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Subsidy Targeting and Water Affordability: Insights from Colombia\u27s Urban Centers
Full text linkWater affordability is a critical issue for achieving Sustainable Development Goals (SDGs), including access to clean water and sanitation for all. Countries in Latin American and the Caribbean are doing relatively well in terms of access to water. However, evidence on water affordability is rather scarce in the region. This paper draws on the literature on water economics on water affordability and subsidy targeting performance to evaluate the nexus between these two dimensions in the capitals of the 32 departments in Colombia. We show that a substantial portion of the population in the cities devote more than the international standard threshold for water affordability to pay for tap water. Yet, the specific structure of tariffs (in particular to what pertains to subsidies) exhibits an intimate relationship with affordability concerns. More progressive benefit incidence indices tend to reduce the share of income devoted to water expenses, while increases in the beneficiary incidence index reflecting the extent to which low-income households are left out of subsidy programs exacerbate affordability problems. Larger subsidies both in terms of their monetary value and the way they are distributed across household categories can unintentionally increase the financial burden on higher-income households, leading to greater affordability challenges. Moreover, our paper finds that households headed by women, ethnic minorities, singles, and the unemployed facing higher odds of water unaffordability. Our analysis underscores the necessity of taking into account subsidy targeting performance to design more effective interventions that ensure equitable access to affordable water for all households
Sibling Correlations in Schooling around the World: A New Database
Full text linkWe estimate sibling correlations in schooling (i.e., the fraction of inequality in educational outcomes that can be attributed to factors shared by siblings) for 94 countries, accounting for 85% of the world population. With this new database, we document several findings. On average, at least 51% of the inequality in schooling can be explained by shared family background. There are large regional differences, with North America and South Asia displaying the lowest and highest sibling correlations, respectively. There is important heterogeneity within some regions. The average sibling correlation has been decreasing across cohorts, mainly driven by North America and Latin America and the Caribbean region. Across countries, educational mobility appears to be strongly correlated with several social and economic variables
Research Insights: Do Consumers Respond to the Average or Marginal Price of Their Water Bills?
Full text linkConsumers do not adjust their water usage to stay just under the limits where the marginal price goes up in their water bills, suggesting they are not actively watching those thresholds to save money. Households consistently using water within the lowest bracket reduce their usage when fixed fees (and thus average prices) rise, even though their marginal price remains zero. Overall, consumers seem to base their decisions on the total average price rather than on the marginal price per unit, suggesting that policies and analyses should focus on average price responsiveness
Using Screening Assessments to Recruit Effective Teachers: Experimental Evidence from Ecuador
Full text linkSince 2007, the Ecuadorian government has required teacher candidates to pass cognitive and knowledge tests before they are allowed to participate in merit-based competitions for tenured positions. We evaluate this policy by linking administrative teacher information to data from an experimental study that randomly assigned nearly 13,000 children to their teachers. We find that test-screened tenured teachers had a significant effect of at least 10.5 percent of a SD on language learning outcomes. Although the recruitment tests screened candidates with higher cognitive skills, the classroom practice instrument used in the competitions appears to have helped identify the most effective teachers
Regulation, Competition, and Market Power in Telecommunications across Latin America
Full text linkThis study examines the regulatory landscape and competitive dynamics in the telecommunications industry of five key Latin American countries: Colombia, Peru, Mexico, Brazil, and Chile. Focusing on market concentration analysis and the identification of regulatory policies that may impact market competitiveness, the research aims to contribute insights to the discussion about telecommunications policy in the region. This article encompasses the analysis for both fixed and mobile services for each country in the sample. Using descriptive analysis, I explore potential relationships among the evolution of key variables, offering evidence on the intricate interplay between regulation, competition, and market power in the Latin American telecommunications industry. Preliminary findings reveal a remarkable market concentration in mobile services and a somewhat lower yet significant concentration in fixed services. Quantitative reduced-form evidence supports expected impact of certain regulations on key market indicators across the region
Plan for the Creation of an Entrepreneurial Ecosystem for Long-Term Care in Latin America and The Caribbean
