CSMGEP Dissertation Session
Friday, Jan. 6, 2017 2:30 PM – 4:30 PM
Hyatt Regency Chicago, New Orleans
- Chair: Ebonya Washington, Yale University
Manufacturing Equal Pay: How Does Equal-Pay-for-Equal-Work Legislation Affect Manufacturers and Exporters?
AbstractThis paper provides new evidence on the effect of equal-pay for equal-work regulations on the employment of women in the manufacturing industry. Using the universe of Chilean manufacturing plants, I posit that characteristics of monopsonistic (oligopsonist) competition in the labor market contributed to the increase of female employment contrary to what classic economic theory of competitive labor markets and wage discrimination [Becker, 1957] would predict. The identification comes from a regression discontinuity (RD) design that exploits the quasi-experimental properties around the policy cutoff. I find that firms in the treated group (those with 200 employees or higher) increased female employment and their relative labor composition after the regulation was implemented. The results show that the impact was an increase of 3-5 percentage points higher than the control group.
Unpacking Policy Uncertainty: Evidence From European Firms
AbstractThe intensifying nature of policy uncertainty makes it a popular explanation for recent weak economic performance and puzzles. However, the empirical literature is limited in its ability to make causal claims because it largely relies on macro-level measures of policy uncertainty and treats the concept as homogenous but indeterminate. This research addresses these limitations by exploiting variation in firms' exposure to external markets to construct a firm-level measure of policy uncertainty. The approach both highlights a new channel for policy uncertainty and allows for stronger causal identification of the effects of policy uncertainty on economic performance. As part of this effort, I refine prior approaches to measuring policy uncertainty and distinguish between generic, fiscal, monetary, and trade policy uncertainty. I find that firms with greater exposure to external markets tend to experience larger declines in investment, sales, profits, and employment when fiscal and monetary policy uncertainty increase. Unexpectedly, increases in trade policy uncertainty appear to have a positive impact on exports for exposed firms. Both sets of findings can be rationalized in a standard model of firm investment under uncertainty. In particular, I present evidence that exposed firms may perceive increased uncertainty around trade agreement negotiations as a signal that negative outcomes are less likely in the near-term, incentivizing immediate investments.
The Effect of State Party Affiliation on Higher Education: A Regression Discontinuity Analysis
University of Chicago
University of Pennsylvania
- D0 - General
- E0 - General