Happiness drops when individuals become unemployed. The negative impact of the unemployment shock, however, may differ by cultural background. To test the hypothesis of a 'Teutonic work ethic', this paper takes advantage of Switzerland in its cultural diversity. By comparing different cultural...

We investigate the racial gap in test scores between black and white students in Britain both in levels and differences across the school years. We find that there is an increasing racial gap in test scores between ages 7 and 11, and a decreasing one between ages 11 and 16. Using the richness of...

We looked at risk and ambiguity attitudes among Ethiopian peasants in one of the poorest regions of the world and compared their attitudes to a standard Western university student sample elicited by the same decision task. Strong risk aversion and ambiguity aversion were found with the Ethiopian...

Does higher educational attainment lead to greater participation in self-employment? Available studies agree and disagree on this subject through various explanations. We invoke an empirical example from the experiences of immigrants moving from poor countries to rich countries. Further, we...

A number of recent studies for Latin America show that as the size of the informal economy grows, corruption is less harmful to inequality. We investigate if this relationship is equally compelling for developing countries in Asia where corruption, inequality and shadow economies are...

This paper argues that the level of financial services provision determines the risk management strategies among the poor. The paper estimates the determinants of the household’s use of one, two or all three types of microfinancial services applying ordered probit models and additionally...

We posit that historical resource scarcities played a role in the emergence of gender norms inimical to women that persist to this day. This thesis is supported by our finding that nations’ historical resource endowments, as measured by the historical availability of arable land, are...