Public policies impacts on Latin American labor structures, preparing for integration

One of the Main Subjects to Be Discussed, in Order to Adjust Latin American Economies to a Regional Integration Network, as Imposed By Mercosul or Other Economic Common Markets, is Related to the Employment and Other Labor Markets Public Policies. the Question to Be Posed Is: Having in Mind the Characteristics of Different Labor Markets and Labor Forces, What are the Impacts of Governmental Measures Presented in the Diverse Economic Conditions of Those Countries. Having in Mind These Impacts, This Paper Aims to Examine the Requisites to Adjust the Labor Structure Standards of Latin American Countries and What Would Be the Reforms to Be Performed By These Countries in Order to Prepare These Markets and Labor Forces to Adapt to Regional Integration Networks Represented By Mercosul, Alca or Other Common Markets. There are Evaluated the Impacts of the Globalization Process, Economic Stabilization and Reform Policies Undertaken By Some Selected Latin American Countries Since the Eighties on the Labor Structure Standards, Considering the Specific Adjustment Measures to Cope With the Negative Effects of These Policies. Next, Some Cases of Europe Union (Eu) Countries Measures to Prepare to Integration is Examined, in Order to Provide Some Elements to Better Understand the Possibilities to Handle With the Extensive Changes in External Conditions. in Sequence Some Statistical Indicatives of the Impacts of These Measures on the Occupational Structuring are Analyzed For a Group of Selected Latin American and Eu Countries.

Avaliação do impacto dos programas de transferência monetária condicionada na taxa de frequência escolar e labor infantil: o caso do Programa JUNTOS no Peru

Na presente dissertação tem como objetivo avaliar o impacto do programa JUNTOS sobre a taxa de freqüência escolar e sobre o trabalho infantil nas crianças de 6 a 14 anos. Estas duas variáveis foram selecionadas para o seu estudo, pois ao nosso entender estas são as principais variáveis que são influenciadas pelo programa JUNTOS e que tem uma influencia direta sobre o capital humano das crianças e assim sobre a diminuição da pobreza futura. As principais hipóteses derivadas das teorias de capital humano e de transferências de rendas condicionadas foram corroboradas pela nossa avaliação: (1) o programa JUNTOS tem um efeito positivo sobre o incremento da freqüência escolar, (2) o programa JUNTOS é efetivo na redução do trabalho infantil, (3) quando o chefe de família é de sexo feminino, a renda familiar é utilizada em bens e serviços em favor das crianças, e (4) o efeito do programa JUNTOS é maior nas crianças com piores características socioeconômicas (ex: menor renda familiar per capita, chefe de família com poucos anos de estudo, idioma do chefe de família, etc.) Outra conclusão importante da dissertação foi que o programa JUNTOS provoca uma realocação na oferta de trabalho intra familiar.

Brazil: the pressure points in labor legislation

Brazil’s experience shows that the economic and political history of a country is a critical determinant of which labor laws influence wages and employment, and which are not binding. Long periods of high inflation, illiteracy of the workforce, and biases in the design and enforcement of labor legislation bred by the country’s socioeconomic history are all important in determining the reach of labor laws. Defying conventional wisdom, these factors are shown to affect labor market outcomes even in the sector of employment regarded as unregulated. Following accepted practice in Brazil, we distinguish regulated from unregulated employment by determining whether or not the contract has been ratified by the Ministry of Labor, viz., groups of workers with and without signed work booklet. We then examine the degree of adherence to labor laws in the formal and informal sectors, and finds “pressure points” – viz., evidence of the law on minimum wage, work-hours, and payment timing being binding on outcomes – in both the formal and informal sectors of the Brazilian labor market. The findings of the paper imply that in terms of the design of legislation, informality in Brazil is mainly a fiscal, and not a legal phenomenon. But the manner in which these laws have been enforced is also critical determinant of informality in Brazil: poor record-keeping has strengthened the incentives to stay informal that are already built into the design of the main social security programs, and ambiguities in the design of labor legislation combined with slanted enforcement by labor courts have led to workers effectively being accorded the same labor rights whether or not they have ratified contracts. The incentives to stay informal are naturally higher for workers who are assured of protection under labor legislation regardless of the nature of their contract, which only alters their financial relationship with the government. The paper concludes that informality in Brazil will remain high as long as labor laws remain ambiguous and enforced with a clear pro-labor bias, and social security programs lack tight benefitcontribution linkages and strong enforcement mechanisms.

