Measuring the effectiveness of two public policies on the sectors of labor markets and urban infraestructure. Experimental and quasi-experimental evidence from developing countries

La tesis presenta evidencia rigurosa de la efectividad de las políticas públicas utilizando metodologías experimentales y cuasi-experimentales. La tesis comienza con una introducción completa y una revisión rigurosa de las metodologías que se utilizarán en el análisis posterior de los datos. El primer capítulo, "Habilidades personales y habilidades técnicas en programas de formación de jóvenes. Evidencia Experimental de Largo Plazo de República Dominicana ", evalúa el impacto de un programa de empleo de los jóvenes en una serie de variables de interés. El programa ofrece capacitación en las habilidades vocacionales y en las habilidades no cognitivas a jóvenes en riesgo de exclusión social. Cabe destacar que la metodología utilizada para evaluar el programa es un ensayo controlado aleatorio, que proporciona evidencia robusta del efecto causal del programa. Mientras que estudios previos analizaron el impacto de los programas para jóvenes relacionados, ningún estudio anterior había evaluado los efectos de 4 años después de la implementación del programa. Esto representa una contribución importante debido a que las ganancias a corto plazo de varios programas de desarrollo han demostrado no ser sostenida en el tiempo. Esto es también lo que este estudio encuentra para los resultados del mercado de trabajo: mientras que el programa genera una mejora a corto plazo de los resultados de empleo para las mujeres, este efecto se disipa en el largo plazo. Sin embargo, el programa parece conducir a cambios persistentes en las expectativas del mercado de trabajo de las mujeres: las mujeres que asistieron al entrenamiento de informar una visión más optimista de las perspectivas del mercado de trabajo hasta 4 años después del programa...

Wage structures and family economies in the Catalan textile industry in an age of nascent capitalism

This paper deals with changes in managerial practices in Catalonia in anage of nascent capitalism (1830-1925) and adaptive family strategies inorder to face the absence of state welfare. During the 19 t h Century andin the absence of recorded labor contracts, human resources of the firmwere organized by means of implicit contracts and informal labor markets.With the advent of scientific organization of labor, wage per hour workedbegan to be recorded. This is why in the 1920s the perfect competitionmodel applies to our case. On the other hand, in the same period, and inthe absence of state welfare, ideas stemming from cooperative game theoryapply to the pattern of household income formation. Kin related networkswere used to improve the living standards of the household. In thisparticular direction we also show that there was a demonstration effectby means of which migrant s living standards were higher than those ofnatives.

The voices and protests of China's labour NGOs and their effort to promote migrant worker rights

Labour NGOs in China are relatively new organizations that emerged in the 1990s and have spread during the 2000s. Migrant workers in China are weak both socially and economically and have been lacking ways of voicing grievances and protesting. Grassroots labour NGOs for migrant workers seem to be an efficient channel for their voices. This paper examines how labour NGOs emerged and how they function in the context of current Chinese society. This paper adopts the case study method to describe three NGOs in Beijing and Shenzhen. The paper shows that these NGOs are using different methods to resolve migrant worker problems. At the same time, they are voicing the migrants' grievances and protesting in their own ways.

Labor legislation and the size of informal sector in Brazil

This paper studies the increase in the rate of informal workers in the Brazilian economy that occurred between 1985 and 1999. We develop an overlapping generations model with incomplete markets in which agents are ex-post heterogeneous. We calibrate it to match some features of the Brazilian economy for 1985. We conduct a policy experiment which reproduces the 1988 constitution reforms that increased the retirement benefits and labor costs in the formal sector. We show that these reforms can explain the increase in informal labor. Then, we conduct a policy experiment and analyze its impact on the Brazilian economy.

Análisis del ciclo económico en una economía con rigideces nominales y un amplio sector informal

En este trabajo se construye un modelo de Equilibrio General Dinámico Estocástico (DSGE) con sector informal y rigideces en precios, usando como marco de análisis la teoría de búsqueda y emparejamiento del mercado de trabajo. El objetivo principal es analizar el efecto de los diferentes tipos de choques económicos sobre las principales variables del mercado laboral, en una economía con presencia importante del sector informal. Igualmente se estudia el efecto de la política monetaria, ya que la presencia de este sector afecta la dinámica del ciclo económico, y por ende los mecanismos de transmisión de la política monetaria. En particular, se analiza la dinámica del modelo bajo diferentes reglas de política monetaria y se compara el bienestar agente representativo generado por cada una de estas reglas.

Rigideces nominales en una economía con un amplio sector informal

La presencia del sector informal es una de las principales características del mercado de trabajo en países en vías de desarrollo como Colombia. Esta problemática ha sido ampliamente estudiada en los últimos años debido a su gran impacto en la economía y a que el funcionamiento del mercado de traba jo, los salarios y los precios se comportan de una manera diferente al de los países desarrollados. Una política monetaria y fiscal responsable debe tener en cuenta estas especificidades. La presencia del sector informal es una de las principales características del mercado de trabajo en países en vías de desarrollo como Colombia. Esta problemática ha sido ampliamente estudiada en los últimos años debido a su gran impacto en la economía y a que el funcionamiento del mercado de trabajo, los salarios y los precios se comportan de una manera diferente al de los países desarrollados. Una política monetaria y fiscal responsable debe tener en cuenta estas especificidades.

