nep-dev New Economics Papers
on Development
Issue of 2023‒10‒23
23 papers chosen by
Jacob A. Jordaan, Universiteit Utrecht

  1. Heterogeneous impact of extreme temperatures on household farms: evidence from Sub-Saharan Africa By Fernando M. Aragon, Juan Pablo Rud
  2. Child Labor, Rainfall Shocks, and Financial Inclusion: Evidence from Rural Households By Bernal, Carolina; Vlaicu, Razvan
  3. Estimating the Long-term Effects of a Fruit Fly Eradication Program Using Satellite Imagery By Salazar, Lina; Agurto Adrianzen, Marcos; Alvarez, Luis
  4. Rural underemployment and urbanization: Insights from a nine year household panel survey from Malawi By Van Capellen, Hanne; De Weerdt, Joachim
  5. Farm Size and Income Distribution of Latin American Agriculture New Perspectives on an Old Issue By Gáfaro, Margarita; Ibáñez, Ana María; Sánchez-Ordoñez, Daniel; Ortiz, María Camila
  6. The long-term impact of a resource-based fiscal windfall: evidence from the Peruvian canon By Fernando M. Aragon, Hernan Winkler
  7. Residential Electricity Consumption and Adaptation to Climate Change by Colombian Households By McRae, Shaun D.
  8. Large-Scale Education Reform in General Equilibrium: Regression Discontinuity Evidence from India - Comment By Roodman, David
  9. Electoral Cycles and Caste Violence in India By Roy, Ambika; Mukherjee, Anirban
  10. Does Reliable Electricity Mean Lesser Agricultural Labor Wages? Evidence from Indian Villages By Suryadeepto Nag
  11. Informality, Labor Market Dynamics, and Business Cycles in North Africa By Olivier Bizimana; Shant Arzoumanian
  12. Wealth Inequality in Latin America By Carranza, Rafael; De Rosa, Mauricio; Flores, Ignacio
  13. Wildfires and Human Health: Evidence from 15 Wildfire Seasons in Chile By Arrizaga, Rubí; Clarke, Damian; Cubillos, Pedro P.; Ruiz-Tagle V., Cristóbal
  14. Restoring Property rights: The Effects of Land Restitution on access to credit By Bogliacino, Francesco; Posso, Christian M; Villaveces, Juanita
  15. The Impact of Tropical Storms on International Trade: Evidence from Eastern Caribbean Small Island Developing States By Mohan, Preeya
  16. Explaining Urban Order: The Autocratic Origins of Africa's City Street Networks By Nathan, Noah
  17. Conditional Cash Transfers, Debit Cards and Financial Inclusion: Experimental Evidence from Argentina By Cruces, Guillermo
  18. The Impact of the One-Stop Shop for Business Registration in the Dominican Republic By Bobicì, Vida; Delgado, Lucia; Gerardino, María Paula; Hennessey, Michael; Martinez-Carrasco, José
  19. Natural Resources, State Ownership, and Economic Development By Markus Brückner; Chadi Bou Habib; Martin Lokanc
  20. Origins of Latin American Inequality By Eslava, Francisco; Valencia Caicedo, Felipe
  21. Allocative efficiency between and within the formal and informal manufacturing sector in Zimbabwe By Godfrey Kamutando; Lawrence Edwards
  22. Insights into land size and productivity in Ethiopia: What do data and heterogenous analysis reveal? By Ashok Mishra; Kamel Louhichi; Giampiero Genovese; Sergio Gomez y Paloma
  23. Globalization and Inequality in Latin America By Dix-Carneiro, Rafael; Kovak, Brian K.

  1. By: Fernando M. Aragon, Juan Pablo Rud (Simon Fraser University)
    Abstract: This paper investigates the heterogeneous impact of extreme heat on household farms in low-income countries. Our source of heterogeneity is farm size, as it has been shown to matter for productivity and agricultural practices. Using a large panel dataset from Uganda, Tanzania, Ethiopia, and Malawi, we show that extreme heat reduces agricultural output and food security, independently of farm size. We do find, however, that some responses to temperature shocks are different, e.g., small farms increase land use. These findings suggest that all household farms are vulnerable to the negative impact of climate change, even the largest ones.
