RESEARCH EXPERIENCEFunding for a Research Assistant, RA Mentor Program, Boston University, Spring 2015
The Labor Supply Effects of Unemployment Insurance for Older Workers (work in progress)
Abstract: We study the labor supply effects of extending Unemployment Insurance (UI) benefits for older workers using German Social Security data and policy variation over 3 decades. Extensions of UI benefits can affect labor supply along two margins: it can lengthen the unemployment duration of an individual who is entering UI – the intensive margin – and it can alter the distribution of workers who are entering UI – the extensive margin. The extensive margin is particularly important for older workers in their 50s and 60s, who may use UI as a pathway into early retirement. We sho sharp bunching in UI inflows at various age discontinuities in UI eligibility for older workers, while for younger workers inflows into UI seem to be largely unaffected by UI generosity. We develop a simple model where a share of workers use UI as a pathway into retirement while others enter UI after regular lay-offs and choose their search intensity based on UI generosity. Using a combination of Regression Discontinuity and Bunching techniques, we estimate both intensive and extensive margin responses and back out the necessary model parameters to do counterfactual policy simulations.
Global Health Donors Viewed as Regulators of Monopolistic Service Providers: Lessons from Regulatory Literature
Controlling healthcare costs while promoting maximum health impact in the recipient countries is one the biggest challenges for global health donors. This paper views global health donors as the regulators of monopolistic service providers, and explores potential optimal fund payment systems under asymmetric information. It provides a summary and assessment of the prevailing optimal price regulation designs for monopolistic service providers. A set of non-Bayesian approaches that are relevant and applicable for the global health donors are discussed. It also reviews incentive contracting experience between the public and private sectors.
Full Paper (CGD working paper 424)
The effect of advance notification: evidence from WARN act
Mandatory advance notice of the impeding job loss in the event of plant closings and mass layoffs is one the government interventions to provide displaced workers separation protections. This paper evaluates the impact of advance notice on the employment prospects of the displaced workers using propensity-score matching method. The sample is obtained from the displaced worker supplement to the Current Population Surveys in the 1998 to 2008 decade. The estimation suggests workers received written notice two months before the layoffs are 5% less likely to become unemployment insurance (UI) claimants. However, advance notice has no significant effect on the UI exhaustion rate. The results are robust to sensitivity analysis of the conditional Independence assumption when the selection is negative. However, a modest positive selection into advance notice assignment halves the estimated ATT on reducing unemployment incidence.
Link to full paper upon request