Interests: Labor Economics, Urban Economics, Public Economics
The Gender Earnings Gap in the Gig Economy: Evidence from over a Million Rideshare Drivers
with Cody Cook, Jonathan Hall, John List, and Paul Oyer
Draft: February 2018
The growth of the "gig" economy generates worker flexibility that, some have speculated, will favor women. We explore one facet of the gig economy by examining labor supply choices and earnings among more than a million rideshare drivers on Uber in the U.S. Perhaps most surprisingly, we find that there is a roughly 7% gender earnings gap amongst drivers. The uniqueness of our data—knowing exactly the production and compensation functions—permits us to completely unpack the underlying determinants of the gender earnings gap. We find that the entire gender gap is caused by three factors: experience on the platform (learning-by-doing), preferences over where/when to work, and preferences for driving speed. This suggests that, as the gig economy grows and brings more flexibility in employment, women’s relatively high opportunity cost of non-paid-work time and gender-based preference differences can perpetuate a gender earnings gap even in the absence of discrimination.
The Effects of Rent Control Expansion on Tenants, Landlords, and Inequality: Evidence from San Francisco
with Tim McQuade and Franklin Qian
Draft: November 2017
In this paper, we exploit quasi-experimental variation in the assignment of rent control in San Francisco to study its impacts on tenants, landlords, and the rental market as a whole. Leveraging new micro data which tracks an individual's migration over time, we find that rent control increased the probability a renter stayed at their address by close to 20 percent. At the same time, we find that landlords whose properties were exogenously covered by rent control reduced their supply of available rental housing by 15\%, by either converting to condos/TICs, selling to owner occupied, or redeveloping buildings. This led to a city-wide rent increase of 5.1% and caused $2.9 billion of total loss to renters. We develop a dynamic, structural model of neighborhood choice to evaluate the welfare impacts of our reduced form effects. We find that rent control offered large benefits to impacted tenants during the 1995-2012 period, averaging between $2300 and $6600 per person each year, with the present discounted value of aggregate benefits totaling $2.9 billion. The substantial welfare losses due to decreased housing supply could be mitigated if insurance against large rent increases was provided as a form of government social insurance, instead of a regulated mandate on landlords.
The Geography of Poverty and Nutrition: Food Deserts and Food Choices Across the United States
with Hunt Allcott and Jean-Pierre Dubé
Draft: December 2017
We study the causes of “nutritional inequality”: why the wealthy tend to eat more healthfully than the poor in the U.S. Using two event study designs exploiting entry of new supermarkets and households' moves to healthier neighborhoods, we reject that neighborhood environments have economically meaningful effects on healthy eating. Using a structural demand model, we find that exposing low-income households to the same food availability and prices experienced by high-income households would reduce nutritional inequality by only 9%, while the remaining 91% is driven by differences in demand. In turn, these income-related demand differences are partially explained by education, nutrition knowledge, and regional preferences. These findings contrast with discussions of nutritional inequality that emphasize supply-side issues such as food deserts.
The Long-term Consequences of Teacher Discretion in Grading of High-Stakes Tests
with Petra Persson
Draft: October 2017
This paper analyzes the long-term consequences of teacher discretion in grading of high-stakes tests. Evidence is currently lacking, both on which students receive test score manipulation and on whether such manipulation has any real, long-term consequences. We document extensive test score manipulation of Swedish nationwide math tests taken in the last year before high school, by showing significant bunching in the distribution of test scores above discrete grade cutoffs. We find that teachers use their discretion to adjust the test scores of students who have “a bad test day,” but that they do not discriminate based on gender or immigration status. We then develop a Wald estimator that allows us to harness quasi-experimental variation in whether a student receives test score manipulation to identify its effect on students’ longer-term outcomes. Despite the fact that test score manipulation does not, per se, raise human capital, it has far-reaching consequences for the beneficiaries, raising their grades in future classes, high school graduation rates, and college initiation rates; lowering teen birth rates; and raising earnings at age 23. The mechanism at play suggests important dynamic complementarities: Getting a higher grade on the test serves as an immediate signaling mechanism within the educational system, motivating students and potentially teachers; this, in turn, raises human capital; and the combination of higher effort and higher human capital ultimately generates substantial labor market gains. This highlights that a higher grade may not primarily have a signaling value in the labor market, but within the educational system itself.
Press Coverage: Marginal Revolution The Atlantic
Who Wants Affordable Housing in their Backyard? An Equilibrium Analysis of Low Income Property Development with Tim McQuade
Journal of Political Economy, forthcoming.
Press Coverage: NPR MarketPlace
Housing Supply Elasticity and Rent Extraction by State and Local Governments
American Economic Journal: Economic Policy, 9(1): 74-111. 2017.
Press Coverage: The National Review Online
The Determinants and Welfare Implications of US Workers' Diverging Location Choices by Skill: 1980-2000
American Economic Review, 106(3): 479-524. 2016. (Lead article)
Press Coverage: The Economist Blog, The New York Times Economix Blog, Washington Post Wonkblog, The Atlantic: Cities
Clustering, Spatial Correlations and Randomization Inference with Thomas Barrios, Guido W. Imbens, and Michal Kolesár. Journal of the American Statistical Association 107(498), 578-591, 2012.
Work in Progress
Consumption Responses to the Affordable Care Act: Evidence From Bank and Credit Card Data with Michael Dickstein, Tim McQuade, and Petra Persson
The Assimilation of Hispanics: Evidence from Retail Consumption with Kathryn Shaw and Francine Lafontaine