante and post natal care, child birth, under-2 vaccinations, and illness and injury); w , 1 , 6 , and 12 stand for measures referring to the last week, one month, six months and twelve months respectively.

**Table B.3:** Health Outcomes

||Median|Mean|SD|Min|Max|N|BL data|
|---|---|---|---|---|---|---|---|
|(1) U5 Child death per HH<br>6 †|0|0.033|0.178|0|1|5053|Yes|
|(2) Maternal death per HH<br>6 †|0|0.001|0.034|0|1|5053|Yes|
|(3) Illness/injury in HH<br>1 †|1|0.583|0.493|0|1|5053|Yes|
|(4) Child weight for length|0.600|0.621|1.633|_−_4.910|4.980|1991|No|
|(5) Vaccine completion index (Under 2)|4|3.117|2.589|0|7|1457|Yes|
|(6) Child birth complication index<br>12|_−_0.619|_−_0.002|0.975|_−_0.619|2.649|856|Yes|
|(7) Child illness index<br>1|_−_0.091|0.028|0.924|_−_1.435|3.424|4993|Yes|

Maternal death is defined as death relating to either pregnancy complications or childbirth. The Pentavalent Vaccination targets diphtheria, tetanus, whooping cough, hepatitis B, and haemophilus influenza type B. †: dummy variable; §: likert scale (1-4); _¶_ : likert scale (1-5); _♦_ : measured across all health episode types (ante and post natal care, child birth, under-2 vaccinations, and illness and injury); w , 1 , 6 , and 12 stand for measures referring to the last week, one month, six months and twelve months respectively.

**Table B.4:** Satisfaction

||Median|Mean|SD|Min|Max|N|BL data|
|---|---|---|---|---|---|---|---|
|(1) Satisfaction with family health §|4|3.469|0.657|1|4|5052|Yes|
|(2) Satisfaction with public health workers §|3|3.291|0.791|1|4|4994|Yes|
|(3) Satisfaction with care<br>1 _♦_§|4|3.658|0.670|1|4|2535|Yes|
|(4) Would return to clinic_♦_†|1|0.969|0.168|0|1|2527|Yes|

†: dummy variable; §: likert scale (1-4); _¶_ : likert scale (1-5); _♦_ : measured across all health episode types (ante and post natal care, child birth, under-2 vaccinations, and illness and injury); w , 1 , 6 , and 12 stand for measures referring to the last week, one month, six months and twelve months respectively.

A11
whatever increases the value of autarchy, decreases risk sharing (e.g. decreasing the variance of income process or increasing the persistence of idiosyncratic shocks). Unconditional cash transfers, according to this class of models, induce an increase in the value of autarky which implies a reduction in risk sharing reflected by reduced private transfers. However, empirical evidence on models with imperfect enforceability is still limited: Foster and Rosenzweig (2001), Ligon et al. (2002) and Krueger and Perri (2006) consider different implications of imperfect enforceability and test them on data from Bangladesh, India and the US, respectively.

The closest work to the type of analysis we carry out in the second part of the paper, is the one of Albarran and Attanasio (2001) where the two authors exploit the randomized design of the PROGRESA dataset in Mexico and show the crowding out effect of the program on pre-existing private transfers that leads to an overall welfare decrease in the beneficiaries. In a subsequent work (Albarran and Attanasio, 2003), they focus on empirical implications of models with limited risk sharing due to imperfect enforceability of contracts and they show that the amount by which public transfers reduce private transfers is affected by features of the economy such as the variance of income at village level.

# **3. The Institutional Framework**

The Government of Malawi defines social protection as “ _all public and private initiatives that provide income or consumption transfers to the poor, protect the vulnerable against livelihood risks and enhance the social status and rights of the marginalized, with the overall objective of reducing their economic and social vulnerability_ ” (Government of Malawi, 2007).

