Labor Economics Commons^™

Eliciting Information About Teacher Applicants Using Open-Ended Questions, Joseph Aguilar-Bohorquez, Dan Goldhaber, Cyrus Grout, Elton Mykerezi, Prayash Pathak, Aaron Sojourner

Upjohn Institute Working Papers

Employers commonly use open-ended questions in hiring, but usually responses aren’t recorded, and knowledge about the usefulness of such responses is limited. This study investigates properties of written responses to open-ended questions collected over many years via an application tracking platform that school districts use to hire teachers. We develop a scalable process to discover topics within the corpus of responses to each question and then to classify each response with respect to the topics while preserving interpretability and transparency. It adapts a traditional qualitative topic modeling approach, Inductive Thematic Analysis, to best combine the strengths of researcher judgment and …

Unpacking Treatment Effect Heterogeneity In A Large-Scale Dropout Prevention Experiment, Thomas Dee, Chloe R. Gibbs, Rebecca Margolit-Chan, Lillian Morrell, James X. Sullivan

Upjohn Institute Working Papers

Timely high school completion is a critical step in successful transitions to post-secondary schooling and the labor market. This randomized controlled trial, deployed in two urban, disadvantaged school districts, tests the effectiveness of a mature and comprehensive student-support program on an unusually large scale (n=2,528). While overall effects on graduation rates are small and statistically insignificant, exploratory analyses reveal notable variation by site and over time, mirroring heterogeneity in treatment timing and program implementation. These findings highlight the challenges of scaling interventions and raise concerns about generalizing results from small-scale, single-site evaluations.

Work From Home In The Public And Private Sector, Harley Frazis

Upjohn Institute Working Papers

Working from home has remained a prominent part of the labor market after the COVID-19 pandemic. However, in January 2025 President Trump issued an executive order restricting the use of work from home (WFH) in the federal government. This paper examines trends in WFH by class of worker: private for-profit, private not-for-profit, federal, state, and local government. It evaluates how WFH evolved across different classes after accounting for differences in occupation and education, with a focus on trends for WFH in the federal government, relative to the for-profit class, before and after the restriction in federal WFH. Overall, “hybrid” WFH—working …

Local Labor Market Tightness And Job Quality: Evidence From Job Changers, Brad J. Hershbein, Katherine Lim, Douglas Webber, Mike Zabek

Upjohn Institute Working Papers

Using novel data from the Survey of Household Economics and Decisionmaking, we examine how labor market tightness affects workers’ job quality. We estimate that a 10 percent increase in job vacancies not only increases the probability of changing jobs, it yields an 11–18 percent increase in the (unconditional) probability of switching to a better job overall, and one with greater pay and benefits, interest in the work, and advancement opportunities. Because tight labor markets improve both worker pay and job amenities in roughly the same proportion, their benefits to workers are underestimated when based on pay alone.

Close To Home? Five Key Facts About Child Care Customer And Worker Commutes, Gabrielle Pepin, Jonathan Borowsky, Elizabeth E. Davis, Aaron Sojourner

Upjohn Institute Working Papers

Parents often cite location and convenience as important factors in choosing a child care provider. We use data on individual mobility from GPS in cell phones to study commutes to each licensed early childhood care and education (ECE) provider in 14 states separately for center customers, center workers, and customers of home-based child care providers. We document five key facts about ECE customer and worker commutes. One, center customers and workers commute farther than home-based customers to ECE providers. Two, substantial shares of customers and workers commute 10+ miles to their ECE provider. Three, commute distances to ECE providers vary …

Monopsony In Academia And The Gender Pay Gap: Evidence From California, Zhanhan Yu, Alfonso Flores-Lagunes

Upjohn Institute Working Papers

We investigate monopsony power in a highly skilled labor market made up of tenure-ranked faculty in the University of California system, and analyze differential monopsony power exposure by gender. We infer the campus-level labor supply elasticity by estimating the elasticity of separations utilizing individual-level faculty data and two instruments based on campus revenues and salary scales. We find that the “exploitation rate,” a common measure of monopsony power, is about 7% for tenure-ranked faculty. There is a statistically significant difference in the monopsony power experienced by male and female faculty that appears to account for a relatively small percentage of …

