Peer Effects in the Adoption of a Youth Employment Subsidy

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 allo...

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Veröffentlicht in:The review of economics and statistics 2023-05, Vol.105 (3), p.614-625
Hauptverfasser: Mora-García, Claudio A., Rau, Tomás
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Rau, Tomás
description 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.
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ispartof The review of economics and statistics, 2023-05, Vol.105 (3), p.614-625
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source Business Source Complete; MIT Press Journals
subjects Classmates
Colleagues
Peers
Youth employment
title Peer Effects in the Adoption of a Youth Employment Subsidy
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