Local externalities in labor markets: congestion and information flow among peers

Local externalities in labor markets: congestion and information flow among peers

Expositora | Dolores de la Mata | CAF-Banco de Desarrollo de América Latina y el Caribe

Lugar | FCE UBA | Aula 235

Abstract

We investigate local labor market effects related to a large-scale internship program in Argentina, leveraging the random assignment of program participants. Our findings show that exposure to a nearby individual who participated in the program increases the probability of having ever been employed in the formal sector, extends cumulative formal employment, and raises cumulative wages in the 12 months following program completion. On the other hand, exposure to areas with high program saturation results in adverse effects on subsequent labor market outcomes: decreased chances of obtaining formal employment, reduced number of months in formal employment, and lower wages. These results are compatible with the coexistence of a mechanism of transmission of valuable labor market information among peers and a displacement mechanism from program participants. Additionally, we observe that neighbors’ demographic similarity amplifies the information-sharing effect, and that there is a spatial pattern governing the competition effect.

Coautores: Federico Juncosa y Lucila Berniell

Es economista investigadora de la Dirección de Investigaciones Socioeconómicas de CAF-Banco de Desarrollo de América Latina y el Caribe. Obtuvo su doctorado en Economía en la Universidad Carlos III de Madrid, España, en 2011 y realizó su licenciatura en Economía en la Universidad Nacional de Córdoba, Argentina. Anteriormente, fue profesora en el Departamento de Economía de la Universidad del Rosario en Colombia (2011-2014). Sus campos de investigación incluyen la economía laboral, la economía de la salud y la economía del desarrollo. Actualmente, es una de las coordinadoras de la Red de Economía de la Salud de LACEA.