Lykke E. Andersen, Bent Jesper Christensen, and Oscar Molina Tejerina
Publication Date:
12-2005
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
Remittances are a very important source of income for many Nicaraguan
families. More than 40% of all households receive remittances that on average
amount to 12-15% of total household income in these households. More than
30% of these households receive remittances at least monthly, implying that it is
a relatively stable source of income.
This paper shows that remittances do tend to reduce the vulnerability of
households and increase their upward social mobility, at least as long as the
households do not depend too heavily on remittances.
However, remittances also cause moral hazard problems. Nicaraguans tend
to reduce their labor supply in response to more remittances, and they also tend
to reduce their savings rates, both of which are detrimental to long run
economic growth.
Topic:
Foreign Aid, Investment, Behavior, Remittances, and Social Mobility
Lykke E. Andersen, Alice J. Brooks, and Alejandro F. Mercado
Publication Date:
07-2004
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
Poverty in Bolivia continues to be among the highest in Latin
America despite decades of concerted national and international
efforts to reduce it. Bolivia has meticulously followed the
recommendations of the Washington consensus at the same time as
external aid has been generous and foreign direct investment has
boomed. Nevertheless, average productivity and incomes remain at
the same low level as they were 50 years ago.
This paper suggests that the failure of previous development
policies is due to a lack of social mobility in the country. Without
social mobility, there is little incentive for people to invest in human
and physical capital, and without investment there cannot be
productivity growth. In addition, the lack of social mobility implies
an inefficient use of human capital, and it hinders the construction of
efficient social mechanisms for redistribution and consumption
smoothing over the life-cycle.
Topic:
Development, Poverty, Public Policy, Macroeconomics, and Social Mobility
Institute for Advanced Development Studies (INESAD)
Abstract:
The overall purpose of this project is to make detailed population and poverty projections
that take into account expected demographic changes (in terms of fertility, mortality,
migration, and education) as well as differentials in social mobility by household type.
Such projections could be useful for a variety of purposes ranging from assessment of
necessary social investments (education facilities, health facilities, pension systems, etc),
projections of the size of the working age population who will demand jobs, targeting of
poverty alleviation policies, projections of migration flows, to negotiations with external
donors and creditors.
Topic:
Demographics, Development, Migration, Poverty, Population, and Social Mobility