growth during this year was -4.5%). But the crisis did not last long and by the end of 1997 it had recovered its vigorous growth (8%). Nevertheless, urban unemployment continued to grow and by the end of the year female and male unemployment had reached 17.4% and 13.4%, respectively.

# _2.2 Brazil_

Two principle economic reforms were introduced in the years 1990-1994: trade liberalization and privatization of publicly-owned enterprises. With liberalization reform there was a significant reduction of the average import tariff, which fell from 32.2% in 1990 to 12.6% in 1995. In addition, a relatively large number of state-owned firms (twenty-two) were privatized. This period was also characterized by high inflation that lead to the implementation of three main macroeconomic stabilization programs, known as Collor (1990), Collor 11 (1992) and Real (1994). The adjustmnent plans were designed to reduce aggregate demand and inflation, though inflation was persistent in some years during this period: 1,200% between 1989-1990 and 5000% between 1993-94. However, prices fell significantly in 1995 (inflation was 26%) and continued to fall in 1996 (11%). Deep recessions (1990-1992), partial recoveries (1993-1994) and vigorous growth (1995) characterize the 1989-1995 period. During these years annual average GDP growth and overall unemployment were 1.3% and 5%, respectively.

# _2.3 Costa Rica_

Trade liberalization, privatization and financial deregulation have been on the economic reform agenda in Costa Rica since 1986. However, reform implementation has been rather slow and incipient. For instance, the liberalization program consisted of a gradual reduction of tariffs complemented with a package of fiscal incentives to exports, and the creation of free industrial zones. During the 1986-1990 period tariffs on consumption and capital goods fell. Some sectors, like the textile industry, were subject to a slower pace on tariff reduction. By the end of 1993 this process had deepened as tariffs reached 14%. On the other hand, privatization of publicly-owned enterprises has been less important in Costa Rica. Even though some public institutions and publiclyowned firms were privatized, the emphasis of the public sector reform was concentrated more on the enhancement of efficiency rather than on privatization itself. Finally, the bulk of structural reforms also included the introduction of a new banking law in 1988. The main elements of this law were deregulation of the entire financial system, especially the liberalization of commercially-owned state banks. During this period (1986-1995) economic growth was vigorous (4% per year), non-traditional exports increased significantly (27%) and unemployment remained low (5% per year). However, inflation and the fiscal and commercial deficits were significant, especially during 1992-1993.

# **3. Data**

The data sets used in the analysis are from the household surveys for the urban areas of Argentina, Brazil and Costa Rica. For Argentina, the data are from the Permanent Household Survey _(Encuesta Permanente de Hogares,_ EPH) for the years 1988 and 1997 (October waves). For Brazil, they are from the _Pesquisa Nacional por Amostra de Domicilios_ (PNAD) for the years 1989 and 1995, and for Costa Rica they are from the _Encuesta de Hogares de Propositos Multiples_ (EHPM) for 1989 and 1995.

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