John Grigsby

I am an Assistant Professor in the Economics Department and School of Public and International Affairs at Princeton University.

I am also a faculty research fellow with the NBER and an Associate Editor of the Journal of the European Economic Association

I received my PhD in Economics from the University of Chicago in 2020, and my Bachelor's Degree from Washington and Lee University in 2012.

My research studies macroeconomics with a focus on aggregate labor markets, wage dynamics and innovation. Click here to read more and for full text of my research papers.

CV: Available here

Email: jg6005@princeton.edu; grigsbyj12@gmail.com

Twitter: @JohnRGrigsby

New and Updated Research

  • We study the effect of corporate and personal income taxes on patented innovations in the U.S. between 1940 and 2000

  • Large data collection:

    • Panel data of the universe of patenting inventors back to 1920

    • Corporate tax rates and rules through 1900

    • Personal income tax rules/rates from Bakija (2017)

  • Show that patented innovations at state level decline in response to increases in personal income taxes (elasticity: 0.8-1.8) and corporate taxes (elasticity: 1.3-2.8)

  • Similar responses on quality of innovation and # of inventors. Share of patenting activity assigned to corporations decreases with corporate tax

  • Microdata shows that majority of macro corporate tax response comes from cross-state mobility: find limited effect in time series

  • But personal taxes affect quality and quantity of innovation at inventor level - not just relocation of activity.

  • State-level effects are persistent over at least a 20 year horizon.

  • U.S. saw as many base wage cuts for job-stayers between February and June 2020 as in entire Great Recession

  • Nominal base wage cuts concentrated at top of distribution

    • Note: different to employment cuts!

  • But wage cuts more transient than usual: 60% of top quintile wage cuts reversed by November

  • Wage cuts more prevalent in firms that reduced employment

  • Growing firms still cut wages

  • When a shock is this large, wages look less rigid than in normal times