nep-lam New Economics Papers
on Central and South America
Issue of 2017‒01‒15
four papers chosen by
Maximo Rossi
Universidad de la República

  1. Ethno-Racial Poverty and Income Inequality in Brazil. By Claudiney Pereira
  2. A comprehensive analysis of the wage curve in Brazil: Non-linearities, urban size, and the spatial dimension By Ana Barufi; Eduardo Haddad; Peter Nijkamp
  3. Measuring the Redistributive Impact of Taxes and Transfers in the Presence of Reranking. Abstract: This paper provides a theoretical foundation for analyzing the redistributive effect of taxes and transfers for the case in which the ranking of individuals by pre-fiscal income changes as a result of fiscal redistribution. Through various examples, this paper shows how reranking--a common feature in all actual fiscal systems--reduces the predictive power of simple measures of progressivity in assessing the actual effect of taxes and transfers on inequality. Length: 60 pages By Ali Enami
  4. Opportunities Seized, Opportunities Missed: Differences in the Economic Impact of Bean Research in Five Latin American Countries By Reyes, Byron A.; Maredia, Mywish K.; Bernsten, Richard H.; Rosas, Juan Carlos

  1. By: Claudiney Pereira (Arizona State University)
    Abstract: Fiscal policy played an important role in reducing poverty and inequality in Brazil (Higgins and Pereira, 2014) over the last fifteen years, but how much redistribution and poverty reduction is being accomplished across ethnic groups? How was the ethno-racial divide affected by fiscal policy? We estimate the effects of taxes and social spending on inequality and poverty among ethnic groups using household survey. We find that direct transfers have similar effects on inequality across ethnic groups, but the reduction is larger for pardos after adding the monetized in-kind benefits (health and education). However, the income ratio between whites and non-whites is virtually unchanged. Poverty is reduced after direct transfers, but the reduction is higher for whites despite the prevalence of poverty is at least twice as high among pardos, blacks, and indigineous. The positive effects on poverty is tempered by a deleterious effect from indirect taxes. In addition, per capita transfers are on average higher for whites and benefits can twice as large as those for non-whites. Fiscal interventions did not have a significant impact in reducing the divide between whites and non-whites in Brazil.
    Keywords: Fiscal policy, great divide, Brazil, inequality, ethno-racial
    JEL: D31 H22 I32 O54
    Date: 2016–11
  2. By: Ana Barufi; Eduardo Haddad; Peter Nijkamp
    Abstract: Agglomeration economies have a relevant impact on local labour markets. The interaction of workers and firms in dense urban areas may generate productivity advantages that result in higher wages. City size has an important impact on the relative bargaining power of workers and firms in the labour market. When analysing the relationship of local wages and the business cycle, wage flexibility, measured by the wage curve, is higher in informal sectors in less dense areas in Brazil. Therefore, large agglomerations are supposed to provide a higher bargaining power for workers, as they have further job opportunities. In addition, labour market dualism is an essential ingredient in the evaluation of the wage curve in developing economies. However, this type of analysis should be conducted in the adequate regional level (labour market areas), mking it possible to find a relevant impact of city size on the relative bargaining power of workers and firms.
    Keywords: wage curve; city size; labour market
    JEL: R23 J31 J46
    Date: 2016–12
  3. By: Ali Enami (Stone Center for Latin American Studies, Department of Economics, Tulane University. Commitment to Equity Institute (CEQI).)
    Keywords: Marginal contribution, vertical equity, reranking.
    JEL: H22 D31 A23
    Date: 2016–11
  4. By: Reyes, Byron A.; Maredia, Mywish K.; Bernsten, Richard H.; Rosas, Juan Carlos
    Abstract: Over the past 20 years, the national systems in Central America and Ecuador have sustainably invested in research to improve varieties of common bean. Previous research has focused on estimating economic benefits realized by new adopters who replace traditional varieties with improved varieties (type I gains). However, recent literature has demonstrated the importance of also estimating the economic benefits realized by current adopters who replace old improved varieties (IVs) with new IVs (type II gains). This study provides estimates of adoption rates of improved varieties in four countries in Central America (Costa Rica, El Salvador, Honduras, Nicaragua) and Northern Ecuador, and calculates the economic benefits realized by new adopters who replace traditional varieties with improved varieties (type I gains) and current adopters who replace old IVs with new IVs (type II gains).
    Keywords: Agricultural and Food Policy, Crop Production/Industries, International Development, Production Economics, Research and Development/Tech Change/Emerging Technologies,
    Date: 2016–11

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