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The unequal effect of economic development on perceived labor market risks and welfare


Palmtag, Tabea (2023). The unequal effect of economic development on perceived labor market risks and welfare. Political Science Research and Methods:1-18.

Abstract

Economic development and accompanying structural changes of the economy create new opportunities, however not everywhere and not for everyone. Development increases the demand for skilled labor, improving their welfare perceptions, but low-skilled workers feel more insecure and worse off economically. This adverse effect results from a mismatch between local labor demand and individual skill sets. To measure the development levels of people's local environments, I combine geocoded Afrobarometer data and night lights. Bayesian multilevel analysis confirms that the highly skilled are economically most dissatisfied in lagging areas, while the low-skilled are less satisfied in highly developed environments. These findings emphasize the importance of local conditions for welfare perceptions and show the unequal effect of development leaving behind large parts of the population.

Abstract

Economic development and accompanying structural changes of the economy create new opportunities, however not everywhere and not for everyone. Development increases the demand for skilled labor, improving their welfare perceptions, but low-skilled workers feel more insecure and worse off economically. This adverse effect results from a mismatch between local labor demand and individual skill sets. To measure the development levels of people's local environments, I combine geocoded Afrobarometer data and night lights. Bayesian multilevel analysis confirms that the highly skilled are economically most dissatisfied in lagging areas, while the low-skilled are less satisfied in highly developed environments. These findings emphasize the importance of local conditions for welfare perceptions and show the unequal effect of development leaving behind large parts of the population.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:06 Faculty of Arts > Institute of Political Science
Dewey Decimal Classification:320 Political science
Scopus Subject Areas:Social Sciences & Humanities > Sociology and Political Science
Social Sciences & Humanities > Political Science and International Relations
Uncontrolled Keywords:Political Science and International Relations, Sociology and Political Science
Language:English
Date:25 September 2023
Deposited On:27 Nov 2023 10:14
Last Modified:31 Mar 2024 03:36
Publisher:Cambridge University Press
ISSN:2049-8470
OA Status:Hybrid
Publisher DOI:https://doi.org/10.1017/psrm.2023.47
  • Content: Published Version
  • Language: English
  • Licence: Creative Commons: Attribution 4.0 International (CC BY 4.0)