nep-dev New Economics Papers
on Development
Issue of 2013‒08‒10
twenty papers chosen by
Mark Lee
Towson University

  1. How Important are Exports and Foreign Direct Investment for Economic Growth in the People’s Republic of China? By Yuqing Xing; Manisha Pradhananga
  2. Contingent Democrats in Action: Organized Labor and Regime Change in the Republic of Niger By Sebastian Elischer
  3. Transfers to Households with Children and Child Development By Daniela Del Boca; Christopher Flinn; Matthew Wiswall
  4. Braving the Waves: The Role of Time and Risk Preferences in Illegal Migration from Senegal By Arcand, Jean-Louis; Mbaye, Linguère Mously
  5. Early Marriage and Education Transitions of Female Youth: The Case of Indonesia By Chris SAKELLARIOU
  6. How Redistributive is Fiscal Policy in Latin America?: The Case of Chile and Mexico By Barbara Castelletti
  7. Trends in Poverty and Inequality in Decentralising Indonesia By Riyana Miranti; Yogi Vidyattama; Erick Hansnata; Rebecca Cassells; Alan Duncan
  8. Agriculture, Rural Employment, and Inclusive Growth By Briones, Roehlano M.
  9. Crime and Economic Growth: Evidence from India By Kumar, Surender
  10. Farmland loss and livelihood outcomes: A microeconometric analysis of household surveys in Vietnam By Tran, Tuyen; Lim, Steven; Cameron, Michael P.; Vu, Huong
  11. Market Structure, Imperfect Tariff Pass-Through, and Household Welfare in Urban China By Han, Jun; Liu, Runjuan; Ural Marchand, Beyza; Zhang, Junsen
  12. A New Interpretation of Kaldor's First Growth Law for Open Developing Countries By Penelope Pacheco-Lopez; A.P.Thirlwall
  13. Tailoring social protection to small island developing states : lessons learned from the Caribbean By Williams, Asha; Cheston, Timothy; Coudouel, Aline; Subran, Ludovic
  14. A mapping of labor mobility costs in developing countries By Artuc, Erhan; Lederman, Daniel; Porto, Guido
  15. Multisectoral preventive health services in Sri Lanka : lessons for developing countries in providing public goods in health By Das Gupta, Monica; Dalpatadu, K. C. S.; Shanmugarajah, C. K.; Herath, H. M. S. S. D.
  16. Do infrastructure reforms reduce the effect of corruption ? theory and evidence from Latin America and the Caribbean By Wren-Lewis, Liam
  17. Poverty, malnutrition and vulnerability in Mali By Eozenou, Patrick; Madani, Dorsati; Swinkels, Rob
  18. Protecting public investment against shocks in the West African economic and monetary union : options for fiscal rules and risk sharing By Dessus, Sebastien; Varoudakis, Aristomene
  19. Bank financing of SMEs in five Sub-Saharan African countries : the role of competition, innovation, and the government By Berg, Gunhild; Fuchs, Michael
  20. Effects of Colombia's social protection system on workers'choice between formal and informal employment By Camacho, Adriana; Conover, Emily; Hoyos, Alejandro

  1. By: Yuqing Xing (Asian Development Bank Institute (ADBI)); Manisha Pradhananga
    Abstract: The global financial crisis and the recent growth slowdown in the People’s Republic of China (PRC) have led to questions about the sustainability of PRC growth. The argument is that the PRC is too dependent on external demand and that it needs to rebalance its economy toward domestic consumption. However, conventional measures of external demand—share of net exports and exports as a share of gross domestic product (GDP)—are biased and do not accurately measure the contribution of external demand to GDP growth. In this paper, we propose two measures that are simple modifications of the conventional measures. We argue that our proposed measures provide a more accurate estimate of the vulnerability of the PRC economy to external shocks, in the form of sudden drops in exports and foreign direct investment (FDI). Our estimates show that in 2001 exports and FDI accounted for 18.2% of GDP growth and by 2004 the share had risen to 49%. During 2005–07, the contribution of exports and FDI to growth remained 38%–40%. Our estimates also show that the impressive recovery of the PRC economy in the post-crisis period owed at least 53% of its growth to exports and FDI. Based on these results, we conclude that the PRC economy remains highly dependent on external demand in the form of exports and FDI, and rebalancing the economy toward domestic demand has not yet been achieved.
