One cannot study poverty in Tanzania without understanding the agricultural sector, which employs more than two-thirds of the population and accounts for nearly a quarter of national GDP. This thesis examines three themes that focus on the difficulties that rural Tanzanians face in achieving a reasonable livelihood: the adverse legacy of a failed historical policy, a difficult climate, and market failures. The first empirical chapter examines the legacy of the villagization program that attempted to transform the predominantly agricultural and rural Tanzania. Between 1971 and 1973, the majority of rural residents were moved to villages planned by the government. This essay examines if the programs e↵ects are persistent and have had a long-run legacy. It analyzes the impact of exposure to the program on various outcome measures from recent household surveys. The primary finding of this study is that households living in districts heavily exposed to the program have worse measures of various current outcomes. The second empirical chapter examines the role of reliability of rainfall, which is important in Tanzania as agriculture is predominantly rain-fed and a small fraction of plots are irrigated. This chapter investigates if households cope with this major risk to income by re-allocating their labor supply between agriculture, wage labor, and self-employment activities. This chapter combines data on labor allocation of households within and outside of agriculture from the National Panel Survey with high-resolution satellite-based rainfall data not previously used in this literature. The primary finding of this study is that households allocate more family labor to agriculture in years of good rainfall and more labor to self-employment activities in years of poor rainfall. Market failures are often cited as a rationale for policy recommendations and government interventions. The third chapter implements four tests of market failures suggested in the literature, all of which rely on the agricultural household model but di↵er in how market failures are manifested. The common finding of these tests is that market failures exist in agricultural factor markets in Tanzania, although significant heterogeneity exists. Markets are more likely to fail in rural areas, remote locations, and are more likely to affect female-headed households. Households are also more likely to face market failure when they try to supply labor to the market than when they try to hire labor from the market.

This research sets out to explore the interface between the new politics of localisation and the political process in India. Governments and donors have increasingly emphasised the locality as the primary unit of development and politics. This new trajectory has been manifest in the increase of community-based organisations and mechanisms of participatory governance at the local level. From the late 1990s, the south Indian state of Andhra Pradesh emerged as one of the most important examples of this new developmental politics and this research sets out to explore how local dynamics changed as a result. Political economy approaches tend to focus on state-periphery relations in terms of interest groups or vote banks. By contrast, this research found the village to be an enduring unit in the political system through which political identity manifests itself through three features. First, participation in local elections is driven by common forces of politics of parties, caste and corruption but its outcome is dependent on the specific context at the village level. Second, new participatory institutions created through state policy were found to merge with informal practices at the local level and produce a complex interplay between the new local and state identities. Third, analysis of leadership found evidence of a well-defined system of organisation within party groups at the village level, which were shaped not by party institutions but by the inner workings of village politics. These findings give cause to reassess the way in which we understand policy and political change. I do so by expanding on Skocpol's polity approach, which focused attention on the dynamic interplay of policy and social structure. Drawing on elements of the 'political development' theory, the concept of a ‘developing polity' approach is elaborated on, to better explain the complex interplay between local and higher level politics. These findings have implications for understanding both political change in India and development strategy. The macro-perspective on the decay of political institutions is contrasted with a local perspective that finds evidence of the vitality of party politics at the village level. This has a number of important implications for development, both in terms of the way in which we analyse participation and the way in which participatory development can be translated into political change

This thesis is composed of three empirical essays that analyse different development and labour economics issues about Mexico and its emigrant population residing in the United States. The first essay examines the role of occupational segregation in explaining the low wages among first, second and third generation Mexican immigrants in the United States. Mexican-Americans earn lower wages than blacks mainly because they possess less human capital. With respect to whites, their lower wages are also a product of their smaller rewards for skills and underrepresentation at the top of the occupational structure. Occupational segregation constitutes an important part of the wage gap between natives and Mexican-born immigrants. For subsequent generations, the contribution of occupational segregation to the wage gap varies significantly between groups and according to the decomposition used. The second essay examines whether Seguro Popular, a free-of-charge publicly provided health insurance program for otherwise uninsured households, crowded-out private transfers in Mexico. Using data from the National Household Income and Expenditure Survey, the effects of Seguro Popular are identified using the spatial variation in the program's coverage induced by its sequential roll-out throughout Mexico. The results show that Seguro Popular reduced on average a household's probability of receiving private transfers by 5.55 percentage points. This finding appears to be driven by domestic private transfers, since the program's effects are only statistically significant for private transfers originating within Mexico. In addition, Seguro Popular had a weak and not statistically significant negative effect on the amount of private transfers received. Failure to take into account possible changes in private behaviour induced by Seguro Popular may overstate the program's potential benefits or distributional impacts. Finally, the third essay studies the effect of students' exposure to violent crimes on educational outcomes. Driven by drug-trade related crimes, homicide levels in Mexico have dramatically increased since 2007. Using school level data, a panel of Mexico's primary and secondary schools from 2006 to 2012 is constructed to analyse the effect of exposure to homicides on standardised test scores and grade failure rates. The results show that a one-unit increase in the number of homicides per 10,000 inhabitants reduces average test scores between 0.0035 and 0.0142 standard deviations. This effect is larger in secondary schools, stronger if the homicide occurs closer to the examination date, and is stable when using either total homicides or drug-trade related homicides to measure crime. Higher homicides rates are also associated with an increase in the grade failure rate. Early exposure to homicides has potential long-term consequences since it may affect educational attainment levels and future income streams.