School System Selection Processes And Workforce Diversity In School, Dan Goldhaber, Cyrus Grout, Constance A. Lindsay, Elton Mykerezi, Aaron Sojourner

Upjohn Institute Working Papers

To date, there is little evidence about the extent to which teacher and principal diversity is related to the advancement of applicants to teacher and principal jobs through the hiring pipeline. We investigate this issue using novel job application and hiring data from a wide range of school districts and charter organizations. We find that non-White teacher applicants are less likely to advance through the hiring pipeline, particularly Asian applicants. We do, however, see evidence of heterogeneity with charter schools more likely to hire underrepresented minority teacher applicants. We do not find similar differences for principal hiring, but smaller samples …

Minimum Wages And Workplace Injuries, Michael Davies, R. Jisung Park, Anna Stansbury

Upjohn Institute Working Papers

How do minimum wage changes affect workplace amenities? Using the universe of claims from California, the US’ largest workers’ compensation system, over 2000-2019, we exploit geographic variation in state- and city-level minimum wages and local occupation-level variation in exposure to minimum wage changes to estimate whether minimum wage increases affect the rate of workplace injuries. We find a large adverse effect of raising minimum wages on injuries. A 10% increase in the minimum wage increases the injury rate by 7.2% in an occupation-metro area labor market which is fully exposed to the minimum wage increase. Our results imply an elasticity …

The Effects Of Declining U.S. Immigration On Local Labor Markets In Mexico, Gonzalo Ares De Parga-Regalado, Marta Prato

Upjohn Institute Working Papers

This paper examines how declining migration opportunities to the United States affect local labor markets in Mexico. Using novel micro-level data from consular identification cards and deportations, we link individuals’ Mexican municipalities of origin to their U.S. destination states. We implement a shift-share design based on historical migration networks and exploit regional variation in exposure to changes in U.S. migration flows between 2017 and 2022 to identify the local labor market effects of reduced emigration while controlling for involuntary repatriations. While we find no impact on overall employment rates, regions more exposed to the decline in migration experience an increase …

More Hours, More Work: Head Start Expansions Boost Maternal Employment, Chloe R. Gibbs, Esra Kose, Maria Rosales Rueda

Upjohn Institute Working Papers

Women’s employment remains highly sensitive to childcare constraints, making childcare availability a critical lever for supporting mothers’ labor force attachment. We study the effects of expanded full-day programming in Head Start, using the 2016 federal funding initiative that targeted grantees with low full-day enrollment. Linking administrative program data, geo-coded center locations, and household data on employment, we estimate a difference-in-differences design by comparing mothers of young children in treated and untreated areas. The policy increased full-day enrollment by 19 percent and raised single mothers’ employment (1.9%), hours (2.5%), and earnings (6.5%). Results show that extending program duration meaningfully improves maternal …

Human Capital And Labor Market Effects Of Elite Schooling In England, Scotland, And Wales: New Causal Evidence From Nonparametric Bounds, Zhanhan Yu, Vikesh Amin, Carlos A. Flores, Alfonso Flores-Lagunes, Giuseppe Germinario

Upjohn Institute Working Papers

We estimate the causal effect of attending elite schools in England, Scotland, and Wales on human capital and labor market outcomes for cohorts of children from the 1958 National Child Development Study and the 1970 British Cohort Study. For identification, we employ a nonparametric partial-identification approach that provides bounds on the causal effect by assuming that, on average, there is positive selection into elite school attendance, and that attending an elite school does not worsen average potential human capital or labor market outcomes. The bounds indicate that there could possibly be large education and labor market returns from attending an …

Early Learning Across Decades: Advances In Measuring Head Start Effectiveness, Chloe R. Gibbs

Upjohn Institute Working Papers

The Head Start program, launched in 1965 and targeted to children from disadvantaged backgrounds, remains the largest early childhood care and education (ECE) program in the United States and the only one deployed at the federal level. As such, the Head Start literature spans several decades and now allows for synthesis of findings from different contexts, time periods, and research designs. This paper provides a comprehensive assessment of the rigorous evidence measuring Head Start’s effects on children, their families, and society. The focus is on how (1) the contrast between program and counterfactual conditions, (2) takeup of the program among …

