Research
Work in progress
“Industrial Place-Based Policies and Informality: Evidence from Colombia”
Abstract: This paper studies the local economic impact of the Free Economic Zones (FEZs) program established in Colombia between 2005-2018. Based on a novel data set that combines georeferenced data on FEZs, municipalities, and household characteristics, I measure the spatial effects of the creation of these zones on labor market outcomes, focusing on informality. Results show that the FEZs establishment significantly increases informality, with positive spillovers to the nearby regions, decreasing with distance. This increase is mostly driven by workers shifting from the formal to the informal sector. To rationalize these findings, I develop a spatial structural model with informality, internal trade, and labor mobility. * Draft upon request
“Caring For The Unpaid Caregivers” with Natalia Labrador
Abstract: Women face increased difficulty in workforce participation due to the disproportionate burden of household chores and caregiving compared to men. In this paper, we study the effects of a spatially targeted care policy on women's labor market outcomes and empowerment. In particular, we address three key questions: How does the policy alter women's labor supply patterns in the targeted neighborhoods and nearby areas? How has the policy affected transitions from the informal and formal labor sectors? To what extent has it influenced intrahousehold labor market dynamics by affecting the labor supply of other household members? We explore these questions within the context of Bogotá's Care Blocks policy program (Manzanas del Cuidado in Spanish), which designates specific areas of the city to provide services for caregivers and those they care for. These services include child care, flexible education, psychological support, and empowerment initiatives for victims of domestic violence. * Draft upon request
“Geographic Cross-Subsidy and Local Labor Markets” with Ricardo Guzman
Abstract: In this paper, we study the effects of a spatially-targeted public utility subsidy on local labor markets. In particular, we ask two questions: First, have subsidies changed patterns of formal and informal employment and labor supply across neighborhoods? Second, have subsidies narrowed gaps in wages and productivity between subsidized and non-subsidized neighborhoods, or have subsidies merely reinforced existing geographic inequalities? We study these questions in the context of Bogotá's system of geographic cross-subsidies where residents pay differential rates for public services -- electricity, water, gas, phone, and internet -- depending on their geographic strata (estratos in Spanish).