Why labor income shares seem to be constant?

The common assumptions that labor income share does not change over time or across countries and that factor income shares are equal to the elasticity of output with respect to factors have had important implications for economic theory. However, there are various theoretical reasons why the elasticity of output with respect to reproducible factors should be correlated with the stage of development. In particular, the behavior of international trade and capital flows and the existence of factor saving innovations imply such a correlation. If this correlation exists and if factor income shares are equal to the elasticity of output with respect to factors then the labor income share must be negatively correlated with the stage of development. We propose an explanation for why labor income share has no correlation with income per capita: the existence of a labor intensive sector which produces non tradable goods.

An estimation of the pattern of diffusion of mobile phones: the case of Colombia

In this paper we find that the diffusion pattern of mobile telephony in Colombia can be best characterised as following a Logistic curve. Although in recent years the rate of growth of mobile phone subscribers has started to slow down, we find evidence that there is still room for further expansion as the saturation level is expected to be reached in five years time. The estimated saturation level is consistent with some individuals possessing more than one mobile device.

Asymmetrically fair rules for an indivisible good problem with a budget constraint

We study a particular restitution problem where there is an indivisible good (land or property) over which two agents have rights: the dispossessed agent and the owner. A third party, possibly the government, seeks to resolve the situation by assigning rights to one and compensate the other. There is also a maximum amount of money available for the compensation. We characterize a family of asymmetrically fair rules that are immune to strategic behavior, guarantee minimal welfare levels for the agents, and satisfy the budget constraint.

Beyond the mincer equation: the internal rate of return to higher education in Colombia

In order to present an estimation of the Internal Rate of Return (IRR) to higher education in Colombia we take advantage of the methodological approach provided by Heckman, Lochner and Todd (2005). Trying to overcome the criticism that surrounds interpretations of the education coefficient of Mincer equations as being the rate of return to investments in education we develop a more structured approach of estimation, which controls for selection bias, includes more accurate measures of labor income and the role of education costs and income taxes. Our results implied a lower rate of return than the ones found in the Colombian literature and show that the Internal Rate of Return for higher education in Colombia lies somewhere between 0.074 and 0.128. The results vary according to the year analyzed and individual’s gender. This last result reinforces considerations regarding gender discrimination in the Colombian labor market.

Biased technological change, human capital and factor shares

We propose a one-good model where technological change is factor saving and costly. We consider a production function with two reproducible factors: physical capital and human capital, and one not reproducible factor. The main predictions of the model are the following: (a) The elasticity of output with respect to the reproducible factors depends on the factor abundance of the economies. (b) The income share of reproducible factors increases with the stage of development. (c) Depending on the initial conditions, in some economies the production function converges to AK, while in other economies long-run growth is zero. (d) The share of human factors (raw labor and human capital) converges to a positive number lower than one. Along the transition it may decrease, increase or remain constant.

Body mass index as a standard of living measure: a different interpretation for the case of Colombia

We analyze the Body Mass Index (BMI) in a distinct way of its traditional use and it lets us use it as a proxy of standard of living for the case of Colombia. Our approach is focused on studying how far the people are from the normal range and not on the score of each one and this lets us to treat equally extreme cases as severe thinness and obesity. We use a probabilistic model (Ordered Probit) that evaluates the probability of being within the normal range or another level. We found that socioeconomic variables have a significant effect on the dependent variable and that there are no linear effects. Besides, people with difficulties for walking and adults have less probability of having a normal BMI.

Business cycle asymmetries: Loss aversion, sticky prices, and wages

In this chapter, the Smets-Wouters (2003) New Kenesian model is reformulated by introducing the loss aversion utility function developed in chapter two. The purpose of this is to understand how asymmetric real business cycles are linked to asymmetric behavior of agents in a price and wage rigidities set up. The simulations of the model reveal not only that the loss aversion in consumption and leisure is a good mechanism channel for explaining business cycle asymmetries, but also is a good mechanism channel for explaining asymmetric adjustment of prices and wages. Therefore the existence of asymmetries in Phillips Curve. Moreover, loss aversion makes downward rigidities in prices and wages stronger and also reproduces a more severe and persistent fall of the employment. All in all, this model generates asymmetrical real business cycles, asymmetric price and wage adjustment as well as hysteresis.

Clusters en cultivos ilícitos: determinantes y dinámicas

Los datos recientes de areas de cultivos ilícitos indican que a pesar de las fumigaciones, la producción total se ha reducido levemente y los cultivos se han dispersado. Se plantea un modelo teórico que analiza las decisiones tomadas por los cultivadores sobre la localizaci´on de sus parcelas, basando esta escogencia en la dinamización local de los costos esperados. Se utiliza un modelo de agentes para la simulación de la naturaleza compleja de las dinámicas estudiadas. Se encuentra que el incentivo para agruparse aumenta con las economías a escala y se reduce con la expectativa del castigo, sobretodo en zonas con alta densidad de cultivadores.

