scholarly journals From bad to worse: The economic impact of COVID-19 in developing countries. Evidence from Venezuela

2021 ◽  
pp. 1-22
Author(s):  
German Caruso ◽  
Lautaro Chittaro ◽  
Maria Emilia Cucagna ◽  
Luis Pedro Espana

Policy responses to COVID-19 affected the dynamic of eco¬nomic growth and labor markets worldwide, hitting econom¬ically harder on developing countries. These policies involved economic lockdowns that included the shutdown of the main statistical exercises, making it almost impossible to assess the breadth and variety of their effects. Using a phone survey, this paper examines the impact of the quarantine implemented in Venezuela on labor market outcomes. The identification strategy exploits the exogenous variation in the severity of the lockdown in different regions of the country. The main result indicates a 16.5 percentage points reduction in employment, while in regions with severe lockdowns the reduction has been 13.8 p.p. larger. In particular, the self-employed and informal¬ly employed were hard hit by the lockdown. To cope with this effect, households sold their productive assets, reduced their savings, sought for alternative income sources and looked for help from relatives. This paper does not find a differential ef¬fect on the number of COVID-19 cases in more severe lock¬down settings. Results are robust to endogenous migration and alternative specifications.

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Ghazala Azmat ◽  
Ştefania Simion

AbstractOver the last two decades, undergraduate university education in England moved from being state-funded and free for students, to costing all students substantial amounts in tuition fees. In this paper, using detailed administrative longitudinal microdata that follow all students attending state schools in England (approximately 95% of student population), we causally show that, despite the substantial reforms, enrollment fell only by 0.5 percentage points, where the effect is largely borne by those in wealthier groups, reducing the enrolment gap across socio-economic groups. Since tuition fees were introduced in conjunction with the government offering generous means-tested maintenance (cash) grants, as well as loans, our results highlight the importance of reducing financing constraints. Beyond enrollment, we find that the reforms have limited impact on students’ higher education choices, such as relocation decisions, university choice, and field of study. Finally, by tracking the students after graduation, we show similarly small effects on labor market outcomes.


2013 ◽  
Vol 5 (3) ◽  
pp. 91-112 ◽  
Author(s):  
Shing-Yi Wang

This paper considers the role of marriage in improving labor market outcomes through the expansion of an individual's networks. I focus on the impact of the relationship with the father-in-law on a young man's career using panel data from China. The identification strategy isolates the network effects related to a man's father-in-law by examining the post-marriage death of a father-in-law. The estimates suggest that the loss of the father-in-law translates into a decrease in a man's earnings of 7 percent. (JEL D85, J12, J31, O15, P23, P36, Z13)


2010 ◽  
Vol 8 (3) ◽  
pp. 309-319 ◽  
Author(s):  
Maarten Lindeboom ◽  
Petter Lundborg ◽  
Bas van der Klaauw

2021 ◽  
Vol 3 (2) ◽  
pp. 183-198
Author(s):  
Henrik Kleven ◽  
Camille Landais ◽  
Jakob Egholt Søgaard

This paper investigates whether the impact of children on the labor market outcomes of women relative to men—child penalties—can be explained by the biological links between mother and child. We estimate child penalties in biological and adoptive families using event studies around the arrival of children and almost 40 years of adoption data from Denmark. Short-run child penalties are slightly larger for biological mothers than for adoptive mothers, but their long-run child penalties are virtually identical and precisely estimated. This suggests that biology is not a key driver of child-related gender gaps. (JEL J12, J13, J16)


2020 ◽  
Author(s):  
Thomas Albert DiPrete ◽  
Joanna Chae

A large literature in both sociology and political science has theorized about the importance of skill formation systems for macroeconomic performance, for the transition from school to work, and for labor market outcomes. However, consensus on how countries fit into these theoretical groupings has been difficult, and empirical evidence that these groupings matter has been elusive. Focusing on labor market outcomes across twenty-one European countries, this paper demonstrates that the strength of linkage between specific educational outcomes and occupational destinations is an important source of these institutional effects. Stronger linkage is generally associated with higher relative earnings and greater chances of employment, though heterogeneity exists both across age and gender groupings and across educational levels. Country-level structure matters because it is related to the local linkage strength of pathways, even as there is considerable heterogeneity within countries in the coherence of pathways from educational outcomes to occupations. Pathway effects clearly matter, particularly in how they shape the consequences of working in an occupation that is well matched to one's educational level and field of study. The strongest evidence for macro-structural effects concerns the impact of macro-structure on the earnings gap between well-matched and not-well matched workers with non-tertiary and with upper tertiary education. The findings suggest that policies to improve labor market outcomes do not require wholesale transformations of a country's skill formation system, but instead can focus on improving pathway coherence one pathway at a time.


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