Simon Franklin , Queen Mary University London Clement Imbert , University of Warwick, BREAD, CEPR, EUDN and JPAL Girum Abebe , World Bank Carolina Mejia-Mantilla , World Bank
June 30, 2023
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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.
J.E.L classification codes: I38, J61, O18, R23
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