nep-lam New Economics Papers
on Central and South America
Issue of 2008‒10‒13
two papers chosen by
Maximo Rossi
University of the Republic

  1. The Chilean agricultural transformation during the second half of the twentieth century: A story of institutional change By Antonio Saravia
  2. Parental Labor Market Success and Children's Education Attainment By Carsten Ochsen

  1. By: Antonio Saravia (American University of Sharjah, United Arab Emirates)
    Abstract: The second half of the twentieth century witnessed a dramatic transformation of the Chilean agricultural sector. From accounting for only five percent of the value of Chile’s total exports in the late 1960s, agricultural exports grew to account for more than 30 percent of this value in the mid 1990s. Using a modified neoclassical growth formulation, we show that the transformation of the Chilean agricultural sector can be associated with institutional changes or modifications to the sector’s basic functioning structure. In particular, our historical review shows that changes in the definition of property rights over land, caused by the Chilean agrarian reform first and the general economic reform later, seem to have greatly caused the changes in the sector’s levels of investment and production.
    Keywords: Institutional Economics, Property Rights, Land Tenure, Agricultural Economics, Chile
    JEL: N56 O13 Q11 Q15
    Date: 2008–10
  2. By: Carsten Ochsen (University of Rostock)
    Abstract: This study examines the effects of parental labor market activities on children's education attainment. In contrast to the existing literature we consider parental experiences until the children graduate from school. In addition, the effects of the regional economic environment during teacher's decision about the secondary school track are analyzed. Using data drawn from the German Socio-Economic Panel an ordered probit estimator is used to model children's education attainment. With respect to parental labor market participation we find that father's full-time and mother's part-time employment have significant positive effects on children's education attainment. Furthermore, we obtain evidence that the regional GDP growth rate and the regional unemployment rate when children are 10 years old are significantly related to the education that these children ultimately achieve. Our interpretation is that regional economic conditions affect teachers'recommendations for the secondary school track, which are given during the last year of primary school. The results reveal the less successful parents are on the labor market, the lower the average education level of their children. A second important conclusion is that children who live in regions which experience a poor economic performance over a longer period are, on average, less educated than children who live in more affluent regions.
    Keywords: education attainment, parental labor supply, macroeconomic uncertainty, family structure, intergenerational link
    JEL: I21 J22 E24 J10 J24
    Date: 2008

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