New Economics Papers
on Central and South America
Issue of 2013‒09‒06
eight papers chosen by

  1. Financial development in Latin America and the Caribbean : stylized facts and the road ahead By Didier, Tatiana; Schmukler, Sergio L.
  2. Economic Growth and Inequality: Evidence from the Young Democracies of South America By Manoel Bittencourt
  3. Tax Credits Response to Tax Enforcement: Evidence from a Quasi-Experiment in Chile By Claudio Agostini
  4. Financiamiento de la Política en Chile: Campañas Electorales 2009-2010 By Claudio Agostini
  5. Vulnerabilidad y Oportunidades: Los Jóvenes Inactivos en Chile By Andrea Repetto
  6. Una Reforma Eficiente y Equitativa del Impuesto al Ingreso en Chile By Claudio Agostini
  7. Minimum Wage and Job Mobility By Céspedes, Nikita; Sánchez, Alan
  8. Los desafíos pendientes del Ingreso Ético Familiar By Andrea Repetto

  1. By: Didier, Tatiana; Schmukler, Sergio L.
    Abstract: The paper documents the major trends in financial development in Latin America and the Caribbean since the early 1990s. The paper compares trends in Latin America and the Caribbean with those in Asia, Eastern Europe, and advanced countries and compares countries within Latin America and the Caribbean. The findings show that financial systems in the Latin America and the Caribbean region have become more diversified and more complex. In particular, domestic financial systems have become less bank-based, with bond and stock markets playing a larger role; institutional investors have gained some space in channeling domestic savings, thus increasing the availability of funds for investment in capital markets; and several economies in the region have started to reduce currency and maturity mismatches. Nonetheless, a few large companies continue to capture most of the domestic savings. And because these trends have unfolded more slowly than pro-market reformers had envisioned, broad, market-based financial systems with dispersed ownership have yet to materialize fully in the region. As a result, convergence is still largely failing to happen and the region's financial systems remain less developed than those of the advanced economies and several other emerging economies, most notably those in Asia.
    Keywords: Debt Markets,Emerging Markets,Banks&Banking Reform,Access to Finance,Mutual Funds
    Date: 2013–08–01
  2. By: Manoel Bittencourt
    Abstract: We investigate in this paper whether income growth has played any role on inequality in all nine young South American democracies during 1970-2007. The results, based on dynamic panel time-series analysis, suggest that income growth has played a progressive role in reducing inequality during the period. Moreover, the results suggest that this negative relationship is stronger in the 1990s and early 2000s, a period in which the continent achieved macroeconomic stabilisation, political consolidation and much improved economic performance. On the contrary, during the 1980s (the so-called "lost decade"), the negative income growth experienced by the continent at the time has hit the poor the hardest, which has consequently lead to an increase in inequality. All in all, we suggest that consistent growth, and all that it encompasses, is an important equaliser which should not be discarded as a plausible option by policy makers interested in a more equal income distribution.
    Keywords: Growth, inequality, South America
    JEL: E20 O11 O15 O54
    Date: 2013
  3. By: Claudio Agostini (Escuela de Gobierno, Universidad Adolfo Ibáñez)
    Date: 2013–01
  4. By: Claudio Agostini (Escuela de Gobierno, Universidad Adolfo Ibáñez)
    Date: 2012–10
  5. By: Andrea Repetto (Escuela de Gobierno, Universidad Adolfo Ibáñez)
    Date: 2013–04
  6. By: Claudio Agostini (Escuela de Gobierno, Universidad Adolfo Ibáñez)
    Date: 2013–01
  7. By: Céspedes, Nikita (Banco Central de Reserva del Perú; PUCP); Sánchez, Alan (GRADE)
    Abstract: We study the effects of the minimum wage in over employment and income by considering a monthly database that captures seven minimum wage changes registered between 2002 and 2011. We estimate that about 1 million workers have an income by main occupation in the neighbourhood of the minimum wage. We found that the minimum wage-income elasticity is statistically significant; the evidence also suggests that those who receive low incomes and those working in small businesses are the most affected by increases in the minimum wage. Employment effects are monotonically decreasing in absolute terms by firm size: moderate in big firms and higher in small firms. Results are robust when assessing the job-to-job transitions. Finally, we present evidence that supports the hypothesis that the minimum wage in Peru is correlated with income. The movement of income distribution in the context of changes in the minimum wage as well as the results provided by a model that captures the drivers of income justify this result.
    Keywords: Minimum wage, Labor mobility, Income dynamics, Informality
    JEL: E24 E26 J20 J21 J61
    Date: 2013–08
  8. By: Andrea Repetto (Escuela de Gobierno, Universidad Adolfo Ibáñez)
    Date: 2013–03

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