In this paper we consider the interaction between local workers and migrants in the production process of a firm. Both local workers and migrants can invest effort in assimilation activities in order to increase the assimilation of the migrants into the firm and so by increase their interaction...

We focus on high school dropout rates among male and female immigrant children. We consider the relationship between the dropout rate and age at arrival of the immigrants. Using repeated cross sectional data from the Israeli Labor Force Surveys of 1996 - 2011 we show that the share of high...

We present a basic theoretical framework of ethnic identity, i.e., the level of immigrant's commitment to his or her host society as well as the immigrant's commitment to his or her home society. Our model can explain the emerging empirical literature which studies the effect of the immigrants'...

Governments do not have perfect information regarding constituent priorities and needs. This lack of knowledge opens the door for groups to lobby in order to affect the government's taxation levels. We examine the political economy of decentralized revenue-raising authority in light of social...

We examine the phenomenon of forsaken schooling resulting from opportunities abroad. The brain-drain/gain literature takes as its starting point the migration of educated/professional labor from poor origin countries to richer host countries. While high-skilled migration is worrisome, many...

Can a society suffering contests between rich and poor achieve good governance in the face of endemic corruption? We examine a stylized poor state with weak institutions in which a "culture of evasion" damages state authority. Many evade tax payments, limiting the state's economic development...

Governments do not have perfect information regarding constituent priorities and needs. This lack of knowledge opens the door for groups to lobby in order to affect the government's taxation levels. We examine the political economy of decentralized revenue-raising authority in light of social...

Reporters and editors may not have the same ideology. When an editor wants to employ a new reporter with a different ideology, they have to negotiate the price of moving from their own to the other's ideology. We focus on the job market for reporters, where the agents negotiate over the...

Can a society suffering contests between rich and poor achieve good governance in the face of endemic corruption? We examine a stylized poor state with weak institutions in which a "culture of evasion" damages state authority. Many evade tax payments, limiting the state's economic development...

By the well established tournament literature, incomplete information regarding the employees? productivity is essential for the rationalization of (efficiency-enhancing) tournaments. In this paper we propose an alternative rationalization of tournaments focusing on a fully informed principal...