Urban Public Works in Spatial Equilibrium: Experimental Evidence from Ethiopia

Simon Franklin, Clément Imbert, Girum Abebe and Carolina Mejia-Mantilla

American Economic Review, 2024, vol. 114, issue 5, 1382-1414

Abstract: This paper evaluates a large urban public works program randomly rolled out across neighborhoods of Addis Ababa, Ethiopia. We find 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 rollout, wages increased by 18.6 percent. 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.

JEL-codes: H76 I38 J22 J31 O15 O18 R23 (search for similar items in EconPapers)
Date: 2024
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Related works:
Working Paper: Urban Public Works in Spatial Equilibrium: Experimental Evidence from Ethiopia (2023)
Working Paper: Urban Public Works in Spatial Equilibrium: Experimental Evidence from Ethiopia (2021)
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DOI: 10.1257/aer.20220471

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