Category: Research
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,
Agglomeration, knowledge spillovers, and corporate investment
Abstract –Agglomeration is positively correlated with productivity and exhibits substantial heterogeneity across industries. Yet, the connection between agglomeration and corporate investment, an important driver of production, remains relatively underexplored. We study this relation using counterfactuals that account for the empirical distribution of industry size and firm locations, and by employing network methods that exploit firm
Estimating the Information Component in Switching Costs: A Structural Approach
Abstract – We exploit a unique natural experiment to structurally estimate the information frictions associated with switching costs. Specifically, we study a Chilean policy that simplified and standardized the presentation of loan characteristics in contracts and quotes. Using administrative data from the banking regulator, we exploit how this pol- icy change affected the price-sensitivity in