Job Search Behavior Over the Business Cycle (2018), with Toshihiko Mukoyama and Ayşegül Şahin, American Economic Journal: Macroeconomics 10(1): 190-215
Abstract: We create a novel measure of job search effort exploiting the American Time Use and Current Population Surveys. We examine the cyclicality of search effort using time-series, cross-state, and individual variation and find that it is countercyclical. We then set up a search and matching model with endogenous search effort and show that search effort does not amplify labor market fluctuations but rather dampens them. Lastly, we examine the role of search effort in driving recent unemployment dynamics and show that the unemployment rate would have been 0.5 to 1 percentage points higher in the 2008–2014 period had search effort not increased.
Concentrating on the Fall of the Labor Share (2017), with David Autor, David Dorn, Lawrence F. Katz and John Van Reenen. American Economic Review, Papers and Proceedings 107(5): 180-185
Abstract: The recent fall of labor’s share of GDP in numerous countries is well-documented, but its causes are poorly understood. We sketch a “superstar firm” model where industries are increasingly characterized by “winner take most” competition, leading a small number of highly profitable (and low labor share) firms to command growing market share. Building on Autor et al. (2017), we evaluate and confirm two core claims of the superstar firm hypothesis: the concentration of sales among firms within industries has risen across much of the private sector; and industries with larger increases in concentration exhibit a larger decline in labor’s share.
Working Hard in the Wrong Place: A Mismatch Based Explanation to the U.K.'s Productivity Puzzle (2016), with Ayşegül Şahin, Giorgio Topa and Giovanni Violante. European Economic Review, Vol 84:42-56
Abstract: The UK experienced an unusually prolonged stagnation in labor productivity in the aftermath of the Great Recession. This paper analyzes the role of sectoral labor misallocation in accounting for this “productivity puzzle”. If jobseekers disproportionately search for jobs in sectors where productivity is relatively low, hires are concentrated in the wrong sectors, and the post-recession recovery in aggregate productivity can be slow. Our calculations suggest that, quantified at the level of three-digit occupations, this mechanism can explain up to two thirds of the deviations from trend-growth in UK labor productivity since 2007.