This paper provides the first real-world evidence of Giffen behavior, i.e., upward sloping demand. Subsidizing the prices of dietary staples for extremely poor households in two provinces of China, we find strong evidence of Giffen behavior for rice in Hunan, and weaker evidence for wheat in...

The fear and hatred of others who are different has economic consequences because such feelings are likely to translate into discrimination in labor, credit, housing, and other markets. The implications range from earnings inequality to intergenerational mobility. Using German data from various...

Over the last 10 years, a variety of analysts have blamed high unemployment and stagnant economic growth in Europe on inflexible labor markets and pointed to the US as a more flexible economy, due to its less regulated labor markets and less generous social protection programs. This paper...

Much has been said about the stylized fact that the economically successful are not only wealthier but also healthier than the less affluent. There is little doubt about the existence of this socio-economic gradient in health, but there remains a vivid debate about its source. In this paper, we...

We measure the impact of individuals' looks on life satisfaction/happiness. Using five data sets, from the U.S., Canada, the U.K., and Germany, we construct beauty measures in different ways that allow placing lower bounds on the effects of beauty. Beauty raises happiness: A one...

This paper presents new evidence linking trust and subjective well-being, based primarily on data from the Gallup World Poll and cycle 17 of the Canadian General Social Survey (GSS17). Because several of the general explanations for subjective well-being examined here show large and significant...

In The Bell Curve, Herrnstein and Murray demonstrate that a mother's score on the Armed Forces Qualification Test is a powerful predictor of her child's score on a cognitive achievement test. We replicate this finding. However, even after controlling for maternal scores, there are significant...

Among the most important changes brought about by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) is the imposition of time limits. In this paper, we analyze a simple model in which a potential welfare recipient chooses how to allocate her time-limited...

This paper examines whether participation in religious or other social organizations can help offset the negative effects of growing up in a disadvantaged environment. Using the National Survey of Families and Households, we collect measures of disadvantage as well as parental involvement with...

This paper presents a new framework for analyzing inequality that moves beyond the anonymity postulate. We estimate the determinants of sectoral choice and the joint distributions of outcomes across sectors. We determine which components of realized earnings variability are due to uncertainty...