Mike Zabek | University of Michigan (original) (raw)

Papers by Mike Zabek

Journal of Family and Economic Issues

Women had larger increases in labor force exits than men during the COVID-19 pandemic, and increa... more Women had larger increases in labor force exits than men during the COVID-19 pandemic, and increases were particularly large among women living with children. After controlling for detailed job and demographic characteristics, we find that the pandemic led to significant excess labor force exits among women living with children under age six. We also find evidence of larger increases in exits among lower-earning women living with school-aged children. The presence of children also predicted larger increases in exits during the pandemic among Latina and Black women relative to White women. Overall, we find evidence that pandemic induced disruptions to childcare, including informal care from family and friends, led to additional labor force exits by lower earning women and women of color. JEL Numbers: J16, J70, H31, I14, I18

Economic Commentary (Federal Reserve Bank of Cleveland), 2017

We find post-job-loss earnings recovery is faster for young adults who live near their parents th... more We find post-job-loss earnings recovery is faster for young adults who live near their parents than for young adults who live farther away. This positive effect diminishes gradually as the distance to one's parents increases. Most of the effect is driven by higher wages after job displacement, not by differences in the number of hours worked. The effect is not present for older workers, who may be caring for elderly parents.

Reports and Studies, May 1, 2019

The data comes primarily from the decennial census and ACS as collected by IPUMS at the Universit... more The data comes primarily from the decennial census and ACS as collected by IPUMS at the University of Minnesota (Ruggles et al. (2010)). Data on the impact of trade on individual local labor markets comes from Autor, Dorn and Hanson (2013), and the vital statistics data comes from the NBER. I restrict my sample to prime-aged (16-64 inclusive) people not living in group quarters (barracks and dorms). I focus on workers who receive market wages by excluding unpaid family workers and workers who did not work for pay last year. Generally, I aggregate these data up to the Commuting Zone (Tolbert and Sizer (1996)) level and perform my analyses at this level, except in some cases where I focused on states to better match Vital Statistics and migration data.

These people have made my research possible and my time here much more enjoyable. I am grateful t... more These people have made my research possible and my time here much more enjoyable. I am grateful that they put effort into improving my time at the university. I also am grateful to my former academic mentors. These include

Young adults, aged 25 to 35, who live close to their parents experience stronger earnings recover... more Young adults, aged 25 to 35, who live close to their parents experience stronger earnings recoveries after a job displacement than those who live farther away. This result is robust to a variety of controls and a reweighting exercise that account for potential differences between workers by location. The effect of parental proximity diminishes gradually with distance to one’s parents and is driven by post-displacement wages rather than labor supply. We find some evidence that parents’ job networks may help adult children to find local jobs. At older ages, living near one’s parents appears to have no impact. JEL codes: J61, J64, R23.

As the economy of the United States continues to rebound from the Great Recession, the well-being... more As the economy of the United States continues to rebound from the Great Recession, the well-being of households and consumers provides important information about the scope and pace of the economic recovery. In order to monitor the financial and economic status of American consumers, the Federal Reserve Board began conducting the Survey of Household Economics and Decision making in 2013 and conducted the survey for a second time in October 2014. The findings from the October 2014 survey are covered in this report. Topics examined in the survey include the financial health of individuals on a number of levels, such as overall well-being, housing, economic fragility, savings and spending, access to credit, education and student loans, and retirement planning.

I analyze two stylized facts about migration in the United States: First, there are large differe... more I analyze two stylized facts about migration in the United States: First, there are large differences in the proportion of residents born locally across different areas. Second, even in areas with large increases in population, a nearly constant share of people live in their birthplaces. I develop an otherwise standard Rosen (1979) and Roback (1982) model of spatial equilibrium that matches these facts. The model implies that, after an equal sized shock, fewer residents will leave (or enter) areas where there are more residents born locally. Since migration responses tend to equalize welfare across areas, local welfare will change by more after shocks to areas with more residents born locally. Subsidies to these areas will be particularly effective, however, because they cause less spatial misallocation. Instrumental variables regressions support these results.

