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.

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The evolution of civil rights enforcement and economic prosperity of minorities

Grant Year: 2020

Grant Amount: $74,000

Grant Type: academic

Despite the existence of a vast literature on U.S. labor market discrimination, there is still a lack of empirical evidence on the degree to which the private enforcement of anti-discrimination legislation through the federal courts has influenced racial divides in earnings and other socioeconomic outcomes. Using the Federal Court Cases: Integrated Data Base on Civil Terminations, the authors will create a set of comprehensive measures of civil rights enforcement at the court level, providing the opportunity to track changes in enforcement across 90 U.S. District Courts between 1970 and 2019. These measures of enforcement will be linked to socioeconomic outcomes using data at the individual and household levels in order to shed light on how enforcement of civil rights legislation via the courts influence labor market outcomes and intergenerational mobility of minority groups. In addition, the authors will create a comprehensive dataset on the political party composition of judges across courts and over time to examine how presidential appointees have influenced the evolution of civil rights enforcement and their implications for racial inequities in U.S. labor market outcomes and intergenerational income mobility.

Mark-ups, labor market inequality, and the distributional implications of monetary policy

Grant Year: 2020

Grant Amount: $60,000

Grant Type: academic

This project is part of a broader agenda to develop quantitative macroeconomic models that can be used to study the distributional implications of macroeconomic shocks and policies. Existing macroeconomic models are limited in their ability to create realistic dynamics in the distribution of labor income in response to macroeconomic shocks. Since labor income is one of the most important dimensions of economic inequality and the most important determinant of economic welfare for the majority of U.S. households, this is a significant limitation. This paper will begin by developing a theory to demonstrate the new heterogeneity that is going to be a key force in the model. It will be followed by an empirical section to show the fact that the model is seeking to address and to highlight the important empirical facts that other models are missing, such as that not all labor income is similarly cyclical and that expansionary and productive occupations have systematically different experiences. The final section addresses the general equilibrium consequences of this heterogeneity, a step that is critically important for doing policy counterfactuals.

Labor market frictions and adaptation to climate change: Implications for earnings and job quality of low-skilled workers

Grant Year: 2020

Grant Amount: $49,000

Grant Type: academic

Rising income inequality and declining labor market prospects are among the most salient features of the U.S. labor market today, particularly for non-college-educated men who are more likely to work in jobs which involve exposure to the elements, including in construction, agriculture, or warehousing. Growing evidence indicates that temperature stress may have important impacts on cognitive performance, labor capacity, and workplace safety, suggesting that added extreme heat due to climate change may significantly reduce earnings and job quality for many low-skilled workers. This project asks whether climate change could exacerbate recent trends in economic inequality and, if so, the possible scope for workplace adaptation and policy reforms. This project will examine the impact of a 2006 California policy to mandate a heat-illness-prevention standard on worker injuries, employment, wages, and profitability. It will provide additional evidence on the impact of temperature on workplace safety and contribute descriptive analysis on how various demographic groups are differentially exposed to occupational extreme temperature risk. The research uses administrative data on 11 million workplace injuries in California, injury and fatality data from the federal Office of Safety and Health Administration and the U.S. Bureau of Labor Statistics, and quasi-experimental variation in daily temperature at the U.S. ZIP code level from the National Climatic Data Center. This analysis will allow for an occupation by community zone level breakdown of workplace climate exposure by race, formal education, and immigrant status. The novel coronavirus and COVID-19, the disease caused by the virus, has placed a spotlight on the health and economic inequalities among workers in the United States and so, too, will climate change. By exploring the overall and disparate impacts on workers, this research will provide concrete evidence on policies to mitigate such impacts.

The individual-level effects of diversity programs

Grant Year: 2020

Grant Amount: $15,000

Grant Type: doctoral

This study will seek to explore the consequences of diversity programs on recipients’ individual-level labor market outcomes. Using an audit study, the researcher will examine how Black university diversity scholarship recipients fare when seeking entry-level jobs after graduation in comparison to other Black job applicants. The author then will link these results to a survey of hiring professionals to understand the social and psychological phenomena that may explain the differential treatment of diversity scholarship recipients. The author also will use administrative data from a California postdoctoral program to compare post-Ph.D. outcomes of diversity scholarship recipients to applicants who were closely considered but did not receive the scholarship. The study could add to our understanding of the unintended consequences of diversity initiatives, which may inadvertently stigmatize recipients, and the broader implications of efforts to create more access and more means of support for scholarship recipients of color.

Using job posting and resume data to better understand the U.S. labor market

Grant Year: 2020

Grant Amount: $35,000

Grant Type: academic

The U.S. labor market literature relies, for the most part, on government survey data, which is invaluable for identifying economywide trends and differentials but lacks the detail needed about tasks and occupations to detect changes in how work is organized. This project will use two datasets assembled by Burning Glass Technologies containing millions of job postings and millions of resumes. The data offer the scope and scale to make fine distinctions and explore the array of skills embodied in workers and the tasks called out by employers. This project has three aims. First, it will examine variation within occupational categories and connections across categories. Given the growth of within-occupational inequality, understanding within-occupation heterogeneity in skills and other attributes is extremely important. Second, it will use resume data to examine worker mobility. This is a novel approach and is likely to offer important insights about labor market mobility. Third, it will investigate job quality, including nonwage benefits and employment relations, and the incidence of nonstandard work (temporary, on call, and contract based). Nonstandard work is not regularly measured in government surveys, so exploring whether job posting data can offer insight into the prevalence of nonstandard work arrangements and whether such arrangements are associated with job mobility and access to nonwage benefits, as well as differences in wage levels between similar occupations with different employment relations, could lay the groundwork for future research.

Monetary policy, credit, and labor income redistribution

Grant Year: 2020

Grant Amount: $58,110

Grant Type: academic

There is an enormous amount of interest recently in the heterogeneous effects of monetary policy, with an eye on questions such as whether monetary policy contributes to inequality. This research will examine two significant research questions within this literature: the effect of monetary policy on inequality and differential effects of the credit transmission channel. This project will use Portuguese administrative data that matches employer-employee data with credit registry data. The project is likely to lead to fine-grained estimates of the effects of monetary policy on the distribution of labor income, as well as on the effects of the distribution of firm credit outcomes.

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?

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Funded research

Macroeconomics and Inequality

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

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Funded research

Market Structure

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

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Funded research

The Labor Market

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

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