Working Papers
Does Growth Lead to Labor Reallocation? Role of Own-Product Improvement vs. Product Expansion [paper] [online appendix]
*Supersedes 'Growth and Labor Reallocation: Vertical versus Horizontal Innovation'
Abstract:
I study the relationship between long-run growth and labor reallocation when incumbent producers both innovate over their previous products (own-product improvements) and expand to new product markets (product expansion). I calibrate a quality ladder model of endogenous growth with an establishment panel survey data that distinguish different innovation types. I discover that own-product improvements account for 90% of productivity growth and 81% of the welfare gains from faster growth after R&D incentives. Since own-product improvements have smaller effects to reallocate labor between establishments, despite an increase in growth rates, labor reallocation rates barely change in response to R&D incentives.
How Task-Biased is Capital-Embodied Innovation? [paper] joint with Younghun Shim *New Draft!
*Supersedes 'Innovation on Tools and the Rise of Skill Premium'
Abstract:
This paper develops an occupation-level measure of Capital-Embodied Innovation(CEI) by matching patents with capital goods based on their text similarity. The im-pact of CEI on labor demand is heterogeneous, depending on the similarity betweencapital and occupational tasks. Specifically, CEI associated with task-similar capi-tal reduces the relative labor demand, whereas CEI related to task-dissimilar capitalraises it. Between 1980 and 2015, capital used by high-wage occupations experiencedmore innovations in task-dissimilar capital and fewer in task-similar capital. CEI canexplain 51% of the relative wage growth in high-wage occupations and significantlycontributes to routine- and abstract-biased labor market changes.
Work in Progress
Job Turnover and Productivity Growth
Specificity of Human Capital and Wage Growth joint with Davide Alonzo
Age Sorting in the Labor Market joint with Toshiaki Komatsu
Discussion
Productivity Gains from Labor Outsourcing [slides] by Gorkem Bostanci
Liability Dollarization and Exchange Rate Pass-Through [slides] by Junhyong Kim and Annie Soyean Lee
A Quantitative Exploration of Wealth Inequality: New Insights from Panel Data [slides] by Serdar Ozkan, Joachim Hubmer, Sergio Salgado, and Elin Halvorsen