PR 270 Proposal

RESEARCH PROPOSAL:
GENDER DISCRIMINATION AND ECONOMIC

OUTCOMES IN CHILE
Proposal prepared for

Inter-American Development Bank, Research Network Project
“Discrimination and Economic Outcomes”
Research Team:
David Bravo
Claudia Sanhueza
Sergio Urzúa
Centro de Microdatos
Departamento de Economía
Universidad de Chile
November 22, 2005

RESEARCH PROPOSAL:
GENDER DISCRIMINATION AND ECONOMIC
OUTCOMES IN CHILE
Abstract
This proposal presents a systematic and complete agenda to study the gender labor market discrimination
in Chile. This agenda will allow us not only to properly detect gender discrimination but also fully
understand its consequences. We seek to do this by using three different sources of information. The first
source of information is a new and rich longitudinal data set containing detailed labor market histories of a
representative sample of Chileans: The Social Protection Survey (SPS). This data set is already available
and was directed by one of the researchers co-authoring this proposal. Our second source of information
will be a new survey, carefully designed to measure cognitive and non-cognitive abilities at the individual
level. Finally, we plan to use the information from an audit study in which we will send written applications
to real job advertisements.
Altogether, these sources of information will provide a unique opportunity to (i) re-analyze the previous
findings in the literature and (ii) go beyond what have been done in Chile to detect and understand the
gender labor market discrimination phenomenon.
With the first source of information (SPS) we will correct the estimates of gender discrimination by adding
controls for the labor history of the workers, marital and maternal histories, family characteristics (parents
education, number of siblings, etc.) and school performance and quality. The second source of information
will be the first attempt in Latin America to measure cognitive and non-cognitive abilities and their effects
on economic outcomes. Recent outstanding theoretical and empirical literature centers its attention on
these issues. Finally, with the audit study (the third component of our agenda) we will be able to follow
the field experiment approach to study the presence of gender discrimination in the labor market. In this
experiment we will send pairs of identical written applications differing only in the applicant’s gender.
Additionally, we will explore the importance of the neighborhood effects and beauty by introducing the
dimension of geographical location and including pictures in the job applications.
Since an erroneous and partial diagnostic of the gender discrimination phenomenon can have critical
consequences for the designed of policy interventions aimed to correct it, we expect our study to have a
major influence on the way public policy is designed in Chile and Latin America.
D E P A R T AM E N T O D E E C O N O M Í A, U N I VE R S I D A D D E C H I L E
Research Proposal:
“Gender Discrimination and Economic Outcomes in Chile”
I. Introduction
Gender and social discrimination in the labor market are one of the key issues in the
discussion on public policies in Latin America. Empirical evidence and academic
research on the matter have been, however, rather scarce until now. This is also the
case of Chile. This proposal contributes to fill this lack of evidence.
No matter how much has been done to study labor market discrimination, racial,
ethnic or gender, the issue of detecting is still unsettled. In the usual regression
analysis there are several problems of unobservable variables that clearly bias the
results (Altonji and Blank, 1999; Neal and Johnson, 1996) and, on the other hand,
the experimental studies have been under discussion for not correctly measuring
discrimination (Heckman and Siegelman, 1993; Heckman, 1998).
In Chile, despite the fact that average years of schooling of Chilean female workers
are not statistically different from those of male workers, pure average wages of
male workers are 25% higher1. In fact, previous studies2 suggest that gender
discrimination is a factor in determining wages in the Chilean labor market.
Estimates of the Blinder-Oaxaca decomposition give “residual discrimination” a
significant participation on the total wage gap3. The evidence also shows stable and
systematic differences in the returns to education and to experience by gender along
the conditional wage distribution. Additionally, it has been shown that “residual
discrimination” is higher for women with more education and experience.
Furthermore, Chilean female labor force participation is particularly low, 38.1%

compared to 44.7% in Latin America4. This is lower for married women and in fact,
the higher participation is found in separated or divorced women (Bravo, 2005). This
later fact may be interpreted as evidence of women preferences for non-market
activities5.
1
Own calculations using CASEN 2003. Once you correct for human capital differences and occupational
choice this gap falls to 19% approximately.
2
Previous studies for Chile are Bravo (2005); Montenegro (1998); Montenegro and Paredes (1999) and
Paredes and Riveros (1994).
3
Bravo (2005) shows that taking all employed workers and after controlling for years of schooling and
occupation, the wage gap was 13.5% in 2000. Using the Blinder-Oaxaca decomposition he concludes that
most of this difference was due to “residual discrimination”.
4
Source: International Labor Organization (ILO).
5
Contreras y Plaza (2004) also found that there are cultural factors, such as machismo, explaining great
part of female labor force participation in Chile.
2
However, this “residual discrimination” is only a measure of how much of the wage
gap is due to unobservable factors. Therefore, these measures of discrimination are
biased due to the lack of relevant controls. A recent study about discrimination by
social class in Chile (Núñez and Gutiérrez, 2004) uses a dataset which reduces the
role of unobserved heterogeneity across individuals but has several limitations6.
Furthermore, there are no attempts to study discrimination using neither audit
studies nor natural experiments.
This research seeks to identify gender discrimination in the labor market. Our
proposal has three main components:
• Our first component uses a new rich longitudinal data set reporting detailed
labor market histories, the Social Protection Survey (SPS), which was directed
by one of our researchers.
• Our second component, instead, focuses on a new survey, carefully
attempting to control for measures of cognitive and non-cognitive abilities.
• Finally, we plan to implement an audit study sending written applications to
real job advertisements.
In doing this, we will detect whether disparities in labor market outcomes between
women and men are due to discrimination or to preference/skill unobservable factors
in a very robust way.
In fact, as pointed out by Heckman (1998) if we do not attempt to detect

discrimination properly we could be wrongly undervaluing the importance of public
policy in equalizing endowments to improve the welfare of the excluded groups.
Finally, although we will have a current measure of non-cognitive abilities of the

individuals7, we will not be able to measure people’s early non-cognitive abilities. In
this context, our measures of non-cognitive abilities can be interpreted as a result of
previous events that also influence our measured labor outcomes. This is the reverse
causality problem discussed in Heckman, Stixrud and Urzua (2005). Finally, even if
we detect discrimination we will not be able to say whether this is due to statistical
or taste discrimination. These last issues deserve further research.
This proposal is organized as follows. Next Section II presents a literature review on

discrimination focused on gender discrimination and literature relevant to our
proposal. Section III develops the contents and methodology to be used in this
research. Section IV presents the expected results and its interpretation. Section V
lists the proposed activities and timeline for the research proposal and Section VI
describes the research team. Section VII presents the budget. Finally, a section of
dissemination activities and bibliographical references are included.
6
See next section II for a discussion.
7
So this later-in-life measures are likely to be biased for experience.
3
II. Literature Review
Labor market discrimination is said to arise when two identically productive workers
are treated different by grounds of the worker’s race or gender, when race or gender
do not have themselves an effect on productivity (Altonji and Blank, 1999; Heckman,
1998).
However, we never observe identical individuals. There are several unobservable

factors that determine their performance in the labor market. First, we do not
observe individual’s cognitive abilities. Second, we do not observe individual’s non
cognitive abilities such as personal motivation, self-determination, and locus of
internal / external control or self-confidence. Third, we do not observe pre-labor
market discrimination conditions such as family background and school environment.
Fourth, we do not observe individual past expectations about how the labor market
works8.
Regarding gender group differences these can be found for market and non-market
activities and for type of jobs. There are gender differences for comparative
advantages due to: differences in gender roles in home production, differences in
parental investments in skills (Becker, 1991) and the transmission of family
preferences (Fernandez, Fogli and Olivetti, 2004). And there are group gender
differences in human capital investments as a result of pre-labor market
discrimination. Consequently, discrimination can influence human capital investment
before and after an individual enters the labor market.
The empirical literature attempts to face these problems by two alternative

methodologies: regression analysis and field experiments9.
The regression analysis is focused on analyzing the Blinder-Oaxaca decomposition

