Department of Economics
University of Chicago
1126 East 59th Street
Chicago, IL 60637
Institutional Affiliation: University of Chicago
NBER Working Papers and Publications
|August 2019||The Effects of Foreign Multinationals on Workers and Firms in the United States|
with Felix Tintelnot: w26149
Governments go to great lengths to attract foreign multinationals because they are thought to raise the wages paid to their employees (direct effects) and to improve outcomes at local domestic firms (indirect effects). We construct the first U.S. employer-employee dataset with foreign ownership information from tax records to measure these direct and indirect effects. We find the average direct effect of a foreign multinational firm on its U.S. workers is a 7 percent increase in wages. This premium is larger for higher skilled workers and for the employees of firms from high GDP per capita countries. We find evidence that it is membership in a multinational production network—instead of foreignness—that generates the foreign firm premium. We leverage the past spatial clustering of foreign-...
|June 2019||Imperfect Competition, Compensating Differentials and Rent Sharing in the U.S. Labor Market|
with Thibaut Lamadon, Magne Mogstad: w25954
The primary goal of our paper is to quantify the importance of imperfect competition in the U.S. labor market by estimating the size of rents earned by American firms and workers from ongoing employment relationships. To this end, we construct a matched employer-employee panel data set by combining the universe of U.S. business and worker tax records for the period 2001-2015. We describe several important features of the U.S. labor market, including the size of firm-specific wage premiums, the sorting of workers to firms, the production complementarities between high ability workers and productive firms, and the pass-through of firm and market shocks to workers' wages. Guided by these empirical results, we develop, identify and estimate an equilibrium model of the labor market with two-sid...
|June 2017||Disability Benefits, Consumption Insurance, and Household Labor Supply|
with David Autor, Andreas Ravndal Kostol, Magne Mogstad: w23466
There is no evaluation of the consequences of Disability Insurance (DI) receipt that captures the effects on households' net income and consumption expenditure, family labor supply, or benefits from other programs. Combining detailed register data from Norway with an instrumental variables approach based on random assignment to appellant judges, we comprehensively assess how DI receipt affects these understudied outcomes. To consider the welfare implications of the findings from this instrumental variables approach, we estimate a dynamic model of household behavior that translates employment, reapplication and savings decisions into revealed preferences for leisure and consumption. The model-based results suggest that on average, the willingness to pay for DI receipt is positive and sizabl...
Published: David Autor & Andreas Kostøl & Magne Mogstad & Bradley Setzler, 2019. "Disability Benefits, Consumption Insurance, and Household Labor Supply," American Economic Review, vol 109(7), pages 2613-2654. citation courtesy of