Previously, Modestino was a senior economist at the Federal Reserve Bank of Boston where she lead numerous research projects on regional economic and policy issues for the New England Public Policy Center. In that role, she frequently advised policymakers and business leaders and testified on key pieces of legislation related to labor market policies. Her work has appeared in journals such as Regional Science and Urban Economics, Journal of Human Resources, and Health Affairs and has been presented at the annual meetings of the American Economic Association.