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This paper examines whether an individual-level transfer of property rights increases the individual's bargaining power within the household. The question is analyzed in the context of a housing reform that occurred in China that gave existing tenants the opportunity to purchase the homes that they had been renting from their state employers. The rights to each housing unit were granted to a particular employee, so property rights were defined at the individual level rather than the household level. The results indicate that transferring ownership rights to men increased household consumption of some male-favored goods and women's time spent on chores. Transferring ownership rights to women decreased household consumption of some male-favored goods.
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There are an estimated 750 million internal migrants in the world, yet the effects of access to internal migration for rural households are not well understood. Internal migrants may provide wealth transfers, insurance or credit to households remaining in rural areas. This paper exploits two unique features of China's history to study the impact of relaxing migration constraints on the outcomes and choices of agricultural households: reforms to the household registration (hukou) system that relaxed restrictions on migration, and historical, centrally-planned migration flows. We show that historical flows of temporary migration due to a government policy called the "sent-down youth" (SDY) program created lasting inter-province links, so that decades later, reforms to the hukou system in cities which sent SDY increased migration in provinces where those SDY were sent. Using this variation, we find that improved access to migration leads to higher levels of consumption and lower consumption volatility for rural households. Furthermore, household production decisions change, with a shift into high-risk, high-return activities including animal husbandry and fruit farming.
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This paper examines the impact of a property rights reform in rural China that allowed farmers to lease out their land. We find the reform led to increases in land rental activity in rural households. Consistent with a model of transaction costs in land markets, our results indicate that the formalization of leasing rights resulted in a redistribution of land toward more productive farmers. Consequently, the aggregate productivity of land increased significantly. We also find that the reform increased the responsiveness of land allocation across crops to changes in crop prices.
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Using new data matching remittances and monthly payroll disbursals, we demonstrate how fluctuations in migrants' earnings in the United Arab Emirates affect their remittances. We consider three types of income fluctuations that are observable by families at home: seasonalities, weather shocks and a labor reform. Remittances move with all of these income changes. Remittances do not move with an individual's growth in earnings over time. The slope of the relationship between earnings and time in the UAE varies across individuals and is not easy to observe by families. Thus, a key characteristic that drives remittance behavior is the observability of income rather than other features of these fluctuations. The results are consistent with a private information model where remittances are viewed by the migrant worker as payments to their families in an income-sharing contract.
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· 2019
Combining eight years of panel data with an event study approach, we show that rural Chinese women's labor supply falls for one year following the birth of a daughter before returning to their pre-birth levels. The negative impact of the birth of a son on women's labor supply is much larger in magnitude and persists for four years. We also find that households reduce their cigarette consumption more following the arrival of a boy than a girl. Furthermore, there is an increase in the mother's probability of being in school, her leisure time, and her participation in household decision-making following the birth of boys relative to daughters. There is no evidence of increases in investments in boys that would be complementary to mothers' time, such as breastfeeding, immunizations or consumption of milk or meat. Together, these results are consistent with the idea that mothers are rewarded for giving birth to boys, leading them to have more leisure and work less.
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· 2008
The second chapter provides new evidence on the impact of private property rights on an individual's decision to become an entrepreneur. I develop a model of job choices to understand how the institutional features of the Chinese housing market influenced individuals' decisions to engage in wage employment or entrepreneurship. The empirical results suggest that the property reform led to an increase in self-employment among individuals who received the opportunity to buy a state home.
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In this paper, we demonstrate that university students who cheat on a simple task in a laboratory setting are more likely to state a preference for entering public service. Importantly, we also show that cheating on this task is predictive of corrupt behavior by real government workers, implying that this measure captures a meaningful propensity towards corruption. Students who demonstrate lower levels of prosocial preferences in the laboratory games are also more likely to prefer to enter the government, while outcomes on explicit, two-player games to measure cheating and attitudinal measures of corruption do not systematically predict job preferences. We find that a screening process that chooses the highest ability applicants would not alter the average propensity for corruption among the applicant pool. Our findings imply that differential selection into government may contribute, in part, to corruption. They also emphasize that screening characteristics other than ability may be useful in reducing corruption, but caution that more explicit measures may offer little predictive power.
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Using a randomized experiment with an automobile manufacturing firm in China, we measure the effects of letting workers evaluate their managers on worker and firm outcomes. In the treatment teams, workers evaluate their supervisors monthly. We find that providing feedback leads to significant reductions in worker turnover and increases in team-level productivity. In addition, workers report higher levels of happiness and positive mood. The evidence suggests that these results are driven by changes in the behavior of managers and an overall better relationship between managers and workers.