    Keywords: People’s Republic of China, PRC, external demand, GDP growth, export growth
    JEL: F43 E01
    Date: 2013–07
  2. By: Sebastian Elischer (GIGA German Institute of Global and Area Studies)
    Abstract: The effects of organized labor on regime change in developing countries are not clear-cut. Optimists argue that union agitation is conducive to both democratic transition and consolidation processes. Pessimists hold that unions will support any regime that is conducive to their demands. Accordingly, unions may support regime transitions; however, once their economic interests are under threat, they will jeopardize the subsequent consolidation process. Systematic studies on the effects of organized labor on regime change in sub-Saharan Africa are sparse and largely confined to the (pre)transition phase. This article examines the role of organized labor in Niger between 1990 and 2010. Given the high number of regime breakdowns during the period, a longitudinal study of Nigerien labor enables a critical examination of motives and actions of organized labor toward different regime types. In contrast to other recent findings on African unionism, the article confirms the pessimistic view.
    Keywords: political science, democratization, sub-Saharan Africa, trade unions, Niger, civil society, francophone Africa
    Date: 2013–08
  3. By: Daniela Del Boca (University of Torino and CCA); Christopher Flinn (New York University and CCA); Matthew Wiswall (Arizona State University)
    Abstract: In this paper we utilize a model of household investments in the cognitive development of children to explore the impact of various transfer policies on the distribution of child cognitive outcomes in target populations. We develop a cost criterion that can be used to compare the cost effectiveness of unrestricted, restricted, and conditional cash transfer systems, and ï¬nd that conditional cash transfers are the most cost efficient way to attain any given gain in average child quality in a target population. Of course, this is only true if one uses efficiently designed cash transfer systems, and we are able to explore their design using our modeling framework.
    Keywords: Time Allocation; Child Development, conditional and unconditional cash transfer
    JEL: J13 D1
    Date: 2013–04
  4. By: Arcand, Jean-Louis (Graduate Institute of International and Development Studies, Geneva); Mbaye, Linguère Mously (IZA)
    Abstract: This paper aims to provide the first evidence concerning the relationship between time and risk preferences and illegal migration in an African context. Based upon our theoretical model and using a unique data set on potential migrants collected in urban Senegal, we evaluate a measure of time and risk preferences through the individual's intertemporal discount rate and coefficient of absolute risk aversion. Remarkably, our results show that these individual preferences matter in the willingness to migrate illegally and to pay a smuggler.
    Keywords: illegal migration, discount rate, risk aversion, Africa, Senegal
    JEL: F22 O15 O16 R23
    Date: 2013–07
  5. By: Chris SAKELLARIOU (Division of Economics, Nanyang Technological University, Singapore 637332, Singapore)
    Abstract: I explore the association of early marriage of girls in Indonesia with the probability of passing education transitions using a sequential logit model; I first establish that in Indonesia, due to the socio-cultural and religious environment, marriage is the primary reason for exiting school for the majority of girls married before the age of 18 (and a minority of girls married later). I find that girls who married early are associated with extremely low odds of passing education transitions compared to boys, never married girls and girls who marry later; the estimates are even more unfavourable in the presence of unobserved heterogeneity.
    Keywords: Early marriage, education transitions, sequential response model, Indonesia.
    JEL: I24 J12
    Date: 2013–04
  6. By: Barbara Castelletti
    Abstract: This paper looks at the incidence of fiscal policy on the income distribution for Chile and Mexico. Notably by broadening the income concept to account for in-kind benefits and taxes, this paper provides a full picture of the effect of fiscal policy on reducing income inequality. The contrast between the estimates for Chile and Mexico and the rest of OECD countries provides an overall snapshot of income distribution of high inequality countries vis-à-vis advanced economies. The breakdown of the Gini coefficient at a detailed level of policy instruments also enables us to identify the main channels of income inequality reduction and shows how these results differ across countries. Our results for Chile and Mexico suggest that fiscal policy significantly benefits the poorest income groups, mainly through in-kind services such as education and health care. Nevertheless, when compared with outcomes in high-income countries, the effectiveness of fiscal policy in reducing inequality is still limited. Cash transfers (especially those for old-age programmes), direct taxation and, to some extent, a higher market inequality are the main factors behind this difference.<BR>Cet article étudie l’impact des politiques fiscales sur la répartition des revenus au Chili et au Mexique. En outre, en intégrant dans la définition des prestations les transferts en nature et les taxes, cet article dresse un portrait complet de l’effet des politiques fiscales dans la réduction des inégalités salariales. Les différences dans les estimations du Chili et du Mexique avec le reste des pays de l’OCDE permettent un aperçu général de la répartition des revenus dans les pays les plus inégalitaires par rapport aux économies avancées. L’analyse du coefficient de Gini à un niveau détaillé des instruments politiques nous permet également d’identifier les principaux canaux de réduction des inégalités et de comprendre l’origine des divergences entre pays. Nos résultats pour le Chili et le Mexique suggèrent que la politique fiscale bénéficie significativement aux pays à faible revenu, principalement à travers des services en nature tels que l’éducation et les services de santé. Toutefois, en comparaison avec les résultats des pays à haut revenu, l’efficacité de la politique fiscale sur la réduction des inégalités reste limitée. Les transferts en espèces (particulièrement ceux liés au système des retraites), l’imposition directe et, dans une certaine mesure, de fortes inégalités de marché sont les principaux facteurs de cette différence.
