Related papers: Coarse Wage-Setting and Behavioral Firms
During the past decades the importance of soft skills for labour market outcomes has grown substantially. This carries implications for labour market inequality, since previous research shows that soft skills are not valued equally across…
Ride-sharing platforms like Uber market themselves as enabling `flexibility' for their workforce, meaning that drivers are expected to anticipate when and where the algorithm will allocate them jobs, and how well remunerated those jobs will…
It is well known that differences in the average number of friends among social groups can cause inequality in the average wage and/or unemployment rate. However, the impact of social network structure on inequality is not evident. In this…
Software crowdsourcing platforms employ extrinsic rewards such as rating or ranking systems to motivate workers. Such rating systems are noisy and provide limited knowledge about workers' preferences and performance. To develop better…
We characterize optimal policy in a multidimensional nonlinear taxation model with bunching. We develop an empirically relevant model with cognitive and manual skills, firm heterogeneity, and labor market sorting. We first derive two…
Quantitative research relies heavily on coding, and coding errors are relatively common even in published research. In this paper, we examine whether individuals are more or less likely to check their code depending on the results they…
This paper studies a dynamic discrete-time queuing model where at every period players get a new job and must send all their jobs to a queue that has a limited capacity. Players have an incentive to send their jobs as late as possible;…
This paper asks whether regional wage differences can identify the effects of a national minimum wage. I study two common exposure-based approaches: effective-minimum-wage designs, which compare the minimum wage to contemporaneous local…
Contract workers constitute half of India's automotive employment but earn substantially less than permanent workers. Using ASI data (2002-2019), I develop an estimator of labor supply and demand schedules to explain this wage premium. The…
We study the strategic advantages of coarsening one's utility by clustering nearby payoffs together (i.e., classifying them the same way). Our solution concept, coarse-utility equilibrium (CUE) requires that (1) each player maximizes her…
We design a research strategy to measure wage returns of research training targeting early career researchers (ECRs) at research infrastructures (RIs). Grounded in established economic models of education and training, our strategy improves…
Residential segregation recently has shifted to more class or income-based in the United States, and neighborhoods are undergoing significant changes such as commuting patterns over time. To better understand the commuting inequality across…
We propose a new approach to estimate selection-corrected quantiles of the gender wage gap. Our method employs instrumental variables that explain variation in the latent variable but, conditional on the latent process, do not directly…
Labor share, the fraction of economic output accrued as wages, is inexplicably declining in industrialized countries. Whilst numerous prior works attempt to explain the decline via economic factors, our novel approach links the decline to…
We consider a combined problem of teaming and scheduling of multi-skilled employees that have to perform jobs with uncertain qualification requirements. We propose two modeling approaches that generate solutions that are robust to possible…
With this work we try to analyse the agglomeration process in the Portuguese regions, using the New Economic Geography models. In these models the base idea is that where has increasing returns to scale in the manufactured industry and low…
How does employer reputation affect the labor market? We investigate this question using a novel dataset combining reviews from Glassdoor.com and job applications data from Dice.com. Labor market institutions such as Glassdoor.com…
We theoretically and empirically study portfolio optimization under transaction costs and establish a link between turnover penalization and covariance shrinkage with the penalization governed by transaction costs. We show how the ex ante…
Online labor platforms, such as the Amazon Mechanical Turk, provide an effective framework for eliciting responses to judgment tasks. Previous work has shown that workers respond best to financial incentives, especially to extra bonuses.…
Many algorithms that are originally designed without explicitly considering incentive properties are later combined with simple pricing rules and used as mechanisms. The resulting mechanisms are often natural and simple to understand. But…