Fallon, Peter R.Lucas, Robert E. B.2014-01-022014-01-022002-01World Bank Research Observerhttps://hdl.handle.net/10986/16460The 1990s have witnessed several financial crises, of which the East Asia and Mexico tequila crises are perhaps the most well-known. What impact have these crises had on labor markets, household incomes, and poverty? Total employment fell by much less than production declines and even increased in some cases. However, these aggregates mask considerable churning in employment across sectors, employment status, and location. Economies that experienced the sharpest currency depreciations suffered the deepest cuts in real wages, though deeper cuts in real wages relative to Gross Domestic Product (GDP) were associated with smaller rises in unemployment. To some extent, families smoothed their incomes through increased labor force participation and private transfers, though the limited evidence available suggests that wealthier families were better able to smooth consumption. The initial impact of the crises was on the urban corporate sector, but rural households were affected as well and in some instances suffered deeper losses than did urban families. School enrollment declined, especially among poorer families, as did use of health facilities, but the impact on children's nutrition levels appears to vary. Crises have typically proved short-lived, but whether households plunged into poverty during a crisis is able to recover as the economy does remain an open question.en-USCC BY-NC-ND 3.0 IGOAGGREGATE DEMANDAGRICULTURAL EMPLOYMENTAGRICULTURAL PRODUCTSAGRICULTURAL WAGESAVERAGE WAGEBANKING CRISISBANKING SECTORBANKRUPTCIESBENEFICIARIESBORROWINGBUDGET DEFICITSBUDGET SURPLUSESCAPITAL FLOWSCAPITAL OUTFLOWSCOLLECTIVE BARGAININGCONSUMER GOODSCONSUMPTION SMOOTHINGCOST OF LIVINGCREDIT MARKETSCRISESCRISIS COUNTRIESCRISIS COUNTRYCURRENCYCURRENCY BOARDCURRENCY DEPRECIATIONCURRENCY DEPRECIATIONSCURRENCY DEVALUATIONDEBTDEBT CRISISDEFAULTSDEFICITSDEPOSITSDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDISPLACED WORKERSDISTRIBUTIONAL EFFECTSDROUGHTECONOMETRICSECONOMIC CRISESECONOMICSEMPLOYMENT GROWTHEMPLOYMENT IN AGRICULTUREEMPLOYMENT PROGRAMEMPLOYMENT RATEEMPLOYMENT SHAREEMPLOYMENT SITUATIONEMPLOYMENT STATUSEXCHANGE RATEEXPENDITUREEXPENDITURESEXPLICIT CONTRACTSEXPORTERFAMILY LABORFARMERSFINANCIAL CRISESFINANCIAL CRISISFIXED COSTSFOOD CROPFOOD CROPSFOOD PRICESFOREIGN CURRENCYFOREIGN WORKERSGOVERNMENT SPENDINGGROSS DOMESTIC PRODUCTHIGH SCHOOL DROPOUTHIGH UNEMPLOYMENTHIGH UNEMPLOYMENT RATESHOUSEHOLD COMPOSITIONHOUSEHOLD CONSUMPTIONHOUSEHOLD INCOMEHOUSEHOLD INCOMESHOUSEHOLD SURVEYHUMAN RESOURCESIDIOSYNCRATIC SHOCKSIMPLICIT CONTRACTSINCIDENCE OF POVERTYINCOME DISTRIBUTIONINCOME INEQUALITIESINCOME INEQUALITYINCOME SHOCKINFLATIONINFORMAL CREDITINTERNATIONAL BANKINTERNATIONAL DEVELOPMENTINTERNATIONAL ECONOMICSINTERNATIONAL MIGRATIONJOB RETENTIONJOB SEPARATIONJOBSLABOR DEMANDLABOR FORCELABOR FORCE PARTICIPATIONLABOR MARKETLABOR MARKET ADJUSTMENTLABOR MARKET CONDITIONSLABOR MARKETSLABOR PRODUCTIVITYLABOR SUPPLYLABORERSLABOURLABOUR MARKETLABOUR OFFICELABOUR STATISTICSLACK OF CREDITLAID-OFF WORKERSLANDLESS LABORERSLAYOFFSLEVYLOCAL CURRENCIESLOSS OF CONFIDENCEMACROECONOMIC CRISESMALNUTRITIONMANUFACTURING WAGESMICROCREDITMICROFINANCEMICROFINANCE INSTITUTIONSMIGRANT LABORMINIMUM WAGEMONETARY POLICIESMONETARY POLICYMONEY SUPPLYMORTALITYNEW POORNOMINAL INTEREST RATESNOMINAL WAGESNUTRITIONOPEN UNEMPLOYMENTOPPORTUNITY COSTPAID WORKERSPER CAPITA CONSUMPTIONPOORPOOR FAMILIESPOVERTY INCIDENCEPOVERTY LINEPOVERTY REDUCTIONPRIMARY SCHOOLPRIVATE TRANSFERSPUBLIC INVESTMENTPUBLIC SAFETY NETSPUBLIC SECTOR EMPLOYMENTPUBLIC SPENDINGPUBLIC WORKSPUBLIC WORKS PROGRAMSREAL EXCHANGE RATEREAL INTERESTREAL INTEREST RATESREAL WAGEREAL WAGESREMITTANCESRETENTION RATERETURNRETURNSRURALRURAL AREASRURAL BANKSRURAL FAMILIESRURAL HOUSEHOLDRURAL HOUSEHOLDSRURAL POORRURAL POVERTYRURAL SECTORRURAL WAGESRURAL WOMENSAFETYSAFETY NETSAFETY NETSSERVANTSSERVICE SECTORSSHORT-TERM CAPITALSKILLED WORKERSSOCIAL DEVELOPMENTSOCIAL IMPACTSSOCIAL SAFETY NETSSOCIAL SECURITYSOCIAL SPENDINGSTRUCTURAL ADJUSTMENTTARGETINGTOTAL EMPLOYMENTTRADE CREDITTRANSFER BENEFITSTRANSFER PROGRAMSTRANSPORTTURNOVERUNEMPLOYEDUNEMPLOYMENTUNEMPLOYMENT RATEUNPAID FAMILY WORKERSUNSKILLED WORKERSURBAN EMPLOYMENTURBAN EMPLOYMENT SURVEYURBAN WORKERSWAGE DISTRIBUTIONWAGE EMPLOYMENTWAGE GROWTHWAGE LEVELSWAGE RATEWAGE RIGIDITYWAGE SECTORWITHDRAWALWORKERWORKERSWORKING CAPITALWORKING HOURSJournal ArticleWorld Bank10.1596/16460