Theoretically, indivisible investments together with financial frictions can lower development, generate poverty traps, and lead agents to become risk-loving. Using experimental cash grants involving a choice between a safer, low payoff and a riskier, large payoff lottery, we find that 27...

Child marriage remains common even where female schooling and employment opportunities have grown. We introduce a signaling model in which bride type is imperfectly observed but preferred types have lower returns to delaying marriage. We show that in this environment the market might pool on...

Despite decades of research on heuristics and biases, empirical evidence on the effect of large incentives - as present in relevant economic decisions - on cognitive biases is scant. This paper tests the effect of incentives on four widely documented biases: base rate neglect, anchoring, failure...

We study the role of diversity and performance in the entrepreneurial teams. We exploit a unique dataset of MBA students who participated in a required course to propose and start a real micro-business that allows us to examine horizontal diversity (i.e., within the team) as well as vertical...

Because successful human capital interventions often fail to scale or replicate, public investment decisions require understanding how program size, context, and implementation shape program effects. This paper uses two new randomized controlled trials of summer youth employment programs in...