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

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Adapting to Policy Changes: Private Early Care and Education Providers’ Responses to Chicago’s Public Preschool Expansion and Illinois’ Smart Start Workforce Grants 

Aida Pacheco-Applegate (University of Chicago) will study the effects of preschool expansion and wage grants on early care and education providers in Chicago to demonstrate how public investments affect provider stability, service distribution, and equitable access. Co-funded with the Russell Sage Foundation. Additional support provided by the Washington Center for Equitable Growth.

Beyond Direct Discrimination

Darien Kearney (Howard University) will use longitudinal data from the Panel Study of Income Dynamics (2005–2015) and structural modeling to examine how perceived racial discrimination affects labor market outcomes among Black Americans. Co-funded with the W.E. Upjohn Institute for Employment Research and the Russell Sage Foundation. Additional support provided by the Washington Center for Equitable Growth.

The Opt-Out Mechanism for Paid Family and Medical Leave Insurance: Could it Work?

Grant Year: 2018

Grant Amount: $35,000

Grant Type: doctoral

This project seeks to determine the feasibility of a paid family and medical leave insurance (PFMLI) program with an opt-out mechanism. While state PFMLI programs in the United States vary somewhat in program parameters, all essentially require eligible workers to participate and are funded through payroll contributions. Some allow employers to self-insure and opt out of the public program. Generally, employees do not have that option. But proposed legislation in New Hampshire would create a program that contains an employee opt-out mechanism. There is a large gap in understanding of this design choice. Which individuals would opt out? And which would opt out initially and then opt in later? And how would that interact with the employer self-insurance opt-out? The answers have lasting implications for the cost of the program, the level of benefits that can be offered, the possibility of implicit or explicit bias against low-wage women workers of reproductive age, and the ultimate success of the program. The researcher will create, distribute, and analyze a survey of New Hampshire workers in an effort to predict their behavior if such a program were to be implemented.

The Impact of Work-Family Legislation on Business: The Case of New York City’s Paid Sick Days Law

Grant Year: 2014

Grant Amount: $20,150

Grant Type: doctoral

This project seeks to identify the impact of workforce characteristics on the employer costs of implementing paid leave policies. The researchers will perform an empirical examination of the way New York City’s paid sick days law has affected covered businesses. They will undertake an employer survey of 350 firms, analyze the impact of workforce characteristics on costs, firm profitability, the share of the workforce that has access to paid sick days, and on the number of paid sick days available to specific categories of workers before and after the law.

Public policy and opioid drug abuse: Investigating the effects of paid family and medical leave and Medicaid

Grant Year: 2019

Grant Amount: $135,700

Grant Type: doctoral

This research will analyze how state-level paid family and medical leave and Medicaid expansions influence drug-related outcomes. The research team will draw from a variety of administrative data sources, including restricted individual-level mortality data from the Centers for Disease Control; data from the Healthcare Cost and Utilization Project’s National Inpatient Sample and Nationwide Emergency Department Sample; and the Treatment Episode Data Set-Admissions. Drawing from these rich data sources in combination with information on population demographic characteristics and state policies, the team will employ a variety of causal inference techniques to examine whether access to paid family and medical leave can help reduce the abuse of opioids. While a large literature has examined the impacts of paid family and medical leave on parental leave-taking, labor market outcomes, and child health, there is no research to date on whether it can influence drug abuse and treatment. Similarly, there is little research on the effect of Medicaid coverage on drug-related deaths or measures of drug-related morbidity.

Federal financial aid and postsecondary success for low-income students

Grant Year: 2019

Grant Amount: $15,000

Grant Type: doctoral

This research will investigate how low-income and first-generation students respond financially and academically to financial aid austerity by exploiting a 2011 change that the U.S. Congress made to Pell grant eligibility that affected nearly 286,000 students. As a result, an estimated 12,000 students were eliminated from eligibility for a Pell grant, and 274,000 students received fewer grant dollars. The project will estimate the impact of this sudden unexpected loss in financial aid on college attendance, financial aid, and labor supply outcomes for low-income college students using a combination of restricted-use data from the Beginning Postsecondary Students survey and the National Postsecondary Student Aid Study. The researcher will use the panel nature of the data to track changes in outcomes for students from one academic year to the next. A regression discontinuity design will be employed to estimate the causal effect of the loss on various educational and labor market 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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