Yutong (Harriet) CHEN
Welcome
My research interests lie in development economics, labor economics, and health economics.
Here is my Curriculum Vitae.
I will join the University of Texas at Arlington as an Assistant Professor of Economics in September 2024.
Education
Department of Economics, University of Virginia, U.S.
Ph.D. in Economics May 2024
M.A. in Economics May 2019
Bloomberg School of Public Health, Johns Hopkins University, U.S.
M.H.S. in Health Economics May 2018
School of Political Science and Economics, Waseda University, Japan
B.A. in Economics July 2017
Research
Working Papers
How Do Political Connections of Firms Matter During an Economic Crisis? (Revise & Resubmit at Journal of Development Economics)
with Gaurav Chiplunkar (UVA), Sheetal Sekhri (UVA), Anirban Sen (Ashoka University), and Aaditeshwar Seth (IITD)
Abstract: We use a new machine learning-enabled, social-network-based measurement technique to assemble a novel dataset of firms’ political connections in India. Leveraging this data along with a long panel of detailed financial transactions of firms, we study how political connections matter during an economic downturn. Using a synthetic difference-in-differences framework, we find that connected firms had 8-10% higher income, sales, and TFPR gains that were persistent for over a three-year period following the crisis. We unpack various mechanisms and show that connected firms were able to delay their short-term payments to suppliers and creditors, delay debt and interest payments, decrease expensive long-term borrowings from banks in favor of short-term non-collateral ones, and increase investments in productive assets such as computers and software. Our method to determine political connections is portable to other applications and contexts. [IZA Working Paper]
Coverage: Ideas for India
Gender-Specific Transportation Costs and Female Time Use: Evidence from India’s Pink Slip Program (Submitted)
with Devaki Ghose (World Bank), Kerem Cosar (UVA), Sheetal Sekhri (UVA), and Shirish Mahendru (GIZ)
Abstract: Reducing gender-specific commuting barriers in developing countries has complex and diverse effects on women's labor dynamics. We study a program that offers free bus rides for women in several Indian states (the Pink Slip program) using a synthetic difference-in-differences approach to shed light on labor supply and time use decisions of women. We observe decreased bus expenses and time saved on travel. Skilled employed women increase labor supply, while low-skill married women shift focus to household chores. Unemployed women intensify job searches, yet overall employment rates remain unchanged. Our findings highlight that alleviating commuting costs does not uniformly boost women's labor participation, as gender roles and societal norms continue to shape outcomes. [NBER Working Paper] [CEPR Discussion Paper]
Digitalization as a Double-Edged Sword: Winning Services and Losing Manufacturing in India
(Grants: Quantitative Collaborative Bynum Grant, $2,000; GSASC Research Grant, $400; Dept. of Economics, UVA, $1,000)
Abstract: Digitalization can increase firm productivity, but in developing countries with labor market frictions, not all firms are able to capitalize on digitalization opportunities. This study uses data from India--where a demonetization policy led to a large increase in digital payments--to examine the impacts of digitalization on firms across sectors in a developing country, identifying winners and losers in the short run. I find that service firms experienced growth in income and productivity while manufacturing firms witnessed a decline. I then explore the mechanisms driving this divergence. The results show that service firms invested more in information and communications technology (ICT) capital and hired more complementary skilled ICT labor, whereas manufacturing firms did not. Notably, this influx of skilled ICT workers into the service sector was drawn from the manufacturing sector due to limited spatial labor mobility. During this short-run transitional phase, wages for ICT labor were driven up while remaining stagnant for other workers. These findings underscore how digitalization, in the presence of labor market constraints, can exacerbate short-term sectoral divergence in productivity growth and shed light on its impacts on the growth trajectories of developing countries.
Works in Progress
Credit Crisis and Human Capital: Evidence from Micro-Finance Regulation in India
with Md Amzad Hossain (University of Arkansas) and Sheetal Sekhri (UVA)
Abstract: A large emergent literature highlights that wage-reducing economic shocks can have ambiguous effects on human capital accumulation. In our study, we theoretically propose and empirically establish that these effects are not homogeneous on children in all grades in the presence of dynamic complementarity in education. We utilize a 2010 micro-credit finance ban in Andhra Pradesh, India, that halted all micro-credit operations impacting loan recovery and liquidity in the state, to test our theory empirically in a synthetic differences-in-differences framework. We find an overall reduction in school enrolment of 6 percentage points due to the ban. However, this is driven by children in primary, middle, and secondary school. In sharp contrast, higher secondary school enrollment increased. This strategic behavior of the households is borne out in child labor decisions as well: younger children's likelihood of participating in wage-earning activities increased, while that of older ones fell.
Doctor, Why is my Bill Higher? Paradox of Zero-Markup Drug Policy in China
Data is secured: Administrative healthcare claims data from the Health Care Security Administration of a representative city in China.
Publications
1. "Effects of COVID-19 Shutdowns on Domestic Violence in the U.S." (Book Chapter) [NBER Working Paper]
with Amalia Miller (UVA), Melissa Spencer (University of Richmond), and Carmit Segal (University of Zurich)
Forthcoming in Handbook of Inequality and COVID-19 edited by Kenneth Couch
We analyzed data on hospital emergency department visits by adult women (aged 18 and over) in California for injuries from assaults between 2018 and 2020. The data was obtained from the California Department of Health Care Access and Information.
2. "Does the Gig Economy Discriminate against Women? Evidence from Physicians in China"
Journal of Development Economics, 2024
I analyze novel data from a major Chinese online healthcare platform and find female physicians charge lower prices and provide fewer consultations than males. Patient discrimination and the platform's design, particularly its ranking algorithm, play a role in these gaps.
Coverage: VoxDev
(Awards: Best Summer Paper, Best Dissertation Proposal)
3. "The Impact of Covid-19 Containment Lockdowns on MSMEs in India and the Resilience of Exporting Firms"
with Sisir Debnath (IITD), Sheetal Sekhri (UVA), and Vishal Sekhri
Journal of Economic Behavior and Organization, 2023.
We conducted a survey on micro, small, and medium enterprises in India to document the impacts of COVID-19 containment lockdowns on firms, their responses, and adaptation strategies.
with William Padula (USC), Reid, N., Tierce, J., Popper, C., and Walz, K.
Value in Health, 2020
We applied a decision tree model to study the cost-effectiveness of adding gut microbiome tests to the routine examination process in helping clinicians make better treatment decisions from the public perspective.
with William Padula (USC) and Nick Santamaria (University of Melbourne).
International Wound Journal, 2019.
We applied a Markov model to analyze the cost-effectiveness of preventing facility-acquired pressure injuries with a quality improvement bundle, including prophylactic five-layer dressings in US and Australian long-term care from the societal perspective.