New Economics Papers
on Central and South America
Issue of 2010‒04‒04
three papers chosen by

  1. Earnings determinants for own-account workers in the urban informal economy: The case of Bogotá, Colombia By Lacey Ann Wrubel
  2. The periphery paradox in innovation policy: Latin America and Eastern Europe Compared By Rainer Kattel; Annalisa Primi
  3. Integration, resource reallocation and productivity: the cases of Brazil and Chile By Blyde, Juan; Iberti, Gonzalo; Mesquita Moreira, Mauricio

  1. By: Lacey Ann Wrubel
    Abstract: This paper explores earnings determinants for own-account workers in the urban informal economy of Bogotá, Colombia. Descriptive statistics show differences in individual, household and business characteristics when gender and business location are compared. Own-account workers operating in the street, on average, earn less than those in other locations and are the most dissatisfied with their jobs. For all regressions, the dependent variable is the log of hourly earnings. Under the human capital earnings model, women earn statistically significantly less than men for every hour worked. Using an earnings model that includes human, market and social capital factors, there is no gender gap. Education and being married have statistically significant positive returns for men and women. When the data are segmented by gender, age (as a proxy for experience) has no effect on men’s hourly earnings. For women, age and the length of time in business have a statistically significant positive effect on earnings. The number of household members has a significantly negative effect on women’s hourly earnings, but does not affect men’s earnings. Results also show that women in the service sector and men in the sales sector earn significantly less compared to all other sectors.
    Date: 2010–03–23
  2. By: Rainer Kattel; Annalisa Primi
    Abstract: In this paper we are interested in analyzing the dynamics of the innovation policy in non-frontier countries, and their relationship with structural change and development.
    Date: 2010–03
  3. By: Blyde, Juan; Iberti, Gonzalo; Mesquita Moreira, Mauricio
    Abstract: Most microeconometric studies available for LAC have focused on measuring the direct impact of trade on plant productivity leaving aside other effects that arise through the market selection process. Additionally, most studies have focused on tariff barriers as the only obstacle to international trade and integration. In this paper we use data from Brazil and Chile to analyze how trade affects aggregate productivity through the process of resource reallocation and to explore not only the role of tariffs but also the role of transport costs. We find that trade costs affect the reallocative process by protecting inefficient producers, lowering their likelihood to exit, and also by limiting the expansion of efficient plants, lowering their likelihood to export. We also find that the reallocative impacts of trade come not only from tariff barriers but also from transport costs.
    Keywords: Tariff barriers; transport costs; productivity; resource reallocation
    JEL: F13 F14
    Date: 2009–11

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