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
Private information on car quality means the sale price reflects the average quality of cars sold, which can be lower than the average quality in the population. This difference is the lemons penalty imposed on holders of high quality cars. We estimate the evolution of the lemons penalty through an equilibrium model of car ownership with private information using Danish linked registry data on car ownership, income, and wealth. We examine the aggregate implications and distributional consequences of these penalties. In the first year of ownership, we estimate that the lemons penalty is 12% of the price. The penalty declines sharply with the length of ownership. It reduces the self-insurance value of cars and leads to a large reduction in transaction volumes and the rate of car turnover. The market does not collapse: income shocks induce households 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 supply of credit 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
The ‘right to request’ flexible working policy has been gradually extended and, by 2014, extended to cover all workers with at least 26 weeks of continuous employment. The impact of these policy changes is unclear. This research aims to assess the effects of the 2014 policy reform on the uptake of flexible working and its impact on health and well-being, focusing on gender differences. Data were drawn from waves 2, 4, 6, 8 and 10 of the UK Household Longitudinal Study (2010–2020). We employed a doubly robust difference-in-differences method to estimate the average treatment effects on the treated of the 2014 policy reform. This analysis examined the effects on the uptake of flexible working, mental and physical health, and satisfaction with life, job and leisure. The 2014 policy reform increased women’s uptake of reduced hours work arrangements, with the effect growing stronger over time. However, no increase in uptake was observed among men. No strong effects were found for flexitime or teleworking arrangements for either men or women. Additionally, the policy reform resulted in a reduction in psychological distress and improved life satisfaction among women. The reduction in women’s psychological distress and improved life satisfaction might be partly explained by the increased women’s uptake of reduced hours arrangements, which may have enabled women to better meet their family care demands. However, even the gender-neutral policies on flexible working may inadvertently exacerbate gender inequalities in labour force participation by pushing women more into part-time work.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