This study looks at the effect of welfare programs on work incentives and the adult labor supply in developing countries. The analysis builds on the experimental evaluations of three programs implemented in rural areas: Mexico's PROGRESA, Nicaragua's RPS and Honduras' PRAF. Comparable results...

Our objective is to analyse the role of teacher and school quality to explain differences in students' educational outcomes. With this aim, we use PISA microdata for 10 middle income and 2 high income countries and we apply decomposition methods in order to identify the role of these factors for...

This study presents new evidence on individual and community-specific determinants of social trust using data from 96 villages in Bangladesh. We find perceived institutional trust to be positively correlated with stated inter-personal trust. At the same time, there is significant social distance...

We develop and estimate a model of dynamic interactions in which commitment is limited and contracts are incomplete to explain the patterns of income and consumption growth in village economies of less developed countries. Households can insure each other through both formal contracts and...

Exposure to childhood poverty increases the likelihood of adult poverty. However, past research offers conflicting accounts of cross-national variation in the strength of the intergenerational persistence of poverty and the mechanisms through which it is channeled. This study investigates...

This paper studies the impact of product and labor market regulations on informality and unemployment in a general framework where formal and informal firms are subject to the same externalities, differing only with respect to some parameter values. Both formal and informal firms have monopoly...

As credit and insurance markets are imperfect, and given that intra-family transfers, and the way a child uses her time outside school hours, are private information, the second-best policy makes school enrollment compulsory, forces overt child labour below its efficient level (if positive), and...

This paper studies the effects of the introduction of unemployment compensation (UC) in countries characterized by pervasive informality. We provide a simple framework to analyze the impact of UC on the allocation of workers between formal and informal activities, as well as the allocation of...