Research

Abstract

Exploiting the differential effect of the USA PATRIOT Act on natives and non-citizens, I find that the Act increased credit frictions for non-citizens and was associated with a decline in their wages. I also document a decline in unemployment, although this result is sensitive to the choice of specification and may partly reflect the recovery from the 2001 recession. The estimated wage effect does not reflect occupational downgrading, sectoral reallocation, or changes in self-employment. Instead, it occurred largely within industries and occupations, consistent with non-citizens accepting lower wages for similar jobs following the increase in credit frictions. These findings suggest that credit frictions may be an important yet overlooked determinant of nativity gaps in labor market outcomes.

Abstract

I use data on unsecured consumer loans from Lending Club to study how peer-to-peer lending markets respond to monetary policy shocks. I find that both loan supply and demand decrease following unexpected increases in the federal funds rate. The contraction in supply is smallest for risky borrowers, while the decline in demand is largest for these borrowers. In contrast, both demand and supply increase following surprise LSAP contractions, with the increases being largest for risky borrowers. These findings suggest that peer-to-peer lending dampens the effectiveness of monetary policy transmission in unsecured consumer credit markets while increasing risk-taking.

Abstract

I document that the unemployment rate of both authorized and unauthorized immigrants increases more than that of natives following a surprise monetary contraction. Meanwhile, relative labor force participation decreases for authorized immigrants but increases for unauthorized immigrants. I show that (i) factors beyond differences in educational attainment and concentration in cyclical industries are relevant for explaining the demand-driven increase in immigrants’ relative unemployment, and (ii) the relative increase in unauthorized immigrants’ participation is driven by an "added worker effect."

Abstract

I document that differences in wealth between natives and immigrants contribute to the nativity wage gap. The evidence suggests that the non-earnings determinants of wealth, such as institutional barriers that prevent immigrants from accessing financial markets, and idiosyncratic preferences that affect immigrants’ willingness to use financial instruments, play a particularly important role.

Abstract

I study the "bank lending channel" using the 2004 repatriation tax holiday as a natural experiment. I isolate the effect of the repatriated funds on loan supply by (i) comparing the differences in lending between multinational and domestic banks pre- and post-repatriation and (ii) using the change in cash holdings abroad as an instrument for the repatriated funds. My results support the existence of the “bank lending channel.” I document that each additional repatriated dollar led to an increase of $0.04 in lending, which is driven entirely by commercial and industrial loans.

Abstract

I study monetary transmission via changes in contract terms for C&I loans. I find that non-price terms tighten and price terms relax following a surprise monetary contraction; consistent with a decrease in loan supply. Adjustments in non-price terms (maximum line size, covenants, and collateral requirements) are responsible for a statistically significant decrease in GDP of about 0.3 percentage points following a monetary surprise. I also document a lag between the response in bond market credit indicators and the loan contract terms. I interpret this finding as evidence of an important interaction between these two markets.

Abstract

I document that immigrants are more likely than natives to increase their labor force participation following surprise monetary contractions. Financial frictions affecting immigrants and a stronger household labor-supply reallocation are two key mechanisms that account for immigrants' participation response. My findings contribute to our understating of the heterogeneous impact of monetary policy across demographic groups, while also highlighting that there are non-trivial effects of monetary policy on labor supply.

Abstract

We build a directed search model featuring frictional labor and credit markets to study how credit frictions affect immigrants' wages and unemployment. The model is calibrated to replicate some well-documented differences in wages, unemployment, and unsecured debt holdings between natives and immigrants. An increase in credit frictions for immigrants reduces their reservation wages, making them more willing to search for lower paying jobs. As lower paying jobs are associated with higher job finding rates, this also decreases their unemployment. Our model provides theoretical foundations that support the empirical evidence documenting the impact of credit frictions on immigrants' labor market outcomes. 

Abstract

This paper examines how immigration enforcement affects immigrants’ participation in formal credit markets. Specifically, I estimate how changes in enforcement are associated with credit application and denial rates across nativity, legal status, income, and employment groups. The results show little evidence of economically meaningful effects among U.S. natives. Among immigrants, however, heightened enforcement is generally associated with higher credit application rates, particularly for households in the middle of the income distribution, while conditional denial rates tend to decline. These patterns are consistent with increased demand for credit during periods of heightened enforcement alongside changes in the composition of applicants. The findings highlight an understudied financial-market channel through which immigration enforcement may shape immigrant economic behavior and financial inclusion.

Abstract

We document that wages of U.S. citizens increase more than those of noncitizens following voluntary job transitions. Moreover, we find that: (i) higher wealth in the year prior to the transition leads to higher post-transition wages; (ii) the effect of wealth on wages is primarily driven by asset holdings rather than debt holdings; and (iii) approximately 2.5 percentage points of the post-transition wage gap between U.S. citizens and noncitizens is explained by differences in asset holdings. We rationalize these findings using a directed search model with wealth accumulation and on-the-job search, calibrated to match well-documented differences in earnings and wealth between natives and immigrants. Wealth affects job-search decisions by altering the trade-off between wage and matching probability. Specifically, it provides self-insurance, allowing individuals to search for riskier jobs with higher wages but lower matching probabilities. 

Abstract

I examine differences in credit application and denial rates between U.S. natives and immigrants. I find that: (i) recent immigrants are more likely than natives to have their credit applications denied, regardless of citizenship or legal status; (ii) recent naturalized citizens apply at similar rates as natives, whereas recent authorized and unauthorized noncitizens apply more; and (iii) among long-term immigrants, only unauthorized noncitizens have different application and denial rates relative to natives - they apply less and are denied more. These results highlight that the inability to transfer credit histories across national borders and the lack of valid documentation may be significant barriers to immigrants' access to credit.

Abstract

I investigate the impact of tougher immigration enforcement policies on immigrants’ labor market outcomes. Using panel data from the Survey of Income and Program Participation and a difference-in-differences design that accounts for secular trends, post-9/11 discrimination, and contemporaneous policy changes, I find little short-run impact on unauthorized immigrants' labor market outcomes. In contrast, tougher enforcement is associated with reduced labor force participation and higher wages among authorized immigrants, consistent with non-trivial chilling effects on this non-targeted population.