Migration And U.S. Labor Market Effects Of The Mexican Drug War, Mark Borgschulte, Yuci Chen, Eduardo Medina-Cortina

Upjohn Institute Working Papers

We estimate the effect of the Mexican drug war on Mexico-to-U.S. migration and the resulting effects on population, employment, and wages in U.S. labor markets. Our empirical strategy compares U.S. counties differentially connected to Mexican municipalities through historical migration networks, using drug violence triggered by close municipal elections in 2007–2008 as a source of exogenous variation. Over the following decade, migrants fleeing the violence—the vast majority of whom are undocumented—cause native-born U.S. workers’ employment rates to increase and unemployment rates to fall, while wages do not change. Employment gains are largest for natives without a college degree. Employment effects fade …

Just Cause Protection Under Manager Discrimination, Joseph Pickens, Aaron Sojourner

Upjohn Institute Working Papers

“Just cause” policies aim to discourage the arbitrary firing of employees. Recent efforts at passing such laws in the U.S. have been motivated by deterring discrimination. This paper presents a framework to study the effects of just cause when managers engage in taste-based discrimination. The framework generates predictions on whether just cause will ease achievement and retention of stable employment by exploiting the timing of separations around a probationary period. Since probationary periods are a typical feature of protections, the approach is generalizable. We test predictions using New York City’s 2021 just cause law for fast-food employees. Using a synthetic …

Exploring The Landscape Of Teacher Applications, Dan Goldhaber, Cyrus Grout, Constance A. Lindsay, Elton Mykerezi, Aaron Sojourner, Lauren Dachille

Upjohn Institute Working Papers

Despite widespread concern about teacher shortages, there is little evidence on when teaching positions are posted and how many people apply for them. Using detailed job-posting and application data on nearly 57,000 applicants from 19 traditional school districts and 24 charter organizations, we provide descriptive evidence on the timing of job postings, the supply of applicants, and the characteristics of applicants, emphasizing how each varies across organizations and between the district and charter sectors. We find that late hiring is less prevalent than prior single-district studies suggest—about 11% of openings are posted late—but varies widely across organizations. Applicant supply differs …

Effects Of Fair Workweek Laws On Labor Market Outcomes, Joseph Pickens, Aaron Sojourner

Upjohn Institute Working Papers

This paper models fair workweek regulations that require employers to provide employees with (1) schedule predictability via advance notice of their work schedule and premium payments for short-notice changes, and (2) access to hours meaning they must offer open hours to existing employees before hiring new workers. We develop a theoretical model of employers’ responses to these provisions and their implications for employment. Guided by the model, we estimate the effects of recently-adopted fair workweek regulation in New York City’s fast-food sector using a synthetic difference-in-differences design. We find a null employment effect.

The Labor Supply Curve Is Upward Sloping: The Effects Of Immigrant-Induced Demand Shocks, Sigurd Galaasen, Andreas Kostøl, Joan Monras, Jonathan Vogel

Upjohn Institute Working Papers

What is the effect of immigration on native labor-market outcomes? An extensive literature identifies the differential impact of immigration on natives employed in jobs that are more exposed to immigrant labor (supply exposure). But immigrants consume in addition to producing output. Despite this, no literature identifies the impact on natives employed in jobs that are more exposed to immigrant consumption (demand exposure). We study native labor market effects of supply and demand exposures to immigration. Theoretically, we formalize both measures of exposure and solve for their effects on native wages. Empirically, we combine employer-employee data with a newly collected data …

Does Schooling Improve Cognitive Abilities At Older Ages? Causal Evidence From Nonparametric Bounds, Vikesh Amin, Jere R. Behrman, Jason M. Fletcher, Carlos A. Flores, Alfonso Flores-Lagunes, Hans-Peter Kohler

Upjohn Institute Working Papers

We revisit much-investigated relationships between schooling and health, focusing on schooling impacts on cognitive abilities at older ages using the Harmonized Cognition Assessment Protocol in the Health & Retirement Study (HRS) and a bounding approach that requires relatively weak assumptions. Our estimated upper bounds on the population average effects indicate potentially large causal effects of increasing schooling from primary to secondary; yet, these upper bounds are smaller than many estimates from the literature on causal schooling impacts on cognition using compulsory-schooling laws. We also cannot rule out small and null effects at this margin. We do, however, find evidence for …

