Household Responses to Adverse Income Shocks in Latin America

Alejandro Gaviria

Revista Desarrollo y Sociedad, 2002

Abstract: This paper uses a new data set to study household responses to adverse income shocks in seven Latin American countries. The results show (i) that households respond to income shocks mainly by increasing their labor force participation, selling assets, and cutting on human capital investments, (ii) that poor households are most likely to be affected by adverse income shocks, and (iii) that lower-middle class households are more likely to cut back human capital investments and move abroad when faced with an adverse income shock. Taken together, these results offer ample justification for publicly funded safety nets targeted at the poor.

Keywords: Social safety nets; targeting of public programs; coping strategies (search for similar items in EconPapers)
JEL-codes: D10 H31 O54 (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (7)

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http://economia.uniandes.edu.co/revistadys/Articulo49_2.pdf

Related works:
Working Paper: Household responses to adverse income shocks in Latin America (2001)
Working Paper: Household Responses to Adverse Income Shocks in Latin America (2001)
Working Paper: Household Responses to Adverse Income Shocks in Latin America (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:col:000090:004100

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