Revisiting the effect of household size on consumption over the life-cycle

Although the link between household size and consumption has strong empirical support, there is no consistent way in which demographics are dealt with in standard life-cycle models. We study the relationship between the predictions of the Single Agent model (the standard in the literature) versus a simple model extension (the Demographics model) where deterministic changes in household size and composition affect optimal consumption decisions. We show theoretically that the Demographics model is conceptually preferable to the Single Agent model as it captures economic mechanisms ignored by the latter. However, our quantitative analysis demonstrates that differences in predictions for consumption are negligible across models, when using standard calibration strategies. This suggests that it is largely irrelevant which model specification is used

Wage Cyclicality Revisited: The Role of Hiring Standards

We study the cyclicality of online posted wages at the job level, using a representative dataset for the Chilean economy. Unlike other datasets, ours has wage and requirements for most job ads. We find clear evidence of posted wage procyclicality, in line with matched employer-employee studies. Our results are robust to cyclical mismatch and job upgrading biases, important issues in the literature. We also show that not controlling for requirements leads to the underestimation of the cyclicality of offered wages. Indeed, using the \cite{Gelbach-2016} decomposition, we show that ignoring countercyclical experience and education requirements dampens wage cyclicality estimates

Life-Cycle Consumption: Can Single Agent Models Get it Right?

In the quantitative macro literature, single agent models are heavily used to explain "per-adult equivalent" household data. In this paper, we study differences between consumption predictions from a single agent model and "adult equivalent" consumption predictions from a model where household size evolves deterministically over the life-cycle and affects individual preferences for consumption. Using a theoretical model we prove that, under mild conditions, these predictions are different. In particular, the single household model cannot explain patterns in life-cycle consumption profiles (the so called 'humps'), nor cross sectional inequality in consumption originating from the second model, even after controlling for household size using equivalence scales. Through a quantitative exercise, we then document that differences in predictions can be substantial: total (per-adult equivalent) consumption over the life-cycle can be up to 5% different, depending on the specific parameterization. We find a similar number for total cross sectional inequality

Revisiting the Effect of Household Size on Consumption Over the Life-Cycle

Although the link between household size and consumption has a strong empirical support, there is no consistent way in which demographics are dealt with in standard life-cycle models. We study the relationship between the predictions of the Single Agent model (the standard in the literature) versus a simple model extension where deterministic changes in household size and composition affect optimal consumption decisions. We provide theoretical results comparing both approaches and quantify the differences in predictions across models

Sorting On-line and On-time

Using proprietary data from a Chilean online job board, we find strong, positive assortative matching at the worker-position level, both along observed dimensions and on unobserved characteristics (OLS Mincer residual wages). We also find that this positive assortative matching is robustly procyclical. Since we use information on job applications instead of final matches, we use the generalized deferred-acceptance algorithm to simulate tentative final allocations. Under all considered scenarios for the algorithm, positive assortative matching is preserved from the application stage to the realized matches

Sorting On-line and On-time

Using proprietary data from a Chilean online job board, we find strong, positive assortative matching at the worker-position level, both along observed dimensions and on unobserved characteristics (OLS Mincer residual wages). We also find that this positive assortative matching is robustly procyclical. Since we use information on job applications instead of final matches, we use the generalized deferred-acceptance algorithm to simulate tentative final allocations. Under all considered scenarios for the algorithm, positive assortative matching is preserved from the application stage to the realized matches

Deconstructing Job Search Behavior

We use an unusually rich data from a Chilean job board to document novel facts regarding job search for unemployed and employed seekers. We show how application behavior is influenced by (1) demographics such as gender, age, and marital status, (2) alignment between applicant wage expectations and wage offers, (3) applicant fit into ad requirements such as education, experience, job location and occupation (4) timing variables, including unemployment duration, job tenure (for on-the-job searchers) and business cycle conditions. This empirical evidence can discipline current and future search-theoretical frameworks

Unemployment, participation and worker flows over the life-cycle

We estimate and report life-cycle transition probabilities between employment, unemployment and inactivity for male and female workers using Current Population Survey monthly files. We assess the relative importance of each probability in explaining the life-cycle profiles of par-ticipation and unemployment rates using a novel decomposition method. A key robust finding is that most differences in participation and unemployment over the life-cycle can be attributed to the probability of leaving employment and the probability of transiting from inactivity to unemployment, while transitions from unemployment to employment (the job finding probability) play secondary roles. We conclude that search models that seek to explain life-cycle work patterns should not ignore transitions to and from inactivity

Drosophila Porin/VDAC Affects Mitochondrial Morphology

Voltage-dependent anion channel (VDAC) has been suggested to be a mediator of mitochondrial-dependent cell death induced by Ca2+ overload, oxidative stress and Bax-Bid activation. To confirm this hypothesis in vivo, we generated and characterized Drosophila VDAC (porin) mutants and found that Porin is not required for mitochondrial apoptosis, which is consistent with the previous mouse studies. We also reported a novel physiological role of Porin. Loss of porin resulted in locomotive defects and male sterility. Intriguingly, porin mutants exhibited elongated mitochondria in indirect flight muscle, whereas Porin overexpression produced fragmented mitochondria. Through genetic analysis with the components of mitochondrial fission and fusion, we found that the elongated mitochondria phenotype in porin mutants were suppressed by increased mitochondrial fission, but enhanced by increased mitochondrial fusion. Furthermore, increased mitochondrial fission by Drp1 expression suppressed the flight defects in the porin mutants. Collectively, our study showed that loss of Drosophila Porin results in mitochondrial morphological defects and suggested that the defective mitochondrial function by Porin deficiency affects the mitochondrial remodeling process