Causal Effects Of Schooling On Memory At Older Ages In Six Low-And-Middle-Income Countries: Nonparametric Evidence With Harmonized Datasets, Vikesh Amin, Jere R. Behrman, Jason M. Fletcher, Carlos A. Flores, Alfonso Flores-Lagunes, Iliana Kohler, Hans-Peter Kohler, Shana D. Stites

Upjohn Institute Working Papers

Higher schooling attainment is associated with better cognitive function at older ages, but it remains unclear whether the relationship is causal. We estimate causal effects of schooling on performances on the Consortium to Establish a Registry for Alzheimer’s Disease (CERAD) word-recall (memory) test at older ages in China, Ghana, India, Mexico, Russia, and South Africa. We used harmonized data (n=30,896) on older adults (≥50 years) from the World Health Organization Study on Global Ageing and Adult Health. We applied an established nonparametric partialidentification approach that bounds causal effects of increasing schooling attainment at different parts of the schooling distributions under …

Do Older Workers Change Their Labor Supply In Response To Housing Wealth Shocks?, Brian J. Asquith

Upjohn Institute Working Papers

Do older workers change their labor supply in response to unexpected housing wealth losses (or gains)? Housing wealth is the largest component in most older Americans’ portfolios, and they may seek to recoup losses by working longer to help smooth consumption in retirement. Despite its importance, prior studies have not arrived at a consensus answer. I perform three different analyses to re-approach this question using Health and Retirement Study (HRS) data: a descriptive analysis, two separate differences-in-differences-indifferences analyses exploiting the China Shock and the Great Recession, and an analysis employing autoregressive models for estimating unexpected shocks to housing price appreciation. …

How Much Can Families Afford To Pay For College?, Peter Hinrichs

Upjohn Institute Working Papers

This paper studies families’ capacity to pay for college in the United States, focusing on changes over time and differences by race and socioeconomic status. I use data from the National Postsecondary Student Aid Study (NPSAS) to document changes over time in the Expected Family Contribution (EFC) from the Free Application for Federal Student Aid (FAFSA). The results suggest that the EFC has been rising over time, and that this has been driven primarily by families in the upper quartile of the income distribution. I then use data from the Panel Study of Income Dynamics (PSID) to calculate alternative measures …

“Essential” Migrants: Evidence From The 2020 H-2b Visa Lottery, Parag Mahajan

Upjohn Institute Working Papers

I study how access to foreign-born workers impacts firms and local economics in times of acute crisis. The 2020 H-2B visa lottery randomly gave some U.S. firms the chance to hire low-wage, migrant workers during the height of the COVID-19 pandemic. Using administrative data across three government agencies, I find that access to H-2B workers led to decreased business closures, increased revenues, increased payroll, and increased employment in 2020. I also find suggestive evidence that these effects spilled over to non-participant firms within the same county.

Bargaining And Inequality In The Labor Market, Sydnee Caldwell, Ingrid Haegele, Jӧrg Heining

Upjohn Institute Working Papers

We use novel surveys of firms and workers, linked to administrative employer-employee data, to study the prevalence and importance of individual bargaining in wage determination. We show that simple survey questions accurately elicit firms’ bargaining strategies. Using the elicited strategies for 772 German firms, we document that the majority of firms are willing to engage in individual wage bargaining. Labor market factors predict firms’ strategies better than firm characteristics. Survey responses from nearly 10,000 full-time workers indicate that most worker-firm interactions begin with the worker rejecting the offer and remaining at the incumbent firm. There is substantial heterogeneity in workers’ …

The Parenthood Gap: Firms And Earnings Inequality After Kids, Rebecca Jack, Daniel Tannenbaum, Brenden Timpe

Upjohn Institute Working Papers

We document the dynamics of career paths around parenthood, capturing worker advancement within firms and across firms with differing pay rates. Using a new linkage between administrative data on U.S. workers’ fertility and labor market histories, we show that the parental earnings gap is partly explained by mothers transitioning to lower-paying firms. Firm downgrading is driven by parents who take an extended absence from the labor force. Mothers who move to lower-paying firms see improved job amenities but less generous fringe benefits. The firm’s contribution to the parental earnings gap rises over time and reaches one-third by the child’s 11th …

