nep-lam New Economics Papers
on Central and South America
Issue of 2021‒08‒16
four papers chosen by

  1. Poverty in Latin America By Leonardo Gasparini; María Emma Santos; Leopoldo Tornarolli
  2. The Natural Resource Boom and the Uneven Fall of the Labor Share By Dávila, Andrés O.; Fernandez Sierra, Manuel; Zuleta, Hernando
  3. Firm Sorting, College Major, and the Gender Earnings Gap By Federico Huneeus; Conrad Miller; Christopher Neilson; Seth Zimmerman
  4. How important are abstainers in presidential elections? A comparative analysis between Africa and Latin America By Henning, Christian H. C. A.; Diaz, Daniel; Lendewig, Andrea; Petri, Svetlana

  1. By: Leonardo Gasparini (CEDLAS-IIE-FCE-UNLP and CONICET); María Emma Santos (IIESS-Departamento de Economía-Universidad Nacional del Sur and CONICET.); Leopoldo Tornarolli (CEDLAS-IIE-FCE-UNLP)
    Abstract: This chapter discusses the measurement of monetary and multidimensional poverty in Latin America, and documents the main patterns and trends. By providing an updated assessment of the level, changes and characteristics of poverty in the region we expect to contribute to the more ambitious debate on its determinants and policy implications.
    JEL: I3 I32
    Date: 2021–08
  2. By: Dávila, Andrés O. (Universidad de los Andes); Fernandez Sierra, Manuel (Universidad de los Andes); Zuleta, Hernando (Universidad de los Andes)
    Abstract: We study the effect of the upsurge of natural resources income from the commodity price boom of the 2000s on the functional distribution of income. To do so, we build a general equilibrium model of Dutch disease that characterizes how natural resource windfalls affect equilibrium factor shares. The theory suggests that the response of factor shares to exogenous changes in commodity prices depends on the relative intensity in which factors are used in the tradable and natural resource sectors. We construct estimates of income shares accruing to raw labor, human capital, physical capital, and natural resources, and quantify the effect of the resource boom on factor shares. For identification, we use a two-way fixed effects strategy and a differential exposure design to instrument commodity prices. We find that a natural resource boom negatively impacts the total labor, human capital, and physical capital shares, while the raw labor share remains unchanged. Our estimates suggest that the natural resource boom explains nearly 25.7 percent of the global decline of the total labor share during the 2000s. We also find a redistribution effect within labor income that indicates that the fall of the labor share was unevenly distributed against human capital.
    Keywords: labor share, factor income shares, natural resource boom, commodity price boom, dutch disease, human capital
    JEL: D33 F14 J31 O13
    Date: 2021–07
  3. By: Federico Huneeus; Conrad Miller; Christopher Neilson; Seth Zimmerman
    Abstract: A growing body of evidence shows that differences in firm-specific pay premiums account for a large share of the gender pay gap. This paper asks how a common form of pre-labor market skill specialization, college major, mediates access to high-paying firms, and what this means for the gender earnings gap. Using employer-employee tax data from Chile matched to educational records, we show that differences in college major account for more than two-thirds of the firm contribution to the gender earnings gap among college admits. Degrees in Technology, which are numerous, male-dominated, and associated with high firm premiums, drive these effects.
    Date: 2021–06
  4. By: Henning, Christian H. C. A.; Diaz, Daniel; Lendewig, Andrea; Petri, Svetlana
    Abstract: Even in countries with well functioning democracies, not all people with the right to vote in a presidential election decide to cast a vote. In order to study the importance of abstention in presidential elections in Africa and Latin America, data from Senegal and Honduras was analyzed. These countries have experienced a decline in the voter turnout over the past elections, which means that the party systems are somehow failing to engage voters in recent years. The purpose of this paper is to understand how people choose a certain party or candidate, as well as, how they decide to either vote or abstain. Moreover, we are looking to determine whether non-voters could motivate the governments to design and implement efficient policies. To achieve this, we estimated nested multinomial logit models including the alternative Abstention. Then, to evaluate government performance, we derived indicators for accountability and capture. Also, to determine the optimal policy positions for the governmental parties, First Order Condition (FOC) and Second Order Condition (SOC) were estimated for different issues.
    Keywords: probabilistic voter model,capture,accountability,agricultural policy,Africa,Latin America
    JEL: Q18 C31 C35 C38
    Date: 2020

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