Finance and Economics Discussion Series, 2021

In this paper, we study declines in women’s labor force participation by race and ethnicity as we... more In this paper, we study declines in women’s labor force participation by race and ethnicity as well as the presence of children. We find that increases in labor force exits were larger for Black women, Latinas, and women living with children. In particular, we find larger increases in pandemic-era labor force exits among women living with children under age 6 and among lower-earning women living with school-age children after controlling for detailed job and demographic characteristics. Latinas and Black women also had larger increases in labor force exits during the pandemic relative to White women. Differences in the presence of children and household structure explain one-quarter of the excess labor force exits among women of color.

Economic Commentary (Federal Reserve Bank of Cleveland), 2018

We have previously shown that young adults who live near their parents experience faster earnings... more We have previously shown that young adults who live near their parents experience faster earnings recoveries after a job loss than young adults who live farther from their parents. In this analysis, we present evidence that demonstrates the relationship is causal; that is, there is something about living close to one’s parents that enables one to find another job that pays as well as the one lost. We also explore what type of parental help might be driving the relationship and find that it is possibly the provision of childcare and access to job networks, but likely not help with housing expenses.

Working paper (Federal Reserve Bank of Cleveland), 2017

The earnings of young adults who live in the same neighborhoods as their parents completely recov... more The earnings of young adults who live in the same neighborhoods as their parents completely recover after a job displacement, unlike the earnings of young adults who live farther away, which permanently decline. Nearby workers appear to benefit from help with childcare since grandmothers are less likely to be employed after their child's job displacement and since the earnings benefits are concentrated among young adults who have children. The result also suggests that parental employment networks improve earnings. Differences in job search durations, transfers of housing services, and geographic mobility, however, are too small to explain the result.

Inequality in U.S. housing prices and rents both declined in the mid-20th century, even as home-o... more Inequality in U.S. housing prices and rents both declined in the mid-20th century, even as home-ownership rates rose. Subsequently, housing-price inequality has risen to preWar levels, while rent inequality has risen less. Combining both measures, we see inequality in housing consumption equivalents mirroring patterns in income across both space and time, according to an income elasticity of housing demand just below one. These patterns occur mainly within cities, and are not explained by observed changes in dwelling characteristics or locations. Instead, recent increases in housing inequality are driven most by changes in the relative value of locations, seen especially through land.

Finance and Economics Discussion Series, 2019

If someone lives in an economically depressed place, they were probably born there. The presence ... more If someone lives in an economically depressed place, they were probably born there. The presence of people with local ties-a preference to live in their birthplace-leads to smaller migration responses. Smaller migration responses to wage declines lead to lower real incomes and make real incomes more sensitive to subsequent demand shocks, a form of hysteresis. Local ties can persist for generations. Place-based policies, like tax subsidies, targeting depressed places cause smaller distortions since few people want to move to depressed places. Place-based policies targeting productive places increase aggregate productivity, since they lead to more migration.

This paper presents results of the 2009 Survey of Consumer Payment Choice (SCPC), along with revi... more This paper presents results of the 2009 Survey of Consumer Payment Choice (SCPC), along with revised 2008 SCPC data. In 2009, the average U.S. consumer held 5.0 of the nine payment instruments available, including cash, and used 3.8 of them during a typical month. Between the 2008 and 2009 surveys, a period that includes the trough of the latest recession, consumers significantly increased their use of cash and close substitutes for cash, such as money orders and prepaid cards. At the same time, consumers reduced their use of credit cards and (to a lesser extent) debit cards, as well as payments made using a bank account number. Weaker economic conditions, new government regulations, and bank pricing of payment card services all likely contributed to the shift back toward cash. However, it is difficult to determine how much each of these factors contributed, and whether the shift is transitory or permanent, without more data and research on consumer payment choice. In 2009, one in three consumers had a prepaid card and nearly as many had a nonbank payment account online, while 3 percent made a mobile payment. By focusing on payments by consumers only, the SCPC complements the recent 2010 Federal Reserve Payment Study, which describes the entire noncash payments economy.

