Income comparisons are important for individual well-being. We examine the shape of the relationship between relative income and life satisfaction, and test empirically if the features of the value function of prospect theory carry on to experienced utility. We draw on a unique dataset for a...

By using a bunching design on rich administrative tax records from Uruguay's tax agency we explore how individual taxpayers respond to personal income taxation in a context with high sheltering opportunities. We estimate a moderated elasticity of taxable income in the first kink point (0.16)...

Although different approaches and methods have been used to measure inequality aversion, there remains no consensus about its drivers at the individual level. We conducted an experiment on a sample of more than 1800 first-year undergraduate economics and business students in Uruguay to...

This research estimates the impact of wages onlabor supply decision in Uruguay considering the extensive and intensive margins, with particular emphasis on female supply. We used the specifications and econometric techniques proposed in Blundel and MaCurdy (1999) and Pencavel (2002) toestimate...

The aim of this paper is to explain the Uruguayan unemployment dynamic using the theoretical framework of the Chain Reaction Theory (CRT). Changes in unemployment are viewed as “chain reactions” of responses to external shocks, working their way through systems of interaction lagged...

Women behaviors regarding the labor market have changed substantially in recent decades, accompanied by changes in gender roles. These changes, however, were not identical for all women with some groups entering sooner and showing trajectories more similar to those of men. This paper aims to...

This study explores empirical differences in poverty analysis under two distinct normative approaches: income poverty and Amartya Sen’s capability approach, focusing on nutritional achievement as the main dimension to measure poverty in the latter. The analysis focuses on the association...

This paper tests the existence of poverty traps in three Southern Cone countries: Argentina, Brazil and Uruguay. We apply the methodology developed by Antman and McKenzie (2005): based on pseudopanels, we model the income dynamics of households and analyze the existence of heterogeneity in their...

In this paper, we analyze how top income earners (TIEs) respond to changes in personalincome taxation. Our identification strategy exploits a unique reform to Uruguay’s progressivelabor income tax schedule that affected differently the tax rates of taxpayers within the top 1%of the labor...

We study wage effects of two important elements of non-wage labour costs: firing costs and payroll taxes. We exploit a reform that introduced substantial reduction in these two provisions for unemployed workers aged less than thirty and over forty five years. Theoretical insights are gained with...