Risk sharing and the household collective model

When the joint assumption of optimal risk sharing and coincidence of beliefs is added to the collective model of Browning and Chiappori (1998) income pooling and symmetry of the pseudo-Hicksian matrix are shown to be restored. Because these are also the features of the unitary model usually rejected in empirical studies one may argue that these assumptions are at odds with evidence. We argue that this needs not be the case. The use of cross-section data to generate price and income variation is based Oil a definition of income pooling or symmetry suitable for testing the unitary model, but not the collective model with risk sharing. AIso, by relaxing assumptions on beliefs, we show that symmetry and income pooling is lost. However, with usual assumptions on existence of assignable goods, we show that beliefs are identifiable. More importantly, if di:fferences in beliefs are not too extreme, the risk sharing hypothesis is still testable.

Tax filing choices for the household under separable spheres bargaining

If household choices can be rationalized by the maximization of a well defined utility function, allowing spouses to file individually or jointly is equivalent to offering the envelope of the two tax schedules. If, instead, household ’preferences’ are constantly being redefined through bargaining, the option to file separately may affect outcomes even if it is never chosen. We use Lundberg and Pollak’s (1993) separate spheres bargaining model to assess the impact of filing options on the outcomes of primary and secondary earners. Threat points of the household’s bargain are given for each spouse by the utility that he or she attains as a follower of a counter-factual off-equilibrium Stackelberg game played by the couple. For a benchmark tax system which treats a couple’s average taxable income as if it were that of a single individual, we prove that if choices are not at kinks, allowing couples to choose whether to file jointly or individually usually benefits the secondary earner. In our numeric exercises this is also the case when choices are at kinks as well. These findings are, however, quite sensitive to the details of the tax system, as made evident by the examination of an alternative tax system.

New evidence of the causal effect of family size on child quality in a developing country

This paper presents new evidence of the causal effect of family size on child quality in a developing-country context. We estimate the impact of family size on child labor and educational outcomes among Brazilian children and young adults by exploring the exogenous variation of family size driven by the presence of twins in the family. Using the Brazilian Census data for 1991, we nd that the exogenous increase in family size is positively related to labor force participation for boys and girls and to household chores for young women. We also and negative e ects on educational outcomes for boys and girls and negative impacts on human capital formation for young female adults. Moreover, we obtain suggestive evidence that credit and time constraints faced by poor families may explain the findings.

Informal wages in an economy with active labor courts

In most developing countries, job regulations and the justice branch interfere on several aspects of labor contracts. Inspired by this fact, we build a model that explores the role of labor courts in the determination of the di¤erence between formal and informal wages. We show that the presence of active labor courts in an environment where labor relations are subject to asymmetries of information reproduces features documented by the empirical literature. The main implications of our model are tested using Brazilian data.

Trabalho infantil no Brasil: determinantes da redução entre 2003 e 2011 e efeitos sobre a escolaridade e o rendimento na vida adulta

