Working papers

Collective Bargaining and Spillovers in Local Labour markets

R&R Journal of the European Economic Association (JEEA)

How does collective bargaining affect the broader wage structure? I use a decade of wage agreements matched with worker-level data in South Africa to study the effects of sharp changes in collectively bargained wages. Firms with higher worker flows to covered firms differentially increase wages more, with an implied cross-wage elasticity of about 0.8 . Firm profit margins decline, as predicted by the model. See latest version, CEP Discussion paper, Twitter summary.

Vacancy Duration and Wages, with Alan Manning and Barbara Petrongolo

Using the near-universe of online vacancies in the United Kingdom, we estimate an elasticity of vacancy durations to posted wages of around 3-5 based on firm wage policy changes, from wage agreements and an event study of internally defined sharp wage changes. See IZA Discussion paper, Twitter summary. Media: Voxeu. 

Rent-Sharing, Wage Floors and Development, with Joshua Budlender

We show that there is important heterogeneity in which firms share rents, as a subset of firms absorb revenue-productivity increases into monopsonistic markdowns rather than passing them through into increased wages and employment. See WIDER Working paper.

Peer-reviewed publications

Firms and Inequality When Unemployment is High

Journal of Development Economics (JDE), 2023

Using matched employer-employee data from South Africa, I find that firms explain a larger share of wage variation than in richer countries. This is driven by higher firm productivity dispersion, as well as monopsony power related to high unemployment. Such firm-level competitive dynamics may exacerbate inequality in developing countries more generally. Publication, CEP discussion paper, twitter thread. Media: article, national radio.

Monopsony in Movers: The elasticity of labor supply to firm wage policies

Journal of Human Resources (JHR), with Arindrajit Dube and Suresh Naidu, 2022

Using Oregon employer-employee data, we compare matched workers leaving the same firm in the same quarter, and test how their separation time responds to their new firm wages. The implied firm-level labor supply elasticities are around 4. Publication (open access).

Locked down and locked out: Repurposing social assistance as emergency relief to informal workers

World Development, with Joshua Budlender, Rocco Zizzamia, Murray Leibbrandt and Vimal Ranchhod, 2021

The covid-19 pandemic presents a particular challenge to countries with high levels of labour market informality. Using South Africa as a case study, we compare the poverty reduction effects of possible social grant interventions. Publication, Media piece.

 Works in progress

Firm Dynamics and the Labour Supply Elasticity, with Alan Manning

Job Search and Employer Market Power, with Jeremias Klaeui and Alan Manning

Minimum Wage Spillovers and Fairness Concerns, with Arindrajit Dube and Attila Lindner

The Firm-Wage Gender Gap Over the Life Cycle, with Leila Gautham