nep-lam New Economics Papers
on Central and South America
Issue of 2026–10–19
two papers chosen by
Maximo Rossi, Universidad de la RepÃúºblica


  1. Scaling Up Counseling with AI: Evidence from a Nationwide Experiment By Ajzenman, Nicolás; Del Toro Mijares, Ana Teresa; Elacqua, Gregory; Hermosilla, Catalina; Veleda, Santiago Nicolas
  2. Physicians' Occupational Licensing and the Quantity-Quality Trade-off By Juan Pablo Atal; Tomás Larroucau; Pablo Muñoz; Cristóbal Otero

  1. By: Ajzenman, Nicolás; Del Toro Mijares, Ana Teresa; Elacqua, Gregory; Hermosilla, Catalina; Veleda, Santiago Nicolas
    Abstract: A central obstacle to scaling many interventions is implementer quality: as a program expands and the pool of implementers broadens, average quality falls. Conversation-based interventions (counseling, mentoring) are particularly sensitive to this constraint. LLMs offer a natural way out: personalized exchanges at zero marginal cost and uniform quality. We run a nationwide experiment in Chile (N42, 000) designed to reduce teacher shortages by increasing applications to education majors. We compare an AI chatbot, Kai, with trained human counselors, both reaching high school seniors via WhatsApp. Among students with baseline interest in education (the interventions target), Kai significantly increases first-ranked education majors and the share of education majors in students choice sets; estimates in the human arm are smaller and not significant. Although the best human counselors are highly effective, Kai matches or outperforms roughly two- thirds of them. Its advantage lies in what we call “controlled variance”: it compresses the dispersion in quality observed across human implementers. Finally, text analysis reveals different interaction patterns across arms. Kai concentrates on factual content and scores higher on semantic coherence, while counselors score substantially higher on motivational and empathetic language.
    Keywords: Teachers;teacher shortages;Sclae-up;behavioral interventions;AI chatbots;Generative AI
    JEL: D91 I23 I25
    Date: 2026–10
    URL: https://d.repec.org/n?u=RePEc:idb:brikps:14771
  2. By: Juan Pablo Atal; Tomás Larroucau; Pablo Muñoz; Cristóbal Otero
    Abstract: Occupational licensing is a widespread quality regulation that potentially increases the quality of labor but reduces its quantity. We provide a theoretical framework to empirically quantify this trade-off in public hospitals, where both clinical quality and physician shortages are critical concerns. Using quasi-exogenous variation driven by a recent and unprecedented migration of physicians to Chile, together with growth in domestic medical schools, we show that more physicians improve patient outcomes, while lower-quality physicians—as measured by licensing exam performance—worsen them. Incorporating these findings into our theoretical framework, we evaluate the implications of locally changing the stringency of the licensing policy.
    JEL: I18 J24 J44 J45
    Date: 2026–10
    URL: https://d.repec.org/n?u=RePEc:nbr:nberwo:35855

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