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Evaluating the employment-generating impact of rural roads in Nicaragua


  • John Rand


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

    1. Joseph E. Aldy & W. Kip Viscusi, 2008. "Adjusting the Value of a Statistical Life for Age and Cohort Effects," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 573-581, August.
    2. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
    3. Viscusi, W Kip & Aldy, Joseph E, 2003. "The Value of a Statistical Life: A Critical Review of Market Estimates throughout the World," Journal of Risk and Uncertainty, Springer, vol. 27(1), pages 5-76, August.
    4. Guido W. Imbens, 2004. "Nonparametric Estimation of Average Treatment Effects Under Exogeneity: A Review," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 4-29, February.
    5. repec:reg:rpubli:282 is not listed on IDEAS
    6. Datt, Gaurav, 1998. "Computational tools for poverty measurement and analysis," FCND discussion papers 50, International Food Policy Research Institute (IFPRI).
    7. Laura B. Rawlings & Lynne Sherburne-Benz & Julie van Domelen, 2004. "Evaluating Social Funds : A Cross-Country Analysis of Community Investments," World Bank Publications, The World Bank, number 15057.
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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. repec:gam:jsusta:v:8:y:2016:i:4:p:363:d:68149 is not listed on IDEAS

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    impact; employment; Nicaragua;


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