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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. 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.
    2. Benevenuto, Rodolfo & Caulfield, Brian, 2022. "Examining the socioeconomic outcomes of transport interventions in the Global South," Transport Policy, Elsevier, vol. 119(C), pages 56-66.
    3. Sandrine Mesplé-Somps & Laure Pasquier-Doumer & Charlotte Guénard, 2016. "Do slum upgrading programmes improve living standards? Evidence from Djibouti," Working Papers DT/2016/09, DIAL (Développement, Institutions et Mondialisation).
    4. Sandrine Mesplé-Somps & Laure Pasquier-Doumer & Charlotte Guénard, 2021. "Do Slum Upgrading Programmes Improve Employment? Evidence from Djibouti," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(6), pages 1555-1573, December.
    5. Suchi Kapoor Malhotra & Howard White & Nina Ashley O. Dela Cruz & Ashrita Saran & John Eyers & Denny John & Ella Beveridge & Nina Blöndal, 2021. "Studies of the effectiveness of transport sector interventions in low‐ and middle‐income countries: An evidence and gap map," Campbell Systematic Reviews, John Wiley & Sons, vol. 17(4), December.
    6. 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, vol. 8(4), pages 1-20, April.
    7. World Bank, 2021. "Investing in Mozambique's Connectivity," World Bank Publications - Reports 39868, The World Bank Group.
    8. Chakrabarti, Sandip, 2025. "Rural roads and economic development: Insights from India," Transport Policy, Elsevier, vol. 168(C), pages 305-318.

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