Browsing by Author "Prem, Mounu"

Now showing 1 - 7 of 7
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    Lost in transition? The persistence of dictatorship mayors
    (2021) Gonzalez, Felipe; Munoz, Pablo; Prem, Mounu
    We look at Chile's transition to democracy in 1990 to study the persistence of authoritarian politics at the local level. Using new data on the universe of mayors appointed by the Pinochet dictatorship (1973-1990) and leveraging on the arbitrary election rules that characterized the first local election in 1992, we present two main findings. First, dictatorship mayors obtained a vote premium that is larger among the last wave of incumbents and appears partially explained by an increase in local spending. Second, dictatorship mayors who were democratically elected in 1992 brought votes for the parties that collaborated with the dictatorship in subsequent elections held in democracy. These results show that the body of politicians appointed by a dictatorship can contribute to the persistence of elites and institutions.
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    Ownership networks and labor income
    (2023) Huneeus, Federico; Larrain, Borja; Larrain, Mauricio; Prem, Mounu
    We document a novel relationship between networks of firms linked through ownership (i.e., business groups) and labor income using matched employer-employee data for Chile. Business group affiliation is associated with higher wages, even after controlling for firm size and individual worker effects. The group premium is stronger for top workers; hence, group firms have higher wage dispersion. The premium remains present when comparing group firms and matched stand-alone firms, and in within-firm comparisons using transitions in and out of groups. Our results are consistent with workers reaching higher productivity and wages by leveraging their skills on the group's organizational structure (JEL G32, J31).
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    Police Violence, Student Protests, and Educational Performance
    (2024) Gonzalez, Felipe; Prem, Mounu
    We study the protest behavior of teenagers linked to a student killed by a stray bullet coming from a policeman in Chile. We use administrative data to follow the schoolmates of the victim and those living near the shooting on hundreds of protest and nonprotest days. We find that police violence causes lower protest participation in street rallies but more adherence to test boycotts. These effects appear among schoolmates of the victim and not among students living near the killing. Negative educational consequences suffered by the schoolmates combined with previous results suggest that psychological mechanisms are a plausible explanation.
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    The Geography of Repression and Opposition to Autocracy
    (2023) Bautista, Maria Angelica; Gonzalez, Felipe; Martinez, Luis R.; Munoz, Pablo; Prem, Mounu
    State repression is a prominent feature of nondemocracies, but its effectiveness in quieting dissent and fostering regime survival remains unclear. We exploit the location of military bases before the coup that brought Augusto Pinochet to power in Chile in 1973, which is uncorrelated to precoup electoral outcomes, and show that counties near these bases experienced more killings and forced disappearances at the hands of the government during the dictatorship. Our main result is that residents of counties close to military bases both registered to vote and voted "No" to Pinochet's continuation in power at higher rates in the crucial 1988 plebiscite that bolstered the democratic transition. Potential mechanisms include informational frictions on the intensity of repression in counties far from bases and shifts in preferences caused by increased proximity to the events. Election outcomes after democratization show no lasting change in political preferences.
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    The internal labor markets of business groups
    (2021) Huneeus, Federico; Larrain, Borja; Larrain, Mauricio; Prem, Mounu
    This paper provides micro evidence of labor mobility inside business groups. We show that worker flows between firms in the same group are stronger than with unaffiliated firms. Moreover, the reallocation of top workers between group firms is more sensitive to international shocks. Top workers that move within the group in response to shocks reach higher positions and earn higher wages. We find suggestive evidence that productivity increases when firms receive same-group top workers. Our results are consistent with the hypothesis that, in response to changing opportunities, joint ownership eases the redeployment of workers endowed with general management skills.
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