New IZA DPs -- Development
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IZA DP Alerts
May 18, 2026, 9:09:28 AMMay 18
to it...@umich.edu
IZA Discussion Papers
Dear Italo Gutierrez,
These new IZA Discussion Papers are now available online.
DP 18492 - Bloem/Ghorpade/Imtiaz:
Shaken, but Not Deterred: Acute Stressors and the Formation of Hope and Aspirations among Tertiary-Educated Youth in Myanmar in the Aftermath of the 2025 Earthquake
DP 18493 - Azam:
The Enclave Penalty: Tribes, Caste, and Electricity Reliability in India
DP 18551 - Bargain/Jara/Magejo/Ntuli:
Inclusive Growth in South Africa? Inequality Dynamics and the Role of Trade Openness vs Tax Policies
DP 18558 - Bonilla-Mejía/Muñoz-Morales/Zarate:
Complements or Substitutes? Labor Market Effects of Foreign Inputs in Developing Economies
DP 18582 - Ben Cheikh/Rault:
Financial Inclusion for Inclusive Growth
DP 18583 - Giuliano:
Sticky Traditions: Origin, Persistence, and Evolution of Cultural Norms
DP 18614 - Rivadeneira/Canavire Bacarreza:
Attached Once, Attached Forever: The Persistent Effects of Concertaje in Ecuador
Please find the abstracts and download links below.
IZA DP No. 18492
Jeffrey R. Bloem, Yashodhan Ghorpade, Muhammad Saad Imtiaz:
Shaken, but Not Deterred: Acute Stressors and the Formation of Hope and Aspirations among Tertiary-Educated Youth in Myanmar in the Aftermath of the 2025 Earthquake
Abstract:
Although hope and aspirations are increasingly considered to be both intrinsically and instrumentally valuable, quantitative evidence on the formation of these factors is limited. Using data from a sample of educated youth in Myanmar, this paper documents the relationship between various sources of chronic and acute stressors with measures of hope and aspirations. We find that hope and aspirations are tightly linked with chronic stressors (low relative income and labor market mismatch), but not to exposure to an acute stressor (a large and destructive earthquake). The results suggest that policies that aim to address sources of chronic stress (such as poverty and employment outcomes) may have underappreciated psychological benefits that complement standard economic benefits measured in the form of higher wages and employment outcomes. This further emphasizes the need to continue efforts toward development objectives that can mitigate the effects of chronic stressors, even wh en more acute shocks occur. Additionally, policy responses to emergency and disaster situations may be most effective if they focus on immediate material needs so that an acute stressor does not become a chronic stressor.
https://docs.iza.org/dp18492.pdf
IZA DP No. 18493
Mehtabul Azam:
The Enclave Penalty: Tribes, Caste, and Electricity Reliability in India
Abstract:
India has achieved near-universal electrification, yet large inequalities persist in the reliability of the electricity supply. Combining high-resolution satellite-based measures of electricity reliability—defined as the share of nights with detectable illumination—with village-level census data, this paper shows that reliability remains systematically unequal across social groups. While Scheduled Caste villages largely track district-level reliability, Scheduled Tribe (ST) villages face a pronounced enclave penalty. Homogeneous ST enclaves (ST population ?90%) exhibit 10.7 percentage points fewer illuminated nights than otherwise comparable villages within-district with low ST shares. We further identify a mobility trap: homogeneous ST enclaves are about 16.6 (16.0) percentage points more likely to remain energy poor in 2012 (2019) and 11.7 percentage points less likely to escape energy poverty between 2012 and 2019. These findings suggest that as access becomes universal, i nfrastructure exclusion increasingly operates through a less visible rationing of service quality in socially homogeneous tribal settlements.
https://docs.iza.org/dp18493.pdf
IZA DP No. 18551
Olivier B. Bargain, H. Xavier Jara, Prudence Magejo, Miracle Ntuli:
Inclusive Growth in South Africa? Inequality Dynamics and the Role of Trade Openness vs Tax Policies
Abstract:
Market forces, and notably the role of trade openness, contribute to shaping inequality in South Africa and may limit the inclusiveness of its growth path. Recently, policy reforms may have helped to mitigate these effects. To better understand these developments, we analyze trends in post-tax income inequality using matched employer-employee administrative data from 2012 to 2021 and an original decomposition based on counterfactual tax microsimulations. Our results show that the benefits of increased trade openness during this period has benefited top earners essentially, while other workers - particularly those in the middle class - were adversely affected. This inequality-enhancing impact was partially offset by the automatic stabilizing response of the personal income tax system and by reforms that increased its progressivity. Overall, the analysis highlights the critical role of fiscal policy in counteracting inequality arising from labor-market disparities linked to glo balization.
