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Microeconomics and Competitiveness

Can Improving Market Access Spur Small Business Growth and Jobs in Latin America?

December 11, 2024 by Diego Vera-Cossio - Jing Cai - Ying Gao Leave a Comment

While micro and small firms account for a big share of overall employment in Latin America and the Caribbean, they often struggle to grow in part because they lack skills or encounter other difficulties in selling their goods and services to buyers. This limits the size of markets they can access. For example, data from the World Enterprise Surveys shows that only 6.7% of … [Read more...] about Can Improving Market Access Spur Small Business Growth and Jobs in Latin America?

The Unexpected Ripple Effects of Disability Employment Quotas

November 26, 2024 by Samuel Berlinski - Jessica Gagete-Miranda Leave a Comment

In 1991, Brazil passed a landmark Quota Law intended to promote the hiring of people with disabilities and overcome some of the obstacles they face in the labor market. But the law, calling on companies employing more than 100 workers to allocate at least 2% of jobs to people with disabilities, came up short. It lacked compliance or enforcement, and by 2009 less than one-third … [Read more...] about The Unexpected Ripple Effects of Disability Employment Quotas

Can AI Technologies Help Expand Credit Access?

November 7, 2024 by Razvan Vlaicu Leave a Comment

Despite the proliferation of digital technologies in daily market transactions, about 45% of Latin America's population do not use bank accounts, and credit access for individuals and firms is limited. Technologies based on Artificial Intelligence (AI) can help change that. AI can efficiently incorporate big data into credit risk assessments, allowing financial institutions … [Read more...] about Can AI Technologies Help Expand Credit Access?

Hurricanes, Trust, and the Role of Aid: Lessons from Mexico City’s 2017 Earthquake

October 15, 2024 by Carlos Scartascini Leave a Comment

Hurricanes Helene and Milton barreled into the southeast of the United States in late September and early October eviscerating towns, destroying homes, and killing scores of people in a challenge for both emergency responders and the ability of political institutions to maintain the trust of their citizens. Research has shown that natural disasters often shake the … [Read more...] about Hurricanes, Trust, and the Role of Aid: Lessons from Mexico City’s 2017 Earthquake

What Happens to Small Firms When Big Banks Go Digital?

August 29, 2024 by Razvan Vlaicu Leave a Comment

In Latin America and the Caribbean, a region historically marked by financial exclusion, a rapid shift to digital banking in the last decade has created new opportunities for credit provision to underserved populations. But the transformation, accompanied by a reduction in traditional banking infrastructure, such as physical branches, is not without its risks and … [Read more...] about What Happens to Small Firms When Big Banks Go Digital?

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The blog of the IDB's Research Department shares ideas that matter on public policy and development in Latin America and the Caribbean.

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