In Latin America and the Caribbean, where 55% of workers labor informally, some individuals face a crucial decision throughout their lives: whether to work in the formal or informal sector. This decision has important implications for their wages, the amount of taxes they pay, and their overall financial well-being. It is also crucial in determining whether they qualify for … [Read more...] about Why Do Workers in Ecuador Go Formal at Age 50? And What Do Pensions Have to Do With It?
Can a Behavioral Economics Course Help Overcome Biases and Improve Decision-Making?
We are all familiar with the biases that can lead policymakers and professionals astray. Doctors and lawyers may be overconfident; teachers may have preferences for or against students based on gender, race, and sexual orientation; and judges on judicial panels may be influenced by the ideological orientation of their colleagues. Overconfidence and social preferences can all … [Read more...] about Can a Behavioral Economics Course Help Overcome Biases and Improve Decision-Making?
Personal Experiences Shape Inflation Expectations
After the pandemic, inflation surged globally, prompting urgent responses from central banks. The economic fallout and rapid rebound forced many to weigh the costs of tightening policy too soon against the risks of affecting the economic recovery that many economies were experiencing. While responses varied, many central banks in Latin America and the Caribbean acted swiftly, … [Read more...] about Personal Experiences Shape Inflation Expectations
How Employment Narratives Shape Public Support for Trade
International trade is often hailed as a driver of economic growth and consumer welfare. Yet, despite its economy-wide benefits, it remains divisive and politically contentious - especially when it comes to employment. Part of this dynamic has to do with the fact that trade helps firms which are export-oriented but hurts firms that compete with imports. Given that people are … [Read more...] about How Employment Narratives Shape Public Support for Trade
Measuring Air Quality Better in Developing Countries
Low and middle-income countries are home to about 80% of the people in the world exposed to dangerous levels of air pollution, with its numerous deleterious effects, including disease and mortality and diminished cognitive performance, labor supply and productivity. Yet those countries often lack the resources to accurately measure air pollution and determine how policies might … [Read more...] about Measuring Air Quality Better in Developing Countries