Working Papers

We study the formation of wages in a frictional search market where firms can choose either to bargain with workers or post non-negotiable wage offers.

Market design seeks to translate economic theory and analysis into practical solutions to real-world problems.

In standard economic theory, information helps agents optimize. But providing agents with information about the benefits of an action often fails to encourage that action.

Why do insurers choose to exclude medical providers, and when would this be socially desirable? We examine network design from the perspective of a profit-maximizing insurer and a social planner to evaluate the welfare effects of narrow networks and restrictions on their use.

A broadly accepted view contends that the 2007-09 financial crisis in the U.S. was caused by an expansion in the supply of credit to subprime borrowers during the 2001-2006 credit boom, leading to the spike in defaults and foreclosures that sparked the crisis.

We revisit the long-standing question whether there is a relation between animal welfare and human ethics. Therefore, we elicit concern for animal welfare in an incentivized, direct, and real setup: Subjects choose between intensive farming versus organic living conditions for a hen.

This paper shows how women’s relatively higher career cost can explain why in most of the developed countries women go to college at a higher rate than men and earn less on average.

We study the effect of elementary school teachers' beliefs about gender roles on student achievement. We exploit a natural experiment where teachers are prevented from self-selecting into schools, and conditional on school, students are allocated to teachers randomly.

We provide a common set of life-cycle earnings statistics based on administrative data from the United States, Canada, Denmark and Sweden. We find three qualitative patterns, which are common across countries. First, top-earnings inequality increases over the working lifetime.

One of the most important decisions a student can make during the course of his or her college career is the choice of major.