Fields of Study and the Earnings Gap by Race in Brazil

Workers with tertiary education in Brazil earn three times more than those with a lower level of schooling. Thus, the attainment of a bachelor's or graduate degree by a black worker usually provides important benefits at the individual level. However, an educational improvement of this type does not assure equal labor market outcomes relative to white workers with the same level of education. The labor earnings differential by race in Brazil is high even among individuals who completed at least a bachelor's degree. This paper investigates this labor earnings gap, emphasizing the unequal distribution of whites and blacks across fields of study. Evidence indicates that disparities in the distribution of racial groups across fields of study help explain 18% of the total median earnings differential in 2000 and 33% in 2010, accounting for most of the gap between white and black workers due to characteristic effects in this latter period.     

Interest rate changes and the timing of debt issues

There is much recent interest in the role of market timing in firm financial decisions. Using a large detailed sample of corporate public debt issues, private placements, Rule 144A issues and bank loans over the period 1970–2006, we investigate the relationship between interest rate changes and issues of floating and fixed-rate debt. Our results indicate that both past and future rates are associated with issuance decisions. We examine whether firms are able to lower their cost of capital by anticipating future rate changes, controlling for firm characteristics and market conditions. Our findings suggest that evidence of timing success is dependent on the time interval and type of debt examined. Over the longest time intervals available in our data, we do not find evidence of timing ability for fixed-rate or floating-rate debt issues.     

A THEORETICAL APPROACH TO STERILIZED FOREIGN EXCHANGE INTERVENTION

In this paper, we survey prominent theories that have shaped the literature on sterilized foreign exchange interventions. We identify three main strands of literature: (1) that which deems interventions futile; (2) that which requires some market friction (i.e. limited arbitrage) in order for interventions to be effective; and (3) that which advocates the use of interventions as long as they convey signals on the stance of future monetary policy. We contribute to the literature in three important ways. First, by reviewing new theoretical models that have surfaced within the last decade. Second, by further penetrating into the theory of interventions in order to analyze the key features that make each model distinct. And third, by only focusing on sterilized operations, which allows us to sidestep the effects induced by changes in the stock of money supply. In addition, the models that we present comprise both a macro and microstructure approach so as to provide a comprehensive view of the theory behind exchange rate intervention.     

Peasant differentiation and service provision in Colombia

This paper contributes to agrarian debates through a discussion of the interactions between the interests and incentives of the rural classes, focusing especially on the leadership exercised by middle‐size farmers. In the recent past, class analysis associated with Marxism has given way to models of individual rational maximization, not least because of the lack of specific findings about the effects of peasant differentiation beyond the dichotomous class conflict between peasants and landlords. Information has replaced asset distribution as the main factor affecting effective governance and service provision. According to these theories, politicians did not deliver less because they were responding to the preferences of the large landowning classes, or because seemingly competitive elections were games of rotating chairs within a single dominant class but, rather, because the voters did not have enough information about the candidates and programmes. I bring the discussion back to peasant differentiation and class endowments using the case of communal action boards in Colombia, showing how the demand for information on candidates and developmental resources matters, but is dependent on class structures. I suggest that different rural groups access, use, and manipulate information with differing aims, and that the rural middle class is a fundamental actor in the demand for public goods.     

The effects on insurance costs of restricting undocumented immigrants' access to driver licenses

Proponents of issuing driver licenses to undocumented immigrants argue that the number of uninsured motorists and car accidents would decrease, thus improving public safety and lowering costs associated with car insurance. This study gives an overview of competing cost reduction and public safety arguments and examines the issues surrounding undocumented immigrants and driver licenses. It empirically assesses the effect on the average cost of auto insurance of restricting undocumented access to legal driving documents. We use a fixed effects model for panel data to test the effects on real average insurance expenditures of restricting undocumented immigrants' access to driver licenses, while controlling for other relevant factors suggested in the literature. Our main finding is that on net such restrictions raise the average annual cost of auto insurance by an estimated $17.22 ($2009) across states that have enacted such restrictions.     

Government policy in the formal and informal sectors

The paper quantitatively investigates, in general equilibrium, the interaction between the firms' choice to operate in the formal or the informal sector and government policy on taxation and enforcement, given a level of regulation. A static version of Ghironi and Melitz's (2005) industry model is used to show that firms with lower productivity endogenously choose to operate in the informal sector. I use cross-country data on taxes, measures of informality, and measures of regulation (entry and compliance costs, red tape, etc.) to back out how high the enforcement levels must be country by country to make the theory match the data. The welfare gains from policy reforms are on average 1.2% (measured in terms of consumption) for OECD countries. I also find that the welfare gains from reducing regulation are on average 2.1%. Finally, performing a similar decomposition to that of Hall and Jones (1999), I find that distortions associated with informality account for a factor of 1.5 of the output per capita difference between the richest and the poorest countries.     

Adaptation of Agroforestry Systems in South-Eastern Mexico through Integration of Farmer and Bioeconomic Evaluations

Agroforestry systems have been promoted as sustainable land-use systems for regions where shifting agriculture is the traditional predominant land-use. Although environmentally sustainable, agroforestry systems require investment to establish that may affect their economic sustainability. In the southern Yucatan Peninsula 47 agroforestry plots of two timber and 10 fruit tree species were established with 22 farmers in three communities covering two rainfall zones and five soil types. Some fruit trees had wide adaptability to different soil, rainfall and management conditions, e.g. Manilkara zapota; others were restricted to the best soil, rainfall management conditions, e.g. Persea americana. The Meliaceae timber trees responded little to rainfall and soil, but stem borer attack was markedly lower in less intensively managed systems. Level of system maintenance greatly affected costs, but also opportunities for intercropping and obtaining immediate income. All levels of managements had negative net present value (NPV) for the three-year establishment phase, but so does traditional maize production. Farmers preferred to inter-crop their agroforestry systems, but were often limited by site quality. Determining sustainable agroforestry options for farmers requires multiple decisions related to species adaptability to the site, farmer production objectives and farmer capacity to invest in different management strategies. One production technology did not fit all.     

REGIONAL SHORT-RUN EFFECTS OF TRADE LIBERALIZATION IN BRAZIL

We use a single-country multi-regional computable general equilibrium model to evaluate regional short-run impacts of reduction in import tariffs resulting from recent free trade area agreements, on poverty and distribution of income in Brazil. Results show that trade can reduce inter-regional income inequality, but poor urban households lose with trade liberalization. Trade policy alone is not sufficient for achieving more equitable income distribution goals in Brazil. Without greater investment in human and physical capital, incomes in most regions of Brazil are likely to lag behind incomes in the South/Southeast, the most developed regions in the country.