Our spatial general equilibrium model evaluates the impact of stamp duty reforms on social welfare through two channels: the direct positive impact on housing market outcomes and the indirect boost to national productivity due to better labor allocation. Analyzing detailed spatial data from Australia, we find that reducing stamp duties generates welfare gains of 3.57%, with the productivity channel accounting for 95% of these gains. This highlights the significant benefits of stamp duty reforms beyond the housing market.

High rates of divorce in western society have prompted much research on the repercussions for well-being and the economy. Yet little is known about the important topic of whether parental divorce has deleterious consequences upon adult children. By combining experimental and econometric survey-based evidence, this study attempts to provide an answer. Under controlled conditions, it measures university students’ subjective well-being and productivity (in a standardized laboratory task). It finds no evidence that either of these is negatively associated with recent parental divorce. If anything, happiness and productivity appear to be slightly greater, particularly among males, if their parents have divorced. Using longitudinal data from the British Household Panel Survey—to control for so-called fixed effects—we then cross-check this result, and confirm the same finding, on various random samples of young British adults.

Punishment has been shown to be an effective reinforcement mechanism. Intentional or not, punishment will likely generate spillover effects that extend beyond one’s immediate decision environment, and these spillovers are not as well understood. We seek to understand these secondary spillover effects in a controlled lab setting using a standard social dilemma: the voluntary contributions mechanism. We find that spillovers occur when others observe punishment outside their own social dilemma. However, the direction of the spillover effect depends crucially on personal punishment history and whether one is personally exempt from punishment or not.

Nothing is known about the effectiveness of defaults when moving the target outcomes requires substantial effort. We conduct two field experiments to investigate how defaults fare in such situations: we change the university exam sign-up procedure in two study programs to “opt-out” (a) for a single exam, and (b) for many exams. Both interventions increase task uptake (exam sign-up). Concerning the outcomes which require effort, we find no effects for many exams. For a single exam, the opt-out increases task completion (exam participation) in the study program where the default arguably entails stronger endorsement. Within this program, the effects on successful task completion (exam passing) are heterogeneous: treated students who in the past were willing to communicate with the university (responsive individuals) invest more effort into exam preparation and are more likely to pass the exam than their control counterparts.For non-responsive individuals, we find increased sign-ups but no effects on the target outcomes. Defaults can thus be effective and may be an attractive policy option even when the target outcome requires substantial effort provision. It is, however crucial that the interventions target the appropriate individuals.

Experiments have demonstrated that men are more willing to compete than women. We develop a new instrument to “price” willingness to compete. We find that men value a $2.00 winner-take-all payment significantly more (about $0.28 more) than women; and that women require a premium (about 40 %) to compete. Our new instrument is more sensitive than the traditional binary-choice instrument, and thus, enables us to identify relationships that are not identifiable using the traditional binary-choice instrument. We find that subjects who are the most willing to compete have high ability, higher GPA’s (men), and take more STEM courses (women).

We expand the scope of the literature on willingness to compete by asking how it varies with academic ability and whether and how it predicts career choices at different ability levels. The literature so far has mainly focused on career choices made by students at the top of the ability distribution, particularly in academic institutions. We experimentally elicit the willingness to compete of 1500 Swiss lower-secondary school students at all ability levels and link it to the study choice that students make upon finishing compulsory school. Our analysis of the relationship between willingness to compete and the study choice considers the full set of study options, including the options in vocational education. We find that willingness to compete predicts which study option high-ability students choose, not only among academic specializations but also among vocational careers, and, importantly, it also predicts whether low-ability boys pursue upper-secondary education upon finishing compulsory schooling. Our second main contribution is to systematically explore how willingness to compete varies with academic ability. We find that high-ability boys, but not girls, are substantially more willing to compete compared to all other children. As a consequence, the gender gap in willingness to compete is significantly lower among low-ability students than among high-ability students. Overall, our study highlights that insights from the literature on willingness to compete are relevant for a broader set of policy questions, populations and choices.

The formation of human capital is important for a society's welfare and economic success. Recent literature shows that child health can provide an important explanation for disparities in children's human capital development across different socio-economic groups. While this literature focuses on cognitive skills as determinants of human capital, it neglects non-cognitive skills. We analyze data from economic experiments with preschoolers and their mothers to investigate whether child health can explain developmental gaps in children's non-cognitive skills. Our measure for children's non-cognitive skills is their willingness to compete with others. Our findings suggest that health problems are negatively related to children's willingness to compete and that the effect of health on competitiveness differs with socioeconomic background. Health has a strongly negative effect in our sub-sample with low socio-economic background, whereas there is no effect in our sub-sample with high socio-economic background.

