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Household surveys were showing an increase in LFPR’s, despite the crisis

This was interpreted as: More household members entered the labour market to compensate for income losses (LSSCT) *

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Household surveys were showing an increase in LFPR’s, despite the crisis

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  1. This was interpreted as: More household members entered the labour market to compensate for income losses (LSSCT)* This: implies that: Labour supply is counter-cyclical, that is it grows during stagnation and shrinks during economic growth (Escobar, 1996:549). Labour Survival Strategies Current of Thought Household surveys were showing an increase in LFPR’s, despite the crisis

  2. First Evidence challenging LSSCT: Periodisation Problems Due to Scarcity of Data. • Labour statistical material was barely produced in the 1970s and 1980s. • Comparing 1979 and 1991 the evidence seems to support the counter-cyclical proposition.

  3. First Evidence (continued). • But conclusions drawn based on scarce data may be misleading. A complete LFPR time series for Mexico City shows that it tends to be pro-cyclical

  4. LFPR is not normally standardised in order to compare it over time. Standardised LFPR shows different trends than non-standardised LFPR. Second Evidence challenging LSSCT: Standardised Labour Data

  5. Third Evidence challenging LSSCT: Income-Working Time Dynamics • Contrary to LSSCT propositions, the proportion of income poor but time non-poor increased considerably between 1984 and 1989

  6. Third Evidence (continued). And while the income poverty gap increased considerably between 1984 and 1989, the time poverty gap remained stagnant.

  7. Third Evidence (continued). • The empirical evidence is inconsistent with the LSSCT. Households did not intensify their extra-domestic work. 1.2 0 7.9 10.2

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