Working Papers

We examine the labor market consequences of an exogenous increase in the supply of skilled labor in several cities in Norway, resulting from the construction of new colleges in the 1970s.

The macroeconomic consequences of large-scale early childhood development policies depend on intergenerational dynamics, general equilibrium (GE) effects on labor and capital markets, and the deadweight loss of raising taxes to finance the policies.

Sectoral labor reallocation shocks change the optimal allocation of workers across industries. We find that a proxy for this type of labor market shocks has very strong and robust predictive power for future stock market returns.

The emergence of slums is a frequent feature of a country's path toward urbanization, structural transformation, and development.

This paper studies the welfare effects of encouraging rural-urban migration in the developing world.

Health shocks are an important source of risk. People in bad health work less, earn less, face higher medical expenses, die earlier, and accumulate much less wealth compared to those in good health.

This paper studies the role of match quality for contractual arrangements, wage dynamics and workers’ retention. We develop a model in which profit maximizing firms offer a performance-based pay arrangement to retain workers with relatively high match-specific productivity.

We study the formation of wages in a frictional search market where firms can choose either to bargain with workers or post non-negotiable wage offers.

A broadly accepted view contends that the 2007-09 financial crisis in the U.S. was caused by an expansion in the supply of credit to subprime borrowers during the 2001-2006 credit boom, leading to the spike in defaults and foreclosures that sparked the crisis.

We provide a common set of life-cycle earnings statistics based on administrative data from the United States, Canada, Denmark and Sweden. We find three qualitative patterns, which are common across countries. First, top-earnings inequality increases over the working lifetime.