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...

Empirical researchers often combine multiple instrumental variables (IVs) for a single treatment using two-stage least squares (2SLS). When effects are heterogeneous, common justification including IVs is that the 2SLS estimand can be given causal interpretation as positively weighted average of local (LATEs). This requires well-known monotonicity condition. However, we show with more than one ...

The nullification of slave wealth after the US Civil War (1861–1865) was one largest episodes compression in history. We document that White Southern households owned more slaves 1860 lost substantially by 1870, relative to had been equally wealthy before war. Yet, their sons almost entirely recovered from this shock 1900, and grandsons completely converged 1940. Marriage networks connections o...

We analyze the long-term workforce composition when quality of mentoring available to majority and minority juniors depends on their representation in workforce. A with at least 50 percent workers invariably converges one where is overrepresented relative population. To maximize welfare, persistent interventions, such as group-specific fellowships, are often needed, optimal may include lower in...

We estimate long-run intergenerational persistence in human capital using information on outcomes for the extended family: dynasty. A dataset including entire Swedish population, linking four generations, allows us to identify parents’ siblings and cousins, their spouses, spouses’ siblings. Using various measures, we show that traditional parent-child estimates underestimate by at least one-thi...

A principal owns a firm, hires an agent of uncertain productivity, and designs dynamic policy for evaluating his performance. The observes ongoing evaluations decides when to quit. When not quitting, the is paid wage that linear in expected productivity; claims residual After players secure fixed outside options. I show equilibrium Pareto efficient. For broad class performance technologies, det...

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...

The high-tech sector is concentrated in a small number of cities. ten largest clusters computer science, semiconductors, and biology account for 69 percent, 77 59 percent all US inventors, respectively. Using longitudinal data on 109,846 I find that geographical agglomeration results significant productivity gains. When an inventor moves to city with large cluster inventors the same field, she ...

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...