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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Digital discrimination: a case of Airbnb

Grant Year: 2017

Grant Amount: $15,000

Grant Type: doctoral

This research will test a widely held perception that making ethnic information less prominent—rather than completely eliminating it—will reduce discrimination. The researcher will use a recent Airbnb policy change to empirically test this relationship empirically. Utilizing data from Airbnb, the research effectively builds on the literature using ethnic names on resumes to test for discrimination. This research will be able to focus attention on the continuing problem of racial discrimination for wages, particularly in the “gig,” or “platform,” economy

Effects of the new wave of minimum wage policies

Grant Year: 2017

Grant Amount: $68,000

Grant Type: academic

This project will take advantage of the unusually large changes in the statutory minimum wages in eight states and nine cities to analyze wage and employment impacts. There is intense debate over the efficacy of increased minimum wages to address growing income inequality, and this research will provide useful evidence, directly contributing to discussions of how to improve the design of current and future minimum wage policies.

Unbundling worker and manager preferences for workplace organization: understanding support for new forms of labor representation

Grant Year: 2017

Grant Amount: $36,135, co-funded with the Russell Sage Foundation

Grant Type: academic

The rate of unionization remains low in the United States, and as new forms of worker representation emerge, we need to better understand what workers want from labor organizations and how employee preferences differ across industries and occupations. This project will field a relatively large-scale survey, with embedded survey experiments, to examine what aspects of labor organization are preferred by workers and management.

Wages of power and wages of care: a source of increasing earnings inequality?

Grant Year: 2017

Grant Amount: $60,000

Grant Type: academic

There is growing evidence that wage differences between industries and firms are a primary source of contemporary wage inequality. Similarly, evidence suggests that gender segregation at the industry, occupation, and firm levels has persisted even as gender differences in human capital have declined. This project will draw a connection between the contribution of between-industry wage differences to overall wage inequality on the one hand, and occupational/industrial gender segregation and the wage penalty for care work on the other. The researchers will compare employment and wages, by gender, in the care versus financial sectors, thereby capturing the dynamics of gender by occupation in sectors that are the bookends in the structure of wages and wage inequality, tracking the extent to which the gender gap has grown or subsided in these two extreme groups.

How local barriers to migration shape relocation and earnings in the wake of china trade shocks

Grant Year: 2017

Grant Amount: $67,120

Grant Type: academic

In the past, migration was an important way Americans reacted to economic shocks. When one area was hit by a decline in labor demand, residents of the area could respond by moving to an area where demand for their labor was higher. But internal migration has been falling and may be a reason why incomes for most Americans have stagnated. In an era of low labor mobility, what determines who responds to the shock via migration? This research seeks to extend recent work that has studied the impact of the well-documented shock from increased Chinese imports on the mobility of affected workers across firms, industries, and local labor markets. The authors have access to rich census data that allows them to trace individuals over time and space, and to observe many variables that may affect the likelihood of an individual’s mobility response to the trade shock—for example, demographics, historical migration flows between locations, and presence of higher education opportunities. This project will look at the net mobility of each region, and also dig into the gross inflows and outflows to better understand the underlying mechanisms.

Bias and labour market inequality

Grant Year: 2017

Grant Amount: $15,000

Grant Type: doctoral

This research asks how gender inequality influences the number of chances that individuals receive to succeed in the workplace and whether this affects skill development and/ or contributes to wage and promotion gaps. Specifically, the research seeks to add to our understanding of how gender differences may affect whether an employee’s successes and failures are attributed to luck or ability, and if that has implications for career trajectory. The project uses a unique data set of primary care physicians’ referrals to surgeons.

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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