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Distortions, Infrastructure And Labor Supply In Latin American Countries

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Executive Summary

The author documents differences in labor supply between a set of Latin American countries and the U.S. in the period 1990-2005. These differences are mostly explained by large differences in female labor supply. In the U.S. the female labor force participation was 69% by 1990, while in Brazil and Mexico was 39% and 37%, respectively. Females began to participate more in the labor market of these countries when more households acquired access to basic infrastructure and when distortive policies affecting the price of household appliances were partially removed.

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