The challenge of the commons: Estonian housing privatization

Housing privatization directly affects each individual and raises significant questions beyond those raised in business privatization. When businesses are privatized, the responsibilities are transferred with the ownership. Housing privatization transfers the ownership of and responsibility for the benefits and costs for the internal space of a flat. However, ownership of and responsibility for the common areas and systems in the large buildings-hallways, roofs, heating, lighting, or exterior walls-are not transferred. These buildings provide a classic scenario for the tragedy of the commons. Who gets the benefits and who pays the costs? How is the externality internalized and responsibility transferred? This paper evaluates the housing privatization process in Estonia with emphasis on the problems of maintenance and the formation of dwelling owners associations. Recommendations for resolution of the tragedy of the commons are provided.     

Earnings Performance of African Immigrants: Evidence from the American Community Survey

Although the number of African immigrants in the U.S. has increased rapidly in recent decades, relatively little regarding their economic performance and assimilation appears in the economics literature. We use pooled cross-sectional data (2011–2015) from the American Community Survey to explore the effects on African immigrant earnings of immigrant characteristics such as degrees attained, type of major, years in the U.S., citizenship status, English-speaking abilities, and country of origin. We also use earnings functions to analyze the earnings assimilation of African immigrants with natives over the past decade. The results show that college-educated African immigrants have experienced some earnings convergence with natives between 2005 and 2015. Surprisingly, the assimilation analysis of non-college graduate African immigrants shows that they have achieved an earnings advantage over native non-college graduates.