Research team
Expertise
It has long been recognized that most economic transactions do not take place on anonymous markets but rather they are bilateral transactions among two parties that need to know each other and to meet in order for the exchange to take place. Hence, one’s network of social interactions is important in shaping own economic outcomes. This is the case for example on the labor market: many studies showed how relevant one’s social ties are in determining wages and employment opportunities. In my research I study the implications of the interplay between social interactions and economic activities, from two complementary perspectives. First, I empirically study the effect of social interactions on economic outcomes the marriage market and the labor market. In my research, I quantify to which extent one’s attitude towards some particular socio-demographic groups are affected by the type and frequency of the social interactions with their members. The goal of this research is to derive long run implications for relevant societal outcomes such as marriages, and in particular, interracial marriages, the education of children, and labor market discrimination. Second, I study the implications of the fact that, once agents realize that their social ties can affect their economic outcomes, they might strategically invest in social interactions. Indeed, one of the most important challenges in order to empirically study the effect of social interactions on economic outcomes is how to disentangle the effect of peers on behavior from peer selection. In order to solve this problem, I develop frameworks where both actions and peers are the result of an individual choice. In developing each of these two perspectives, I use both empirical and theoretical tools in order to derive implications that will be helpful in alleviating the inequalities and inefficiencies that typically emerge in the decentralized equilibria of networked economies.
The role of the family in explaining gender gaps in the labor market: lessons from economic crises for the COVID-19 pandemic.
Abstract
Vrouwen bereiken consequent slechtere resultaten op de arbeidsmarkt dan mannen, in termen van lonen, participatiegraden en werkloosheid. Deze verschillen zijn nog groter geworden door de economische crisis die is veroorzaakt door de huidige Covid-19-pandemie. Recente literatuur benadrukt dat: (i) een belangrijk deel van deze kloven te wijten is aan loondiscriminatie door monopsonistische werkgevers die de lage elasticiteit van het aanbod van vrouwen aan de individuele onderneming benutten; (ii), hoe koppels gezamenlijke beslissingen nemen met betrekking tot het arbeidsaanbod en baankeuzes, is belangrijk voor het begrijpen van deze kloven. Familiebeslissingen zijn het resultaat van een onderhandelingsproces tussen de leden van het huishouden, wiens voorkeuren de uitdrukking zijn van de sociale normen waaraan zij zich houden. In dit project willen we de rol van het gezin bestuderen bij het verklaren van beslissingen over het arbeidsaanbod van koppels en hun gevolgen voor genderkloven. De uitdaging is dat het arbeidsaanbod afhankelijk is van onderhandelingsposities binnen het huishouden, maar onderhandelingsposities zelf veranderen met relatieve economische prestaties binnen het huishouden. Om dit endogeniteitsprobleem op te lossen, stellen we voor om grote macro-economische schokken te gebruiken als natuurlijke experimenten. De hypothese is dat grote veranderingen in de economische omstandigheden ons een exogene variatie in de onderhandelingspositie binnen de huishoudens geven die de onderhandelingsprocedure zelf kan beïnvloeden als ze voldoende persistent zijn. In het bijzonder willen we in dit onderzoeksproject: (i) begrijpen in welke mate veranderingen in hoe de onderneming concurreert voor werknemers van elk geslacht dat wil zeggen, genderkloven in monopsonistische concurrentie de evolutie van genderkloven op de arbeidsmarkt in de economische cyclus verklaren; (ii) om deze resultaten te gebruiken om te onderzoeken hoe het besluitvormingsproces binnen het huishouden (zoals bepaald door sociale normen over genderrollen in het gezin) verandert als gevolg van de economische omgeving. Eerst zullen we een raamwerk ontwikkelen waarmee we een oorzakelijk verband kunnen leggen tussen macro-economische schokken en genderkloven op de arbeidsmarkt, die leiden tot veranderingen in de onderhandelingspositie binnen het huishouden. Vervolgens zullen we analyseren hoe die veranderingen in onderhandelingspositie in het huishouden, zoals geïnstrumenteerd door de economische cyclus, de gezinsbeslissingen van het gezin beïnvloeden. Het begrijpen van de evolutie van sociale normen zou van grote waarde zijn voor het ontwerpen van beleid dat gericht is op het herdefiniëren van de gendernormen binnen het huishouden. Aangezien het banenverlies tijdens de Covid-19-pandemie bijzonder ernstig is voor vrouwen en vrouwen ook de meeste extra kinderopvangtaken geïmpliceerd door de sluiting van kleuterscholen en scholen op zich namen, zou deze crisis decennia van vooruitgang in de richting van gendergelijkheid kunnen uithollen. Ons project beoogt een leidraad te bieden om deze trend te keren door beleidsinterventies te ontwerpen die op lange termijn veranderingen in sociale normen kunnen veroorzaken.Researcher(s)
- Promoter: Decancq Koen
- Promoter: Merlino Luca Paolo
- Co-promoter: Winkler Roland
- Fellow: Mandrisch Lucas
Research team(s)
Project type(s)
- Research Project
Diversity in schools, socialization, marriages and the labor market.
