Ideas to Action:

Independent research for global prosperity




March 21, 2009

Schooling Inequality, Crises, and Financial Liberalization in Latin America - Working Paper 165

This working paper examines the relationship between high inequality and liberalization of the financial sector in Latin America from 1975 to 2000. Using panel data, the authors find that increases in financial liberalization were associated with bank crises and other domestic and external shocks, and that higher schooling inequality reduces the impetus for liberalization brought on by bank crises.

Jere R. Behrman and Gunilla Pettersson