nep-lam New Economics Papers
on Central and South America
Issue of 2015‒06‒05
nine papers chosen by
Maximo Rossi
Universidad de la República

  1. Female Labor Force Participation in Latin America: Evidence of Deceleration By Leonardo Gasparini; Mariana Marchionni; Nicolás Badaracco; Joaquín Serrano
  2. The Half-Life of Happiness: Hedonic Adaptation in the Subjective Well-Being of Poor Slum Dwellers to a Large Improvement in Housing By Sebastian Galiani; Paul J. Gertler; Raimundo Undurraga
  3. EL CRECIMIENTO ECONÓMICO Y EL PODER ADQUISITIVO EN COLOMBIA By Ortiz Quevedo? Carlos Humberto; Jiménez Restrepo Diana Marcela
  4. Duración, probabilidad e incidencia del desempleo en Colombia By Jaime Tenjo Galarza; Martha Misas Arango; Alejandro Gaviria Jaramillo; Alfredo Contreras Eitner
  5. Dynamic and Strategic Behavior in Hydropower-Dominated Electricity Markets: Empirical Evidence for Colombia By Jorge Balat; Juan E. Carranza; Juan D. Martin
  6. Making Colombia's Tax Policy More Efficient, Fair and Green By Christian Daude; Sarah Perret; Bert Brys
  7. An analysis of pay and occupational differences by gender and race in Brazil - 1987 to 2006 By Salardi Paola
  8. Argentina y los subsidios a los servicios públicos: un estudio de incidencia distributiva By Jorge Puig; Leandro Salinardi
  9. Peru’s Great Depression A Perfect Storm? By Luis Gonzalo Llosa; Ugo Panizza

  1. By: Leonardo Gasparini (CEDLAS-UNLP and CONICET); Mariana Marchionni (CEDLAS-UNLP and CONICET); Nicolás Badaracco (CEDLAS-UNLP); Joaquín Serrano (CEDLAS-UNLP and CONICET)
    Abstract: This paper documents changes in female labor force participation (LFP) in Latin America exploiting a large database of microdata from household surveys of 15 countries in the period 1992-2012. We find evidence for a significant deceleration in the rate of increase of female LFP in the 2000s, breaking the marked increasing pattern that characterized the region for at least 50 years. The paper documents and characterizes this fact and examines various factors that could be driving the deceleration. Through a set of simple decompositions the paper helps to disentangle whether the patterns in female LFP are mainly accounted for by changes in the distribution of some direct determinants of the labor supply decision (e.g. education), or instead they are chiefly the consequence of some more profound transformation in behavior.
    JEL: J2 J1
    Date: 2015–03
  2. By: Sebastian Galiani (University of Maryland and NBER); Paul J. Gertler (UC Berkeley and NBER); Raimundo Undurraga (New York University)
    Abstract: A fundamental question in economics is whether happiness increases pari passu with improvements in material conditions or whether humans grow accustomed to better conditions over time. We rely on a large-scale experiment to examine what kind of impact the provision of housing to extremely poor populations in Latin America has on subjective measures of well-being over time. The objective is to determine whether poor populations exhibit hedonic adaptation in happiness derived from reducing the shortfall in the satisfaction of their basic needs. Our results are conclusive. We find that subjective perceptions of wellbeing improve substantially for recipients of better housing but that after, on average, eight months, 60% of that gain disappears.
    JEL: I31
    Date: 2015–05
  3. By: Ortiz Quevedo? Carlos Humberto; Jiménez Restrepo Diana Marcela
    Abstract: La capacidad de compra de la población incide en el crecimiento económico de largo plazo. En este documento de trabajo planteamos los argumentos teóricos clásicos que permiten sustentar esta afirmación.
    Keywords: Capacidad de compra, crecimiento económico.
