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on Central and South America |
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Issue of 2024‒07‒22
three papers chosen by |
| By: | Díaz Escobar, Ana María; Salas Bahamón, Luz Magdalena; Piras, Claudia; Suaya, Agustina |
| Abstract: | This study sheds light on the growing trend and gender dynamics of workplace flexibility in Latin America, underscoring the importance of remote work options in the regions labor market. We explore gender differences in willingness to pay (WTP) for remote work arrangements in Latin America, using a discrete choice experiment across five countries: Colombia, Peru, Mexico, Chile, and Argentina. Results reveals a general trend among Latin American workers to trade off some wage in exchange for more remote work options, both fully and partially remote, in two male-dominated occupations: Manufacturing and information technology. On average, participants agreed to sacrifice around 10% of their wage for hybrid jobs (80% remote, 20% on-site). The WTP for fully remote work was slightly lower, at about 6% of the wage. Women exhibit a higher WTP for flexibility compared to men, with a 62.5% higher willingness across estimates for hybrid arrangements. Moreover, women's inclination towards fully remote options was distinct, as they showed a positive WTP (up to 10% of their salary) for such arrangements, whereas men exhibited no willingness to reduce their wages for fully remote roles. |
| Keywords: | willingness to pay;Flexible Work Arrangements;Discrete Choice Experiment. |
| JEL: | J22 J31 J41 J51 J71 |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:13439&r= |
| By: | Cavallo, Eduardo A.; Cepeda, Ana; Panizza, Ugo |
| Abstract: | This paper studies the interplay between environmental performance and financial valuation of firms in Latin America and the Caribbean. We provide insights into how environmental considerations are integrated into financial decision-making and investor behavior by analyzing the stock market reaction to environmental news of firms with different levels of carbon emission intensity. We find that high emission intensity firms tend to underperform after the release of environmental damage news. Our baseline estimates indicate that, after the release of such news, firms at the 75th percentile of the distribution of emission intensity experience stock returns that are 17% lower than those of firms at the 25th percentile of the distribution of emission intensity. These results suggest that investors care about and price carbon risk, but only when this risk is salient. |
| Keywords: | Carbon emissions;climate change;Environmental news;Stock returns |
| JEL: | G12 G14 G18 G32 G38 Q54 |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:13537&r= |
| By: | Mauricio Cárdenas (Columbia University; Center for Global Development); Enrique Sanz Posse (Universidad de los Andes) |
| Abstract: | As the politics of polarization gain traction and electoral support, a new vintage of populism is emerging in Latin America. This new version shares some aspects with the type of cultural populism now common in advanced economies that divides societies into antagonistic camps. But there are also important differences. The new paradigm in Latin America undermines the system of checks and balances, including an active use of street power and social mobilization as well as changes to electoral rules, to enhance presidentialism. In the case of left-leaning leaders, the new Latin American paradigm is giving the state an increasingly relevant role in the economy. However, it explicitly preserves sound macroeconomic management, in contrast to previous versions of populism. The crucial question is whether macroeconomic stability will prevail under this hybrid model, with a larger role for the state and greater economic intervention, in the context of more divided societies facing low expected economic growth. |
| Date: | 2024–02–23 |
| URL: | https://d.repec.org/n?u=RePEc:cgd:wpaper:683&r= |