[insert title here] [Author] [Date] ieConnect Impact Evaluation Workshop Rio de Janeiro, Brazil June 22-25, 2015 Roads, Jobs, and Labor Mobility in Brazil.

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[insert title here] [Author] [Date] ieConnect Impact Evaluation Workshop Rio de Janeiro, Brazil June 22-25, 2015 Roads, Jobs, and Labor Mobility in Brazil Melanie Morten (Stanford University) 22 June 2015

Brazil: wages differ across regions Young (2014): inequality within a country 45% explained by rural-urban wage gaps Only 17% by education

Do roads help people reach good jobs? Use the natural experiment of Brasilia Solves an important problem Do roads get built because there is a lot of demand? Or, do roads cause demand? Here: roads built to connect Brasilia with state capitals The places along the way get roads “by accident” We then look to see if migration patterns depend on access to roads

Brazil: Rodovias radiais (radial highways)

Heat map: bilateral travel times

Results: roads are important for migration Baseline migration rates: 7% Reducing the road cost by half causes: Migration increases by 20% Welfare increases by 4% Dispersion of welfare reduces by 3.5% Full paper: trade and housing markets Take home: roads help people move to where they are better off Same issues important many other places: Figures: Tanzania, Kenya, Malawi, Indonesia

Tanzania

Kenya

Malawi

Indonesia

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