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Effects of Rural Electrification on Employment: A Comment on Dinkelman (2011)

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  • Bensch, Gunther
  • Gotz, Gunnar
  • Peters, Jörg
Abstract
This paper replicates and extends the seminal paper by Dinkelman (2011) on the impacts of electrification on female employment. We revisit the validity of the identification strategy that uses the land gradient as an instrumental variable (IV). Our robustness checks cast doubt on the exclusion restriction as the IV drives the outcome variable in non-electrified regions. We also demonstrate that it is more difficult to disentangle the effects of electricity and road infrastructure than the original paper claims, because the IV affects both. We additionally highlight that the IV is weak, consequently preventing interpretation of the point estimates that are used throughout the original paper. The concomitance of a questionable exclusion restriction and a weak IV is particularly problematic. We conclude by arguing that the take-aways of the original paper for policy and the academic literature need to be reconsidered. In general terms, our comment shows the difficulties of using geographical variation as a natural experiment for infrastructure evaluation.

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  • Bensch, Gunther & Gotz, Gunnar & Peters, Jörg, 2020. "Effects of Rural Electrification on Employment: A Comment on Dinkelman (2011)," MetaArXiv zhn9b, Center for Open Science.
    • Handle: RePEc:osf:metaar:zhn9b
    DOI: 10.31219/osf.io/zhn9b
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    Cited by:

    1. Fetter, T. Robert & Usmani, Faraz, 2024. "Fracking, farmers, and rural electrification in India," Journal of Development Economics, Elsevier, vol. 170(C).
    2. Ankel-Peters, Jörg & Schmidt, Christoph M., 2023. "Rural electrification, the credibility revolution, and the limits of evidence-based policy," Ruhr Economic Papers 1051, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. Bensch, Gunther & Ankel-Peters, Jörg & Vance, Colin, 2023. "Spotlight on Researcher Decisions – Infrastructure Evaluation, Instrumental Variables, and Specification Screening," VfS Annual Conference 2023 (Regensburg): Growth and the "sociale Frage" 277703, Verein für Socialpolitik / German Economic Association.
    4. Enrico Nano, 2022. "Electrifying Nigeria: the Impact of Rural Access to Electricity on Kids' Schooling," IHEID Working Papers 03-2022, Economics Section, The Graduate Institute of International Studies.
    5. Agénor, Pierre-Richard & Agénor, Madina, 2023. "Access to infrastructure and women’s time allocation: Implications for growth and gender equality," Journal of Macroeconomics, Elsevier, vol. 75(C).
    6. Bharadwaj, Bishal & Subedi, Mukti Nath & Malakar, Yuwan & Ashworth, Peta, 2023. "Low-capacity decentralized electricity systems limit the adoption of electronic appliances in rural Nepal," Energy Policy, Elsevier, vol. 177(C).
    7. Dendup, Ngawang, 2022. "Returns to grid electricity on firewood and kerosene: Mechanism," Journal of Environmental Economics and Management, Elsevier, vol. 111(C).

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    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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