Are fertility responses to local unemployment homogenous across sub-demographic groups? This paper investigates how changes in local unemployment rates affect household fertility decisions in England while taking sub-demographic differences into account. Recognizing that labor market status is a...

We consider taxation by a utilitarian government in the presence of heterogeneous locations within a country. We show that a utilitarian government never equalizes after-tax incomes, even when it can impose group-specific lump-sum taxes. If migration is impossible, a utilitarian government may...

Using panel data for 78 countries of origin we examine the impact of student flows to the United States on subsequent migration there over the period 1971-2001. What we find is that the stock of foreign students is an important predictor of subsequent migration. This holds true whether or not...

While the effect of social security systems on retirement decisions has received much attention, the impact of these systems on individuals' incentives to invest in their human capital has not been analyzed. We integrate human capital investment and retirement decisions in a simple analytical...

We study the returns to political office using data from Finnish parliamentary elections in 1970-2007 and municipal elections in 1996-2008. The discontinuity of electoral outcomes in individual candidate votes allows us to estimate the causal effect of being elected on subsequent income. Getting...

We present a theory on migration of dual-earner couples, and test it in the context of international migration. Our model predicts that the probability that a couple emigrates increases in the earnings of the primary earner. The effect of the earnings of the secondary earner may go either way....

Outsourcing public provision of services tends to lower labor intensity and increase its efficiency. Costs are usually lower, but quality problems can affect services like health care and residential youth care. Consumer choice has stimulated innovation in education, but the picture is ambiguous...

We present a theory on migration of dual-earner couples and test it in the context of international migration. Our model predicts that the probability that a couple emigrates increases in the home-country earnings of the primary earner. The effect of the home-country earnings of the secondary...

Since Adam Smith, most economists have held that a professional army is superior to a conscript army, thanks to benefitting from comparative advantage and specialization. We summarize recent literature on the benefits and costs of the military draft, with special emphasis on its dynamic effects...

We study the effects of immigration on native welfare in a general equilibrium model featuring two skill types, search frictions, wage bargaining, and a redistributive welfare state. Our quantitative analysis suggests that, in all 20 countries studied, immigration attenuates the effects of...