    Keywords: fiscal policy, Latin America, income distribution, tax-benefit analysis, politique fiscale, Amérique latine, répartition des revenus, analyse socio-fiscal
    JEL: D31 H20 H31 H40 I30 I32 I38
    Date: 2013–07–24
  7. By: Riyana Miranti; Yogi Vidyattama; Erick Hansnata; Rebecca Cassells; Alan Duncan
    Abstract: As one of the world’s largest emerging economies, Indonesia has experienced rapid economic growth and substantial reduction of poverty over the past three decades, particularly prior to the 1997-98 Asian Financial Crisis. After the crisis, Indonesia entered a new development phase that saw the fall of the Suharto government and new governance which moved highly centralised policies and powers towards a decentralised process. This research report analyses economic and social patterns and trends of poverty and inequality in Indonesia with a particular focus on the decentralisation period from 2001 to 2010.The Indonesian political and economic environment has changed significantly during this period and this had implications for individual wellbeing, regional economic prosperity and national economic growth. The report finds that in general, absolute poverty rates have continued to decline during the decentralisation period although the reduction has not been as strong as it was prior to the Asian economic crisis. In contrast, consumption inequality has increased during the same period. New estimates of growth and inequality elasticity of poverty suggest that this rising inequality has been offsetting the positive benefits of consumption growth on poverty.<BR>En tant que l'une des plus grandes économies émergentes du monde, l'Indonésie a connu une croissance économique rapide et une réduction substantielle de la pauvreté au cours des trois dernières décennies, en particulier avant la crise financière asiatique de 1997-1998. Après cette crise, l'Indonésie est entrée dans une nouvelle phase de développement qui a vu la chute du gouvernement Suharto, et qui a connu une nouvelle gouvernance délaçant des politiques et des pouvoirs fortement centralisés vers un processus décentralisé. Ce rapport analyse les caractéristiques et tendances économiques et sociales de la pauvreté et de l'inégalité en Indonésie, avec un accent particulier sur la période de décentralisation de 2001 à 2010. L’environnement politique et économique indonésien a considérablement changé au cours de cette période. Cela a eu des répercussions sur le bien-être individuel, la prospérité économique régionale et à la croissance économique nationale. Le rapport constate qu'en général, les taux de pauvreté absolue ont continué à baisser au cours de la période de décentralisation, mais la baisse n'a pas été aussi forte qu'elle l'avait été avant la crise économique asiatique. En revanche, les inégalités (mesurées par la consommation) ont augmenté durant la même période. Des nouvelles estimations de la croissance et de l'élasticité de l'inégalité de la pauvreté suggèrent que cette inégalité croissante a compensé les effets positifs de la croissance de la consommation sur la pauvreté.
    Keywords: poverty, inequality, regional disparities, poverty alleviation strategy
