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Building Up Local Productivity: Infrastructure and Firm Dynamics in Mexico
Get PDFWhat determines the aggregate and distributional effects of new transportation infrastructure? One key overlooked channel is the role that infrastructure policy plays in changing the incentives of firms to enter, exit, and grow--in turn generating endogenous changes in local productivity. In this paper, we document and quantify the importance of this channel by using detailed Mexican microdata and a spatial general-equilibrium model that incorporates firm dynamics. Leveraging random delays in the construction of highways, we empirically show that productivity grows in places with better transportation infrastructure. Firms play a critical role in driving these results: highways increase firms\u27 size, entry rates, survival rates, and total factor productivity. Then, by calibrating our model on census data between 1998 and 2018, we find that new highways over this period increased welfare and income by half a percent, similar to its costs in terms of GDP. Moreover, we find substantial spatial reallocation of workers and production. Nearly half of these effects are explained by endogenous changes in local productivity, which is driven by firm dynamics
Care Across the Life Cycle: Building Care Systems in Latin America and the Caribbean
Get PDFThis note presents the definition, relevance, and objectives of a care system from the perspective of both care recipients and providers. It also outlines a menu of care interventions for targeted populations throughout peoples life cycle and highlights policy areas where the Inter-American Development Bank (IDB) can support the sector throughout Latin America and the Caribbean. The note is organized as follows. After an introduction, Section 2 discusses the objectives, institutional organization, and financing of care systems. Section 3 analyzes the subsystems that provide care services for children, people with disabilities, and older people with care needs, describing key interventions or policies where IDB can help countries in the region strengthen their care system activities. Finally, Section 4 presents programs and policies focused on caregivers and the IDBs work in this area
General Skills Training for Public Employees: Experimental Evidence on Cybersecurity Training in Argentina
Get PDFCyberattacks have risen to become one of the most critical global risks. Despite increasing investments to combat cyberattacks, there remains a significant, often unnoticed vulnerability: employees. Previous literature reveals that over two-thirds of cyberattacks within organizations result from employee negligence. While strengthening cybersecurity through employee training is essential, traditional methods often fall short. In this study, we tested different approaches to reduce risk exposure to phishing, one of the most common types of cyberattacks, focusing on a sector and context unaddressed by previous literature: the public sector in a developing country (Argentina). We randomly allocated 1,918 public servants to a control group and two treatment groups to compare the effectiveness of online trainingcommonly used to promote behavior changes on ancillary workplace topics such as ethics, discrimination, and data protectionversus a "learning-by-doing" approach, which involved sending repeated phishing emails followed by educational emails. Our findings indicate that the learning-by-doing approach is superior for enhancing phishing email detection, resulting in fewer phishing emails opened, fewer clicks on phishing links, and improved reporting of suspicious emails. This strategy is particularly effective among permanent public officials compared to contractors, as well as among female employees. These findings not only inform organizational cybersecurity practices but also have broader implications for influencing employee behavior on other important workplace topics
Impact Evaluation of Salud Mesoamerica Initiative on Adolescent Fertility in Costa Rica
Get PDFThis study investigates the effect of a large-scale comprehensive intervention in Costa Rica aimed at reducing adolescent pregnancy among the poorest districts by integrating reproductive health services into the national health system with an intersectoral approach. The model was designed and developed under Salud Mesoamerica Initiative, an innovative public-private partnership that sought to improve reproductive, maternal and child health services among the poorest in the Mesoamerican region. Using a difference-in-differences approach and district-level vital records from 2000-2019, findings reveal a significant reduction in adolescent fertility rates for those aged 10 to 19 (11.3% reduction relative to the pre-treatment mean), particularly among females aged 10-14 (24% reduction relative to the pretreatment mean). Our findings provide valuable lessons on how primary care systems of low-middle income countries could address the sexual and reproductive health needs of adolescents which are often an underserved population
Analysis of Agricultural and Fisheries Policies in Belize: Quantification of Support and its Relationship to Greenhouse Gas Emissions in 2015-2022