Full text linkThe long-term care sector is an important part of the silver economy. In this sector, given the rapid aging of the population, significant business opportunities are generated. Likewise, there are opportunities for innovation both from the business sector and from civil society organizations (which are important providers of these services). Governments, particularly at the local level, can take advantage of this opportunity in the care economy, with the dual objective of improving the quality of life for older people and their families, and promoting employment and economic growth. To do this, they can support the construction of an entrepreneurial ecosystem in the long-term care sector. This report presents an analysis of the key elements for building the aforementioned ecosystem. The target audience is policymakers at different levels of government, including municipalities, which in many cases are responsible for organizing the sector. The analysis is complemented by a tool that allows policymakers to assess the progress of ecosystem construction in their territory. This tool analyzes five dimensions of the ecosystem: regulatory framework, entrepreneurial financing, entrepreneurial culture, support structures, and human resources. The tool highlights key opportunities (low hanging fruits), which are the most strategic and high-value interventions but relatively easy to implement. These include, for example, the creation of public or private digital portals to facilitate the meeting of supply and demand, the definition of a standardized contract for the paid caregiver at home, and the offer of training for caregivers
Artificial Intelligence Framework for the Inter-American Development Group
Full text linkArtificial intelligence (AI) has the potential to become a transformative general-purpose technology, reshaping economic, social, and institutional frameworks globally. The Inter-American Development Bank Group (IDBG) recognizes the urgency of fostering AI adoption in Latin America and the Caribbean to catalyze productivity, inclusion, and sustainable development. This document provides a high-level strategic framework to guide IDBGs interventions in advancing AI adoption and responsible use across the region. The document reviews key challenges facing the three dimensions of AI institutions and governance; data and infrastructure; and human capital and how to overcome these challenges to build AI ecosystems and accelerate innovation and adoption in both the public and private sectors. By addressing structural barriers such as uneven digital infrastructure, limited data availability, and insufficient skills, this framework seeks to create conditions for ambitious and equitable AI diffusion. Additionally, it prioritizes a research agenda targeting the impacts, obstacles, and governance of AI adoption, focusing on evidence-based policy design to leapfrog development challenges while mitigating risks of inequality and misuse. This strategic guidance aligns with the three core objectives of IDBImpact: reducing poverty and inequality, addressing climate change, and fostering sustainable regional growth
An Examination of Numerical Portability in Mobile Communication in Uruguay
Full text linkThis paper examines the effects of the introduction of mobile number portability (MNP) using data from Uruguay. MNP allows customers to switch mobile providers while retaining their phone number, thereby reducing switching costs and potentially enhancing competition. Our analysis reveals that firms responded by increasing the share of postpaid contracts, partially countering the exogenous reduction in switching costs with new endogenous barriers. We find that while market concentration increased in terms of subscriber share, it decreased for data traffic, reflecting differing customer behaviors and firms\u27 commercial strategies. Additionally, we observed reductions in mobile data prices and an increase in new mobile subscribers, suggesting that MNP contributed to overall market growth. Using a world panel of data prices for the internet we find that MNP is associated with lower prices in the range of 42-50 percent
Research Insights: How Do Urban Migrants Fare in Latin American Labor Markets?
Full text linkUrban migrants in Latin America and the Caribbean generally perform well in destination labor markets. However, female migrants and those displaced by violence or extreme weather events tend to face worse outcomes. Recent academic literature suggests little to no average impact of urban migration on non-migrant residents labor market outcomes, though effects can vary across different workforce segments. Policymakers can maximize the economic benefits of urban migration through targeted interventions such as public employment services, child care assistance policies, and programs to regularize residency status and certify professional credentials for international migrants
Building Effective Beneficial Ownership Frameworks: A Joint Global Forum and IDB Toolkit. Second Edition
Full text linkThe availability of beneficial ownership information on legal persons and arrangements (legal entities) is a key requirement of tax transparency and a key instrument in the fight against tax evasion and other financial and serious crimes, such as corruption, money laundering, and terrorist financing. The document focuses on various approaches to ensure the availability of beneficial ownership information in line with the tax transparency standards and offers practical suggestions to be taken into account when considering various policy options. It lists points that jurisdictions should examine when adapting their legislation and regulations to comply with the beneficial ownership standard. This should provide jurisdictions with relevant inputs to carry out their own internal assessment of the most suited methods for implementation, taking into account their unique legal, policy, and operational frameworks