Standard economic models which focus on pecuniary payoffs cannot explain why there arehighly able individuals who choose careers with low pecuniary returns. Therefore, financialincentives are unlikely to be effective in influencing career choices of these individuals.Based on Akerlof and Kranton...

When treatment effects of active labour market programmes are heterogeneous in anobservable way across the population, the allocation of the unemployed into differentprogrammes becomes a particularly important issue. In this paper, we present a statisticalmodel designed to improve the present...