    Date: 2023–09
  2. By: Bernal, Carolina; Vlaicu, Razvan
    Abstract: This paper examines how rural households cope with climate change related rainfall shocks by re-allocating childrens time between domestic activities and school attendance. Households affected by an unanticipated rainfall shock face an inter-temporal trade-off between current household income and future potential earnings. Financial inclusion may mitigate or exacerbate the human capital impacts of rainfall shocks depending on whether it relaxes or constrains household budgets. The data come from a three-round panel household survey in rural Colombia collected between 2010-2016. The main findings are that rainfall shocks induce households to choose immediate benefits over long-run investments in education by increasing the incidence of child labor and household chores at the expense of school attendance. Over-indebtedness through pre-existing formal loans reinforces the likelihood that a child works due to rainfall shocks, whereas asset insurance, foreign remittances, and natural disaster aid mitigate or eliminate the shock-induced shift toward domestic activities and away from schooling.
    Keywords: Child Labor;human capital;Rainfall shocks;climate change;financial inclusion;Rural households;Schooling
    JEL: D14 J13 J22 O15 Q54
    Date: 2023–08
  3. By: Salazar, Lina; Agurto Adrianzen, Marcos; Alvarez, Luis
    Abstract: This analysis applies a regression discontinuity approach combined with remote sensing data to measure the productivity impacts linked to a fruit-fly eradication program, implemented in Peru. For this purpose, satellite imagery was used to estimate a vegetation index over a 10-year span for a sample of 305 producers -155 treated and 150 controls-. The results confirmed that program participation increased agricultural productivity in the short and long terms, in a range from 12% to 49%. However, quantile regression methods suggest that most productive farmers were able to obtain greater impacts.
    Keywords: Agricultural productivity;Impact Evaluation;Remote Sensing;Satellite Images;Peru
    JEL: Q12 Q16 O13
    Date: 2023–08
  4. By: Van Capellen, Hanne; De Weerdt, Joachim
    Abstract: Rural labor markets in Africa are frequently characterized by underemployment, with farmers unable to fully deploy throughout the year one of their most important assets—their labor. Using a nine-year panel data set on 1, 407 working-age adults from rural Malawi, we document changes in rural underemployment over this period and how they are associated with urbanization. Nearby urban growth results in increased hours worked in casual labor (ganyu) and in non-agricultural sectors, at the expense of work on the household farm. Improved urban access is also associated with a small increase in wage labor and, at the intensive margin, with hours supplied in household enterprises. We draw lessons from these results for policies, investments, and interventions to leverage urban growth for rural development.
    Keywords: MALAWI; SOUTHERN AFRICA; AFRICA SOUTH OF SAHARA; rural population; underemployment; farmers; labour; urbanization; income; households; rural development
    Date: 2023
  5. By: Gáfaro, Margarita; Ibáñez, Ana María; Sánchez-Ordoñez, Daniel; Ortiz, María Camila
    Abstract: Latin American and Caribbean countries have historically been known for their rates of land inequality, highest in the world. However, these countries also exhibit a high degree of heterogeneity in their patterns of land concentration and average farm sizes. These cross-country differences play a determining role in productivity of farms and the distribution of agricultural income. Constructing a new data-set matching agri- cultural census and household survey data, we provide suggestive evidence on the positive relationship between farm size and farm income and wages. We identify the prevalence of small farms and the resulting low agricultural incomes as an important mechanism contributing to high income inequality in agricultural regions. Low labor productivity in small farms appears as a key explanatory factor.
    Keywords: Land inequality;Productivity;Agricultural income
    JEL: O13 O15 O54 J43 Q12 Q15
    Date: 2023–08
  6. By: Fernando M. Aragon, Hernan Winkler (Simon Fraser University)
    Abstract: This paper examines the long-term impact of the canon, a resource-based transfer, on local living conditions in Peruvian municipalities. We use the most recent data and several identification strategies with cross-section and panel data. We find no evidence of significant improvements in access to public services, poverty, or inequality. This negligible impact occurs, even though we do observe sizable increases in municipalities’ revenue, personnel, and equipment. We only observe some suggestive, albeit weak, evidence of increased infrastructure projects in local areas, such as the construction and repair of urban roads.
    Date: 2023–09
  7. By: McRae, Shaun D.
    Abstract: This paper provides the first empirical estimates of the relationship between temperatures and household electricity consumption in Colombia, using electricity billing and weather data from 2010 to 2019. I find that higher temperatures (or higher values of the heat index) increase electricity consumption, with the largest effects observed for high-income households in regions with hot climates. However, I show that there has been partial convergence between low- and high-income households, with the effect of temperature on electricity consumption in lower-income neighborhoods more than doubling between 2011 and 2019. These results align with survey evidence of increased air conditioning adoption. Nevertheless, further growth in air conditioning adoption and use is required to alleviate the health effects of more frequent and severe heatwaves due to climate change.
