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Minimum Wage and Real Wage Inequality: Evidence from Pass-Through to Retail Prices

The Review of Economics and Statistics 2021
This paper considers the impact of the minimum wage on both labor and product markets using detailed store-level scanner data. I provide empirical evidence that a 10% increase in the minimum wage raises grocery store prices by 0.6% to 0.8% and suggest that the minimum wage not only raises labor costs but also affects product demand, especially in poorer regions. This points to novel channels of heterogeneity in pass-through that have distributional consequences, with key implications for real wage inequality. I also find that price rigidity within retail chains ameliorates these effects, reducing the pass-through elasticity for retail prices by about 60%.

Farmer Field Days and Demonstrator Selection for Increasing Technology Adoption

The Review of Economics and Statistics 2021
Inadequate learning is an oft-cited friction impeding the adoption of improved agricultural technology in the developing world. We provide experimental evidence that farmer field days, an approach used throughout the world where farmers meet, learn about new technology, and observe its performance, alleviate learning frictions and increase adoption of an improved seed by 40%. Further analysis demonstrates that these field days are both cost-effective and have a greater impact on poorer farmers. In contrast, we find no evidence that selecting the first adopters of new technology in participatory village meetings has any effect on future adoption.

Adaptation and the Mortality Effects of Temperature Across U.S. Climate Regions

The Review of Economics and Statistics 2021 open access
We estimate how the mortality effects of temperature vary across U.S. climate regions to assess local and national damages from projected climate change. Using 22 years of Medicare data, we find that both cold and hot days increase mortality. However, hot days are less deadly in warm places while cold days are less deadly in cool places. Incorporating this heterogeneity into end-of-century climate change assessments reverses the conventional wisdom on climate damage incidence: cold places bear more, not less, of the mortality burden. Allowing places to adapt to their future climate substantially reduces the estimated mortality effects of climate change.

VAT Notches, Voluntary Registration, and Bunching: Theory and U.K. Evidence

The Review of Economics and Statistics 2021 103(1), 151-164 open access
Using administrative tax records for U.K. businesses, we document both bunching in annual turnover below the VAT registration threshold and persistent voluntary registration by almost half of the firms below the threshold. We develop a conceptual framework that can simultaneously explain these two apparently conflicting facts. The framework also predicts that higher intermediate input shares, lower product-market competition, and a lower share of business to consumer sales lead to voluntary registration. The predictions are exactly the opposite for bunching. We test the theory using linked VAT and corporation tax records from 2004 to 2014, finding empirical support for these predictions.