J7 - Labor Discrimination
Internationally defined gender rights are glocalized in Peru by both state and non-state actors, especially international non-governmental organizations and trade unions. Looking at four different dimensions of gender disparities shows that the more institutionalized a women’s issue is internationally, the more isomorphic it is nationally. The clear codification on the international level leads to the adoption of an identical provision on the national level without the modification of either the text or the spirit of the agreement.
We explore the relation between variability in the rate of return to human capital and investment in education in the context of migration. Specifically, we show that if migration is a possibility, such variability in the rate of return to human capital can induce residents of developing countries to make greater investments in education. Moreover, providing that education is relatively costly, variability in the return to human capital may increase the average level of education in a developing economy even after expected migration is netted out.
We consider a small open developing economy, whose population is bifurcated into a majority and a minority group, the latter lacking political influence. Agents are heterogeneous in skills, and decide whether to invest in education when young and whether to migrate in their adulthood. Assuming a rent-extraction basis for discrimination, we first endogenize ethnic discrimination in the benchmark case of an economy closed to migration, and then explore how migration prospects affect ethnic inequality.