(Oaxaca, 1973; Blinder, 1973) to determine how much of the wage differential
between groups of workers, by race or gender, is unexplained. This unexplained part
is called discrimination. First, there are traditional studies that use data on
unobserved variables such as cognitive abilities10, pre-labor market discrimination
variables such as school environments and family preferences11. Second, there are
8
See Altonji and Blank (1999) for a complete survey on race and gender discrimination and explanations
of the theories behind.
9
See Altonji and Blank (1999) and Blank, Dabady and Citro (2004) for complete surveys on the
econometric problems involving detecting discrimination in the labor market using regression analysis and
field experiments.
10
Neal and Johnson (1996) is a good example of how unobserved factors could be driving the results.
They study the role of pre-market factors in black-white wage differences controlling with a test
administrated to teenagers prepared to leave high school in the US. They found that the adult black-white
wage gap primarily reflects a skill gap due to observable differences in family backgrounds and school
environments.
11
O’Neil and O’Neil (2005) find that differences in productivity-related factors account for most of the
between group wage differences in the year 2000 for the US. Differences in schooling and in skills
developed in the home and in school, as measured by test scores, are important in explaining black/white
4
studies that extend this methodology to analyze the distribution of the wage gap
using quintile regression, Generalized Lorenz Curves, or semi-parametric methods.
More recently, matching techniques have been introduced to reduce the
heterogeneity of workers12. However, this later methodology is based on the
matching on observables leaving the unobservable factors aside again.
Developments in Chile have been centered in regression analysis. Paredes and

Riveros (1993), using the traditional Oaxaca decomposition, estimate the
endowment and discrimination effects for the period 1958-199013. They provide
evidence on discrimination against females during the whole period examined.
Montenegro (1999) and Montenegro and Paredes (1999) analyze the gender wage
differential by using quantile regression and the Oaxaca decomposition. The evidence
also shows stable and systematic differences in the returns to education and to
experience by gender along the conditional wage distribution. In addition, it is also
shown that discrimination is higher for women with more education and experience.
However, these studies conclusions are limited. They lack of several control
variables, related to cognitive and non-cognitive abilities and school and family
environments. In addition, preferences over non-market activities and experience of
Chilean female workers could prove to be a very important unobservable factor.
More recently, Núñez and Gutiérrez (2004) study social class discrimination in Chile
under the traditional Blinder-Oaxaca decomposition. They use a dataset that allows
them to reduce the role of unobservable factors by limiting the population under
study and having better measures of productivity. However, this study has some
limitations. One it is related to the collection of the data. The survey was carried out
by physical mail and had a very low reply rate, 30% approximately. Second, the
survey was carried out on recently graduated college student of one subject only14.
Third, the survey lacks of data on labor history and real experience, family
characteristics and preferences. Fourth, the survey had a very small sample size.
Components 1 and 2 of our proposal will overcome these problems and get more
accurate measures of gender discrimination.
On a different line of research of discrimination in the market-place are the one

involving experiments15. They were originated in Europe en the 1960s and 1970s,
wage gaps. But the gender differences in schooling and cognitive skills are quite small and explain little of
the pay gap. Instead the gender gap is largely due to from choices made by women and men concerning
the amount of time and energy devoted to a career, as reflected in years of work experience, utilization of
part-time work, and other workplace and job characteristics.
12
Ñopo (2004) uses a propensity score matching to determine a sample less heterogeneous and then uses
the Blinder-Oaxaca decomposition for Peru. The matching methodology allows him to quantify the effect of
explicitly recognizing these differences in the supports. In this way, 62% of the gender wage gap in Peru
cannot be explained by differences in observable individuals’ characteristics. Approximately half of the
latter is due to unexplained differences in the highest quintile of the wage distribution.
13
Contreras y Puentes (2001) extended the analyses to 1996.
14
In Chile, high school student choose subject, not colleges as in the US.
15
Riach and Rich (2002, 2004) and Anderson, Fryer and Holt (2005) have a complete survey of these
studies.
5
the ILO in the 1990s and recently experimental techniques has been published in
leading economics journals (Bertrand and Mullainathan, 2004).
Experimental approaches can be divided in two types: audit studies and natural
experiments. The later ones take advantage of unexpected changes in policies or
events (Levitt, 2004; Antonovics, Arcidiacono and Walsh, 2004, 2005; Goldin and
Rouse, 2000, Newmark, Bank and Van Nort, 1996). In Chile, as far as we know,
there are no studies using this kind of variations.
There have been two procedures to carry out audit studies. First, the personal
approach’s strategy which sends individuals to job interviews or does applications
over the telephone. Second, the strategy that sends written applications to real job
vacancies.
The first procedure presents the major criticisms. It has been argued that it is
impossible to ensure that testers are identical. Also, testers were sometimes
adverted that they were involved in a discrimination study and they could behave as
to bias the results.16
The first experiments that used written applications were unsolicited jobs and posted
to “potential employers”; these experiments tested preferential treatment in
employer responses and not the hiring decision. Latter came the ones that sent
curriculum vitae to real solicitudes. Despite the fact that this later technique
overcomes the criticisms of the personal approaches and tests the hiring decision17 it
does not overcome a common problem of the audit studies raised by Heckman and
Siegelman (1993) and Heckman (1998), which is that audits are crucially dependent
on the distribution of unobserved characteristics for each race group and the audit
standardization level. Thus, there may be still unobservable factors, which can be
productivity-determining and not discrimination. Riach and Rich (2002) accepted this
criticism but pointed out that it is not easy to imagine how firm internal attributes18
could enhance productivity. They conclude that while Heckman and Siegelman
(1993) do not tell what could be behind those gaps the argument has “not been
proven”.
Following Bertrand and Mullainathan (2004) and the recent literature we plan to
carry out a field experiment. In this experiment we will send pairs of identical written
applications differing only in the applicant’s gender. Additionally, we will explore the
importance of the socioeconomic origin by introducing the dimension of geographical
location, or neighborhood.
Component 3 will develop this approach. In the next section the contents and
methodology of our research proposal are presented.
16
See Heckman and Siegelman (1993).
17
It really tests the calling back decision. We do not know what can happen next.
18
Such as internal promotion or other.
6
III. Contents and Methodology
As we explained above we are planning to use two different methods: regression

analysis and audit studies to implement three distinct components providing
complementary evidence on the issue of gender discrimination in Chile.
Component 1: Using a New Longitudinal Dataset on Individual

Labor Market Histories
This component contemplates the analysis of the dataset of the Social Protection
Survey (SPS). The SPS is a longitudinal survey that was carried out by the Centro de
Microdatos at Universidad de Chile, under the direction of Professor David Bravo and
in collaboration with a group of researchers from the University of Pennsylvania. The
information from this survey is available for the years 2002 and 2004 and a new
wave is planned in 2006.
The 2002 SPS has seven modules: Labor History and Income, Household
Composition, Pensions, Education, Family History, Individual History and Activities in
the Labor Market. The sample of the first wave was 16.310 individual observations.
Since the SPS has a complete labor market history for female and male workers for
about 20 years (using retrospective data) we are allowed to build real labor market
experiences.
The SPS also has data on Career names and the name of the specific Colleges people
went to and between which years they studied, which can be used to reduce
individual heterogeneity. Additionally, it contains information on the school(s) people
attended.
Moreover, the SPS contains information on family characteristics such as parent’s

education and whether the mother and father were working when they were young.
These two later issues help us to correct for unobserved factors related to pre-labor
market discrimination.
Besides, the SPS has unique data on marital history and the born of children. In
round 2004, modules on wealth and health added information to the panel of 2002
individuals.
This Survey is currently being linked to administrative records (which would allow us
to have effective histories with social security contributions back to 1981),
transforming it into a unique Survey in Chile19.
Although the SPS has a very complete battery of questions that would reduce
unobserved factors, it lacks of one special and newly relevant variable: non-cognitive
abilities. As we explained before these later-in-life non-cognitive ability measures can
be interpreted as previous events that also influence our labor market outcomes20.
Early-in-life discrimination can derive in negative expectations about the future and
therefore could affect, on the one hand, individual investment decisions on human
capital and, in addition, could affect individual’s later-in-life non-cognitive abilities.
Both of these consequences bring effects on future economic outcomes. Next
Component 2 will face these issues.
Component 2: Collecting New Data to Alumni from Universidad

de Chile on three subjects: Medicine, Law and
Business/Economics
Inspired by Núñez and Gutiérrez (2004) we are taking the idea of having a sample of
professional workers, men and women, who are comparable in their academic
formation and analyze their differences in economic outcomes later in the labor
market. However, we want a treatment in the sample design which makes sure the
representativity of the findings.
In particular, in this component we will take a random sample of alumni who studied
in the same Career at the main Chilean university (Universidad de Chile) and finished
their undergraduate studies eight or more years before.21 To have more variation we
will focus in three subjects: Medicine, Law and Business/Economics.
Additionally, we plan to match this information with University records containing