    JEL: I32 I38 R12
    Date: 2013–07–23
  8. By: Briones, Roehlano M.
    Abstract: This paper argues that the development of the rural economy is a key factor for achieving inclusive growth, one that creates jobs, draws the majority into the economic and social mainstream, and continuously reduces mass poverty. Employment conditions in Philippine rural labor markets and agriculture can be characterized as casual or informal, with low skill requirements, with low productivity and returns, and a greater concentration of poverty. This is consistent with a prominent strand of development literature that posits a traditional sector, mostly located in rural areas, and highly dependent on agricultural livelihood. Development involves the change in economic structure, anchored on productivity growth in agriculture, involving a movement of labor from the traditional sector, as well as accelerated capital formation in industry and services. Evidence, both international and for the Philippines, is favorable to the structural transformation perspective. For the Philippines, in particular, the evidence points to the following: agricultural growth causes nonagricultural growth, is tightly linked to downstream manufacturing, and contributes significantly toward reducing poverty. Agricultural growth has a differential impact on employment of the unskilled labor, indirectly reducing economywide labor cost by keeping food affordable. Lastly, agricultural productivity growth can have long-term dynamic effects by enabling farm households to invest in human capital, leading to intergenerational diversification of income sources. The evidence suggests that the agricultural and rural economy should be at the forefront, rather than periphery, of the country`s strategy for quality employment generation; such a strategy completing an unfinished reform agenda for sustained development of the rural economy. This involves swift completion of the land reform program. Post-2014, the state should focus on developing a flexible and responsive market for land rights. Liberalization initiatives should be pursued in the area of market policy and logistics. Government should rationalize its role as market regulator. Support for agricultural production should be oriented toward enhancing agricultural productivity and comparative advantage based largely on the effective delivery of public goods and associated services such as R&D, irrigation, and other infrastructure. Agricultural development transcends productivity enhancement at the level of primary production, encompassing the agribusiness value chain and based on comparative advantage.
    Keywords: labor market, Philippines, employment, agriculture, rural development, inclusive growth
    Date: 2013
  9. By: Kumar, Surender
    Abstract: This paper empirically examines the causality between crime rates and economic growth using state level data in India. A reduced form equation has been estimated using instrumental variable approach to correct for joint endogeneity between crime and economic growth. Higher crimes may reduce level of per capita income and its growth rate. Controlling intentional homicide and robbery rates in each of the states to the minimum level they observed during 1991-2011 period, the predicted annual growth in per capita income could have been higher by 1.57 and 1.2 percentage points, respectively. The average annual gain in growth rate by bringing down the homicide rate at a level of national minimum could be 0.62 percentage points. Note that the loss in growth rate is lower or negative in the states that have higher per capita income.
    Keywords: Crime, economic growth, panel data, India.
    JEL: H10 H4 K1 K14 O4 O43 O5 O53
    Date: 2013
  10. By: Tran, Tuyen; Lim, Steven; Cameron, Michael P.; Vu, Huong
    Abstract: Although there has been much discussion in the literature about the impacts of farmland loss (due to urbanization) on household livelihoods, no econometric evidence of these effects has been provided thus far. This paper, hence, is the first to quantify the effects of farmland loss on household livelihood outcomes in peri-urban areas of Hanoi, Vietnam. Our study found no econometric evidence for negative effects of farmland loss on either income or expenditure per capita. In addition, the results show that farmland loss has an indirect positive impact on household welfare, via its positive impact on the choice of nonfarm based-livelihoods.
    Keywords: Farmland loss, livelihood, household, Vietnam
    JEL: D1
    Date: 2013–08–01
  11. By: Han, Jun (Nankai University); Liu, Runjuan (University of Alberta, Alberta School of Business); Ural Marchand, Beyza (University of Alberta, Department of Economics); Zhang, Junsen (Chinese University of Hong Kong)
    Abstract: This paper investigates the Chinese tariff pass-through mechanism. We estimate how market structure, specifically the size of the private sector, affects the transmission of prices from the border to consumers by using household survey data from urban China. Our results suggest that changes in trade policy are not perfectly transmitted to the consumers and imperfections in the local market partially isolate households from the effects of trade policies. Incorporating the price changes of tradable and nontradable goods, we investigate how trade liberalization affects household welfare through changes in the cost of consumption. Our results show that trade liberalization, particularly China’s WTO accession, brings welfare gains to almost every household across the per capita expenditure spectrum, and that the distributional effect is strongly pro-poor.
    Keywords: Market Structure; Trade Liberalization; Pass-Through; Welfare
    JEL: D31 D40 F14 O12
    Date: 2013–07–01
  12. By: Penelope Pacheco-Lopez; A.P.Thirlwall
    Abstract: Kaldor’s first law of growth posits a positive causal relation between the growth of manufacturing output and the growth of GDP due to static and dynamic returns to scale in manufacturing and rising productivity outside the manufacturing sector as resources are transferred from diminishing returns activities. In an open economy, however, the Kaldor first law of growth is open to another interpretation because it is apparent across countries that there is a close association between manufacturing output growth and export growth, and between export growth and GDP growth. Results are presented for 89 developing countries over the period 1990-2011, also distinguishing between low income, lower-middle income and upper-middle income countries, and between the continents of Africa, Asia and Latin America.
