We estimate the increase in earnings from a law degree relative to a bachelor's degree for graduates who majored in different fields in college. Students with humanities and social sciences majors comprise approximately 47 percent of law degree holders compared to 23 percent of terminal...

The intergenerational income elasticity is a crucial measure of income mobility. In this paper we develop a structural model to examine the channels through which this elasticity operates. Using data from the Panel Study of Income Dynamics, we separately identify the human capital and the...

There is ongoing interest in determining what predicts that a person will file bankruptcy. Past research has pointed to both a variety of acute shocks immediately before filing and the presence of substantial debt as risk factors for filing bankruptcy. We provide evidence on both fronts by using...

This paper develops a model of workers choosing legal or illegal employment, where legality is defined as abiding by the minimum wage and participating in a set of payroll taxes and mandated non-wage benefits. Alternatively, agents may opt to be legally or illegally self-employed. Enforcement of...

Recent estimates of intergenerational income transmission suggest that there are vast cross-country differences in economic mobility. Under the most common models this is attributed to a combination of credit constraints and failure of some nations to adequately invest in the human capital of...

Legal academics and journalists have marshaled statistics purporting to show that enrolling in law school is irrational. We investigate the economic value of a law degree and find the opposite: given current tuition levels, the median and even 25th percentile annual earnings premiums justify...

Using data from multiple-period math competitions, we show that males outperform females of similar ability during the first period. However, the male advantage is not found in any subsequent period of competition, or even after a two-week break from competition. Some evidence suggests that...

We investigate whether economic conditions at labor market entry predict long-term differences in law graduate earnings. We find that unemployment levels at graduation continue to predict law earnings premiums within 4 years after graduation for earners at the high end and middle of the...

Consumers often rely on lawyers to make complicated legal decisions, though in many cases, the lawyer's financial interests are at odds with those of the client. We consider this general problem in the context of consumers filing for bankruptcy. Lawyers advise debtors on whether to file the...