Research 


WORKING PAPERS

with: Esteban Puentes


Preliminar Abstract: This study explores the impact of unions on firm productivity in Chile during a decade with low productivity growth but increasing unionization rates. Analyzing panel data from nearly 1,500 firms, we find a significant positive effect of unionization, with Value Added and Total Factor Productivity increasing by approximately 40% and 26%, respectively, around four years after unionization. The effect is more pronounced in firms with higher union representation and within firms in sectors other than services. We also observe a dynamic union wage premium of 20% to 30%, which is higher in heavily unionized firms, and within firms in the services sectors. This dynamic union wage premium serves as a leading indicator for subsequent productivity improvements, aligning with efficiency wage models. Conversely, de-unionization leads to a temporary value-added decrease of 40% within two years, with no significant effect on TFP and wages, in a sample of almost 500 firms. However, value-added returns to pre-de-unionization levels within 4-6 years.


with Dante Contreras, Fabián Duarte and Melanie Saavedra


Preliminar Abstract: This paper examines the relationship between changes in nutritional status and academic performance using data from Chilean students in first, fifth, and ninth grades across three time points: 2014, 2018, and 2022. By analyzing unique trajectories of nutritional status, our findings reveal that becoming affected by overweight or obesity is associated with lower academic outcomes, especially for girls during adolescence. Conversely, transitioning out of these states enhances academic performance for both boys and girls. Our research contributes to the literature by introducing new categories of nutritional status changes and providing a detailed analysis of the impact of these trajectories in a country with high population rates of obesity as Chile. These results highlight the importance of early intervention and consistent nutritional management to improve educational outcomes, providing new insights for health and education policies in addressing the global obesity situation.


Preliminar Abstract: Chile has experienced a remarkable increase in its immigrant population in recent years. Between 2011 and 2019, it expanded more than 6 times. However, the academic performance of immigrants in the Chilean school system has not yet been studied. This work aims to provide an initial approach to this issue. Using data from the 2018 SIMCE test and an econometric strategy with fixed effects at the establishment/municipality level, three important results are obtained. First, second-generation immigrant students, i.e., those with Chilean nationality but foreign-born parents, achieve higher academic performance than natives, especially when both parents of the student are immigrants. Second, the performance compared to natives is ambiguous when considering first-generation immigrant students, i.e., when both they and one of their parents have foreign nationality. Third, the results vary depending on the country of origin of the immigrant students. Some hypotheses are proposed, and ideas for public policies regarding these results are suggested. 


Preliminar Abstract: In 2005, Chile implemented, for the first time in over 80 years of existence of the original work schedule, a reduction in the workweek from 48 to 45 hours, the maximum regulated for regular work time per week. Using a differences-in-differences strategy, we evaluate whether there is any impact on the time allocation of those affected, either towards a second occupation, participation in social organizations, or engaging in physical activities. We also assess changes in perceived health. We find that treated men are more likely to have a second occupation following the policy, and within this group, younger individuals increase the frequency of their physical activities, along with an improvement in their perception of health. However, all these effects dissipate in the long term. Our findings suggest that affected women dedicated their newly available time to household activities. The social participation of those treated is positive but weakly significant. 


PUBLICATIONS

 with Dante Contreras | Economics of Education Review, Volume 91, Decemeber 2022 

Publisher


Abstract: Using longitudinal data and a Difference-in-Difference approach, this paper examines how the mass inflow of Venezuelan (who speak Spanish as the natives) and non-Spanish-speaking (mainly Haitians) migrants to Chile has influenced the learning outcomes of native students, specifically the 6th graders in 2018. The evidence shows a decrease on standardized test scores, especially for male students (−0.072SD in Reading, −0.06SD in Math). Said effects are considerably greater in Reading when examining the migration of non-Spanish speakers (−0.099SD). When the shock is motivated by Venezuelan students, a decrease in Mathematics/Reading are observed in both male (−0.56SD/−0.067SD) and female students (−0.04SD/−0.035SD). Two hypotheses that may account for these effects are evaluated. First, a lack of human and financial resources to address these new educational demands. Second, native flight from public to private schools, especially involving higher SES or higher performance students. Results indicate that only the first hypothesis may account for the possible underlying mechanisms. 



with Dante Contreras | IDB's Discussion Paper Series N IDB-DP-825, July 2020

Publisher


Abstract: Using cross-section data and an instrumental variable approach, this paper examines the mass migration process that occurred in Chile between 2015 and 2017. Evidence indicates that this process reduced wages for less skilled native workers by around 2-3 percent, mostly impacting males. These workers are competing with more educated immigrants, suggesting a downgrading effect. Results are robust to multiple IV tests. 



Advisor: Esteban Puentes | Master's thesis


Preliminar Abstract: This document analyzes for the first time the effect of unions on firm productivity in Chile, a middle-income country in the context of a decade of productivity stagnation. Using longitudinal data with a sample of over 6,000 firms, the results indicate that unionized firms are more productive than its non-unionized counterparts; increases in the percentage of union membership are also related to higher productivity. These results are robust to the use of instrumental variables to address for endogeneity, as well as various specifications. An event study analysis also shows positive effects on productivity following the unionization event, both for the event period and the subsequent periods. The effect disappears two periods after unionization. The hypothesis of the "shock effect'', where firms in highly competitive markets have incentives to become more productive due to the increased cost generated by the existence of unions, does not explain the results. Nor is it explained by the hypothesis that improvements in coordination and communication between employers and unions generate a higher productivity at the firm, which leads to consider other hypotheses, such as increased morale, personal motivation of workers, and improvements in working conditions, to be behind the results.


WORK IN PROGRESS

with Federico Huneeus



POLICY BRIEFS

Millennium Nucleus of Social Development Study Center (DESOC), March 2021