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Working Paper
Structural Change in Labor Supply and Cross-Country Differences in Hours Worked
Tsujiyama, Hitoshi; Lagakos, David; Bick, Alexander; Fuchs-Schündeln, Nicola
(2022-05-11)
This paper studies how structural change in labor supply along the development spectrum shapes cross-country differences in hours worked. We emphasize two main forces: sectoralreallocation from self-employment to wage work, and declining fixed costs of wage work. We show that these forces are crucial for understanding how the extensive margin (the employment rate) and intensive margin (hours per worker) of aggregate hours worked vary with income per capita. To do so we build and estimate a quantitative model of labor supply featuring a traditional self-employment sector and a modern ...
Working Papers
, Paper 2022-006
Working Paper
The Geography of Jobs and the Gender Wage Gap
Su, Yichen; Liu, Sitian
(2020-10-02)
Prior studies have shown that women are more willing to trade off wages for short commutes than men. Given the gender difference in commuting preferences, we show that the wage return to commuting (i.e., the wage penalty for reducing commute time) that stems from the spatial distribution of jobs contributes to the gender wage gap. We propose a simple job choice model, which predicts that differential commuting preferences would lead to a larger gender wage gap for workers who face greater wage returns to commuting based on their locations of residence and occupations. We then show empirical ...
Working Papers
, Paper 2028
Working Paper
Punishment and Crime: The Impact of Felony Conviction on Criminal Activity
Jackson, Osborne
(2019-10-01)
This paper uses increases in felony larceny thresholds as a negative shock to felony conviction probability to examine the impact of punishment severity on criminal behavior. In the theft value distribution between old and new larceny thresholds (“response region”), higher thresholds cause a 2 percent increase in the average larceny value within 120 days of enactment. However, within five years of enactment, response region average larceny values and rates decline 2 percentand 13 percent, respectively, in low-wage areas. Thus, under certain market conditions, smaller expected penalties ...
Working Papers
, Paper 20-1
Working Paper
Work from Home After the COVID-19 Outbreak
Bick, Alexander; Blandin, Adam; Mertens, Karel
(2020-06-23)
Based on rich novel survey data on almost 5,000 working age adults, we document that 35.2 percent of the workforce worked entirely from home in May 2020, up from 8.2 percent in February 2020. Highly educated, high-income and white individuals were much more likely to shift to remote work and to maintain employment following the virus outbreak. Using available estimates of the potential number of home-based workers suggests that a large majority (71.7 percent) of U.S. workers that could work from home, effectively did so in May. We provide some evidence indicating that apart from the potential ...
Working Papers
, Paper 2017
Journal Article
Where Are They Now? Workers with Young Children during COVID-19
Pitts, M. Melinda
(2021-09-01)
Employment levels for prime-age workers have been greatly reduced during the COVID-19 pandemic. The decline has fallen disproportionately on females, especially compared to past recessions, and the presence of young children is a driving factor in this differential response. This article identifies the impact of gender, young children, and the presence of a spouse on the attachment to employment for individuals who were employed immediately prior to the pandemic. Compared to the Great Recession and the most recent expansionary period in 2019, women with young children have a relatively lower ...
Policy Hub
, Volume 2021
, Issue 10
Report
Job search behavior over the business cycle
Sahin, Aysegul; Patterson, Christina; Mukoyama, Toshihiko
(2014-08-01)
We create a novel measure of job search effort starting in 1994 by exploiting the overlap between the Current Population Survey and the American Time Use Survey. We examine the cyclical behavior of aggregate job search effort using time series and cross-state variation and find that it is countercyclical. About half of the countercyclical movement is explained by a cyclical shift in the observable characteristics of the unemployed. Individual responses to labor market conditions and drops in wealth are important in explaining the remaining variation.
Staff Reports
, Paper 689
Working Paper
Information and Inequality in the Time of a Pandemic
Dizioli, Allan; Pinheiro, Roberto
(2020-08-17)
We introduce two types of agent heterogeneity in a calibrated epidemiological search model. First, some agents cannot afford to stay home to minimize virus exposure. Our results show that poor agents bear most of the epidemic’s health costs. Furthermore, we show that when a larger share of agents fail to change their behavior during the epidemic, a deeper recession is possible. Second, agents develop symptoms heterogeneously. We show that for diseases with a higher share of asymptomatic cases, even when less lethal, health and economic outcomes are worse. Public policies such as testing, ...
Working Papers
, Paper 20-25
Working Paper
Work from Home Before and After the COVID-19 Outbreak
Bick, Alexander; Blandin, Adam; Mertens, Karel
(2022-02-17)
Based on novel survey data, we document a persistent rise in work from home (WFH) over the course of the COVID-19 pandemic. Using theory and direct survey evidence,we argue that three quarters of this increase reflects adoption of new work arrangements that will likely be permanent for many workers. A quantitative model matched to surveydata predicts that twice as many workers will WFH full-time post-pandemic compared to pre-pandemic, and that one in every five instead of seven workdays will be WFH. These model predictions are consistent with survey evidence on workers' own expectations about ...
Working Papers
, Paper 2022-008
Working Paper
Telework, Childcare, and Mothers’ Labor Supply
Heggeness, Misty; Suri, Palak
(2021-11-16)
We study the impact of increased pandemic-related childcare responsibilities on custodial mothers by telework compatibility of their job. We estimate changes in employment outcomes of these mothers in a difference-in-difference framework relative to prime-age women without children and a triple-difference framework relative to prime-age custodial fathers. Mothers' labor force participation decreased between 0.1 to 1.5 percentage points (ppts) relative to women without dependent children and 0.3 to 2.0 ppts compared to custodial fathers. Conditional on being in the labor force, the probability ...
Opportunity and Inclusive Growth Institute Working Papers
, Paper 52
Working Paper
Impact of the 2017 Tax Cuts and Jobs Act on Labor Supply and Welfare of Married Households
Rios-Avila, Fernando; Moore, Robert E.; Hotchkiss, Julie L.
(2021-06-24)
This paper calculates the change in optimal labor supply and total family welfare resultingfrom the Tax Cuts and Jobs Act of 2017 (TCJA). We estimate labor supply elasticities for marriedfamilies in the Current Population Survey from 2015 to 2017, using a joint family utility model. Theseelasticities are then used to simulate changes in optimal labor supply and resulting change in welfareamong families with different characteristics under the new TCJA tax code. We find that optimalhours are lower post-TCJA, relative to before. However, there are differences across family membersand family ...
FRB Atlanta Working Paper
, Paper 2021-18
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