    Keywords: Kaldor’s growth laws; manufacturing growth; export growth; GDP growth
    JEL: C21 E12 F43
    Date: 2013–08
  13. By: Williams, Asha; Cheston, Timothy; Coudouel, Aline; Subran, Ludovic
    Abstract: This paper examines the role of social protection (SP) in Small Island Developing States (SIDS), given their particular structural, human resource and capacity constraints. While it focuses on SIDS in Latin America and the Caribbean, thelessons may be relevant to other SIDS with similar challenges. Caribbean SIDS have made significant commitment to address the needs of the vulnerable, as reflected by their level of SP spending, and the numerous safety net programs, labor market interventions, and insurance schemes. Nevertheless gaps remain, as many vulnerable groups are underserved and the systems show limited responsiveness to shocks. This is further hampered by duplication of efforts which limits the efficiency of interventions. The paper recommends a series of systemic efforts to: 1) harmonize SP systems and policies across the region to better respond to increased regional mobility; 2) consolidate SP programs within countries to improve efficiency; 3) foster key human capital improvements among the poor to break inter-generational transmission of poverty; 4) improve monitoring and evaluation systems and data collection capacity to facilitate more responsive SP programs; and 5) increase partnerships with civil society and private sector. At the thematic level, the paper recommends: a) improving the responsiveness to economic and environmental shocks; b) improving efficiency and effectiveness of social safety net programs, in particular cash transfer programs; c) tailoring labor market interventions to respond to constraints faced in the SIDS context; and d) reforming social insurance schemes, particularly pension schemes, to address current deficiencies and ensure readiness to respond to impending ageing.
    Keywords: Safety Nets and Transfers,Population Policies,Labor Policies,Labor Markets,Debt Markets
    Date: 2013–08–01
  14. By: Artuc, Erhan; Lederman, Daniel; Porto, Guido
    Abstract: Estimates of labor mobility costs are needed to assess the responses of employment and wages to trade shocks when factor adjustment is costly. Available methods to estimate those costs rely on panel data, which are seldom available in developing countries. The authors propose a method to estimate mobility costs using readily obtainable data worldwide. The estimator matches the changes in observed sectoral employment allocations with the predicted allocations from a model of costly labor adjustment. This paper estimates a world map of labor mobility costs and uses those estimates to explore the response of labor markets to trade policy.
    Keywords: Labor Markets,Labor Policies,Economic Theory&Research,Work&Working Conditions,Labor Management and Relations
    Date: 2013–08–01
  15. By: Das Gupta, Monica; Dalpatadu, K. C. S.; Shanmugarajah, C. K.; Herath, H. M. S. S. D.
    Abstract: What can other developing countries learn from Sri Lanka on achieving good health at low cost? While its well-organized medical and maternal-child health services have been documented elsewhere, this paper fills a gap in documenting how it organizes services to reduce the population's exposure to disease -- a pure public good. The key factors underlying the effectiveness of these services are (1) strong focal points in the central Health Ministry for supporting preventive services; (2) pro-active outreach by the health line agency to collaborate with other sectors / agents whose work influences public health outcomes; and (3) community-level delivery institutions with well-trained multivalent Public Health Inspectors -- all underpinned by (4) assured tax-based financing. This paper describes this system in some detail such that other countries can learn from Sri Lanka's successful approach to improving population health. It also makes some recommendations for strengthening the system in response to changing conditions.
    Keywords: Health Monitoring&Evaluation,Disease Control&Prevention,Population Policies,Health Systems Development&Reform,Gender and Health
    Date: 2013–08–01
  16. By: Wren-Lewis, Liam
    Abstract: This paper investigates the interaction between corruption and governance at the sector level. A simple model illustrates how both an increase in regulatory autonomy and privatization may influence the effect of corruption. The interaction is analyzed empirically using a fixed-effects estimator on a panel of 153 electricity distribution firms across 18 countries in Latin America and the Caribbean from 1995--2007. Greater corruption is associated with lower firm labor productivity, but this association is reduced when an independent regulatory agency is present. These results survive a range of robustness checks, including instrumenting for regulatory governance, controlling for a large range of observables, and using several different corruption measures. The association between corruption and productivity also appears weaker for privately owned firms compared to publicly owned firms, though this result is somewhat less robust.