We conduct a field experiment with Amazon Mechanical Turk (“AMT”) workers to causally assess the effect of introducing a control mechanism in an existing work relationship on workers’ performance on tasks of varying difficulty. We find that introducing control significantly reduces performance. This reduction occurs primarily on challenging tasks, while performance on simple tasks is unaffected. The negative effects are primarily driven by workers who exhibit non-pecuniary motivation in the absence of control. Our results show that there are adverse effects of control, and they suggest that these adverse effects are of particular concern to firms that rely on high performance on challenging tasks.

This paper constitutes the first economic investigation into the potential detrimental role of smartphones in the workplace based on a field experiment. We exploit the conduct of a nationwide telephone survey, for which interviewers were recruited to work individually and in single offices for half a day. This setting allows to randomly impose bans on the use of interviewers’ personal smartphones during worktime while ruling out information spillovers between treatment conditions. Although the ban was not enforceable, we observe substantial effort increases from banning smartphones in the routine task of calling households, without negative implications linked to perceived employer distrust. Analyzing the number of conducted interviews per interviewer suggests that higher efforts do not necessarily translate into economic benefits for the employer. In our broad discussion of smartphone bans and their potential impact on workplace performance, we consider further outcomes of economic relevance based on data from employee surveys and administrative phone records. Finally, we complement the findings of our field experiment with evidence from a survey experiment and a survey among managers.

Firms face an optimization problem that requires a maximal quantity output given a quality constraint. But how do firms incentivize quantity and quality to meet these dual goals, and what role do behavioral factors, such as loss aversion, play in the tradeoffs workers face? We address these questions with a theoretical model and an experiment in which participants are paid for both quantity and quality of a real effort task. Consistent with basic economic theory, higher quality incentives encourage participants to shift their attention from quantity to quality. However, we also find that loss averse participants shift their attention from quality to quantity to a greater degree when quality is weakly incentivized. These results can inform managers of appropriate ways to structure contracts, and suggest benefits to personalizing contracts based on individual behavioral characteristics.

We examine how multitasking affects performance. We also examine whether individuals optimally choose their degree of multitasking or whether they perform better under an externally imposed schedule. Subjects in our experiment perform two different tasks according to one of three treatments: one where they perform the tasks sequentially, one where they are forced to multitask, and one where they can freely organize their work. Subjects who are forced to multitask perform significantly worse than those forced to work sequentially. Surprisingly, subjects who can freely organize their own schedule also perform significantly worse. These results suggest that scheduling is a significant determinant of productivity. Finally, our results do not support the stereotype that women are better at multitasking. Women suffer as much as men when forced to multitask and are actually less inclined to multitask when being free to choose.

We explore gender attitudes towards competition in the United Arab Emirates—a traditionally patriarchal society which in recent times has adopted numerous policies to empower women and promote their role in the labor force. The experimental treatments vary whether individuals compete in single-sex or mixed-sex groups. In contrast to previous studies, women in our sample are not less willing to compete than men. In fact, once we control for individual performance, Emirati women are more likely to select into competition. Our analysis shows that neither women nor men shy away from competition, and both compete more than what would be optimal in monetary terms as the fraction of men in their group increases. We offer a detailed survey of the literature and discuss possible reasons for the lack of gender differences in our experiment.

We study the relative effectiveness of contracts that are framed either in terms of bonuses or penalties. In one set of treatments, subjects know at the time of effort provision whether they have achieved the bonus/avoided the penalty. In another set of treatments, subjects only learn the success of their performance at the end of the task. We fail to observe a contract framing effect in either condition: effort provision is statistically indistinguishable under bonus and penalty contracts.

This article replicates an experiment by Coffman et al. (Manag Sci 67(6):3551–3569, 2021) who separated taste-based and statistical discrimination by comparing employer choices in one of two hiring environments (treatments). Both treatments were characterized by the same ability distributions of workers in tasks on which men are found to outperform women on average, but only one allowed for gender-specific considerations. We found statistical discrimination against women when they are presented to employers not as women, but as people belonging to a low-performance group, but discrimination in their favor when their gender is revealed to potential employers. This discrimination in favor of women was observed in both male and female employers. It was greater when employers were women and disappeared when monetary incentives to employ more productive workers were higher for employers.

