Vial Lecaros, Felipe; D. Zárate, Román; Pérez … - 2023
This paper estimates the effects of a subway expansion on labor market outcomes in Santiago, Chile. First, we estimate … firms' labor market power in areas where the subway expanded. We then lay out a model with labor market oligopsonies to … from improved worker-firm matching and ii) gains from reducing labor misallocation due to labor market power. We analyze …