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Working Paper
Health Inequality and Health Types
Borella, Margherita; Bullano, Francisco; De Nardi, Mariacristina; Krueger, Benjamin; Manresa, Elena (2024-08-23)
While health affects many economic outcomes, its dynamics are still poorly understood. We use k-means clustering, a machine learning technique, and data from the Health and Retirement Study to identify health types during middle and old age. We identify five health types: the vigorous resilient, the fair-health resilient, the fair-health vulnerable, the frail resilient, and the frail vulnerable. They are characterized by different starting health and health and mortality trajectories. Our five health types account for 84% of the variation in health trajectories and are not explained by ...
Opportunity and Inclusive Growth Institute Working Papers , Paper 097

Working Paper
Can Reputation Discipline the Gig Economy? Experimental Evidence from an Online Labor Market
Sojourner, Aaron; Benson, Alan; Umyarov, Akhmed (2018-12-28)
Just as employers face uncertainty when hiring workers, workers also face uncertainty when accepting employment, and bad employers may opportunistically depart from expectations, norms, and laws. However, prior research in economics and information sciences has focused sharply on the employer?s problem of identifying good workers rather than vice versa. This issue is especially pronounced in markets for gig work, including online labor markets, where platforms are developing strategies to help workers identify good employers. We build a theoretical model for the value of such reputation ...
Opportunity and Inclusive Growth Institute Working Papers , Paper 16

Working Paper
The Impact of Limiting Applicant Information on Rental Housing Discrimination
Mileo Gorzig, Marina; Rho, Deborah (2022-09-21)
Policies that reduce information on applicants (e.g., limiting criminal history) have mixed results in the labor market. However, little is known about their impact in the housing market. We submitted fictitious email inquiries to publicly advertised rentals using names manipulated on perceived race and ethnicity before and after a policy that restricted the use of background checks, eviction history, income minimums, and credit history in rental housing applications in Minneapolis. After the policy was implemented, discrimination against African American and Somali American men increased. ...
Opportunity and Inclusive Growth Institute Working Papers , Paper 061

Working Paper
Telework, Childcare, and Mothers’ Labor Supply
Heggeness, Misty; Suri, Palak (2021-11-16)
We study the impact of increased pandemic-related childcare responsibilities on custodial mothers by telework compatibility of their job. We estimate changes in employment outcomes of these mothers in a difference-in-difference framework relative to prime-age women without children and a triple-difference framework relative to prime-age custodial fathers. Mothers' labor force participation decreased between 0.1 to 1.5 percentage points (ppts) relative to women without dependent children and 0.3 to 2.0 ppts compared to custodial fathers. Conditional on being in the labor force, the probability ...
Opportunity and Inclusive Growth Institute Working Papers , Paper 52

Working Paper
Why is Trade Not Free? A Revealed Preference Approach
Adão, Rodrigo; Costinot, Arnaud; Donaldson, Dave; Sturm, John (2024-05-20)
A prominent explanation for why trade is not free is politicians’ desire to protect some of their constituents at the expense of others. In this paper we develop a methodology that can be used to reveal the welfare weights that a nation’s import tariffs implicitly place on different groups of society. Applied in the context of the United States in 2017, this method implies that redistributive trade protection accounts for a significant fraction of US tariff variation and causes large monetary transfers between US individuals, mostly driven by differences in welfare weights across sectors ...
Opportunity and Inclusive Growth Institute Working Papers , Paper 089

Working Paper
Long-Haulers and Labor Market Outcomes
Ham, Dasom I. (2022-07-07)
There have been growing concerns about long-haulers or individuals with long-term COVID-19 health complications (long-haul COVID). While the medical field has been investigating the health complications, there has been limited research on the relationship between long-haul COVID and labor market outcomes. To investigate this relationship, I used the University of Southern California Understanding America Study COVID-19 longitudinal survey to provide a snapshot of mid-2021. I first find about 24.1% of individuals who have had COVID are long-haulers and 25.9% of long-haulers reported that their ...
Opportunity and Inclusive Growth Institute Working Papers , Paper 060

Working Paper
Racial Unemployment Gaps and the Disparate Impact of the Inflation Tax
Ait Lahcen, Mohammed; Baughman, Garth; van Buggenum, Hugo (2023-05-25)
We study the nonlinearities present in a standard monetary labor search model modified to have two groups of workers facing exogenous differences in the job finding and separation rates. We use our setting to study the racial unemployment gap between Black and white workers in the United States. A calibrated version of the model is able to replicate the difference between the two groups both in the level and volatility of unemployment. We show that the racial unemployment gap rises during downturns, and that its reaction to shocks is state-dependent. In particular, following a negative ...
Opportunity and Inclusive Growth Institute Working Papers , Paper 073

Working Paper
Improving Child Welfare in Middle Income Countries: The Unintended Consequence of a Pro-Homemaker Divorce Law and Wait Time to Divorce
Heggeness, Misty (2019-10-11)
This study identifies the impact of access to and the speed of divorce on the welfare of children in a middle income largely Catholic country. Using difference-in-difference estimation techniques, I compare school enrollment for children of married and cohabiting parent households before and after the legalization of divorce. Implementing pro-homemaker divorce laws increased school enrollment anywhere from 3.4 to 5.5 percentage points, and the effect was particularly salient on secondary school students. I provide evidence that administrative processes influencing the speed of divorce affect ...
Opportunity and Inclusive Growth Institute Working Papers , Paper 27

Working Paper
Optimal Income Taxation: An Urban Economics Perspective
Huggett, Mark; Luo, Wenlan (2021-07-23)
We derive an optimal labor income tax rate formula for urban models in which tax rates are determined by traditional forces plus a new term arising from urban forces: house price, migration and agglomeration effects. Based on the earnings distributions and housing costs in large and small US cities, we find that in a benchmark model (i) optimal income tax rates are U-shaped, (ii) urban forces serve to raise optimal tax rates at all income levels and (iii) adopting an optimal tax system induces agents with low skills to leave large, productive cities. While agglomeration effects enter the ...
Opportunity and Inclusive Growth Institute Working Papers , Paper 51

Working Paper
The Indirect Fiscal Benefits of Low-Skilled Immigration
Sachs, Dominik; Colas, Mark (2020-10-02)
Low-skilled immigrants indirectly affect public finances through their effect on native wages & labor supply. We operationalize this general-equilibrium effect in the workhorse labor market model with heterogeneous workers and intensive and extensive labor supply margins. We derive a closed-form expression for this effect in terms of estimable statistics. We extend the analysis to various alternative specifications of the labor market and production that have been emphasized in the immigration literature. Empirical quantifications for the U.S. reveal that the indirect fiscal benefit of one ...
Opportunity and Inclusive Growth Institute Working Papers , Paper 38

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