Dissertation Defense: “Essays in Applied Microeconomics”, Thomas Fullagar

Speaker

Thomas Fullagar, PhD Candidate, University of California, Santa Barbara

Biography

My name is Thomas Fullagar (“Full-uh-gar”). I am a PhD candidate in the Economics department at University of California Santa Barbara (UCSB) and I am on the 2024-2025 academic job market.

My research interests are in applied labor economics broadly, with a specific interest in how labor unions affect firms. My job market paper investigates the causal effects of union elections on firm stock prices. In my spare time I enjoy playing soccer, reading, and taking walks on the beach with Mocha.

Title

“Essays in Applied Microeconomics"

Abstract

This dissertation explores how firms respond to changes in labor market institutions and regulatory environments, with a focus on unionization, pay transparency, and pharmaceutical pricing reform. Each chapter provides causal evidence on firm behavior and market outcomes in response to distinct but economically significant policy shifts in the 21st-century U.S. economy.

The first chapter examines the stock market effects of union elections at large, publicly traded firms between 1994 and 2023. Using newly linked data on union elections and firm equity returns, I estimate the short-run effects of election filings and closures using a difference-in-differences design. While filings are associated with small stock price declines, closings yield an offsetting positive response—resulting in a net-zero effect. These findings suggest that investors price in the risk of disruption during the election process but revise expectations once outcomes are known.

The second chapter evaluates the impact of Colorado’s Equal Pay for Equal Work Act, the first U.S. law requiring salary disclosure in nearly all job postings. Using a synthetic control approach and rich administrative data, I show that the policy did not narrow the gender earnings gap among new hires; instead, the gap widened by roughly 15 percent. Correlational evidence suggests the law may have altered job search behavior or bargaining dynamics in ways that unintentionally benefited men relative to women.

The third chapter studies the Inflation Reduction Act’s effects on investment in pharmaceutical R&D. Leveraging a difference-in-differences framework and firm-level financial data, I find that the law reduced R&D spending by 13.8% and increased firm exits. Effects are concentrated among small, early-stage biotech firms and those focused on non-rare diseases—precisely the firms most exposed to the IRA’s pricing provisions. By contrast, biologics-focused firms maintained R&D and valuation. These results align with the structure and timeline of the policy and underscore how regulatory risk can reshape innovation incentives.

Together, these chapters contribute to our understanding of how firms adjust to shifting policy environments, highlighting both the intended and unintended consequences of labor and healthcare reforms.

Event Details

Join us for Thomas’s dissertation defense, presenting his dissertation titled, “Essays in Applied Microeconomics.” To access a copy of the dissertation, you must have an active UCSB NetID and password.