    JEL: L94 O13 Q41 Q54
    Date: 2023–07
  8. By: Roodman, David
    Abstract: This paper reanalyzes Khanna (2023), which studies labor market effects of schooling in India through regression discontinuity designs. Absent from the data are four dis-tricts close to the discontinuity; restoring them cuts the reduced-form impacts on schooling and log wages by 57% and 63%. Using regression-specific optimal band-widths and a robust variance estimator clustered at the geographic unit of treatment makes impacts statistically indistinguishable from 0. That finding is robust to varying the identifying threshold and the bandwidth. The estimates of general equilibrium effects and elasticities of substitution are not unbiased and have effectively infinite first and second moments.
    Date: 2023
  9. By: Roy, Ambika; Mukherjee, Anirban (University of Calcutta)
    Abstract: In presence of ethnic voting, violence is often used in India to dissuade ethnic minorities from voting. In this paper, we examine if violence against disadvantaged castes follows a pattern during an electoral cycle. More specifically, we want to see if crimes against the Scheduled Caste population in India is affected by it’s proximity to state assembly elections. For this we construct a district level panel of 466 districts, spread across 18 states from2007 to 2021 on crime and elections in India. Our baseline specification exploits a fixed effects model and finds that election years are marked by a statistically significant fall in caste violence, which is quite high in the year preceding the election. A heterogeneity analysis reveals that the effect is significantly enhanced in districts with a history of caste politics, especially where caste parties have more political power. Our findings also support the claim that an increase in political power leads to a greater degree of confrontation and conflict rather than its prevention.
    Date: 2023–09–16
  10. By: Suryadeepto Nag
    Abstract: Using a panel of 1, 171 villages in rural India that were surveyed in the India Human Development Surveys, I perform a difference-in-differences analysis to find that improvements in electricity reliability have a negative effect on the increase in casual agricultural labor wage rates. Changes in men's wage rates are found to be affected more adversely than women's, resulting in a smaller widening of the gender wage gap. I find that better electricity reliability reduces the time spent by women in fuel collection substantially which could potentially increase labor supply. The demand for labor remains unaffected by reliability, which could lead the surplus in labor supply to cause wage rates to stunt. However, I show that electrical appliances such as groundwater pumps considerably increase labor demand indicating that governments could target increasing the adoption of electric pumps along with bettering the quality of electricity to absorb the surplus labor into agriculture.
    Date: 2023–09
  11. By: Olivier Bizimana; Shant Arzoumanian
    Abstract: Employment informality is widespread across North Africa. This paper aims to shed light on the role played by the informal sector in labor market adjustments over the business cycle. It finds that the response of labor markets to output fluctuations is more muted in countries with higher informality levels, like the North African economies. The analysis also confirms that informal employment is countercyclical and acts as a buffer during economic downturns in countries with relatively higher informality. However, contrary to what took place in past recessions, informal employment contracted sharply during the 2020 pandemic recession in high informality economies, suggesting that it did not play its traditional countercyclical role. By contrast, employment informality tends to fall modestly or increase during economic upturns, including the post-pandemic recovery. This finding presages the persistence of a large informal sector in the post-covid era in medium- and high-informality countries.
    Keywords: Informality; Labor Markets; Business cycles; Okun’s Law
    Date: 2023–09–08
  12. By: Carranza, Rafael; De Rosa, Mauricio; Flores, Ignacio
    Abstract: How much wealth has accumulated in the region and how is it distributed across households? Despite being widely recognized for its extreme income inequality, reliable data on wealth is scarce, partial and oftentimes contradictory, making it difficult to answer these basic questions. In this study, we estimate aggregates based on macroeconomic data, and inequality based on recently available surveys. We contrast our results with the literature, with a handful of state-of-the-art estimates from administrative sources, and with more available but extrapolated estimates from Credit Suisse and Considering all the evidence, we distinguish reliable facts from what can only be conjectured or speculated. We find that aggregate wealth increased over two decades in four countries, now ranging close to 3.5 the national income for market value estimates and 5-6 times at book values. We also find that wealth inequality is amongst the highest in the world were it can be measured. Given data limitations, one can only speculate about aggregates in opaque countries and about inequality trends in any country in the region. Although recent research in the developed world has focused in combining data sources to better understand wealth, the region lags behind and urgently requires more and better public information.
