nep-lam New Economics Papers
on Central and South America
Issue of 2018‒12‒17
three papers chosen by
Maximo Rossi
Universidad de la República

  1. Educational Upgrading and Returns to Skills in Latin America: Evidence from a Supply-Demand Framework, 1990-2010 By Leonardo Gasparini; Sebastián Galiani; Guillermo Cruces; Pablo Acosta
  2. Inequalities in emerging economies: Informing the policy dialogue on inclusive growth By Carlotta Balestra; Ana Llena-Nozal; Fabrice Murtin; Elena Tosetto; Benoît Arnaud
  3. The agriculture TFP growth and labor allocation in the Brazilian economy By Spolador, H.; Roe, T.

  1. By: Leonardo Gasparini (CEDLAS-FCE-UNLP & CONICET); Sebastián Galiani (University of Maryland); Guillermo Cruces (CEDLAS-FCE-UNLP & CONICET & IZA); Pablo Acosta (World Bank)
    Abstract: This paper documents the evolution of wage differentials and the supply of workers by educational level for sixteen Latin American countries over the period 1991- 2013. We find a pattern of rather constant rise in the relative supply of skilled and semiskilled workers over the period. Whereas the returns to secondary education fell over time, in contrast, the returns to tertiary education display a remarkable changing pattern common to almost all economies: significant increase in the 1990s, strong fall in the 2000s and a deceleration of that fall in the 2010s. We conclude that supply-side factors seem to have limited explanatory power relative to demand-side factors in accounting for changes in the wage gap between workers with tertiary education and the rest.
    Date: 2018–12
  2. By: Carlotta Balestra (OECD); Ana Llena-Nozal (OECD); Fabrice Murtin (OECD); Elena Tosetto (OECD); Benoît Arnaud (OECD)
    Abstract: The paper describes inequality trends in selected emerging economies (Brazil, Colombia, Costa Rica, China, India, Indonesia and South Africa) in a range of monetary (i.e. income) and non-monetary dimensions of people’s life (i.e. education, health status, employment and subjective well-being). Inequalities are analysed not only in terms of overall dispersion, but also as gaps between population groups defined by specific characteristics (i.e. sex, age, educational attainment and place of living). To the extent made possible by the nature of available data, measures of income inequality for these emerging countries, as well as for 7 Latin American countries (Bolivia, Dominic Republic, Ecuador, Panama, Paraguay, Peru and Uruguay), are based on concepts and definitions similar to those used by the OECD for its member countries. All the emerging economies covered in the paper show levels of income inequality higher than in the five most unequal OECD countries, while the picture is more mixed when it comes to inequalities in other dimensions of people’s well-being. An annex complements the analysis by presenting an assessment of the quality of the available data on income distribution for the emerging countries covered in the paper.
    Keywords: database, emerging economies, inequality, poverty, well-being
    JEL: D31 D63 I14 I24 I32 J01
    Date: 2018–12–13
  3. By: Spolador, H.; Roe, T.
    Abstract: This paper analyzes the main forces related to the declining agricultural employment in the Brazilian economy, and its contribution to country s economic growth for the period 1970-2015. We employ a novel three sector growth accounting exercise, and a multisector growth model to estimate the various economic forces that serve to pull and push labor out of agriculture. Our results supports the conclusion that agriculture, whose rate of TFP growth tends to dominate that of the industrial and service sector, has had two roles on recent economic growth: the first is associated to TFP growth, and second is the labor transference to other sectors, and more specifically to the service sector. We also find evidence of sectoral TFP correlation suggesting technological spill over between sectors. Acknowledgement :
    Keywords: Labor and Human Capital
    Date: 2018–07

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