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Over the past decade, 12 of 14 Latin American countries have experienced a reduction in inequality. Based on a series of counterfactual simulations, the observed changes in inequality are decomposed in order to identify the main determinants of inequality. In contrast to methods that focus on aggregate summary statistics, the method adopted in this paper generates counterfactual distributions, so that the analysis can account for changes related to demographics, occupation, labor earnings and transfers, pensions, and other nonlabor income sources. The results show that for the majority of countries in the sample, the most important contributor to the observed decline in inequality has been the relatively strong growth in labor earnings at the bottom of the income distribution. In particular, most of the reduction in inequality can be attributed to an increase in earnings per hour for the bottom of the income distribution. The paper also contributes to the literature on inequality in Latin America by providing the Shapley-Shorrocks value of this decomposition.
Decomposition --- Emerging Markets --- Inequality --- Labor Policies --- Poverty Impact Evaluation --- Poverty Reduction --- Private Sector Development --- Services & Transfers to Poor --- Social Protections and Labor
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Poor health at birth has negative long-run effects on individual well-being and is also detrimental for intergenerational mobility. This paper examines whether health outcomes at birth are affected by in utero increased exposure to rainfall and temperature shocks in Colombia, one of the countries in the world with the highest incidence of extreme weather events per year. The paper uses a fixed effects design to gauge the causal effect using variation in fetal exposure to these shocks by municipality and date of birth. The analysis finds negative effects of temperature shocks on birth health outcomes and no effect of rainfall shocks. The results indicate that heat waves lead to a 0.5 percentage point reduction in the probability of being born at full term and a decline of 0.4 percentage point in the probability of newborns classified as healthy. The timing of exposure to the shock matters and it matters differently for different outcomes. These findings are critical to prioritize responses to counteract the negative effects of weather, particularly hot shocks, which are projected to become more frequent and intense with changing climate.
Birth Health --- Education --- Environment --- Gender --- Gender & Health --- Health Monitoring & Evaluation --- Health, Nutrition and Population --- Population Policies --- Social Protections and Labor --- Weather Shocks
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What are the impacts of expanding mobile broadband coverage on poverty, household consumption and labor market outcomes in developing countries? Who benefits from improved coverage of mobile internet? To respond to these questions, this paper applies a difference-in-differences estimation using panel household survey data combined with geospatial information on the rollout of mobile broadband coverage in Tanzania. The results reveal that being covered by 3G networks has a large positive effect on total household consumption and poverty reduction, driven by positive impacts on labor market outcomes. Working age individuals living in areas covered by mobile internet witnessed an increase in labor force participation, wage employment, and non-farm self-employment, and a decline in farm employment. These effects vary by age, gender and skill level. Younger and more skilled men benefit the most through higher labor force participation and wage employment, while high-skilled women benefit from transitions from self-employed farm work into non-farm employment.
Broadband --- Consumption --- Employment and Unemployment --- Inequality --- Information and Communication Technologies --- Information Technology --- Internet Access --- Labor Force Participation --- Poverty Reduction --- Social Protections and Labor --- Wages, Compensation and Benefits --- Welfare
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