What Is The Value Of The Child And Dependent Care Credit?, Gabrielle Pepin

Upjohn Institute Working Papers

The Child and Dependent Care Credit (CDCC) subsidizes child care costs for working families. In response to the Covid-19 pandemic, the American Rescue Plan Act of 2021 increased the CDCC’s generosity during 2021 only. I find that while the CDCC is of relatively little value in its current form, increases in eligibility rates and conditional benefits under the pandemic expansion increased the credit’s value dramatically. Conditional on CDCC eligibility, higher-income households experienced the largest increases in benefit levels under the expanded CDCC, but lower-income households benefited disproportionately when measuring benefits as a share of income or child care spending.

New Employer Payroll Taxes And Entrepreneurship, Audrey Guo, Melanie Wallskog

Upjohn Institute Working Papers

How costly are taxes for young firms? In this paper, we demonstrate that even small payroll taxes significantly distort entry, growth, and hiring decisions. First, leveraging cross-sectional variation in the taxes faced by new employers, we find that higher taxes discourage new firms from hiring their first workers, with an elasticity of the number of new employers to taxes of −0.1. Second, studying changes in taxes after entry, we find that higher taxes lead more firms to exit, while also reducing employment for those who survive and leading some firms to avoid taxes by using non-taxable contract labor.

Predicting Rail Transit Impacts With Endogenous Worker Choice: Evidence From Oahu, Justin Tyndall

Upjohn Institute Working Papers

The provision of public transportation can improve the accessibility of work opportunities. However, predicting the labor market effects of new transit infrastructure is difficult because of endogenous worker decisions. I examine a large public-transit rail project on the island of Oahu, Hawaii. Using block-level commuter-flow and travel-time estimates, I propose and estimate a quantitative spatial model of location and mode choice for workers. I estimate that the new rail system increases public-transit-mode share and the employment rate but does not reduce the average commute duration, because of endogenous worker sorting. Low-income workers on Oahu capture a significant share of transit’s …

Strengthening Work Requirements? Forecasting Impacts Of Reforming Cash Assistance, Josep M. Nadal-Fernandez, Gabrielle Pepin, Kane Schrader

Upjohn Institute Working Papers

Work requirements are perhaps the most controversial aspect of the Temporary Assistance for Needy Families (TANF) program, America’s sole federal cash assistance program for low-income families with children. In 2025, for the first time in nearly 20 years, the Fiscal Responsibility Act of 2023 (FRA) will implement policy changes intended to strengthen states’ work requirements. However, researcher’ and policymakers’ understanding of how FRA will impact states’ compliance with federal requirements is hampered by a lack of research and publicly available data.

We tie information from reports submitted to the U.S. Department of Health and Human Services that are collected to …

Local Labor Markets Should Be Redefined: New Definitions Based On Estimated Demand-Shock Spillovers, Timothy J. Bartik

Upjohn Institute Working Papers

This paper provides estimates that lead to better U.S. labor market definitions. Current U.S. labor market definitions—for example, metropolitan areas and commuting zones—are unsatisfactory because they are ad hoc and usually do not correspond to commonly used local planning areas. This paper proposes basing U.S. labor market definitions on how a job shock to a county affects nearby counties’ employment rates. New estimates of county spillovers are presented. Using these estimated spillovers, new multicounty labor market definitions are based on maximizing a weighted sum of total spillovers captured, versus taking the average size of within-market effects. These new “spillover-defined local …

Birth Dearth And Local Population Decline, Brian J. Asquith, Evan Mast

Upjohn Institute Working Papers

Local population decline has spread rapidly since 1970, with half of counties losing population between 2010 and 2020. The workhorse economic models point to net out-migration, likely driven by changing local economies and amenities, as the cause of this trend. However, we show that the share of counties with high net out-migration has not increased. Instead, falling fertility has caused migration rates that used to generate growth to instead result in decline. When we simulate county populations from 1970 to the present holding fertility at its initial level, only 10 percent of counties decline during the 2010s.