Distortions, Infrastructure and Labor Supply in Latin American Countries
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 differ-´ ences 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 fore these facts. I conclude that the price of household appliances and access to infrastructure are quantitatively important in explaining cross-country labor supply differences.
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