The International Labour Organization (ILO, 2001) distinguishes these initiatives into three main broad categories: social insurance (i.e. usually contributory and tax-funded schemes), labor market regulation (i.e. legal frameworks aimed at ensuring minimum standards of working conditions) and social assistance (i.e. usually publicly funded and non contributory schemes aimed at addressing poverty and vulnerability). Social cash transfers are included in the latter category and 6
<!-- Start of picture text --> S3=< Stopped working, started working, net change in employment<br>6<br>i3<br>Q 0-- aan a a ~<br>oD® —_—<br>—<br>2 -10 =<br>zOo$ -20 —<br>fe)<br>g2 -30-<br>n HIC UMIC LMIC LIC<br>GB Apr-Jun 2020 Jul-Dec 2020 [© 2021<br>— Netchange<br>HICs: 8; UMICs: 24; LMICs: 25; LICs: 18.<br><!-- End of picture text --> <!-- Start of picture text --> <&Stopped working, started working, net change in employment<br>cc 20-<br>g<br>3<br>romoO<br>Do = - a —<br>&D F F L<br>z -20- _<br>rel<br>fe)<br>o5 «40<br>ra East AsiaPacific and CentralAsiaEurope and andLatinCaribbean America Middle EastNorth Africa and Sub-SaharanAfrica<br>GB Apr-Jun 2020 Jul-Dec 2020 [© 2021<br>— Netchange<br>EAP: 11; ECA: 8; LCA: 24; MNA: 6; SSA: 26.<br><!-- End of picture text -->
53

# Auerbach, Alan J. "Capital Gains Taxation and Tax Reform." National Tax Journal Vol XLII No.3, September 1989.

# Barret, Matthew. Euromoney, August 1987.

- Beaver, W.; Kettlere P.; and Scholes, M. "The Association between Market Determined and Accounting Determined Risk Measurement." The Accountlng Review. Vol. 45, October 1970.

-

- Brooke, RogGr. "Management Buyoute A Growing Source for Venture Capital." In Stanley E. Pratt (Ed.) Guide to Venture Capital Sources. Wellesley: Capital Publishing Corporation, 1986.

- Brophy, D.J. "Venture Capital Investment." In Babson Collece EntrepreneurshiD Research Conference Proceedings. Edited by the Center for Entrepreneurial Studies of Babson College. Wellesley, 1981.

- Bygrave, W.D. and Timmons, J.A. "An Empirical Model for the Flows of Venture Capital." In Babson College Entrepreneurship Research Conference Proceedings. Edited by the Center for Entrepreneurial Studies of Babson College. Wellesley, 1985.

- Campbell, T. and Kracaw, M. "Information Production, Market Signalling, and the Theory of Financial Intermediation." Journal of Finance 37. 1980.

- Canadian Venture Capital Journal, various issues.

- Chan, Y.S. "On the Positive Role of Financial Intermediation in Allocation of Venture Capital in a Market with Imperfect Information." Journal of Finance 38, 1983.

- Chan, Y.S.; Siegel, D.; and Thakor, A.V. "Learning, Corporate Control and Performance Requirements in Venture Capital Contract." Department of Finance, Northwestern University Working Paper No. 36, 1987.

- Fournier, Thierry. "Le Capital-Risque Francais." La Revue Banaue (France), Nov. 1987.

- Golder, Stanley C. "Structuring the Financing." In Stanley E. Pratt (Ed.) Guide to Venture Capital Sources. Wellesley: Capital Publishing Corporation, 1986.

- Gorman, M. and Sahlman, W.A. "What Do Venture Capitalists Do?." In Babson College Entreoreneurshin Research Conference Proceedings. Edited by the Center for Entrepreneurial Studies cf Babson College. Wellesley, 1986.