I show how using response times as a proxy for effort can address a long-standing issue of how to separate the effect of cognitive ability on performance from the effect of motivation. My method is based on a dynamic stochastic model of optimal effort choice in which ability and motivation are the structural parameters. I show how to estimate these parameters from the data on outcomes and response times in a cognitive task. In a laboratory experiment, I find that performance on a digit-symbol test is a noisy and biased measure of cognitive ability. Ranking subjects by their performance leads to an incorrect ranking by their ability in a substantial number of cases. These results suggest that interpreting performance on a cognitive task as ability may be misleading.

We examine the effects of mining booms in Indonesia on labor market outcomes using exogenous price changes and 452 mines. We do this using labor force surveys between the years 1998 and 2011, and four waves of individual panel data between 1997 and 2014. Surprisingly, female incomes grow during mining booms, not because women work more, but because their work moves from the agricultural to the service sector where paid work is more common. Men experience mixed labor market changes. High average mining incomes attract male labor to mining districts, allowing for some adjustment of labor supply to demand. Suggestive evidence also shows that informal work increases marginally for men, potentially in auxiliary mining jobs. A male dominated industry that supports economic opportunities for women can unexpectedly benefit women as well.

This paper explores the (de-)routinisation of employment structure in developing countries, through the case of Morocco. We investigate employment (de-)routinisation from an often-overlooked perspective, aiming to elucidate the interplay between the dynamics of occupational employment composition by the level of routine tasks intensity and two structural aspects: premature deindustrialisation and the prevalence of informal labour.

Our findings, based on tertile analysis and regressions, do not fully support the hypothesis of employment structure de-routinisation. At the same time, we could not identify a clear process of routinisation similar to that observed in developing countries undergoing the first stage of the traditional structural transformation process. Rather, we identified an inverted U-shaped pattern in the dynamics of occupational employment, indicative of a rise in intermediate routine-intensive occupations.

We emphasise two key factors, with opposite effects that have contributed to this atypical pattern: The first aspect is premature deindustrialisation, which according to our shift-share decomposition, has adversely affected highly routine-intensive jobs, contrasting with the routinisation trend observed in countries that have experienced a more traditional process of structural transformation. The influence of premature deindustrialisation in terms of de-routinisation is somewhat mitigated by the increasing prevalence of occupations demanding intermediate routine tasks, particularly within the services and construction sector. Regarding the second structural aspect – the prevalence of informal labour – our three-way interaction model indicates a lower susceptibility of informal jobs to de-routinisation compared to their formal counterparts within the same industry. Consequently, the prevalence of informal employment has slowed down the process of de-routinisation of employment structure.

Teenage childbearing is a common incident in developed countries. However, teenage births are much more likely in the USA than in any other industrialized country. Most of these births are delivered by female teenagers from low-income families. The hypothesis put forward here is that the welfare state (a set of redistributive institutions) has a significant influence on teenage childbearing behavior. We develop an economic theory of parental investments and the risky sexual behavior of teenagers. The model is estimated to fit stylized facts about income inequality, intergenerational mobility, and the sexual behavior of teenagers in the USA. The welfare state institutions are introduced via tax and public education expenditure functions derived from US data. In a quantitative experiment, we impose Norwegian taxes and education spending in the economic environment. The Norwegian welfare state institutions go a long way in explaining the differences in teenage birth rates between the USA and Norway.

We investigate the effect of water quality on the educational outcomes of children aged 8–11 in 39 districts in five states in the Ganges Basin of India. Using data from the Centre for Pollution Control Board of India and the Indian Human Development Survey (IHDS) 2011–12, we study the effect of water quality in the Ganges Basin on the performance in three test scores. Our evidence suggests that faecal coliform levels in water sources above safety thresholds negatively affect reading and writing test scores. The effects of Nitrate-N and Nitrite-N in the water appear to be weaker compared to those of faecal coliform. The results establish that water pollution caused by excessive presence of faecal coliform is an important environmental factor in determining educational outcomes of children. High levels of faecal coliform in the water could be lowering cognitive abilities of the pollution-affected children through the channel of waterborne diseases.

Existing empirical literature provides converging evidence that selective emigration enhances human capital accumulation in the world's poorest countries. However, the within-country distribution of such brain gain effects has received limited attention. Focusing on Senegal, we provide evidence that the brain gain mechanism primarily benefits the wealthiest regions that are internationally connected and have better access to education. Conversely, human capital responses are negligible in regions lacking international connectivity, and even negative in better connected regions with inadequate educational opportunities. These results extend to internal migration, implying that highly vulnerable populations are trapped in the least developed areas.