nep-lam New Economics Papers
on Central and South America
Issue of 2022‒06‒20
four papers chosen by
Maximo Rossi
Universidad de la República

  1. Trends of Educational Mobility Across Three Generations in Latin America By Celhay, Pablo A.; Gallegos, Sebastian
  2. Heterogeneous Returns of Informality: Evidence From Brazil By Andrea Otero-Cortés
  3. Immigration, labor markets and discrimination: Evidence from the venezuelan exodus in Perú By Andre Groeger; Gianmarco León-Ciliotta; Steven Stillman
  4. Abortion Legalization in Uruguay: Effects on Adolescent Fertility By Cecilia Velázquez; Wanda Cabella

  1. By: Celhay, Pablo A.; Gallegos, Sebastian
    Abstract: This paper provides new evidence on long term intergenerational mobility in developing countries. We gather data linking schooling outcomes across three generations for six Latin American countries. Our work complements recent evidence going beyond two generations in more mobile, developed nations. Our main findings indicate that (i) the empirical multi-generational persistence is higher than what seminal theoretical models predict, with a much larger upward bias for Latin America than for developed countries; (ii) absolute mobility has increased but relative mobility remains constant over fifty years, and (iii) compulsory schooling laws plausibly contribute to explaining these mobility patterns, because they increased education levels but also reduced the dispersion of schooling. Overall, this paper contributes to our understanding of long run intergenerational mobility with novel evidence for the highly immobile Latin American region, where family background effects tend to be comparatively longer-lasting.
    Keywords: Desarrollo, Educación, Investigación socioeconómica, Políticas públicas, Sector académico,
    Date: 2022
  2. By: Andrea Otero-Cortés
    Abstract: This paper estimates the marginal treatment effect of informality on wages for Brazil at the individual level using regional data on labor inspectors for identification. The results show that there is significant essential heterogeneity among otherwise identical workers that lead them to self-select into the type of jobs, formal or informal, that better reward their skills. The Average Treatment Effect (ATE) is 22%, but not statistically different from zero. But there are individuals with very low non-observed costs of formality that in fact earn premiums of up to 100% of their wage rate from being formal and workers who would be hurt from switching to formality as they experience very high non-observed costs of being formal. Two policy experiments in which we tighten enforcement of the labor law via hiring more labor inspectors increases the likelihood of workers being formal, but it has, on average, a negative effect on wages for the workers who are induced to switch from informality to formality. **** RESUMEN: Este documento estima para Brasil el efecto marginal de la formalidad laboral en los salarios a nivel individual utilizando una combinación de datos regionales sobre inspecciones laborales y actividad económica. Los resultados muestran que existe una heterogeneidad esencial significativa entre trabajadores que son idénticos en sus características observadas, que los lleva a auto-seleccionarse en el tipo de trabajos, formales o informales, que recompensan mejor sus habilidades. El efecto promedio del tratamiento (ATE) es del 22%, pero no es estadísticamente diferente de cero. Sin embargo, hay individuos con costos de formalidad no observados muy bajos que de hecho ganan primas de hasta el 100% de su salario por ser formales y trabajadores que se verían perjudicados por cambiar a la formalidad ya que experimentan costos no observados muy altos de ser formales. Dos experimentos de políticas en los que imponemos una aplicación más estricta de la ley laboral mediante la contratación de más inspectores laborales aumenta la probabilidad de que los trabajadores sean formales, pero tiene, en promedio, un efecto negativo en los salarios de los trabajadores que son inducidos a pasar de la informalidad a la formalidad.
    Keywords: Labor informality, labor regulation, enforcement, marginal treatment effects, Informalidad laboral, regulación laboral, aplicación, efectos marginales de tratamiento
    JEL: H26 J24 J32 J46 K31
    Date: 2022–06–10
  3. By: Andre Groeger; Gianmarco León-Ciliotta; Steven Stillman
    Abstract: Venezuela is currently experiencing the biggest crisis in its recent history. This has led more than 5.6 million Venezuelans to emigrate, one million of those to Peru, which amounted to an increase of over 2 percent in the Peruvian population. Venezuelan immigrants in Peru are relatively similar in cultural terms, but, on average, more skilled than Peruvians. In this paper, we first examine Venezuelans'perceptions about being discriminated against in Peru. Using an instrumental variable strategy, we document a causal relationship between the level of employment in the informal sector - where most immigrants are employed - and reports of discrimination. We then study the impact of Venezuelan migration on local's labor market outcomes, reported crime rates and attitudes using a variety of data sources. We find that inflows of Venezuelans to particular locations led to increased employment and income among locals, decreased reported crime, and improved reported community quality. We conduct a heterogeneity analysis to identify the mechanisms behind these labor market effects and discuss the implications for Peruvian immigration policy.
    Keywords: immigration, forced migration, discrimination, labor markets, Peru, Venezuela
    JEL: F22 J15 O15 R23
    Date: 2022–05
  4. By: Cecilia Velázquez (CEDLAS-IIE-FCE-UNLP and CONICET and CINVE); Wanda Cabella (Facultad de Ciencias Sociales - Universidad de la República del Uruguay)
    Abstract: The Latin America and the Caribbean adolescent fertility rate is among the highest in the world: about 1.7 million children are born to teen mothers every year, and most of them are declared as being unintended pregnancies. The region also has the highest rate of unintended pregnancy of any world region, and nearly half of such pregnancies end in abortion. However, fewer than 18% of the region’s women live in countries where abortion is broadly legal. This paper estimates the causal effect of abortion legalization on adolescent fertility in Uruguay, using official data on legal abortions provided after the 2012 reform. We employed a difference-in-differences strategy, classifying states by whether they are responsive or unresponsive to the reform. The results suggest that abortion reform had a negative impact on the adolescent birth rate by 2.5 to 2.8 births per thousand adolescents aged 15–19 (4% decrease from the preintervention average). Additionally, we exploited variation in reform implementation intensity through the estimation of fixed-effect linear regression models and found consistent results. Our findings are robust to controlling for a concurrent large-scale program of contraceptive implants. We conclude that legislation aimed at enhancing rights and reducing avoidable deaths and complications from unsafe abortions may also have spillover effects that help reduce adolescent fertility.
    JEL: J13
    Date: 2022–06

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