How do customer loyalty programs create switching costs? We estimate the demand effects of tier levels within a frequent flier program by exploiting discrete tier thresholds. We have two main results. First, members increase demand to reach a higher tier level just before the end of the calendar...

This paper uses data from the German Socio-economic Panel Study to examine the relationship between psychological traits, in particular personality, and the formation and dissolution of marital and cohabiting partnerships. Changing patterns of selection into and out of relationships indicate...

Despite the relatively extensive research on pay levels and the consequences of income disparities, little is known about which reference groups people choose for comparative evaluation of personal income and why different selection patterns emerge. The aim of this paper is to dig deeper for...

This paper studies the effect of parenthood timing on future wages. Using data from the German Socio-Economic Panel (SOEP), we employ an instrumental variable approach to identify the causal effect of delaying parenthood on wages of mothers and fathers. Consistent with previous studies, we...