Papers by Marcel Fafchamps
This note contains information about job search for DPhil graduates. The first -and longest --par... more This note contains information about job search for DPhil graduates. The first -and longest --part is devoted to the American job market, a large organized clearing house that meets once a year. The second part covers the European market. The emphasis is on academic and research jobs, although useful information is also provided on nonresearch jobs in the internet section. A list of Oxford resources appears at the end, as well as references to journal articles on the job market for economists and the ranking of various departments.
In this paper we provide a ranking of European economics institutions and countries based on publ... more In this paper we provide a ranking of European economics institutions and countries based on publications in a core set of 10 economic journals from 1991 to 1996. We find that the three leading universities in Europe are the London School of Economics, Tel-Aviv University and Oxford University while the three top-ranked countries are the U.K., France and Israel.
Four rankings of economics departments worldwide in terms of graduate education are constructed. ... more Four rankings of economics departments worldwide in terms of graduate education are constructed. The central methodological idea is that the value of a department is the sum of the values of its PhD graduates, as reflected in the values of their current employing departments. Scores are derived as solutions to linear simultaneous equations in the values. The sample includes the top fifty-eight departments, the composition of which is determined endogenously, invoking a criterion requiring more than three placements in the sample. Illuminating the current state and trends of economics PhD education, the conclusions should be of broad interest to PhD candidates, academics and policy makers. JEL classification codes: A14, L11, R32.
We begin our study of international trade with a model that has two goods and two factors (labor ... more We begin our study of international trade with a model that has two goods and two factors (labor and capital). We shall suppose that the two goods are traded on international markets, but do not allow for any movements of factors across borders. This reflects the fact that
We begin this chapter by describing the Hecksher-Ohlin model with two countries, two goods, and t... more We begin this chapter by describing the Hecksher-Ohlin model with two countries, two goods, and two factors (or the 2x2x2 model). This formulation is often called the Heckscher-Ohlin-Samuelson (HOS) model, based on the work of Paul Samuelson who took the original insights of Eli Heckscher and his student Bertil Ohlin (1933), and formed them into a mathematical model. 1 The goal of that model is to predict the pattern of trade in goods between the two countries, based on their differences in factor endowments. Following this, we present the multi-good, multi-factor extension that is associated with the work of Vanek (1968), and is often called the Heckscher-Ohlin-Vanek (HOV) model. As we shall see, in that formulation we do not attempt to keep track of the trade pattern in individual goods, but instead, compute the "factor content" of trade, i.e. the amounts of labor, capital, land, etc. embodied in the exports and imports of a country.
The Hecksher-Ohlin Vanek model we have studied in the previous chapter allows for many goods and ... more The Hecksher-Ohlin Vanek model we have studied in the previous chapter allows for many goods and factors, but for much of that discussion we maintained the assumption of factor prices equalization. This theorem was proved in chapter 1 only for the case of two goods and two factors (and no factor intensity reversals). This raises the question: when there are many goods and factors, will factor price equalization continue to hold? More generally, what happens to the other theorems we discussed in chapter 1 -the Stolper-Samuelson and Rybczynski theorems? Is there some generalization of these to the many good and many factor case? These are the questions we address in this chapter.
Using original survey data collected at the county (commune) level, we examine the relationship b... more Using original survey data collected at the county (commune) level, we examine the relationship between insecurity and welfare. Correcting for unobserved heterogeneity at the commune level, we …nd that insecurity is associated with lower incomes and health status in all our analysis, and it associated with lower school enrollment and higher infant mortality in regressions. Results are robust to the inclusion of shocks potentially a¤ecting both welfare and insecurity. We further …nd a signi…cant association between insecurity and the provision of certain public services, notably schooling and health care. A similar relationship is found with the placement of development projects. Taken together, the evidence suggest that insecurity is an important determinant of welfare in the country studied.