measures of cognitive abilities such as performance in University entry tests (PAA,
Prueba de Aptitud Académica) and college performance.
We will collect data on labor market history, family characteristics and school quality
following the structure of the SPS, which will allow us to take into account pre-labor
market discrimination variables.
19
For a description of technical details, methodology, questionnaires and presentation of the survey may
consult www.proteccionsocial.cl. An analysis of the first results can be found in Bravo (2004) and a first
utilization of the survey to analyze the density of contributions in Chile can be seen in Arenas, Behrman
and Bravo (2004). See the 2002 questionnaire in Appendix 2.
20
See Heckman, Stixrud and Urzua (2005).
21
We choose eight years of graduation because we want to rule out the possibility of unobserved
productivity. We assume that being eight or more years in the labor market is enough time to reveal the
true productivity level of a worker.
8
Finally, we will also collect measures of non-cognitive abilities by taking the Rotter
(1966) and Rosenberg (1965) tests for internal and external locus of control and
self-esteem, respectively.
The Survey will be taken using pollsters (face-to-face interviews) and look for a
minimal sample size of 1,500 observations to be representative.22
The Survey contemplates two parts: the household survey (based on the SPS) and
the Attitudes Test section (non-cognitive ability). 23
Part 1. Type of Household Survey Questions
This Questionnaire will be based on the SPS questionnaire.
It contemplates the application of the following modules: Labor History and Income,
Family Composition, Marital and Maternal History, Family and Individual History and
Education.
Part 2. The Attitudes Tests
These explanations were taken from Heckman, Stixrud and Urzúa (2005).
A. Rotter Internal-External Locus of Control Scale
The Rotter Internal-External Locus of Control Scale is a four-item abbreviated

version of a 23-item forced choice questionnaire adapted from the 60-item Rotter
scale developed by Rotter (1966). The scale is designed to measure the extent to
which individuals believe they have control over their lives, i.e., self-motivation and
self-determination, (internal control) as opposed to the extent that the environment
(i.e., chance, fate, luck) controls their lives (external control). The scale is scored in
the internal direction: the higher the score, the more internal the individual.
Individuals are first shown four sets of statements and asked which of the two
statements is closer to their own opinion. They are then asked whether that
statement is much closer or slightly closer to their opinion. These responses are used
to generate four-point scales for each of the paired items, which are then averaged
to create one Rotter Scale score for each individual.
B. Rosenberg Self-Esteem Scale
The Rosenberg Self-Esteem Scale is a 10-item scale, designed for adolescents and
adults; measures an individual’s degree of approval or disapproval toward himself
(Rosenberg, 1965). The scale is short, widely used, and has accumulated evidence of
validity and reliability. It contains 10 statements of self-approval and disapproval to
22
As we pointed out before, the existing dataset used by Núñez and Gutiérrez (2004) was done by
physical mail and had a very low reply rate; besides, the sample size was small (near 300 observations).
23
See attached documents for details.
9
which respondents are asked to strongly agree, agree, disagree, or strongly
disagree.
Component 3: Implementing an Audit Study
The Audit Study contemplates sending simulated Curriculum Vitae (CV) to job offers
between December 2005 and June 2006. Following recent developments on field
experiments (Bertrand and Mullainathan, 2004) we want to measure gender and
socioeconomic discrimination in the Chilean labor market.
We will select job announcements from the main newspapers in Chile: El Mercurio
and La Tercera. The socioeconomic discrimination will be measured as the
differences in calling back rates from people who live in poor communes versus rich
communes.
In particular, these application forms will be of pairs of woman and man, randomly
living in poor or rich municipalities that are equivalently productive workers. A very
common feature of the Chilean labor market is the use of CV with individual pictures.
Therefore, we also plan to simulate CVs along the beauty dimension, using pictures
from people (with their consent).
This is going to be done for job announcements that can be grouped in asking for:
unskilled, semi-skilled and skilled workers.
Activities needed to develop this component are the following:
1. Creating a Bank of CV.
Samples of CV will be taken from actual job seekers and then alter them enough to
produce distinct CVs. They will be taken from www.laborum.com and other bank of
curriculums. In order to maximize the probability of a call back we will use the most
competitive CVs, making sure we are not making them over-qualified.
There are around 150 job announcements (JA) in “El Mercurio” and “La Tercera”
every Sunday, with a repetition rate of 30% approximately. We will group the JAs in
three skill levels:
• Skilled
• Semi-skilled
• Unskilled
We plan to send two CVs of each gender for each type of JA. So we will be sending
four CVs in total for each JA. In addition to the assignment of gender and skill levels,
we will randomly assign a location (socio economic status) to the CVs. Accordingly,
every week we will send CVs that will be differentiated by these three dimensions.
10
Between March 1, 2006 and August 4, 2006 we estimate to have 2,200 potential JAs
and we need to send approximately a maximum of 8,800 CVs. Of course, we do not
need to have 8,800 different CVs. We only need to have a big enough sample of CVs
for each type of JA.
We will be creating a Bank of CVs for every type of JA of at least 150 CVs. In each of
the three Banks there will be half of them female and half male, and a randomly
assigned place of residence associated to a poor or rich commune.
2. Creating identities for the false applicants.
We will need to create names, telephone numbers, physical address and email
address. Applicants of each gender/commune/type of JA are assigned the same
telephone numbers.
Physical address are taken from the Yellow Pages and assigned to CV. We will also
create email addresses, making sure the CV send to the same type of JA do not have
the same email.
3. Responding to Advertisements.
We will survey every Sunday all JAs in the newspapers EL MERCURIO and LA
TERCERA. We need to keep only JAs that ask for written applications sending by fax
or mail.
4. Implementing a system of register
We do not expect replies to be sent by mail but by call back or email. Phone Lines
will be virtual mobile phone lines. We are planning to register call back by two ways:
with people hired specially to answer the telephones saying that the person that are
looking for is not there, or just ask to leave the message in the voice mailbox.
11
IV. Results
This section explains how we are going to analyze the results of the two alternative
methodological approaches.
Results Method 1: Regression Analyses – Components 1 and 2.
Among the questions to face are the following:
• Is there gender discrimination in Chile?

• How much of the wage differences between women and men are due to
preferences and skill acquisition?
• How much of the wage differences are explained by differences in educational
outcomes between genders?
• How much of the wage differences are explained by differences in non-
cognitive abilities?
• How much of the wage differences are explained by differences in cognitive
abilities?
• How much of the wage differences are explained by the consideration of
detailed labor market histories?
• How is discrimination in every quintile of the distribution?
• Are there differences between men and women who studied the same subject
(law, economics or medicine) after 8 or more years, controlling for other
socioeconomic and individual characteristics (including maternity)?
We will utilize Mincer wage regressions for female and male workers (i=M, F)
separately. We will control for a exhaustive set of relevant variables: Years of
Schooling, Experience, Experience Squared, Type of Career, Type of Job (with
contract, self employed, etc.), Measures of Cognitive and Non-Cognitive Abilities of
the individuals. Formally, let K denote the number of controls. Thus, we postulate an
empirical model for the wages of the form
wi = β 1i + β 2i X 2i + l + β Ki X Ki + µ i
As is extensively discussed in the literature, the misspecification of this model will

deliver biased estimates of the return associated with each of the controls. We will
avoid this limitation by using the rich and complete set of controls obtained from the
SPS and the new survey containing cognitive and non-cognitive measures at the
individual level.
We are also planning to correct for sample selection. We will do so by using an

additional Probability Model to model the probability of being in the labor force. This
later model will have as explanatory identification variables the married condition,
12
number of children and whether his or her mother worked, as well as some of the
controls in the wage regression (particularly, cognitive and non-cognitive measures).
Interesting, by jointly modeling wages and labor force participation we will able to
obtain a clean measure of gender discrimination.
After estimating the parameters of our model, we will analyze the well-known
Oaxaca-Blinder Decomposition:
(wM − wF ) = {βˆ2M (X 2M − X 2F ) + l + βˆkM (X KM − X KF )}+

{(βˆ
1
M
) ( ) (
− βˆ1F + X 2F βˆ2M − βˆ 2F + l + X KF βˆ KM − βˆ KF )}
where βˆki is the parameter associated to the explanatory variable k in the regression
of group i, and X ki is the average of the explanatory variable k of the group i.

