Acute morbidity and labor outcomes in Mexico: Testing the role of labor contracts as an income smoothing mechanism

Gutiérrez, Federico H.

doi:10.1016/j.jdeveco.2014.05.009

Cited by 4 publications

(8 citation statements)

References 22 publications

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“…Health shocks are common in the developing world, and frequently severe enough to impair a worker's earning ability (Strauss and Thomas 1998). While formal sector contracts may insure workers against income loss due to health shocks (Gutierrez 2014), casual wage workers and the self-employed are not typically insured against such shocks. Furthermore, if the financial cost of treatment for injury or illness is high and few households have full insurance against these costs, then these income shocks occur at the same time that a typical household's marginal utility of income has increased.…”

Section: Introductionmentioning

confidence: 99%

Labor Supply Responses to Health Shocks: Evidence from High-Frequency Labor Market Data from Urban Ghana

Heath¹,

Mansuri²,

Rijkers³

2019

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

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Section: Introductionmentioning

confidence: 99%

Labor Supply Responses to Health Shocks: Evidence from High-Frequency Labor Market Data from Urban Ghana

Heath¹,

Mansuri²,

Rijkers³

2019

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“…These results are consistent with Dercon and Krishnan's (1996) view where relatively poor households are constrained in their ability to secure low-risk income by factors such as human capital and location. They also provide complementary evidence to Gutierrez's (2014) result that salaried employment in middle-income countries serves an important, though under-researched, role in reducing income risk.…”

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confidence: 70%

“…In the first study of income smoothing in a middle-income country that I am aware of, Gutierrez (2014) identifies the insurance function served by salaried employment. The present paper contributes to this emerging strand of the literature by presenting further evidence on the distribution of income risk from a middle-income context with a set of village households at a relatively advanced stage of economic development and more diversified income activities.…”

Section: Shababmentioning

confidence: 99%

“…Using the same data, Kochar (1999) finds that when faced with crop failure, poor households that cannot protect consumption by borrowing divert labor from farm employment to off‐farm employment, thereby mitigating variation in their income streams. In the first study of income smoothing in a middle‐income country that I am aware of, Gutierrez (2014) identifies the insurance function served by salaried employment. The present paper contributes to this emerging strand of the literature by presenting further evidence on the distribution of income risk from a middle‐income context with a set of village households at a relatively advanced stage of economic development and more diversified income activities.…”

Section: Literature Reviewmentioning

confidence: 99%

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Local droughts and income risk among Thai households

Shabab

2021

Review Development Economics

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“…Coelho et al (2012) illustrate the latter effect in Brazil, where banks were allowed to offer loans with repayment through automatic payroll deduction, which resulted in a reduction in interest rates and higher volumes of consumer credit. Gutierrez (2014), in turn, shows that formal labor contracts in Mexico reduce wage fluctuations and serve as income smoothing mechanisms against productivity and other shocks. The programs' positive impact on formal employment could thus facilitate the use of consumer credit, which would imply that the effects of training go beyond those currently explored by the literature.…”

Section: Introductionmentioning

confidence: 99%

Youth Training Programs Beyond Employment. Experimental Evidence from Argentina

2014

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in September 2014 AbstractYouth training programs and their evaluations are ubiquitous, yet there is relatively little evidence on the mechanisms through which they operate and their effect on outcomes beyond the labor market. This is the motivation of our study of entra21 , a job training program for low income youth in Cordoba, Argentina. The program included life-skills and vocational training, as well as internships with private sector employers. Participants were allocated by means of a public lottery. We rely on detailed monthly administrative records for program participants, from which we construct a panel dataset including formal employment status, employment spells, earnings and welfare participation. These administrative records allow us to establish the effects of the program in the short term (18 months), but also -exceptionally for programs of this type in Latin America -in the medium term (36 months). The results indicate sizable gains of about 8 percentage points in formal employment in the short term (about 32% higher than the control group), although these effects tend to dissipate in the medium term. Contrary to what has been found for similar programs in the region, the effects of entra21 are substantially stronger for men, for whom the effects persist in the medium run. A dynamic analysis of employment transitions indicates that the program operates through an increase in the persistence of formal employment rather than from more frequent entries into employment. Program participants also exhibit earnings up to 50% higher than those in the control group, and an analysis of bounds indicates that these gains result from both higher employment levels and higher wages. The higher persistence and higher earnings suggest that the program was successful in increasing the human capital of participants rather than (or in addition to) providing contacts or formal intermediation. With respect to results beyond employment, women selected for the program exhibit lower levels of welfare dependencyyounger participants (aged 18 to 24) are less likely to receive child-related public cash transfers over the whole period of analysis. Finally, we present original evidence on the relationship between formal employment and consumer credit use. Program participants exhibit a higher probability of having requested consumer credit, and a higher probability of holding bank debts in good standing. These results indicate that training a...

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Acute morbidity and labor outcomes in Mexico: Testing the role of labor contracts as an income smoothing mechanism

Cited by 4 publications

References 22 publications

Labor Supply Responses to Health Shocks: Evidence from High-Frequency Labor Market Data from Urban Ghana

Labor Supply Responses to Health Shocks: Evidence from High-Frequency Labor Market Data from Urban Ghana

Local droughts and income risk among Thai households

Youth Training Programs Beyond Employment. Experimental Evidence from Argentina

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