This paper tests whether manufacturing exporters pay more to educated workers in an e¤ort to asce... more This paper tests whether manufacturing exporters pay more to educated workers in an e¤ort to ascertain whether the productivity of human capital is raised by exports. Using a panel of matched employer-employee data from Morocco, we …nd no evidence that the education wage premium is higher in exporting sectors and …rms. Although exporters pay more on average, much of the wage di¤erential can be explained by the fact that exporters have a larger workforce and more capital. Educated workers who start working for an exporter do not experience a larger wage increase relative to their previous job. We …nd a mild positive association between exports, technology, and product quality, part of which is due di¤erences in …rm size. We discuss why our results di¤er from those obtained using di¤erent countries and methodologies.
The recent literature has shown that subjective welfare depends on relative income. Much of the e... more The recent literature has shown that subjective welfare depends on relative income. Much of the existing evidence comes from developed economies. What remains unclear is whether this is a universal human trait or an artifact of a prosperous, marketoriented lifestyle. Using data from Nepal, a mountainous country where many households still live in relative isolation, we test whether poorer and more isolated households care less about relative consumption. We find that they do not. We investigate possible reasons for this. We reject that it is due to parental concerns regarding the marriage prospects of their children. But we find evidence in support of the reference point hypothesis put forth by psychologists: household heads having migrated out of their birth district still judge the adequacy of their consumption in comparison with households in their district of origin.
Using original survey data collected on growers, traders, processors, markets, and village commun... more Using original survey data collected on growers, traders, processors, markets, and village communities, we will compare the situation in four states -Tamil Nadu, Uttar Pradesh, Maharashtra and Orissa. We examine the way that information about crop attributes is conveyed (or not) along the value chain. We also document the infrastructures available at the level of the market. We …nd that little information circulates about unobservable crop characteristics. Growers receive a price premium when they dry, grade and pack their produce, but we …nd no evidence that information about crop salubrity or agricultural practices circulates through the value chain or that growers are encouraged to follow speci…c agricultural practices for quality purposes. Market infrastructure is de…cient regarding sanitation, with few public toilets, inadequate drainage, and no coordinated pest control.
Using detailed data from three simultaneous surveys of producers, traders, and exporters, this pa... more Using detailed data from three simultaneous surveys of producers, traders, and exporters, this paper examines the transmission of international co¤ee prices through the domestic value chain in Uganda. We …nd that producer prices ‡uctuations are inconsistent with constant transactions costs. We investigate three possible explanations for this …nding: storage and contango; marketing costs that increase with price, and trader entry that raises search time.
This paper tests two alternative models of selection into export: lower costs and better market f... more This paper tests two alternative models of selection into export: lower costs and better market familiarity. Both are potentially subject to learning-by-doing, but di¤er in the type of experience required. Learning to produce at lower cost -what we call productivity learning -depends on general experience, while learning to design products that appeal to foreign consumers -market learningdepends on export experience. Using panel and cross-section data on Moroccan manufacturers, we uncover evidence of market learning but little evidence that productivity learning is what enables …rms to export. These …ndings are consistent with the concentration of Moroccan manufacturing exports in consumer items, i.e., the garment, textile, and leather sectors. It is the young …rms that export. Most do so immediately after creation. We also …nd that, among exporters, new products are exported very rapidly after production has begun. The share of exported output nevertheless increases for 2-3 years after a new product is introduced, which is indicative of some learning. Old …rms are unlikely to switch to exports, even in response to changes in macro incentives.
Based on original trader surveys, this paper examines how agricultural traders operate in Benin a... more Based on original trader surveys, this paper examines how agricultural traders operate in Benin and Malawi. Results indicate that the largest transactions costs are search and transport. The use modern technology is limited. Search methods rely principally on personal visits by the trader. Quality control requires the presence of the trader at the time of purchase. This raises costs as the trader has to travel a lot, and makes it di¢ cult for trading enterprises to grow. Since enterprises remain very small, personal transport and search time represents a non-negligible share of marketing costs. market segmentation, it does not explain why markets are poorly integrated or what constraints economic agents face. An enduring puzzle in the market literature in sub-Saharan Africa is that, despite liberalization and reforms, agricultural markets have remained relatively unsophisticated and marketing margins have remained high (e.g. Beynon, Jones and Yao 1992, Jayne and Jones 1997).
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Papers by Marcel Fafchamps