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on Central and South America |
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Issue of 2023‒03‒06
seven papers chosen by |
| By: | Martín Leites (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Xavier Ramos (Universitat Autònoma de Barcelona); Cecilia Rodríguez (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Vilá Joan (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía) |
| Abstract: | In this paper, we provide novel estimates of intergenerational mobility for Uruguay that for the first time in a developing country, are based on administrative tax-social security records. We estimate the Intergenerational Ranking Association (IRA) and explore non-linearities. We explore alternatives to address the role of informal labour market, which is one of the main challenges to obtain precise measure of intergenerational mobility for a developing country. We have three main results: first, the level of persistence is higher when we consider individuals with less attachment to the formal labour market. Second, we find evidence of non-linearities in the degree of intergenerational persistence, being substantially higher for high-income households. Finally, there is heterogeneity by gender on the degree of intergenerational mobility, with mother-daughter transmission being the most persistent. |
| Keywords: | intergenerational income mobility, inequality, top incomes, non-linearities, formal labour market |
| JEL: | D31 J62 E26 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:ulr:wpaper:dt-05-22&r=lam |
| By: | Pietrobelli, Carlo; Seri, Cecilia (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn) |
| Abstract: | This paper discusses the concepts of reshoring and nearshoring that are gaining increasing popularity. We contribute to the literature in three main ways. First, building on previous theories we define a theoretical framework and consider how recent developments – COVID-19 and Industry 4.0 technologies – may impact on these patterns. Secondly, we process some preliminary evidence to test whether Latin American and Caribbean economies are indeed participating in this reshoring trend. Thirdly, we propose a measure of “Reshoring Readiness”, to assess whether Latin American countries appear to be ready to host relocations and benefit from them. Overall, we find limited evidence of nearshoring to the region so far, except for Mexico, and we highlight strengths and weaknesses of the region for attracting and benefitting from future relocations. |
| JEL: | F21 F23 L24 O16 |
| Date: | 2023–01–16 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2023003&r=lam |
| By: | Martín Leites (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Camila Paleo (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Xavier Ramos (Universitat Autònoma de Barcelona); Gonzalo Salas (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía) |
| Abstract: | Do individuals choose their reference groups, i.e. their Joneses, or are they culturally transmitted across generations? We provide evidence that feeds the theoretical debate about the endogeneity or exogeneity of reference groups. Our findings for Uruguay suggest that reference groups are largely transmitted across generations. We also find individuals to have multiple reference groups and these to be context-specific. Our results are robust to several checks and endogeneity issues. |
| Keywords: | intergenerational transmission, reference group, income comparisons |
| JEL: | D31 D62 D63 Z13 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:ulr:wpaper:dt-04-22&r=lam |
| By: | Nicolas Pazos (University of Nottingham); Marta Favara (University of Oxford); Alan Sánchez (Grupo de Análisis para el Desarrollo (GRADE)); Douglas Scott (University of Oxford); Jere Behrman (University of Pennsylvania) |
| Abstract: | Global warming is changing precipitation patterns, harming communities strongly tied to agricultural production, particularly in low-and-middle income countries (LMICs). Whilst the long-term effects of being exposed to rainfall shocks early in life on school achievement tests are well-established, there is little population-based evidence from LMICs on the mechanisms through which these shocks operate. This paper analyses the effects of early exposure to rainfall shocks on four foundational cognitive skills (FCSs), including executive functions (EF) that have been found to be key predictors of educational success. These skills were measured via a series of tablet-based tasks administered in Peru as part of the Young Lives longitudinal study (YLS). We combine the YLS data with gridded data on monthly precipitation to generate monthly, community-level rainfall estimates. The key identification strategy relies on temporary climatic shocks being uncorrelated with other latent determinants of FCS development. Our results show significant negative effects of early life exposure to rainfall shocks on EF. We also find evidence of rainfall shocks decreasing households’ abilities to invest in human capital, which may affect both FCS and domain-specific test scores. Interestingly, social policies providing affected households with additional resources partially offset the effects of the rainfall shocks. |