- Gotoh, Yukio. "Venture Capital in Japan." Institute of Economic Research, Kobe University of Commerce, Japan, Working Paper No. 84, 1985.
a price change. But the resulting negative effect of rent on own-consumption of yard space is offset by an additional positive effect that arises through an increase in the homeowner’s “full income” (non-rental income plus income from renting the entire yard area). As a result, the effect of land rent on the amount of land rented out, and thus on the extent of backyarding, is ambiguous in general. A similar ambiguity arises in the labor-leisure choice, where a higher wage raises full income along with the price of leisure. This ambiguity is not present, however, when the homeowner’s preferences take the Cobb-Douglas form or the more-general CES form (as long as the elasticity of substitution is reasonably high). In these familiar cases, a higher rent decreases yard-space consumption, raising the amount of yard area rented out and thus the extent of backyarding.

With backyarders willing to pay more for land near employment centers, the rent they offer rises with job access, which then tends to raise the extent of backyarding, given the positive connection between the yard area rented out and the rent level. But better job access also raises the homeowner’s income net of commuting cost, which tends to reduce his willingness to rent out yard space. However, under the assumption that homeowner and backyarder earnings differ only through their extent of labor market attachment, it is shown that the net effect of job access on backyarding is positive, an effect that constitutes the main empirical prediction of the model. While the prediction may seem natural, being similar to usual association between population density and job access in urban models, the existence of the opposing effects of job access on rent and homeowner net income means that the prediction is by no means automatic.

The paper’s empirical work adds to a large empirical literature on housing in developing countries, but there is little precedent for the actual empirical exercise that we carry out and thus little direct connection to any previous paper.<sup>4</sup> The empirical work is mainly devoted to testing the job-access prediction, and it relies on a number of data sets sourced from Cape Town’s city government. The first data set comes from digital aerial photography and highresolution satellite images, which give point locations of buildings along with an associated land-use classification per building, including informal uses. We overlaid these spatial data on a digital map of land-parcel contours from the City of Cape Town’s cadastre, yielding a count of the number of backyard dwellings per land parcel. After various exclusions, our data set 3
Finis, W. 1979. “Effect of Cohort Size on Earnings: The Baby Boom Babies’ Financial Bust.” _Journal of Political Economy_ 87(5): S65-S97.

<mark>Foster, A., E. Gutierrez, and N. Kumar. 2009. "Voluntary Compliance, Pollution Levels, and Infant Mortality in Mexico."</mark> _<mark>American Economic Review</mark>_ <mark>99(2): 191-97.</mark> Gørgens, T., X. Meng, and R. Vaithianathan. 2012. _“_ Stunting and Selection Effects of Famine: A Case Study of the Great Chinese Famine.” _Journal of Development Economics_ 97(1): 99–111.

Halla, M., and M. Zweimüller. 2014. “Parental Response to Early Human Capital Shocks: Evidence from the Chernobyl Accident.” _Discussion Paper 7968_ , Institute for the Study of Labor.

Hansen, C. W. 2013. “Life Expectancy and Human Capital: Evidence from the International Epidemiological Transition.” _Journal of Health Economics_ 32(6): 1142–1152.

Hazan. M. 2009. “Longevity and Lifetime Labor Supply: Evidence and Implications.” E _conometrica_ 77(6): 1829–1863.

Hazan. M. 2012. "Life Expectancy and Schooling: New Insights from Cross-Country Data." _Journal of Population Economics_ 25(4): 1237-1248.

<mark>Heckman, James J. 1976</mark> . <mark>“A Life-cycle Model of Earnings, Learning, and Consumption.”</mark> _<mark>Journal of Political Economy</mark>_ <mark>84(4, Part 2):</mark> S9– <mark>S44.</mark> Jayachandran, S., and A. Lleras-Muney. 2009. “Life Expectancy and Human Capital Investments: Evidence from Maternal Mortality Declines.” _Quarterly Journal Economics_ 124(1): 349–398.

Jayachandran, S. 2009. _“_ Air Quality and Early-life Mortality Evidence from Indonesia’s Wildfires.” _Journal of Human Resources_ 44(4): 916–54.

