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Category: Economics

Published May 14, 2013

Getting Food Aid Right

How many of us read a story of disaster striking people half a world away and respond by getting out our checkbooks?  Tens of millions of us in any given year, and Americans are especially generous. Relief agencies received more than $1.2 billion in the wake of the disastrous 2010 earthquake in Haiti and $3.9 billion following the 2004 Indian Ocean tsunami.  But is anyone foolish enough to go to the local grocery store, buy food and ship it to communities devastated by disaster? Of course not. That would cost much more, take too long to reach people in need, risk spoilage in transit, and likely not provide what is most needed.

Yet with only minor oversimplification, this is precisely what our government’s food aid programs have done since 1954. Our main international food aid programs are authorized through the Farm Bill and must purchase food in, and ship it from, the United States. This system was originally designed to dispose of surpluses the government acquired under farm price support programs that ended decades ago.  These antiquated rules continue today thanks to political inertia in Washington.

As a result, only 40 cents of each taxpayer dollar spent on international food aid actually buys the commodities hungry people eat; the rest goes to shipping and administrative costs. And the median time to deliver emergency food aid is nearly five months. We can do better.

From a longer piece by my friend and frequent coauthor Chris Barrett on CNN’s Global Public Square blog. Chris is also the author with Dan Maxwell of what is without a doubt the best book anyone can read on food aid.

Published May 13, 2013

Job Market Advice I: The Summer and Fall Before Going on the Job Market

[Note: I started writing this post in early April 2013, soon after going on the job market for the second time in my career and receiving four offers. Since then, I have added to this post whenever I thought of a helpful piece of job market-related advice. – MFB.]

It’s that time of the year again, when graduate students who are about to enter their final year in economics and related disciplines are getting ready to go on the job market.

Going on the job market is a harrowing experience for most people, however, so I thought I should help job-market candidates by sharing my advice.

This post is the first in a series of three. Today, I’d like to discuss what you should be doing the summer and fall before you go on the job market. The next installment will be posted in the fall and will cover ASSA interviews.

Before Interviewing at ASSA

  1. Your number one priority at this time should be finishing and polishing your job-market paper (JMP). This isn’t so much because search committees will read your JMP closely when trying to select candidates to interview but because once the academic year starts, you will realize that being on the job market is a job in and of itself. The more complete your JMP by the time the academic year starts, the less you’ll have to worry about it during the year, and the more time you’ll have to devote to other things. Perhaps more importantly, the more complete your JMP by the time the academic year starts, the more time you have to fix the potential mistakes it contains and to incorporate the comments you receive on it.
    Continue readingJob Market Advice I: The Summer and Fall Before Going on the Job Market
Published May 1, 2013

Does International Child Sponsorship Work?

We have all seen the commercials on television. Many of them readily fall under the broad name of “poverty porn,” and most of them feature resigned-looking developing-world children set against a sad soundtrack. All of them ask us to help by sponsoring a child in a developing country.

But does international child sponsorship work? In a new article (older, ungated copy here) in the Journal of Political Economy, Bruce Wydick, Paul Glewwe, and Laine Rutledge give an answer that is bound to surprise many development cynics:

Child sponsorship is a leading form of direct aid from wealthy country households to children in developing countries. Over 9 million children are supported through international sponsorship organizations. Using data from six countries, we estimate impacts on several outcomes from sponsorship through Compassion International, a leading child sponsorship organization. To identify program effects, we utilize an age-eligibility rule implemented when programs began in new villages. We find large, statistically significant impacts on years of schooling; primary, secondary, and tertiary school completion; and the probability and quality of employment. Early evidence suggests that these impacts are due, in part, to increases in children’s aspirations.