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Distortions, Infraestructure and Labor Supply in Latin American Countries

Author

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  • Germán Cubas

    () (Banco Central del Uruguay
    Departamento de Economía. Facultad de Ciencias Sociales. Universidad de la República (Uruguay))

Abstract

I document differences in labor supply between a set of Latin American countries and the U.S. in the period 1990-2005. These differences are mostly explained by large differences in female labor supply. In the U.S. the female labor force participation was 69% by 1990, while in Brazil and Mexico was 39% and 37%, respectively. Females began to participate more in the labor market of these countries when more households acquired access to basic infrastructure and when distortive policies affecting the price of household appliances were partially removed. I use a model of home production with endogenous labor force participation to account for these facts. I conclude that the price of household appliances and access to infrastructure are quantitatively important in explaining cross-country labor supply differences.Length: 38 pages

Suggested Citation

  • Germán Cubas, 2010. "Distortions, Infraestructure and Labor Supply in Latin American Countries," Documentos de trabajo 2010007, Banco Central del Uruguay.
  • Handle: RePEc:bku:doctra:2010007
    as

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    File URL: https://www.bcu.gub.uy/Estadisticas-e-Indicadores/Documentos%20de%20Trabajo/7.2010.pdf
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    References listed on IDEAS

    as
    1. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 83-116.
    2. Edward C. Prescott, 2004. "Why do Americans work so much more than Europeans?," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Jul, pages 2-13.
    3. Restuccia, Diego & Urrutia, Carlos, 2001. "Relative prices and investment rates," Journal of Monetary Economics, Elsevier, vol. 47(1), pages 93-121, February.
    4. Richard Rogerson, 2009. "Market Work, Home Work, and Taxes: A Cross-Country Analysis," Review of International Economics, Wiley Blackwell, vol. 17(3), pages 588-601, August.
    5. Harold L. Cole & Lee E. Ohanian & Alvaro Riascos & James A. Schmitz, 2006. "Latin America in the rearview mirror," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Sep.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Labor Force Participation; Latin America; Policy Distortions; Household Appliances;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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