We will use this decomposition to break down the total differences in wages by
gender in differences due to differences in prices and endowments and differences
due to discrimination. Additionally, we will use this decomposition to study how each
of the factors explaining wages differences evolve over time.
As mentioned before, the analysis will be extended to include a nonparametric

analysis of the differences in wages. This will be done by implementing quantile
regression and by non-parametrically studying the whole distribution of wages of
women and men separately. Therefore, the scope of our analysis goes beyond the
standard analysis of mean differences between groups.
Results Method 2: Audit Study
Using this method we want to answer the following questions:
• Is there gender discrimination in hiring decisions in Chile?

• Is there socioeconomic discrimination in hiring decisions in Chile?
• What are the factors that determine the probability of having a call back?
• Is there any discrimination in hiring along beauty?
We contemplate to answer these questions by from to separate analyses.
First, we will analyze the number of calls from the potential employer by group
(female, male, poor neighborhood, rich neighborhood). This analysis will be carried
out for each skill level. We will also open these groups by appearance (due to the
planned variation on pictures).
13
Second, we will estimate a Probability Model to characterize the probability of having
a call back as a function of several employment characteristics. With this model we
will be able to identify the factors behind the replying decision of the potential
employers.
Nonparametric techniques are also considered in this method. In particular, we will

estimate the Probability Model characterizing the probability of having a call back not
relaying in functional forms, e.g. non-parametric probit models.
14
V. Proposed activities
A preliminary calendar of project activities to be undertaken is as follows:
Issue Time
Project Starts December 10, 2005
Revised version of Research Proposal December 22, 2005
Progress Report and Work Plan January 20, 2006
Videoconference to discuss progress reports February 10, 2006
Component 1:
Coding of schooling and university variables, SPS December, 2005
Analysis of SPS data January-March, 2006
Preparation of first draft of this component April, 2006
Component 2:
Questionnaire Design December 10-31, 2005
Sampling Frame: locating addresses of the December 10-January 10, 2006
alumni from university records
Questionnaire Programming January 1-15, 2006
Pilot Survey January 15-22, 2006
Analysis of Pilot Survey January 22-31, 2006
Final Questionnaire January 31, 2006
Elaboration of training and interviewer’s manuals February 1-15, 2006
Training of Interviewers March-1-10, 2006
Survey is taken March 11-April 9, 2006
Validated data set ready to be analyzed April 30, 2006
Preliminary material to be included in first draft May 1-30, 2006
Analysis of the data May 1-July 31, 2006
Preparation of first complete draft of this
component August, 2006
Component 3:
Approval from Centro de Microdatos IRB Board December 10-20, 2005
Analysis of Job Announcements last months December 10-20, 2005
Creation of a bank of CVs December 20-January 15, 2006
Creation of identities for false applicants January 1-15, 2006
Pictures from false applicants December 20-January 15, 2006
Implementation of a system to register offers January 15-31, 2006
Sending of CVs to job announcements March 1-August 4, 2006
Analysis of the data August, 2006
First draft of this component September 8, 2006
Research Paper, First Draft May 30, 2006
Workshop June 20, 2006
Research Paper, Second Draft September 8, 2006
Final Workshop October 20, 2006
Final Research Paper November 29, 2006
15
VI. Research Team and Institutional Capacities
The research team will consist of three researchers associated to the Centro de
Microdatos:
1. David Bravo: Labor Economist. Professor, Department of Economics,

Universidad de Chile and Director of the Centro de Microdatos, Universidad de
Chile. (Project Director)
2. Claudia Sanhueza: Labor Economist. Professor, Departament of Economics,

Universidad de Chile and Associate Researcher of the Centro de Microdatos,
Universidad de Chile.
3. Sergio Urzúa: Labor Economist. PhD Student (last year) at the University of
Chicago, Department of Economics. Associate Researcher of the Centro de
Microdatos, Universidad de Chile.
Bravo, Sanhueza and Urzúa have a solid background on Chilean labor market
empirics. Bravo has been principal investigator of several projects (including
previous IDB network) and has directed research based on new data including new
longitudinal surveys (the Social Protection Survey and the Teacher’s Longitudinal
Survey, among others). Sanhueza is making research on gender and education with
an empirical approach. Urzúa is finishing his PhD thesis working on
microeconometrics, labor economics and development and has been coauthoring
papers with J. Heckman.
The Centro de Microdatos also has a survey unit responsible for several of the main
household and longitudinal surveys undertaken in Chile. It is the most important
survey institution in the country (after the INE, the National Statistical Institute).
This Center has the computational facilities needed for the project. Surveys (and the
one included in Component 2) are collected using PDA’s (Palms).
See Appendix 1 for detailed CVs. In addition to this team, it is planned that several
students (undergraduates, 5th year; and graduates from the Master in Economics
Program) will participate as research assistants.
16
VII. Budget
The overall cost of the project amounts US$86,500. Costs associated to the new
survey (component 2) and the audit study add to US$46,500.
We will use the IDB funding for the Survey Cost (component 2) and part of the Audit
Study (component 3). Through this proposal, the Centro de Microdatos commits to
the project financing the rest of the field studies and the researchers and research
assistant fees because we are convinced of the need of good new data.
In case of being selected we will look for funding from public institutions interested in
gender and labor market issues like the Chilean Secretary of Labor and Social
Security (Ministerio del Trabajo y Previsión Social) and the Secretary of Gender
Issues (Ministerio Servicio Nacional de la Mujer). Both institutions have sponsored
several researches undertaken by the Centro de Microdatos in the past. Even if
additional funding is not obtained we will develop the project with our own resources.
Expenses: US$ 86,500
1. Survey Cost (component 2): US$ 39,100
2. Audit Study Cost (component 3): US$ 7,400
3. Professional fees:
3.1. Researchers (3*6months*30%time) US$ 30,000
3.2. Research assistants
(3*6months*50%time) US$ 10,000
Financing: US$ 86,500
1. IDB Network: US$ 40,000
2. Universidad de Chile, Centro de Microdatos US$ 46,500
17
VIII. Dissemination Activities
As a main dissemination activity we propose the presentation of the project results in

a half-day seminar organized jointly by the Centro de Microdatos of the Department
of Economics, Universidad de Chile and the Chilean Secretaries of Labor and Gender
Issues (Ministerio del Trabajo y Previsión Social y Ministerio Servicio Nacional de la
Mujer). Proposed date: December, 2006. This seminar should include the presence of
the main authorities of the Secretaries and the President of the Universidad de Chile
and would be addressed to the public interested in labor market and gender issues in
Chile (previous attendances to this kind of public allow us to estimate it in 200-300
people).
Around this seminar there will be a press conference and it can be foreseen a wide
coverage from the media.
We also commit to disseminate research results in at least two newspaper or

magazine articles, at the time of the seminar.
Working papers will also be presented in the main academic seminars in Chile (the
joint seminar Centro de Economía Aplicada-Departamento de Economía Universidad
de Chile) and the annual meeting of the Sociedad de Economistas de Chile.
18
IX. References
Anderson, Lisa; Roland Fryer and Charles Holt (2005). “Discrimination: Experimental
Evidence from Psychology and Economics.” Forthcoming in Handbook on Economics
and Discrimination, William Rogers, Ed.
Antonovics, Kate; Peter Arcidiacono and Randy Walsh (2004). “Competing Against
the Opposite Sex.” Economics Working Paper Series 2003-08, University of California
at San Diego.
Antonovics, Kate; Peter Arcidiacono and Randy Walsh (2005). “Games and
Discrimination: Lessons from the Weakest Link.” Forthcoming at Journal of Human
Resources.
Altonji, Joseph and Rebecca Blank (1999). “Race and Gender in the Labor Market.”
Handbook of Labor Economics, 3, pp. 3143-3259.
Arenas, Alberto, Jere Behrman and David Bravo (2004) “Characteristics of and
Determinants of the Density of Contributions in a Private Social Security System”.
Working Paper, Michigan Retirement, Research Center, May, 2004.
Becker, Gary (1971) The Economics of Discrimination, 2nd Edition, The University of
Chicago Press, IL.
Becker, Gary (1991) A Treatise on the Family, enlarged edition: Harvard University
Press, Cambridge, MA.
Bertrand, Marianne and Sendhil Mullainathan (2004). “Are Emily and Greg more
Employable than Lakisha and Jamal? A Field Experiment on Labor Market
Discrimination.” American Economic Review, 94(4), pp. 991-1013(23).
Blank, Rebecca; Marilyn Dabady and Constance Citro, Eds. (2004). “Measuring Racial
Discrimination. Panel on Methods for Assessing Discrimination.” The National
Academies Press, Washington, D.C.
Blinder, Alan (1973). “Wage Discrimination: Reduced Form and Structural

