Funded Research

Our funding interests are organized around the following four drivers of economic growth: macroeconomics and inequality, market structure, the labor market, and human capital and wellbeing. We consider proposals that investigate the consequences of economic inequality, as well as group dimensions of inequality; the causes of inequality to the extent that understanding these causal pathways will help us identify and understand key channels through which inequality may affect growth and stability; and the ways in which public policies affect the relationship between inequality and growth.

Explore the Grants We've Awarded

Reset

Exploring disparate impact in online retailing

Grant Year: 2022

Grant Amount: $85,000

Grant Type: academic

This project studies discrimination in online retail grocery stores. Do different consumers get charged a different price based on their perceived race? To answer this question, the author will implement a massive data collection exercise using web scraping. The data will combine firm-level data on products and prices with geography and aggregate socioeconomic indicators. This provides information on the underlying consumers in those areas. In the first phase of the project, the shopper’s race is based solely on geography. Future phases of the project will attempt to use browsing history to find racial differences in the shoppers. Web crawlers will be used to collect prices based on location to understand how online prices faced by consumers vary across socioeconomic and racial groups (imputed based on location). This research will identify whether online shopping allows retailers to price discriminate in ways that are harder to do in person.

Monetary Policy and the Dynamics of Wealth Inequality

Grant Year: 2022

Grant Amount: $15,000

Grant Type: doctoral

This project looks to determine the effect of monetary policy on wealth inequality in the United States. The author seeks to add to the literature demonstrating how portfolio heterogeneity is an important driver of wealth inequality. One contribution of the research is the use of the Distributional Financial Accounts. This dataset, collected by the Federal Reserve, reconciles the definitions of wealth between the Fed’s Survey of Consumer Finances and the quarterly flow of data from its Z.1 Financial Accounts of the United States, and then combines the datasets to create a series that tracks wealth for four quantile bins of households by wealth at a quarterly frequency. A key strength of the Distributional Financial Accounts is the ability to decompose quarterly wealth data into component asset and liability classes, allowing for the study of the channels by which monetary policy affects wealth for different groups of U.S. households.

Race and Outside Options: Evidence from U.S. Employer-Employee Data

Grant Year: 2022

Grant Amount: $15,000

Grant Type: doctoral

This project asks how the racial composition of workers’ professional networks affect their wage growth and access to outside opportunities. Existing research has estimated that the inclusion of underrepresented workers in the U.S. economy since 1960 significantly contributed to U.S. GDP growth. Yet racial divides in earnings and opportunities persist. Understanding the sources of these gaps is critical for understanding growing income inequality and fostering broad-based growth. While many explanations have been proposed, relatively little is known about the extent of U.S. labor market segregation and its consequences today. This project will use restricted firm-level data to explore the role of workers’ professional networks in the persistence of race disparities in the U.S. labor market. Building on recent work showing that workers are able to renegotiate their wages when labor demand increases in their networks, and that referred workers are often similar to referrers in terms of age, gender, and race, the author proposes to estimate the impact of changes in the composition of the professional networks of workers to investigate whether the impact of an increase in local labor demand is sensitive to the size of the professional networks for underrepresented groups. This analysis will then be used to calibrate a search model that estimates the contribution of labor market segregation to the wage gap.

Inequality and Targeting of Disaggregated Policy

Grant Year: 2022

Grant Amount: $74,929

Grant Type: academic

This project explores the question of how policy shocks propagate through the economy. The researchers will build a large dataset using Danish Bank and Danish government administrative data to build matrices of income, consumption, and production in different regions and sectors, as well as how income, consumption, and production in different regions and sectors are interconnected. This “disaggregated economic account” will be used to trace out how a shock that hits one part of the economy propagates to other parts and determine the aggregate impact of the shock. The resulting model will help define optimal policy responses to different kinds of shocks, to measure how certain shocks affect income inequality and growth, and to identify the most important channels that propagate shocks. Tracing how a shock in one sector filters through the economy is only possible with this type of administrative data linked in this way.

Labor Unions and Workplace Safety Before and During the COVID-19 Pandemic

Grant Year: 2022

Grant Amount: $65,000

Grant Type: academic

This project extends ongoing work by this research team on nursing home unionization and COVID-19 preparedness. The interdisciplinary team takes a mixed-methods approach to estimate the causal link between collective bargaining and workplace safety prior to and during the pandemic. The researchers have built a proprietary dataset of union status of all 15,000 nursing homes in the United States and merged it with publicly available Center for Medicare and Medicaid Services workplace-level data on COVID-19 outcomes in nursing homes. They will use this dataset to examine the impact of unionization on health and injury outcomes (and racial differences) before and during COVID-19 in the 2016–2021 period. Using an event-study difference-in-difference framework will allow them to capture the validity of parallel trends assumptions, and the proposed regression discontinuity design will help to establish the causal effect of unionization on worker COVID-19 infection outcomes. This is an important question that has significant resonance right now, as we are seeing a resurgence of union activity among major employers.

HBCU Enrollment and Longer-Term Outcomes

Grant Year: 2022

Grant Amount: $67,273

Grant Type: academic

This proposal will utilize a large and comprehensive dataset to evaluate whether historically Black colleges and universities, or HBCUs, can narrow or close racial gaps on numerous measures of economic well-being, not just typical measures such as income. The dataset links College Board SAT data with credit bureau data and National Student Clearinghouse data. It includes students who took the SATs between 2004 and 2010, tracking them from high school through college, and will allow the authors to look at financial outcomes at age 30. Using these data, the authors will compare the longer-term outcomes for Black students who attend these schools versus similar students who applied to but did not attend one. The authors will explore several outcomes, including those where racial disparities exist, such as college-related debt, other forms of debt, and whether the individual has a mortgage (a proxy for homeownership). The credit data also give a more complete picture of income than earnings since it covers all types of income. Existing research shows how important social supports and social capital are to economic mobility. This project will shed light on the distinctive social and psychological value-added features of historically Black colleges and universities.

Funded research

Human Capital and Wellbeing

How does economic inequality affect the development of human capital, and to what extent do aggregate trends in human capital explain inequality dynamics?

View

Funded research

Macroeconomics and Inequality

What are the implications of inequality on the long-term stability of our economy and its growth potential?

View

Funded research

Market Structure

Are markets becoming less competitive and, if so, why, and what are the larger implications?

View

Funded research

The Labor Market

How does the labor market affect equitable growth? How does inequality in turn affect the labor market?

View