Yotam Margalit specializes in the study of political economy. His research centers on several strands of work: (i) The political economy of globalization, particularly immigration and international trade; (ii) The sources of individual preferences on economic policy; (iv) The political repercussions of economic shocks; (iii) The drivers of populism and democratic backsliding;

He has also conducted applied research on labor market policy, focusing on issues such as occupational choice and intergenerational income mobility, evaluation of worker retraining programs, the design of flexible employment arrangements and labor force participation of older adults.

His work has appeared in leading journals, including the American Political Science Review, the American Journal of Political Science, the Journal of Politics, International Organization, the Journal of Economic Perspectives and The Proceedings of the National Academy of Science.