This paper studies peer effects on student achievement among first graders randomly assigned to classrooms in Tennessee's Project STAR. The analysis uses previously unexploited pre-assignment achievement measures available for 60 percent of students. Data are not missing at random, making...

In this paper we seek to understand how firms learn about what adjustments they need to make in their organization structure at the workplace level. We define four organizational systems: traditional (the simplest system), high-performance (the most complex system), decision-making oriented, and...

What do trust and the economy have to do with each other? In a world of perfect and symmetric information, where all related economic actions are simultaneous and occur in one place, the economy runs in the familiar fashion of the perfectly competitive market. In such a world, trust among...

This paper explores the relationship between the presence of employee involvement workplace practices and wage dispersion within firms. Using the representative sample of U.S. establishments from the National Employer Survey conducted in 1994 and 1997, the paper explores the links between...

The asumption that behavior is independent of the identity of those who participate in an economic interaction is fundamental to economists’ understanding of how markets operate, how firms work internally, how nations trade with each other, and much else. In this paper, we show that the...

This paper uses matched employer-employee data from the Longitudinal Employer Household Dynamics database to investigate the contribution of worker and firm reallocation to within industry changes in wage inequality between 1992 and 2003. We find that the entry and exit of firms and the sorting...