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Peer Effects in the Adoption of a Youth Employment Subsidy

Authors :
Tomás Rau
Claudio A. Mora-García
Source :
Review of Economics and Statistics. 105:614-625
Publication Year :
2023
Publisher :
MIT Press, 2023.

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.

Details

ISSN :
15309142 and 00346535
Volume :
105
Database :
OpenAIRE
Journal :
Review of Economics and Statistics
Accession number :
edsair.doi...........da45ae44369e70f9a29a34d4270425a9