Research
Publications:
1. Durables and Lemons: Private Information and the Market for Cars, with Richard Blundell, Soren Leth-Petersen, Hamish Low, and Costas Meghir
Quantitative Economics, forthcoming
Media Coverage: The Economist, NEP-DGE blog
Earlier version: NBER Working Paper w26281
Abstract
We examine the aggregate implications and distributional consequences of asymmetric information in durable goods markets, with a focus on the car market. Private information introduces a lemons penalty, a wedge between the sale price and the average car value in the population, consequently reducing turnover. We estimate an equilibrium model of car ownership with private information using Danish linked registry data on car ownership, income, and wealth. In the first year of ownership, we estimate the lemons penalty is 12% of the price. The penalty declines sharply with the length of ownership. The penalty reduces the self-insurance value of cars and leads to a large reduction in transaction volumes and the rate of turnover of cars. The market does not collapse: income shocks induce individuals to sell their cars, even if they are of good quality, and this helps mitigate the lemons problem. The size of the lemons penalty declines when income uncertainty in the economy increases and when the credit limit decreases.2. Does the “right to request” flexible work policy influence men’s and women’s uptake of flexible working and well- being - Findings from the UK Household Longitudinal Study, with Baowen Xue, Heejung Chung, and Anne McMunn
BMJ’s Journal of Epidemiology & Community Health, 2025
Media Coverage: Forbes, Bloomberg, King’s College London News
Abstract
This paper investigates the impact of the UK's 2014 "right to request" flexible working policy on the uptake of flexible working arrangements and the resulting effects on employee health and well-being. We use a doubly robust difference-in-differences (DiD) method, comparing the outcomes of employees who became eligible for flexible working after the 2014 policy reform with those who were already eligible. The key findings reveal that the 2014 policy reform increased women's uptake of reduced-hours arrangements but did not have the same effect on men. The reform also led to a reduction in women's psychological distress and improved life satisfaction for both men and women. The study concludes that while flexible working arrangements can benefit both men and women in terms of improved well-being, gender-neutral policies may inadvertently exacerbate gender inequalities in labour force participation, possibly due to persistent traditional gender norms and expectations.3. The Gender Gap in Household Bargaining Power: A Revealed-Preference Approach, with Cameron Peng and Weilong Zhang
Review of Financial Studies, 2024
Media Coverage: The Conversation, U of Essex News, Science X, ScienMag
Earlier version: IFS Working Paper WP21/11
Abstract
When members of the same household have different risk preferences, whose preference matters more for investment decisions and why? We propose an intrahousehold model that aggregates individual preferences at the household level as a result of bargaining. We structurally estimate the model, analyze the determinants of bargaining power, and find a significant gender gap. Gender differences in individual characteristics, as well as gender effects, partially explain the gap. These patterns hold broadly across Australia, Germany, and the United States. We further link the distribution of bargaining power to households’ perceived gender norms in a cross-sectional analysis.4. Human Capital and the Business Cycle Effects on the Postgraduate Wage Premium
Review of Economic Dynamics, 2023
Media Coverage: LSE Business Review, Royal Economic Society, IFS Comment
Earlier version: IFS Working Paper WP19/26
Abstract
Postgraduate degree holders experience lower cyclical variation in real wages than those with undergraduate degrees. Moreover, postgraduate jobs require more specific human capital and take longer to adapt to. Using an equilibrium search model with dynamic incentive contracts, this paper attributes the cyclicality of the postgraduate-undergraduate wage gap to the differences in specific capital. Greater specific capital leads to lower mobility, thereby improving risk-sharing between workers and firms. The estimates of the model reveal that specific capital can explain the differences both in labour turnover and in real wage cyclicality between education groups.5. Effects of Stay-at-home Orders on Skill Requirements in Vacancy Postings, with Ling Zhong
Labour Economics, 2023