Professor: Vikram Manjunath
Unit: Department of Economics
Number of Students: 1
Language: English only
Research Description
The proposed research combines (market design) theory and (applied microeconomics) empirics. The recent literature following Abdulkadiroğlu et al. (2017) uses insights from market design to inform empirical strategies, particularly in using data from centralized assignment mechanisms. On the other hand, real-world concerns, often identified in empirical analyses, inform market design (See Kominers (2019) for numerous examples). In this project, we will take advantage of such complementarities between empirics and market design theory.
Our research pertains to co-operative education programs. Specifically, we work with the matching platform that the University of Ottawa uses to match students to jobs. Our goal for this research is twofold.
By exploiting certain features of the current matching system, we will evaluate the effectiveness of co-operative education programs. These programs are central to most universities’ strategies for improving students job market outcomes after graduation. We will measure the effects of being matched to a co-op position in terms of future job market outcomes as well as human capital accumulation. The results of this research will contribute to the understanding of the effectiveness of internships and co-operative education. We will use novel techniques that have not previously been used in this domain. At a broader level, our results will help inform postsecondary education policy at universities and even the provincial level.
Based on our analysis of preferences submitted by students and employers since 2016, we will investigate some shortcomings in the current matching process. Specifically, participants seem to respond to information that does not affect their optimal strategy. We intend to develop a behavioral model to rationalize such behavior. As this aspect of the process will be changed soon, we will test whether behavior changes in accordance with this model. This research will be at the intersection of behavioral economics and market design, which is relatively sparse. Understanding how agents deviate from predictions of the standard rational model is crucial to better design of matching systems and mechanisms for allocating resources more generally.
References
Abdulkadiroğlu, Atila, Joshua D. Angrist, Yusuke Narita, and Parag A. Pathak (2017) “Research Design Meets Market Design: Using Centralized Assignment for Impact Evaluation,” Econometrica, Vol. 85, No. 5, pp. 1373–1432.
Kominers, Scott Duke (2019) “Good Markets (Really Do) Make Good Neighbors,” SIGecom Exchanges, p. 12–26.
Key Learning Activities
A. Mid-term project evaluation
The student will prepare a proposal for their term paper. It will be evaluated on the basis of relevance to the project, novelty/creativity, and feasibility to complete the project by the end of the term.
B. Evaluation of final project
The student will give a presentation to the research group at the end of the semester. They will also produce a manuscript.
C. Self-reflection exercise (based on the last 3 specific objectives above)
The student’s presentation to the research group will provide an exercise for their communication skills. They will also be asked to lead discussions during periodic meetings.
During these presentations, the student will be required to outline the limits of the research they are discussing.
The student will be given considerable autonomy to perform their research tasks, while still being mentored as needed. This will provide ample opportunity for the student to exercise academic integrity, responsibility, and accountability.