    Keywords: wealth distribution;wealth-to-income ratios;household surveys;national accounts;Latin America
    JEL: D31 E01 E22
    Date: 2023–06
  13. By: Arrizaga, Rubí; Clarke, Damian; Cubillos, Pedro P.; Ruiz-Tagle V., Cristóbal
    Abstract: Wildfires are increasing in frequency and intensity. We study the impact of exposure to wildfires on air pollutants and on human health in Chile, finding substantial impacts on both classes of outcomes. We use data on 15 wildfire seasons (2004-2018) matched with granular (intra-day) records of wind direction and air quality, as well as administrative records of all hospitalizations in the country. By combining the precise location of fires with wind direction at the moment in which fires occur, we estimate causal impacts of exposure to wildfires. We find considerable impacts. Exposure to a large wildfire (250 Ha) is observed to increase PM2:5 concentrations by 10% on average in municipalities up to 200km from the epicenter of the wildfire. These effects have appreciable impacts on rates of hospitalization. A one standard deviation increase in exposure to large wildfires is estimated to increase rates of respiratory hospitalizations by 0.75%, while the effect of exposure to the most extreme week of wildfires observed is estimated to increase hospitalizations by as much as a third. Effects are found to be particularly acute for infants, and to grow with the size of the exposure to wildfire (both in terms of duration and area burned).
    Keywords: natural disasters;Wildfires;Air pollution;human capital;Heal
    JEL: Q54 I18 R11
    Date: 2023–07
  14. By: Bogliacino, Francesco (Universidad Nacional de Colombia); Posso, Christian M; Villaveces, Juanita
    Abstract: We estimate the causal effect of the Law mandating land restitution to victims of forced displacement in Colombia. We use the timing of the restitution as the source of identification in an event study approach. Farmers typically rely on small to medium-sized loans with limited or no collateral to finance their investments, thus we employ microcredit as our main outcome variable. We analyze administrative data from the program, along with data from the census of credit transactions. Our findings reveal a substantial increase in access to credit, both in terms of the likelihood of signing a loan (extensive margin) and the loan amounts (intensive margin). These effects are most pronounced two years after land restitution, coinciding with the moment individuals gain full property rights. By delving into the specific details of these credit transactions, we ascertain that the credits obtained are primarily directed towards agricultural investments. This suggests that the increased access to credit is likely being used to finance material investments in the restored land parcels.
    Date: 2023–09–21
  15. By: Mohan, Preeya
    Abstract: Eastern Caribbean Small Island Developing States (SIDS) have a high dependence on international trade for income, employment and poverty reduction given their extreme openness, small market size, narrow range of resources and productive capabilities and specialized economic structures, making them vulnerable to external shocks, the most frequent being tropical storms. The objective of this paper is to investigate the impact of tropical storms on international trade for eight Eastern Caribbean SIDS over the period 2000-2019, as well as the mediating role of the Real Effective Exchange Rate (REER). The results indicate that hurricanes have a more long-term impact on exports, reducing exports of goods by 20 percent in the month of a strike and up to three months thereafter, while the impact on imports was just as severe but more immediate, reducing imports of goods by 11 percent in the month of a strike. The mediation analysis suggests that the REER plays no mediating role in explaining the impact of tropical storm damage on exports and imports in the region.
    Keywords: natural disasters;Hurricanes;International trade;Small Island Developing States;Caribbean
    JEL: F1 F4 Q54 Q56
    Date: 2023–09
  16. By: Nathan, Noah
    Abstract: I connect the political incentives of state leaders to the physical geometry of urban built environments. Drawing on a novel combination of street network data, archival maps, and satellite imagery, I test and refine classic claims that autocratic regimes seek to order urban space, rendering society more legible through the production of gridded streets. Backdating the construction of 1.5 million streets across a sample of African cities, I show that more ordered, gridded urban neighborhoods emerge under more autocratic post-colonial regimes. But rather than a conscious effort to increase society’s legibility through urban design, evidence on mechanisms is more consistent with urban order emerging as a side-effect of more general patronage strategies autocrats use to placate critical subsets of the urban population. The paper demonstrates that efforts to intervene on the built environment represent an underexplored element of both autocratic and urban politics in the developing world.