The hypothesis that child labor impacts future income generation negatively, for it harms the formal acquisition of education, is widely accepted by the existing literature on this issue. However, some researchers agree that labor might be beneficial to teenagers once they can develop skills, acquire job experience, or even help them to afford their own education acquisition. Thus, the main goal of this study is to assess if there is an age which the negative impact of the early access to the labor market over income and the conclusion of high school, during the adulthood of Brazilian people, becomes positive. To do so, PNADs (Pesquisas Nacionais de Amostra de Domicílios), a National Census of Household Samples, issues 1992 to 2011, were utilized plus the employment of an econometric technique called pseudo-panel. For this analysis, generations of people born between 1982 and 1991 were observed from the ages 10 to 17 (child labor) and from the ages 20 to 29 (conclusion of high-school & income). The results show that starting at the age of 15, the negative effect of an early access to the labor market over income, between ages 20-29, becomes positive. As per high-school, it was observed that accessing the labor market before the age 15 diminishes the probability for an individual to conclude high school before the age 21. From this age on, labor does not have a negative impact anymore. The second goal of this study is to assess how much of the reduction of the child labor occurrence in Brazil for the past years is due to changes of economic and demographic characteristics of children and families. For these analyses PNADs - National Census of Household Samples, issues 2003 to 2011, were employed plus the methodology of decomposition that divides the variation of child labor into 2 components: (a) changing of the probability of children with the same characteristics (intragroup) to start working – access labor market & (b) changing of the distribution of characteristics (intergroups). The results show that the reduction of the child labor occurrence is due, mainly, to changes on the probabilities. In general terms, the occurrence of child labor took place, more significantly, among individuals of the ages 15 to 17 & household heads with less education. Besides the characteristics mentioned, the reduction between non-white individuals was also significant among individuals from 4-member families. The results show that the reduction of child labor took place, mainly, among children and teenagers from non-white and poor families.

The impact of past hyperinflation on current household investment behavior

Neste estudo é proposto que a instabilidade macroeconômica extrema causada pela hiperinflação nas décadas de 80 e 90 no Brasil causou um efeito de longo prazo no comportamento de poupança dos indivíduos. Usando dados da Pesquisa Nacional por Amostra de Domicílio (PNAD) de 2009 e 2011 e um questionário complementar, encontramos três evidências significantes: (1) indivíduos que possuem memória do período de hiperinflação no Brasil tem uma menor probabilidade de participar do mercado de ações; (2) há uma forte evidência que pessoas que estavam em idade formativa durante a hiperinflação são menos dispostos de possuir algum tipo de instrumento financeiro do que pessoas que tiveram a experiência desse choque macroeconômico em outros períodos de suas vidas; (3) mulheres solteiras são muito mais prováveis de ter uma poupança financeira que homens solteiros.

Child labor and learning

This paper investigates the impact of working while in school on learning outcomes through the use of a unique micro panel dataset of Brazilian students. The potential endogeneity is addressed through the use of di erence-in-di erence and instrumental variable estimators. A negative e ect of working on learning outcomes in both math and Portuguese is found. The e ects of child work range from 3% to 8% of a standard deviation decline in test score which represents a loss of about a quarter to a half of a year of learning on average. We also explore the minimum legal age to entry in the labor market to induce an exogenous variation in child labor status. The results reinforce the detrimental e ects of child labor on learning. Additionally, it is found that this e ect is likely due to the interference of work with the time kids can devote to school and school work.

Evidence of eligibility manipulation for conditional cash transfer programs

This paper assesses whether eligibility for conditional cash transfer programs have been manipulated, as well as the impact of this phenomenon on time allocation within households. To perform this analysis, we use data from the 2006 PNAD (Brazilian national household survey) and investigate the eligibility manipulation for the Bolsa Família (Family Stipend) program during this time period. The program assists families with a monthly per capita income of around R$120.00 (US$60.00). By applying the tests developed by McCrary (2008), we find suggestive evidence that individuals manipulate their income by voluntarily reducing their labor supply in order to become eligible to the program. Moreover, the reduction in labor supply is greater among women, especially single or divorced mothers. This evidence raises some concern about the unintended consequences related to the eligibility criteria utilized by Bolsa Família, as well as the program’s impact on individuals living in extreme poverty.

Informal labor contracts: an analysis of the Brazilian experience

For representing an expressive souree of labor absorption, the jobs with informal labor eontraet have been reeeiving a eonsiderable attention among the speeialists in the Brazilian labor rnarket. This paper presents, eoneisely, some stylized faets about this labor rnarket segment, as well as some oftheir most eommon interpretations. We argue that sue h interpretations are, in general, not very integrated and a model trying to make them eompatible is developed. The model ineorporates both segmentation and workers with heterogeneity in qualifieation. The results of the analysis are shown to be eompatible with most of the observed faets.