Pre-production Papers

The following papers, listed alphabetically by the first author's last name, have been accepted for publication in JEEA, and can be downloaded in in the EEA membership log in area. 

1 June 2021

Counterproductive Worker Behavior After a Pay Cut

Decio Coviello,
 Erika Deserranno
, Nicola Persico

We examine how workers reacted to a pay cut in a sales call-center setting in the US. The pay cut was implemented by raising two pre-existing sales targets, i.e., by “moving the goalposts.” Using a difference-in-difference approach, we show that among the workers who experienced the pay cut, some chose to leave the firm (exit); others generated abnormally high customer refunds, in a way that hurt both them and the firm (we define this work practice as counterproductive).

6 July 2021

Digitization and Development: Property Rights Security, and Land and Labor Markets

Sabrin Beg

I test the land and labor market effects of a property rights reform that computerized rural land records in Pakistan, making digitized records and automated transactions accessible to agricultural landowners and cultivators. Using the staggered roll-out of the program, I find that while the reform does not shift land ownership, landowning households are more likely to rent out land and shift into non-agricultural occupations. At the same time, cultivating households have access to more land, as rented in land and overall farm size increase.

6 July 2021

Expectation, Disappointment, and Exit: Evidence on Reference Point Formation from an Online Marketplace

Matthew Backus, Thomas Blake, Dimitriy V. Masterov, Steven Tadelis

We study disappointment and platform exit among new bidders in an online auction marketplace. In particular, we study a hybrid auction format with a “Buy-It-Now” option which, when executed, will abruptly end the auction and cancel any standing bids. When this happens, if the formerly leading bidder is new to the platform, then they are 6 percentage points more likely to exit the marketplace for every additional day they spent in the lead. This is rationalized by disappointment-averse bidders with outside options and rational expectations about the likelihood of winning.

29 July 2021

Targeting Credit Through Community Members

Diego Vera-Cossio

Locally targeted programs may exploit available information transmitted through local networks to improve the selection of beneficiaries, but the effective use of this information is not granted when the selection of beneficiaries entails balancing multiple targeting criteria that are costly to verify. This paper analyzes how local committees balance issues of neediness, productivity, risk, and favoritism to allocate subsidized loans to Thai villagers.

10 March 2021

The Adjustment of Labor Markets to Robots

Wolfgang Dauth, Sebastian Findeisen, Jens Suedekum, Nicole Woessner

We use detailed administrative data to study the adjustment of local labor markets to industrial robots in Germany. Robot exposure, as predicted by a shift-share variable, is associated with displacement effects in manufacturing, but those are fully offset by new jobs in services.

5 March 2021

The Impact of the First Professional Police Forces on Crime

Anna Bindler, Randi Hjalmarsson

This paper evaluates the effect on crime of creating a fundamental modern-day institution: centralized professional police forces tasked with preventing crime. We study the 1829 formation of the London Metropolitan Police – the first professional force worldwide.

10 June 2021

The Side Effects of Safe Asset Creation

Sushant Acharya, Keshav Dogra

We present an incomplete markets model to understand the costs and benefits of increasing government debt when an increased demand for safety pushes the natural rate of interest below zero. A higher demand for safe assets causes the ZLB to bind, increasing unemployment. Higher government debt satiates the demand for safe assets, raising the natural rate, and restoring full employment.