https://docs.iza.org/dp18551.pdf
IZA DP No. 18558
Leonardo Bonilla-Mejía, Juan S. Muñoz-Morales, Roman David Zarate:
Complements or Substitutes? Labor Market Effects of Foreign Inputs in Developing Economies
Abstract:
This paper examines how import liberalization affects labor markets when labor and intermediate inputs can act as complements or substitutes. We incorporate a CES production function into a dynamic quantitative trade model and show that the labor market effects of imports depend on the elasticity of substitution between labor and intermediate inputs, which varies across sectors. Exploiting exogenous tariff reductions in Colombia and applying a difference-in-differences strategy, we separate the reduced-form effects of trade into an input shock and a competition shock. Import competition reduces the wage bill across sectors, whereas cheaper intermediate inputs increase it. This increase is driven by the service sector, with imprecise effects in manufacturing and an opposite-sign effect in agriculture. Combining the model with the reduced-form parameters, we implement indirect inference to recover sector-specific elasticities of substitution and find that labor and intermediate s are substitutes in agriculture and manufacturing but complements in services. Allowing for a more flexible production structure meaningfully changes the labor market response to trade.
https://docs.iza.org/dp18558.pdf
IZA DP No. 18582
Nidhaleddine Ben Cheikh, Christophe Rault:
Financial Inclusion for Inclusive Growth
Abstract:
Using a sample of 67 countries, this paper examines how financial inclusion shapes the transition to inclusive and sustainable growth. First, we analyze the heterogeneous and asymmetric effects of key determinants using panel quantile regression. The results show that financial inclusion, institutional quality, and ICT diffusion significantly affect inclusiveness only in the lower tail of the distribution. While financial inclusion and ICT diffusion appear detrimental, institutional quality promotes shared prosperity. Second, we explore a mediating effect using a non-linear panel threshold model. The findings highlight the role of financial inclusion in enhancing inclusive growth. Although ICT infrastructure negatively affects inclusiveness at low levels of financial inclusion, this relationship becomes positive beyond a certain threshold. These results suggest that policymakers should combine financial inclusion, governance quality, and ICT development to foster inclusive gr owth.
https://docs.iza.org/dp18582.pdf
IZA DP No. 18583
Paola Giuliano:
Sticky Traditions: Origin, Persistence, and Evolution of Cultural Norms
Abstract:
This chapter reviews the growing literature on the origin, persistence and evolution of cultural norms. I begin by examining the deep historical forces that shape the formation of cultural norms, with particular attention to the role of geography, pre-industrial societal characteristics, political institutions, and historical shocks. I then analyze the mechanisms through which cultural norms persist and evolve, emphasizing the roles of vertical, horizontal, and oblique transmission. Next, I examine the complex interaction between culture and institutions, and discuss the conditions under which cultural norms change. Several conclusions emerge. Cultural norms tend to persist over remarkably long periods, though the speed of change varies significantly across traits. Understanding the origins and persistence of cultural norms has important implications for policy: policies that ignore local cultural context risk failure or unintended consequences, while well-designed interventi ons can successfully shift norms. Finally, I discuss the growing evidence on cultural mismatches - situations where norms that were adaptive in historical environments become maladaptive in new contexts - and outline directions for future research.
https://docs.iza.org/dp18583.pdf
IZA DP No. 18614
Alex Rivadeneira, Gustavo J. Canavire Bacarreza:
Attached Once, Attached Forever: The Persistent Effects of Concertaje in Ecuador
Abstract:
This paper studies the long-run intergenerational effects of concertaje, a widespread forced labor system in the Americas from the Spanish colonial era that coerced indigenous workers in rural estates (haciendas) after causing them to become indebted. We collected and digitized the universe of historical individual-level tax records (1800) in what is today Ecuador and connected them to likely descendants using the universe of contemporary (2010s) tax returns and census registries via surnames. We find that descendants from concertaje earn 16 percent less formal labor income vis-à-vis descendants from uncoerced indigenous workers. Because of the distortions created by the institution, descendants from concertaje are less educated, more likely to work in agriculture and the informal sector, and less prone to migrate. However, the effects of concertaje on immigrants are milder, suggesting migration acted as a mitigation channel.
https://docs.iza.org/dp18614.pdf
These new IZA Discussion Papers are now available online.