    JEL: O40
    Date: 2015–02–02
  4. By: Jaime Tenjo Galarza; Martha Misas Arango; Alejandro Gaviria Jaramillo; Alfredo Contreras Eitner
    Abstract: La tasa de desempleo de una economía se considera el mejor indicador sintético de lo que sucede en el mercado laboral. Sin embargo, a pesar de sus ventajas, dicho indicador no arroja información sobre muchos aspectos de lo que sucede en dicho mercado. Una forma de aproximarse al entendimiento de esta dinámica es investigando tanto la probabilidad de que una persona se encuentre desempleada, como la duración del desempleo y los factores que la determinan. Estos son temas ampliamente estudiados en la literatura sobre economía laboral, pero que en el caso colombiano no han recibido la atención que ameritan. Este artículo se centra en la estimación de la duración del desempleo y la probabilidad de estar en desempleo para Colombia. El objetivo fundamental es proporcionar información detallada sobre las características de los procesos de búsqueda de empleo y del desempleo en Colombia, incluyendo la estimación de la incidencia del desempleo. Este trabajo busca proporcionar información útil para el desarrollo de políticas de mercado laboral. ******* The unemployment rate in an economy is considered the best synthetic indicator of what happens in the labor market. However, despite its advantages, this indicator does not yield information on several matters of what occurs in that market. A first approach to the dynamics of unemployment is to investigate both the probability of being unemployed, and the duration of unemployment considering its determinants. These are topics widely studied by the labor economics literature except in Colombia where it is an almost unexplored issue. This article focuses on the estimation of both the duration of unemployment and the probability of being unemployed for Colombia. The main objective is to provide detailed information of the processes of job search, unemployment and its characteristics, including the estimation of the incidence of unemployment. This paper aims to provide useful information for designing new policies for the labor market.
    Keywords: tasa de desempleo, mercado laboral, duración del desempleo, incidencia del desempleo.
    Date: 2013–12–16
  5. By: Jorge Balat; Juan E. Carranza; Juan D. Martin
    Abstract: In this paper we formulate a dynamic multi-unit auction model to characterize bidding behavior in hydro power dominated electricity markets. Our model implies that, in order to maximize expected profits, hydro producers will submit bid prices above its marginal production costs that account for the intertemporal opportunity cost of water and the expected strategic effects of bids on rivals’ behavior. We test the predictions of our model against data of the Colombian electricity market, where hydro producers hold 63% of total installed capacity, and find evidence consistent with both dynamic and strategic behavior.
    Keywords: Dynamic auction model, Bidding behavior, Market power, Electricity markets.
    JEL: L25 D22 D44
    Date: 2015–05–27
  6. By: Christian Daude; Sarah Perret; Bert Brys
    Abstract: Tax revenues at 20% of GDP remain low compared to other Latin American countries and the OECD average and tax evasion is pervasive. Lower oil revenues and the expiration of a number of taxes are putting strains on the budget at a time when social and development spending needs are rising. Heavy reliance on corporate income taxes reduces investment. At the same time, the redistributive impact of taxation is reduced because most of income and wealth taxes are paid by firms rather than households. Therefore, Colombia needs a comprehensive tax reform that boosts revenues and shifts the tax burden to support more inclusive and green growth. Tax loopholes and exemptions that reduce the tax base and favour mainly the rich should be reduced significantly. Strengthening the tax administration will help reduce evasion. This Working Paper relates to the 2014 OECD Economic Survey of Colombia. (<P>Axer davantage les politiques fiscales sur l'efficacité, l'équité et l'écologie<BR>Les recettes fiscales de la Colombie, qui s’élèvent à 20% du PIB, sont faibles en comparaison d'autres pays d'Amérique latine ou de la moyenne de l'OCDE, et la fraude fiscale est généralisée dans le pays. La baisse des recettes pétrolières et la suppression d’un certain nombre d’impôts et de taxes exercent une pression budgétaire alors même que les besoins de financement des mesures de développement et de progrès social sont en hausse. Le système fiscal repose largement sur l’impôt sur les bénéfices des sociétés, ce qui décourage l'investissement. En parallèle, les effets redistributifs de la fiscalité sont limités du fait que l’essentiel de la fiscalité sur les revenus et le patrimoine est supporté par les entreprises et non par les ménages. En conséquence, la Colombie doit réformer l’ensemble de sa fiscalité, afin d’augmenter les recettes et de déplacer la charge fiscale pour favoriser une croissance plus inclusive et plus verte. Les nombreuses niches fiscales et exonérations qui réduisent la base imposable et avantagent essentiellement les plus riches devraient être limitées de manière significative. Le renforcement de l'administration de l’impôt permettra de réduire la fraude. Ce document de travail se rapporte à l’Étude économique 2014 de l’OCDE sur la Colombie. ( ique-colombie.htm).