Abstract
Recent trends in migration trends in Western countries remind us that diversity is inevitable in human societies. Ensuring that this does not hinder their well-functioning is a primary challenge. The aim of this project is to understand the mechanisms through which social contact among people of different backgrounds affects behavior. In particular, we will provide causal estimates investigating when contact with minorities induces positive effects on behavior in two economic relevant contexts: the family and the labor market. To do so, we will exploit administrative data from Denmark and a unique survey conducted in the US to measure variation in inter-ethnic exposure across cohorts within schools. Using these data, we will analyze the impact of different types of contact in schools on the quality of interracial marriages and on labor market integration. Finally, we will rationalize these findings in a model where agents decide with whom to interact and provide a local public good to their neighbors, a strategic interaction that captures cooperation in an abstract way. Indeed, to design effective policies that change group composition we believe that it is important to understand how people would change their patterns of socialization after the intervention. Answering the basic question of whether increasing contact between diverse groups in schools improves intergroup relations has direct policy implications on the best way to mix pupils.Researcher(s)
- Promoter: Bouckaert Jan
- Promoter: Merlino Luca Paolo
Research team(s)
Project type(s)
- Research Project
Diffusion of Misinformation in Social Networks.
Abstract
Despite the availability of large amount of data about economic, social, and political phenomena, misinformation is ubiquitous in society. Platforms like Facebook and Twitter allow agents to receive and share a lot of information in a very short time and to have an easy access to each other's opinion. This leads to faster dissemination of news and faster social learning. But it also leaves the door open to the spread of misinformation such as fake-news, as well as to opinion manipulation. This project aims at studying to key factors of the spread of misinformation: (i), how misinformation arises and, (ii), how it propagates. I will investigate the origin of misinformation and of initial biases in processing information. To do, I will consider both cultural and psychological factors, such as community identity, the intergenerational transmission of values, and the role of emotions (i.e., frustration and anger). I will study how behaviors and information spread through different kinds of social and strategic interactions. The project will analyze how social interactions, and the induced structure of the network of communication, influence the aggregation of information, the incentives to share or to gather information, and the failure of social learning processes.Researcher(s)
- Promoter: Bouckaert Jan
- Promoter: Merlino Luca Paolo
- Fellow: Della Lena Sebastiano
Research team(s)
Project type(s)
- Research Project
Searching for partners via friends: implications for household formation and economic decisions
Abstract
The aim of this project is to understand the interplay between the search for partners, household formation and economic decisions. Making an investment in the ability to search for a better partner affects the characteristics of the match, but also the bargaining position in the relationship by determining the quality of the outside options in case of divorce. We will introduce search frictions in the marriage market proposing a matching model where search frictions are captured by a matching function or by search of partners via social networks. Modeling search behavior implies a better description of the intra-household decision process, which in turn yields a more powerful analysis of household choice behavior and its welfare implications on spouses and their children. The aim of this project, which is part of a bigger research agenda, is to estimate non-parametrically these models using revealed preferences analysis to provide a structural description of the within-household allocation as a function of the search behavior defining the current and future outside options on marriage markets.Researcher(s)
- Promoter: Merlino Luca Paolo
- Promoter: Vujić Sunčica
- Fellow: Yurdakul Ekin
Research team(s)
Project type(s)
- Research Project
Search behavior in the marriage market, household formation and economic decisions: a revealed preference analysis.
