Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/284307 
Year of Publication: 
2023
Series/Report no.: 
Working Paper No. 957
Publisher: 
Queen Mary University of London, School of Economics and Finance, London
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 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 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.
Subjects: 
Public works contract
Experiment
Municipal investment
Spatial equilibrium model
Ethiopia
JEL: 
I38
J61
O18
R23
Document Type: 
Working Paper

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