Knowledge that Transforms

I show that firm location decisions create barriers to accessing high-wage employers for students at distant universities. I collect office locations and campus recruiting strategies for more than 70 banking and consulting firms from 2000 to 2013. After firms open an office, students at nearby universities are nearly four times more likely to have on-campus access to the firm. Access increases for universities across a wide range of selectivity. Additional data from universities, LinkedIn, and mobility report cards suggest effects on hires and longer-run income success.

Uncompetitive contests for grades, promotions, retention, and job assignments, which feature lax standards and limited candidate pools, are often criticized for being unmeritocratic. We show that when contestants are strategic, lax standards and exclusivity can make selection more meritocratic. When many contestants compete for a few promotions, strategic contestants adopt high-risk strategies. Risk-taking reduces the correlation between performance and ability. Through reducing the effects of risk-taking, “Peter principle” promotion policies, which entail promoting some contestants that are unlikely to be worthy, can increase the overall correlation between selection and ability and thus further meritocracy.

During the 1940s, a substantial share of southern Black men moved from low-skilled to much better paying semiskilled jobs. Using newly digitized military data, I show that counties with higher World War II casualty rates among semiskilled White soldiers saw an increase in the share of semiskilled Black workers. These deaths opened new employment opportunities for Black southerners and, together with learning effects by employers, can explain 35% of the occupational upgrading at mid-century. I provide evidence that the casualty-induced labor shortages reduced racial barriers to entry, leading to a positive selection of Black workers into semiskilled employment.

This paper examines the impact of male casualties due to World War II on fertility and female employment in the United States. We rely on the number of casualties at the county level and use a difference-in-differences strategy. While most counties in the United States experienced a baby boom following the war, we find that the increase in fertility was lower in high-casualty-rate counties than in low-casualty-rate counties. Analyzing the channels through which male casualties could have decreased fertility, we provide evidence that county male casualties are positively related to 1950s female employment and household income.

We employ a revealed preference test to distinguish between wage posting and wage bargaining. Using a sample of dual jobholders in Washington State, we estimate the sensitivity of wages and separation rates to wage shocks in a secondary job. In lower parts of the wage distribution, improvements in the outside option lead to higher separations rates but not to higher wages, consistent with wage posting. In the highest wage quartile, improved outside options translate to higher wages but not higher separation rates, consistent with bargaining. In the aggregate, bargaining appears to be a limited determinant of wage setting.

Based on 2016–20 hourly wage rates of McDonald’s basic crew and Big Mac prices collected simultaneously from almost all US McDonald’s, we find that in 25% of instances of minimum wage increases, restaurants keep constant their wage premium above the increasing minimum wage. Higher minimum wages are not associated with faster adoption of touch-screen ordering, and there is near-full price pass-through of minimum wages. Minimum wage hikes lead to increases in real wages (expressed as how many Big Macs 1 hour of basic crew work can buy) that are one-fifth lower than the corresponding increases in nominal wages.

Empirical peer effects research often employs censored peer data. Individuals may list only a fixed number of links, implying mismeasured peer variables. I first document that censoring is widespread in network data. I then introduce an estimator and characterize its inconsistency analytically; an assumption on the ordering of peers implies that censoring causes attenuated peer effects estimates. Next, I demonstrate the effect of censoring in two data sets, showing that estimates with censored data underestimate peer influence. I discuss interpretation of estimates, propose methods for correction and bounding, and give implications for the design of network surveys.

In two 1992 papers, Card and Krueger used labor market outcomes to study the productivity of school spending. Following their lead, we examine the effects of post-1990 school finance reforms on students’ educational attainment and labor market outcomes. Using a state-by-cohort panel design, we find that reforms increased high school completion and college-going, concentrated among Black students and women, and raised annual earnings. The reforms also increased the return to education, particularly for Black students and men, driven by the return to high school.

Recent work situates gender norms as a key driver of the sexual division of labor. But the explanatory power of Becker’s comparative advantage explanation is still not well understood. Drawing on unique data, we test the predictions of a formal Beckerian model. We complement this by proposing and analyzing new measures of specialization. We show that comparative advantage plays little or no role in the sexual division of labor within couple households. Absolute advantage also plays no role in specialization for same-sex couples, and this is not explained by having fewer children.

Firms often impose constraints on working hours. While many believe that these constraints shape labor supply decisions, little evidence exists to support such views. We explore this relationship using linked employer-employee data on hours worked and the variation in tax rates derived from the 2010 Danish tax reform. We show that hours worked are unresponsive to individual tax changes in firms with strict constraints, whereas they respond to these changes, directly and through spillovers, in firms with looser constraints. Starting from these findings, we discuss the determinants of hours constraints, distinguishing between firms’ technologies and coordination of hours among coworkers.