    Date: 2023–09–11
  17. By: Cruces, Guillermo
    Abstract: Cash transfer and other social protection programs in developing countries have often been accompanied by measures to foster financial inclusion, such as the adoption and use of bank accounts and electronic means of payments. Argentina's social benefits are paid in bank accounts and accessed through debit cards. With the simultaneous objective of fostering formality among beneficiaries and stores, the use of debit cards for purchases has been incentivized by means of additional subsidies. We studied the low take-up of these extra benefits by means of a field experiment involving 400, 000 beneficiaries of Argentinas largest conditional cash-transfer program (with 2.2 million beneficiaries who are the parents of four million children, 40% of the countrys 0-17-year olds). By using their debit card to spend the allowance, rather than withdrawing cash from ATMs, they can receive a rebate of 15% of their expenditures. However, they systematically fail to claim this benefit: only about 25% of beneficiaries receive this transfer. Our experiment provided information about the effectiveness of an information campaign conducted via text messages or through on-screen messages at ATM machines. The campaign increased purchases with debit cards and subsequent rebates significantly but not substantially in the short run. However, beneficiaries who increased their use of debit cards do not exhibit a higher probability of having access to credit through the financial system, nor higher levels of formal employment. The results indicate that cultural factors (a preference for cash), administrative hassle and citizen security issues are relevant issues that limit the potential of financial inclusion through increased use of digital means of payment.
    Keywords: Take-up of social benefits;financial inclusion
    JEL: C93 H26 K34 K42 Z13
    Date: 2023–08
  18. By: Bobicì, Vida; Delgado, Lucia; Gerardino, María Paula; Hennessey, Michael; Martinez-Carrasco, José
    Abstract: Digital one-stop shops for firm registration can significantly reduce costs and increase access to information for firms entering the formal sector. This paper examines the impact of a nationwide program with a one-stop registration shop and lower registration fees. In addition to analyzing its impact on the number of firms registering in the formal sector, this study explores how the program reshapes the labor market for women and men. The empirical setting, the Dominican Republic, is characterized by high levels of firm and labor informality. The government launched the digital one-stop shop called Formalízate in 2013. To analyze its impact, this paper takes advantage of the sequential rollout of the program across provinces in the country. Results show that the launch of the program in a province is associated with a greater number of micro firms entering the formal market. Interestingly, these firms are concentrated in sectors in which informality was high prior to rollout of the program, especially the commerce and tourism sector. In addition, the results show that women's participation in the labor forced is impacted by the program, but men's participation is not. More specifically, the presence of Formalízate increased women's participation in the labor market as self-employed entrepreneurs.
    Keywords: formalización;regulación de registro;evaluación de impacto;microempresas;autoempleo
    JEL: O17 O12 J40
    Date: 2023–05
  19. By: Markus Brückner; Chadi Bou Habib; Martin Lokanc
    Abstract: This paper revisits the relationship between countries' natural resource abundance and economic development. We find that natural resources are supportive of pro-poor, inclusive, long-term economic growth. Cross-country regressions show that: (i) countries with greater natural resource abundance have on average significantly higher levels of GDP per capita; (ii) poverty rates are significantly lower in resource abundant countries; (iii) natural resource abundance has a significant positive effect on countries' Human Development Index. We show that state ownership is a significant transmission channel through which countries' natural resource abundance affects economic development. This is particularly true in countries that combine above-median state ownership and highly performing policies and institutions.
    Keywords: Natural Resources; National Income; Poverty; Human Development; State Ownership
    JEL: C3 O1 O4 Q3
    Date: 2023–10
  20. By: Eslava, Francisco; Valencia Caicedo, Felipe
    Abstract: How deep are the roots of Latin America's economic inequalities? In this chapter we survey both the history and the literature about the region's extreme economic disparities, focusing on the most recent academic contributions. We begin by documenting the broad patterns of national and sub-national differences in income and inequality, building on the seminal contributions of Engerman and Sokoloff (2000; 2002, 2005) and aiming to capture different dimensions of inequality. We then proceed thematically, providing empirical evidence and summarizing the key recent studies on colonial institutions, slavery, land reform, education and the role of elites. Finally, we conduct a “replication” exercise with some seminal papers in the literature, extending their economic results to include different measures of inequality as outcomes.
