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Does Labor Supply Respond to Transitory Income? Evidence from the Economic Stimulus Payments of 2008

Journal of Labor Economics 2020 38(1), 1-38
This paper studies labor supply responses to transitory income, exploiting the differential timing of the 2008 tax rebates. While an influential literature finds that rebates encourage consumer spending, it has ignored the ramifications on labor supply. I estimate that each rebate dollar reduces monthly earnings by 9 cents with smaller but significant lagged effects. This responsiveness is primarily concentrated in the second quartile of the earnings distribution and among hourly workers. The results imply that the $96 billion in stimulus payments had a partial equilibrium effect of reducing short-term national labor earnings by more than $26 billion.

Quantile Treatment Effects in the Presence of Covariates

The Review of Economics and Statistics 2020 102(5), 994-1005
This paper proposes a method to estimate unconditional quantile treatment effects (QTEs) given one or more treatment variables, which may be discrete or continuous, even when it is necessary to condition on covariates. The estimator, generalized quantile regression (GQR), is developed in an instrumental variable framework for generality to permit estimation of unconditional QTEs for endogenous policy variables, but it is also applicable in the conditionally exogenous case. The framework includes simultaneous equations models with nonadditive disturbances, which are functions of both unobserved and observed factors. Quantile regression and instrumental variable quantile regression are special cases of GQR and available in this framework.

Medical Care Spending and Labor Market Outcomes: Evidence from Workers’ Compensation Reforms

American Economic Review 2018 108(10), 2995-3027 open access
Medical care represents an important component of workers' compensation benefits with the potential to improve health and post-injury labor outcomes, but little is known about the relationship between medical care spending and the labor outcomes of injured workers. We exploit the 2003--2004 California workers' compensation reforms which reduced medical spending disproportionately for workers incurring low back injuries. We link administrative claims data to earnings records for injured workers and their uninjured coworkers. We find that workers with low back injuries experienced a 7.6 percent post-reform decline in medical care, and an 8.1 percent drop in post-injury earnings relative to other injured workers.

Origins of the Opioid Crisis and its Enduring Impacts

Quarterly Journal of Economics 2022 137(2), 1139-1179 open access
Overdose deaths involving opioids have increased dramatically since the 1990s, leading to the worst drug overdose epidemic in U.S. history, but there is limited empirical evidence about the initial causes. In this article, we examine the role of the 1996 introduction and marketing of OxyContin as a potential leading cause of the opioid crisis. We leverage cross-state variation in exposure to OxyContin's introduction due to a state policy that substantially limited the drug's early entry and marketing in select states. Recently unsealed court documents involving Purdue Pharma show that state-based triplicate prescription programs posed a major obstacle to sales of OxyContin and suggest that less marketing was targeted to states with these programs. We find that OxyContin distribution was more than 50% lower in "triplicate states" in the years after the drug's launch. Although triplicate states had higher rates of overdose deaths prior to 1996, this relationship flipped shortly after the launch and triplicate states saw substantially slower growth in overdose deaths, continuing even 20 years after OxyContin's introduction. Our results show that the introduction and marketing of OxyContin explain a substantial share of overdose deaths over the past two decades.

The Value of Working Conditions in the United States and Implications for the Structure of Wages

American Economic Review 2023 113(7), 2007-2047 open access
We document variation in working conditions in the United States, present estimates of how workers value these conditions, and assess the impact of working conditions on estimates of wage inequality. We conduct a series of stated-preference experiments to estimate workers’ willingness to pay for a broad set of working conditions, which we validate with actual job choices. We find that working conditions vary substantially, play a significant role in job choice, and are central components of the compensation received by workers. We find that accounting for differences in preferences for working conditions often exacerbates wage differentials and intensifies measures of wage inequality. (JEL J22, J28, J31, J81)