Sona Badalyan

I am a PhD candidate in Economics at the Center for Economic Research and Graduate Education – Economics Institute (CERGE-EI). During 2023 January-June I visited University of Chicago, invited by Dan Black.  I am interested in the interaction of social safety net programs with labor markets, as well as spillovers and peer effects of those programs. 

CV: access here 

E-mail: sona.badalyan@cerge-ei.cz


References: 

Nikolas Mittag (Associate Professor,CERGE-EI)

E-mail: Nikolas.Mittag@cerge-ei.cz 

Štěpán Jurajda (Full Professor,  CERGE-EI)

 E-mail: Stepan.Jurajda@cerge-ei.cz

 Paolo Zacchia (Assistant Professor, CERGE-EI)

 E-mail: Paolo.Zacchia@cerge-ei.cz 

Working papers

Frictions in replacing workers make worker turnover costly. In this paper I fill in the gap in the interaction of two strands of literature- the one on labor supply effects of retirement reforms and the one on worker substitutability. Using the reform in Germany that scrapped the opportunities to retire before the age 63, I show how the employer and coworker characteristics and the measures of worker substitutability affect the labor supply decisions at an older age. Using the exogenous cohort cutoffs for identification and administrative records of Germany as a data source, I find that the older workers who are more difficult to substitutable internally and externally and who perform high share of tasks that complement automation are more likely to increase their employment in response to the retirement age reform. These results show that the labor supply decision is not only made at the individual level, but is also affected by groups-specific components, typical to the literature of internal labor markets.

We focus on communication among hiring team members and document the existence of discrimination in the disclosure of information about candidates. In particular, we conduct an online experiment with a nationally representative sample of Czech individuals who act as human resource assistants and hiring managers in our online labor market. The main novel feature of our experiment is the monitoring of information flow between human resource assistants and hiring managers. We exogenously manipulate candidates' names to explore the causal effects of their gender and nationality on information that assistants select for managers. Our findings reveal that assistants disclose more information about family and less information about work for female candidates relative to male candidates. An in-depth analysis of the disclosed information suggests that gender stereotypes play an important role in this disclosure discrimination. Furthermore, assistants disclose less information about foreigners overall. This effect appears to be driven by the less attention assistants are willing to devote to the CVs of foreigners, measured by the extra effort to learn more about the candidates. 

Work in Progress

Human capital specificity of establishments and search frictions may lead to costly worker turnover and career advancements. This paper quantifies the establishment adjustment costs upon older workforce retention using the reform in Germany that scrapped the opportunities to retire before the age 63. Using the exogenous cohort cutoffs for identification and administrative records of Germany as a data source, I show that the reform led to a significant increase in employment and retention of affected workers, and find that there are negative effects on hiring and promotions, especially of middle-aged women. These adjustment costs mask substantial heterogeneity across the availability of internal and external substitutes, showing that the longer planning horizon specific to this reform does not eliminate the adjustment costs for establishments because of the frictions associated with worker turnover.


Not in progress