Este texto faz uma re-leitura do modelo dual proposto por Lewis em 1954 (1) adicionando considerações sobre a competição entre firmas, o progresso tecnológico e sobre alguns outros elementos do comportamento mercado de trabalho (mobilidade, qualificação e dinâmica salarial). O texto tem como objetivo é propor elementos à serem incorporados a dinâmica original, de forma a tentar entender se, em uma dinâmica de desenvolvimento como esta, existe possibilidade de que excessos de oferta de mão-de-obra persistam, resistindo a acumulação de capital. / This dissertation reviews the dual economy model presented by Lewis in 1954 (1), adding to the discussion aspects about the competitive dynamics between firms, technological progress, and other elements of the labor market (labor mobility, qualification and wage dynamics). Its goal is to propose new elements that could, once incorporated into the original model, explain the possibility of a persistent labor surplus (a surplus that would be resistant to the accumulation process).

La reducción pobreza es un tópico importante en la agenda de país que tiene Perú, sin embargo, para 2017 la pobreza aumento un punto porcentual. Del mismo modo, el gasto en programas sociales ha ido en aumento, pero la variación porcentual en el número de hogares pobres ha ido reduciéndose. Esto podría significar que el efecto positivo que estos deberían tener , como lo propone Sachs (2005), está siendo mitigado o eliminado por otro proceso subyacente que no está siendo observado. Este proceso subyacente podría ser síntoma de trampa de la pobreza, para determinar la veracidad de esta afirmación se utilizará como base el trabajo de Carter y Barret (2006), adaptándolo para la base datos de la ENAHO panel. Dicha metodología propone el uso de un índice que mida el nivel de activos de un hogar, y mediante la observación de la dinámica de la función resultante se puede determinar la existencia de una trampa de pobreza a nivel de activos. Los resultados de las estimaciones muestran que no existe una trampa de pobreza, pero la sensibilidad de los datos con respecto a la especificación índice de activos hace que sea necesario una extensión del trabajo con métodos econométricos más recientes. / Poverty reduction is an important topic in Peru's country agenda, however, by 2017 poverty increased by one percentage point. Similarly, spending on social programs has been increasing, but the percentage variation in the number of poor households has been decreasing. This could mean that the positive effect that these should have, as proposed by Sachs (2005), is being mitigated or eliminated by another underlying process that is not being observed. This underlying process could be a symptom of the poverty trap, to determine the veracity of this statement, the work of Carter and Barret (2006) will be used as a basis, adapting it to the database of the ENAHO panel. This methodology proposes the use of an index that measures the level of assets of a household, and by observing the dynamics of the resulting function, the existence of a poverty trap at the asset level can be determined. The results of the estimates show that there is no poverty trap, but the sensitivity of the data with respect to the asset index specification makes an extension of work with more recent econometric methods necessary. / Trabajo de investigación

<p>Monetary funding to developing countries is today accompanied by so called “Structural Adjustment Programs” (SAPs) imposed by the IMF and the World Bank, consisting of economical policy reforms that the countries have to undergo in order to be eligible for loans. The impact of these adjustment loans is widely criticized due to the negative effects observed. Our purpose is to investigate in depth why these adjustment programs have not delivered the expected results. We’ve found that there exist some undesirable consequences following SAP implementation that has a hindering effect on growth. These, combined with the complicate context in which the IMF and World Bank operates can be seen as the explanation for the adversity experienced.</p>

This thesis consists of a summary and four self-contained papers. Paper [I] examines whether the implementation of a social safety net programme in Ethiopia has affected the value, risk and composition of farmers‟ crop portfolios. The empirical analysis suggests that the value and risk of the crop portfolio have not been altered due to the programme. However, the programme seems to have brought about some changes in the land allocated to different crops. Paper [II] studies how a social safety net affects farmers‟ (dis)investments in productive assets. More specifically, it studies how the Productive Safety Net Programme in Ethiopia has changed livestock and tree holdings. The results indicate no significant effect on livestock holdings, but a significant increase in tree holdings. Paper [III] investigates if there is a problem of adverse selection in formal microlending in rural Bangladesh. The results indicate that farmers who only borrow formally have a shadow price of capital that is substantially higher than the average informal interest rate. This suggests that farmers that only borrow formally are perceived as poor credit risks by informal lenders. Paper [IV] explores the economic incentives surrounding the cultivation of opium poppy in Afghanistan. Specifically, it examines the impact of eradication policies when opium is used as a means of obtaining credit, and when the crops are produced in sharecropping arrangements. The results indicate that both these features are likely to affect the outcome of eradication policies.

