Scielo RSS <![CDATA[Latin american journal of economics]]> vol. 51 num. 1 lang. en <![CDATA[SciELO Logo]]> <![CDATA[<b>COULD AN INCREASE IN EDUCATION RAISE INCOME INEQUALITY ?</b>: <b>EVIDENCE FOR LATIN AMERICA</b>]]> This paper explores the direct effect of an education expansion on the level of earnings inequality by carrying out microsimulations for most Latin American countries. We find that the direct effect of the increase in years of education in the region in the 1990s and 2000s was unequalizing; this result is expected to hold for future expansions if increases in education are not highly progressive. Both facts are closely linked to the convexity of returns to education in the labor market. On average, the estimated impact of the education expansion remains unequalizing when allowing for changes in returns to schooling, although the effect becomes smaller. <![CDATA[<b>INFLATION TARGETING AND AN OPTIMAL TAYLOR RULE FOR AN OPEN ECONOMY</b>: <b>EVIDENCE FOR COLOMBIA 1990-2011*</b>]]> An optimal monetary policy Taylor rule is developed for an open economy, which we then estimate following a Markov regime-switching model for quarterly data from Colombia during 1990-2011. We find two opposite monetary regimes characterized by different policy rules: until October 2000 the Central Bank of Colombia reacted only statistically to output gap changes while after October 2000, when inflation targeting was officially adopted, monetary policy reacted only statistically to changes in the inflation rate. The latter regime is consistent with the Taylor principle as shown analytically and verified empirically by a unit root test for a Markov regime-switching model. <![CDATA[<b>HAS THE NATIONAL AGREEMENT FOR THE MODERNIZATION OF BASIC EDUCATION CONTRIBUTED TO IMPROVING LEVELS OF BASIC EDUCATION AND REDUCING DISPARITIES BETWEEN THE STATES?</b>]]> In 1992, Mexico's federal government signed the ANMEB agreement as part of a series of strategic public education reforms. The agreement decentralized the education system, making state governments directly responsible for providing basic public education, in an attempt to reduce marked regional disparities in educational levels. Now that sample sizes are large enough to allow reasonable empirical analysis, I examine several indicators used to measure the characteristics of education in each state. The aim is to assess whether there is sufficient empirical evidence to affirm that the agreement has contributed to improving education levels and reducing disparities among the states. <![CDATA[<b>TEENAGE PREGNANCY IN MEXICO</b>: <b>EVOLUTION AND CONSEQUENCES</b>]]> We analyze the consequences of a teenage pregnancy event in the short and long run in Mexico. Using longitudinal and cross-section data, we match females who became pregnant and those who did not based on a propensity score. In the short run, we find that a teenage pregnancy causes a decrease of 0.6-0.8 years of schooling, lower school attendance, fewer hours of work and a higher marriage rate. In the long run, we find that a teenage pregnancy results in a 1-1.2-year loss in years of education, which implies a permanent effect on education, and lower household income per capita. <![CDATA[<b>A COHORT ANALYSIS OF THE COLLEGE PREMIUM IN MEXICO</b>]]> This paper provides the first empirical evidence for Mexico about relative wage differences between college-educated and high-school-educated workers across five-year age groups. Rotating panel surveys are used to implement an imperfect substitution model for similar male workers between different age groups and between the two education groups. For the period 2005-2012, the results suggest a partial elasticity of substitution of 1.7 for college- and high-school-educated workers and a partial elasticity of substitution of about 3 across age groups. Remarkably, the wage gap between younger and older workers with the same education level increased after the economic crisis of 2008.