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Household Responses to Adverse Income Shocks in Latin America

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  • Alejandro Gaviria Uribe

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Abstract

Abstract: This paper uses a new data set to study household responses to adverse income shocks in seven Latin American countries. The results show (i) that households respond to income shocks mainly by increasing their abor force participation, selling assets, and cutting on human capital investments, (ii) that poor households are most likely to be affected by adverse income shocks, and (iii) that lower-middle class households are more likely to cut back human capital investments and moving abroad when faced with an adverse income shock. Taken together, these results offer ample justification for publicly funded safety nets targeted at the poor.

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Bibliographic Info

Paper provided by FEDESARROLLO in its series INFORMES DE INVESTIGACIÓN with number 002795.

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Length: 32
Date of creation: 01 Dec 2001
Date of revision:
Handle: RePEc:col:000124:002795

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Keywords: Ingresos de Hogares;

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References

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  1. Gaviria, Alejandro & Pages, Carmen, 2002. "Patterns of crime victimization in Latin American cities," Journal of Development Economics, Elsevier, vol. 67(1), pages 181-203, February.
  2. Alejandro Gaviria & Carmen Pagés-Serra, 1999. "Patterns of Crime Victimization in Latin America," IDB Publications 4124, Inter-American Development Bank.
  3. Nora Lustig, 2000. "Crisis and the Poor: Socially Responsible Macroeconomics," JOURNAL OF LACEA ECONOMIA, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
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Cited by:
  1. Juan José Echavarría & Enrique López & Sergio Ocampo & Norberto Rodríguez, 2011. "Choques, instituciones laborales y desempleo en Colombia," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE.
  2. Agenor, Pierre-Richard, 2002. "Macroeconomic adjustment and the poor : analytical issues and cross-country evidence," Policy Research Working Paper Series 2788, The World Bank.
  3. Jorge A. Paz, 2008. "Cambios en el ingreso del hogar y sus efectos sobre la escolaridad de menores (Argentina, 1995-2003)," Working Papers 2, Instituto de Estudios Laborales y del Desarrollo Económico (IELDE) - Universidad Nacional de Salta - Facultad de Ciencias Económicas, Jurídicas y Sociales.
  4. FIEL, Konrad Adenauer Stiftung & FIEL (ed.), 2006. "Planeando el futuro. Las familias Argentinas y sus decisiones de consumo, ahorro e inversión en capital humano," Books at FIEL, FIEL, edition 1, volume 1, number 0306.

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