Get PDFThis study provides an updated analysis of agricultural policies in Belize, utilizing the OECD\u27s Producer Support Estimate (PSE) methodology for the period 2015-2022. During this time, the agricultural sector contributed an average of 8.4% to Belize\u27s GDP, growing by 25%, largely driven by animal production. The Total Support Estimate (TSE) increased from BZ97.5 million in 2022, primarily due to a rise in transfers to individual producers (PSE). However, the percentage TSE decreased from 2.1% to 1.7% as GDP growth outpaced TSE growth. Despite this, Belize\u27s agricultural sector remained one of the most supported by public policies in the region, ranking behind Jamaica and Guyana. The percentage PSE averaged 15.8% of farm receipts, higher than in most countries in Latin America and the Caribbean. Market Price Support (MPS) was the largest component of the PSE, accounting for 94% of the total, mainly due to trade protections for domestic poultry producers. Additionally, the percentage General Services Support Estimate (GSSE) averaged 12% of the TSE but declined significantly from 26.8% in 2015 to 4.7% in 2022, primarily because of the conclusion of the EU-funded Sugar Accompanying Measures. Moreover, the percentage Consumer Support Estimate (CSE) was -27% during the period. This study also introduces the first analysis of fisheries policies in Belize, employing the OECD\u27s Fisheries Support Estimate (FSE) methodology. The percentage FSE averaged 5.9% of total landings over the period, with 98% of the support provided through budgetary transfers to fishers collectively (GSSE). Belize FSE ranked lower than most regional countries, exceeding only Mexico, Chile, and Argentina. Finally, the study examines the potential contribution of agricultural support policies to greenhouse gas (GHG) emissions. Agricultural policy support was concentrated on poultry, bananas, rice, and pigmeat, which are responsible for only 4.36% of total agricultural GHG emissions. This indicates a weak correlation between agricultural policy support and emissions levels by product. The study concludes with recommendations to gradually reduce dependence on MPS, prioritize less distortive forms of support, and strengthen efforts in data collection and policy evaluation
The Costs of Crime and and Violence: Expansion and Update of Estimates for Latin America and the Caribbean
Get PDFCrime and violence are an obstacle to development in Latin America and the Caribbean, affecting individuals, businesses, and governments. This paper updates previous studies, estimating the direct costs of crime in 22 countries in the region, which amounted to 3.4 percent of GDP in 2022. These costs include the loss of human capital due to homicides, security spending by businesses, and public spending on crime prevention. The study also reviews and summarizes recent literature on indirect costs, such as the effects on economic growth, investment, business productivity, health, and the environment. It also incorporates three additional analyses that explore the impact of crime on tourism, migration, and productivity. Taken together, these findings provide a comprehensive view of the consequences of crime and violence for societies in the region
Shifting Perceptions in School Choice: The Impact of Presenting High-quality Schools first in Recifes Centralized Admission System
Get PDFThe potential efficacy of centralized school choice systems in reducing inequalities in access to high-quality schools may be hindered by informational frictions. In this paper, we experimentally evaluate a low-cost information intervention in the centralized school admission system (Matrícula Digital) of Recife, Brazil. The intervention modified how school vacancies were initially displayed on the application platform: the treatment group first saw schools listed by quality; the control group first saw them ordered by proximity to the student\u27s home, i.e., the default order. We focus on students applying to first grade, the level with the highest participation rate since all pupils entering the municipal school system must go through this process. We find no overall effect of the school ordering change on the quality of the schools selected. However, when we restrict our analysis to students who live near at least one of the top three schools on the list, we observe a significant positive effect. This effect weakens as distance from home increases. Our findings indicate the importance of school quality in relation to proximity to the students residence. This conclusion is supported by a parental survey conducted after admissions, in which 80% of respondents indicated that proximity was the most important factor in their school choice. These results have considerable implications for the design of effective educational information interventions
Womens Development and Leadership. Guide to Promote Gender Equality in Latin American and Caribbean Companies: Dimension 3
No full textWomen\u27s development and leadership is one of the eight dimensions of the Guide to promote gender equality in Latin American and Caribbean companies. This guide aims to provide direction to the business sector in designing and implementing measures that promote equal opportunities for men and women in workplace environments. It includes evidence, supporting tools, and both regional and international case studies. Additionally, it offers clear roadmaps with flexible recommendations adaptable to diverse business contexts and needs
Inclusive Product and Service Design. Guide to Promote Gender Equality in Latin American and Caribbean Companies: Dimension 7
No full textInclusive product and service design is one of the eight dimensions of the Guide to promote gender equality in Latin American and Caribbean companies. This guide aims to provide direction to the business sector in designing and implementing measures that promote equal opportunities for men and women in workplace environments. It includes evidence, supporting tools, and both regional and international case studies. Additionally, it offers clear roadmaps with flexible recommendations adaptable to diverse business contexts and needs
Research Insights: How Does Buyer Market Power Influence Exchange Rate Pass-through in International Trade?
Get PDFIn developing countries, such as most Latin American nations, a small number of large foreign buyers dominate exports, exerting significant market power. Due to their market power, different buyers for identical products can end up with varying prices, influenced by the buyers power. Larger buyers often receive prices with markdowns (discounts). In concentrated markets, buyers act as a buffer against exchange rate shocks. Markets dominated by powerful buyers exhibit lower sensitivity of local currency prices to exchange rate fluctuations