In the laboratory experiment reported in this paper we explore how evolving institutions and social norms, which we label 'culture', change individuals' preferences and behaviour in mainland China. From 1949 China experienced dramatic changes in its socio-economic institutions. These began with...

In the past 20 years the average real earnings of Chinese urban male workers have increased by 350 per cent. Accompanying this unprecedented growth is a considerable increase in earnings inequality. Between 1988 and 2007 the variance of log earnings increased from 0.27 to 0.48, a 78 per cent...

Over the last two decades, trade union membership in Central and Eastern Europe has been in continuous decline and there is a common perception that trade unions in the region are weak. However, little is known about the actual relevance of trade unions for individual workers in the...

Can a policy intervention in the stressful first year after a birth affect marital stability? We examine this question using a large expansion in maternity benefits in 1982 in the Baltic countries of Estonia, Latvia and Lithuania. The program provided partially paid leave until the child's first...

Small start-up firms are the engine of job creation in early transition and yet little is known about the characteristics of this new sector. We seek to identify patterns of job growth in this sector in terms of niches left from central planning and ask about differences in job creation across...

The use of informal job search method is prevalent in many countries. There is, however, no consensus in the literature on whether it actually matters for wages, and if it does, what are the underlying mechanisms. We empirically examine these issues specifically for rural migrants in urban...

We explore data from all transition economies over nearly two decades, providing insights on the mechanisms behind labor force reallocation. We show that worker flows between jobs in different industries are rare relative to the demographic flows of youth entry and elderly exit. The same applies...

We provide evidence that a history of democracy at the local level is associated with contemporary democracy at the national level. Auxiliary estimates show that a tradition of local democracy is also associated with attitudes that favor democracy, with better quality institutions, and higher...

We study the effect of exposure to communism (EC), a political-economic regime based on collectivist planning, on preferences for family supports, which we refer to as 'informal family insurance'. We exploit both cross-country and cohort variation in EC in a large sample of Central and Eastern...

This paper examines major forces that have decoupled economic and business prosperity from social prosperity and explores how recoupling can be promoted. Economists have specified well-known conditions under which free market enterprise with shareholder value maximization is efficient. These...