The current genetic makeup of Latin America has been shaped by a history of extensive admixture between Africans, Europeans and Native Americans, a process taking place within the context of extensive geographic and social stratification. We estimated individual ancestry proportions in a sample of 7,342 subjects ascertained in five countries (Brazil, Chile, Colombia, México and Perú). These individuals were also characterized for a range of physical appearance traits and for self-perception of ancestry. The geographic distribution of admixture proportions in this sample reveals extensive population structure, illustrating the continuing impact of demographic history on the genetic diversity of Latin America. Significant ancestry effects were detected for most phenotypes studied. However, ancestry generally explains only a modest proportion of total phenotypic variation. Genetically estimated and self-perceived ancestry correlate significantly, but certain physical attributes have a strong impact on self-perception and bias self-perception of ancestry relative to genetically estimated ancestry.

Using data from a randomized experiment, we find that poor rural Mexican households invested part of their cash transfers from the Oportunidades program in productive assets, increasing agricultural income by almost 10 percent after 18 months of benefits. We estimate that for each peso transferred, households consume 74 cents and invest the rest, permanently increasing long-term consumption by about 1.6 cents. Results suggest that cash transfers can achieve long-term increases in consumption through investment in productive activities, thereby permitting beneficiary households to attain higher living standards that are sustained even after transitioning off the program. (JEL D14, H23, I38, O12)

Can personality traits be measured and interpreted reliably across the world? While the use of Big Five personality measures is increasingly common across social sciences, their validity outside of western, educated, industrialized, rich, and democratic (WEIRD) populations is unclear. Adopting a comprehensive psychometric approach to analyze 29 face-to-face surveys from 94,751 respondents in 23 low- and middle-income countries, we show that commonly used personality questions generally fail to measure the intended personality traits and show low validity. These findings contrast with the much higher validity of these measures attained in internet surveys of 198,356 self-selected respondents from the same countries. We discuss how systematic response patterns, enumerator interactions, and low education levels can collectively distort personality measures when assessed in large-scale surveys. Our results highlight the risk of misinterpreting Big Five survey data and provide a warning against naïve interpretations of personality traits without evidence of their validity.

At least one co-author has disclosed a financial relationship of potential relevance for this research. Further information is available online at http://www.nber.org/papers/w20965.ack NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

In this paper we test whether poor households use cash transfers to invest in income generating activities that they otherwise would not have been able to do. Using data from a controlled randomized experiment, we find that transfers from the OPORTUNIDADES program to households in rural Mexico resulted in increased investment in micro-enterprise and agricultural activities. For each peso transferred, beneficiary households used 88 cents to purchase consumption goods and services, and invested the rest. The investments improved the household's ability to generate income with an estimated rate of return of 17.55%, suggesting that these households were both liquidity and credit constrained. By investing transfers to raise income, beneficiary households were able to increase their consumption by 34% after five and a half years in the program. These results suggest that cash transfers to the poor may raise long-term living standards, which are maintained after program benefits end. JEL Codes: I38, D12, D13, O12 Keywords: conditional cash transfer programs, randomized experiment, long run living standards, agricultural investments, micro-enterprise activity, liquidity and credit constraints.