Urban Public Works in Spatial Equilibrium: Experimental Evidence from Ethiopia

Simon Franklin, Clement Imbert, Girum Abebe and Carolina Mejia-Mantilla
Additional contact information
Clement Imbert: University of Warwick, BREAD, CEPR, EUDN and JPAL
Carolina Mejia-Mantilla: World Bank

No 957, Working Papers from Queen Mary University of London, School of Economics and Finance

Abstract: This paper evaluates a large urban public works program randomly rolled out across neighborhoods of Addis Ababa, Ethiopia. We find that the program increased public employment and reduced private labor sup-ply 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 roll-out, wages increased by 18.6%. 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.

JEL-codes: I38 J61 O18 R23 (search for similar items in EconPapers)
Date: 2023-06-30
New Economics Papers: this item is included in nep-ure
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Related works:
Journal Article: Urban Public Works in Spatial Equilibrium: Experimental Evidence from Ethiopia (2024)
Working Paper: Urban Public Works in Spatial Equilibrium: Experimental Evidence from Ethiopia (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:qmw:qmwecw:957

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