We use a search model of the labor market in which jobs are characterized by flexibility (such as the possibility of working from home, or discretion in choosing work-hours) to estimate the distribution of preferences over flexibility. In an hedonic wage model, a job amenity is estimated to...

We present a general equilibrium model to understand the implications of short-term debt playing a special role in an economy in providing liquidity and facilitating transactions. In our model the supplies of short-term public and private debt are an endogenous outcome of optimal actions by the...

We study the costs and benefits of Medicaid in a model in which retired single people optimally choose consumption, medical spending and saving, while facing uncertainty about their health, lifespan and medical needs. We document Medicaid take-up rates by age, permanent income, and gender in the...

In our model, short-sighted policy-makers choose to subsidize productive entrepreneurs to relax their limited commitments. In the short-run, this policy reallocates capital from unproductive towards productive entrepreneurs, and boosts per-capita income, TFP and capital accumulation. Over time,...

This paper studies the impact of unions on wage inequality, output and unemployment. To do so, it proposes a search and matching model of union formation in which unions arise endogenously through a voting process within firms. In a union firm, workers bargain their wages collectively. In a...

We use novel high-frequency panel data on individuals' job applications from an online job posting engine to study (1) whether at the beginning of search job seekers with different levels of education apply to different jobs, and (2) how search behavior changes as search continues. First, we...

This paper studies the extent to which frictions in financial markets affect aggregate trade flows. I study a model of firm dynamics with financial frictions and international trade, calibrated to match key features of firm-level data. I find that, while financial frictions have a large effect...

Our analysis offers a different rationale for the failure of the Atkinson-Stiglitz theorem than that of Naito (1999). Moreover, our results are in sharp contrast to those of Saez (2004) and Scheuer (2012), who considers an occupational choice model where workers have heterogeneous idiosyncratic...

This paper examines the role of the market for high-skilled labor in explaining variation in the levels and dynamics of the service share, home production time, and market labor across countries. We establish and extend key facts for a cross-section of countries. First, growth in the total share...

We document five facts about price dispersion.