Job Market Candidates 2018
Dissertation: In search of the incidence of the corporate tax on employment and wages: Evidence from State Corporate Tax reforms
Job Market Paper: The corporate tax, wages, market power and profit shifting: Evidence using policy discontinuity at state borders
Abstract: This paper studies the responsiveness of wages and employment to changes in state corporate tax rates in the presence of market concentration and state legislation on combined reporting. I exploit policy discontinuities at state borders by pairing counties located in states featuring a tax change with their contiguous counterparts in control states. First, the paper observes that corporate tax cuts do not boost employment or wages while tax hikes reduce the growth of both. This supports the belief that capital holds a sizable bargaining power relative to labor. Indeed, when controlling for the extent of market competition, I notice that the wage sensitivity to a tax hike decreases with the number of establishments. Second, the incidence of a tax hike on employment growth strengthens along border segments with a differential treatment of combined profits while the responsiveness of wages to a hike amplifies along border segments with no consolidated profit requirement, implying the existence of profit shifting. These results are robust to several methodological limitations present in traditional empirical works on the topic.
Dissertation: Essays on the Regional Effects of Hurricane Katrina
Job Market Paper: Wage effects of a catastrophic disaster: an application of the synthetic control method to hurricane Katrina.
Abstract: Hurricane Katrina led to catastrophic flooding in the city of New Orleans, resulting in a substantial displacement of the city’s population. This displacement precipitated a large disruption in New Orleans’ labor market. The purpose of this paper is to investigate the long-term impacts of this disruption. Using the synthetic control method, I demonstrate a significant and persistent increase in average wages attributable to the disaster. I then investigate the extent to which this increase can be attributable to changes in the sectoral composition of the city. Results suggest that in the first five years following Katrina the proportion of employment in higher paid sectors increased – a result likely driven by the displacement of low-income households. Beginning in 2010, I find the opposite result, in which the proportion of employment in lower paid sectors increased. Although average wages appear to be converging towards their estimated synthetic control, this is largely the result of changes in the sectoral composition of labor, rather than a recovery to the city's pre-Katrina trajectory.
Fields: International Economics, Political Economy
Dissertation: Terms of Trade and Productivity Constraints as Determinants of Export-Led Growth: Implications for Development Policy
Job Market Paper: Terms of Trade: Price-competitiveness Matters
Abstract: Tests of the balance of payments constrained growth model typically focus on income elasticities of demand in the traded sector. The role of price-competitiveness is treated as negligible and often neglected. This paper presents alternative specifications for the terms of trade in conventional import and export demand equations. I show that by taking into consideration the export prices of foreign competitors and prices of domestic substitutes for imports, terms of trade becomes far more relevant in determining import and export demand and the corresponding equilibrium growth rates in a Keynesian framework. The results suggest policy combinations for developing economies given the absence of domestic substitutes for import goods and the dependence on exports as a source of foreign currency.
Fields: Political Economy, Public Economics, Regional Economics
Advisor: Anita Pena
Dissertation: How Families Dealt with the Great Recession: Grandparent Childcare and Debt
Job Market Paper: Recession vs. Policy Shock: 2008, Medicare Part D and Grandparent Childcare
Abstract: Many studies have found grandparent provided childcare (GPCC) is of higher quality on average than center-based care, and that the availability of childcare itself increases the labor force participation rates of women. This has led to this investigation into the influence of income and wealth on the supply of GPCC. Using restricted-use data from the Health and Retirement Survey, this investigation focuses on labor income, household wealth, age, health factors, family size, and period dummies to understand how the 2008 recession affected GPCC provision. This study is the first of its kind to include state fixed-effects. Results suggest that there is no difference between the recession and recovery periods, but that work income and wealth are significant predictors; albeit with small magnitude. Sub-sample regressions run by sex and coupled status suggest that work income influences female GPCC decisions but not male, and influences coupled respondents more than single. Finally, using a propensity score matching method, the effect of Medicare Part D on providing any GPCC is derived. However, limits to the data leaves this effect ambiguous.
Fields: Political Economy, Environmental Economics
Advisor: Alexandra Bernasek
Dissertation: Female Participation in Research and Development: The Role of Government and Defense Spending
Job Market Paper: Defense R&D Spending and Women's Participation in Engineering in the United States
Abstract: The historical path of technological change in the United States has been heavily influenced by research and development subsidies from the Department of Defense. As a result, many current technologies and industries have their foundations in military R&D, while relatively low percentages of women work in engineering occupations. Based on existing research that indicates women may have a greater aversion to militaristic work than men, and military institutions may be more averse to hiring women, I propose that a relationship exists between the amount and type (defense or nondefense) of R&D funding from the US federal government and the participation of women in engineering. A difference-in-difference methodological framework is applied to data on both engineering employees and graduate students in the U.S., and results indicate that periods of relatively high defense spending have contributed to lower female participation in engineering, and periods of relatively high nondefense spending have contributed to greater female participation in engineering.