Work in progress
Intra- and inter-industry misallocation and comparative advantage (Job Market Paper)
Paper On. Appendix Slides
Barriers to mobility or sorting? Sources and aggregate implications of income gaps across sectors in Indonesia (with Tomasz Święcki)
The existence of large income gaps between agricultural and non-agricultural workers in developing countries is well known. However, the source of these gaps is still being debated and the two main hypotheses – barriers to labor mobility and sorting of workers based on unobserved productivity – have opposing implications for aggregate efficiency. We use a panel of Indonesian workers to move beyond the cross-sectional gaps and document that workers moving out of agriculture see income gains of over 20% while those moving into agriculture see similar income losses, with large flows of workers in both directions. To interpret these findings, we structurally estimate a model featuring both sorting and barriers to sectoral mobility. Our estimates indicate that while self-selection is important, there is more misallocation than is suggested in the recent literature. Removing mobility barriers would lead one third of workers to reallocate and would increase aggregate output by as much as 21%.
Welfare effects from financial innovations: The case of banking through networks of retail agents (with Fernando Arias)
Market substitution under short-run production restrictions: Evidence from a trade shock
Alfonso, V., Arango, L., Arias, F. Cangrejo, L. and Pulido, J. (2013) “Business cycles in Colombia: 1975-2011″. Lecturas de Economía, No. 78, pp. 115-149, Universidad de Antioquia.
Kamil, H., Pulido, J. and Torres, J. (2010) “IMACO”: a monthly leading indicator of economic activity in Colombia. Monetaria, Vol. XXXIII, No. 4, pp. 495-598, CEMLA – Center for Latin American Monetary Studies.
Cristiano, D., Hernandez, D. and Pulido J. “Nowcasting Colombian economic activity”. Borradores de Economía, No. 724, Banco de la República.
Alonso, G., Hernandez, N., Pulido, J. and Villa, M. (2009) “Alternative measures of real exchange rate for Colombia”. Borradores de Economía, No. 514, Banco de la República.