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Exploitation, Altruism, and Social Welfare: An Economic Exploration

Doepke, Matthias - Institute for the Study of Labor (IZA) - 2013

Child labor is often condemned as a form of exploitation. I explore how the notion of exploitation, as used in everyday … language, can be made precise in economic models of child labor. Exploitation is defined relative to a specific social welfare … distinctions that common usage of the term exploitation allows. I resolve this conflict by introducing a welfare function with …

Persistent link: https://www.econbiz.de/10010668527

Institution Formation and Cooperation with Heterogeneous Agents

Kube, Sebastian; Schaube, Sebastian; … - Institute for the Study of Labor (IZA) - 2014

Driven by an ever-growing number of studies that explore the effectiveness of institutional mechanisms meant to mitigate cooperation problems, recent years have seen an increasing interest in the endogenous implementation of these institutions. In this paper, we test within a unified framework...

Persistent link: https://www.econbiz.de/10010959561

Experimental Labor Markets and Policy Considerations: Incomplete Contracts and Macroeconomic Aspects

Casoria, Fortuna; Riedl, Arno - Institute for the Study of Labor (IZA) - 2012

This survey focuses on experimental labor markets investigating two aspects that deem us important for a better understanding of labor market relations and the consequences for labor market policies. The first part of the survey is dedicated to papers that assess the prevalence of reciprocal...

Persistent link: https://www.econbiz.de/10010884075

Cultural Biases in Migration: Estimating Non-Monetary Migration Costs

Falck, Oliver; Lameli, Alfred; Ruhose, Jens - Institute for the Study of Labor (IZA) - 2015

Ever since Sjaastad (1962), researchers have struggled to quantify the psychic costs of migration. We monetize psychic cost as the wage premium for moving to a culturally different location. We combine administrative social security panel data with a proxy for cultural difference based on...

Persistent link: https://www.econbiz.de/10011212574

Politicians, Governed vs. Non-Governed Interest Groups and Rent Dissipation

Epstein, Gil S.; Mealem, Yosef - Institute for the Study of Labor (IZA) - 2013

Government intervention often gives rise to contests and the government can influence their outcome by choosing their type. We consider a contest with two interest groups: one that is governed by a central planner and one that is not. Rent dissipation is compared under two well-known contest...

Persistent link: https://www.econbiz.de/10011212757

Lotteries vs. All-Pay Auctions in Fair and Biased Contests

Epstein, Gil S.; Mealem, Yosef; Nitzan, Shmuel - Institute for the Study of Labor (IZA) - 2012

The form of contests for a single fixed prize can be determined by a designer who maximizes the contestants' efforts. This paper establishes that, under common knowledge of the two asymmetric contestants' prize valuations, a fair Tullock-type endogenously determined lottery is always superior to...

Persistent link: https://www.econbiz.de/10011271979

The Efficacy and Efforts of Interest Groups in Post Elections Policy Formation

Epstein, Gil S.; Mealem, Yosef; Nitzan, Shmuel - Institute for the Study of Labor (IZA) - 2012

This paper presents a new model of interest groups and policy formation in the legislature. In our setting, the already given party ideological predispositions and power distribution determine the expected policy outcome. Our analysis applies to the case of un-enforced or enforced party...

Persistent link: https://www.econbiz.de/10011271983

Manipulation of Choice Behavior

Manzini, Paola; Mariotti, Marco; Tyson, Christopher J. - Institute for the Study of Labor (IZA) - 2011

We introduce and study the problem of manipulation of choice behavior. In a class of two-stage models of decision making, with the agent's choices determined by three "psychological variables," we imagine that a subset of these variables can be selected by a "manipulator." To what extent does...

Persistent link: https://www.econbiz.de/10009225770

Altruism, Cooperation, and Efficiency: Agricultural Production in Polygynous Households

Akresh, Richard; Chen, Joyce J.; Moore, Charity - Institute for the Study of Labor (IZA) - 2011

Altruism among family members can, in some cases, inhibit cooperation by increasing the utility that players expect to receive in a non-cooperative equilibrium. To test this, we examine agricultural productivity in polygynous households in West Africa. We find that cooperation is greater –...

Persistent link: https://www.econbiz.de/10009416949

Can US Coordination Failure Explain Why Americans Work So Much More than Europeans?

Schiff, Maurice - Institute for the Study of Labor (IZA) - 2014

Prescott (2004) argues that Europeans work much less than Americans because of higher taxes and that they would gain significantly by charging US taxes and working as much as Americans. I argue that the opposite may be true and that Americans work more than Europeans due to a coordination...

Persistent link: https://www.econbiz.de/10010754115

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