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Household Responses to Adverse Income Shocks in Latin America

  • Gaviria Alejandro

    ()

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 labor 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 move 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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File URL: http://economia.uniandes.edu.co/revistadys/Articulo49_2.pdf
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Article provided by UNIVERSIDAD DE LOS ANDES-CEDE in its journal REVISTA DESARROLLO Y SOCIEDAD.

Volume (Year): (2002)
Issue (Month): (March)
Pages:

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Handle: RePEc:col:000090:004100
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  1. Alejandro Gaviria & Carmen Pagés-Serra, 1999. "Patterns of Crime Victimization in Latin America," IDB Publications (Working Papers) 4124, Inter-American Development Bank.
  2. Nora Lustig, 2000. "Crisis and the Poor: Socially Responsible Macroeconomics," ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
  3. 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.
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