New Economics Papers
on Central and South America
Issue of 2010‒01‒16
seven papers chosen by

  1. Social Mobility in Bolivia is Finally Improving! By Lykke E. Andersen
  2. O Estigma da Perda de um Emprego Formal no Brasil By Carlos Henrique L.Corseuil; Rodrigo F.Dias, Miguel N. Foguel; Daniel D.Santos
  3. The Impact of Government Spending on the Duration and the Intensity of Economic Crises: Latin America 1900-2000 By Rodrigo Cerda.
  4. Introducción de Factores de Riesgo en el Financiamiento de la Salud Primaria en Chile By Arístides Torche.
  5. Corporate tax, firm destruction and capital stock accumulation: Evidence from Chilean plants By Rodrigo Cerda; Diego Saravia.; Diego Saravia.
  6. Entry into Export Markets and Product Quality Differences By Roberto Álvarez; Rodrigo Fuentes.; Rodrigo Fuentes.
  7. Crime Prevention Programs: Evidence for a Developing Country By Rodrigo Vergara.

  1. By: Lykke E. Andersen (Institute for Advanced Development Studies)
    Abstract: This paper evaluates the degree of social mobility in Bolivia, both by comparing to other Latin American countries, and by comparing social mobility at different points in time. While Bolivia had one of the lowest levels of social mobility in the region in 1997, the last 10 years have seen spectacular improvements, especially for rural and female teenagers. This is very good news, as it suggests that Bolivia has finally escaped the low mobility – low growth equilibrium where it has been stuck for so long.
    Keywords: Social Mobility, Bolivia
    JEL: O54 O43 O15
    Date: 2009–12
  2. By: Carlos Henrique L.Corseuil; Rodrigo F.Dias, Miguel N. Foguel; Daniel D.Santos
    Abstract: O objetivo deste texto é investigar se o mercado de trabalho estigmatiza trabalhadores que foram demitidos em comparação com os que perderam o emprego devido ao fechamento do estabelecimento em que trabalhavam. Usando dados da Relação Anual de Informações Sociais (Rais), do Ministério do Trabalho e Emprego (MTE), sobre trabalhadores formais, concluiu-se que ser demitido reduz significativamente as chances de um trabalhador encontrar novo emprego formal e que, mesmo quando isso ocorre, seu salário inicial é cerca de 10% menor do que o observado entre aqueles que perderam o emprego devido ao fechamento do estabelecimento. Os resultados são robustos para diferentes estratégias de estimação e grupos de variáveis de controle nas regressões. We investigate if the labor market stigmatizes fired workers, by comparing their trajectories with individuals who lost their jobs after the establishments they used to work closed down. Using RAIS data for formal workers, we find that being fired significantly reduces the chances of finding a new formal job, and even when the individual succeed in doing so, he/she receives an initial wage 10% lower than his/her counterpart from a closed establishment. These results are robust to different estimation methods and sets of controls in the regressions.
    Date: 2009–12
  3. By: Rodrigo Cerda. (Instituto de Economía. Pontificia Universidad Católica de Chile.)
    Abstract: We study the role of fiscal expenditure during episodes of economic crises using one century data from 20 Latin American countries. We use output drops as way of indicating the irruption of economic crises and we are able to document episodes of large output drops and large duration of economic crises, which are characteristics that vary considerably among countries. We study the duration of crises by means of count data and hazard models while we study the intensity of the crisis by means of growth regressions. Our main findings suggest that fiscal expenditure has low power to shorten economic crises but it might act as an effective instrument to smooth output-drops during crises.
    Keywords: Economic Crisis, Fiscal Expenditure, Latin America.
    JEL: E62 H50 N16
    Date: 2009
  4. By: Arístides Torche. (Instituto de Economía. Pontificia Universidad Católica de Chile.)
    Date: 2009
  5. By: Rodrigo Cerda; Diego Saravia. (Instituto de Economía. Pontificia Universidad Católica de Chile.); Diego Saravia.
    Abstract: We investigate the impact of corporate taxation on capital stock. In the paper, we indicate that corporate taxation might not only distort the decision of each firm to invest but could also destroy firms. With this in mind, we estimate capital demand equations, correcting for self-selection in the decision to produce by using the Heckman-Lee method and its panel data counterpart (Kyriadizou method). We use Chilean plant-level data , which is a period with large variability in corporate taxation. We find that corporate taxation has a considerable impact on the creation-destruction of firms and in addition, it also has an important impact on the decision of how much to invest for firms that are already involved in production.
    Keywords: Corporate taxation, capital stock.
    JEL: H25 D92
    Date: 2009
  6. By: Roberto Álvarez; Rodrigo Fuentes.; Rodrigo Fuentes.
    Abstract: Using a rich dataset of Chilean exporters, we analyze several issues related to the relationship between entry into export markets and product quality. We find that every year a large number of new exporting relationships are initiated, but the survival rate of these entries is very low and declines over time. Using unit values as a proxy for product quality, our estimations show that entry is generally associated with higher product quality. This higher product quality, however, tends to reduce over time and eventually disappears three years after entry. To better identify this effect, we explore whether there are systematic differences across sectors. As expected, for sectors in which quality differentiation may be important, our findings reveal that reference-price and differentiated products show a higher price in the year of entry and it takes longer to converge to the incumbent prices. These results hold after controlling for potential sample selection bias.
    Keywords: Unit-value exports, product quality, price dynamics.
    JEL: F14
    Date: 2009
  7. By: Rodrigo Vergara. (Instituto de Economía. Pontificia Universidad Católica de Chile.)
    Abstract: This paper analyzes the impact of two anti-crime programs implemented in Chile in the late 1990s. The first (Quadrant Plan) is related to enhancing the quality of police work and the second one (Secure County Plan) to the involvement of the community in designing specific projects aimed at reducing the crime rate. It is found that only the Quadrant Plan has been successful in terms of reducing crime rates and has caused its impact through the effect of arrests in deterring crime. The Secure County program does not appear to have any impact on crime rates. It is also found that crime is associated with unemployment and that there is persistence in crime rates.
    Keywords: Crime; Anti-crime programs; GMM.
    JEL: O10 K42 K14 J18
    Date: 2009

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.