Karlan, D., and J. Appel. 2011. _More than Good Intentions: How a New Economics is Helping to Solve Global Poverty._ New York: Dutton.

Lee, J.-W., and H. Lee. 2016. “Human Capital in the Long Run.” _Journal of Development Economics_ 122: 147-169.

León, G. 2012. <mark>“Civil Conflict and Human Capital Accumulation: Long-term Consequences of Political Violence in Perú.”</mark> _<mark>Journal of Human Resources</mark>_ <mark>47(4): 991-1023.</mark> Lucas, A. M. 2010. “Malaria Eradication and Educational Attainment: Evidence from Paraguay and Sri Lanka.” _American Economic Journal: Applied Economics_ 2(2): 46-71.

Maccini, S., and D. Yang. 2009. “Under the Weather: Health, Schooling, and Economic Consequences of Early-life Rainfall.” _American Economic Review_ 99(3): 1006–1026.

33
The VL program also appears to be well targeted to the expected age group in the sense that leakage to households without any children of age six and under is relatively small. Further, despite substantive growth in total expenditures and in the number of participating families since 1994, the share of households without young children that received VL transfers only rose approximately 4 percentage points from 8 percent in 1994 to 12 percent in 2000. These figures admittedly overestimate the degree of leakage, given that some of these households may have pregnant women and/or may have children who were recently in the age bracket.

Targeting of expenditure levels-as opposed to the number of participants-is also directed toward the poor, as indicated in Table 5. Over 60 percent (and up to 76 percent, depending on the year) of the value of all transfers is allocated to poor households.<sup>4</sup> Among households with young children, the average transfer to poor households is 54 Soles greater than the average transfer to nonpoor households.

Table **4: Targeting Performance of Vaso de Leche Expenditures**

|_Dataset/year_|_Percentof"poor"_<br>_intheprogram_<br>_(coverage)_|_Percentof"nonpoor"_<br>_intheprogram_<br>_(leakage)_|_Targeting_<br>_coefficient_|_Probability_<br>_ofuntargeted_|
|---|---|---|---|---|
|_Targetingbasedo _<br>|_npovertyamonghous_<br>|_eholdswith kidsofage6 a _<br>|_ndunder..._<br>||
|ENNIV1994|36.02|12.43|23.59|0.001|
|ENNIV1997|52.55|23.49|29.07|0.001|
|Enaho1998|58.34|28.34|30.49|0.001|
|Enaho1999|60.95|30.19|30.76|0.001|
|Enaho2000|61.83|27.03|34.80|0.001|
|_Targetingbasedo _<br>|_npovertyamongallh_<br>|_ouseholds..._<br>|||
|ENNIV1994|29.94|8.25|21.69|0.001|
|ENNIV1997|45.42|16.31|29.11|0.001|
|Enahe1998|47.50|18.25|29.24|0.001|
|Enaho1999|48.86|19.64|29.22|0.001|
|Enaho2000|48.58|16.84|31.74|0.001|
|_Targetingbasedo _|_nchildmalnutrition_||||
|ENNIV1994|42.47|26.24|16.23|0.001|
|DHS1996|40.23|24.57|15.66|0.001|
|ENNIV1997|63.45|39.62|23.83|0.001|

4Note that the poverty headcount ratio is 48 percent.

_13_
strategy and equilibria. In this area, Helland and Tabbarrock (2003) find that contingency fees increase the quality of litigation and reduce the average time to settlement. Watanabe (2007) structurally estimates an agency model using medical malpractice data and finds that a limitation on contingency fees would reduce welfare.

A few articles have considered adverse-selection problems between clients and lawyers, that is, situations in which intrinsic differences across lawyers rather than incentives dominate the effects that lawyers have on lawsuit outcomes. Along these lines, Szmer, et. al. (2007) study lawyer effects in Canadian Supreme Court cases and find that more experienced lawyers obtain more favorable outcomes conditional on going to trial. Nevertheless, the empirical literature testing such models has been limited by the selection effect arising from the fact that clients with good cases may be more likely to select good lawyers. The literature testing moral hazard models also suffers from this selection problem since they assume that lawyers’ effects on lawsuit outcomes are determined solely by incentives provided through the lawyers’ compensation schemes, and not by differences in the lawyers themselves or by differences in the quality of their cases.