Abstract
The aim of this project is to explicitly integrate marriage decisions in the wider context of household decisions when divorce is a possible option. This project wants to better understand the interplay between the search for partners, household formation and economic decisions. The idea is that making an investment in the ability to search for a better partner affects the characteristics of the match, but also the bargaining position in the relationship by determining the quality of the outside options in case of divorce. We will introduce search frictions in the marriage market using two approaches. First, we will propose a matching model where search frictions are captured by a matching function. Secondly, motivated by the empirical observation that most spouses meet through friends, we will study a marriage market where the choice of partners is constrained by one's social networks. We will estimate non-parametrically the models using revealed preferences to provide a structural description of the within-household allocation as a function of the search behavior defining the current and future outside options on marriage markets. Overall, modeling search behavior implies a better description of the intra-household decision process, which in turn yields a more powerful analysis of household choice behavior and its welfare implications on spouses and their children.Researcher(s)
- Promoter: Cosaert Sam
- Promoter: Merlino Luca Paolo
Research team(s)
Project type(s)
- Research Project
Public economics.
Abstract
It has long been recognized that most economic transactions do not take place on anonymous markets but rather they are bilateral transactions among two parties that need to know each other and to meet in order for the exchange to take place. Hence, one's network of social interactions is important in shaping own economic outcomes. This is the case for example on the labor market: many studies showed how relevant one's social ties are in determining wages and employment opportunities. In my future research I intend to continue my work on the understanding of the interplay between social interactions and economic activities, from two complementary perspectives. First, I will empirically study the effect of social interactions on economic outcomes in two applications, that is, the marriage market and the labor market. In many situations and countries, people have a negative attitudes towards the members of a certain group because of statistical discrimination or preferences. Stereotyping have implications in many markets, such as the marriage market and the labor market. In my research, I will test the so-called contact hypothesis: social interactions with member of the discriminated group might affects one's expectations regarding their behavior or characteristics, and in turn reduce statistical or taste discrimination. Regarding the marriage market, I will analyze whether the racial composition of school students' cohorts impacts romantic relationships later in life. In the case of the labor market, I will focus on gender differences in the allocation of workers to firms. Second, I will study the implications of the fact that, once agents realize that their social ties can affect their economic outcomes, they might strategically invest in social interactions. As a result, it is difficult to disentangle the effect of peers on behavior from peer selection. Since, it is not always possible to devise strategies according to which there is an exogenous variations in peers, I will develop models that can inform us on how to disentangle empirically the effects of peer selection and peers effects on behavior. I will apply these techniques to three applications: the use of referrals in the labor markets, the diffusion of rumors in social networks and taxation in the private provision of public goods. On the one hand, my domain covers both modern social and economic network theory and the more traditional search and matching literature. On the other hand, it also ranges from theoretical and to applied work: I strongly abide with the view that, while theory is needed to guide empirical analysis, empirical analysis provides a constant source of inspiration and discipline for theoretical developments. My research will hopefully advance our understanding of economic activity by providing a framework that explicitly takes into account the fact that most economic interactions are influenced by social relationships among people. This will provide us with policy implications to alleviate the inefficiencies and inequalities that emerge in decentralized networked markets.Researcher(s)
- Promoter: Merlino Luca Paolo
- Fellow: Merlino Luca Paolo
Research team(s)
Project type(s)
- Research Project