Browsing by Author "Rau T."

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    PEER EFFECTS IN THE ADOPTION OF A YOUTH EMPLOYMENT SUBSIDY
    (2023) Mora-Garcia C.A.; Rau T.
    © 2021 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.—This paper studies the effects of peers on the adoption of a Youth Employment Subsidy in Chile since its inception. We examine the effects that former classmates’ and coworkers’ adoption have on one’s adoption. Identification comes from discontinuities in the assignment rule that allow us to construct valid instrumental variables for peers’ adoption. Using a comprehensive set of administrative records, we find that classmates and especially coworkers play significant roles in the adoption of the subsidy. Peer effects are determined during the early stages of the program’s imple-mentation and vary by network characteristics and the strength of network ties.
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    The effects of equal pay laws on firm pay premiums: Evidence from Chile
    (Elsevier B.V., 2022) Cruz G.; Rau T.
    © 2022This paper analyzes Chile's 2009 Equal Pay for Equal Work Law (EPL) and its effects on firm pay premiums. The law affected firms with 10 or more workers and specified penalties by firm size, including a disclosure requirement for firms with 200 or more workers. We use matched employer-employee data to estimate worker-firm fixed-effects models, decomposing the firm's contribution to the gender pay gap into bargaining power and sorting channels. The EPL reduces the firm premium gender gap by 6.1%, driven by the bargaining power channel. The effects are larger in firms exposed to higher penalties and disclosure requirements.