Josefina Posadas

Decentralization, Fiscal Discipline in Sub-National Governments and the Bailout Problem: The Case of Argentina

This paper examines the determinants of fiscal performance of sub-national governments in Argentina. This will be done through analysis and examination of the overall regime of incentives, through an analysis of salient episodes of `bailout` and through cross-sectional empirical analysis. The bailout episodes to be analyzed will include mostly those that occurred in the relationship between the national and provincial governments. Of primary interest will be the process that caused the crises and how both the provinces and the federal government reacted, with an emphasis on the incentives and constraints each faced. The paper will also try to explain the actual form that the bailout takes. The empirical analysis will emphasize those determinants of bailout related to the institutional design of intergovernmental fiscal institutions. Thus, the study will have direct implications regarding the strengths and weaknesses of the current institutional framework in generating sound fiscal behavior by the different levels of government.

Grandparents' Childcare and Female Labor Force Participation

In the United States, approximately 20% of employed mothers with children under 5 use grandparents as their primary source of childcare. Using the National Longitudinal Survey of Youth 1979 (NLSY79), we investigate whether the availability of this source of childcare has a causal effect on mother’s labor force participation. We compare Ordinary Least Squares 0(OLS), women’s Fixed Effects (FE) and Instrumental Variables (IV) estimates. We find that OLS estimates overestimate the effect of grandparental childcare on young mothers’ labor force participation and are not significantly different from IV estimates. In our preferred specification, FE, we find that the availability of grandparental childcare significantly increases mothers’ labor force participation by 9 percentage points and that this effect is largely driven by minority, single or never married mothers. Our findings suggest that policies that raise retirement ages might increase older cohorts’ labor participation rates at the expense of young women’s through childcare availability.JEL codesJ2; I3.

Gender Gap in Pay in the Russian Federation: Twenty Years Later, Still a Concern

This paper decomposes the gender gap in pay in the Russian Federation along the earnings distribution for the period 1996–2011. The analysis uses a reweighted, recentered influence function decomposition that allows estimating the contribution of each covariate on the wage structure and composition effects along the earnings distribution. The paper finds that women are in flat career paths compared with men; the importance of observable characteristics that proxy human capital in the gender pay gap decrease along the earnings distribution; and if women’s pay took into account their educational degrees as much as men’s, the gender pay gap would disappear or even reverse at the top of the earnings distribution. The results suggest that women at the bottom of the earnings distribution should be helped to increase their labor market skills, and women at the top of the distribution should be helped to break the glass ceiling and be remunerated for their skills to the same extent as men.

A Decade of Declining Earnings Inequality in the Russian Federation

Wage inequality decreased significantly in the Russian Federation over the 2000s. The economic expansion experienced throughout the decade led to an improvement in social indicators, with a large reduction in poverty rates and an increase in higher education. In this context, wage inequality showed a sharp decline, with the Gini index on labor income decreasing by 18 percent between 2002 and 2012. Using data from the Russian Longitudinal Monitoring Survey, this paper documents the reduction in wage inequality and explores potential factors behind the trend. The analysis uses a decomposition technique proposed by Fortin, Lemieux, and Firpo (2011) to disentangle the main drivers behind changes in the wage distribution. The results suggest that wage structure effects are more important than composition effects for explaining changes in wage inequality. Institutional factors, such as minimum wage policies and changes in the returns to employment in different sectors and types of firms as well as the reduction of the skill premium, emerge as the most relevant factors for explaining changes in the wage structure.

A checklist to avoid pilot failures: lessons from a set of women’s economic empowerment initiatives

Pilot programmes have gained significance in donor-supported development interventions because of the growing emphasis on measuring impact. The Results-based initiatives (RBI) were conceived as pioneering pilots expected to acquire rigorous evidence on effective interventions to foster women’s economic empowerment. However, they fell short of providing clear or generalizable conclusions on women’s economic empowerment due to design and implementation problems. The RBI nevertheless offer important lessons on common traps in pilot design and implementation. This article synthesises 10 lessons from the RBI as a checklist to avoid pilot failure, intended for practitioners in any area of development.