nep-lam New Economics Papers
on Central and South America
Issue of 2022‒02‒07
five papers chosen by
Maximo Rossi
Universidad de la República

  1. Lucky Women in Unlucky Cohorts: Gender Differences in the Effects of Initial Labor Market Conditions in Latin America By Inés Berniell; Leonardo Gasparini; Mariana Marchionni; Mariana Viollaz
  2. A gender story of social disengagement in Latin America By Chia Liu; Andrés F. Castro Torres; Ewa Batyra
  3. Trust and Public Support for the Colombian Peace Agreement By Esmeralda Lopez
  4. Impact of Regulatory Changes on Economic Feasibility of Distributed Generation Solar Units By Gabriel Nasser Doile de Doyle; Paulo Rotella Junior; Luiz Celio Souza Rocha; Priscila Franca Gonzaga Carneiro; Rogério Santana Peruchi; Karel Janda; Giancarlo Aquila
  5. Revealing Corruption: Firm and Worker Level Evidence from Brazil By Emanuele Colonnelli; Spyridon Lagaras; Jacopo Ponticelli; Mounu Prem; Margarita Tsoutsoura

  1. By: Inés Berniell (CEDLAS-IIE-FCE-UNLP); Leonardo Gasparini (CEDLAS-IIE-FCE-UNLP and CONICET); Mariana Marchionni (CEDLAS-IIE-FCE-UNLP and CONICET); Mariana Viollaz (CEDLAS-IIE-FCE-UNLP and IZA)
    Abstract: This paper assesses gender differences in the effects of adverse conditions at labormarket entry in a developing region. Using harmonized microdata from national household surveys for 15 Latin American countries, we build a synthetic panel of cohorts that potentially transition from school to work and observe their labor market outcomes 10 years later. We find that men who faced higher unemployment rates at ages 18-20 suffer a negative effect on employment at ages 27-30. In contrast, women from those same unlucky cohorts have higher employment rates and earnings. Our results are consistent with women acting as secondary workers in downturns. We also find that women from unlucky cohorts control a larger share of family income and are more likely to be the head of household 10 years after labor market entry, and that adverse initial labor market conditions are correlated to more egalitarian perceptions about gender roles later in life.
    JEL: J16 J21 J22 J31
    Date: 2022–02
  2. By: Chia Liu (Max Planck Institute for Demographic Research, Rostock, Germany); Andrés F. Castro Torres (Max Planck Institute for Demographic Research, Rostock, Germany); Ewa Batyra (Max Planck Institute for Demographic Research, Rostock, Germany)
    JEL: J1 Z0
    Date: 2022
  3. By: Esmeralda Lopez (University of North Texas, United States)
    Abstract: The 2016 Colombian peace agreement failed by a narrow margin when put to a public vote, but a month later, the legislature bypassed the need for public support officially ending the 52-year armed conflict between the government and the Revolutionary Armed Forces of Colombia [FARC]. Today, few promises of the agreement have come to fruition, leaving Colombia’s rural population in need and causing some ex-combatants to return to the FARC. While some attributed failure of the peace agreement to low voter turnout, a better understanding of the public’s lack of support for the peace agreement is needed. This study uses logistic regression to analyze 2016 survey data from the Latin American Public Opinion Project to examine how institutional trust correlates with predicting support for the Colombian peace agreement. Variables such as public opinion regarding trust in government institutions (the legislature, executive, judiciary, and elections) and trust in the FARC, including a belief that the FARC will demobilize, are included within the study. The model supports the hypothesis that greater trust in institutions increases the probability that the respondent will support the peace agreement. Five of the six variables are statistically significant, and the trust in the national legislature variable is approaching significance. Future studies related to this topic should include greater analysis of Colombia’s rural population who was most affected by forced displacement and other forms of violence during the conflict.
    Keywords: Colombia, armed conflict, peace agreement, public opinion, trust
    Date: 2021–08
  4. By: Gabriel Nasser Doile de Doyle (Renewable Energy Graduate Program, Federal University of Paraiba, Brazil & Electric Engineer PhD Program, Federal University of Itajuba, Brazil); Paulo Rotella Junior (Department of Production Engineering, Federal University of Paraiba, Brazil & Department of Management, Federal Institute of Education, Science and Technology - North of Minas Gerais, Brazil & Faculty of Finance and Accounting, Prague University of Economics and Business, Czech Republic & Faculty of Social Sciences, Charles University, Czech Republic); Luiz Celio Souza Rocha (Department of Management, Federal Institute of Education, Science and Technology - North of Minas Gerais, Brazil); Priscila Franca Gonzaga Carneiro (Renewable Energy Graduate Program, Federal University of Paraiba, Brazil); Rogério Santana Peruchi (Department of Production Engineering, Federal University of Paraiba, Brazil); Karel Janda (Faculty of Finance and Accounting, Prague University of Economics and Business, Czech Republic & Faculty of Social Sciences, Charles University, Czech Republic); Giancarlo Aquila (IEPG, Federal University of Itajuba, Brazil)
    Abstract: The Brazilian National Electrical Agency (ANEEL) proposed in 2019 that the costs for accessing the electricity grid should be shared among all consumers. This would do away with cross-subsidies where normal consumers without installed solar distributed generation (DG) units effectively cover the costs of access to the grid for consumers with DG units. We compared the viability of two scenarios, one before and the other after the proposed changes, to understand how this legislature will affect the viability of DG projects in Brazil. We did this by studying all 5 regions covering the whole Brazilian area by analyzing data on average solar radiation, demand, and energy prices. We conducted stochastic analysis by varying the investment costs, demand, and energy prices, for DG solar plants. Lastly, we conducted scholastic analysis for the national scenario by varying the Discount Rate (DR). We confirmed that there is a statically significant reduction in economic viability for DG solar units in Brazil if the proposed legislation were to be enacted, while the payback period and other financial indicators differ across regions. We confirmed that solar radiation is not the only decisive factor in determination of economic viability of DG solar production.
    Keywords: Distributed Generation, Regulation Policy, Cross-subsidies, Micro-Power Plants, Economic Feasibility Analysis, Solar Photovoltaic Energy
    JEL: Q41 Q48
    Date: 2022–02
  5. By: Emanuele Colonnelli; Spyridon Lagaras; Jacopo Ponticelli; Mounu Prem; Margarita Tsoutsoura
    Abstract: We study how the disclosure of corrupt practices affects the growth of firms involved in illegal interactions with the government using randomized audits of public procurement in Brazil. On average, firms exposed by the anti-corruption program grow larger after the audits, despite experiencing a decrease in procurement contracts. We manually collect new data on the details of thousands of corruption cases, through which we uncover a large heterogeneity in our firm-level effects depending on the degree of involvement in corruption cases. Using investment-, loan-, and worker- level data, we show that the average exposed firms adapt to the loss of government contracts by changing their investment strategy. They increase capital investment and borrow more to finance such investment, while there is no change in their internal organization. We provide qualitative support to our results by conducting new face-to-face surveys with business owners of government-dependent firms.
    JEL: D73 G30 H57 O10
    Date: 2022–01

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