Tomás Rau

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.”

Part-time Work, Job Satisfaction and Well-being: Evidence from a Developing OECD Country

Abstract We estimate the effects of part-time work on job and life satisfaction using new data for Chile. While part-time work is being promoted to increase female labour participation in many countries, there are concerns about its quality and the overall effect on well-being of such policies. We estimate models for job and life satisfaction addressing for endogeneity and selectivity bias. We found that part-time work has a negative effect on job satisfaction and well-being for men; however, when looking at just women, the negative effect is reversed. This should be considered when designing public policies oriented at increasing female labour participation through part-time work.

Relative Income and Job Satisfaction in Chile

In this chapter, we study the determinants of job satisfaction in Chile. In particular, we focus on the relationship between income and job satisfaction that has been little studied in developing countries. Using data from the Oxford Poverty and Human Development Initiative (OPHI) we find a positive and concave relationship between income (wage) and job satisfaction. Regarding relative income, we find a negative relationship between the income of a reference group and individual job satisfaction. This can be understood as the predominance of the comparison effect, where an individuals job satisfaction decreases with the income of his/her peers.

A matching estimator based on a bilevel optimization problem

This paper proposes a novel matching estimator where neighbors used and weights are endogenously determined by optimizing a covariate balancing criterion. The estimator is based on finding, for each unit that needs to be matched, sets of observations such that a convex combination of them has the same covariate values as the unit needing matching or with minimized distance between them. We implement the proposed estimator with data from the National Supported Work Demonstration, finding outstanding performance in terms of covariate balance. Monte Carlo evidence shows that our estimator performs well in designs previously used in the literature.

Modeling structural equations with endogenous regressors and heterogeneity through derivative constraints

In this paper, I present a general modeling framework for nonparametric models with endogenous regressors and heterogeneity. I show that many existing models in the literature can be derived from a structural equation with unobserved het- erogeneity by imposing constancy assumptions on the first and second deriva- tives. I consider a less restrictive model that imposes constancy assumptions on the second partial derivative of the structural equation. Assuming the existence of suitable instrumental variables, I provide identification results and show that the model can be estimated using a generalized control function approach. I consider an application to the estimation of the returns to education in Chile, exploiting variation across regions and cohorts in educational infrastructure and compul- sory schooling laws. Using penalized spline functions to approximate the com- ponents of the average structural function, I find that the local average returns to schooling are highly nonlinear and typically underestimated by flexible models that ignore the endogeneity of schooling. I also find evidence of credential effects for high school and college graduates, and limited evidence of comparative ad- vantage bias in the returns to certain levels of education. Keywords. Nonparametric regression, endogenous regressors, control function, endogenous treatment, returns to schooling. JEL classification. C14, C21, C31, J31.

The effects of drinking and driving laws on car crashes, injuries, and deaths: Evidence from Chile

This paper analyzes the effects of lowering the legal blood alcohol content limit for drivers from 0.05 to 0.03 grams of alcohol per deciliter of blood (g/dL) and increasing license suspension periods for offenders. We take advantage of a rich data set of administrative records that allow us to identify direct measures of accidents involving alcohol including fatalities and injuries. Results show a significant decrease of 32% in alcohol-related car accidents right after the law was approved but the effects moderate over time (15% after three years). There is also a significant reduction in injuries (31% right after the approval and 11% after three years) but no statistically significant effects on deaths. Complementary analysis of blood samples shows that the law had an effect on blood alcohol content (BAC) of male drivers up to the 90th percentile of the BAC distribution.

Early Exposure to Hazardous Waste and Academic Achievement: Evidence from a Case of Environmental Negligence

This paper estimates the effect of early exposure to toxic waste on academic achievement. We analyze longitudinal information from individuals attending primary and secondary schools in Arica (northern Chile). Between 1984 and 1989, the city received more than 20,000 tons of toxic chemicals containing high concentrations of lead, arsenic, and mercury. We implement difference-in-differences and reduced-form models to document robust relationships between residential and school proximity to the polluted area and academic performance. We find that attending a school 1 kilometer farther away from the polluted area significantly increases math and language scores by 0.09 and 0.07 standard deviations, respectively. Finally, we use georeferenced blood tests and administrative records on labor income to estimate that children living in the area could lose up to US

The Long-Term Effects of Early Lead Exposure: Evidence from a Case of Environmental Negligence

60,000 over the course of their lifetime as a result of their early life exposure to toxic waste.