Estimates.” The Journal of Human Resources, 7(4), pp. 436-55.
Bravo, David (2005) “Elaboración, Validación y Difusión de Índice Nacional de

Calidad del Empleo Femenino”, Centro de Microdatos, Universidad de Chile. Report
prepared to the Secretary of Gender Sigues (Ministerio Servicio Nacional de la
Mujer).
19
Bravo, David (2004), “Análisis y principales resultados. Primera Encuesta de
Protecciòn Social”. Departamento de Economía, Universidad de Chile y Ministerio del
Trabajo y Previsiòn Social, Julio.
Contreras, Dante y Gonzalo Plaza (2004) “Participación Femenina en el Mercado

Laboral Chileno. ¿Cuánto importan los factores culturales?”, Departamento de
Economía, Universidad de Chile
Contreras, Dante y Esteban Puentes (2001) “Is The Gender Wage Discrimination
Decreasing In Chile? Thirty Years Of ‘Robust’ Evidence”, Departamento de Economía,
Fernandez, Fogli And Olivetti (2004) “Preference Formation And The Rise Of
Women’s Labor Force Participation: Evidence From WWII”, NBER Working Paper
10589
Goldin, Claudia and Cecilia Rouse (2000). “Orchestrating Impartiality: The Impact of
‘Blind’ Auditions on Female Musicians.” American Economic Review
90(4), pp. 715-741.
Heckman, James, and Peter Siegelman (1993). “The Urban Institute Audit Studies:
Their Methods and Findings.” In Clear and Convincing Evidence: Measure of
Discrimination in America. Michael Fix and Raymond Struyk, editors. The Urban
Institute Press, Washington D.C.
Heckman, James (1998). “Detecting Discrimination.” The Journal of Economic

Perspectives,12(2), pp. 101-116.
Heckman, James, Jora Stixrud and Sergio Urzua (2005) “The Effects of Cognitive and
Noncognitive Abilities on Labor Market Outcomes and Social Behavior”, University of
Chicago.
Levitt, Steven (2004). “Testing Theories of Discrimination. Evidence from ‘The

Weakest Link.’” Journal of Law and Economics, 47, pp. 431-452.
List, John (2003). “The Nature and Extent of Discrimination in the Marketplace:
Evidence from the Field.” Quarterly Journal of Economics, 119(1), pp. 49-89.
Moreno, Martin; Hugo Ñopo, Jaime Saavedra and Maximo Torero (2004) “Gender and
Racial Discrimination in Hiring. A Pseudo-Audit Study for Three Selected Occupations
in Metropolitan Lima.” IZA Discussion Paper 979.
Montenegro, Claudio (1999) “Wage distribution in Chile: Does Gender Matter? A

Quantile Regression Approach. Mimeo, Universidad de Chile.
20
Montenegro, Claudio y Paredes, Ricardo (1999) “Gender Wage Gap and
Discrimination: A Long Term View Using Quantile Regression”. Mimeo, Universidad
de Chile.
Neal, Derek A. and William R. and Johnson (1996) “The Role of Premarket Factors in
Black-White Wage Differences”, The Journal of Political Economy, Vol. 104, No. 5
(Oct., 1996), 869-895.
Newmark, David; Roy J. Bank and Kyle D. Van Nort (1996) “Sex Discrimination in
Restaurant Hiring: An Audit Study”, The Quarterly Journal of Economics, Vol. 111,
No. 3 (Aug., 1996), 915-941.
Nuñez, Javier and Roberto Gutierrez (2004) “Classism, Discrimination and

Meritocracy in the Labor Market: The Case of Chile.” Documento de trabajo 208.
Departamento de Economia, Universidad de Chile.
Ñopo, Hugo (2004). “Matching as a Tool to Decompose Wage Gaps.” IZA Discussion
Paper No. 981.
Oaxaca, Ronald (1973). “Male-Female Wage Differentials in Urban Labor Market.”

International Economic Review, 14(3), pp. 693-709.
O’Neil, June E. and Dave M. O’Neil (2005) “What do wage Differentials tell us about
labor Market Discrimination”, NBER Working Paper 11240.
Paredes, Ricardo y Riveros, Luis (1994): “Gender Wage Gaps in Chile. A Long term
View:1958:1990”. Estudios de Economía, Vol.21, Número especial, 1994.
Riach, Peter and Judith Rich (2002). “Field Experiments of Discrimination in the
Marketplace.” The Economic Journal,112, pp. 480-518.
Riach, Peter and Judith Rich (2004). “Deceptive Field Experiments of Discrimination:
Are they Ethical?” KYKLOS, 57(3), pp. 457-470.
Rosenberg, M. (1965). Society and the Adolescent Self-Image. Princeton, NJ:

Princeton University Press.
Rotter, J. B. (1966). Generalized Expectancies for Internal versus External Control of

Reinforcement. Washington DC: American Psychological Association.
21
Appendix I: Curriculum Vitae of the researchers
David Bravo
e-MAIL ADDRESS: dbravo@econ.uchile.cl

