Santiago Truffa

Ph.D Business Economics

Author: Santiago Truffa

Labor Market Effects of Deleting Delinquencies

We develop a simple model to examine the implications of prohibiting the use of credit histories in hiring practices. We empirically test the model using a recent law implemented in Chile. This law extended periods of unemployment for low-income workers, consistent with the pooling equilibrium in the market for talent predicted by our model. Moreover,