nep-lam New Economics Papers
on Central and South America
Issue of 2011‒02‒12
four papers chosen by
Maximo Rossi
University of the Republic

  1. Incentive Effects of Risk Pooling, Redistributive and Savings Arrangements in Unemployment Benefit Systems: Evidence from a Job-Search Model for Brazil By Robalino, David A.; Zylberstajn, Eduardo; Robalino, Juan David
  2. Bancarizacion y acceso a servicios financieros de beneficiarios urbanos del programa Familias en Acción By Jorge Higinio Maldonado; María Alejandra Urrea;
  3. EDUCATION AND LABOUR MARKET OUTCOMES: EVIDENCE FROM BRAZIL By Geraint Johnes; Aradhna Aggarwal; Ricardo Freguglia; Gisele Spricigo
  4. El desempeño de los estudiantes de secundaria en los colegios de Fe y Alegría en Colombia: una cuestión de Fe y/o Alegría? By Parra Osorio, Juan Carlos; Wodon, Quentin

  1. By: Robalino, David A. (World Bank); Zylberstajn, Eduardo (Fundação Getúlio Vargas); Robalino, Juan David (Imperial College London)
    Abstract: We develop a model of job search and use it to assess the effects that the Brazilian unemployment benefit system has on exit rates from unemployment. In our setup, unemployed workers receive job offers from the formal and informal sectors and decide whether to accept them or wait. Only jobs in the formal sector come with unemployment benefits. After incorporating the rules of the Brazilian unemployment benefit system we estimate the parameters of the model using its labor force survey (a rotating panel). Key parameters determining model dynamics are: the distribution of wage offers for each individual; the observed probabilities of separation from formal and informal jobs; and the unobserved job offers arrival rates. The results show that, in general, workers eligible for unemployment benefits also have higher offer rates – their unobserved characteristic are correlated with more job opportunities. Policy simulations ten suggest that the risk pooling and savings component of the unemployment benefit system have small effects on the probabilities of remaining unemployed. The main effect of both schemes is to reduce transitions into informal jobs. The effects are larger for unskilled workers, particularly women. The simulations also show that current effects are conditioned on the design of the system. More generous unemployment benefits, for instance, could substantially increase the share of workers who remain unemployed. In addition, asking workers to contribute to finance unemployment benefits would reduce formal employment.
    Keywords: labor market transitions, unemployment insurance, social protection, job-search models, structural estimations
    JEL: J63 J64 J65
    Date: 2011–02
  2. By: Jorge Higinio Maldonado; María Alejandra Urrea;
    Abstract: El programa de transferencias condicionadas en Colombia, Familias en Acción, inició en el año 2009 un plan de bancarización de sus beneficiarios. El propósito central consiste en abrir cuentas de ahorro de bajo monto para cada uno de los beneficiarios del programa, que no sólo permiten el pago de forma más ágil, sino que abren espacio para la vinculación de las familias más pobres al sistema financiero formal. Para entender las fortalezas, debilidades, la eficiencia y la eficacia de este plan, el CEDE emprendió a finales del 2009 la “Evaluación preliminar de la gestión y la operación de la bancarización a través del programa Familias en Acción”. Dicha evaluación se apoyó en la aplicación de encuestas estructuradas a beneficiarios en seis ciudades del país. Este documento presenta los principales resultados de la evaluación preliminar del plan de bancarización. Además de analizar los procesos de apertura de las cuentas bancarias y los cambios asociados a la implementación del nuevo sistema de pagos, la información recogida permite examinar el uso de productos financieros, tanto formales como informales. Los resultados muestran una gran oportunidad de mejorar el bienestar de los beneficiarios, no solo con la reducción de sus costos de transacción, sino también con la posibilidad de aumentar su inclusión en el sistema financiero formal. Igualmente, se hace relevante la necesidad de diseñar servicios financieros acordes a las necesidades de este grupo poblacional.
    Date: 2011–02–17
  3. By: Geraint Johnes; Aradhna Aggarwal; Ricardo Freguglia; Gisele Spricigo
    Abstract: The effect of education on labour market outcomes is analysed using both survey and administrative data from The Brazilian PNAD and RAIS-MIGRA series, respectively. Occupational destination is examined using both multinomial logit analyses and structural dynamic discrete choice modelling. The latter approach is particularly useful as a means of evaluating policy impacts over time. We find that policy to expand educational provision leads initially to an increased take-up of education, and in the longer term leads to an increased propensity for workers to enter non-manual employment.
    Keywords: occupation, education, development
    Date: 2011
  4. By: Parra Osorio, Juan Carlos; Wodon, Quentin
    Abstract: Fe y Alegría is a catholic network of schools that started operations in Colombia in 1971, and in 2009 served more than 72,000 students in 61 schools. This paper assesses the performance of Fe y Alegría secondary schools in Colombia using test scores for Spanish and mathematics, as well as detailed information on the characteristics of the household to which students belong. Simple statistics suggest that Fe y Alegría schools perform worse than other schools for all years in the sample. However, Fe y Alegría schools also cater to poorer students who come from disadvantaged backgrounds. Once controls are included for student background, Fe y Alegría schools actually often perform as well and in some cases better than other schools for mathematics and Spanish, thus partially reversing the previous finding.
    Keywords: Education; Faith-based schools; Public-private partnerships; Fe y Alegría; Colombia
    JEL: I20 H43 L31
    Date: 2011–01

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