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Long‐distance commuting (LDC) is an increasingly relevant strategy of labor mobility worldwide and is therefore key to understanding the structure and dynamics of labor markets. However, little is known about the effect that LDC has on the labor market equilibrium of host territories. This paper addresses this gap for the case of Chile. While LDC is a useful strategy for improving salary and employment on a national scale, our results show a negative effect for residents in host territories (on a local scale), particularly when LDC results in commuters with similar characteristics to residents competing for the same jobs. [ABSTRACT FROM AUTHOR]

We use the case of Chile to analyze the effectiveness of a spatially blind employment relief program (hereafter referred to as the LPE program) established by the Chilean government and implemented during the COVID‐19 pandemic. Chile is an interesting case because on the one hand its nonpharmaceutical interventions were spatially driven by health indicators based on small geographical areas; hence, producing sizeable regional and temporal variation of the local conditions induced by the COVID‐19 pandemic. On the other hand, the LPE program was designed and implemented nationally without distinction of local labor market or pandemic conditions, and each firm could decide whether to enroll in the program. By exploiting the spatial‐temporal variation of exogenously imposed lockdowns and using a difference‐in‐differences panel data framework, we find that the LPE program was only effective for a group of regions in the country but, more importantly, that the LPE program was less effective during lockdowns. Moreover, the requirements of the LPE program were vague and did not target specific populations or entities. Consequently, our results suggest that women, informal and small firm workers, and most economic sectors throughout the country were less able to take advantage of the benefits of this program. [ABSTRACT FROM AUTHOR]

We use disaggregated data on Chilean plants, and the Chilean input–output table to examine the impact of agglomeration spillovers on total factor productivity (TFP). In common with previous studies, we find evidence for intraindustry spillovers, but none for general cross-industry spillovers. This picture changes when we take vertical industry relations into account. There are important productivity spillovers from plants in upstream industries. Interestingly, a similar effect cannot be found from plants in downstream industries. The number of plants in these sectors has no effect on plant-level TFP, just as the number of plants in other industries that are neither important upstream suppliers nor downstream customers also has no effect. [ABSTRACT FROM AUTHOR]

ABSTRACT The headcount ratio in Chile has declined from 40 percent to 14 percent since 1987. However, most analysis of this reduction uses national and regional poverty statistics. In contrast, we employ poverty mapping methodologies to find heterogeneity in the effectiveness of transfers across counties. To better understand this variation, we explore the roles of characteristics of the local population, structural features of the county, and geography. The greatest reductions in poverty occur in rural households, yet population characteristics and geography are also important. These findings suggest that targeting at low levels of aggregation can deliver further reductions in poverty. [ABSTRACT FROM AUTHOR]

Knowledge spillovers are an important source of economic growth. In this study, we identify a mechanism through which knowledge spillovers occur among plants in the Chilean manufacturing industry. A plant-level production function is estimated with the absorptive-capacity hypothesis, that is, employment of skilled workers is a key channel through which knowledge is transmitted across plants. Results show that a plant's productivity from spillovers increases with its skill intensity, which is measured by the share of skilled workers in total employment. We also find that plants in a region with a large knowledge stock increase their skill intensity to benefit more from spillovers. Our results suggest that an increase in regional knowledge stock is the most effective policy to improve a plant's productivity. However, policies that encourage a plant to employ high skill-intensive production also enhance its productivity. [ABSTRACT FROM AUTHOR]