Found 142 article(s) for author 'Ricardo Hausmann'

Europe’s Green Future Starts in Ethiopia

Europe’s Green Future Starts in Ethiopia. Ricardo Hausmann, February 3, 2020, Opinion, “The European Union’s ambitious new Green Deal promises to make the bloc carbon-neutral by 2050, while creating new jobs and raising living standards. But, given that Europe accounts for only 10% of global carbon emissions, the true test of its green agenda lies in its willingness to help others with their own sustainable development.Link

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You Get What You Pay For: Sources and Consequences of the Public Sector Premium in Albania and Sri Lanka

You Get What You Pay For: Sources and Consequences of the Public Sector Premium in Albania and Sri Lanka. Ricardo Hausmann, 2020, “We study the factors behind the public sector premium in Albania and Sri Lanka, the group heterogeneity in the premium, the sources of public sector wage compression, and the impact of this compression on the way individuals self-select between the public and the private sector. Similar to other countries, the public sectors in Albania and Sri Lanka pay higher wages than the private sector, for all but the most valued employees. While half of the premium of Sri Lanka and two-thirds of it in Albania are explained by differences in the occupation-education-experience mix between the sectors, and the level of private sector informality, the unexplained part of the premium is significant enough to affect the preferences of working in the public sector for different groups. We show that the compressed distributions of public sector wages and benefits create incentives for positive sorting into the public sector among most employees, and negative sorting among the most productive ones.Link

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Why Governments Should Not Wait for Godot

Why Governments Should Not Wait for Godot. Ricardo Hausmann, December 31, 2019, Opinion, “To ensure that anticipated foreign investment actually arrives, governments need organizational capabilities that go beyond Adam Smith’s maxim that they must do no more than ensure “peace, easy taxes, and a tolerable administration of justice.” They need to do at least three additional things.Link

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A Roadmap for Investment Promotion and Export Diversification: The Case of Jordan

A Roadmap for Investment Promotion and Export Diversification: The Case of Jordan. Ricardo Hausmann, Miguel Angel Santos, December 2019, Paper, “Jordan faces a number of pressing economic challenges: low growth, high unemployment, rising debt levels, and continued vulnerability to regional shocks. After a decade of fast economic growth, the economy decelerated with the Global Financial Crisis of 2008-09. From then onwards, various external shocks have thrown its economy out of balance and prolonged the slowdown for over a decade now. Conflicts in neighboring countries have led to reduced demand from key export markets and cut off important trade routes. Foreign direct investment, which averaged 12.7% of gross domestic product (GDP) between 2003-2009, fell to 5.1% of GDP over the 2010-2017. Regional conflicts have interrupted the supply of gas from Egypt – forcing Jordan to import oil at a time of record prices, had a negative impact on tourism, and also provoked a massive influx of migrants and refugees. Failure to cope with 50.4% population growth between led to nine consecutive years (2008-2017) of negative growth rates in GDP per capita, resulting in a cumulative loss of 14.0% over the past decade (2009-2018). Debt to GDP ratios, which were at 55% by the end of 2009, have skyrocketed to 94%.Link

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Why Countries Should Tax Global Income

Why Countries Should Tax Global Income. Ricardo Hausmann, December 4, 2019, Opinion, “More inclusive global growth in a world with free capital mobility does not require a “global” government that taxes and redistributes, but it does require global taxation and tax cooperation. Countries should be free to set their own taxes, but they should be required to share tax-relevant information.Link

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Female Labor in Jordan: A Systematic Approach to the Exclusion Puzzle

Female Labor in Jordan: A Systematic Approach to the Exclusion Puzzle. Ricardo Hausmann, Tim O’Brien, Miguel Santos, October 2019, Paper, “Women in Jordan are excluded from labor market opportunities at among the highest rates in the world. Previous efforts to explain this outcome have focused on specific, isolated aspects of the problem and have not exploited available datasets to test across causal explanations. We develop a comprehensive framework to analyze the drivers of low female employment rates in Jordan and systematically test their validity, using micro-level data from Employment and Unemployment Surveys (2008-2018) and the Jordanian Labor Market Panel Survey (2010-2016). We find that the nature of low female inclusion in Jordan’s labor market varies significantly with educational attainment, and identify evidence for different factors affecting different educational groups. Among women with high school education or less, we observe extremely low participation levels and find the strongest evidence for this phenomenon tracing to traditional social norms and poor public transportation. On the higher end of the education spectrum – university graduates and above – we find that the problem is not one of participation, but rather of unemployment, which we attribute to a small and undiversified private sector that is unable to accommodate women’s needs for work and work-family balance.Link

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Don’t Blame Economics, Blame Public Policy

Don’t Blame Economics, Blame Public Policy. Ricardo Hausmann, September 1, 2019, Opinion, “Engineering and medicine have in many respects become separate from their respective underlying sciences of physics and biology. Public-policy schools, which typically have a strong economics focus, must now rethink the way they teach students – and medical schools could offer a model to follow.Link

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How to Address Venezuela’s Crushing Debt Burden

How to Address Venezuela’s Crushing Debt Burden. Ricardo Hausmann, July 10, 2019, Opinion, “The legacy of Chávismo includes a mountain of foreign-currency-denominated claims against the Venezuelan public sector, totaling $150 billion, almost all of which is now in default. When Nicolás Maduro finally leaves power, how can these claims be settled while meeting the country’s desperate need for humanitarian relief and economic recovery?Link

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