    Keywords: personal income tax, corporate income tax, tax policy, tax evasion, green taxation, fiscalité verte, évasion fiscale, impôt sur le revenu des sociétés, impôt sur le revenu des particuliers, politique fiscale
    JEL: H24 H25 H26
    Date: 2015–05–28
  7. By: Salardi Paola
    Abstract: This thesis investigates the magnitude and evolution of gender and racial occupational segregation and wage gaps in Brazil from 1987 to 2006. First, we provide the construction of a new harmonized and temporally consistent re-classification of the occupational codes using the Brazilian household survey, the PNADs. This new occupational classification permits an examination of the evolution of the Brazilian occupational structure over a protracted period of time. Second, we examine the occupational structure in Brazil assessing both the extent and trends in gender and racial based occupational segregation. We use several wellknown indices of segregation (Duncan and Duncan, 1955; Moir and Selby-Smith, 1979; Karmel and Maclachlan, 1988; Silber, 1989) and focus on the evolution over time of the occupational segregation across formal and non-formal labour markets. An attempt is made to assess the main forces driving changes in occupational segregation over time by employing a decomposition of the segregation measures developed by Deutsch, Flueckiger and Silber (2009). Third, we investigate the magnitude and evolution of gender and racial pay gaps in Brazil by employing several decomposition techniques. Together with the standard Oaxaca-Blinder decomposition, we apply the Brown, Moon and Zoloth (1980) decomposition technique, which allows us to account for the impact of occupational segregation on the wage gap. We explore the impact of the selection process on our decomposition results by employing different parametric corrections (the Heckman (1979) and Lee (1983) corrections). Several sensitivity checks are also implemented and alternative correction methods investigated such as the non-parametric imputation method by Olivetti and Petrongolo (2008) and the local wage gap estimation by Machado (2011). Fourth, we attempt to provide a comprehensive portrait of gender and racial wage gaps across the entire wage distribution while exploring the impact of gender and racial occupational segregation on wage determination in the Brazilian labour market. Our analysis particularly focuses on the evolution of the impact of female and non-white occupational intensity on wage outcomes and disparities. We employ quantile regression analysis in order to investigate the role of female and non-white occupational intensity at different points along the conditional wage distribution. We then apply two different decomposition techniques, proposed by Machado and Mata (2005) and Melly (2006), and by Firpo, Fortin and Lemieux (2009), to investigate the determinants of wage disparities at these different points in the wage distribution and to understand how these determinants vary across the wage distribution. Finally, we offer some concluding remarks, discuss the limitation of the research and provide an agenda for future research on the themes investigated in this thesis.
  8. By: Jorge Puig (UNLP); Leandro Salinardi (UNLP)
    Abstract: Este trabajo realiza un análisis de incidencia distributiva de los subsidios a los servicios públicos en Argentina. En particular, se trabaja con los subsidios a la energía residencial (gas de red, gas envasado y electricidad), al agua y al transporte público de pasajeros (colectivo, tren y avión). Se utilizan los datos de la Asociación Argentina de Presupuesto y Administración Financiera Pública (ASAP) para el año 2013 y la Encuesta Nacional de Gastos de los Hogares para los años 2012-2013 (ENGHo). Los resultados que se obtienen indican que la mayoría de los subsidios analizados son pro-ricos (es decir, se concentran en términos absolutos en los deciles de ingresos más altos),y progresivos (teniendo en cuenta la proporción de los subsidios sobre su ingreso, los estratos más bajos reciben relativamente más). Si bien es deseable la característica de progresividad asociada a estas políticas, no es deseable que sean pro-ricos. El hecho de que la mayoría de los montos destinados a subsidiar los servicios públicos caigan en manos de los sectores más pudientes de la población sugiere que existen espacios para una mejor focalización de estas políticas. A su vez se plantea un interrogante puntual sobre el subsidio al transporte aéreo el cual no sólo es pro-rico si no que a su vez es regresivo, aspecto que pone en jaque su justicación al menos desde el punto de vista distributivo.
    JEL: H22 D31
    Date: 2015–05
  9. By: Luis Gonzalo Llosa; Ugo Panizza (UNCTAD)
    Date: 2015–05

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