Research

WORKING PAPERS:

Employer Responses to Family Leave Programs (with Rita Ginja and Arizo Karimi). IFAU Working Paper 2020:18.

Forthcoming, American Economic Journal: Applied Economics.

Search frictions make worker turnover costly to firms. A three-month parental leave expansion in Sweden provides exogenous variation that we use to quantify firms’ adjustment costs upon worker absence and exit. The reform increased women’s leave duration and likelihood of separating from pre-birth employers. Firms with greater exposure to the reform hired additional workers and increased incumbent hours, incurring additional wage costs. These adjustment costs vary by firms’ availability of internal and external substitutes. Economy-wide analyses show that a higher reform exposure is correlated with fewer hires and lower starting wages of young women compared to men and older women.

Human Capital Accumulation, Equilibrium Wage-Setting and the Life-Cycle Gender Pay Gap (with Noriko Amano-Patiño and Tatiana Baron). Cambridge Working Papers in Economics No. 2010.

Revise & resubmit, Quantitative Economics.

We study how turnover and human capital dynamics shape the life-cycle gender pay gap when employers are forward-looking and able to set gender-specific wage rates. In our equilibrium wage-posting model with learning-by-doing and fertility events, the life-cycle gap can be attributed to worker productivity, job search, employers’ endogenous wage-setting, and job productivity. Estimating the model on NLSY79 data, we find that although the high school and college gaps are driven by different forces, employers' wage-setting accounts for one-third of the gender gap in both groups. Neglecting interactions between turnover and human capital dynamics biases down the estimated role of turnover substantially.

This paper develops an equilibrium search model to study mechanisms underlying the lifecycle gender wage gap: workers’ skill accumulation, amenity preferences, and employers’ statistical discrimination in wage offers and hiring. Estimating the model on administrative employer-employee data from Finland, I find that statistical discrimination accounts for 44% of the gender wage gap in early career, whereas gender differences in labor force attachment explain most of the gap in late career. Policy counterfactuals highlight the importance of employers’ decisions on both wage and employment margins. Allocating parental leave more equally between men and women closes gender gaps both before and after having children.



SELECTED WORK IN PROGRESS:

Education, Marriage, and Child Development (with Pierre-André Chiappori, Monica Costa Dias and Costas Meghir)

The Careers and Wages of Women: Commuting, Sorting and Skills (with Monica Costa Dias and Fabien Postel-Vinay)

Skills, Mismatch, and Labor Market Search (with Ciprian Domnisoru, Arnaud Maurel and Andrew Shephard)

The Career Costs of Taking Parental Leave (with Erica Lindahl, Patrick Moran and Linh Tô)