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Intranational Home Bias: Some Explanations

The Review of Economics and Statistics 2003 85(4), 1089-1092
Wolf demonstrates that trade within the United States appears substantially impeded by state borders. We revisit this finding with improved data. We show that much intranational home bias can be explained by wholesaling activity. Shipments by wholesalers are much more localized within states than shipments from manufacturing establishments. Controlling for relative prices and the use of actual, rather than imputed, shipment distances also reduces home bias estimates.

No Pain, No Gain: Work Demand, Work Effort, and Worker Health

The Review of Economics and Statistics 2025 107(4), 898-913
We employ Danish worker-firm data to study the effect of rising workload on health. Using both within-job-spell regression analyses and cohort event studies, we show that increases in firm sales lead workers to log longer hours and experience higher probabilities of stress, depression, heart disease, and strokes, with more pronounced effects for high-risk groups such as older workers, job-strained workers, and those with long initial work hours. We calculate that the average worker's ex ante welfare loss due to higher sickness rates accounts for nearly one-quarter of her earnings gains from rising firm sales.