Selected Research
Published Articles
LinkedIn(to) Job Opportunities: Experimental Evidence from Job Readiness Training
with Rob Garlick, Eric Johnson, Patrick Shaw, and Marissa Gargano
2022: American Economic Journal: Applied Economics [here]
Abstract: Online professional networking platforms are widely used and may help workers to search for and obtain jobs. We run the first randomized evaluation of training workseekers to join and use one of the largest platforms, LinkedIn. Training increases the end-of-program employment rate by 10% (7 percentage points), and this effect persists for at least twelve months. The available employment, platform use, and job search data suggest that employment effects are explained by workseekers using the platform to acquire information about prospective employers, and perhaps by workseekers accessing referrals and conveying information to prospective employers on the platform.
[Final preprint version] [AEA trial registry] [Data and replication code]
When the Lender Extends a Helping Hand: Native CDFI Client Counseling and Loan Performance in Indian Country
with Valentina Dimitrova-Grajzl, Peter Grajzl, Joseph Guse, and Michou Kokodoko [CICD working paper]
2023: Journal of Economics, Race and Policy [here]
Abstract: Native Community Development Financial Institutions (NCDFIs) fill credit supply gaps and promote financial inclusion in Native communities. To mitigate lending risks, NCDFIs often rely on unconventional lending practices such as providing clients with free financial counseling. Drawing on uniquely detailed loan-level data from one prominent NCDFI and using methods of survival analysis, we find that borrower exposure to NCDFI-provided financial counseling appreciably reduces the prospects of loan failure when the borrower has had limited prior credit-market experience. Our findings are indicative of the importance of the growing, but understudied, NCDFI industry for financial development of Indian Country.
Beyond Conventional Models: Lending by Native Community Development Financial Institutions
with Valentina Dimitrova-Grajzl, Peter Grajzl, Joseph Guse, and Michou Kokodoko [CICD working paper] [Web article]
2023: Annals of Public and Cooperative Economics [here]
Abstract: Native Community Development Financial Institutions (Native CDFIs) have become an increasingly important source of credit and financial services in the areas on or near American Indian reservations in the United States. Guided by a conceptual framework developed on the basis of the related finance literature and drawing on loan-level data from eleven Native CDFI loan funds, we offer the first systematic quantitative analysis of lending in the Native CDFI industry. As hypothesized, Native CDFIs on average give out small loans but support borrowers in varied circumstances with diverse loan products. Important predictors of delinquency include both conventional, hard information-based, measures of client risk, and alternative, soft information-based, community-informed and character-based measures. Overall, these findings lend strong support to holistic approaches for assessing client creditworthiness for Native CDFI operations. More generally, our analysis contributes new insights into the operations of an industry that plays an instrumental role in removing barriers to socioeconomic development in Native communities.
Applying Indigenous Approaches to Economics Instruction [University of Alberta working paper]
with Larry Chavis
2024: Journal of Economics, Race, and Policy [here]
Abstract: We contribute to the effort to build a more inclusive discipline by offering lessons and teaching strategies derived from the Indigenous peoples of North America. Our proposed relational approach to teaching provides a framework that accommodates many practices already gaining traction in economics. Drawing on the literature on inclusive teaching practices as well as personal narratives from the classroom, we propose a set of principles of Indigenous-influenced economics courses, and we talk about how to translate those principles into applied teaching strategies. We believe borrowing from Indigenous pedagogies can build belonging and community in our classrooms, thereby contributing to a discipline that is more welcoming of a broader range of students.
Harnessing Soft Information to Promote Financial Inclusion: The Case of Native CDFI Business Lending [early draft]
with Valentina Dimitrova-Grajzl, Peter Grajzl, Michou Kokodoko, and Lakota Vogel
2024: Journal of Financial Services Research [here]
Abstract: Native Community Development Financial Institutions (NCDFIs) promote financial inclusion in financially underserved Native communities by adopting innovative lending strategies, including designing their own soft-information-based measures of borrower risk. Drawing on business loan data from one prominent NCDFI, a nonprofit loan fund, we examine to what extent the NCDFI-generated borrower risk measures help explain the NCDFI's loan performance and pricing above and beyond the effect of the credit score, a conventional credit-bureau-produced, hard-information-based metric. All else equal, both loan delinquency hazard and loan interest rate are robustly predicted by one of the NCDFI's two proprietary soft-information-based measures, the character score, but do not vary with the other one, commitment to business score. The credit score is an important determinant of loan delinquency hazard but, all else equal, does not exhibit a detectable relationship with the loan interest rate. We do not find evidence of noteworthy interactions among the three NCDFI-used borrower risk measures. Our study offers evidence in support of the unique underwriting practices and relationship-based lending operations that characterize the NCDFI industry.
Fostering Financial Inclusion by Ensuring Cultural Fit: The Case of the NCDFI Industry [CICD working paper] [Web article]
with Valentina Dimitrova-Grajzl, Peter Grajzl, and Michou Kokodoko
2025: American Indian Culture and Research Journal [here]
Abstract: Native Community Development Financial Institutions (NCDFIs) play a vital role in extending credit to underserved Native communities. Yet, there is no systematic overview in the existing literature of NCDFIs’ lending approaches. Analyzing original interviews with NCDFI leaders, we unveil the core practices and modes of operation in the NCDFI industry. We find that NCDFIs prioritize holistic goals, form strategic partnerships, tailor their financial and development products and services, and employ inclusive metrics of success. Emphasizing a person-centric approach and the overarching importance of alignment with local cultures, NCDFIs aim to enhance financial inclusion while empowering Native communities. Our analysis underscores NCDFIs' crucial role in fostering financial resilience while maintaining commitment to cultural compatibility.
