Household Responses to Adverse Income Shocks in Latin America

Alejandro Gaviria

No 1417, IDB Publications (Working Papers) from Inter-American Development Bank

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 back on human capital investments, (ii) that poor households are the most likely to be affected by adverse income shocks, and (iii) that lower-middle-class households are more likely to cut back on 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 that target the poor.

Keywords: WP-455 (search for similar items in EconPapers)
Date: 2001-07
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://publications.iadb.org/publications/english ... in-Latin-America.pdf (application/pdf)

Related works:
Journal Article: Household Responses to Adverse Income Shocks in Latin America (2002)
Working Paper: Household responses to adverse income shocks in Latin America (2001)
Working Paper: Household Responses to Adverse Income Shocks in Latin America (2001)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:idb:brikps:1417

Access Statistics for this paper

More papers in IDB Publications (Working Papers) from Inter-American Development Bank Contact information at EDIRC.
Bibliographic data for series maintained by Felipe Herrera Library ().