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Juan Esteban Saavedra is a Lecturer in Public Policy at Harvard Kennedy School and a Faculty Research Fellow at the National Bureau of Economic Research .

Dario Maldonado is an Associate Professor of Public Policy at the Alberto Lleras Camargo School of Government, Universidad de los Andes, Bogota .

Lucrecia Santibañez is a Professor of Education at UCLA’s School of Education and Information Studies .

Luis Omar Herrera Prada is a Senior Research Analyst at the International Monetary Fund and a member of the Ibero-Amerika Institut at the University of Göttingen .

Maximilian Bach works at the Federal Statistical Office of Germany (corresponding author, . He was a researcher in the Department of Labour Markets and Social Insurance at ZEW Mannheim when this paper was written. Part of this paper were written while he was a Ph.D. student at the Graduate Center DIW and Humboldt University Berlin.

Stephan Sievert works at the Federal Ministry of Labour and Social Affairs. He was a guest researcher at DIW Berlin when this paper was written.