Monetary funding to developing countries is today accompanied by so called “Structural Adjustment Programs” (SAPs) imposed by the IMF and the World Bank, consisting of economical policy reforms that the countries have to undergo in order to be eligible for loans. The impact of these adjustment loans is widely criticized due to the negative effects observed. Our purpose is to investigate in depth why these adjustment programs have not delivered the expected results. We’ve found that there exist some undesirable consequences following SAP implementation that has a hindering effect on growth. These, combined with the complicate context in which the IMF and World Bank operates can be seen as the explanation for the adversity experienced.

This thesis consists of three empirical chapters that examine issues in development economics. Chapter 1 focuses on the effects of civil wars on the welfare of individuals. I use a unique data set that contains information on war casualties of the 1992-1995 Bosnian War, and exploit the variation in war intensity and birth cohorts of children, to identify the effects of the war on schooling attainment. I find that cohorts affected by war are less likely to complete secondary schooling, if they resided in municipalities that endured higher levels of war intensity. Ancillary evidence suggests that my estimates are most likely picking up immediate, rather than long-term effects. Furthermore, direct mechanisms such as the destruction of infrastructure and the out-migration of teachers do not seem to matter; instead, the ancillary evidence suggests that youth soldiering may be more important. Chapter 2 studies the impact of the partition which ended the Bosnian War on the post-war provision of public goods at the municipality-level. Comparing trends in the provision of public schooling across partitioned and unpartitioned municipalities during the 1986-2006 period, I find that partitioned municipalities provide 58 percent more primary schools and 37 percent more teachers (per capita). I also find evidence which suggests that convergent preferences - operating via ethnic politics - for ethnically oriented schools may be an important driver of the results, although I cannot rule out the possibility of mechanical explanations. In addition, as the increase in public goods provision may be ethnically oriented, only the ethnic majority profits from this arrangement. Chapter 3 provides an estimation of network effects among rural-urban migrants from Nang Rong, Thailand, by using heterogeneous migration responses to regional rainfall shocks among villagers as exogenous variation affecting network size. I find that social networks significantly reduce the duration of job search, and surprisingly, draw new migrants into the agricultural sector. I argue that this is not because agricultural jobs are more attractive than non-agricultural ones, but rather that my estimates are essentially local average treatment effects that are estimated off agricultural workers who are most affected by rainfall shocks.

This thesis consists of three empirical chapters that examine issues in development economics. Chapter 1 focuses on the effects of civil wars on the welfare of individuals. I use a unique data set that contains information on war casualties of the 1992-1995 Bosnian War, and exploit the variation in war intensity and birth cohorts of children, to identify the effects of the war on schooling attainment. I find that cohorts affected by war are less likely to complete secondary schooling, if they resided in municipalities that endured higher levels of war intensity. Ancillary evidence suggests that my estimates are most likely picking up immediate, rather than long-term effects. Furthermore, direct mechanisms such as the destruction of infrastructure and the out-migration of teachers do not seem to matter; instead, the ancillary evidence suggests that youth soldiering may be more important. Chapter 2 studies the impact of the partition which ended the Bosnian War on the post-war provision of public goods at the municipality-level. Comparing trends in the provision of public schooling across partitioned and unpartitioned municipalities during the 1986-2006 period, I find that partitioned municipalities provide 58 percent more primary schools and 37 percent more teachers (per capita). I also find evidence which suggests that convergent preferences - operating via ethnic politics - for ethnically oriented schools may be an important driver of the results, although I cannot rule out the possibility of mechanical explanations. In addition, as the increase in public goods provision may be ethnically oriented, only the ethnic majority profits from this arrangement. Chapter 3 provides an estimation of network effects among rural-urban migrants from Nang Rong, Thailand, by using heterogeneous migration responses to regional rainfall shocks among villagers as exogenous variation affecting network size. I find that social networks significantly reduce the duration of job search, and surprisingly, draw new migrants into the agricultural sector. I argue that this is not because agricultural jobs are more attractive than non-agricultural ones, but rather that my estimates are essentially local average treatment effects that are estimated off agricultural workers who are most affected by rainfall shocks.