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Working Paper
The Power to Discriminate
Economic theory has long linked employer power to discrimination, but theory and empirical applications have seldom considered which form of power matters. We distinguish between labor market and product market power and design our study to isolate the role each plays in allowing discrimination to persist. Our setting leverages job displacements from mass layoffs and firm closures as a source of exogenous job search, combined with exact matching of native–immigrant worker pairs who held the same job at the same firm, in the same occupation, industry, location, tenure and wage prior to ...
Working Paper
The Fatal Consequences of Brain Drain
We examine the welfare consequences of reallocating high-skilled labor across national borders. A labor demand shock in Norway—driven by a surge in oil prices—substantially increased physician wages and sharply raised the incentive for Swedish doctors to commute across the border. Leveraging linked administrative data across the two countries and a difference-in-differences design, we show that this shift doubled commuting rates and significantly reduced Sweden’s domestic physician supply. The result was a persistent rise in mortality in Sweden, with no corresponding health gains in ...