New Economics Papers
on Central and South America
Issue of 2013‒05‒11
seven papers chosen by

  1. Evaluating antipoverty transfer programmes in Latin America and sub-Saharan Africa: Better policies? Better politics? By Barrientos, Armando; Villa, Juan M.
  2. “Double Penalty in Returns to Education: Informality and Educational Mismatch in the Colombian Labour market” By Paula Herrera; Enrique López-Bazo; Elisabet Motellón
  3. Estabilidad de la demanda de trabajo y efecto del salario minimo sobre el Empleo: El caso Chileno By Miranda, Jorge
  4. Trade and Labor Reallocation with Heterogeneous Enforcement of Labor Regulations By Almeida, Rita K.; Poole, Jennifer
  5. Implications of the recent macroeconomic policies on employment and labour market outcomes in Peru By Guerra, Maria Lucia
  6. The Microeconomics of Domestic Violence: empiricall evidence from Medellín By Jorge Barrientos Marín; Daniel Salinas; Carlos Molina
  7. A Multidimensional Perspective of Poverty, and its Relation with the Informal Labor Market: An Application to Ecuadorian and Turkish Data. By Armagan Tuna Aktuna Gunes; Carla Canelas

  1. By: Barrientos, Armando; Villa, Juan M.
    Abstract: The paper provides a comparative analysis of the incidence of evaluation methods in antipoverty transfer programmes in Latin America and sub-Saharan Africa. The paper identifies two broad explanations for the incidence of evaluation in antipoverty transfe
    Keywords: impact evaluation, poverty, antipoverty transfers, Latin America, sub-Saharan Africa
    Date: 2013
  2. By: Paula Herrera (Faculty of Economics, University of Barcelona); Enrique López-Bazo (Faculty of Economics, University of Barcelona); Elisabet Motellón (Faculty of Economics, University of Barcelona)
    Abstract: This paper examines the returns to education taking into consideration the existence of educational mismatches in the formal and informal employment of a developing country. Results show that the returns of surplus, required and deficit years of schooling are different in the two sectors. Moreover, they suggest that these returns vary along the wage distribution, and that the pattern of variation differs for formal and informal workers. In particular, informal workers face not only lower returns to their education, but suffer a second penalty associated with educational mismatches that puts them at a greater disadvantage compare to their formal counterparts.
    Keywords: Educational Mismatch; Formal/Informal Employment; Economic Development; Wage Gap. JEL classification: O17; J21; J24.
    Date: 2013–05
  3. By: Miranda, Jorge
    Abstract: The ability of the economy to create jobs through economic growth, it is essential to improve social welfare. It has been argued that the persistence of unemployment in Chile post Asian crisis was mainly due to two factors: First, to a loss of employment generating capacity, expressed in a fall in the employment-PGB elasticity of the economy. Second, a strong negative effect of minimum wage increases in the late nineties. The first hypothesis is not supported empirically, except the work of Martinez et al (2001) who find an unknown break in the demand for labor in 2001. The second scenario presents mixed evidence. In this paper I attempt to answer both questions using an alternative methodology for the estimation of multiple breaks (Bai and Perron, 2003) in the presence of cointegration relationships (Kejriwal, 2008). The results show evidence of a structural break in the labor demand around the year 2001. The break is mainly characterized by an increase in employment-PGB elasticity. Additionally, separating labor demand by sector, find evidence of a stronger negative impact of minimum wages on employment in the tradable sector, in the late nineties. The minimum wage increases 10% above the average wage in the economy destroyed by 3.6% of jobs in the tradable sector of the economy. These results highlight the importance of the economic growth on employment generation as well as the risk of not considering the economic cycle when it legislated minimum wage increases
    Keywords: labor demand, structural break, PGB-employment elasticity, minimum wage.
    JEL: C22 J23
    Date: 2013–04–30
  4. By: Almeida, Rita K. (World Bank); Poole, Jennifer (University of California, Santa Cruz)
    Abstract: This paper revisits the question of how trade openness affects labor market outcomes in a developing country setting. We explore the fact that plants face varying degrees of exposure to global markets and to the enforcement of labor market regulations, and rely on Brazil's currency crisis in 1999 as an exogenous source of variation in access to foreign markets. Using administrative data on employers matched to their employees and on the enforcement of labor regulations at the city level over Brazil's main crisis period, we document that the way trade openness affects labor market outcomes for plants and workers depends on the stringency of de facto labor market regulations. In particular, we show for Brazil, a country with strict labor market regulations, that after a trade shock, plants facing stricter enforcement of the labor law decrease job creation and increase job destruction by more than plants facing looser enforcement. Consistent with our predictions, this effect is strongest among small, labor-intensive, non-exporting plants, for which labor regulations are most binding. These findings are consistent with the hypothesis that, in the context of strict de jure labor market regulations, increased enforcement limits the plant-level productivity gains associated with increased trade openness. Therefore, increasing the flexibility of de jure regulations may allow for broader access to the gains from trade.
    Keywords: employer-employee data, globalization, enforcement, labor market regulations
    JEL: F16 J6 J8
    Date: 2013–04
  5. By: Guerra, Maria Lucia
    Keywords: employment, decent work, employment policy, economic policy, economic recession, Peru, emploi, travail décent, politique de l'emploi, politique économique, récession économique, Pérou, empleo, trabajo decente, política de empleo, política económica, recesión económica, Perú
    Date: 2012
  6. By: Jorge Barrientos Marín; Daniel Salinas; Carlos Molina (Universidad de Antioquia)
    Abstract: in this paper we are interested in investigating the determinants of domestic violence. For this goal, we consider that many intra-household choices (on good consumption or choices among a set of alternatives) taken by single individuals produces negative externalities and conflict, which may generates events of violence. From theoretical point of view, this paper shows us how the choices of the so-called assailant, have negative impacts on victim’s welfare or utility. In addition, by performing discrete choice models, we show that socioeconomic factors like alcohol consumption and leisure (among others) increases the probability of events of violence.
    Keywords: domestic violence, choices, externalities, conflict, victim, assailant, discrete choice model, marginal effect
    Date: 2013
  7. By: Armagan Tuna Aktuna Gunes (Centre d'Economie de la Sorbonne - Paris School of Economics); Carla Canelas (Centre d'Economie de la Sorbonne - Paris School of Economics)
    Abstract: In this paper, we study the links between time use, informal labor market, and poverty measures in two countries that strongly differ on their level of development, by means of a multidimensional poverty index, and a bivariate probit model to assess the changes in the joint probability of working in the informal sector while being considered poor.
    Keywords: Poverty, informality, time use.
    JEL: D0 D3
    Date: 2013–03

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