Are the labor market changes from exports specific to exporting industries, or do they dissipate throughout the economy? To analyze this question, we study the case of Vietnam. Vietnam exported a total of $356B, making it the number 18 exporter in the world in 2021. Recent studies show provinces in Vietnam with greater exposure to tariff reductions observe greater rates of poverty decline and gains in wages and employment. We extend this literature by estimating the impact of exports propagated through domestic production linkages in Vietnam between 2010 and 2019. We find that higher export exposure leads to higher employment rate, lower inactivity, and an increase in female participation in the labor force. Furthermore, the empirical results also show that export increases wages and income as well as closes the gender wage gap and the college degree premium. Most of these results are larger in magnitude and different in direction of impact when accounting for input-output production structure of the economy underscoring the contributions of non-traded industries to export markets
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Sep 13, 20231 min read
This study explores the link between air pollution and individuals' risk preferences and decision behaviors, utilizing NASA satellite data on global air pollution and the Indonesia Family Life Survey. We investigate how air pollution affects risk aversion and risky behaviors, including financial choices, employment sector selection, and life-changing decisions. Additionally, we differentiate between visible and invisible pollution exposure using volcanic and wildfire activities as instrumental variables. The preliminary result shows that higher Mass Concentration and Aerosol Optical Thickness (a major index that indicates level of pollution) of Dust and PM2.5 measured on the interview day leads to revelation of higher Low-Stake Risk Aversion by respondents.
Sep 13, 20231 min read
Dams and hydropower have long been praised by economists as a game-changing boost for development and a valuable source of renewable and clean energy. However, very few studies have looked at the dark side of the vast environmental impact of dams on the river and coastal system. This paper investigates the trans-border impact of dam construction in the upstream countries on freshwater level in the downstream, which in turn has a spatially and seasonally heterogeneous effect on salinity intrusion as well as agriculture productivity in the delta area. To tackle this question, the study exploits a historical record of construction of dams on Mekong River in East Asia, combined with statistics from Vietnamese government on agriculture productivity. Satellite data has also been employed as a proxy for salinity index and vegetation coverage for a distributional effect analysis. The result suggests that dams' reservoir capacity significantly decreases the level of freshwater discharge to the downstream, lowers rice yield and intensifies saltwater intrusion in the delta.
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