DATE OF BIRTH: August 10, 1964.
COUNTRY OF BIRTH: Chile
MARITAL STATUS: Married, 3 children.
EDUCATION: M.A. 1996. Harvard University. PhD Candidate.
Ingeniero Comercial. 1991. Pontificia Universidad Católica de
Chile.Licenciado en Economía. 1987. Pontificia Universidad Católica de
Chile.
WORK EXPERIENCE:
2004-Present: Population Studies Center Affiliate, University of Pennsylvania, for the
2004-2005 and 2005-2006 academic years.
2003-Present: Director, Centro de Microdatos (Microdata Center), Department of
Economics, Universidad de Chile.
1996-Present: Full-time professor, Department of Economics, Universidad de Chile.
1994-1996: Consultant, Harvard Institute for International Development,
Harvard University.
1990-1993: Advisor to the Secretary of Labor and Social Security, Chile.
1988-1990: Research Assistant, CIEPLAN, Corporación de Investigaciones
Económicas para América Latina.
FELLOWSHIPS/ RESEARCH GRANTS/ PROJECTS:
Ongoing Projects/Positions:
-Population Studies Center Affiliate, University of Pennsylvania, for the 2004-2005 and 2005-2006
academic years.
-National Institute of Health, 2004-2008. Project: “Life Cycle, Health, Work, Ageing, Insurance and
Pensions in Chile”. (Principal Investigator: Petra Todd, University of Pennsylvania); Joint project University
of Pennsylvania and Universidad de Chile. Head of the Chilean research team.
-Mellon Foundation Grant to the Population Studies Center of the University of Pennsylvania, 2004-2005.
Project: “Supplementary Funding for Ongoing Collaborative Research Project” (Principal Investigator:
Olivia Mitchell, University of Pennsylvania), co-investigator.
-Principal Investigator and Director of the Chilean Social Protection Survey. Round 1: 2002; Round 2:
2004; Round 3: 2006. Funding: Ministry of Labor and Social Security (Chile) and NIH.
-Director (joint position with Jorge Manzi, Roberto González and Claudia Peirano), Programa Acreditación
de Excelencia Pedagógica (National Teacher Certification Program). 2002-2006. Participant institutions:
Secretary of Education, University of Chile (Centro de Microdatos) and Catholic University (School of
Psychology and Faculty of Education).
-Director of the first Longitudinal Teacher’s Survey (Encuesta Longitudinal de Docentes) in Chile.
Financing: Chilean Ministry of Education. 2005.
-Principal Investigator, Project: “Impact Evaluation of the Employment Programs in Chile”. Evaluation of
three types of employment programs. Funding: Dirección de Presupuestos
-President of the Technical Advisory Board of the University Admissions Test (Prueba de Selección
Universitaria). 2004-2005.
Past Projects (selected):
-Michigan Retirement Research Center (MRRC). Project: “Characteristics of and Determinants of the
Density of Contributions in a Private Social Security System”, 2002-2003. Principal Investigator. Joint
project with Jere Behrman, University of Pennsylvania.
-Fondo de Fomento al Desarrollo Científico y Tecnológico (FONDEF), Conicyt. Project: “Reformulation of
the Admissions Test for Chilean Universities”. Principal Investigator (joint project with Jorge Manzi, School
of Psychology, Catholic University). Project in charge of the design of new university admission tests used
22
in Chile in December 2003. Participant institutions: University Presidents Council; Secretary of Education;
University of Chile and Catholic University of Chile.
-Inter-american Development Bank, Network Research Projects. Project: “On the impact of training
programs in Chile”. Principal Investigator. Years 1999-2001.
-Principal Investigator. Project: “Impact on female labor supply of day-care subsidies”. Funding: Ministerio
Servicio Nacional de la Mujer.
-Principal Investigator. Project: “Income Distribution in Chile: 1990-1996. Analyzing the impact of the
labor market and social policies”. Funding: Fondo para las Políticas Públicas (Public Policies Fund), Ford
Fundation.
-Principal Investigator/Director, Second International Adult Literacy Survey for Chile. 1997-1998.
Participant institutions: Statistics Canada, Educational Testing Service (ETS) and OECD. Funding: Chilean
Government.
PUBLICATIONS/WORKING PAPERS (Selected):
-D. Bravo, “Desempleo: aspectos metodológicos, salario mínimo y rigidez salarial”, en Un diagnóstico del
desempleo en Chile, Centro de Microdatos, BID, Abril, 2005.
-D. Bravo, D. Contreras and E. Puentes, “Female Labour Force Participation in Greater Santiago, Chile:
1957-1997. A synthetic cohort analysis”. Journal of International Development, Vol.17, Issue 2, 169-186,
February, 2005.
-D. Bravo, G. Del Pino, G. Donoso, G. Hawes, J. Manzi and M. Martínez, “Resultados de la Aplicación de
Pruebas de Selección Universitaria Admisión 2004”. Comité Técnico Asesor, Consejo de Rectores,
Documentos Técnicos, September, 2004.
-D. Bravo and J. Vásquez, “Comportamiento manada en las Administradoras de Fondos de Pensiones”
(Herd Behavior in the Private Pension Funds), Working Paper, Departamento de Economía, Universidad de
Chile, July, 2004.
-D. Bravo, Análisis principales resultados. Primera Encuesta de Protección Social. Departamento de
Economía, Universidad de Chile and Ministerio del Trabajo y Previsión Social, July, 2004.
-A. Arenas, J. Behrman and D. Bravo, “Characteristics of and Determinants of the Density of Contributions
in a Private Social Security System”, Working Paper, Michigan Retirement Research Center, February,
2004.
-D. Bravo y R. Macera, “Young Workers Mobility, should we care?”. Working Paper, Departamento de
Economía, Universidad de Chile, May, 2004.
-D. Bravo and D. Contreras, “La Distribución del ingreso en Chile 1990-1996: análisis del impacto del
mercado de trabajo y las políticas sociales”, in Banco Interamericano de Desarrollo, Reformas y Equidad
Social en América Latina y El Caribe, April, 2004.
-J.M. Benavente, D. Bravo and R. Montero, “Returns on the use of computers at work: The evidence for
Chile”, Departamento de Economía, Universidad de Chile, May, 2004.
-D. Bravo, J. Manzi, R. Rosas, P. Flotts and E. Himmel. "Estudio acerca del uso de preguntas de ensayo en
pruebas de selección universitaria" (Study on the use of essay questions in university admission tests”).
PSYKHE, Vol. 12 Nº2, 2003.
-D. Bravo, “Trabajo: Dignidad y Cambios. El Mercado Laboral Chileno” (Labor: Dignity and changes. The
Chilean Labor Market), in E. Tironi, O. Larrañaga, E. Valenzuela, D. Bravo, B. Teitelboim and V. Gubbins,
Cuánto y cómo cambiamos los chilenos. Balance de una Década. Censos 1992-2002 (How and how much
did the Chilean people change?: Balance of a Decade. Census 1992-2002). Book edited by Instituto
Nacional de Estadística, 2003.
-D. Bravo, J. Ramos and S. Urzúa, “Las diferencias en desempleo: INE-U.de Chile” (Differences in
unemployment measures: INE v/s Universidad de Chile). In J. Ramos (ed), Políticas de Empleo e
Institucionalidad Laboral para el Siglo XXI (Employment Policies and Labor Institutions for the XXI
Century), Editorial Universitaria, October, 2003.
-D. Bravo, O. Larrañaga and J. Ramos, “Hacia una nueva agenda de políticas de empleo” (Towards a new
agenda of employment policies). In J. Ramos (ed), Políticas de Empleo e Institucionalidad Laboral para el
Siglo XXI (Employment Policies and Labor Institutions for the XXI Century), Editorial Universitaria,
October, 2003.
-D. Bravo and J. Manzi, “Síntesis del proceso de desarrollo y evaluación de bancos de preguntas para
nuevas pruebas de admisión universitaria” (Synthesis on the development and evaluation process of new
university admission tests). Departamento de Economía Universidad de Chile, Working Paper, July, 2003.
23
-D. Bravo, D. Contreras, J. De Gregorio, T. Rau and S. Urzúa, “Chile: Trade Liberalization, Employment
and Inequality”, in Rob Vos, Lance Taylor and Ricardo Paes de Barros, Economic Liberalization,
Distribution and Poverty. Latin America in the 90s. Edward Elgar Publishing Ltd., January 2003.
-D. Bravo, D. Contreras and S. Urzúa, “Poverty and Inequality in Chile 1990-1998: Learning from
microeconomic simulations”, October, 2002. Working Paper Nº196, Departamento de Economía,
-D. Bravo, D. Contreras and O. Larrañaga, “Functional Literacy and Opportunities”. Working Paper Nº195,
Departamento de Economía, Universidad de Chile, October, 2002.
-D. Bravo, G. Crespi and I. Gutiérrez, Desarrollo se escribe con Pyme: el caso chileno. Desafíos para el
crecimiento (Small & Medium sized Firms and Development: the Chilean case. Challenges for growth).
Book edited by Fundes Chile, CEPAL and Departamento de Economía, Universidad de Chile. May, 2002.
-D. Bravo, D. Contreras and I. Millán, “The Distributional Impact of Social Expenditure: Chile 1990-98”, en
Chile: Poverty and Income Distribution in a High Growth Economy, Volume II, The World Bank, August,
2001.
-D. Bravo and D. Contreras, Competencias y Destrezas Básicas de la Población Adulta (Literacy and Skills
of the Adult Population). Book edited by Ministerio de Economía, CORFO and Universidad de Chile. May,
2001.
-D. Bravo, C. Peirano, M. Sevilla and M. Weintraub, Formación Dual, un desafío para Chile (The dual
system, a challenge for Chile). Book edited by the Secretary of Education, GTZ and Universidad de Chile.
March, 2001.
-D. Bravo, D. Contreras and C. Sanhueza, “PAA, ¿una prueba de inteligencia?” (The Scholastic Aptitud
Test, an intelligence test?). Perspectivas, Vol 4, Nº2, 2001.
-D. Bravo, D. Contreras and E. Puentes, “Female Labor Supply and Day-Care Subsidies in Chile”,
Departamento de Economía, Universidad de Chile, November, 2000.
-D. Bravo, D. Contreras and G. Crespi, “Evaluating Training Programs for Small-Scale Entrepreneurs: a
Pilot Study”. Departamento de Economía, Universidad de Chile, November, 2000. Paper presented at the
Inter-American Seminar on Economics, National Bureau of Economic Research.
-D. Bravo and D. Contreras, “The Impact of Financial Incentives to Training Providers: The Case of Chile
Joven”, Departamento de Economía, Universidad de Chile, November, 2000. Paper presented at the Inter-
American Seminar on Economics, National Bureau of Economic Research.
-D. Bravo, D. Contreras and C. Montero, “Indicadores de Medición del Impacto de la Capacitación en la
Productividad” (Indicators of the impact of labor training on productivity), Relaciones del Trabajo, Año 11,
N°31, 2000.
-D. Bravo, D. Contreras and G. Crespi. Evaluación de Impacto en Formación Empresarial. El caso Fundes
(Impact Evaluation of Entrepreneurial Training Programs. The case of Fundes). McGraw-Hill. 2000.
-R. Godoy, K.O’ Neill, K. McSweeney, D. Wilkie, V. Flores, D. Bravo, P. Kostishack and A. Cubas. “Human
Capital, Wealth, Property Rights and the Adoption of New Farm Technologies: The Tawahka Indians of
Honduras”. Human Organization,, Vol.59, N°2, Summer, 2000.
-D. Bravo. “Competencia y calidad de la Educación en Chile: una revisión de la literatura” (Competition
and School Quality in Chile: a literature review). In P.Cariola and J.Vargas (eds.), Educación Particular
Subvencionada: un aporte a la modernización de la educación chilena (Private-Subsidized Education: a
contribution to the modernization of Chilean education). March, 1999.
-D. Bravo, D. Contreras and C. Sanhueza. “Educational Achievement, Inequalities and Private/Public Gap:
Chile 1982-1997”. Working Paper N°163, August, 1999, Departamento de Economía, Universidad de Chile.
-D. Bravo. Evaluación del Marco Institucional de la Educación Media Técnico Profesional (Evaluation of the
institutional framework of Chilean vocational schools). Book edited by the Secretary of Education. March,
1999.
-D. Bravo, J. Morduch and R. Godoy. “Technological Adoption in Rural Cochabamba, Bolivia”. Journal of
Anthropological Research. Vol.54. 1998.
-D. Bravo, D. Contreras. “Is there any relationship between minimum wage and employment?. Empirical
evidence using natural experiments in a developing economy”. Working Paper Nº157. October, 1998.
Departamento de Economía, Universidad de Chile.
-D. Bravo and A. Marinovic. “La educación en Chile: una mirada desde la economía”. (Education in Chile: a
view from economics). Persona y Sociedad, Volumen XI, Nº2, August. Ilades, 1997.
-D. Bravo and A. Marinovic. “Wage Inequality in Chile: 40 years Evidence”. Working Paper, Departamento
de Economía, Universidad de Chile, August, 1997.
24
Claudia Sanhueza Riveros
Joint Professor, Department of Economics

