Research

Abstract:  This paper examines how geographic diversification shapes pricing and resilience among U.S. homebuilders. Using comprehensive housing transaction data from 2009-2012, I show that diversified national builders adjust prices across markets and time sales strategically to manage liquidity under financial frictions. I develop and estimate an equilibrium model in which builders optimally set prices across locations to smooth cash flow when external financing is costly. The model implies that financial frictions reduced public builders' profit margins by 20%, and that broader geographic portfolios sustained home prices about 2.5% higher during the housing bust.

Abstract:  This paper assesses the extent of monopsony power in the labor market for highly skilled immigrants, focusing on employment concentration and its impact on wages. We obtained the universe of petitions to the H1-B visa program, the largest high-skilled immigration program in the U.S., through a FOIA request. We first discover that the H-1B labor market is 30% more concentrated than the broader U.S. labor market, with a steadily increasing trend over the past decade. We then examine the causal impact of high employment concentration on H-1B workers’ wages by leveraging the lottery system for over-the-cap H-1B applications. The random lottery win rates in each labor market alter employment concentration, as different-sized firms vary in demand for first-time H-1B applicants, the only group subject to the lottery. Our results indicate that transitioning from the 25th to the 75th percentile of employment concentration results in a 12.2% wage decline, equivalent to a $10.5k salary loss for the median H-1B worker. The wage effects of concentration are primarily borne by first-time H-1B applicants, whose visa status is tied to a single employer. As a suggestive mechanism to these wage effects, we also find evidence that higher concentration leads to less job mobility between H-1B employers. These findings collectively suggest that H-1B policy reform should consider lifting the employer tie for first-time applicants.

Abstract: This study investigates the impact of teardowns and renovations on housing supply and gentrification dynamics in a city. Using single-family housing transaction records, we use a novel approach to identify instances of teardown or renovation activity based on relative changes in property resale prices within a zip code. Our findings show that areas with high land prices and stringent land regulations are more likely to experience major upgrades of pre-existing residential properties. Using a theoretical model of housing assignment with endogenous supply choice, we quantify the costs of teardowns, renovations, and new constructions. Finally, we examine how various policy interventions to enhance housing affordability, such as incentivizing affordable housing construction and change in land use regulations, affect the distribution of housing qualities and demographics in the long run.