Minimum Wages and the Fight Against Inequality

Fighting inequality with minimum wages depends on gauging the circumstances and timing

Many policymakers say minimum wage hikes are crucial to reducing inequality. They look at Latin America and see abundant evidence, including the fact that in various countries large minimum wage increases during the commodity boom of the 2000s coincided with large inequality declines. There is certainly some truth to the idea. Minimum wage increases during times […]

U.S. Tax Reform: Challenges for Latin America and the Caribbean

The U.S. tax reform could reduce tax receipts in Latin America and the Caribbean

The massive U.S. reform of corporate taxation that slashed rates from 35% to 21% seeks to increase investment, create jobs, boost wages and spur growth within the United States[1]. But it will unquestionably have global impacts, with likely reverberations for Latin America and the Caribbean. The United States is the world’s largest economy and the […]

Does Political Patronage Necessarily Lead to Bad Hiring?

patronage in government doesn't have to lead to incompetent employees

Patronage is among the least loved of political practices, often synonymous with malfeasance and incompetence. Civic and development organizations rail against it. Numerous studies show that merit-based career civil services, as opposed to discretionary ones, are associated with higher economic growth, lower corruption, and better bureaucratic performance. But patronage, the discretionary hiring of people to […]

Prestigious Fellowship for Young Researchers Is Accepting Applications

recent graduates can apply now to the IDB's prestigious fellowship

The Research Department of the Inter-American Development Bank (IDB) is accepting applications for its Research Fellow Program. The program provides an ideal opportunity for recent graduates and young professionals interested in working with leading economists on issues related to sustainable and equitable development in Latin America and the Caribbean, including in the areas of labor, […]

New Research Opportunities at the IDB for Behavioral Economists

Applications open at the IDB for Behavioral Economists

The IDB invites researchers with a keen intellectual interest in behavioral interventions to apply for visiting positions with its recently established IDB Working Group on Behavioral Economics. As the leading multilateral institution for Latin America and the Caribbean, the IDB is looking to build on its experience helping governments use behavioral economics tools to improve […]

What Are the Antidotes to Sudden Stops?

Sudden stops can be less severe when local investors bring their foreign assets home

Policymakers in emerging economies have long suffered sudden stops, those paralyzing episodes in which foreign credit dries up. Such episodes can cause painful domestic adjustments that exact significant losses in GDP. But not all sudden stops are equal, and they do not all inflict the same amount of pain. Take the case of Latin America. […]

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