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on Central and South America |
| By: | Deza, María Cecilia; Dondo, Mariana; Jara, H. Xavier; Rodríguez Guerrero, David Arturo; Torres, Javier |
| Abstract: | This paper aims to assess the extent to which cash transfers, direct taxes, and social contributions help to reduce gender income inequalities in seven Latin American countries: Argentina, Bolivia, Colombia, Ecuador, Mexico, Peru, and Uruguay. We apply microsimulation techniques to household survey data and allocate incomes within the household, assuming that each person retains the income they receive (e.g., earnings, benefits targeting mothers) and pays taxes and social insurance contributions on an individual basis according to each countrys rules. Then, we compare gender income ratios based on market (before taxes and benefits) and disposable (after taxes and benefits) income. Our results show that, at the bottom of the distribution, tax-benefit systems significantly reduce gender income disparities in most countries due to the effect of social assistance benefits received by mothers in poor households. Additionally, we find that women have substantially higher poverty rates than men based on individual disposable income. Gender differences in poverty fade away when income is pooled at the couple level and, even more so, at the household level. |
| Keywords: | taxes;benefits;microsimulation;gender gap |
| JEL: | D31 J16 H24 I32 I38 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:13941 |
| By: | Elacqua, Gregory; Rodrigues, Mateus; Rosa, Leonardo |
| Abstract: | Teacher turnover is a major challenge for human resource management in schools, adversely affecting student learning. We examine the impact of a monetary incentive program introduced in 2022 in the city of Sao Paulo, Brazil, which aims to reduce teacher turnover by allocating wage premiums ranging from 5% to 25% of base salary based on schools turnover levels. Our results show a significant reduction in turnover: an average decrease of 18% across all schools, with an even more pronounced 30% reduction in schools offering higher incentives. Notably, the program also attracted new teachers to these higher-incentive schools. An analysis of teacher preferences similarly reveals a shift towards schools offering greater wage premiums. Furthermore, we find that schools offering high incentives experienced significant improvements in student test scores, with gains of 0.3-0.6 standard deviations in standardized assessments. The findings demonstrate the effectiveness of monetary incentives in mitigating teacher turnover and improving educational outcomes, providing evidence-based guidance for policymakers developing teacher retention strategies. |
| Keywords: | Teachers;financial incentives;teacher shortage;Teacher sorting;turnover rates;disadvantaged schools |
| JEL: | I21 J45 J63 M52 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:13950 |
| By: | Decancq, Koen; Olivera, Javier; Schokkaert, Erik |
| Abstract: | We examine the impact of the non-contributory social pension program (Pension 65) in Peru, highlighting its varying effects on the three main ethnic groups: Mestizo, Quechua, and Aymara. Notably, Aymara beneficiaries have experienced greater improvements in health outcomes compared to other Peruvians. To account for these ethnic differences when evaluating policy programs, it is essential to use a welfare criterion that reflects preference heterogeneity. We propose a natural criterion: a program benefits a recipient if it lifts them to a higher indifference curve. We contrast this approach with an alternative that uses self-reported subjective well-being to evaluate a policy program. Through a panel life satisfaction regression, we find evidence of preference heterogeneity between the Aymara and other ethnic groups, consistent with the observed differences. Lastly, we explore why, contrary to simple intuition, not all beneficiaries reach a higher indifference curve. |
| Keywords: | ethnicity; pensions; Peru; policy evaluation; preference heterogeneity |
| JEL: | O12 D12 I38 |
| Date: | 2025–01–31 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126601 |
| By: | Amarante, Verónica; Galván, Estefanía; Yapor, Mijail |
| Abstract: | This paper provides novel insights into labor market dynamics during the COVID-19 pandemic and the subsequent recovery period in Uruguay. Using social security administrative records, we focus on the gender-differentiated patterns of labor market transitions following the pandemic outbreak, compared to a previous period. Furthermore, we evaluate the role of unemployment insurance (UI) as an instrument for employment protection during the pandemic-induced recession. The analysis reveals that womenparticularly those with children and earning low wagesexperienced greater employment and wage losses compared to men at the pandemics onset, though they showed signs of recovery in later periods. Moreover, women were more likely to transition from UI to formal employment during the pandemic, diverging from previous trends, largely due to the suspension modality (similar to a temporary lay-off) of the Uruguayan UI program. Through a regression discontinuity (RD) approach, the study identifies positive local effects of the beneficiaries of the UI suspension program on the probability of being employed and earning higher wages for both men and women, eight and twelve months after entering the program. These findings carry significant policy implications, underlying the importance of maintaining and potentially expanding UI programs with temporary suspension schemes, and the necessity of adapting social protection systems to respond quickly to crises. Our results underscore the potential of temporary layoff unemployment insurance schemes in developing countries as effective tools to address unexpected crises or shocks like COVID-19, preserving employment relationships and facilitating faster economic recovery. |
| Keywords: | COVID-19;gender;labor market;Unemployment insurance |
| JEL: | J16 J08 J21 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:13944 |
| By: | Galdos, Jazmine (Universidad de los Andes); Peralta, David (Universidad de los Andes) |
| Abstract: | Este estudio utiliza información de los beneficiarios del programa Red de Seguridad Alimentaria (ReSA), un programa social enfocado en el cultivo de alimentos para el autoconsumo en población vulnerable de Colombia, para evaluar potenciales efectos en reducir la inseguridad alimentaria. Se utilizaron datos de beneficiarios para el año 2016 (22, 092 hogares) y 2019 (9, 587 hogares) de ReSA, quienes completaron una encuesta de entrada y salida. Para la evaluación de la inseguridad alimentaria se construyeron 2 índices (ELCSA y el FCS). Los resultados muestran una disminución en el índice de inseguridad alimentaria para los participantes del programa al finalizar. Además, se pudo observar que la mayor duración en el programa también presenta un efecto más fuerte en la reducción de la inseguridad alimentaria. Estos resultados, adicionalmente, permiten identificar que los menores de edad son los más beneficiados de ReSA, en comparación con los adultos. Por último, se observa que, en los hogares con mujeres jefa de hogar, los efectos son positivos pero menores en comparación con aquellos encabezados por hombres. |
| Keywords: | Seguridad alimentaria; ReSA; Políticas públicas; Programa Social; Pobreza; ELCSA; FCS. |
| JEL: | H42 H53 Q18 |
| Date: | 2025–01–27 |
| URL: | https://d.repec.org/n?u=RePEc:col:000089:021310 |
| By: | Pérez Reyna, David (Universidad de los Andes); Rozada-Najar, Angie (Banco de la República); Suaza, Fausto (Universidad de los Andes) |
| Abstract: | Using a unique dataset combining Colombian firm, bank, and credit registry data from 2006 to 2021, we investigate the relationship between bank productivity and the productivity of firms they lend to. We find a positive correlation that strengthened after 2017. We posit a theoretical model to rationalize this finding: more productive banks optimally choose to lend to more productive firms because they can better afford the fixed costs of accessing higher-quality firm profiles. |
| Keywords: | firm productivity; bank productivity; lending relationships; productivity measurement |
| JEL: | D24 E44 G21 |
| Date: | 2025–01–20 |
| URL: | https://d.repec.org/n?u=RePEc:col:000089:021298 |