nep-lam New Economics Papers
on Central and South America
Issue of 2023‒07‒24
five papers chosen by

  1. The Increasing Impact of Spain on the Equity Markets of Brazil, Chile and Mexico By Andres Rivas; Rahul Verma; Antonio Rodriguez; Pedro H. Albuquerque
  2. Bridging the Gap: Mismatch Effects and Catch-up Dynamics in a Brazilian College Affirmative Action By Oliveira, Rodrigo; Santos, Alei; Severnini, Edson R.
  3. Come Out and Play: Public Space Recovery, Social Capital, and Citizen Security By Braun, Matías; Gallego, Francisco; Soares, Rodrigo R.
  4. Mejorando la empleabilidad de mujeres urbanas vulnerables en tiempos de pandemia en el Perú: evaluación experimental del componente de capacitación virtual en un programa de empleo tempora By Alcázar, Lorena; Huerta, Shirley
  5. Intergeneration Human Capital Transmission and Poverty Traps By Carmen Camacho; Fernanda Estevan

  1. By: Andres Rivas (Primerica); Rahul Verma (University of Houston); Antonio Rodriguez (Texas A&M International University [Laredo]); Pedro H. Albuquerque (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique, ACCELERATION & ADAPTATION)
    Abstract: The article examines stock index price responses in Brazil, Chile and Mexico to those in the US, Spain and four European countries during three sub-periods surrounding the neoliberal reforms of the 1990s: 1988 to 1994, 1995 to 1998, and 1999 to 2004, using VAR modeling. It finds that equity markets became more interconnected as countries opened to international trade and capital flows, and that there was an increasing impact of Spain on Latin American equity markets. Stronger economic linkages (more trade and foreign direct investment) between Spain and these countries, specially in Brazil, seem to explain increased equity markets interconnectedness.
    Keywords: Emerging markets, Latin America, Spain, Stock markets interdependence, VAR modeling
    Date: 2023–04
  2. By: Oliveira, Rodrigo (UNU-WIDER); Santos, Alei (Sao Paulo School of Economics); Severnini, Edson R. (Carnegie Mellon University)
    Abstract: Affirmative action in higher education can lead to mismatch, where students admitted through preferential treatment struggle academically due to inadequate preparation before college. Although some students may face initial challenges, by providing access to quality education for talented individuals who might have otherwise been overlooked due to systemic disadvantages, these programs may enable students to bridge the gap and catch up to their peers. In this study, we examine the effects of a quota-type affirmative action policy on gaps in college outcomes between potential beneficiaries and non-beneficiaries. Using comprehensive administrative data from a leading Brazilian university which implemented affirmative action in 2005, we find that compared to their non-quota peers, potential quota beneficiaries are less likely to progress smoothly through college and less likely to graduate, a result that is mostly driven by those who would not be admitted to the university otherwise. Notably, however, most of these differences shrink as the students progress through college, suggesting a catch-up effect between those groups. While potential quota students initially face challenges, resulting in a reduced course load in their early college years, they compensate by taking more credits in later years to ultimately graduate.
    Keywords: affirmative action, margins of adjustment, Brazilian higher education
    JEL: I23 I24 I28 J15
    Date: 2023–06
  3. By: Braun, Matías (Universidad de los Andes); Gallego, Francisco (Pontificia Universidad Catolica de Chile); Soares, Rodrigo R. (Insper, São Paulo)
    Abstract: This paper examines the effects of renovating deteriorated public spaces on local socioeconomic outcomes. We analyze the impacts of a randomized experiment implemented in 28 fragile neighborhoods of Santiago, Chile. Our findings indicate that the renovation of local squares led to increased use and maintenance of the public space, enhanced neighborhood engagement, and a stronger sense of ownership among residents, along with a reduction in leisure activities outside the neighborhood. Moreover, treated neighborhoods experienced improvements in public security perceptions both within the square and in the broader neighborhood area. We also observe positive effects on trust (among acquaintances) and participation in community organizations. By exploring heterogeneous treatment effects across neighborhoods, we do not find evidence supporting theories emphasizing the joint determination of public security and social capital. Instead, our results suggest that the effects are better explained by increased neighborhood use, particularly in areas that are densely populated and have a higher proportion of social housing.
    Keywords: public space recovery, crime, social capital, urban infrastructure
    JEL: K42 O18 R53
    Date: 2023–06
  4. By: Alcázar, Lorena (Grupo de Análisis para el Desarrollo (GRADE)); Huerta, Shirley
    Abstract: Este documento evalúa el impacto de un programa de capacitaciones otorgado de manera aleatoria a beneficiarios del programa de empleo temporal Trabaja Perú (TP). Este experimento ofrece la oportunidad de examinar el impacto de la intervención dirigida hacia mujeres vulnerables en un contexto particular de alto desempleo como el generado por el COVID-19. El estudio utiliza una metodología principalmente cuantitativa y un diseño experimental. Se basa en datos cuantitativos recogidos mediante una encuesta de entrada y una encuesta de seguimiento realizada seis meses después; se complementa, además, con datos cualitativos obtenidos a partir de entrevistas. Los resultados muestran que, pese a las dificultades para encontrar empleo como consecuencia de la pandemia, las capacitaciones tuvieron efectos positivos significativos tanto en la inserción como en los ingresos laborales de las mujeres participantes en TP. Las mujeres a las que se les ofrecieron las capacitaciones ganan 55% más y tienen una probabilidad de empleo remunerado casi 10% mayor que las que no las recibieron. Por otro lado, las capacitaciones no parecen haber tenido impacto sobre el empoderamiento de las mujeres en términos de su capacidad de decisión en el hogar.
    Keywords: Capacitación, Training, Empleabilidad, Employability, Empleo temporal, Temporary employment, Inserción laboral, Job placement, Género, Gender, Ingreso, Evaluación de programas, COVID-19, Perú, Peru
    JEL: E24
    Date: 2023
  5. By: Carmen Camacho (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Fernanda Estevan (EESP - Sao Paulo School of Economics - FGV - Fundacao Getulio Vargas [Rio de Janeiro])
    Abstract: We use an overlapping generations model to investigate the role of parental health investment and children's schooling on the aggregate level of human capital and inequality. In our model, parental longevity affects children's human capital since it impacts human capital transmission. When poor parents cannot afford to invest in health, poverty traps may arise as human capital levels remain low in the long run. Both health costs and public school quality are crucial in determining whether households fall into the poverty trap. We demonstrate that high-quality schools ensure that successive generations become more educated, eventually attaining a higher human capital steady state. However, public health investments are particularly effective, as they affect household income and schooling and allow for human capital transmission through generations. We calibrate our model for Brazil and Chile and show that our model predicts that a poverty trap will arise in Brazil but not in Chile.
    Keywords: Poverty trap, Human capital, School quality, Intergenerational transmission, Longevity
    Date: 2023–04

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