| Keywords: | Skills formation, Human capital, Rainfall, Peru, Early childhood |
| JEL: | J24 Q54 I24 I14 |
| Date: | 2022–02–08 |
| URL: | http://d.repec.org/n?u=RePEc:pen:papers:23-001&r=lam |
| By: | Verónica Amarante (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Marisa Bucheli (Universidad de la República (Uruguay). Facultad de Ciencias Sociales); Cecilia Lara (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía) |
| Abstract: | This article considers the level of consensus among Uruguayan economists regarding a set of economic propositions. Based on an online survey and using a Likert scale, we ask for the level of agreement with 39 economic propositions. Our results indicate that strong and substantial consensus is lower among Uruguayan economists than among their colleagues in other countries. Higher levels of agreement correspond to propositions related to discrimination and, to a lesser extent, environmental issues. The will of improving income equality and the importance of the State to achieve it generate consensus. However, there is no consensus about redistributive tools. Based on clustering on multiple correspondence analysis, we distinguish two differentiated groups according to their support for different economic propositions. The probability of belonging to either of these groups is strongly associated with ideological identification. |
| Keywords: | economists, consensus, opinions |
| JEL: | A11 A14 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:ulr:wpaper:dt-09-22&r=lam |
| By: | Mauricio De Rosa (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía) |
| Abstract: | While wealth accumulation and its distribution are arguably two of the key drivers of overall economic inequality and of major importance in their own right, very little is known about them in the developing world. I contribute to filling this gap by providing micro-macro consistent series of aggregate wealth and its distribution in Uruguay. The country's balance sheet, which is not estimated by official institutions, is constructed for the first time by combining a wide array of data sources, reaching a wealth to income ratio of 500%. Private wealth distribution is then estimated based on the capitalization method, taking stock of combined survey-tax-national accounts micro-data, resulting in a top 1% of 38-40%. Estimates are systematically compared with results based on the estate multiplier method, real estate wealth tax, household wealth survey and Forbes billionaires list. Moreover, the inheritance flow is estimated, reaching 9-10% throughout the period, consistent with a 60% inheritance stock. These estimates represent the first coherent and comparable depiction of wealth and its distribution for a Latin American country, hence providing insights to a completely unknown reality thus-far. |
| Keywords: | wealth distribution, wealth to income ratios, capitalization method, tax records, national accounts, developing countries, Uruguay |
| JEL: | D31 E01 E22 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:ulr:wpaper:dt-07-22&r=lam |
| By: | Mariana Fernández Soto (Universidad de la República (Uruguay). Facultad de Ciencias Sociales); Estefanía Galván (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Sofía Robaina (Universidad de la República (Uruguay). Comisión Sectorial de Investigación Científica); Victoria Tenenbaum (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Cecilia Tomassini (Universidad de la República (Uruguay). Comisión Sectorial de Investigación Científica) |
| Abstract: | Despite progress in the participation of women in science, there are still gender gaps in the advancement and consolidation of their academic careers. The international literature points out the relevance of studying how gender roles, especially those derived from care responsibilities, affect men and women differently at different stages of academic careers. This document includes the first results of the project "The link between motherhood and fatherhood and gender inequalities in the academic trajectories", which has the objective of studying the influence of motherhood and fatherhood in the construction of academic trajectories of male and female researchers in Uruguay. The analysis focuses on three dimensions: 1) postgraduate training trajectories, 2) progress on the academic stratification scales, and 3) academic production. The data source used is the CVUy - managed by the National Agency for Research and Innovation (ANII - Uruguay), which allowed the construction of a longitudinal database that combines demographic and academic information, and is complemented by a primary source of information. The results show gender inequalities in the three dimensions explored. Most of these inequalities are non-existent at the beginning of the academic activity and are generated and amplified throughout the life cycle. The evidence presented suggests that motherhood plays a relevant role in widening gender gaps in academia. |
| Keywords: | gender inequalities, academic science, maternity-paternity |
| JEL: | J13 I23 J16 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:ulr:wpaper:dt-06-22&r=lam |