nep-lam New Economics Papers
on Central and South America
Issue of 2018‒02‒26
three papers chosen by

  1. La flexibilización de las condiciones de acceso a las jubilaciones en el Uruguay By Lavalleja, Martín; Rossi, Ianina; Tenenbaum, Victoria
  2. Financial spillovers of international monetary policy: Six hypotheses on the Latin American case, 2010-2016 By Eijffinger, Sylvester C W; Malagon, Jonathan
  3. Firms and the Decline in Earnings Inequality in Brazil By Jorge Alvarez; Felipe Benguria; Niklas Engbom; Christian Moser

  1. By: Lavalleja, Martín; Rossi, Ianina; Tenenbaum, Victoria
    Abstract: La ley que flexibiliza las condiciones de acceso a las jubilaciones (Ley 18.395) plantea varios cambios importantes en un contexto donde los estudios señalaban la baja proporción de trabajadores que lograría jubilarse. El presente estudio, en base a una muestra de historias laborales del Banco de Previsión Social (BPS), analiza quiénes lograrían acceder a la jubilación en el futuro dado esos cambios, cuantificando la proporción de trabajadores que logrará acceder a las distintas causales jubilatorias.
    Date: 2018–01–31
  2. By: Eijffinger, Sylvester C W; Malagon, Jonathan
    Abstract: This paper aims to determine if there is a differential incidence between conventional and unconventional monetary policy of developed economies in Latin American financial markets, evaluating six hypotheses that can be extracted from the economic literature. Financial spillovers are considered on two dimensions: financial asset prices (fixed income and equity markets) and interest rates (monetary policy rate and loans rates). The main finding is that both conventional and unconventional monetary policies in US and Eurozone have a significant and direct incidence on Latin American fixed income markets, although the effect of unconventional monetary policy is low. In contrast, only unconventional monetary policy has a significant effect on Latin American equity markets. On the other hand, regardless of the exchange rate pass-through of Latin American economies, the conventional monetary policy of the United States and Eurozone has a low but significant incidence on both monetary policy rates and lending interest rates in Latin America, while the unconventional monetary policies have no incidence. As anticipated, US conventional and unconventional monetary policy have a higher incidence on Latin American financial markets with respect to the monetary policy decisions in Eurozone and Japan. Finally, free trade agreements between developed economies and Latin American economies do not have a significant impact on the relationship between international monetary policy and Latin American financial markets.
    Keywords: central banking; financial asset prices; financial globalization; Financial spillovers; Latin America; monetary policy
    JEL: E40 E43 E50 E52 E58
    Date: 2018–02
  3. By: Jorge Alvarez; Felipe Benguria; Niklas Engbom; Christian Moser
    Abstract: We document a large decrease in earnings inequality in Brazil between 1996 and 2012. Using administrative linked employer-employee data, we fit high-dimensional worker and firm fixed effects models to understand the sources of this decrease. Firm effects account for 40 percent of the total decrease and worker effects for 29 percent. Changes in observable worker and firm characteristics contributed little to these trends. Instead, the decrease is primarily due to a compression of returns to these characteristics, particularly a declining firm productivity pay premium. Our results shed light on potential drivers of earnings inequality dynamics.
    Keywords: Brazil;Western Hemisphere;Earnings Inequality, Linked Employer-Employee Data, Firm and Worker Heterogeneity, Productivity, Firm Behavior: Empirical Analysis
    Date: 2017–12–14

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.