Peer Effects in the Adoption of a Youth Employment Subsidy

Claudio Mora-García and Tomás Rau

No 16839, Documentos de Trabajo from The Latin American and Caribbean Economic Association (LACEA)

Abstract: This paper studies the effects of peers in the adoption of a Youth Employment Subsidy in Chile since its inception. We study the effects that former classmates’ and coworkers’ adoption has 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 a significant role 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.

Keywords: Peer effects; subsidy adoption; partial population approach. (search for similar items in EconPapers)
JEL-codes: C31 H53 I38 (search for similar items in EconPapers)
Pages: 46
Date: 2018-10-25
New Economics Papers: this item is included in nep-net and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:col:000518:016839

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