This paper introduces a model in which greater inequality reduces growth in economies with low levels of financial development but that this effect is attenuated in economies with more developed systems. The model also predicts that individuals in economies with developed financial markets have a higher tolerance to inequality. Using a panel dataset that covers a large number of countries, this paper shows empirical evidence that is consistent with the main predictions of the model. Overall, this paper's major findings highlight that some of the pernicious effects of inequality can be attenuated by improving access to credit. (JEL D3, E6, P1, O4, I2)
We use data from Chile's targeted voucher program to test the effects of vouchers on school results. Targeted vouchers have delivered extra resources to low-income, vulnerable students since 2008. Moreover, under this scheme, additional resources are contingent on the completion of specific education reforms. Using a differencein-differences approach and a market-level empirical analysis, we find a positive and significant effect of vouchers on standardized test scores. Additionally, our results highlight the importance of conditioning the delivery of resources to some specific academic goals in markets with institutional characteristics that prevent public schools from behaving as profit-maximizing firms.
Artículo de publicación ISIPublic school teachers are usually paid according to centralized earning schedules, in which their income depends mainly on experience. By contrast, in private schools, there is high wage dispersion, and salaries correspond mainly to teachers' performance. That dichotomous labour regulation encourages teachers with better unobservable skills to self-select into private schools because the likelihood of earning higher wages is higher than in public schools. The other side of the coin is the self-selection of 'bad' teachers into public schools. Using a representative sample of Chilean teachers, we estimate a two-sector Roy model to test self-selection. We find evidence of negative self-selection of teachers into public schools
RESUMENDes de fi nes de 1998 la eco no mía chi le na se de sa ce le ró mu cho. Si en tre 1988 y 1998 la ta sa de cre ci mien to pro me dio al can zó 7.8%, du ran te el pe rio do pos cri sis asiá ti ca fue de só lo 3.7%. Sin em bar go, jun to con la de sa ce le ra ción del cre ci mien to, la vo lati li dad de la eco no mía se re du jo prác ti ca men te a la mi tad.Este tra ba jo in ves ti ga, me dian te un aná li sis em pí ri co for mal, el pa pel que tu vieron la in tro duc ción de la flo ta ción cam bia ria y la uti li za ción de la re gla de su pe rá vit es truc tu ral en trans for mar a Chi le en una eco no mía me nos vo lá til. Nues tros re sulta dos mues tran que la in tro duc ción de la re gla fis cal pa re ce ha ber re du ci do en un ter cio la vo la ti li dad del cre ci mien to del PIB. Por su par te, la flo ta ción cam bia ria con tri bu yó a re du cir esa vo la ti li dad adi cio nal men te en al re de dor de un cuar to. Así, en con jun to, am bas me di das apa re cen co mo res pon sa bles de ha ber dis mi nui do la vo la ti li dad del cre ci mien to de la eco no mía chi le na en ca si 60%. Estos re sul ta dos son ro bus tos ante otras es pe ci fi ca cio nes y po si bles po ble mas de en do ge nei dad en al gu nas de las va ria bles ex pli ca ti vas.
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