Spatial spillover effects from agriculture drive deforestation in Mato Grosso, Brazil

Deforestation of the Amazon rainforest is a threat to global climate, biodiversity, and many other ecosystem services. In order to address this threat, an understanding of the drivers of deforestation processes is required. Spillover effects and factors that differ across locations and over time play important roles in these processes. They are largely disregarded in applied research and thus in the design of evidence-based policies. In this study, we model connectivity between regions and consider heterogeneous effects to gain more accurate quantitative insights into the inherent complexity of deforestation. We investigate the impacts of agriculture in Mato Grosso, Brazil, for the period 2006-2017 considering spatial spillovers and varying impacts over time and space. Spillovers between municipalities that emanate from croplands in the Amazon appear as the major driver of deforestation, with no direct effects from agriculture in recent years. This suggests a moderate success of the Soy Moratorium and Cattle Agreements, but highlights their inability to address indirect effects. We find that the neglect of the spatial dimension and the assumption of homogeneous impacts lead to distorted inference. Researchers need to be aware of the complex and dynamic processes behind deforestation, in order to facilitate effective policy design.

Is the demographic dividend an education dividend?

The effect of changes in age structure on economic growth has been widely studied in the demography and population economics literature. The beneficial effect of changes in age structure after a decrease in fertility has become known as the "demographic dividend." In this article, we reassess the empirical evidence on the associations among economic growth, changes in age structure, labor force participation, and educational attainment. Using a global panel of countries, we find that after the effect of human capital dynamics is controlled for, no evidence exists that changes in age structure affect labor productivity. Our results imply that improvements in educational attainment are the key to explaining productivity and income growth and that a substantial portion of the demographic dividend is an education dividend.

Ageing, productivity and wages in Austria

Current demographic developments in industrialized countries and their consequences for workforce ageing challenge the sustainability of intergenerational transfers and economic growth. A shrinking share of the young workforce will have to support a growing share of elderly, non-working people. Therefore, the productivity of the workforce is central to a sustainable economic future. Using a new matched employer-employee panel dataset for Austrian firms for the period 2002-2005, we study the relationship between the age structure of employees, labour productivity and wages. These data allow us to account, simultaneously, for both socio-demographic characteristics of employees and firm heterogeneity, in order to explain labour productivity and earnings. Our results indicate that firm productivity is not negatively related to the share of older employees it employs. We also find no evidence for overpayment of older employees. Our results do not show any association between wages and the share of older employees. Furthermore, we find a negative relationship between the share of young employees and labour productivity as well as wages, which is more prevalent in the industry and construction sector.

Demography, Education, and Democracy: global trends and the case of Iran

Reconstructions and projections of populations by age, sex, and educational attainment for 120 countries since 1970 are used to assess the global relationship between improvements in human capital and democracy. Democracy is measured by the Freedom House indicator of political rights. Similar to an earlier study on the effects of improving educational attainment on economic growth, the greater age detail of this new dataset resolves earlier ambiguities about the effect of improving education as assessed using a global set of national time series. The results show consistently strong effects of improving overall levels of educational attainment, of a narrowing gender gap in education, and of fertility declines and the subsequent changes in age structure on improvements in the democracy indicator. This global relationship is then applied to the Islamic Republic of Iran. Over the past two decades Iran has experienced the world's most rapid fertility decline associated with massive increases in female education. The results show that based on the experience of 120 countries since 1970, Iran has a high chance of significant movement toward more democracy over the following two decades.