Research

The Minimum Wage in Formal and Informal Sectors: Evidence from an Inflation Shock in Colombia (R&R, World Development)

Listed in Banco de Mexico Research Papers

Coverage: HKUST-IEMS ,La Silla Vacia

I estimate the effect of the minimum wage on formal wages, informal wages, and employment in Colombia. I exploit an unexpected increase in the real minimum wage during the 1999 Colombian economic crisis to estimate short- term effects of the minimum wage along the distribution of wages in both sectors. I find evidence of wage responses, with a stronger incidence in the formal sector.

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The Efficacy of Hiring Credits in Distressed Areas

2019

We analyze the efficacy of hiring tax credits, particularly in distressed labor markets. Our estimates show positive effects on employment and sizable reductions on the unemployment rate.

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Unpacking the MPI : A Decomposition Approach of Changes in Multidimensional Poverty Headcounts

Listed in World Bank Policy Research Working Paper Series

Coverage: Vox Lacea

Blog post

Multidimensional measures of poverty have become standard as complementary indicators of poverty in many countries. This paper proposes an application of existing methodologies that decompose welfare aggregates -based on counterfactual simulations- to break up the changes of the multidimensional poverty headcount into the variation attributed to each of its dimensions.

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City Minimum Wages (Job Market Paper)

2017

Winner of the 2018 S4 Graduate Student Paper Prize

Coverage: Marginal Revolution

Local minimum wage laws are becoming common across U.S. cities, and their effects may be different from effects of state or nation-wide minimum wage policies. I study the effect of changes in minimum wages on spatial equilibria in local labor markets. Using residence and workplace data for the U.S., I analyze how commuting, residence and work locations change across city and state borders when minimum wages change on either side of the border.

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Consumption Responses to Household Shocks in Colombia

We study the effects of household shocks on consumption across different goods in rural Colombia, using a panel dataset of households. We contrast the estimated effects to those obtained using a structural model of demand.

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Econometrics of Panel Event Studies

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Grading Fiscal Policy in Latin America in the Last Decade

Published in IDB Policy Briefs, 2014

Fiscal policy in Latin America has been historically imprudent and continues to be viewed with skepticism. At the same time, most countries have remained out of trouble for several years and were able to successfully conduct proactive countercyclical fiscal policy to fight the Great Recession, a historical first. This paper examines the last decade to assess progress, highlight weaknesses, and chart the way forward.

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The Consumption of Colombian Households, 2006-2007: Estimation of Demand Systems (In spanish)

Published in Desarrollo y Sociedad, 2010

Using household data from the 2006-2007 Households Income and Expenditure survey, we estimate four different specifications of demand systems for Colombia. We also calculate expenditure, income and price elasticities for different groups of goods.

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