Journal of Family and Economic Issues

Women had larger increases in labor force exits than men during the COVID-19 pandemic, and increa... more Women had larger increases in labor force exits than men during the COVID-19 pandemic, and increases were particularly large among women living with children. After controlling for detailed job and demographic characteristics, we find that the pandemic led to significant excess labor force exits among women living with children under age six. We also find evidence of larger increases in exits among lower-earning women living with school-aged children. The presence of children also predicted larger increases in exits during the pandemic among Latina and Black women relative to White women. Overall, we find evidence that pandemic induced disruptions to childcare, including informal care from family and friends, led to additional labor force exits by lower earning women and women of color. JEL Numbers: J16, J70, H31, I14, I18

Economic Commentary (Federal Reserve Bank of Cleveland), 2017

We find post-job-loss earnings recovery is faster for young adults who live near their parents th... more We find post-job-loss earnings recovery is faster for young adults who live near their parents than for young adults who live farther away. This positive effect diminishes gradually as the distance to one's parents increases. Most of the effect is driven by higher wages after job displacement, not by differences in the number of hours worked. The effect is not present for older workers, who may be caring for elderly parents.

Reports and Studies, May 1, 2019

The data comes primarily from the decennial census and ACS as collected by IPUMS at the Universit... more The data comes primarily from the decennial census and ACS as collected by IPUMS at the University of Minnesota (Ruggles et al. (2010)). Data on the impact of trade on individual local labor markets comes from Autor, Dorn and Hanson (2013), and the vital statistics data comes from the NBER. I restrict my sample to prime-aged (16-64 inclusive) people not living in group quarters (barracks and dorms). I focus on workers who receive market wages by excluding unpaid family workers and workers who did not work for pay last year. Generally, I aggregate these data up to the Commuting Zone (Tolbert and Sizer (1996)) level and perform my analyses at this level, except in some cases where I focused on states to better match Vital Statistics and migration data.

These people have made my research possible and my time here much more enjoyable. I am grateful t... more These people have made my research possible and my time here much more enjoyable. I am grateful that they put effort into improving my time at the university. I also am grateful to my former academic mentors. These include

Young adults, aged 25 to 35, who live close to their parents experience stronger earnings recover... more Young adults, aged 25 to 35, who live close to their parents experience stronger earnings recoveries after a job displacement than those who live farther away. This result is robust to a variety of controls and a reweighting exercise that account for potential differences between workers by location. The effect of parental proximity diminishes gradually with distance to one’s parents and is driven by post-displacement wages rather than labor supply. We find some evidence that parents’ job networks may help adult children to find local jobs. At older ages, living near one’s parents appears to have no impact. JEL codes: J61, J64, R23.

As the economy of the United States continues to rebound from the Great Recession, the well-being... more As the economy of the United States continues to rebound from the Great Recession, the well-being of households and consumers provides important information about the scope and pace of the economic recovery. In order to monitor the financial and economic status of American consumers, the Federal Reserve Board began conducting the Survey of Household Economics and Decision making in 2013 and conducted the survey for a second time in October 2014. The findings from the October 2014 survey are covered in this report. Topics examined in the survey include the financial health of individuals on a number of levels, such as overall well-being, housing, economic fragility, savings and spending, access to credit, education and student loans, and retirement planning.

I analyze two stylized facts about migration in the United States: First, there are large differe... more I analyze two stylized facts about migration in the United States: First, there are large differences in the proportion of residents born locally across different areas. Second, even in areas with large increases in population, a nearly constant share of people live in their birthplaces. I develop an otherwise standard Rosen (1979) and Roback (1982) model of spatial equilibrium that matches these facts. The model implies that, after an equal sized shock, fewer residents will leave (or enter) areas where there are more residents born locally. Since migration responses tend to equalize welfare across areas, local welfare will change by more after shocks to areas with more residents born locally. Subsidies to these areas will be particularly effective, however, because they cause less spatial misallocation. Instrumental variables regressions support these results.

