Women’s Labor Subsidy: Evidence from Chile

Abstract

In this paper, we study the effects of the Women’s Labor Subsidy (WLS), introduced in 2012, on women’s labor outcomes. We use detailed administrative records for more than 2.5 million women that allow us to analyze employment and income trajectories before, during, and after the implementation of the subsidy. Using a regression discontinuity design that exploits the fact that eligibility is contingent upon falling below a specified vulnerability score cutoff, we analyze how eligibility and being a program beneficiary affect labor outcomes. Our results indicate no significant effects of WLS eligibility on women’s employment, months worked, or income. We also find null effects on labor outcomes for program beneficiaries. The null effect is relatively constant for different subgroups of eligible women. (joint with Maria Isidora Palma, and Daniela Paz).