Unemployment insurance in the presence of an informal sector

We study the effect of UI benefits in a typical developing country where the informal sector is sizeable and persistent. In a partial equilibrium environment, ruling out the macroeconomic consequences of UI benefits, we characterize the stationary equilibrium of an economy where policyholders may be employed in the formal sector, short-run unemployed receiving UI benefits or long-run unemployed without UI benefits. We perform comparative static exercises to understand how UI benefits affect unemployed worker´s effort to secure a formal job, their labor supply in the informal sector and leisure time. Our model reveals that an increase in UI benefits generates two opposing effects for the short-run unemployed. First, since search efforts cannot be monitored it generates moral hazard behaviours that lower effort. Second, it generates an income effect as it reduces the marginal cost of searching for a formal job and increases effort.The overall effect is ambiguous and depends on the relative strength of these two effects. Additionally, we show that an increase in UI benefits increases the efforts of long-run unemployed workers. We provide a simple simulation exercise which suggests that the income effect pointed out is not necessarily of second-order importance in comparison with moral hazard strength. This result softens the widespread opinion, usually based on the microeconomic/partial equilibrium argument that the presence of dual labor markets is an obstacle to providing UI in developing countries.

Two stops in today's new global geographies: shaping novel labor supplies and employment regimes

Includes bibliography

The informal labour market in India : transitory or permanent employment for migrants?

The informal economy is a very important sector of the Indian economy. The National Council of Applied Economic Research estimates that the informal sector - "unorganised sector" - generates about 62% of GDP and provides for about 55% of total employment (ILO 2002, p. 14). This paper studies the characteristics of the workers in the informal economy and whether internal migrants treat this sector as a temporary location before moving on to the organised or formal sector to improve their lifetime income and living conditions. We limit our study to the Indian urban (non-agricultural) sector and study the characteristics of the household heads that belong to the informal sector (self-employed and informal wage workers) and the formal sector. We find that household heads that are less educated, come from poorer households, and/or are in lower social groups (castes and religions) are more likely to be in the informal sector. In addition, our results show strong evidence that the longer a rural migrant household head has been working in the urban sector, ceteris paribus, the more likely that individual has moved out of the informal wage sector. These results support the hypothesis that, for internal migrants, the informal wage labour market is a stepping stone to a better and more certain life in the formal sector.

Essays on Fiscal Policy, Monetary Policy and Currency Unions: Exploring the Role of Informality and Labor Mobility

Thesis (Ph.D.)--University of Washington, 2016-06

The relevance of post-match LTC: why has the Spanish labor market become as volatile as the US one?

We present a Search and Matching model with heterogeneous workers (entrants and incumbents) that replicates the stylized facts characterizing the US and the Spanish labor markets. Under this benchmark, we find the Post-Match Labor Turnover Costs (PMLTC) to be the centerpiece to explain why the Spanish labor market is as volatile as the US one. The two driving forces governing this volatility are the gaps between entrants and incumbents in terms of separation costs and productivity. We use the model to analyze the cyclical implications of changes in labor market institutions affecting these two gaps. The scenario with a low degree of workers’ heterogeneity illustrates its suitability to understand why the Spanish labor market has become as volatile as the US one.

The Macroeconomics of the labor market: three fundamental views

We distinguish and assess three fundamental views of the labor market regarding the movements in unempoyment: (i) the frictionless equilibrium view; (ii) the chain reaction theory, or prolonged adjustment view; and (iii) the hysteresis view. While the frictionless view implies a clear compartmentalization between the short- and long-run, the hysteresis view implies that all the short-run fluctuations automatically turn into long-run changes in the unemployment rate. We assert the problems faced by these conceptions in explaining the diversity of labor market experiences across the OECD labor markets. We argue that the prolonged adjustment view can overcome these problems since it implies that the short, medium, and long runs are interrelated, merging with one another along an intertemporal continuum.

Immigrants'assimilation process in a segmented labor market

While much of the literature on immigrants' assimilation has focused on countries with a large tradition of receiving immigrants and with flexible labor markets, very little is known on how immigrants adjust to other types of host economies. With its severe dual labor market, and an unprecedented immigration boom, Spain presents a quite unique experience to analyze immigrations' assimilation process. Using data from the 2000 to 2008 Labor Force Survey, we find that immigrants are more occupationally mobile than natives, and that much of this greater flexibility is explained by immigrants' assimilation process soon after arrival. However, we find little evidence of convergence, especially among women and high skilled immigrants. This suggests that instead of integrating, immigrants occupationally segregate, providing evidence consistent with both imperfect substitutability and immigrants' human capital being under-valued. Additional evidence on the assimilation of earnings and the incidence of permanent employment by different skill levels also supports the hypothesis of segmented labor markets.

In Search of Advice for Physicians in Entry-Level Medical Markets

We consider entry-level medical markets for physicians in the United Kingdom. These markets experienced failures which led to the adoption of centralized market mechanisms in the 1960's. However, different regions introduced different centralized mechanisms. We advise physicians who do not have detailed information about the rank-order lists submitted by the other participants. We demonstrate that in each of these markets in a low information environment it is not beneficial to reverse the true ranking of any two acceptable hospital positions. We further show that (i) in the Edinburgh 1967 market, ranking unacceptable matches as acceptable is not profitable for any participant and (ii) in any other British entry-level medical market, it is possible that only strategies which rank unacceptable positions as acceptable are optimal for a physician.

Matching Markets under (In)complete Information

We are the first to introduce incomplete information to centralized many-to-one matching markets such as those to entry-level labor markets or college admissions. This is important because in real life markets (i) any agent is uncertain about the other agents' true preferences and (ii) most entry-level matching is many-to-one (and not one-to-one). We show that for stable (matching) mechanisms there is a strong and surprising link between Nash equilibria under complete information and Bayesian Nash equilibria under incomplete information. That is,given a common belief, a strategy profile is a Bayesian Nash equilibrium under incomplete information in a stable mechanism if and only if, for any true profile in the support of the common belief, the submitted profile is a Nash equilibrium under complete information at the true profile in the direct preference revelation game induced by the stable mechanism. This result may help to explain the success of stable mechanisms in these markets.