Urban Public Works in Spatial Equilibrium: Experimental Evidence from Ethiopia

S-Tier
Journal: American Economic Review
Year: 2024
Volume: 114
Issue: 5
Pages: 1382-1414

Authors (4)

Simon Franklin (not in RePEc) Clément Imbert (Sciences Po) Girum Abebe (World Bank Group) Carolina Mejia-Mantilla (not in RePEc)

Score contribution per author:

2.011 = (α=2.01 / 4 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper evaluates a large urban public works program randomly rolled out across neighborhoods of Addis Ababa, Ethiopia. We find the program increased public employment and reduced private labor supply among beneficiaries and improved local amenities in treated locations. We then combine a spatial equilibrium model and unique commuting data to estimate the spillover effects of the program on private sector wages across neighborhoods: under full program rollout, wages increased by 18.6 percent. Using our model, we show that welfare gains to the poor are six times larger when we include the indirect effects on private wages and local amenities.

Technical Details

RePEc Handle
repec:aea:aecrev:v:114:y:2024:i:5:p:1382-1414
Journal Field
General
Author Count
4
Added to Database
2026-01-24