nep-lam New Economics Papers
on Central and South America
Issue of 2024‒02‒26
three papers chosen by

  1. Empleo Garantizado por el Estado y Renta Básica Universal: estrategias para enfrentar el problema estructural del empleo precario By Andrés Dean; Fernanda Diab; Juan Olano; Agustín Reyes; Guillermo Sánchez-Laguardia; Juan Ignacio Urruty
  2. AI Thrust: Ranking Emerging Powers for Tech Startup Investment in Latin America By Abraham Ramos Torres; Laura N Montoya
  3. The Effects of Immigration in a Developing Country: Brazil in the Age of Mass Migration By Escamilla-Guerrero, David; Papadia, Andrea; Zimran, Ariell

  1. By: Andrés Dean (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Fernanda Diab (Universidad de la República (Uruguay). Facultad de Humanidades y Ciencias de la Educación. Departamento de Filosofía de la Práctica); Juan Olano (Université catholique de Louvain; Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Agustín Reyes (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Guillermo Sánchez-Laguardia (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Juan Ignacio Urruty (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)
    Abstract: The deficit of good quality jobs is a structural problem of today’s societies. In our country it manifests itself in various ways: high unemployment, high percentage of workers not registered with social security, gap in rights and social dialogue, insecure working conditions and income, among others. In this context, the policies implemented in Uruguay in recent decades aimed at improving the quality of employment have proven to be effective but insufficient. Thus, the objective of this project is to carry out a normative and economic cost analysis of two policies to confront social vulnerability and structural job insecurity: State Job Guaranteed and Universal Basic Income. To this end, the relationship of each of the strategies with a set of moral and political ideals inherent to a democratic society was analyzed, such as the notions of reciprocity, non-domination and self-realization. An empirical study of the implementation costs of each of the programs and their possible sources of financing was carried out, and a consultation mechanism was implemented to collect inputs that would allow the social legitimacy of these strategies to be assessed. The results indicate that a combination of a basic income per child and a large-scale job guaranteed program would not only have social legitimacy and be fiscally achievable, but justifiable in normative terms.
    Keywords: job guaranteed, universal basic income, job quality
    JEL: I38 J18 J38 J45
    Date: 2023–12
  2. By: Abraham Ramos Torres; Laura N Montoya
    Abstract: Artificial intelligence (AI) is rapidly transforming the global economy, and Latin America is no exception. In recent years, there has been a growing interest in AI development and implementation in the region. This paper presents a ranking of Latin American (LATAM) countries based on their potential to become emerging powers in AI. The ranking is based on three pillars: infrastructure, education, and finance. Infrastructure is measured by the availability of electricity, high-speed internet, the quality of telecommunications networks, and the availability of supercomputers. Education is measured by the quality of education and the research status. Finance is measured by the cost of investments, history of investments, economic metrics, and current implementation of AI. While Brazil, Chile, and Mexico have established themselves as major players in the AI industry in Latin America, our ranking demonstrates the new emerging powers in the region. According to the results, Argentina, Colombia, Uruguay, Costa Rica, and Ecuador are leading as new emerging powers in AI in Latin America. These countries have strong education systems, well-developed infrastructure, and growing financial resources. The ranking provides a useful tool for policymakers, investors, and businesses interested in AI development in Latin America. It can help to identify emerging LATAM countries with the greatest potential for AI growth and success.
    Date: 2024–01
  3. By: Escamilla-Guerrero, David (University of St Andrews); Papadia, Andrea (University of York); Zimran, Ariell (Vanderbilt University)
    Abstract: The effects of immigration are reasonably well understood in developed countries, but they are far more poorly understood in developing ones despite the importance of these countries as immigrant destinations. We address this shortcoming by studying the effects of immigration to Brazil during the Age of Mass Migration on its agricultural sector in 1920. This context benefits from the widely recognized value of historical perspective in studies of the effects of immigration. But unlike studies that focus on the United States to understand the effects of migration from poor to rich countries, our context is informative of developing countries' experience because Brazil in this period was unique among major migrant destinations as a low-income country with a large agricultural sector and weak institutions. Instrumenting for a municipality's immigrant share using the interaction of aggregate immigrant inflows and the expansion of Brazil's railway network, we find that a greater immigrant share in a municipality led to an increase in farm values. We show that the bulk of the effect of immigration can be explained by more intense cultivation of land, which we attribute to temporary immigrants exerting greater labor effort than natives. Finally, we find that it is unlikely that immigration's effect on agriculture slowed Brazil's structural transformation.
    Keywords: immigration, developing countries, effects of immigration, age of mass migration, Brazil, agriculture
    JEL: F22 J61 N36 N56 O13 O15 Q15
    Date: 2024–01

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NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.