Working Papers

Sent Away: The Long-Term Effects of Slum Clearance on Children [Draft] (with Felipe Carrera​) 

* Previously circulated as "Sent Away: The Long-Term Effects of Slum Clearance on Children and Families." [JMP version

​Coverage: UCLA Research Spotlight World Bank

We use evidence from a slum clearance program implemented in Santiago, Chile, between 1979 and 1985, to study the long-term effects of moving to a high-poverty neighborhood on children’s adult earnings. During the country’s dictatorship, slum families were mandated to relocate to public housing in low-income areas. Two-thirds were relocated to new housing projects on the periphery of the city, and the rest received housing at their initial location. We construct a novel dataset that combines archival records with administrative data to estimate a displacement effect 20 to 40 years after the policy. We compare the outcomes of displaced and non-displaced children from slums with the same probability of being cleared, and find negative effects: On average, displaced children have 14% lower earnings and 0.64 fewer years of education as adults compared to non-displaced children. Moreover, displaced children are more likely to later work in informal jobs. We find different mechanisms operate by age at baseline. Young children are more likely to be affected by a neighborhood effect due to lower home values and the lack of schools, but teenagers are also affected due to the disruption of networks. Even though displaced children are less likely to live in their assigned neighborhoods, they live in higher-poverty areas as adults.

Who Benefits from a Maternity Leave Extension? Evidence from Chile (draft upon request)

This paper studies the short- and medium-term effects of extending parental leave on women’s labor market outcomes. I exploit a reform implemented in Chile in 2011 that extended women’s parental leave from 12 to 24 weeks (84 to 168 days). I combine administrative data on leave claims with employer-employee data to estimate the effect of a longer leave on women’s wages and employment five years after childbirth. On average, women exposed to the reform extend parental leave in 81 days, they do not experience negative impacts on employment or formal wages, and have lower separation rates for at least three years after childbirth. These results hinder ample heterogeneity by workers’ education. College and high-school graduates are more likely to remain employed, but women with less than high school reduce their formal employment right after the end of the leave, even when they are protected by law. These results are mainly driven by older and married women. I use survey data to explore employment trajectories outside the formal sector and find that low-educated workers are more likely to transition to informality.

Work in Progress

Segregation and Death: The Consequences of Slum Clearance on Mortality (with Felipe Carrera

Forced versus Voluntary Moves: The Long-Term Consequences of Housing Policies for the Poor