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Evaluating the employment-generating impact of rural roads in Nicaragua

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  • John Rand

Abstract

This paper analyses the employment-generating impact of a tertiary road project in Nicaragua, applying a matched double-difference approach to control for initial conditions and time variant factors that simultaneously influence the placement of roads and subsequent employment growth rates. Results are promising. The author's estimates indicate an increase in hours worked per week attributable to the intervention of around 9.5-12.3 hours. Moreover, he observes tendencies of a graduation process taking place in the labour market: individuals moving out of unemployment predominately achieve employment in the agricultural sector (self-employment), whereas newly created service sector jobs primarily are taken by workers previously working in agriculture. Finally, the analysis suggests that the employment-generating effect comes through a combination of reduced travel time and better access to markets and larger, more integrated road networks.

Suggested Citation

  • John Rand, 2011. "Evaluating the employment-generating impact of rural roads in Nicaragua," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 3(1), pages 28-43.
  • Handle: RePEc:taf:jdevef:v:3:y:2011:i:1:p:28-43
    DOI: 10.1080/19439342.2010.545890
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    References listed on IDEAS

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    1. Gómez, L. & Martínez, B. & Modrego, F. & Ravnborg, H., 2008. "Mapeo de Cambios en Municipios de Nicaragua: Consumo de los Hogares, Pobreza y Equidad 1995 - 2005," Working papers 012, Rimisp Latin American Center for Rural Development.
    2. Alberto Abadie & Guido W. Imbens, 2002. "Simple and Bias-Corrected Matching Estimators for Average Treatment Effects," NBER Technical Working Papers 0283, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Lindy Charlery & Martin R. Nielsen & Henrik Meilby & Carsten Smith-Hall, 2016. "Effects of New Roads on Environmental Resource Use in the Central Himalaya," Sustainability, MDPI, Open Access Journal, vol. 8(4), pages 1-20, April.
    2. Henrik Hansen & Ole Winckler Andersen & Howard White, 2011. "Impact evaluation of infrastructure interventions," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 3(1), pages 1-8.
    3. repec:gam:jsusta:v:8:y:2016:i:4:p:363:d:68149 is not listed on IDEAS

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    Keywords

    impact; employment; Nicaragua;

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