Research

Publications

Poverty, Depression and Anxiety: Causal Evidence and Mechanisms. With Gautam Rao, Frank Schilbach and Vikram Patel. Science, 370 (6522), 2020.

Why are people who live in poverty disproportionately affected by mental illness? We review the interdisciplinary evidence of the bi-directional causal relationship between poverty and common mental illnesses -- depression and anxiety -- and the underlying mechanisms. Research shows that mental illness reduces employment and therefore income and that psychological interventions generate economic gains. Similarly, negative economic shocks cause mental illness, and anti-poverty programs, such as cash transfers, improve mental health. A crucial step toward the design of effective policies is to better understand the mechanisms underlying these causal effects. 

Working Papers

Mental Illness Discrimination.  Working Paper (Job Market Paper).
Pre-registration  Press Coverage ('Ideas Made to Matter', MIT Sloan)

I study discrimination against people with symptoms of depression or anxiety, conditions which are very common, socially stigmatized, and linked to lower earnings and employment. In an online experiment, I find that people pay to avoid depressed or anxious coworkers in a simple communication-based problem-solving task—paying as much to avoid them as they do to work with the college-educated. A model of earnings-maximizing statistical discrimination with correct beliefs cannot explain these preferences: depressed or anxious coworkers are equally productive when exogenously assigned. Instead, I find evidence that discrimination is driven by incorrect beliefs about such coworkers as well as a likely incorrect perception that more costly effort is required to help them succeed. My results suggest that correcting beliefs could reduce discrimination. A major motivation for tackling discrimination is often to encourage revelation of mental illness (thereby perhaps improving access to treatment or support); however, I find that people pay to hide mental illness in my setting even when insulated from rejection or any financial consequence of discrimination.

Not Learning from Others. With John Conlon, Malavika Mani, Gautam Rao, and Frank Schilbach. Revised and resubmitted, Econometrica.
Pre-registration  Experimental Scripts 

We provide evidence of a powerful barrier to social learning: people are much less sensitive to information others discover compared to equally-relevant information they discover themselves. In a series of incentivized lab experiments, we ask participants to guess the color composition of balls in an urn after drawing balls with replacement. Participants' guesses are substantially less sensitive to draws made by another player compared to draws made themselves. This result holds when others' signals must be learned through discussion, when they are perfectly communicated by the experimenter, and even when participants see their teammate drawing balls from the urn with their own eyes. We find a crucial role for taking some action to generate one's 'own' information, and rule out distrust, confusion, errors in probabilistic thinking, up-front inattention and imperfect recall as channels.

Learning in the Household. With John Conlon, Malavika Mani, Gautam Rao, and Frank Schilbach.
NBER Working Paper

Do spouses pool useful information and learn from each other when they have incentives to do so? In an experiment with married couples in India, we vary whether individuals discover information themselves or must instead learn via a discussion about what their spouse discovered. Women treat their own and their husband's information the same. In contrast, men respond half as much to information discovered by their wife, even when it is perfectly communicated. When paired with strangers, both men and women heavily discount their partner's information relative to their own. We thus provide evidence of a gender difference in social learning (only) in the household.

Fiscal and Education Spillovers from Charter School Expansion. With Camille Terrier. Conditionally accepted, Journal of Human Resources.

Do charter schools drain resources and high-achieving peers from non-charter schools? We provide new evidence on the fiscal and educational consequences of charter expansion for non-charter students, using a 2011 reform that lifted caps on charter schools for under-performing districts in Massachusetts. We use complementary synthetic control (SC) and differences-in-differences instrumental variables (IV-DiD) estimators. Our results suggest greater charter attendance leaves per-pupil revenue unchanged but increases per-pupil expenditures, hence generating a fiscal stress on traditional public schools. Charter expansion also induces schools to shift expenditure from support services to instruction and salaries, and ultimately increases non-charter students’ achievement in math.

Research in Progress

Discrimination and Employment of the Mentally Ill.

How best can we reintegrate mental illness sufferers into the labor force, especially by reducing discrimination at work, and what are the economic benefits of doing so? I plan to hire depressed and anxious people and others from low-income communities in Chennai, India, to work together on simple manufacturing tasks in a randomized controlled trial. I will measure the effect of employment on mental health and the effects of an anti-stigma intervention on mental health, a theoretically-motivated measure of discrimination, and productivity.