Research

Working Paper

Earnings Cuts Upon Transitions and the Role of Stepping-stone Employers. [Draft]
Under Census Bureau Project #2799
I study the prevalence and drivers of earnings cuts upon transitions (ECUTs). Using linked administrative-survey data from U.S. census, I identify motivations for transitions and quantify ECUTs across them. I find many movers solely moitivated by pecuniary reason still experience ECUTs. Moreover, workers who transition for pecuniary reasons have higher future earnings growth and higher probability of subsequent transitions. I propose that certain employers act as “stepping-stones,” providing pathways to better job opportunities. I develop a random search model where employers differ in the quantity and quality of offer arrival rates, highlighting the role of stepping-stone employers in ECUTs and labor dynamics.

A Simple Search Model with Employer Network. [Draft] Submitted
Conibear Memorial Prize for the Best Third Year Paper, University of Rochester
I examine how employer network structures influence labor market outcomes with a simple search model. Employers are represented as network nodes, with edges reflecting higher job offer arrival rates. We establish the existence and uniqueness of a ‘node value,’ the expected lifetime value of using an employer’s network for job search. This node value share similar properties with option asset and network centrality. Through node values, employer network structures impact employment, labor mobility, and wage distributions.

Human Capital, Job Ladders, and Life-Cycle Labor Supply, with Paulo Lins [Draft available on request]
We document new facts about the behavior of total annual hours over the life cycle using NLSY79 data and show that current life-cycle models fail to explain these patterns. In the data, both the intensive and extensive margins of labor supply are equally important, each contributing 50% to the life-cycle growth in total annual hours. We propose a life-cycle model that nests different theories used to explain the hours’ profile and calibrate it to reproduce our empirical evidence. Both human capital accumulation and a job ladder are needed to account for the data patterns, while versions with only one ingredient fail to explain labor supply over the life cycle. Through counterfactual exercises, we find that human capital accumulation is the primary driver of wage growth in the early stages of a worker’s career, while job search significantly contributes to hours growth.

Anatomy of Motivations for Transitions
Under Census Bureau Project #2799
This project leverages the administrative and survey datasets from the U.S. Census Bureau to investigate the motivations behind job transitions and their connections to earnings dynamics and worker characteristics. I begin by benchmarking the NSCG against other public survey datasets, emphasizing its superior ability to capture transition motivations. In contrast to my job market paper, which centers on pecuniary motives, this analysis delves into non-pecuniary motivations and examines how these relate to various worker attributes. Finally, I analyze how reported motivations for transitions vary across the worker’s life cycle.