Research Affiliated, Microdata Center
Faculty of Economics and Business
Diagonal Paraguay 257, Office 1504
Phone: 0056 2 9783368
Fax: 0056 2 9783413
email: csanhueza@econ.uchile.cl
Personal
Date of Birth: 13 Mayo 1974
Country of Birth: Chilean
Children: 2
Education
2001- present PhD Economics (c)
University of Cambridge, Churchill College, UK
PhD Thesis: Essays on Education and Development
Expected: 2005
Supervisors: Dr. Donald Robertson and Dr. Paul Ryan
2000-2001.1.1 MPhil Economics
University of Cambridge, UK
1993-1999.1.1 Ingeniería Comercial, major Economics
Other Studies
2003 Course on Micro-econometrics

Center for Micro-data, Methods and Practice (CEMMAP)
Institute of Fiscal Studies (IFS), London, UK
2000 Course on Advanced Microeconomics
London School of Economics (LSE), London, UK
2000 Course on Advanced Macroeconomics
London School of Economics (LSE), London, UK
25
Research Interests
Applied Econometrics, Labor Economics, Economics of Education, Economics of the

Family and Economic Development.
PhD Paper
• Semi-parametric Estimations of the Sample Selection Model: An Application to

the Return to Schooling in South Africa
• Human Capital Externalities in Chile: City Level Estimates
• Socioeconomic Effects of Residential Segregation in Chile
Publicaciones and Working Papers
• “Sibling Sex Composition Effects on Educational Attainment” (with Daniela

Zapata), Mimeo, Universidad de Chile, 2005.
• “Determinants of the Marital Dissolution in Chile” (with Sandra Quijada and
David Bravo), Mimeo, Universidad de Chile, 2005.
• “Inequality in Latin America: a synthesis of recent research on the levels,
trends, effects, diagnostics and policies for addressing inequality in its
different dimensions", with P. Medrano and D. Contreras, October 2005. The
Inter-Regional Inequality Facility, Overseas Development Institute, London.
• “Parametric and Semi-parametric Estimation of the Returns to Schooling in
South Africa”, with Sonia Bhalotra, Mimeo, Cambridge University, 2005.
• “Human Capital Externalities in Chile: City level estimates”. Mimeo,
Universidad de Chile, 2005.
• “Rendimiento educacional, desigualdad, y brecha de desempeño
privado/público: Chile 1982-1997” (1999), with David Bravo and Dante
Contreras, 7/1999, Documento de Trabajo Nro 163, Facultad de Ciencias
Económicas y Administrativas, Universidad de Chile.
• Prueba de Aptitud Académica, ¿Una Prueba de Aprendizaje?, with David Bravo
and Dante Contreras, Revista Perspectivas, Mayo 2001, Vol 4, Nro. 2.
Awards and Scholarships
2001-2004 Gates Cambridge Scholarship, Bill and Melinda Gates Foundation,

Cambridge University, UK
2001-2004 Overseas Research Students (ORS) Scholarship, given by the Minister
of Science and Education, UK
2001-2004 Full Scholarship granted by the faculty of Economics and Politics,
2002 Churchill College 25th Anniversary of Women Admission Bursary,
2001 Fellow Cambridge Overseas Trust, UK
2001 Stevenson Prize, for Best Performance in the MPhil in Economics
2000/2001, Cambridge University, UK
2000 Cambridge Overseas Trust Bursary, UK
26
1999 Eduardo García D’Acuña Prize, for Academic Excellence and Social
Commitment, Faculty of Economics and Business, Universidad de
Chile.
Teaching Experience
2004- Lecturer Labor Economic and Microeconomics

Carrera de Ingeniería Comercial
2002-2003 Research Assistant, Microeconomics for Mphil in Economics,
Cambridge University.
1994-1999 Research Assistant for: Microeconomics I and II, Macroeconomics,
Econometrics I and II, Universidad de Chile.
Work Experience
2004 – Research Associated

Department of Economics, Universidad de Chile.
Research Affiliated
Centro de Microdatos, Universidad de Chile.
2001-2002 Research Assistant, Department of Applied Economics, University of
Cambridge. Projects in charge of Sonia Bhalotra.
1997-1999 Research Assistant, Department of Economics, Universidad de Chile.
Projects in charge of David Bravo, Dante Contreras and Osvaldo
Larrañaga.
27
Sergio Samuel Urzua Soza
1401 East Hyde Park Blvd. #901 773-256-

6268
Chicago, IL 60615 surzua@uchicago.edu
http://home.uchicago.edu/~surzua/
Personal
Date of birth: March 2, 1977

Place of birth: Santiago, Chile
Education
The University of Chicago

PhD(c) in Economics, July 2005.
Master of Arts in Economics, March, 2003.
Master of Arts in Economics, August 2001.
Bachelor of Arts, March 2000. Major: Economics
Fields
Microeconometrics, Labor Economics and Development.
Work Experience
• Research Assistant, Professor James Heckman, University of Chicago, Illinois.

(Summer 2003 to the present).
• Instructor Professor, Department of Economics, Universidad de Chile (March 2000
to September 2001).
• Research Assistant, Department of Economics, Universidad de Chile (March
1998-December 1999).
Skills
Working knowledge of LaTex, C, FORTRAN, Stata, Eviews, SAS, Gauss, MATLAB.
Honors And Awards
• Esther and T.W. Schultz Endowment, Dissertation Fellowship, University of

Chicago, 2005-2006
• University of Chicago Graduate Fellowship, 2001-05
• Universidad de Chile Graduate Fellowship, 1999-2000
• Universidad de Chile Undergraduate Fellowship 1998
28
• Best Graduate Student, Department of Economics, Universidad de Chile (2000)
• Best BA Student, Department of Economics, Universidad de Chile 1996, 1997,
1998, 1999)
Research And Publications
• “Understanding instrumental Variables in Models with Essential

