Using a unique sample of new Ph.D. economists in 1987 and 1997, we examine how job seekers and their employers alter … shifted their applications away from academia and toward the business sector. In bust conditions, academic institutions …

influence educational performance. Several insights emerge. First, we find that incentives framed as losses have more robust … effects than comparable incentives framed as gains. Second, we find that non-financial incentives are considerably more cost …-effective than financial incentives for younger students, but were not effective with older students. Finally, and perhaps most …