Labor Seminars Amsterdam

Speaker(s)
Björn Hinnerich (Stockholm University, Sweden)
Date
Tuesday, 9 December 2014
Location
Amsterdam

In this paper, we analyze how to different forms of democracies-direct versus representative-shape development outcomes such as industrialization, health and labor market outcomes. We use a regression-discontinuity design since a population threshold partly determined a local governments choice of democracy. Representative democracy seems to a larger extent undergo a restructuring of the economy/industrialization/urbanization and we argue that this this is due to elite capture of the town meetings.