DP 18492 - Bloem/Ghorpade/Imtiaz:
Shaken, but Not Deterred: Acute Stressors and the Formation of Hope and Aspirations among Tertiary-Educated Youth in Myanmar in the Aftermath of the 2025 Earthquake
DP 18493 - Azam:
The Enclave Penalty: Tribes, Caste, and Electricity Reliability in India
DP 18551 - Bargain/Jara/Magejo/Ntuli:
Inclusive Growth in South Africa? Inequality Dynamics and the Role of Trade Openness vs Tax Policies
DP 18558 - Bonilla-Mejía/Muñoz-Morales/Zarate:
Complements or Substitutes? Labor Market Effects of Foreign Inputs in Developing Economies
DP 18582 - Ben Cheikh/Rault:
Financial Inclusion for Inclusive Growth
DP 18583 - Giuliano:
Sticky Traditions: Origin, Persistence, and Evolution of Cultural Norms
DP 18614 - Rivadeneira/Canavire Bacarreza:
Attached Once, Attached Forever: The Persistent Effects of Concertaje in Ecuador
Please find the abstracts and download links below.
IZA DP No. 18492
Jeffrey R. Bloem, Yashodhan Ghorpade, Muhammad Saad Imtiaz:
Shaken, but Not Deterred: Acute Stressors and the Formation of Hope and Aspirations among Tertiary-Educated Youth in Myanmar in the Aftermath of the 2025 Earthquake
Abstract:
Although hope and aspirations are increasingly considered to be both intrinsically and instrumentally valuable, quantitative evidence on the formation of these factors is limited. Using data from a sample of educated youth in Myanmar, this paper documents the relationship between various sources of chronic and acute stressors with measures of hope and aspirations. We find that hope and aspirations are tightly linked with chronic stressors (low relative income and labor market mismatch), but not to exposure to an acute stressor (a large and destructive earthquake). The results suggest that policies that aim to address sources of chronic stress (such as poverty and employment outcomes) may have underappreciated psychological benefits that complement standard economic benefits measured in the form of higher wages and employment outcomes. This further emphasizes the need to continue efforts toward development objectives that can mitigate the effects of chronic stressors, even wh en more acute shocks occur. Additionally, policy responses to emergency and disaster situations may be most effective if they focus on immediate material needs so that an acute stressor does not become a chronic stressor.
https://docs.iza.org/dp18492.pdf
IZA DP No. 18493
Mehtabul Azam:
The Enclave Penalty: Tribes, Caste, and Electricity Reliability in India
Abstract:
India has achieved near-universal electrification, yet large inequalities persist in the reliability of the electricity supply. Combining high-resolution satellite-based measures of electricity reliability—defined as the share of nights with detectable illumination—with village-level census data, this paper shows that reliability remains systematically unequal across social groups. While Scheduled Caste villages largely track district-level reliability, Scheduled Tribe (ST) villages face a pronounced enclave penalty. Homogeneous ST enclaves (ST population ?90%) exhibit 10.7 percentage points fewer illuminated nights than otherwise comparable villages within-district with low ST shares. We further identify a mobility trap: homogeneous ST enclaves are about 16.6 (16.0) percentage points more likely to remain energy poor in 2012 (2019) and 11.7 percentage points less likely to escape energy poverty between 2012 and 2019. These findings suggest that as access becomes universal, i nfrastructure exclusion increasingly operates through a less visible rationing of service quality in socially homogeneous tribal settlements.
https://docs.iza.org/dp18493.pdf
IZA DP No. 18551
Olivier B. Bargain, H. Xavier Jara, Prudence Magejo, Miracle Ntuli:
Inclusive Growth in South Africa? Inequality Dynamics and the Role of Trade Openness vs Tax Policies
Abstract:
Market forces, and notably the role of trade openness, contribute to shaping inequality in South Africa and may limit the inclusiveness of its growth path. Recently, policy reforms may have helped to mitigate these effects. To better understand these developments, we analyze trends in post-tax income inequality using matched employer-employee administrative data from 2012 to 2021 and an original decomposition based on counterfactual tax microsimulations. Our results show that the benefits of increased trade openness during this period has benefited top earners essentially, while other workers - particularly those in the middle class - were adversely affected. This inequality-enhancing impact was partially offset by the automatic stabilizing response of the personal income tax system and by reforms that increased its progressivity. Overall, the analysis highlights the critical role of fiscal policy in counteracting inequality arising from labor-market disparities linked to glo balization.
