This paper characterizes optimal income taxation when individuals respond along both the intensive and extensive margins. Individuals are heterogeneous across two dimensions: specifically, their skill and disutility of participation. Preferences over consumption and work effort can differ with...

In a simple conceptual framework, we organize a multitude of phenomena related to the (mis)prediction of utility. Consequences in terms of distorted choices and lower wellbeing emerge if people have to trade-off between alternatives that are characterized by attributes satisfying extrinsic...

We derive a sufficient statistics optimal tax formula in a general model that incorporates unemployment and endogenous wages, to study the shape of the tax and transfer system at the bottom of the distribution. The sufficient statistics are the macro employment response to taxation and the micro...

One in nine people between the ages of 18 and 64 in the US, and every second foreign-born person in this age bracket, speaks Spanish at home. And whereas around 80 percent of adult immigrants in the US from non-English speaking countries other than Mexico are proficient in English, only about 50...

This paper examines whether the results of the earnings equation developed in the overeducation/required eduation/under-education (ORU) literature are sensitive to whether the usual or reference levels of education are measured using the Realized Matches or Worker Self-Assessment methods. The...

This paper examines the way immigrant earnings are determined in Australia. It uses the overeducation/required education/undereducation (ORU) framework (Hartog, 2000) and a decomposition of the native-born/foreign-born differential in the payoff to schooling developed by Chiswick and Miller...

"A critical period for language learning is often defined as a sharp decline in learning outcomes with age. This study examines the relevance of the critical period to English proficiency among immigrants in the US. It uses microdata from the 2000 US Census, a model of language acquisition from...

"This paper analyzes the effect on earnings of the matching of English language skills to occupational requirements. It uses data from the Occupational Information Network (O*NET) database and a "Realized Matches" procedure to quantify expected levels of English skills in each of over 500...

The payoff to schooling among the foreign born in the US is only around one-half of the payoff for the native born. This paper examines whether this differential is related to the quality of the schooling immigrants acquired abroad. The paper uses the Over-education/ Required...

This paper is concerned with the English language requirements (both level and importance) of occupations in the United States, as measured by the O*NET database. These scores are linked to microdata on employed adult (aged 25 to 64) males, both native born and foreign born, as reported in the...