New Economics Papers
on Central and South America
Issue of 2008‒03‒15
three papers chosen by

  1. Determinantes de la deserción universitaria en la Facultad de Economía Universidad del Rosario By Carolina Lopera
  2. Migration, Risk and the Intra-Household Allocation of Labor in El Salvador By Halliday, Timothy
  3. Remittances, Liquidity Constraints and Human Capital Investments in Ecuador By Calero, Carla; Bedi, Arjun S.; Sparrow, Robert

  1. By: Carolina Lopera
    Abstract: Este trabajo analiza el problema de la deserción estudiantil en la Facultad de Economía de la Universidad del Rosario, a través del estudio de los factores individuales, académicos y socioeconómicos sobre el riesgo de desertar. Para esto se utiliza el análisis de modelos de duración. Específicamente, se estima un modelo de riesgo proporcional de tiempo discreto con y sin heterogeneidad observada ((Prentice-Gloeckler, 1978 y Meyer, 1980). Los resultados muestran que los estudiantes de sexo masculino, la vinculación de los estudiantes al mercado laboral y los estudiantes provenientes de otras regiones, tienen mayor riesgo de deserción. Además, la edad del estudiante incrementa el riesgo, sin embargo su efecto decrece marginalmente al aumentar la edad. ******************************************************************************************************** This paper analyzes the determinants of the student’s drop-out in the Department of Economics at the Universidad del Rosario, throughout the study of the individual, academic, and socioeconomic background over the desertion risk. In this analysis a duration model is performed with the aim of finding those factors. Specifically, a proportional hazard model is estimated in discrete time with and without observed heterogeneity (Prentice-Gloeckler, 1978 and Meyer, 1980). The results show that male students, students participating within the labor market, and students from other regions have a higher risk of drop-out. Furthermore, the older the student, the highest the risk of deserting; however this effect behaves marginally decreasing.
    Date: 2008–01–31
  2. By: Halliday, Timothy (University of Hawaii at Manoa)
    Abstract: We use panel data from El Salvador and investigate the intra-household allocation of labor as a risk-coping strategy. Adverse agricultural productivity shocks both increased male migration to the US and male agricultural labor supply. This is not a contradiction if there were non-monotonic effects on shadow wages within the survey period. In contrast, damage sustained from the 2001 earthquakes exclusively stunted female migration. This is consistent with the earthquakes increasing the demand for home production.
    Keywords: migration, labor supply, insurance, intra-household allocation
    JEL: J22 J61
    Date: 2008–01
  3. By: Calero, Carla (Ministerio de Coordinación de Desarrollo Social- SIISE); Bedi, Arjun S. (Institute of Social Studies); Sparrow, Robert (Institute of Social Studies)
    Abstract: Over the last decade Ecuador has experienced a strong increase in financial transfers from migrated workers, amounting to 6.4 percent of GDP and 31.5 percent of total exports of goods and services in 2005. This paper investigates how remittances via trans-national networks affect human capital investments through relaxing resource constraints and facilitate households in consumption smoothing by reducing vulnerability to economic shocks. In particular, we explore the effects of remittances on school enrolment and child work in Ecuador. Identification relies on instrumental variables, exploiting information on source countries of remittances and regional variation in the availability of bank offices that function as formal channels for sending remittances. Our results show that remittances increase school enrolment and decrease incidence of child work, especially for girls and in rural areas. Furthermore, we find that aggregate shocks are associated with increased work activities, while remittances are used to finance education when households are faced with these shocks. This suggests that liquidity constraints and vulnerability to covariate risk are especially relevant in rural areas, as it affects household’s investments in human capital of school age children. In this context both child labour supply and transnational remittances serve as coping mechanisms.
    Keywords: migration, remittances, trans-national networks, education, child labour, Ecuador
    Date: 2008–02

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.