This paper highlights the critical role that demand-shock and policy-shock induced finite changes play for the unconventional employment consequences of such shocks at a general equilibrium of a multi-sector competitive economy. A labour market reform that lowers the institutional costs of...

We hypothesize that broad contact, involving brief interactions with multiple outgroup members, and deep contact, meaning longer interactions with a single outgroup member, play distinct roles in shaping intergroup relations. We set up a factory in India and recruited Hindu and Muslim men to...

Online ratings play an important role in many markets. However, how fast they can reveal seller types remains unclear. To study this question, we propose a new model in which a buyer learns about the seller’s type from previous ratings and her own experience and rates the seller if she learns...

This paper establishes a new fact about immigration policies: legalization has long-term effects on formal employment of undocumented immigrants and their assimilation. We exploit the broad amnesty enacted in Italy in 2002 together with rich survey data collected in 2011 on a representative...

Digitization has importantly expanded the scope for reusing music in movies, a process known as music synchronization. We use panel data on Netflix and Shazam to estimate the causal effect of music synchronization on the discovery of reused songs. Our results show that songs are substantially...

Due to markup distortions, in international trade models with monopolistic competition and heterogeneous firms the market equilibrium is inefficient unless demand exhibits constant elasticity of substitution. When it does not, global welfare maximization generally requires policy intervention...

We propose a theory of protest dynamics with heterogeneous protest technology and intensity. The ability to mobilize online reduces the likelihood of coordination failures at both the extensive (engagement) and intensive (violence) margins. Social media can initially help launch massive...

We study beliefs about wealth inequality and preferences for wealth redistribution. For this, we conduct a large-scale online survey in Germany. First, we analyze how well participants are informed about the German wealth distribution and their position in it. Second, we investigate how...

While the global economy continues to grow, ecosystem services tend to stagnate or decline. Economic theory has shown how such shifts in relative scarcities can be reflected in project appraisal and environmental-economic accounting, but empirical evidence has been sparse to put theory into...

We assess the impact of discrimination on Black individuals’ job networks across the U.S. using a two-stage field experiment with 400+ fictitious LinkedIn profiles. In the first stage, we vary race via AI-generated images only and find that Black profiles’ connection requests are 13 percent...