Research

Journal Articles

2021 Parental Labor Supply: Evidence from Minimum Wage Changes with A. Godoy, M. Reich and S. Allegretto, Journal of Human Resources (forthcoming) [JHR]

2018 Testing for serial correlation in fixed-effects panel models, Stata Journal 18(1) [SJ]

This paper illustrates the four tests for serial correlation in panel models I implemented in Stata [Q(p), LM(k) and HR(1) test by Born & Breitung 2016; IS(p) by Inoue & Solon 2006]. It discusses why serial correlation testing can be useful and compares the econometrics behind the tests to highlight their relative strengths and weaknesses. I also provide some practical guidelines on how to use the commands (e.g. syntax and examples), as well as additional Monte Carlo evidence, exploring relevant scenarios not covered by the original authors.

Working Papers

2021 Racial Inequality and Minimum Wages in Frictional Labor Markets? with M. Reich (UC Berkeley/IRLE) [IRLE]

We show that minimum wages benefit all workers (increased earnings, employment stable), but black workers in particular. The difference cannot be explained by lower initial wages only. Rather, we find that higher minimum wages allow black workers to buy a car, which in turn strongly improves their bargaining position on the labor market. We provide counterfactual estimates of racial earnings inequality under different minimum wage policies.

2020 Estimating the labour market effects of the minimum wage through differences in exposure across US counties [RG, TT]

I exploit variation in average wages to estimate how vulnerable counties are to minimum wage changes. I compare high and low vulnerability counties within states and find that earnings increase more in vulnerable counties, whereas any disemployment effects are small and generally not significant.

2020 Measuring Price Selection in Microdata: It's Not There [CEPR, TT] with P. Karadi (ECB) & R. Schoenle (Brandeis/Fed)

We use microdata to estimate the strength of price selection - a key metric for the effect of monetary policy on the real economy. We find that price adjustment pressure at the product level does not significantly influence the probability of price adjustment in response to identified monetary and credit shocks, suggesting price selection is absent. This happens even though prices do respond significantly both to aggregate shocks and product-level adjustment pressure directly. Our results are broadly consistent with second-generation state-dependent pricing models and sizable effects of monetary policy on the real economy.

Work in Progress

  • Digitisation and Patents with S. Arts (KU Leuven), M. Nardotto (KU Leuven) and T. Schaper (TU Munich)

  • Small Businesses and the Minimum Wage with M. Reich (UC Berkeley/IRLE)

  • Stata Tip: joinby is the real merge m:m with D. Mazrekaj (Utrecht University)

Incubating

  • Popular products and Power Laws with P. Karadi

  • The impact of job security on job effort: Bayesian updating versus salience

  • Additive separability of job characteristics: a discrete choice approach

  • Validity of Mechanical Turk in labour economics research

  • The role of uncertain characteristics in job mobility

Shelved

Expected return to labour lower than in other projects

  • The employment elasticity of the Minimum Wage - Is it just politics after all? [RG]

  • Employment, Turnover and Profitability Effects of the German National Minimum Wage: A Sectoral Analysis with D. Czarnitzki and H. Kreuter

  • External Validity in Minimum Wage Research