Heterogeneity” (2005) (With J. Heckman and E. Vytlacil). Review of
Economics and Statistics, forthcoming.
• “The effect of cognitive and non-cognitive factors in behavioral and labor
outcomes” (2005) (With J. Heckman and J. Stixrud). Journal of Labor
Economics, forthcoming.
• “Schooling Choices and the Anticipation of Labor Market Conditions: A
Dynamic Choice Model with Heterogeneous Agents and Learning” (2005).
Unpublished manuscript, Economic Department, University of Chicago.
• “Occupational Choice with Financial Intermediation and Heterogeneity:
Linking Economic Theory and Econometric Practice” (with R. Townsend)
(2005). Unpublished manuscript, University of Chicago, Department of
Economics.
• “The identification and estimation of option values in models with recurrent
states” (with J. Heckman and G. Yates) (2005). Unpublished manuscript,
University of Chicago, Department of Economics.
• “Studying the link between theory and practice in the estimation of labor
demand: an application for Chile” (2005). Unpublished manuscript, University
of Chicago, Department of Economics.
• “New evidence on relationship between fertility spacing and economic
variables” (2005) (with Luis Andres). Unpublished manuscript, University of
Chicago, Department of Economics.
• “Las diferencias en desempleo: INE- U. De Chile” (Differences in The
Unemployment Rate INE-U. DeChile) (with David Bravo and Joseph Ramos).
Working paper Nº 167, Department of Economics,Universidad de
Chile.http://econ.facea.uchile.cl/
• "Trade liberalization and income inequality in Chile. A microsimulation
analysis". (with David Bravo, Dante Contreras y Tomás Ráu). United Nations
Development Programme (UNDP).http://www.undp.org/rblac/liberalization/
• "Poverty and Income Distribution In Chile 1990-1998: Learning from
Microeconomic Simulations". Working paper Nº 196, Department of
Economics, Universidad de Chile
Teaching
Instructor:
• Elements of Economics Analysis 4 (Econ 203), Department of Economics,
University of Chicago, Autumn 2004.
• Topics in Macroeconomics, Department of Economics, Universidad de Chile.
Fall 2001
• Econometrics II, Department of Economics, Universidad de Chile. Fall 2001.
29
• Theory of Prices II, Department of Economics, Universidad de Chile. Spring
and Fall 2000
• Introduction to Economics, Department of Economics, Universidad de Chile.
Fall 2000.
Teaching Assistant:
Graduate Program in Economics, Universidad of Chicago:
• Empirical Microeconomics (Econ 350) - Winter 2004 and Winter 2005- Prof.
James Heckman
• Empirical Analysis 2 (Econ 312) – Spring 2004- Prof. Hidehiko Ichimura
• Empirical Analysis 2 (Econ 312) – Spring 2003- Prof. James Heckman
• Family, Firm and Collective Groups in General Equilibrium: Theory,
Identification and Estimation I (Econ 346) - Fall 2004 and Fall 2005- Prof.
Robert Townsend
Undergraduate Program, University of Chicago:
• Elements of Economic Analysis 4 (Fall 2002, Fall 2003) – Prof. Javier
Birtchenall
• Econometrics A (Spring 2003, Winter 2004) – Prof. Mary Silles
Graduate Program in Economics, Universidad de Chile:
• Quantitative Methods in Economics (Fall 1999, Fall 2000, and Fall 2001),
Macroeconomics I (Fall 1999 and Fall 2000), Macroeconomics II
(Spring2000), and Labor Economics (Spring 1999)
Undergraduate Program, Universidad de Chile:
• Algebra I (Summer 1996 and Fall 1996), Algebra II (Fall 1996), Calculus II
(Spring 1996), Introduction to The Theory of Prices (Fall 1997), Theory of
Prices II (Spring 1997), Econometrics I (Fall 1998, Spring 1998, Fall 1999,
and Spring 1999), Econometrics II (Fall 1999), Labor Economics (Spring
1999).
Referee
• Econometrica
30
Appendix II: Social Protection Survey 2002 Questionnaire
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
Appendix III: Attitudes Questionnaires
53
A. Rotter Internal-External Locus of Control Scale
Slightly Closer to my opinion Much Closer to my opinion
1 2 3 4
1. What happens to me is my own doing
Sometimes I feel that I don't have enough control over the

direction my life is taking
2. When I make plans, I am almost certain that I can make

them work
When I make plans, It is not always wise to plan too far

ahead, because many things turn out to be a matter of good
or bad fortune anyhow
3. Getting what I want has little or nothing to do with luck
Many times we might just as well decide what to do by

flipping a coin
4. Many times I feel that I have little influence over the things
that happen to me
It is impossible for me to believe that chance or luck plays

an important role in my life
54
B. Rosenberg Self-Esteem Scale
Strongly Agree Disagree Strongly

Agree Disagree
I feel that I'm a person of worth, at least on
an equal basis with others
I feel that I have a number of good
qualities.
All in all, I am inclined to feel that I am a
failure.
I am able to do things as well as most other
people.
I feel I do not have much to be proud of.
I take a positive attitude toward myself.
On the whole, I am satisfied with myself.
I wish I could have more respect for myself.
I certainly feel useless at times.
At times I think I am no good at all.
55

PR 270 Proposal

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RESEARCH PROPOSAL:

GENDER DISCRIMINATION AND ECONOMIC

Proposal prepared for

November 22, 2005

Furthermore, Chilean female labor force participation is particularly low, 38.1%

In fact, as pointed out by Heckman (1998) if we do not attempt to detect

Finally, although we will have a current measure of non-cognitive abilities of the

This proposal is organized as follows. Next Section II presents a literature review on

However, we never observe identical individuals. There are several unobservable

The empirical literature attempts to face these problems by two alternative

The regression analysis is focused on analyzing the Blinder-Oaxaca decomposition

Developments in Chile have been centered in regression analysis. Paredes and

On a different line of research of discrimination in the market-place are the one

As we explained above we are planning to use two different methods: regression

Component 1: Using a New Longitudinal Dataset on Individual

Moreover, the SPS contains information on family characteristics such as parent’s

Component 2: Collecting New Data to Alumni from Universidad

Additionally, we plan to match this information with University records containing

Part 1. Type of Household Survey Questions

This Questionnaire will be based on the SPS questionnaire.

Part 2. The Attitudes Tests

A. Rotter Internal-External Locus of Control Scale

The Rotter Internal-External Locus of Control Scale is a four-item abbreviated

B. Rosenberg Self-Esteem Scale

Component 3: Implementing an Audit Study

Activities needed to develop this component are the following:

1. Creating a Bank of CV.

2. Creating identities for the false applicants.

4. Implementing a system of register

Results Method 1: Regression Analyses – Components 1 and 2.

Among the questions to face are the following:

• Is there gender discrimination in Chile?

As is extensively discussed in the literature, the misspecification of this model will

We are also planning to correct for sample selection. We will do so by using an

(wM − wF ) = {βˆ2M (X 2M − X 2F ) + l + βˆkM (X KM − X KF )}+

of group i, and X ki is the average of the explanatory variable k of the group i.

As mentioned before, the analysis will be extended to include a nonparametric

Results Method 2: Audit Study

Using this method we want to answer the following questions:

• Is there gender discrimination in hiring decisions in Chile?

We contemplate to answer these questions by from to separate analyses.

Nonparametric techniques are also considered in this method. In particular, we will

A preliminary calendar of project activities to be undertaken is as follows:

1. David Bravo: Labor Economist. Professor, Department of Economics,

2. Claudia Sanhueza: Labor Economist. Professor, Departament of Economics,

Expenses: US$ 86,500

1. Survey Cost (component 2): US$ 39,100

2. Audit Study Cost (component 3): US$ 7,400

Financing: US$ 86,500

1. IDB Network: US$ 40,000

2. Universidad de Chile, Centro de Microdatos US$ 46,500

As a main dissemination activity we propose the presentation of the project results in

We also commit to disseminate research results in at least two newspaper or

Blinder, Alan (1973). “Wage Discrimination: Reduced Form and Structural

Bravo, David (2005) “Elaboración, Validación y Difusión de Índice Nacional de

Contreras, Dante y Gonzalo Plaza (2004) “Participación Femenina en el Mercado

Heckman, James (1998). “Detecting Discrimination.” The Journal of Economic

Levitt, Steven (2004). “Testing Theories of Discrimination. Evidence from ‘The

Montenegro, Claudio (1999) “Wage distribution in Chile: Does Gender Matter? A

Nuñez, Javier and Roberto Gutierrez (2004) “Classism, Discrimination and

Oaxaca, Ronald (1973). “Male-Female Wage Differentials in Urban Labor Market.”

Rosenberg, M. (1965). Society and the Adolescent Self-Image. Princeton, NJ: