nep-lam New Economics Papers
on Central and South America
Issue of 2019‒04‒29
two papers chosen by

  1. Female Labor Force Participation, Labor Market Dynamic and Growth in LAC By Bustelo, Monserrat; Flabbi, Luca; Piras, Claudia; Tejada, Mauricio
  2. Intergenerational Mobility: An Assessment for Latin American Countries By Doruk, Ömer Tuğsal; Yavuz, Hasan Bilgehan; Pastore, Francesco

  1. By: Bustelo, Monserrat; Flabbi, Luca; Piras, Claudia; Tejada, Mauricio
    Abstract: The labor force participation of women is lower than the labor force participation of men. This empirical regularity is particularly acute in Latin America and the Caribbean (LAC). In terms of labor market productivity and growth potential, these lower participation rates constitute a reserve of untapped resources. Providing an estimate of the impact that increased female participation in the labor force has on labor market outcomes and GDP is therefore crucial but challenging. Two issues are of importance: sample selection and equilibrium effects. We develop a labor market model that is able to address these issues. We estimate the model on the microdata of five LAC countries. We find that both a childcare policy and a policy increasing women’s productivity generate a positive impact on female participation and significant increases in GDP per capita. Our results suggest that relatively modest policies that are able to increase the participation of women in the labor market can provide a significant increase in GDP. However, we are not able to take into account the fiscal costs necessary to implement the policies or the possible negative externalities on household production.
    Date: 2019–02
  2. By: Doruk, Ömer Tuğsal; Yavuz, Hasan Bilgehan; Pastore, Francesco
    Abstract: This paper aims to study the process of intergenerational income mobility in some Latin American economies (Panama and Brazil), which have been much neglected in the existing literature. Like other countries in the area, also Brazil and Panama have a stagnant economy coupled with high income inequality. Our rich and detailed dataset, the IPUMS survey data bank allows us to provide the most reliable and robust estimates of intergenerational transfer, after controlling for a number of additional control variables which were unavailable in previous studies, such as family size, literacy level of fathers, and location in rural versus urban areas. We provide estimates broken down for different genders, age, location, education of fathers in each country. Our results are robust to different specifications and suggest that previous studies significantly overrated the extent of the intergenerational transfer in the countries considered. However, our figures are still compatible with an extremely low degree of social mobility.
    Keywords: Intergenerational mobility,Occupational mobility,Latin American Economies
    JEL: J62 J60 D3 D6
    Date: 2019

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