nep-lam New Economics Papers
on Central and South America
Issue of 2022‒07‒18
six papers chosen by

  1. Costs and Benefits of Trade Shocks: Evidence from Chilean Local Labor Markets By Andrés César; Guillermo Falcone; Leonardo Gasparini
  2. Covid-19 pandemic in Brazil: Macroeconomic effects and policies By de Conti, Bruno
  3. Who attract the public sector compensation schemes?: evidence from Latin America By à lvarez-Parra, Fernando; Brassiolo, Pablo; Fajardo, Gustavo
  4. The Effects of Public Housing on Children: Evidence from Colombia By Adriana Camacho; Valentina Duque; Michael Gilraine; Fabio Sanchez
  5. Female Political Representation and Violence against Women: Evidence from Brazil By Delaporte, Magdalena; Pino, Francisco J.
  6. La Escolarización y las Ganancias de Aprendizaje según el Nivel de Integración Socioeconómica de los Estudiantes By Emmanuel Vazquez

  1. By: Andrés César (CEDLAS-IIE-FCE-UNLP & CONICET); Guillermo Falcone (CEDLAS-IIE-FCE-UNLP & CONICET); Leonardo Gasparini (CEDLAS-IIE-FCE-UNLP & CONICET)
    Abstract: We study Chile’s labor market responses to trade shocks during 1996-2006, exploiting spatial and time variations in trade exposure arising from initial differences in industry specialization across local labor markets and the evolution of shocks across industries. We take advantage of China’s supply and demand’s worldwide shocks to instrument for Chinese import competition and demand for Chilean exports. Our main finding is that increasing manufacturing import competition implied a significant rise in labor informality in more exposed local markets, especially among young and unskilled workers. These groups also suffered significant relative wage losses. Meanwhile, locations that benefited most from the increased demand for primary products experienced a relative increase in employment, particularly among young individuals, and reallocation from self-employment towards salaried jobs in the formal sector, along with relative wage gains among old-age workers. Interestingly, these areas experienced a smaller increase in tertiary education enrollment rates than less exposed areas.
    JEL: F14 F16 J23 J31 L60 O17 Q02 R12 R23
    Date: 2022–07
  2. By: de Conti, Bruno
    Abstract: The Covid-19 pandemic has had unequal effects around the world, not simply in terms of health prospects, but also in terms of economic and social consequences. In all these aspects, Brazil is among the most affected countries. This article aims to analyze the economic and social effects of the Covid-19 pandemic in Brazil, as well as the main macroeconomic policies that were implemented to face the crises. To understand it properly, we take into consideration three elements: i) the structural characteristics of the Brazilian economy; ii) the economic situation in Brazil when the pandemic broke out; iii) the inefficiencies and the negligence of Bolsonaro's government. The article argues that in the public health dimension, the denialist attitude of the president resulted in a lack of national policies for social distancing and a clear mismanagement of the vaccination process which contributed to the seriousness of the crisis. As for the economic and social dimensions, the national government - after some hesitation and under the pressure of the National Congress - implemented a set of policies which have irrefutably served as a cushion for the harms of the pandemic. Nonetheless, it is crucial to underline that these policies have been insufficient to cope with the concrete urgencies of more vulnerable populations in Brazil. The intermittence and the short-termism of the fiscal programs associated with the gradual (and untimely) reduction in the benefited population and in the amounts of the transfers limited the effectiveness of the policies.
    Keywords: COVID-19 pandemic,Brazil,macroeconomic policies,social policies,socioeconomic vulnerability
    JEL: E65 F62 I18
    Date: 2022
  3. By: Ã lvarez-Parra, Fernando; Brassiolo, Pablo; Fajardo, Gustavo
    Abstract: Compensation schemes tend to differ markedly between public and private sector jobs, which can affect the relative preferences of potential employees towards those jobs. We explore this through two informational experiments embedded within a large household survey in ten Latin American cities. We focus on two of the most relevant features of compensation schemes: the wage level and the existence of pay-for-performance. We find that the common characteristics of public sector contracts—i.e. flat wages, a negative wage gap with respect to the private sector in the upper end of the distribution, and a low prevalence of payfor- performance rules—diminishes the attractiveness of public employment among high-performing, high-ability individuals.
    Keywords: Desarrollo, Economía, Investigación socioeconómica, Políticas públicas, Sector privado, Sector público,
    Date: 2021
  4. By: Adriana Camacho; Valentina Duque; Michael Gilraine; Fabio Sanchez
    Abstract: We analyze the effect of Colombia's ambitious "Free Housing" program on children's educational outcomes. The program was generous, giving free housing to beneficiaries in desirable areas. We evaluate the program by leveraging housing lotteries and linking applicants to their children. We find that public housing increases high school graduation by seven percentage points – a seventeen percent increase relative to the control mean – and boosts exit exam scores and college-going. Using a survey to explore mechanisms, lottery winners report better environmental conditions and shorter commute times. Their children also attend better schools and live in neighborhoods with less crime.
    JEL: I24 I38 O18
    Date: 2022–05
  5. By: Delaporte, Magdalena (Pontificia Universidad Catolica de Chile); Pino, Francisco J. (University of Chile)
    Abstract: This paper studies the effect of female political representation on violence against women. Using a Regression Discontinuity design for close mayoral elections between female and male candidates in Brazil, we find that electing female mayors leads to a reduction in episodes of gender violence. The effect is particularly strong when focusing on incidents of domestic violence, when the aggressor is the ex-husband/boyfriend, and when victims experienced sexual violence. The evidence suggests that female mayors might implement different policies from male mayors and therefore contribute to reduce gender violence.
    Keywords: gender, political economy, elections, violence
    JEL: D72 J16 P16 I18 H75 K42
    Date: 2022–06
  6. By: Emmanuel Vazquez (CEDLAS-IIE-FCE-UNLP)
    Abstract: Este trabajo estudia el efecto de la escolaridad sobre los aprendizajes en América Latina según el nivel de integración socioeconómica de los alumnos. Utilizando datos de las distintas ediciones de PISA para 5 países de la región (Argentina, Brasil, Chile, Costa Rica y Uruguay), el trabajo explota la variación exógena en la fecha de nacimiento de los estudiantes alrededor de la fecha de corte para el ingreso a la escuela utilizando un diseño de regresión discontinua difuso. Los resultados indican que, si bien el efecto promedio de un año de escolaridad en América Latina se sitúa alrededor de los 30 puntos en la escala de PISA (0.30 desvíos estándar), difiere sustancialmente de acuerdo con el nivel de integración socioeconómica del alumnado. Así, mientras la ganancia de aprendizaje derivada de asistir a un año escolar superior para los alumnos integrados se encuentra alrededor de los 40 puntos PISA, los alumnos segregados obtienen una mejora en su aprendizaje en matemática cercana a los 20 puntos. El mayor aprendizaje que logran los estudiantes integrados con la escolaridad se da tanto para alumnos integrados con pares más ricos como para aquellos que se encuentran integrados con compañeros más pobres, proviniendo esta ganancia de los alumnos más rezagados en su aprendizaje, que son quienes más se benefician de la escolaridad al estar integrados.
    JEL: I24 J24
    Date: 2022–06

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