Working papers

"The Peer Effect on Future Wages in the Workplace" (with Salvatore Lattanzio), 2022

Abstract: We study a critical driver of future wages: peers. Using linked employer-employee data for Italy, we explore peer effects in two directions. First, using a novel estimation method and accounting for the endogenous sorting of workers into peer groups and firms, we estimate the impact of the average peer quality on future wages. We find that a 10 percent rise in coworker quality increases one's wage in the next year by 1.8 percent. The effect decreases gradually over time and becomes about 0.7 percent after five years. Second, we delve deeper into the channels that identify the peer effect. Using an event study specification around mobility episodes, we study how the entry and leave of high-quality and low-quality workers affect the wages of movers and coworkers. We find that hiring a high-quality worker is an important driver of wage growth, as well as separating from a low-quality worker. Movers experience an immediate gain when moving into high-quality peer groups.

"Time Aggregation in Health Insurance Deductibles" (with Corina Mommaerts), 2021

NBER Working Paper 28430; Revise and resubmit, American Economic Journal: Economic Policy

Abstract: Health insurance plans increasingly pay for expenses only beyond a large annual deductible. This paper explores the implications of deductibles that reset over shorter timespans. We develop a model of insurance demand between two actuarially equivalent deductible policies, in which one deductible is larger and resets annually, and the other deductible is smaller and resets biannually. Our model incorporates borrowing constraints, moral hazard, mid-year contract switching, and delayable care. Calibrations using claims data show that the liquidity benefits of resetting deductibles can generate welfare gains of 6-10% of premium costs, particularly for individuals with borrowing constraints.

"Social Pension and Labor Supply in Rural China" [Field paper], 2019

Abstract: This paper examines the effect of the New Rural Pension Scheme (NRPS) on labor supply among the aged population in rural China. Using a ‘reversed’ difference-in-difference specification, I find the introduction of NRPS has increased the (intensive) labor supply for both pensioners and contributors by more than 10 percent. Heterogeneity analyses suggest that the potential mechanisms are different for the pensioner and the contributor. For pensioners, the program has elevated effective labor productivity through health improvement and credit constraint alleviation, which leads them to work more. On the other hand, the pension contributor, especially those who are hand-to-mouth, increases labor supply because the annual contribution is an additional financial burden to them.

Work in progress

"Coworker sorting, learning, and wage inequality" (JMP preliminary title)

"Estimation and inference in a panel data model of peer and spillover effects" (with Mikkel Sølvsten)

Civil conflicts and the mismatch of powers in Subsaharan Africa” (with Massimo Morelli and Laura Ogliari)


"GiniInc: A Stata Package for Measuring Inequality from Incomplete Income and Survival Data" (with Guido Alfani, Chiara Gigliarano, and Marco Bonetti). The Stata Journal, 2018.

Abstract: Often, observed income and survival data are incomplete because of left- or right-censoring or left- or right-truncation. Measuring inequality (for instance, by the Gini index of concentration) from incomplete data like these will produce biased results. We describe the package giniinc, which contains three independent commands to estimate the Gini concentration index under different conditions. First, survgini computes a test statistic for comparing two (survival) distributions based on the nonparametric estimation of the restricted Gini index for right-censored data, using both asymptotic and permutation inference. Second, survbound computes nonparametric bounds for the unrestricted Gini index from censored data. Finally, survlsl implements maximum likelihood estimation for three commonly used parametric models to estimate the unrestricted Gini index, both from censored and truncated data. We briefly discuss the methods, describe the package, and illustrate its use through simulated data and examples from an oncology and a historical income study.

The package is available to download here or by simply typing - ssc install giniinc - in Stata.