Job Market

I am on the 2023-2024 economics job market.

My research fields are macroeconomics and public finance. I am interested in studying the real effects of fiscal and monetary policy, with a particular focus on labor market dynamics.

You can download my CV by clicking here.

Contact

Littauer Center 307
1805 Cambridge St
Cambridge MA 02138
mdroste@fas.harvard.edu

References

Xavier Gabaix (xgabaix@fas.harvard.edu)
Gabriel Chodorow-Reich (chodorowreich@fas.harvard.edu)
Ludwig Straub (ludwigstraub@g.harvard.edu)

Job Market Paper

Title: Strategic Complementarities in Posted Wages
Draft: Click here for the updated draft (PDF)
Abstract: Imperfectly competitive labor markets often exhibit strategic complementarity in wages: wage-setting decisions depend positively on other agents’ wage-setting decisions. How important is this effect for macroeconomic dynamics? I develop a reduced-form empirical design to estimate the magnitude of strategic complementarity in posted wages using the near-universe of online job postings from 2010 to 2023. My design leverages spatial variation in exposure to national wage-setters, firms that do not vary posted wages across local labor markets, as a source of differential exposure to aggregate shocks. My preferred estimates indicate a modest degree of complementarity in posted wages: posted wages increase by 0.10% in response to a 1% increase in competitors’ wages. I assess the quantitative relevance of these results through the lens of a New Keynesian model with monopsonistic labor markets. Wage complementarities are a powerful source of real rigidity in this model; however, my empirical evidence suggests the effect of this channel is limited. My results suggest that strategic complementarity in wages is weaker than is often assumed, and provide an important ``portable moment’’ to discipline and evaluate models with imperfectly competitive labor markets.