Dante Contreras

Cultural Factors in Women's Labor Force Participation in Chile

Abstract This article analyzes determinants of female participation in the Chilean labor force using classic determinants such as age, education, marital status, and number of children. The results indicate that the greater a womans education level, the greater her labor participation; that older women participate more, though the rate of growth of this effect is decreasing; and the number of children that a woman has is negatively correlated to her decision to participate in the labor force. The article also examines machismo and other cultural values that influence female labor participation. The evidence suggests that the more the women have internalized machista and conservative cultural values, the less they participate in the labor market. Finally, the article concludes that the existence of these cultural factors as a group more than compensates for the positive effect of human capital variables and is statistically associated with low female labor participation in Chile.

Poverty and Inequality in a Rapid Growth Economy: Chile 1990-96

Using parametric and non-parametric methods this article examines the evolution of poverty and inequality in Chile between 1990 and 1996. This period is interesting because of the rapid growth exhibited by the Chilean economy. Using the Datt-Ravallion decomposition economic growth accounts for over 85 per cent of poverty reduction. The evidence suggests that the sustained level of high inequality is not necessarily associated with a lower welfare level. By comparing the evolution of poverty and inequality over time, we observe a continuous decrease in poverty, while inequality remains stable. This pattern has left everyone (both poor and rich individuals) better off.

The Dynamics of Poverty in Chile

This paper uses the 1996–2001 National Socioeconomic Survey panel database to analyse poverty dynamics in Chile, drawing a distinction between chronic and transient poverty. We found that while 20 per cent of the population was living below the official poverty line both in 1996 and 2001, only 9 per cent of the population was poor at both dates. We also found that when the poverty line was raised, the amount of households which could be considered chronically poor rose steadily, whereas the transitory component of poverty remained more or less stable. Analysis of the direct reasons for changes in household poverty status leads us to the conclusion that labour dynamics are far more relevant than demographic changes. Household heads who suffered health problems are significantly less likely to leave poverty. Household human and physical capital are also relevant, as well as the sector in which the household head works. Simulating this exercise using different poverty lines reveals that some variables are not robust to changes in the definition of poverty, while others which originally appeared to be insignificant become so for most other possible poverty lines.

Poverty and Income Distribution in Chile: 1987-1998 New Evidence.

This paper presents an update on the poverty and income distribution situation in Chile during the 90s. The analysis shows unambiguously that there was less poverty between 1994 and 1998 than in all earlier years, whether poverty is measured by the headco

Tournament Incentives for Teachers: Evidence from a Scaled-Up Intervention in Chile

In this article we evaluate the effects of the introduction of group monetary incentives for teachers, based on a school performance tournament in Chile. This is particularly relevant to analyze since it is the only scaled-up incentive program for teachers in the world. We evaluate the tournament effect, that is, the effect of introducing the incentive scheme on all participant schools, both winning and losing. We compare public and private subsidized schools to private fee-paying schools following a matched difference in difference and using three different empirical approaches. We explore the heterogeneous impact of the treatment through the distribution of the probability of winning. The results indicate a positive and significant tournament effect especially for schools that are very likely to win, which we call “on the money.”

Political‐Economic Regime and the Wage Curve: Evidence from Chile, 1957–96

This paper tests whether a wage curve—a negative relationship between the level of unemployment and the level of pay—existed in Chile during 1957–96. The analysis is divided into two periods. For 1957–73, during inward‐led development, we reject the existence of a wage curve. For 1974–96, when the economy opened, state‐run industries were privatised and labour rights weakened, we find a wage curve of −0.08. Based on this finding we conclude that the unemployment–pay elasticity in the post‐reform period is similar to the −0.07 to −0.10 wage curve found in other western, capitalist countries. Disaggregating the analysis by group, we find that women, non‐university educated workers and public sector workers have suffered more from unemployment. Yet informal sector workers have not experienced pay drops as a result of unemployment, contradicting the hypothesis that the informal sector acts as a buffer during economic downturns.

Economic Growth and Poverty Reduction by Region: Chile 1990-96

This article examines the evolution of poverty in Chile during 1990‐96, a period of rapid economic growth. It shows that Chile has embarked on a significant poverty‐reduction trajectory. The robustness of this result is examined by using nonparametric estimates of the income distribution and a stochastic dominance test. Growth is an important factor in explaining the poverty reduction that has occurred. Using the Datt‐Ravallion decomposition, it accounts for over 85% of poverty reduction at the national level. However, the pattern varies significantly across regions. Both growth, and its contribution to poverty reduction, vary significantly among regions. This seems to reflect the sectoral composition of growth across regions, with export‐oriented activities producing a larger poverty‐reduction impact.

The effectiveness of private school franchises in Chile's national voucher program

There is persistent debate over the role of scale of operations in education. Some argue that school franchises offer educational services more effectively than small independent schools. Skeptics counter that large centralized operations create hard-to-manage bureaucracies and foster diseconomies of scale and that small schools are more effective at promoting higher quality education. We can gain insight into this debate by examining Chiles national voucher program. This paper uses 4th-grade data to compare achievement in private franchises, private independent, and public schools in Chile. Our findings suggest that franchises have a large advantage over independent schools, once student and peer attributes and selectivity are controlled for. We also find that further disaggregating school franchises widens the larger franchise advantage. We conclude that policies oriented to create incentives for private school owners to join or start up a franchise may have the potential for improving educational outcomes.

Impact Evaluation of Chile Solidario: Lessons and Policy Recommendations

This article evaluates the impact of the Chile Solidario anti-poverty programme. The evaluation is based on propensity score matching and a difference-in-difference estimator along with databases of Social Assistance Committee forms. The results show a positive but small impact on employment and housing along with a slightly negative impact on self-generated income. They also suggest that gains tend to be concentrated in the first phase, during which beneficiaries work with a family support professional, and that these benefits may not be sustainable. Participant families show absolute gains in income and employment, but these may be attributed to environmental conditions rather than the programme; this raises doubts about the premise that these families were initially marginalised from the economy and social networks.

The determinants of labour force participation and employment in Chile

Chiles labour force participation is low in comparison with Organization for Economic Co-operation and Development (OECD) and Latin American countries on average, especially among females and youths. This article estimates the main determinants of labour supply and employment for prime-age individuals and youths using data from the National Household Survey (CASEN) for 1990, 1996 and 2003. Educational attainment is found to be a powerful predictor of labour supply and employability for both males and females. The number of young children in the household is a strong deterrent to female participation, both for prime-age and young women. Changes in labour supply and employment during 1990 and 2003 are decomposed using the probit estimations. The results suggest that structural changes in the economy were the main determinants of changes in participation among prime-age individuals, but the converse is true for changes in employment, which depended predominantly on shifts in individual characteristics.