November 17 2015
Dr. Amarendra Sharma, Associate Professor of Economics, recently delivered the keynote address at the Seventh International Seminar of Local Public Economics in Mazatlán, Mexico, hosted by the Autonomous University of Sinaloa. In his address, he presented the key findings from his recent research that evaluates the Government of Mexico’s Temporary Employment Program’s (Programa de Empleo Temporal) effectiveness on labor market outcomes such as unemployment rate, unemployment duration, and hourly earnings by using a panel data of Mexican states.
His findings suggest that the Temporary Employment Program instead of decreasing unemployment ends up increasing it, and those who remain employed become more vulnerable. In other words, the proportion of employed people becomes larger in the informal sector with little benefits and job security. The key takeaway of his talk was that the employment guarantee schemes in general only provide the short-term safety nets to the participants and do not boost the long-term employment and earning prospects of the participants. This research was conducted in collaboration with Oscar Cardenas.