Outlook on the Economic Impact of COVID-19 on Indigenous Communities and Peoples in Canada [SSRN working paper]
with Areez Gangji and Maggie Jones
Forthcoming: Canada: The State of the Federation Series, McGill-Queen's University Press
Abstract: Existing work has highlighted several unique factors that made the COVID-19 pandemic response and the ensuing health impacts of the pandemic different for Indigenous Peoples when compared to non-Indigenous People. We summarise the existing literature that documents the experiences of Indigenous populations with COVID-19, focusing on relevant work from Canada. We find that economics research is underrepresented in this body of work. Using an economic framework to underpin our arguments, we highlight the mechanisms through which pre-pandemic conditions can lead to post-pandemic economic consequences for Indigenous communities, and we identify a series of economic factors that contribute to economic vulnerability. We argue that existing disparities across a wide variety of sectors — including health, housing, and infrastructure — increased the risk and harm to Indigenous populations. We also find evidence that Indigenous-led and tailored solutions can significantly reduce harm. We conclude by suggesting avenues for future related economics work and recommending policy options that may mitigate the economic consequences of future pandemics
Book Chapters
Digital Networking and the Case of Youth Unemployment in South Africa
with Patrick Shaw
2023: Springer, "An Introduction to Development Engineering" [Open access version]
Abstract: South Africa has one of the highest rates of youth unemployment and under-employment around the world, despite having a relatively large formal sector. This is driven, in part, by frictions in labor markets, including lack of information about job applicants’ skills, limited access to job training, and employers’ reliance on referrals through professional networks for hiring. This case study explores whether the online platform LinkedIn can be used to improve the employment outcomes of disadvantaged youth in South Africa. Researchers worked with an NGO, the Harambee Youth Employment Accelerator, to develop a training for young workseekers in the use of LinkedIn for job search, applications, and networking for referrals. This intervention was randomized across 30 cohorts of youth, with more than 1600 students enrolled in the study. The research team worked with LinkedIn engineers to access data generated by the platform. The evaluation finds that participants exposed to the LinkedIn training (the “treated” participants) were 10% more likely than the control group to find immediate employment, an effect that persisted for at least a year after job readiness training.
Working Papers
Draining Across Borders: How Common Pools Fuel Inequality [Learn more about the project on the Future Energy Systems webpage.]
with Lucija Muehlenbachs
Under review
Abstract: We study the drainage of First Nations’ oil in Western Canada. Many oil pools underlie land straddling the borders of First Nations reserves, creating a common pool problem. Ownership is determined based on the location of the well that brings the oil to the surface, regardless of where the oil originated in the subsurface. We show, theoretically and empirically, how heterogeneity in costs can exacerbate inequality: (i) lower-cost off-reserve wells located in close proximity to reserve borders drain First Nations oil; (ii) in response, wells on First Nations reserves extract at a faster pace than optimal. We discuss two mechanisms through which First Nations could have been compensated for the lost revenue and find neither were pursued.
More than Chance: The Local Labor Market Effects of Tribal Gaming [CICD Working Paper]
Reject and Resubmit at Journal of Human Resources
Abstract: Casino-style gaming is an important economic development strategy for many American Indian tribes throughout the United States. Using confidential Census microdata and a database of tribal government-owned casinos, I examine the local labor market effects of tribal gaming on different markets, over different time horizons, and for different subgroups. I find that tribal gaming is responsible for sustained improvements in employment and wages on reservations and that American Indians benefit the most. I also find that tribal gaming increases the average rental price of housing but by an amount smaller than the average wage increase, suggesting net local benefits.
Mapping the NCDFI Industry: Insights from a New Survey [CICD Working Paper] [CICD web article]
with Valentina Dimitrova-Grajzl, Peter Grajzl, and Michou Kokodoko
Under review
Abstract: We present the most extensive mapping to date of the U.S. Native Community Development Financial Institution (NCDFI) industry, based on a comprehensive new survey that we developed and administered to 49 certified and emerging NCDFIs. The survey uncovers key industry practices that reflect the distinctive concerns and cultures of the Native communities served by the NCDFIs. We explore the diversity of the NCDFI industry in terms of age, size, and geography, as well as strategic goals, risk assessment practices, and main perceived challenges and opportunities. Using cluster analysis, we identify and characterize four distinct NCDFI profiles and compare these NCDFI profiles based on product offerings, development services, and organizational practices. Our analysis illuminates both fundamental differences and important commonalities among organizations that play a crucial role in expanding access to credit, fostering entrepreneurship, and enhancing housing in Native communities.
Selected Works in Progress
Cleaning up the Legacy of Oil and Gas on First Nations' Land [learn more on the Resilient Energy Economies grant page]
with Lucija Muehlenbachs and Ipek Tastan
Resource Revenue Sharing Agreements [in partnership with the Confederacy of Treaty Six First Nations]
with Abena Boafoa Darkwah and Lucija Muehlenbachs
Matching Digital Service Export Jobs in Kenya
with Rob Garlick, Caroline Kariuki, Kate Orkin, and Ignacio Rodriguez Hurtado
[AEA trial registry]
The Legacy of Colonial Property Institutions: Economic Costs of a Federal Trusteeship* (2019 job market paper)
*This paper is undergoing substantial revisions