Finance and Economics Discussion Series, 2021

In this paper, we study declines in women’s labor force participation by race and ethnicity as we... more In this paper, we study declines in women’s labor force participation by race and ethnicity as well as the presence of children. We find that increases in labor force exits were larger for Black women, Latinas, and women living with children. In particular, we find larger increases in pandemic-era labor force exits among women living with children under age 6 and among lower-earning women living with school-age children after controlling for detailed job and demographic characteristics. Latinas and Black women also had larger increases in labor force exits during the pandemic relative to White women. Differences in the presence of children and household structure explain one-quarter of the excess labor force exits among women of color.

Economic Commentary (Federal Reserve Bank of Cleveland), 2018

We have previously shown that young adults who live near their parents experience faster earnings... more We have previously shown that young adults who live near their parents experience faster earnings recoveries after a job loss than young adults who live farther from their parents. In this analysis, we present evidence that demonstrates the relationship is causal; that is, there is something about living close to one’s parents that enables one to find another job that pays as well as the one lost. We also explore what type of parental help might be driving the relationship and find that it is possibly the provision of childcare and access to job networks, but likely not help with housing expenses.

Working paper (Federal Reserve Bank of Cleveland), 2017

The earnings of young adults who live in the same neighborhoods as their parents completely recov... more The earnings of young adults who live in the same neighborhoods as their parents completely recover after a job displacement, unlike the earnings of young adults who live farther away, which permanently decline. Nearby workers appear to benefit from help with childcare since grandmothers are less likely to be employed after their child's job displacement and since the earnings benefits are concentrated among young adults who have children. The result also suggests that parental employment networks improve earnings. Differences in job search durations, transfers of housing services, and geographic mobility, however, are too small to explain the result.

Inequality in U.S. housing prices and rents both declined in the mid-20th century, even as home-o... more Inequality in U.S. housing prices and rents both declined in the mid-20th century, even as home-ownership rates rose. Subsequently, housing-price inequality has risen to preWar levels, while rent inequality has risen less. Combining both measures, we see inequality in housing consumption equivalents mirroring patterns in income across both space and time, according to an income elasticity of housing demand just below one. These patterns occur mainly within cities, and are not explained by observed changes in dwelling characteristics or locations. Instead, recent increases in housing inequality are driven most by changes in the relative value of locations, seen especially through land.

Finance and Economics Discussion Series, 2019

If someone lives in an economically depressed place, they were probably born there. The presence ... more If someone lives in an economically depressed place, they were probably born there. The presence of people with local ties-a preference to live in their birthplace-leads to smaller migration responses. Smaller migration responses to wage declines lead to lower real incomes and make real incomes more sensitive to subsequent demand shocks, a form of hysteresis. Local ties can persist for generations. Place-based policies, like tax subsidies, targeting depressed places cause smaller distortions since few people want to move to depressed places. Place-based policies targeting productive places increase aggregate productivity, since they lead to more migration.

This paper presents results of the 2009 Survey of Consumer Payment Choice (SCPC), along with revi... more This paper presents results of the 2009 Survey of Consumer Payment Choice (SCPC), along with revised 2008 SCPC data. In 2009, the average U.S. consumer held 5.0 of the nine payment instruments available, including cash, and used 3.8 of them during a typical month. Between the 2008 and 2009 surveys, a period that includes the trough of the latest recession, consumers significantly increased their use of cash and close substitutes for cash, such as money orders and prepaid cards. At the same time, consumers reduced their use of credit cards and (to a lesser extent) debit cards, as well as payments made using a bank account number. Weaker economic conditions, new government regulations, and bank pricing of payment card services all likely contributed to the shift back toward cash. However, it is difficult to determine how much each of these factors contributed, and whether the shift is transitory or permanent, without more data and research on consumer payment choice. In 2009, one in three consumers had a prepaid card and nearly as many had a nonbank payment account online, while 3 percent made a mobile payment. By focusing on payments by consumers only, the SCPC complements the recent 2010 Federal Reserve Payment Study, which describes the entire noncash payments economy.