This paper examines how expanding access to higher education affects other members of the household. We study sibling spillovers from Ser Pilo Paga, a financial aid program introduced in Colombia in 2014 that offered full scholarships to high-achieving students from low-income families. Using administrative data that link siblings across years and exploiting the program’s eligibility thresholds, we estimate how younger siblings respond when an older sibling qualifies for financial aid. Younger siblings of eligible students perform better in school and are more likely to continue to higher education. They score 0.11 standard deviations higher on the national high school exam and are 14 percent more likely to enroll in higher education, with enrollment shifting toward high-quality universities. In the labor market, younger siblings in treated families work less in the short run, consistent with increased time in school, and their employment and earnings later converge to those of similar households without scholarships. Convictions for criminal offenses fall by about 60 percent, concentrated among poorer families. To understand how these effects arise, we combine university records of older siblings with early standardized tests of younger ones. The results show that spillovers appear early and are stronger when the older sibling performs well in college. The evidence points to intangible channels, including motivation, aspirations, and perceived returns to education, rather than to direct financial relief as the main mechanism behind these within-family effects.

There is a large proliferation of illegal activities in most countries, which likely has deep economic implications. This paper evaluates the interaction between illegal activities and the formal economy. To do this, I take advantage of one of the largest anti-drug actions in a drug producing country: Colombia’s Drug Eradication Program (DEP). The program began in 1994, but in 1999, it saw a significant escalation when aerial spraying of industrial coca crops became the cornerstone of Plan Colombia. Importantly, before 2003, a decree exempted peasants with no more than three hectares from being sprayed, as aerial fumigations were justified as only targeting commercial plantations. My analysis yields three main results. First, I find that coca cultivation decreases by 63 percent in commercial plantations. Second, I show the presence of spillover effects resulting from the DEP. I use a difference-in-differences design leveraging time variation (before and after the start of Plan Colombia in 1999) and spatial variation by comparing municipalities suitable for coca cultivation with less suitable ones. Compared to the control group, suitable areas (outside of commercial plantations) saw an average increase of 21 hectares of coca cultivation per 1,000 hectares of agricultural land. Third, I then ask how anti-drug actions in key coca hubs leads to an increase in coca in other suitable municipalities. I find that one of the mechanisms behind this shift is consistent with internal migration. I also show that when demand for illicit crops increases, tax revenue from commerce and industry decreases by 10.2 percent.

We investigate the impact of gender on labor market informality in Brazil, specifically examining firms’ contract offerings and the gender wage gap. We employ an event study that leverages labor inspections and maternity leave extensions, alongside a structural model, to analyze how firms adjust their hiring practices in anticipation of the costs associated with hiring women. Our study addresses critical questions regarding the determinants of contract offerings, the role of these contracts in contributing to the wage gap, and the strategic use of informal contracts. Our findings reveal significant gender-specific responses from firms following audits, indicating notable differences in hiring and contracting strategies. Furthermore, we plan to explore how the types of contracts offered to women influence the persistent wage gap. By developing a theoretical framework that incorporates worker-side factors influencing contract acceptance, we will enhance our understanding of the dynamics within the informal labor market.