Working Papers

  • Offshoring and Segregation by Skill: Theory and Evidence (Job Market Paper)

This paper examines how offshoring to low wage countries affects worker-firm matching domestically and inequality across firms in terms of workforce composition and average wages. I propose a worker-firm matching model where firms can form international teams upon paying a fixed cost of offshoring. I demonstrate that increased competition within offshorable jobs enables firms to hire better workers than before, while heterogeneity in the firm’s ability to offshore results in greater occupational segregation across firms. I confirm these theoretical hypotheses using the Danish matched employer-employee data (1995-2004), together with a newly constructed skill data using on textual information on education records. I then perform a structural estimation of the model and conduct counterfactual exercises, decomposing the effect of offshoring from other concurrent channels – technological change and expansion of higher education – on segregation by skill and between-firm wage inequality. I find that the net effect of offshoring decreases inequality across firms within offshorable jobs.

  • The Skill Content of New Work and Specialization (with Phai Phongthiengtham)

We investigate the skill content of new work that has emerged after 2000, with the focus of the degrees of specialization: the range of tasks assigned to each occupation and the complexity (i.e. the depth of knowledge required) in the nature of tasks. We propose a model of task-based team production and division of labor where performing new tasks involves a fixed cost of operation that increases with the task complexity. We then use the job titles and job descriptions from the O*NET data and employ textual analysis to identify new work from 2000 to 2016. We find that the range of required task is narrow for new jobs that are relatively less complex, while a more extensive range of task is expected in professions with greater task complexity.

  • Ideas, Human Capital, and Entrepreneurial Choice in an Industry Equilibrium (with Dohyeon Lee)

We explain the recent decline in entrepreneurship in the U.S. through a Roy model of occupational choice between working for wages and starting up a business with exogenous arrival of ideas of random quality. The industry evolution boils down to the race between incumbents and entrants, where the declining entry rate can be interpreted as incumbents improving faster than the rate of finding good ideas. We also show that the rise in returns to education leads to an improvement in the quality of start-up ideas, as it does for the skill of wage workers. The model sheds light on how entry is related to aggregate growth, which is ultimately linked to the evolution of distribution of ideas along with innovation.

Work in Progress

  • Trade-Induced Skill Demand and Firm’s Productivity (with Dohyeon Lee)
  • The Effect of Local Industry Composition on Schooling Choices

Research Fellowships & Awards

  • AEA Economics Summer Dissertation Fellowship, Federal Reserve Bank of Atlanta, 2018
  • David Edwin Davies Dissertation Fellowship, Department of Economics, University of Wisconsin-Madison, 2018
  • Research Mentoring Fellowship, Department of Economics, University of Wisconsin-Madison, 2017-2018
  • Doctoral Study Abroad Fellowship, The Korea Foundation of Advanced Studies, South Korea, 2012-2017

Presentations and Conferences

  • Conference on Market Search Frictions, Aarhus University (Presentation), 2018
  • Federal Reserve Bank of Atlanta (Presentation), 2018
  • The Job Market Mini-Conference, University of Wisconsin-Madison (Presentation), 2018
  • Price Theory Summer Camp, University of Chicago, 2017
  • Danish International Economic Workshop, Aarhus University (Presentation), 2017
  • 10th Nordic Register Data and Economic Modelling Meeting, Uppsala University (Presentation), 2017
  • Juli Plant Grainger Alumni Conference, University of Wisconsin-Madison (Poster Presentation), 2017
  • HCEO 4th Summer School on Socioeconomic Inequality, University of Chicago, 2016
  • Robert E. Baldwin International Workshop, University of Wisconsin-Madison (Presentation), 2015-2018
  • Beijing Forum, Peking University (Presentation and Panel Discussion), 2011