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The fly‐in/fly‐Out (FIFO) or, drive‐in/drive‐out (DIDO) labour system is a long‐distance commuting work arrangement to attract workers towards remote mineral or fossil fuel extraction areas, where they work in shifts and then return to their usual place of residence located in a different region. Along with more and cheaper transportation alternatives, the use of FIFO/DIDO systems have importantly increased in last decades around the world, which has translated to FIFO/DIDO systems operating even when already established cities are present in extractive regions. This paper uses the case of Chile, one of the most important mining countries in the world, to explore whether and in what extent these labor systems influence wage compensations. We find that FIFO/DIDO commuters obtain an average wage compensation of 2.4 per cent per commuted hour. [ABSTRACT FROM AUTHOR]

This article evaluates economies of scale in local public spending in Chile, emphasizing the country's geographical features and high fiscal heterogeneity. We leverage balanced panel data for ten years and 307 municipalities in order to estimate the population level at which a reduction in the average cost of local public goods provision occurs and to differentiate between levels of market potential. We follow a theoretical model of cost efficiency that considers spatial interactions and spillover effects among neighboring jurisdictions. Our findings suggest that Chilean municipalities reach an optimum population level at around 700,000 inhabitants, which is high considering that only two cities qualify. When differentiating for levels of economies of scale according to levels of market potential, municipalities with a low potential reach their optimum at around 28,000 inhabitants, those with a medium potential reach it at approximately 124,000, and those with a high potential reach it at approximately 680,000. • Few cities reach Economies of scale in local public spending in Chile. • First nature influences the distribution of population and Economies of Scale. • Optimum level of population varies according to the market potential of each city. • Policies must consider the effect of first nature on population distribution. [ABSTRACT FROM AUTHOR]

This article discusses the relation between the Municipal Common Fund (Fondo Común Municipal, FCM) and the convergence in municipal income in Chile between 2001 and 2011. Using quasi experiments and dynamic equations, we demonstrate that this decentralization instrument does not have a significant effect on the speed of convergence. The weak development of decentralization and the low incentives for municipalities to obtain their own sources of financing could promote strategic behaviors that distort the redistributive effect of the FCM for municipalities. That fact would decrease the impact of the FCM in reducing regional disparities in Chile. [ABSTRACT FROM AUTHOR]

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The aim of this paper is to build, for the first time, a spatial housing price index for the Chilean communities. The first step is to recover hedonic prices of three housing attributes by estimating a mixed index model using a generalised method of moments ( GMM) procedure. Second, a censored almost ideal demand system is estimated to build expenditures for every community and to compare them among different spatial units, while maintaining a constant utility level. Using micro data from the 2009 CASEN survey, we show that there are important differences in the expenditure of a consumer in Santiago to access the same level of welfare in another community in the country and there are important differences in housing prices among Chilean communities [ABSTRACT FROM AUTHOR]

This paper presents an empirical framework for analysing spatial wage inequality in Chile. Chile is primarily characterized by two stylized facts: the high spatial concentration around the metropolitan area and the key role of natural resources in the country. The paper considers both elements in a competition between NEG (new economic geography) and a theory based on natural resource endowment, with both theories incorporating human capital via a multilevel analysis. The results show the poor performance of NEG for Chile and indicate that natural resources are the principal cause of spatial wage variability in Chile. RÉSUMÉ La présente communication illustre un cadre d'analyse empirique de l'inégalité spatiale entre les salaires, au Chili. Le Chili est caractérisé principalement par les deux faits stylisés suivants : une concentration spatiale élevée autour de la zone métropolitaine, et le rôle essentiel que jouent les ressources naturelles dans ce pays. Cette communication se penche sur ces deux éléments dans le cadre d'une compétition entre deux théories : d'une part la nouvelle géographie économique (« NEG »), de l'autre une théorie fondée sur la dotation en ressources naturelles, ces deux théories incorporant le capital humain par le biais d'une analyse à multiples niveaux. Les résultats démontrent les mauvais résultats de NEG pour le Chili, et indiquent que les ressources naturelles sont la principale cause de la variabilité spatiale des salaires au Chili. EXTRACTO Este estudio presenta un marco empírico para analizar la desigualdad espacial de los salarios en Chile. Chile se caracteriza principalmente por dos hechos estilizados: la alta concentración espacial alrededor del área metropolitana y la función clave de los recursos naturales del país. El estudio considera ambos elementos en una competición entre la NEG (Nueva Geografía Económica) y una teoría basada en el legado de recursos naturales, donde ambas teorías incorporan el capital humano a través de un análisis de múltiples niveles. Los resultados muestran un bajo rendimiento de la NEG en relación con Chile e indican que los recursos naturales son la causa principal de la variabilidad espacial de los salarios en Chile. 摘要: 本文提出了一种分析智利区域工资不均的经验框架。智利主要有两大特点:大城市地区高度空间聚集和农村地区自然资源作用巨大。本文在对NEG (新经济地理学)和基于自然资源储藏量的理论进行比较时, 考虑了这两个因素, 同时还通过多层次分析纳入了人力资源因素。结果显示智利NEG性能很差, 表明智利区域工资差异的主要原因是自然资源。 [ABSTRACT FROM AUTHOR]

This paper proposes a methodology for a spatial cost index of housing that considers spatial heterogeneity in properties across regions. The index is built by combining three different techniques to reduce the spatial heterogeneity in housing: Quasi-experimental methods, hedonic prices and Fisher spatial price index. Using microdata from the Chilean survey CASEN 2006, it is shown that the quasi-experimental method called Mahalanobis metric within propensity score calipers (MMWPS) leads to a significant reduction in the potential bias. The technique matches dwellings of a particular region with other properties of similar characteristics in the benchmark region (Metropolitan region). Once the houses are matched, a hedonic price model is computed, and a regional housing price matrix is created using Fisher spatial price indices. The paper concludes the existence of price differentials for homogeneous houses across regions in Chile. [ABSTRACT FROM AUTHOR]

The aim of this article is to develop a methodology for a spatial or regional cost index of housing that considers spatial differentials across regions. Using microdata from the Chilean survey CASEN 2003, it is showed that a spatial or regional housing price index based on the weighted mean or the estimators of hedonic price equations might lead to biased results due to spatial heterogeneity. The potential bias is reduced by matching the houses in a region with a clone in the Metropolitan Region, according to own and neighbors' characteristics using propensity scores. As a result a very different pattern of spatial cost of housing arises. Finally, using a Fisher ideal price index, the paper proposes a spatial or regional cost index of housing that shows price differences for homogeneous houses across regions. [ABSTRACT FROM AUTHOR]