nep-lam New Economics Papers
on Central and South America
Issue of 2015‒03‒27
four papers chosen by

  1. Innovaciones financieras en América Latina: mercados de derivados y determinantes de la administración de riesgo By Ibañez, Francisco; Romero-Meza, Rafael; Coronado-Ramírez, Semei; Venegas-Martínez, Francisco
  2. High-skilled workers from Europe move to Brazil for better job opportunities By Gilda Amaral C Momo
  3. Free of Illiteracy? Evaluating the Bolivian Experience with the National Literacy Program “Yo Si Puedo” By Werner L. Hernani-Limarino; Paul Villarroel; Christian Valencia
  4. Job Training and Employability Evidence from Mi Primer Empleo Digno By Werner L. Hernani-Limarino; Paul Villarroel

  1. By: Ibañez, Francisco; Romero-Meza, Rafael; Coronado-Ramírez, Semei; Venegas-Martínez, Francisco
    Abstract: This paper is aimed at examining the theoretical determinants and empirical evidence on the use of derivatives in Latin America for risk management. The contingent claims, the development of their market, and their use, is undoubtedly one of the most powerful financial innovations available to individuals and businesses. It is shown that though Latin American firms use derivatives, there is a lack of research to understand its determinants. The causes and incentives for the development of the Chilean derivatives market are investigated, concluding that its development could not take off in exchanges; however, the OTC market has shown a healthy development. Finally, goals and challenges for Latin American countries are stated and potential research ideas to fill the gap on empirical aspects of risk management in these economies are proposed.
    Keywords: Financial innovations derivatives, risk management, Latin America.
    JEL: G13
    Date: 2015–03–21
  2. By: Gilda Amaral C Momo (Catholic University of Sao Paulo)
    Abstract: The economic crises that developed capitalist countries faced in the beginning of this century cause thousands of Americans and Europeans to leave their countries in search of better working conditions. These new immigrants are heading to emerging countries like Brazil that by presenting a more solid economy and little affected by the crisis is attracting more and more professionals from developed countries that are likely to fill the gap of lack of qualified professionals in the country. The objective of this article is to study the high-skilled immigration to Brazil in the 21st century. Through survey data obtained from the Ministry of Labour of Brazil [2013] the largest contingent of immigrants comes from the United States, Asia and Europe. However, Europeans make up the largest group of skilled immigrants in Brazil today. We intend to analyze these immigrants by, professional activity, the areas they work in Brazil and gender. We use reports on the life history of these immigrants with personal accounts about the advantages and disadvantages of working in a country so distant and multiethnic as Brazil. The work raises chances that the international economic crisis and social networking were important factors in the decision to migrate to Brazil. Hypotheses that will be confirmed by the search result. Although the phenomenon of skilled immigration is not recent, it is little studied and the dissertation will enrich that study by presenting a single fact in the history of Brazilian immigration with a wealth of amazing data about this new international migratory flow which begins in the 21st century, where high professional qualification requirement determines human mobility on the world stage.
    Keywords: Brazil, European Immigrants, High-skilled migration, Foreign Profissionals, Globalization.
    Date: 2014–06
  3. By: Werner L. Hernani-Limarino (Fundación ARU); Paul Villarroel (Fundación ARU); Christian Valencia (Fundación ARU)
    Abstract: This paper evaluates the success of National Literacy Program (PNA) “Yo Si Puedo”. First, we evaluate whether the implementation of PNA is associated with a change in the level and trend of illiteracy, and if such changes were sufficient to reduce the incidence of illiteracy below 4% - a level which permits declare a country free of illiteracy. Moreover, we evaluate the impact of PNA in basic reading and writing skills. In the first scenario, we found no evidence to show that PNA has reduced levels of illiteracy and natural rates of illiteracy reduction except for women in urban areas. In the second scenario, estimates show that PNA impact is quantitatively small but statistically significant on mechanical reading skills, statistically not different from zero on two reading comprehension outcomes, and quantitatively small but statistically significant on written communication skills. While our results are inconsistent with official statements that declare Bolivia as free of illiteracy, they are consistent with other evaluations showing the ineffectiveness and inefficiency of adult literacy programs.
    Keywords: impact evaluation, literacy programs, education
    JEL: C21 I2 I3
    Date: 2015–03
  4. By: Werner L. Hernani-Limarino (Fundación ARU); Paul Villarroel (Fundación ARU)
    Abstract: This document presents an impact evaluation of the pilot program Mi Primer Empleo Digno (MPED) – an active labor market program that provides classroom training and paid internships to low income youth from January 2009 to June 210 in main cities in Bolivia. Taking advantage of the discontinuities generated by the program’s targeting scheme, we use fuzzy regression discontinuity design (FRDD) to estimate the local average treatment effect of the treatment (LATE) for compliers of MPED’s selection rules on post-program employability measured as both, post-program participation, employment and “formal” employment prospects and post-program labor earnings. We find that compliers with the program selection rules had increase their participation, employment and “formal” employment probabilities but only temporarily –i.e. our LATE estimates are significant one quarter after the program was terminated; but we find no evidence of permanent long term effects –i.e. our LATE estimates turn out not significant two quarters after the program was terminated.
    Keywords: impact evaluation, labor market, youth employment, job training public programs
    JEL: C21 I3 J6 H5
    Date: 2015–03

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