We study the geographic incidence and efficiency of an income tax by estimating a spatial equilibrium model with heterogeneous workers. The US shifts households out high-productivity cities, leading to locational inefficiency 0.25 percent output. Removing distortions increases inequality because more educated are mobile own larger shares land. Flattening schedule, or introducing cost-of-living ...

This paper measures excess labor supply in equilibrium. We induce hiring shocks—which employ 24 percent of the force external month-long jobs—in Indian local markets. In peak months, wages increase instantaneously and aggregate employment declines. lean consistent with severe rationing, are unchanged, positive spillovers on remaining workers, indicating that over a quarter is rationed. At least...

While privatization of state-owned enterprises (SOEs) remains a popular policy tool in many countries, the impacts on workers are unclear. This paper studies case Brazil, which implemented large program 1990s. Following privatization, incumbent privatized SOEs suffer wage decline roughly 25 percent relative to matched control group. Additionally, private sector firms that connected by labor mob...

This paper examines the long-run effects of 1980–1982 recession on education and income. Using confidential census data, I estimate difference-in-difference regressions that exploit variation across counties in severity cohorts age at time recession. For individuals 0–10 1979, a 10 percent decrease earnings per capita their county birth reduces four-year college degree attainment by 15 adulthoo...

Increases in the minimum wage can substantially reduce earnings inequality. To demonstrate this, we combine administrative and survey data with an equilibrium model of Brazilian labor market. We find that a 128 percent increase real Brazil between 1996 2018 had far-reaching spillover effects on wages higher up distribution. The increased accounts for 45 large fall inequality over this period. A...

We quantify the importance of imperfect competition in US labor market by estimating size rents earned American firms and workers. construct a matched employer-employee panel dataset combining universe business worker tax records for period 2001–2015. Using this data, we identify estimate an equilibrium model with two-sided heterogeneity where workers view as substitutes because heterogeneous p...

Despite the implications for policy, empirical evidence on relative importance of factors that shape labor supply responses is missing. This paper helps fill this gap and quantifies role information frictions versus other by combining notches in Norwegian welfare system quasi-experimental variation access to about slope location kinks. While we estimate a frictionless elasticity 0.3, overall at...

We measure the effects of firm policies on racial pay differences in Brazil. Non-Whites are less likely to be hired by high-wage firms, explaining about 20 percent wage gap for both genders. Firm-specific premiums non-Whites also compressed relative Whites, contributing another 5 that gap. A counterfactual analysis reveals two-thirds underrepresentation at higher-wage firms is explained race-ne...