Essays on Labor Economics

Abstract

This dissertation contains three chapters in labor economics. A common theme is inequalities, which are examined through different lenses and contexts.

In the First Chapter, we set out to explore how the perception of relative position within a peer group may affect future outcomes. We use the Italian public school system as a case study, and exploit panel data comprising nearly one million students from 2013 to 2019. We propose a new strategy to identify the impact of rank while plausibly controlling for ability peer effects, by leveraging grades on class exams to construct the rank, and grades on national standardized tests to control for students' ability. We estimate a large and significant effect of the rank on subsequent academic achievements, although the impact of class value-added is five-fold larger. Furthermore, higher-ranked students self-select into high schools with higher average student achievements. Middle-school enrollment, constrained by residency criteria, is not affected. Finally, harnessing an extensive survey, we identify psychological mechanisms channeling the rank effect.

In the Second Chapter, we use the implementation of a gender board quota in France as an exogenous shock to study how increasing gender diversity on corporate boards impacts gender inequalities within publicly-traded firms. We first show that, after the reform, the average newly appointed male and female board members converge on most characteristics (education, professional experience, foreignness...), although women are significantly more likely to be independent. Female board members are also allocated key committee positions within the board. We then show that an increase in the share of female board members has impacts at the very top: we observe changes in practices that are aligned with better governance, higher likelihood of having a female CEO, and increased gender diversity in the C-suite. No impact on gender gaps is detected beyond the very top of the firms' hierarchy.

In the Third Chapter, I develop a theoretical model to shed more light on the determinants of domestic outsourcing. Over the past decades, this major trend has been associated with a rise in wage inequalities in the labor market across developed countries. I argue that firm expertise should be a notion to take into account when analyzing outsourcing decisions. My simple model delivers predictions that match key empirical facts that have been documented over the past decades.