University of Minnesota - Twin CitiesDepartment of Economics Placement Director4-101 Hanson Hall Fatih Guvenen1925 Fourth Street South (612) 625-0767 Minneapolis, Minnesota 55455 guvenen@umn.eduU.S.A. Placement Coordinator

Catherine Bach(612) 625-6353 (612) 625-6859(612) 624-0209 FAX c-bach@umn.edu

Curriculum VitaeFall 2017

SERGIO CRISTIAN SALGADO

Personal DataAddress Contact Information4-101 Hanson Hall Cell: (612) 636-7332 1925 Fourth Street South E-mail: salga010@umn.eduMinneapolis, MN 55455 URL: sergiosalgadoi.wordpress.com

Citizenship: Chile (F-1 Visa)

Major Fields of Concentration

Macroeconomics, Labor Economics, Business Cycles

EducationDegree Field Institution YearPhD Economics University of Minnesota (expected) 2018MA Economics University of Minnesota 2014MA Economics University of Chile 2010BSc Economics and Business University of Santiago of Chile 2005

DissertationTitle: “Technical Change and Entrepreneurship”Dissertation Advisors: Professor Fatih Guvenen and Professor Patrick J. KehoeExpected Completion: Summer 2018

References

Professor Fatih Guvenen (612) 625-0767 Department of Economicsguvenen@umn.edu University of Minnesota

4-101 Hanson HallProfessor Patrick J. Kehoe (612) 624-1978 1925 Fourth Street South

pkehoe@umn.edu Minneapolis, MN 55455

Professor Nicholas Bloom (650) 725-7836 Department of Economicsnbloom@stanford.edu Stanford University

579 Serra MallProfessor Elena Pastorino (650) 725-9935 Stanford, CA 94305-6072

epastori@stanford.edu

Curriculum VitaeSalgado

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Honors and Awards2017 - 2018 Doctoral Dissertation Fellowship, University of Minnesota, Minneapolis, Minnesota2014 Hardy Paper Competition - Second Place, Department of Economics, University of

Minnesota, Minneapolis, Minnesota, joint with Eugenia Gonzalez-Aguado

Teaching Experience2013 - 2014 Head Grader for Principles of Microeconomics, Department of Economics, University of

Minnesota, Minneapolis, Minnesota. 2012 - 2013 Teaching Assistant, Department of Economics, University of Minnesota, Minneapolis,

Minnesota. Led recitation sections for Principles of Microeconomics.2011 Teaching Assistant, University of Chile (PUC), Santiago, Chile. Led recitation section for

PhD level Macroeconomic Theory III.2011 - 2012 Instructor, School of Business, Universidad Santo Tomas, Chile. Taught Macroeconomics

and Econometrics.2008 - 2010 Instructor, University of Santiago, Santiago, Chile. Taught Econometrics and International

Economics.

Research ExperienceFall 2015 - Visiting Scholar, Department of Economics, Stanford University, Stanford, California.Spring 20172015 Research Assistant, Department of Economics, University of Minnesota, Minneapolis,

Minnesota. Research assistant to Patrick Kehoe.Summer 2015 Volunteer Intern, Social Security Administration, Washington, D.C.2014 Research Assistant, Department of Economics, University of Minnesota, Minneapolis,

Minnesota. Research assistant to Fatih Guvenen.2010 - 2012 Research Assistant, Research Department, Central Bank of Chile.2009 - 2010 Research Assistant, Center of Applied Economics, University of Chile.

Papers“Technical Change and Entrepreneurship,” job market paper“Skewed Business Cycles,” with Nicholas Bloom and Fatih Guvenen“Rich Entrepreneurs and Wealth Inequality,” with Luis Díez-Catalán“Does the BIC Estimate and Forecast better than the AIC?” with Carlos Medel, Economic Analysis Review 28 (1) 2013: 47-64.

Work in Progress“The Great Micro Moderation,” with Nicholas Bloom, Fatih Guvenen, Luigi Pistaferri, John Sabelhause, and

Jae Song“Wealth Dynamics of the Super Rich,” with Luis Díez-Catalán and Simone Civale“Product Friction Heterogeneity and the Business Cycle,” with Eugenia González-Aguado

Presentations“Skewed Business Cycles,” presented the World Congress of the Econometric Society, Montreal, Canada, 2015;

CESIfo Conference, Munich, Germany, 2015; SITE Conference, Stanford, California, 2015; the SED AnnualMeeting, Toulouse, France, 2016.

“The Firms of the Super Rich,” presented at the Midwest Macro Conference, Cleveland, Ohio, 2017.

Computer SkillsFortran, MATLAB, STATA, SAS, Python

Curriculum VitaeSalgado

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LanguagesSpanish (native), English (fluent)

Abstracts

“Technical Change and Entrepreneurship,” job market paper

This paper studies the decline in the proportion of entrepreneurs in the US population over recent decades. I provideempirical evidence of the decline of the share of entrepreneurs and observe, importantly, that this decline has beenmore pronounced among college graduates. Then, I build an occupational choice model in which individuals decidewhether to work or to become entrepreneurs depending on their skill level, their assets, and their entrepreneurialability. In this model, the rapid increase of wages to high skilled workers reduces the relative value of becoming anentrepreneur, thereby explaining the decline in the share of entrepreneurs in the population. I find the increase inthe wages of high skill workers accounts for a large fraction of the decline in entrepreneurship experienced by theUS economy.

“Skewed Business Cycles,” with Nicholas Bloom and Fatih Guvenen

This paper studies how the distribution of the growth rate of macro- and microlevel variables changes over thebusiness cycle. At the micro level, we use firm panel data for more than 30 countries to show that skewness isstrongly procyclical, driven by a large left tail of negative growth rates during recessions. At the macro level,analyzing the growth rates of GDP and stock market returns, we find a similar phenomenon of procyclical skewness.These results are robust to different selection criteria, across countries, industries, and measures, suggesting that awidening left tail—and, consequently, a more negative skewness—is a basic stylized fact of business cycles.

“Rich Entrepreneurs and Wealth Inequality,” with Luis Díez-Catalán

Top wealth inequality in the United States has increased dramatically since the 1980s. This paper documents thatpart of this increase relates to the rise of superstar firms. We build a novel owner-firm matched panel dataset usinginformation from the official records of the Securities and Exchange Commission, the Forbes Magazine, andCompustat. Using this data we document that: i) firms at the upper end of the market value distribution aredisproportionately controlled by individuals at the top of the wealth distribution, ii) these individuals invest a largefraction of their net worth in one or two main firms which we interpret as evidence of lack of asset diversification,and iii) the output, employment, and market value shares accounted for by these firms has increased substantiallyduring the last 30 years.

“Wealth Dynamics of the Super-Rich,” with Simone Civale and Luis Díez-Catalán

This paper characterizes the dynamics of wealth at the top of the distribution in the United States. Using data fromthe Forbes Magazine and other publicly available sources, we construct a novel panel data set of the richestindividuals in the United States, covering the period 1982-2016. Using these data we find that: i) the Super-Richexhibit a hump-shaped age profile of wealth which features explosive growth at younger ages, and ii) their wealthgrowth is highly cyclical, with substantial downside risk during recessions. Then, we propose a flexible process thatcaptures the main features of the data.