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Peer Effects in the Adoption of a Youth Employment Subsidy

Author

Listed:
  • Claudio A. Mora-García

    (INCAE Business School)

  • Tomás Rau

    (Instituto de Economía, Pontificia Universidad Católica de Chile and IZA)

Abstract

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 implementation and vary by network characteristics and the strength of network ties.

Suggested Citation

  • Claudio A. Mora-García & Tomás Rau, 2023. "Peer Effects in the Adoption of a Youth Employment Subsidy," The Review of Economics and Statistics, MIT Press, vol. 105(3), pages 614-625, May.
    • Handle: RePEc:tpr:restat:v:105:y:2023:i:3:p:614-625
    DOI: 10.1162/rest_a_01047
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    Cited by:

    1. Gonzalez, Felipe & Prem, Mounu & von Dessauer, Cristine, 2023. "Empowerment or Indoctrination? Women Centers Under Dictatorship," SocArXiv 64mf9, Center for Open Science.
    2. Wei, Xiahai & Xu, Jiawei & Cao, Hui, 2024. "Production automation upgrades and the mystery of workers' overwork: Evidence from a manufacturing employer-employee matching survey in China," Journal of Asian Economics, Elsevier, vol. 91(C).
    3. González, Felipe & Prem, Mounu & von Dessauer, Cristine, 2024. "Empowerment or Indoctrination? Female Training Programs under Dictatorship," IZA Discussion Papers 17163, IZA Network @ LISER.
    4. repec:osf:socarx:64mf9_v1 is not listed on IDEAS

    More about this item

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

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