Kaplan et. al. (2008) studied the determinants of success and case outcomes in the federal labor courts in Mexico. Among other results, it was found that controlling for all observables in a lawsuit, including what the worker claims, the suit appears more successful for the worker when it concludes in settlement. This evidence is consistent with an asymmetric-information bargaining framework in which the firm is the relatively more informed party. Our theoretical model will assume that the firm has better information, which implies that workers go to court when their cases are relatively weak.

# 3 Legal Framework

As we mentioned earlier, Mexican labor law is highly protective of workers. The law regulates hours and working conditions, health risks, fringe benefits, and firing. In this paper we analyze firing lawsuits, so a discussion of the regulation of firing is in order. Under Mexican law, firing can either be considered justified or unjustified. In order for firing a worker to be justified under the law, the worker must have engaged in wrongful behavior such as deliberately destroying the firm’s machinery or materials, physically attacking a supervisor, showing up to work under the influence of alcohol or drugs, or being absent from work repeatedly without justification. Remarkably, firing a worker for lack of productivity or laying off a worker during downturns is not considered to be justified.<sup>3</sup> In order to fire a worker, a firm must notify the worker in writing, stating the cause for firing the worker. Given that firms must state one of the causes

> 3 The discussion of Mexican labor law in this section is based on the Ley Federal del Trabajo (LFT), Title II, Chapter IV, as well as on the Reglamento Interior de la Junta Federal de Conciliación y Arbitraje (Internal Regulations of the Federal Labor Board).

5
-6 -

# 11 INIIATION AND SEQUENCING

Manual methods of trading securities were satisfactory for many years; why has IT become such an influence recently? One answer is that the availability of lower<sup>cost, fast and aczurate</sup> IT systems is a development which grew alongside the growth in secondary securities markets. But<sup>why</sup> did the markets take to IT so readily?

The answer is to be found in the fact that a central function of st, urities markets is the ..andling cf information. As the volume of that information grew and the demand for greater<sup>access to</sup> it also grew, it was natural that IT would be brought in to supplement manual processes.<sup>The price-</sup> setting mechanism at the very core of secondary securities trading requires the exposure<sup>of current bids</sup> and offers and information about recent transaction prices. Supplementary information about the enterprises which underlie the securities being traded is also important in a decision to buy<sup>or sell. Post-</sup> trade transaction processing and market monitoring are also built around the collection, assimilation and dissemination of information.

The driving force for the increased use of IT .n securities m?rkf is consequently diverse and variously motivated. First, it may be introduced to respond to the demands<sup>of intermediaries and</sup> their c!ients for more efficient execution of transactions and for access to more sophisticated<sup>trading</sup> strategies. In emerging markets this demand is strongest wben the financial<sup>sector have reached a degree</sup> of development which makes such improvements important for further progress;<sup>for example, when the</sup> volume of securities trading has grown to overwhelm existing systems or where<sup>development of viable</sup> contractual savings institutions requires that they have access to timely and accurate<sup>trading data to allow</sup> them to use modern portfolio management techniques.

Second, market providers such as stock exchanges may seek to improve market infrastructure by introducing IT to provide added value or to reduce transaction<sup>costs and enhance their</sup> position in the financial sentices market. Existing stock exchanges in<sup>many places have been spurred to</sup> such initiatives by competition from independent infcrmation providers<sup>such as Reuters Plc. which have</sup> developed a range of securities market systems which are a direct<sup>challenge to many of the r iles</sup> traditionally performed by stock exchanges.<sup>6</sup>

> **6** Twenty such proprietary electronic trading systems are registered with the US SEC. twelve of which are pressntly active.