nep-lam New Economics Papers
on Central and South America
Issue of 2018‒01‒15
seven papers chosen by
Maximo Rossi
Universidad de la República

  1. How do Latin American migrants in the U.S. stand on schooling premium? What does it reveal about education quality in their home countries? By Daniel Alonso-Soto; Hugo Ñopo
  2. One laptop per Child en Perú: un modelo estructural para cuanticar el trade-off entre la distribución del tiempo y el método de enseñanza By Jesús Gutiérrez; Pablo Lavado; Luis Paniagua
  3. Returns and intergenerational mobility of education during period of falling earnings inequality in Brazil By Neri, Marcelo Cortes; Bonomo, Tiago
  4. Currency Mismatches and Vulnerability to Exchange Rate Shocks: Nonfinancial Firms in Colombia By Adolfo Barajas; Sergio Restrepo; Roberto Steiner; Juan Camilo Medellin; Cesar Pabon
  5. Growth and shared prosperity in Brazil By Kakwani, Nanak; Neri, Marcelo Cortes; Vaz, Fábio Monteiro
  6. On measuring social tensions: with applications to Brazil By Neri, Marcelo Cortes; Kakwani, Nanak
  7. Estimación del valor económico de la captura de carbono por efecto de la forestación en el Uruguay By Caffera, Marcelo; D’Agosti, Natalia

  1. By: Daniel Alonso-Soto (Organization for Economic Co-operation and Development (OECD)); Hugo Ñopo (Grupo de Análisis para el Desarrollo (GRADE))
    Abstract: Indicators for quality of schooling are not only relatively new in the world but also unavailable for a sizable share of the world’s population. In their absence, some proxy measures have been devised. One simple but powerful idea has been to use the schooling premium for migrant workers in the U.S. (Bratsberg and Terrell, 2002). In this paper we extend this idea and compute measures for the schooling premium of immigrant workers in the U.S over a span of five decades. Focusing on those who graduated from either secondary or tertiary education in Latin American countries, we present comparative estimates of the evolution of such premia for both schooling levels. The results show that the schooling premia in Latin America have been steadily low throughout the whole period of analysis. The results stand after controlling for selective migration in different ways. This contradicts the popular belief in policy circles that the education quality of the region has deteriorated in recent years. In contrast, schooling premium in India shows an impressive improvement in recent decades, especially at the tertiary level.
    Keywords: Schooling premium (returns to education), Wage differentials, Immigrant workers
    JEL: J31 J61
    Date: 2017–12
  2. By: Jesús Gutiérrez (Universidad del Pacífico); Pablo Lavado (Universidad del Pacífico); Luis Paniagua (Universidad del Pacífico)
    Abstract: One Laptop per Child es un programa que se implementó en 2007 por el Ministerio de Educación del Perú. El estudio cuantifica el efecto del programa sobre los canales que afectan al rendimiento académico de los niños: la distribución del tiempo y el método de enseñanza. Se utilizó la base de datos que recogió el Banco Interamericano de Desarrollo en 2010 y se generó un modelo estructural estático de asignación de tiempo. Los resultados muestran que el programa reduce la probabilidad de aplicar un método de enseñanza eficiente en 0.05 puntos porcentuales y aumenta el tiempo de estudio en aproximadamente 50 minutos diarios, lo cual demostraría la existencia de un trade – off entre estos canales. Asimismo, se observa que cualquier política enfocada a la ganancia de tiempo de los niños, generaría efectos positivos sobre su rendimiento académico siempre que se complemente con el acceso a la tecnología.
    Keywords: Educación, modelo estructural, rendimiento académico, tecnología, laptop, OLPC, método de enseñanza, distribución del tiempo
    Date: 2017–12
  3. By: Neri, Marcelo Cortes; Bonomo, Tiago
    Abstract: Education related changes are often argued as the main reasons for changes in earnings distribuctions. However, omitted variable and measurement error biases possibly affect econometric estimates of these effects. Brazil experienced a sharp fall of individual labour income inequality betwenn 1996 and 2014. Coincidently, there are special supplements of PNAD on family background in these two years that allow us to better address the role played by falling education returns. This note takes advantage of this information to provide new estimates of the level and evolution of the returns to education in Brazil using variable premiums by education level, quantile regressions and pseudo panels.
    Date: 2017–12–21
  4. By: Adolfo Barajas; Sergio Restrepo; Roberto Steiner; Juan Camilo Medellin; Cesar Pabon
    Abstract: After building up foreign currency denominated (FC) liabilities over several years, Colombian firms might be vulnerable to a shift in external conditions. We undertake three empirical exercises to better understand these vulnerabilities. First, we identify the determinants of FC borrowing. Second, we investigate the implications for real activity, finding a balance sheet effect that transmits exchange rate fluctuations to investment and is asymmetric, much stronger for depreciations than for appreciations. Finally, we find that foreign exchange derivatives are not used solely for hedging, due in part to monetary authority intervention to smooth exchange rate volatility. However, a full explanation remains open for future research.
  5. By: Kakwani, Nanak; Neri, Marcelo Cortes; Vaz, Fábio Monteiro
    Abstract: This paper proposes extensions of the idea of shared prosperity and inclusive development. It explores dynamic growth linkages between mean income, inequality and social welfare, on the one hand, and different labor ingredients and income sources, on the other. We propose a new decomposition method that quantifies the contributions to the shared growth patterns observed labor market performance such as unemployment and participation rates, returns to schooling, hourly wages and hours worked.
    Date: 2017–12–21
  6. By: Neri, Marcelo Cortes; Kakwani, Nanak
    Abstract: There are a number of different types of social tensions that can generate social unrest. Starting from standard inequality and poverty concerns to the ones related to temporal fluctuations in living standards including both sistemic and idiosyncratic sources of risk. These social tensions may also include social groups immobility, polarization and middle class related considerations. This paper provides a common methodology to model different sources of social tensions and applies it to the recent Brazilian experience.
    Date: 2017–12–21
  7. By: Caffera, Marcelo; D’Agosti, Natalia
    Abstract: En años recientes, Uruguay ha tenido emisiones netas negativas (captura) de carbono (CO2), lo que deriva en una externalidad positiva para el resto del mundo. El gobierno uruguayo puede usar este hecho como herramienta de negociación en su estrategia de financiamiento de reducciones adicionales de gases de efecto invernadero. Para tales efectos, en el presente trabajo se informa a los encargados de la política nacional de cambio climático sobre el valor económico que las capturas de CO2 realizadas en Uruguay tienen para el resto del mundo, utilizando un sencillo modelo de Evaluación Integrada, ejercicio que no se había realizado en el país.
    Date: 2017–12–21

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