https://docs.iza.org/dp18551.pdf
IZA DP No. 18558
Leonardo Bonilla-Mejía, Juan S. Muñoz-Morales, Roman David Zarate:
Complements or Substitutes? Labor Market Effects of Foreign Inputs in Developing Economies
Abstract:
This paper examines how import liberalization affects labor markets when labor and intermediate inputs can act as complements or substitutes. We incorporate a CES production function into a dynamic quantitative trade model and show that the labor market effects of imports depend on the elasticity of substitution between labor and intermediate inputs, which varies across sectors. Exploiting exogenous tariff reductions in Colombia and applying a difference-in-differences strategy, we separate the reduced-form effects of trade into an input shock and a competition shock. Import competition reduces the wage bill across sectors, whereas cheaper intermediate inputs increase it. This increase is driven by the service sector, with imprecise effects in manufacturing and an opposite-sign effect in agriculture. Combining the model with the reduced-form parameters, we implement indirect inference to recover sector-specific elasticities of substitution and find that labor and intermediate s are substitutes in agriculture and manufacturing but complements in services. Allowing for a more flexible production structure meaningfully changes the labor market response to trade.
https://docs.iza.org/dp18558.pdf
IZA DP No. 18582
Nidhaleddine Ben Cheikh, Christophe Rault:
Financial Inclusion for Inclusive Growth
Abstract:
Using a sample of 67 countries, this paper examines how financial inclusion shapes the transition to inclusive and sustainable growth. First, we analyze the heterogeneous and asymmetric effects of key determinants using panel quantile regression. The results show that financial inclusion, institutional quality, and ICT diffusion significantly affect inclusiveness only in the lower tail of the distribution. While financial inclusion and ICT diffusion appear detrimental, institutional quality promotes shared prosperity. Second, we explore a mediating effect using a non-linear panel threshold model. The findings highlight the role of financial inclusion in enhancing inclusive growth. Although ICT infrastructure negatively affects inclusiveness at low levels of financial inclusion, this relationship becomes positive beyond a certain threshold. These results suggest that policymakers should combine financial inclusion, governance quality, and ICT development to foster inclusive gr owth.
https://docs.iza.org/dp18582.pdf
IZA DP No. 18583
Paola Giuliano:
Sticky Traditions: Origin, Persistence, and Evolution of Cultural Norms
Abstract:
This chapter reviews the growing literature on the origin, persistence and evolution of cultural norms. I begin by examining the deep historical forces that shape the formation of cultural norms, with particular attention to the role of geography, pre-industrial societal characteristics, political institutions, and historical shocks. I then analyze the mechanisms through which cultural norms persist and evolve, emphasizing the roles of vertical, horizontal, and oblique transmission. Next, I examine the complex interaction between culture and institutions, and discuss the conditions under which cultural norms change. Several conclusions emerge. Cultural norms tend to persist over remarkably long periods, though the speed of change varies significantly across traits. Understanding the origins and persistence of cultural norms has important implications for policy: policies that ignore local cultural context risk failure or unintended consequences, while well-designed interventi ons can successfully shift norms. Finally, I discuss the growing evidence on cultural mismatches - situations where norms that were adaptive in historical environments become maladaptive in new contexts - and outline directions for future research.
https://docs.iza.org/dp18583.pdf
IZA DP No. 18614
Alex Rivadeneira, Gustavo J. Canavire Bacarreza:
Attached Once, Attached Forever: The Persistent Effects of Concertaje in Ecuador
Abstract:
This paper studies the long-run intergenerational effects of concertaje, a widespread forced labor system in the Americas from the Spanish colonial era that coerced indigenous workers in rural estates (haciendas) after causing them to become indebted. We collected and digitized the universe of historical individual-level tax records (1800) in what is today Ecuador and connected them to likely descendants using the universe of contemporary (2010s) tax returns and census registries via surnames. We find that descendants from concertaje earn 16 percent less formal labor income vis-à-vis descendants from uncoerced indigenous workers. Because of the distortions created by the institution, descendants from concertaje are less educated, more likely to work in agriculture and the informal sector, and less prone to migrate. However, the effects of concertaje on immigrants are milder, suggesting migration acted as a mitigation channel.
https://docs.iza.org/dp18614.pdf
IZA DP Alerts | www.iza.org
If you have trouble downloading the papers, or for any other questions regarding the IZA Discussion Paper Series, please contact iza...@liser.lu.
IZA@LISER Network
Luxembourg Institute of Socio-Economic Research (LISER)
11, Porte des Sciences, L-4366 Esch-sur-Alzette / Belval
Privacy Policy | Manage your subscriptions
If you have trouble downloading the papers, or for any other questions regarding the IZA Discussion Paper Series, please contact iza...@liser.lu.
IZA@LISER Network
Luxembourg Institute of Socio-Economic Research (LISER)
11, Porte des Sciences, L-4366 Esch-sur-Alzette / Belval
Privacy Policy | Manage your subscriptions
IZA DP Alerts
May 18, 2026, 9:10:58 AMMay 18
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