nep-lam New Economics Papers
on Central and South America
Issue of 2019‒03‒25
three papers chosen by

  1. Which Tail Matters? Inequality and Growth in Brazil By Stephan Litschig; Maria Lombardi
  2. Towards Green Growth in Emerging Market Economies: Evidence from Environmental Performance Reviews By Ivana Capozza; Rachel Samson
  3. Impact of In-Kind Social Transfer Programs on the Labor Supply: A Gender Perspective By Luis Garcia; Erika Collantes

  1. By: Stephan Litschig (National Graduate Institute for Policy Studies, Tokyo, Japan); Maria Lombardi (Universidad Torcuato Di Tella)
    Abstract: We estimate the effect of initial income inequality on subsequent income per capita growth using sub-national data from Brazil over the period 1970-2000. Holding initial income per capita and standard confounders constant, we find that sub-national units with a higher share of income going to the middle quintile at the expense of the bottom quintile grow more rapidly, while places with a higher share of income going to the top quintile at the expense of the middle quintile get no growth boost at all. We document that both physical and human capital accumulation in places with higher inequality in the lower tail of the initial income distribution outpace capital accumulation in more equal places, while inequality in the upper tail of the distribution is uncorrelated with subsequent physical or human capital growth. These results are consistent with theories on credit constraints and setup costs for human and physical capital investments.
    Date: 2019–03
  2. By: Ivana Capozza (OECD); Rachel Samson (Carist Consulting)
    Abstract: This paper provides a cross-country review of progress towards green growth in selected emerging market economies that are members or partners of the OECD. It draws on the country studies conducted within the OECD Environmental Performance Review Programme for Brazil, Chile, Colombia, Indonesia, Mexico, Peru, South Africa and Turkey between 2013 and 2019. It presents the main achievements in the countries reviewed, along with common trends and policy challenges. It provides insights into the effectiveness and efficiency of green growth policy frameworks and measures, which may provide useful lessons for other OECD and partner countries.
    Keywords: clean technology, environment and development, environmental policy, environmental taxes and subsidies, green growth, infrastructure, natural resources
    JEL: O13 O44 Q55 Q56 Q58
    Date: 2019–03–15
  3. By: Luis Garcia (Departamento de Economía de la Pontificia Universidad Católica del Perú); Erika Collantes
    Abstract: In recent years, Peru has expanded its social programs aimed at combating poverty, with new initiatives including the Cuna Más childcare program and the Qali Warma school meals program. The goal of this paper is to determine whether these social programs have made any impact on the working hours of men and women belonging to the beneficiary households. According to time-allocation approaches and gender-based household roles, a different impact on each of these two groups might be expected. In econometric terms, it is well known that hours worked are the result of a sample selection process that could bias ordinary least square estimations, and even (within- group) fixed effect estimations, which control for unobserved heterogeneity bias but not selection bias. We use Kyriazidou’s (1997) method to estimate a model of determinants of hours worked, and find gender-differentiated impacts; the Qali Warma breakfast program fosters female labor supply among those aged below 25 and above 40, while Cuna Más does so only for those below the age of 25. In the case of men, the Qali Warma breakfast program also seems to increase hours worked (albeit to a lesser extent than for women), while the school lunches version of the same program reduces hours worked, especially for men over the age of 40. JEL Classification-JEL: I38, J13, J16, J22
    Keywords: Food programs, daycare programs, labor supply, selection bias.
    Date: 2018

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