Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in B398--------dc22 ©2006Inter-American Development Bank 1300 New York Avenue, N.W. Washington, DC 20577The views and interpretations in this document are those of the authors and should not be attributed to the Inter-American Development Bank, or to any individual acting on its behalf. This paper may be freely reproduced provided credit is given to the Research Department, InterAmerican Development Bank.The Research Department (RES) produces a quarterly newsletter, IDEA (Ideas for Development in the Americas), as well as working papers and books on diverse economic issues. To obtain a complete list of RES publications, and read or download them please visit our web site at: http://www.iadb.org/res. 3 Abstract * Is there any relation between education and democracy? Once we correct for weak instruments and identify education as "weakly exogenous" we find new evidence that education systematically predicts democracy. Our results are robust across model specification, instrumentation strategies, and samples.

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in B398--------dc22 ©2006Inter-American Development Bank 1300 New York Avenue, N.W. Washington, DC 20577The views and interpretations in this document are those of the authors and should not be attributed to the Inter-American Development Bank, or to any individual acting on its behalf. This paper may be freely reproduced provided credit is given to the Research Department, InterAmerican Development Bank.The Research Department (RES) produces a quarterly newsletter, IDEA (Ideas for Development in the Americas), as well as working papers and books on diverse economic issues. To obtain a complete list of RES publications, and read or download them please visit our web site at: http://www.iadb.org/res. 3 Abstract * Is there any relation between education and democracy? Once we correct for weak instruments and identify education as "weakly exogenous" we find new evidence that education systematically predicts democracy. Our results are robust across model specification, instrumentation strategies, and samples.

We explore which financial constraints matter most in the choice of becoming an entrepreneur. We consider a randomly assigned welfare programme in rural Mexico and show that cash transfers significantly increase entry into entrepreneurship. We then exploit cross-household variation in the timing of these transfers and find that current occupational choices are significantly more responsive to the transfers expected for the future than to those currently received. Guided by a simple occupational choice model, we argue that the programme has promoted entrepreneurship by enhancing willingness to bear risk as opposed to simply relaxing current liquidity constraints.

Low contributions and loss of benefits for a large portion of the labor force. • Positive: Lower negative employment effects induced by some labor market institutions. • If informality is an optimal reaction to a given institutional context, then it is correlated with other labor market features that impact productivity. • There is evidence on strong correlations between firm's productivity and formality status (Busso et al., 2012). An important channel is the Distortions of firms' investment decisions (Paula and Scheinkman, 2011; Ulyssea, 2015). • The literature focusing on productivity and the worker side is scarce and rarely take into account workers' investment decisions. • Meghir et al. (2015) takes into account workers behavior and firms' productivity but it does not allow for workerss investment decision. • Bobba et al. (2017) focus on human capital accumulation decisions before entering the labor market.

Labor market search, informality and schooling investments / Matteo Bobba, Luca Flabbi, Santiago Levy. p. cm.-(IDB Working Paper Series ; 863) Includes bibliographic references. 1. Labor market-Mexico-Econometric models. 2. Informal sector (Economics)-Mexico-Econometric models. 3. Wages-Effect of education on-Mexico. 4. Education-Economic aspects