Found 145 article(s) for author 'Ricardo Hausmann'

Flattening the COVID-19 Curve in Developing Countries

Flattening the COVID-19 Curve in Developing Countries. Ricardo Hausmann, March 24, 2020, Opinion, “The more contained you want the novel coronavirus to be, the more you will need to lock down your country – and the more fiscal space you will require to mitigate the deeper recession that will result. The problem for most of the Global South is that policymakers lack fiscal space even in the best of times.Link

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The impact of return migration from the U.S. on employment and wages in Mexican cities

The impact of return migration from the U.S. on employment and wages in Mexican cities. Ricardo Hausmann, March 10, 2020, Paper, “We study the effect of return migration from the U.S. to Mexico on the economies of Mexican cities. In principle, returnees increase the local labor supply and therefore put pressure on wages and employment rates of locals. However, having worked in the technologically more advanced US economy, they may also possess skills that complement the skills of local workers or even bring in new organizational and technological know-how that leads to productivity improvements in Mexico. Using an instrument based on involuntary return migration due to deportation by US authorities, we find evidence in support of both effects. Returnees affect wages of locals in different ways: whereas workers who share the returnees’ occupations experience a fall in wages, workers in other occupations see their wages rise. However, the latter, positive, effect is easily overlooked, because it is highly localized: it only affects coworkers within the same city-industry cell. Moreover, both, positive and negative, wage effects are transitory and eventually disappear. In contrast, by raising the employment levels of the industry in which they find jobs, returnees permanently alter a city’s industry composition.Link

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The Venezuela Card in the US Election

The Venezuela Card in the US Election. Ricardo Hausmann, March 2, 2020, Opinion, “As America’s campaign season heats up, President Donald Trump is using Venezuela’s tragedy as a political weapon, arguing that a similar fate awaits the US if a Democrat wins. Two can play that game, but only if the Democratic frontrunner, Bernie Sanders, reassures voters that he knows how Scandinavian “socialism” differs from Chavismo.Link

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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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