    Keywords: Elites;Inequality;Latin America;History;Colonization;Persistence;Slavery;Land Refor;Education
    JEL: D02 D63 I24 N10 N16 O43 Q15
    Date: 2023–07
  21. By: Godfrey Kamutando (Post-doctoral Research Fellow, School of Economics, University of Cape Town and Policy Research in International Services and Manufacturing (PRISM).); Lawrence Edwards (School of Economics, University of Cape Town and Policy Research in International Services and Manufacturing (PRISM).)
    Abstract: Resource misallocation has the potential to reduce aggregate total factor productivity and undermine industrial development. These effects can be particularly pronounced in emerging economies where large market frictions impede efficient resource allocation. This paper investigates the extent and nature of resource misallocation between and within the formal and informal manufacturing sector in Zimbabwe. Applying the approach developed by Hsieh & Klenow (2009) to firm-level microdata, the results reveal extensive resource misallocation in both the formal and informal manufacturing sector. Misallocation is more pronounced in informal sector firms and is associated with relatively large capital market distortions. Further, misallocation is more pronounced amongst relatively productive firms, thus exacerbating aggregate losses in total factor productivity (TFP). Estimates indicate that aggregated gains in TFP of 126.7% can be realized through efficient resource allocation.
    Keywords: Misallocation, total factor productivity, informal sector
    JEL: E24 D24 E29 L60
    Date: 2023
  22. By: Ashok Mishra (Kemper and Ethel Marley Foundation Chair, Arizona State University, Tempe, AZ, United States); Kamel Louhichi (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Giampiero Genovese (JRC - European Commission - Joint Research Centre [Seville]); Sergio Gomez y Paloma (JRC - European Commission - Joint Research Centre [Seville])
    Abstract: This study investigates whether the historical inverse relationship (IR) between land (farm and plot) size and productivity holds for Ethiopia farms. The study uses plot level and household-level data from the three waves of the Ethiopia Socioeconomic Survey. The main finding, which confirms previous studies, is that the plot-size IR holds when productivity measurement is based on self-reported yields. However, the effects were reversed when we used crop-cut yields. Including labor inputs significantly reduces the magnitude of the coefficients on land size, but not the sign. Finally, the quantile regression reveals interesting findings. These are: (1) a strong positive effect of farm (and plot) size on productivity; (2) the magnitude of the effect decreases monotonically with quantile; (3) farm size displays a robust negative impact on gross revenue and the magnitude of the effect increases (in absolute terms) monotonically with quantiles; (4) the effect of farm (and plot) size on productivity decreases in magnitude when we control for labor input; (5) the IR between farm (and plot) size and total and family labor was negative and significant and the effect increases (in absolute terms) monotonically with quantiles.
    Abstract: Cette étude examine si la relation inverse (RI) historique entre la taille des terres (ferme et parcelle) et la productivité est confirmée pour les exploitations éthiopiennes. L'étude utilise des données au niveau des parcelles et des ménages des trois vagues de l'enquête socioéconomique en Éthiopie. La principale conclusion, qui confirme les études précédentes, est que la RI existe lorsque la mesure de la productivité est basée sur les rendements autodéclarés, alors qu'elle est directe quand les rendements sont mesurés avec la technique des coupes-témoins. L'inclusion de la main-d'œuvre réduit considérablement l'ampleur des coefficients, mais pas le signe.
    Keywords: Agricultural productivity, Land-size, Farm-size, Inverse relationship, Quantile regression, Ethiopia, Sub-Saharan Africa, Productivité agricole, Taille des terres, Taille de l'exploitation, Relation inverse, Régression quantile, Éthiopie, Afrique subsaharienne
    Date: 2023–01–30
  23. By: Dix-Carneiro, Rafael; Kovak, Brian K.
    Abstract: We survey the recent literature studying the effects of globalization on inequality in Latin America. Our focus is on research emerging from the late 2000s onward, with an emphasis on empirical work considering new mechanisms, studying new dimensions of inequality, and developing new methodologies to capture the many facets of globalizations relationship to inequality. After summarizing both design-based and quantitative work in this area, we propose directions for future work. Our overarching recommendation is that researchers develop unifying frameworks to help synthesize the results of individual studies that focus on distinct aspects of globalizations relationship to inequality.
    Keywords: Equality;Globalization;labor force;Inequality;Informal Economy;Integration and Trade;Tariff System;labor market;free trade;labor;Industry
    JEL: F14 F16 J16 J46 O54
    Date: 2023–06

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