Profit Sharing and Relative Consumption Traditionally, it has been argued that profit sharing can increase employment and welfare because it lowers marginal labour costs without reducing total cost or labour income. In this paper, we show that profit sharing can also represent a Pareto-improvement if labour supply is excessive due to relative consumption effects. Mandatory profit sharing reduce...

The Effect of Children on Specialization and Coordination of Partners’ Activities This paper first documents the extent of the specialization in time use in couple families, and the impact of children on this specialization. It then examines the links between the time allocations of partners in couple families, the impact of children on these links, and the effects these factors have on special...

The Impact of Participation in Sports on Educational Attainment: New Evidence from Germany We analyze the impact of exercising sports during childhood and adolescence on educational attainment. The theoretical framework is based on models of allocation of time and educational productivity. Using the rich information from the German Socio-Economic Panel (GSOEP), we apply generalized ordered prob...

I examine the effects that the 1986 Immigration Reform and Control Act (IRCA), which legalized almost 3 million immigrants, had on crime in the United States. I exploit the IRCAs quasi-random timing as well as geographic variation in the intensity of treatment to isolate causal impacts. I find decreases in crime of 2%-6%, primarily due to decline in property crimes, equivalent to 80,000-240,000...

In a polygamous society, all monogamous women are virtually at risk of polygamy. However, both the anthropological and economic literature are silent on the potential impact of the risk of polygamy on economic decisions of monogamous wives. We explore this issue for Senegal using individual panel data. We first estimate a Cox model for the probability of transition to polygamy. Second, we estim...

The aim of this paper is to describe the state-of-the-art in simulation and to illustrate benefits and problems of linking micro and macro models by analysing flat tax proposals for Germany. The analysis shows that a personal income flat tax can indeed overcome the fundamental equity efficiency trade-off while simultaneously increasing the tax revenue. However, this result does not hold for a f...

We consider a task, demanding a sequence of efforts, that must be completed by a deadline. Effort is not contractible. Agents face shocks to their opportunity cost of time and are sometimes distracted from work. We show that agents who are often distracted may outperform agents who are distracted less often. The reason is that anticipation of distractions induces agents to start earlier for pre...

This paper investigates how high-speed home Internet has impacted married women’s labor force participation. I estimate the net effect of individual Internet usage on labor supply using an instrumental variables strategy which exploits cross-state variation in supply-side constraints to residential broadband Internet access. Results indicate that married women who use the Internet are more like...

Public Policies and Women’s Employment after Childbearing This paper examines how the public policy environment in the United States affects work by new mothers following childbirth. We examine four types of policies that vary across states and affect the budget constraint in different ways. The policy environment has important effects, particularly for less advantaged mothers. There is a poten...

The 2001 No Child Left Behind Act (NCLB) increased accountability pressure in U.S. public schools by threatening to impose sanctions on Title 1 schools that failed to make adequate yearly progress (AYP) in consecutive years. Difference-in-difference estimates of the effect of failing AYP in the first year of NCLB on teacher effort in the subsequent year suggest that, on average, teacher absence...