    Keywords: Public Sector Corruption&Anticorruption Measures,National Governance,Governance Indicators,Banks&Banking Reform,Economic Theory&Research
    Date: 2013–08–01
  17. By: Eozenou, Patrick; Madani, Dorsati; Swinkels, Rob
    Abstract: This paper provides new insight into the poverty, malnutrition and vulnerability issues in Mali, using existing household survey data. First, it presents a profile of households that are poor,"food poor,"or have malnourished children. Second, it explores the impact of recent weather and price shocks on household welfare and identifies those affected most by the shocks. Finally, it estimates vulnerability to poverty by modeling both households'expected consumption and their consumption volatility, and by distinguishing between idiosyncratic and covariate risks. The basic results of the analysis match conventional knowledge about poverty, food poverty, and malnutrition. The prevalence of chronic malnutrition is high in Mali, with 44 percent of Malian households and 66 percent of food poor Malian households having at least one stunted child. A 25 percent increase in cereal prices and a 25 percent decrease in cereal production are estimated to increase the number of food poor by 610,000 people. An estimated US$ 5.4 million of extra aid per year will be needed to lift the newly food poor above the food poverty line. About US$ 182 million is needed to do this for all existing and new food poor. Vulnerability incidence is in general two to three times higher among the poor than the non-poor, except in urban areas and in the region of Sikasso where the vulnerability incidence is five to six times higher among the poor. Overall, vulnerability is mostly driven by poverty induced vulnerability, except in the capital, Bamako, where vulnerability is more driven by risk induced vulnerability.
    Keywords: Rural Poverty Reduction,Regional Economic Development,Food&Beverage Industry,Poverty Lines
    Date: 2013–08–01
  18. By: Dessus, Sebastien; Varoudakis, Aristomene
    Abstract: West African Economic and Monetary Union arrangements have been instrumental in helping member countries maintain low inflation. However, a lesser-known characteristic of the West African Economic and Monetary Union, with possible implications for economic growth, is the high exposure to shocks and the pro-cyclicality of fiscal policy associated with these arrangements. Evidence from a panel of 80 low-income and lower middle-income countries over the period 1995-2012 suggests that, in the Union, both public investment and current public expenditure are more pro-cyclical than they are in other countries. In particular, public investment contracts more in"bad times"than it increases in"good times"in order to absorb negative shocks to the budget in the context of strict fiscal convergence criteria. The asymmetric response of public investment to shocks could thus be a reason for the relatively low levels of infrastructure in the Union. Comparisons with earlier periods suggest that publicinvestment has become pro-cyclical since the introduction of the fiscal convergence criteria in 1994. Moreover, the shocks that affect Union member countries appear to be highly idiosyncratic and thus difficult to mitigate by the Union's common monetary policy. The pro-cyclicality of public expenditure and the high asymmetry of shocks that affect Union member countries justify exploring options for greater counter-cyclicality of rules-based fiscal frameworks and for risk-sharing.
    Keywords: Public Sector Expenditure Policy,Debt Markets,Economic Stabilization,Fiscal Adjustment,Access to Finance
    Date: 2013–08–01
  19. By: Berg, Gunhild; Fuchs, Michael
    Abstract: This paper provides an overview of the state of access to bank financing for SMEs in five Sub-Saharan African countries and analyzes the drivers behind banks'involvement with SMEs. The paper builds on data collected through five in-depth studies in Kenya, Nigeria, Rwanda, South Africa, and Tanzania between 2010 and 2012. The paper shows that the share of SME lending in the overall loan portfolios of banks varies between 5 and 20 percent. Reasons for this finding vary, but key contributing factors are the structure and size of the economy and the extent of Government borrowing, the degree of innovation mainly as introduced by foreign entrants to financial sectors, and the state of the financial sector infrastructure and enabling environment.
    Keywords: Access to Finance,Banks&Banking Reform,Debt Markets,Financial Intermediation,Environmental Economics&Policies
    Date: 2013–08–01
  20. By: Camacho, Adriana; Conover, Emily; Hoyos, Alejandro
    Abstract: This paper examines whether the Colombian government's expansion of social programs in the early 1990s, particularly the publicly provided health insurance, discouraged formal employment. Using household survey data and variation across municipalities in the onset of interviews for the SISBEN, the instrument used to identify beneficiaries for public health insurance, it shows robust and consistent estimates of an increase in informal employment of approximately 4 percentage points. Similar results are obtained using an alternative dataset, consisting of a panel of individuals interviewed for the first and second SISBEN. The findings suggest that marginal individuals optimized when deciding whether to participate in the formal sector.
    Keywords: Health Monitoring&Evaluation,Labor Markets,Health Systems Development&Reform,Labor Policies,Population Policies
    Date: 2013–08–01

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