Research background

Research

Research Interests

My research lies at the intersection of Industrial Organization, Labor Economics, and Transportation Economics. I use both structural estimation techniques and causal inference methods to explore market dynamics, policy implications, and economic behavior in these fields.

Current Projects

In It for the Long Haul: Occupational Choice for Blue-Collar Workers

Working Paper

In 2021 the American Trucking Association claimed the driver shortage reached about 80,000 drivers and predicted a shortage of 160,000 drivers by 2030. This perceived driver shortage is a significant concern for both policymakers and firms. One potential policy was announced in the 2021 Infrastructure bill that authorized a trial program to allow 18–20-year-olds to drive commercial vehicles. In this paper, I use a Discrete Choice Mixed Logit model to estimate the impact of different policies from varied stakeholders to improve truck driver supply. These policies are wage increases, education cost reductions, and the a policy of opening truck driving to 18–20-year-olds. To estimate the model I use a control function approach to deal with endogeneity in wages and training costs. I use four data sets, the Survey of Consumer Finance March Supplement (ASEC), for individual and market share data. State-specific occupational wage data was sourced from the Occupational Employment Wage Survey (OEWS), Work setting variables were sourced from O*Net, and educational costs were sourced from the Integrated Postsecondary Education Data System (IPEDS). Results show that higher wages, reduced training costs, and including 18-20-year-olds increase the number of truck drivers. The largest potential increases come from adding 18–20-year-olds into the market, increasing trucking employment by about 46,481 new drivers nationally. JEL Codes: L91, J24, J44

Truck Driving Driver Shortage Mixed Logit
Download PDF

Scrap and Grab: Should Sweden introduce a vehicle scrappage subsidy?

In Progress
With Chandra Krishnamurthy and Rob Hart

The Swedish car fleet is currently undergoing a major transformation from Internal Combustion-powered vehicles to electric and plug-in hybrid vehicles. To accomplish this, the Swedish Government has implemented two policies: the first is a feebate scheme to increase the sales of new Battery electric (BEV) and plug-in vehicles (PHEVs) and reduce the sale of new ICE vehicles; the second, more recent one, is a scrappage subsidy program that subsidizes scrappage of older ICE cars conditional on purchase of a BEV--used or new--in conjunction with the scrap. We deploy a discrete choice model to estimate the effect of these policies on both the used and new car markets. Since most cars in circulation in Sweden are not `new', the used car market is an important driver in any greening of the Swedish vehicle fleet, especially with the second policy, scrappage subsidy, explicitly targeting older used cars.

Our main objective in this paper is to construct an equilibrium model of new and used cars for Sweden, using administrative data on the universe of car registrations, mandatory vehicle inspection data (which yield mileage data), allied with matched individual and household characteristics of all vehicle owners. The demand side consists of a model of new and used car purchase and used car sale at the household level, and a supply side which, for used cars, is completely inelastic and for new cars, is of the Bertrand competition for differentiated products. An automobile is modelled as an aggregate entity at the age class-fuel type-body-style-manufacturer level, yielding between 100 and 400 models.

The model we set up accounts for consumers decision to acquire both new and used vehicles as well as sell currently-owned vehicles. We accomplish this by modeling the full suite of consumer decisions on whether to sell and/or purchase a new car as well as profit-maximizing behavior on behalf of firms, via an imperfectly competitive new car manufacturers. We accomplish this by modeling the different decisions as discrete events (which we call ``bundles'') that include which car to acquire - including no car at all- and what do with an existing vehicle. We compute the impact of three classes of counterfactual scenarios relating to the two policies, a subsidy unpaired to the purchase of a green vehicle, a subsidy on green vehicles, and the paired subsidy and scrappage scheme. Within this set of policies we also consider gradations in payment, as well as policies targeting households most likely to take advantage of the policy and minimize additionality. Our estimation, which is ongoing, will use administrative data on the entire universe of registered cars (new and old) and mandatory vehicle inspection (which provides vehicle mileage data), along with individual and household characteristics of the owners of all private vehicles.

Transportation Economics Industrial Organization Environmental Economics

The Safety-Cost Tradeoff: Analyzing Welfare Implications of Trucking Industry Entry Regulation

In Progress

Sole proprietorship is a common practice in trucking. It is listed as one potential explanation why a truck driver shortage exists, and has major safety implications for other drivers. There are relatively low costs of sole proprietorship in the industry. This costs may be too low - drivers are too easily licensed and given the risks they pose to others higher barriers may be necessary. There is a clear tradeff between more drivers implying lower transportation costs and fewer drivers implying more safety. In this paper using Motor Carrier Management System (MCMIS) census I document the current trends in the United States regarding entry and exit of carriers in the US transportation market. I then relate the impact of new drivers on freight prices and highway safety in order to estimate status quo welfare for the US and welfare under various counterfactuals.

Industrial Organization Welfare Firm Dynamicse

Work in Progress

  • Value of Flower Class Corvettes during the Battle of the Atlantic

    A side project, looking at the impact of corvette type vessels in the Battle of the Atlantic during the Second World War.

  • Congestion as a mechanism to reduce CO2 output.

    Analyzing the environmental externalities associated with congestions. And the tradeoff between lower cost of driving and increased carbon emissions.

Levi Soborowicz

Levi Soborowicz

Postdoctoral Researcher in Economics

Environmental Economics Group

Economics Department

Swedish University of Agricultural Sciences

Office D342 Ulls Hus

Ulls väg 27

756 51 Ultuna

Uppsala, Sweden

Research Expertise
Industrial Organization
Market structures, Demand Estimation, and Policy Counterfactuals
Transportation Economics
Trucking markets, Maritime Transport, Vehicles
Labor Economics
Occupational Choice, Wage Determination
Environmental Economics
Policy Evaluation, Carbon Emissions