Demand of children in Colombia : guessing or planning

El artículo analiza los determinantes de la presencia de hijos no deseados en Colombia. Se utiliza la información de la Encuesta Nacional de Demografía y Salud (ENDS, 2005), específicamente para las mujeres de 40 años o más. Dadas las características especiales de la variable que se analiza, se utilizan modelos de conteo para verificar si determinadas características socioeconómicas como la educación o el estrato económico explican la presencia de hijos no deseados. Se encuentra que la educación de la mujer y el área de residencia son determinantes significativos de los nacimientos no planeados. Además, la relación negativa entre el número de hijos no deseados y la educación de la mujer arroja implicaciones clave en materia de política social.

A model of school behavior: tuition fees and grading standards

This paper uses a hybrid human capital / signaling model to study grading standards in schools when tuition fees are allowed. The paper analyzes the grading standard set by a profit maximizing school and compares it with the efficient one. The paper also studies grading standards when tuition fees have limits. When fees are regulated a profit maximizing school will set lower grading standards than when they are not regulated. Credit constraints of families also induce schools to lower their standards. Given that in the model presented competition is not feasible, these results show the importance of regulation of grading standards.

Doctors´ remuneration schemes and hospital competition in two-sided markets with common network externalities

This paper uses a two-sided market model of hospital competition to study the implications of di§erent remunerations schemes on the physiciansí side. The two-sided market approach is characterized by the concept of common network externality (CNE) introduced by Bardey et al. (2010). This type of externality occurs when occurs when both sides value, possibly with di§erent intensities, the same network externality. We explicitly introduce e§ort exerted by doctors. By increasing the number of medical acts (which involves a costly e§ort) the doctor can increase the quality of service o§ered to patients (over and above the level implied by the CNE). We Örst consider pure salary, capitation or fee-for-service schemes. Then, we study schemes that mix fee-for-service with either salary or capitation payments. We show that salary schemes (either pure or in combination with fee-for-service) are more patient friendly than (pure or mixed) capitations schemes. This comparison is exactly reversed on the providersíside. Quite surprisingly, patients always loose when a fee-for-service scheme is introduced (pure of mixed). This is true even though the fee-for-service is the only way to induce the providers to exert e§ort and it holds whatever the patientsívaluation of this e§ort. In other words, the increase in quality brought about by the fee-for-service is more than compensated by the increase in fees faced by patients.

Dynamic conditional correlation in Latin-American asset markets

In this paper we reviewed the models of volatility for a group of five Latin American countries, mainly motivated by the recent periods of financial turbulence. Our results based on high frequency data suggest that Dynamic multivariate models are more powerful to study the volatilities of asset returns than Constant Conditional Correlation models. For the group of countries included, we identified that domestic volatilities of asset markets have been increasing; but the co-volatility of the region is still moderate.

Echoes of the crises in Spain and US in the Colombian labor market : a differences-in-differences approach

This paper presents evidence of the effect of the recent phases of the business cycle in Spain and United States, proxied by their respective unemployment rates, on the labor market of Colombian cities with high migration tradition. These countries are the main destination for labor Colombian migrants. Using information from the household survey between 2006 and 2011 for urban areas in Colombia and a differences-in-differences approach we find that unemployment rates of those countries negatively affect the probability and the amount of remittances received by Colombian households living in areas with high and moderate migration tradition. At a second stage we provide evidence that unemployment rates of those countries positively affect the labor force participation decisions in Colombian regions with the highest migration tradition.

Efectividad estimada de algunos de los principales instrumentos de política agrícola en Colombia

Algunos cambios recientes en la política agrícola en Colombia se han orientado hacia la implementación de medidas de apoyo directo a los productores, con el fin de proteger su ingreso y fomentar una mayor competitividad del sector. No obstante, estimaciones acerca del impacto esperado de este tipo de instrumentos, medido en té rminos de cambios en el valor agregado, indican que este es reducido. Como quiera que la política emplea diferentes instrumentos para el logro de sus objetivos, surge la pregunta de cuál es el grado de dependencia que los resultados esperados presentan respecto a la forma como los recursos son asignados a dichos instrumentos. Este estudio utiliza un modelo de equilibrio general computable para explorar este problema, para un conjunto de tres de los principales instrumentos de política utilizados en la actualidad, en un contexto de corto plazo. Los resultados indican que, en presencia de rigideces de corto plazo y, en particular, de inmovilidad del capital entre actividades productivas, todos los instrumentos de política llevan a la obtención de resultados modestos y que, en un escenario de mediano y largo plazo, el comportamiento de la inversión parece ser crítico para la obtención de impactos más significativos y para el logro de los objetivos de política buscados.

Efectos de la reforma laboral: ¿más trabajo y menos empleos?

La Reforma Laboral de 2002 apuntó a dos objetivos específicos: implementación de mecanismos de protección social y flexibilización laboral. En este documento se analizan algunos de sus efectos haciendo énfasis en la variación de las modalidades de contratación, los cambios en las horas de trabajo demandadas y los efectos en la duración del desempleo. De este análisis se concluye que la Reforma tuvo un efecto intensivo en generar mayor demanda de horas de trabajo pero que sólo tuvo un efecto marginal en la generación de empleo. Por otra parte, la duración del desempleo se redujo en el agregado.