Sanchez, Carolina

Poverty and Equity Global Practice
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Labor economics, Poverty and distributional analysis, Gender, Public policy, Inequality and Shared Prosperity, Jobs and Development
Poverty and Equity Global Practice
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Last updated January 31, 2023
Carolina Sánchez-Páramo, a Spanish national, is currently the Senior Director of the Poverty and Equity Global Practice (GP) at the World Bank. Prior to this assignment, she was the Poverty and Equity GP Practice Manager in the Europe and Central Asia region. Carolina has worked on operations, policy advice and analytical activities in Eastern Europe, Latin America and South Asia, and was part of the core team working on the WDR2012, “Gender Equality and Development”. Her main areas of interest and expertise include labor economics, poverty and distributional analysis, gender equality and welfare impacts of public policy. She has led reports on poverty and equity, labor markets and economic growth in several countries, as well as social sector operations. She has published articles in refereed journals and edited books on the topics described above. Carolina has a PhD in Economics from Harvard University.

Publication Search Results

Now showing 1 - 5 of 5
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    Pending Issues in Protection, Productivity Growth, and Poverty Reduction
    (World Bank, Washington, DC, 2005-12) Arias, Omar ; Blom, Andreas ; Bosch, Mariano ; Cunningham, Wendy ; Fiszbein, Ariel ; Lopez Acevedo, Gladys ; Maloney, William ; Saavedra, Jaime ; Sanchez-Paramo, Carolina ; Santamaria, Mauricio ; Siga, Lucas
    This paper selectively synthesizes much of the research on Latin American and Caribbean labor markets in recent years. Several themes emerge that are particularly relevant to ongoing policy dialogues. First, labor legislation matters, but markets may be less segmented than previously thought. The impetus to voluntary informality, which appears to be a substantial fraction of the sector, implies that the design of social safety nets and labor legislation needs to take a more integrated view of the labor market, taking into account the cost-benefit analysis workers and firms make about whether to interact with formal institutions. Second, the impact of labor market institutions on productivity growth has probably been underemphasized. Draconian firing restrictions increase litigation and uncertainty surrounding worker separations, reduce turnover and job creation, and poorly protect workers. But theory and anecdotal evidence also suggest that they, and other related state or union induced rigidities, may have an even greater disincentive effect on technological adoption, which accounts for half of economic growth. Finally, institutions can affect poverty and equity, although the effects seem generally small and channels are not always clear. Overall, the present constellation of labor regulations serves workers and firms poorly and both could benefit from substantial reform.
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    The Impact of the Financial Crisis on Poverty and Income Distribution : Insights from Simulations in Selected Countries
    (World Bank, Washington, DC, 2010-03) Habib, Bilal ; Narayan, Ambar ; Olivieri, Sergio ; Sanchez, Carolina
    As the financial crisis has spread through the world, the lack of real-time data has made it difficult to track its impact in developing countries. The authors use a micro-simulation approach to assess the poverty and distributional effects of the crisis. In Bangladesh, Mexico, and the Philippines, the authors find increases in both the level and the depth of aggregate poverty. Income shocks are relatively large in the middle (and, in Mexico, the bottom) parts of the income distribution. The authors also find that characteristics of people who become poor because of the crisis are different from those of both chronically poor people and the general population. Findings will be useful for policy makers wishing to identify leading monitoring indicators to track the impact of macroeconomic shocks and to design policies that protect vulnerable groups.
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    Poverty in Ecuador
    (World Bank, Washington, DC, 2005-05) Sanchez-Paramo, Carolina
    The note looks at poverty in Ecuador, assessing macroeconomic developments through its policies to maintain stability with fiscal discipline, and increase economic productivity and competitiveness, in particular, the 1998/99 crisis, the 2000 dollarization and their effect on poverty. From 1990 to 2001, national consumption-based poverty rose from 40 to 45 percent, and the number of poor people increased from 3.5 to 5.2 million. Poverty increased by over 80 percent in urban areas at the Costa and the Sierra, was stable in the rural Costa, and rose 15 percent in the rural Sierra. Poverty rates continued to be highest in rural areas, but rapid urbanization increased the number of poor people living in urban areas. Employment is the main income source, frequently the only one, for most urban families. Thus policies that generate employment and wage income are crucial for reducing urban poverty. The 1998/99 crisis sent employment and real labor income plummeting, urban poverty rose, and poor urban households resorted to various coping strategies, such as increased labor force participation, and migration. Poverty declined slowly after 2000, reflecting just a weak formal employment creation. It is stipulated social expenditures could be used more effectively, for significant improvements are needed in education provision, and quality, especially in rural areas, while health service coverage must be expanded and integrated better across different subsystems, and providers.
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    Simulating Distributional Impacts of Macro-dynamics : Theory and Practical Applications
    (World Bank Group, Washington, DC, 2014-09-23) Olivieri, Sergio ; Radyakin, Sergiy ; Kolenikov, Stainslav ; Lokshin, Michael ; Narayan, Ambar ; Sánchez-Páramo, Carolina
    Simulating Distributional Impacts of Macro-dynamics: Theory and Practical Applications is a comprehensive guide for analyzing and understanding the effects of macroeconomic shocks on income and consumption distribution, as well as using the ADePT Simulation Module. Since real-time micro data is rarely available, the Simulation Module (part of the ADePT economic analysis software) takes advantage of historical household surveys to estimate how current or proposed macro changes might impact household and individuals welfare. Using examples from different economic and social contexts, the book explains macro-micro linkages in an easy and intuitive way. After developing a sound theoretical foundation, readers are then shown how to explore their own scenarios using the Simulation Module. Step-by-step instructions illustrate data entry and show how to make adjustments using the Module’s options. Exercises present how different sections of the simulation process operate independently. This book will be a valuable reference for analysts needing to evaluate the potential impact of structural reforms and to generate projections for hypothetical scenarios. Results created by the Simulation Module will be helpful in informing governmental policymaking.
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    Why So Gloomy?: Perceptions of Economic Mobility in Europe and Central Asia
    (World Bank, Washington, DC, 2015-12) Cancho, César ; Dávalos, Maria E. ; Sánchez-Páramo, Carolina
    Despite significant improvements in per capita expenditures and a marked decline in poverty over the 2000s, a large fraction of Eastern Europe and Central Asias population reports their economic situation in the late 2000s to be worse than in 1989. This paper uses data from the Life in Transition Survey to document the gap between objective and subjective economic mobility and investigate what may drive this apparent disconnection. The paper aims at identifying some of the drivers behind subjective perceptions of economic mobility, focusing on the role of perceptions of fairness and trust in shaping peoples perceptions of their upward or downward mobility. The results show that close to half of the households in the region perceive to have experienced downward economic mobility, that is, that their position in the income distribution has deteriorated. The results also show that perceptions of higher inequality, unfairness, and distrust in public institutions are associated with downward subjective economic mobility. The findings from this study confirm that factors beyond objective well-being are associated with the perceptions of mobility observed in Europe and Central Asia and may explain why the region has had such a pessimistic view of economic mobility during the past two decades. Understanding what drives peoples perceptions of their living standards and quality of life is important, because regardless of objective measures, perceptions could influence peoples behavior, including support for reforms and labor market decisions. For Eastern Europe and Central Asia, a region that has undergone substantive transformations and which is still going through a reform process, accounting for these aspects is critical.