Grant Category

The Labor Market

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

The labor market is one of the most important institutions determining economic growth and its distribution, as labor income is more than two-thirds of national income. Skill levels and the efficient matching of skills to jobs are key for economic growth. Yet the labor market is not a perfectly competitive market, but rather one that is regulated by a wide array of institutions that affect labor income and its distribution.

We need a better understanding of the two-way link between equitable growth and the labor market. How does the labor market affect equitable growth? How does inequality, in turn, affect the labor market?

  • The effect of the labor market on equitable growth
  • The effects of inequality on the labor market
  • The effects of productivity on the labor market

Explore the Grants We've Awarded

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Social preferences at work: Evidence from online lab experiments and job-to-job mobility in the LEHD dataset

Grant Year: 2016

Grant Amount: $15,000

Grant Type: doctoral

This project offers a novel twist on intra-firm mobility and job-to-job transitions by using preferences to look at labor market decisions and not simply tax preferences. Using a combination of online lab experiments and employee-employer matched LEHD data, the research will test for individual social preferences over payoff distributions.

Those jobs ain’t coming back: The consequences of an industry collapse on two tribal reservations

Grant Year: 2016

Grant Amount: $15,000

Grant Type: doctoral

This research project uses qualitative data to explore the mechanisms that link the decline of employment options to the rise in drug use, the decline in labor force participation, and other negative socio-economic and behavioral consequences for males. Unlike many studies of industry decline which look at urban communities, this work focuses on the loss of natural resource employment in rural areas. Specifically, the researcher focuses on the lack of employment options and life outcomes on two Native American tribal reservations, The Yurok and Hoopa Valley Reservations, located in California’s northwest. A member of the Yurok tribe herself, the researcher’s data provides a unique contribution. We also see the research as having useful insights on the consequences of declining male labor force participation, particularly in non-urban settings. From a policy engagement perspective, the rich stories that are likely to come from this qualitative work will help provide the narrative and texture that is necessary for capturing policy attention.

Distributional consequences of changes in labor demand and amenities: Evidence from linked census data

Grant Year: 2016

Grant Amount: $15,000

Grant Type: doctoral

This project will explore the distributional implications of fracking and mass transit expansions, two important recent developments in U.S. cities and regions. Using newly available, restricted access, longitudinal U.S. Census Bureau microdata, the researcher seeks to answer: If fracking or urban rail expansions have heterogenous effects? How much do local housing costs rise? And do fracking or rail expansions lead to displacement of original residents? Policymakers are searching for policies to encourage growth in American cities, and we see this project as providing insightful and generalizable findings in that area.

Big data and the labor market: A text-based analysis of job vacancies and skill requirements

Grant Year: 2015

Grant Amount: $43,000

Grant Type: academic

The polarization of the labor market into high- and low-skill jobs is one of the most popular explanations for the increase in income inequality. This project will explore how much skill polarization actually happened by creating a novel new dataset of job openings by skill level spanning multiple decades. The researchers will create these data by mining the text of job advertisements in newspapers and online job sites. The new data will help researchers better understand the change in skill requirements for jobs over the long run, as well as changes during recoveries and economic expansions. This research will improve our understanding of how inequalities in human capital contribute to broader economic inequality.

What can 5 million households tell us about the impact of credit access on job finding and wage inequality?

Grant Year: 2015

Grant Amount: $54,000

Grant Type: academic

This project will bring together macroeconomic theory and large-scale microeconomic datasets to advance modern economics and inform monetary and public policy. Using employment records merged to credit reports, the authors will estimate the impact of credit access on the job-finding rates and re-employment earnings of displaced workers. Past research has examined the borrowing and credit use of the unemployed, and this study builds on that line of work to examine the direct impact of credit on future outcomes. In preliminary results, the authors find that credit access increases the time before re-employment, but also increases average salary once a new job is found. This work will develop a search model capable of explaining these new findings.

The military and incarceration: Hidden mechanisms of racial inequality in the U.S. labor market, 1980-2010

Grant Year: 2015

Grant Amount: $15,000

Grant Type: doctoral

This project will study the rise of mass incarceration in relation to military downsizing. The author will determine whether the military-penal crossover, occurring in the 1990s and continuing through the present, has reinforced racial inequality in the labor market, with blacks experiencing more incarceration while decreasingly enlisting in the military.

Experts

Guest Author

John Kwoka

Northeastern University

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Guest Author

Jonathan Fisher

Washington Center for Equitable Growth

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Grantee

Francisco Garrido

Instituto Tecnológico Autónomo de México (ITAM)

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Grantee

Atif Mian

Princeton University

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Guest Author

Salvatore Morelli

University of Oxford

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