nep-lam New Economics Papers
on Central and South America
Issue of 2025–09–01
three papers chosen by
Maximo Rossi, Universidad de la RepÃúºblica


  1. Relative Income and Gender Norms: Evidence from Latin America By Ercio Mu\~noz; Dario Sansone; Jo\~ao Tampellini
  2. Labor Market Institutions and Wage-Setting Power: Evidence from Latin America and the Caribbean By Francesco Amodio; Emanuele Brancati; Nicolás de Roux; Michele Di Maio
  3. Institutions, Development, and Parenting in Latin America By Baez, Maria Josefina; Giannelli, Gianna Claudia; Mangiavacchi, Lucia

  1. By: Ercio Mu\~noz; Dario Sansone; Jo\~ao Tampellini
    Abstract: Using data from over 500, 000 dual-earner households in Mexico, we provide evidence of discontinuities in the distribution of relative income within households in Latin America. Similar to high-income countries, we observe a sharp drop at the 50% threshold, where the wife earns more than the husband, but the discontinuity is up to five times larger and has increased over time. These patterns are robust to excluding equal earners, self-employed individuals, or couples in the same occupation/industry. Discontinuities persist across subgroups, including couples with or without children, married or unmarried partners, and those with older wives or female household heads. We also find comparable discontinuities in Brazil and Panama, as well as among some same-sex couples. Moreover, women who are primary earners continue to supply more non-market labor than their male partners, although the gap is narrower than in households where the woman is the secondary earner.
    Date: 2025–08
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2508.08166
  2. By: Francesco Amodio (McGill University); Emanuele Brancati (Sapienza University of Rome); Nicolás de Roux (Universidad de los Andes); Michele Di Maio (Sapienza University of Rome)
    Abstract: We measure firms’ wage-setting power in 16 Latin American and Caribbean countries. Exploiting variation in firms’ exposure to trade and exchange rates, we generate shocks to labor demand to trace out firm-level labor supply curves and quantify labor market power. We estimate an inverse labor supply elasticity of 0.82, implying that workers receive 55 cents per additional dollar produced. Wage-setting power is significantly higher among firms in countries with lower union density, limited collective bargaining, and no unemployment protection. This underscores the role of labor market institutions in shaping firms’ wagesetting power and the distribution of the gains from trade.
    Keywords: firms, labor market power, labor institutions
    JEL: J31 J50 O54
    Date: 2025–08
    URL: https://d.repec.org/n?u=RePEc:col:000089:021499
  3. By: Baez, Maria Josefina (University of Florence); Giannelli, Gianna Claudia (University of Florence); Mangiavacchi, Lucia (University of Perugia)
    Abstract: This study examines how institutional quality and economic inequality influence parenting decisions across Latin America. Parenting is conceptualized as a strategic response to structural conditions, where families adapt both long-term approaches and short-term disciplinary tactics to local environments. Unlike much of the existing literature, which focuses on high-income countries, this analysis integrates parenting styles and disciplinary practices, emphasizing the role of behavioral control in low- and middle-income contexts. Using cross-country data from the World Values Survey (WVS) and the Multiple Indicator Cluster Surveys (MICS), the study presents stylized facts and investigates cross-sectional associations between governance, inequality, and parenting behaviors. Results indicate that families adjust their strategies in response to institutional environments, particularly in settings with limited public support and uncertain intergenerational mobility. These findings highlight the importance of considering governance and inequality as key drivers of parenting practices in developing regions.
    Keywords: Latin America, parenting, inequality, institutions
    JEL: D1 D63 J1
    Date: 2025–07
    URL: https://d.repec.org/n?u=RePEc:iza:izadps:dp18048

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