Threshold models have been widely used to analyze interdependent behavior, yet empirical research identifying people's thresholds is nonexistent. We introduce an incentivized method for eliciting thresholds and use it to study support for affirmative action in a large, stratified sample of the...

We survey the microeconomics literature that studies how firms in the developing world are adapting to extreme weather, local pollution, and natural disasters. Climate change increases the uncertainty that every firm must address as it decides where and how to produce and who to trade with. We...

This chapter surveys recent advances in personnel economics. We begin by presenting evidence showing substantial and persistent productivity variation among workers in the same roles. We discuss new research on incentives and compensation; hiring practices; the influence of managers and peers;...

The legitimacy of the world trading system is under growing attack, as challenges to its conformity with norms of fairness and social justice are increasingly voiced by citizens and their governments around the world. Taking a novel "bottom up" approach to concerns for fairness, we show how...

Post-covid inflation was predominantly driven by unexpectedly strong demand forces, not only in the United States, but also in the Euro Area. In comparison, the inflationary impact of adverse supply shocks was less pronounced, even though these shocks significantly constrained economic activity....

How do different income taxation systems affect household decisions and welfare? We answer this question by first documenting the strong labor supply disincentives for secondary earners of the U.S. tax system and by using variations from the Bush Tax Cuts to assess their effects on...

School assignment policies are a key lever to increase access to high performing schools and to promote racial and socioeconomic integration. For over 50 years, the Metropolitan Council for Educational Opportunity (METCO) has bussed students of color from Boston, Massachusetts to relatively...

This chapter reviews recent advances in the task model and shows how this framework can be put to work to understand the major labor market trends of the last several decades. Production in each industry necessitates the completion of a range of tasks, which can be allocated to workers of...

We show the incidence of mental ill-health has been rising especially among the young in the years and especially so in Scotland. The incidence of mental ill-health among young men in particular, started rising in 2008 with the onset of the Great Recession and for young women around 2012. The...

For many of those who worked to include an expanded Child Tax Credit in the 2021 American Rescue Plan, an important motivation was to test the feasibility and effectiveness of a permanent U.S. child allowance similar to those provided in other rich countries. Because this expansion was...