We investigate long-run earnings responses to taxes in the presence of dynamic returns to effort. First, we develop a theoretical model of earnings determination with dynamic returns to effort. In this model, earnings responses are delayed and mediated by job switches. Second, using...

We re-assess the consequences of a NIT for two-parent families, utilizing hitherto untapped data. The Gary and Seattle experiments fail balancing tests. In New Jersey, Denver and Manitoba we estimate far greater labor supply responses than the current consensus, with remarkable consistency in...

In most disability insurance programs beneficiaries lose some or all of their benefits if they earn above an earnings threshold. While intended to screen out applicants with high remaining working capacity, earnings limits can also distort the labor supply of beneficiaries. We use a reduction in...

We investigate behavioral responses to the generosity of Disability Insurance (DI) within the context of work compatibility. Exploiting an institutional discontinuity leading to exogenous variation in replacement rates, we use rich administrative data on the work and health histories of Italian...

Labor Force States and flows between are useful tools to model individual dynamics in the labor market. This chapter reviews recent literature uncovering substantial heterogeneity in transitions across Labor Force States. We review methods and results by replicating leading studies using...

The "child penalty" significantly reduces women's lifetime earnings and pension savings, but it remains unclear whether these gaps are the deliberate result of forward-looking decisions. This paper provides novel evidence on the role of information constraints in mothers' labor supply decisions....

The “child penalty” significantly reduces women’s lifetime earnings and pension savings, but it remains unclear whether these gaps are the deliberate result of forward-looking decisions. This paper provides novel evidence on the role of information constraints in mothers’ labor supply...

How do parents contend with threats to the health and survival of their children? Can the social safety net mitigate negative economic effects through transfers to affected families? We study these questions by combining the universe of cancer diagnoses among Danish children with register data...

How do parents contend with threats to the health and survival of their children? Can the social safety net mitigate negative economic effects through transfers to affected families? We study these questions by combining the universe of cancer diagnoses among Danish children with register data...

How do parents contend with threats to the health and survival of their children? Can the social safety net mitigate negative economic effects through transfers to affected families? We study these questions by combining the universe of cancer diagnoses among Danish children with register data...

The disproportionate impact of children on women's earnings constitutes the primary factor contributing to persistent gender inequality in many countries. This paper examines the multigenerational impact of children and whether the public provision of formal childcare lessens the earnings and...

The disproportionate impact of children on women's earnings constitutes the primary factor contributing to persistent gender inequality in many countries. This paper examines the multigenerational impact of children and whether the public provision of formal childcare lessens the earnings and...

Labor market tightness following the height of the Covid-19 pandemic led to an unexpected compression in the US wage distribution that reflects, in part, an increase in labor market competition. Rapid relative wage growth at the bottom of the distribution reduced the college wage premium and...

Trade-offs exist in protecting those on lower incomes and ensuring an adequate incentive to work. If benefit entitlements and other supports are withdrawn sharply as income rises, there may be a financial disincentive to enter employment or to work more. The same is true for tax and social...

In dieser Expertise für den Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung werden Reformen im Steuer- und Transfersystem untersucht, die darauf abzielen, die Erwerbsanreize zu stärken. Es handelt sich hierbei um Reformen in der Grundsicherung und bei der...

How do parents contend with threats to the health and survival of their children? Can the social safety net mitigate negative economic effects through transfers to affected families? We study these questions by combining the universe of cancer diagnoses among Danish children with register data...

How do parents contend with threats to the health and survival of their children? Can the social safety net mitigate negative economic effects through transfers to affected families? We study these questions by combining the universe of cancer diagnoses among Danish children with register data...

Full days worked at home account for 28 percent of paid workdays among Americans 20-64 years old, as of mid 2023, according to the Survey of Working Arrangements and Attitudes. That's about four times the 2019 rate and ten times the rate in the mid-1990s that we estimate in time-use data. We...

We provide the first systematic account of summer declines in women’s labor market activity. From May to July, the employment-to-population ratio among prime-age US women declines by 1.1 percentage points, whereas male employment rises; women’s total hours worked fall by 11 percent, twice...

We investigate whether child tax benefits reduce child poverty and labor force participation among single mothers within the context of the 2015 expansion of the Canadian Universal Child Care Benefit (UCCB) and the 2016 introduction of the Canada Child Benefit (CCB). We compare single mothers to...

In most disability insurance programs, beneficiaries lose some or all of their benefits if they earn above an earnings threshold. While intended to screen out applicants with high remaining working capacity, earnings limits can also distort the labor supply of beneficiaries. This paper develops...

How do parents contend with threats to the health and survival of their children? Can the social safety net mitigate negative economic effects through transfers to affected families? We study these questions by combining the universe of cancer diagnoses among Danish children with register data...

Beginning in March 2020 and ultimately continuing to September 2023, most student loan borrowers had their required payments on federal student loans paused. For student loan borrowers with limited access to credit, the payment pause provided additional cash-on-hand that may have allowed them to...

In this paper, we discuss bequests and other intergenerational transfers and what impact they have on the consumption, saving, and labor supply behavior of households. We show that bequests and other intergenerational transfers are prevalent in most countries, that they are sometimes motivated...

We leverage pronounced changes in the availability of public schooling for young children--through duration expansions to the kindergarten day--to better understand how an implicit childcare subsidy affects mothers and families. Exploiting full-day kindergarten variation across place and time...

Household time and money allocations in response to income support programs vary across diverse family circumstances and preferences, yet such heterogeneous responses are not well understood. Using data from a large-scale, multisite, U.S.-based randomized controlled study, we examine...

We examine the responsiveness of labor participation, unemployment and labor migration to exogenous variations in labor demand. Our empirical approach considers four instruments for regional labor demand commonly used in the literature. Empirically, we find that labor migration is a significant...

This paper examines how people adjust their time use when they experience an increase in time spent alone, which is a growing share of adults' lives. We utilize the dramatic rise in remote work following the onset of the pandemic, which is associated with a large decline in time spent in the...

We study how abortion access affects economic hardship and crime. Using a database of abortion provider locations and operations in Texas from 2009-2019, we exploit variation in travel distance to the nearest facility created by clinic closures following the enforcement of Texas HB-2 in 2013. We...

We ask to what extent the quantification of labor market power depends on the modeling of the long-term worker-firm employment relationship. We develop an oligopsony model with dynamic wage contracts. Workers decide whether and where to work, choosing among firms providing different amenities...

We examine the labor market impact of states easing occupational license requirements by expanding the scope of practice (SOP) for nurse practitioners (NPs), allowing them to practice without physician oversight. Using data on job postings, we find that employers increase their demand for NPs...

A concern in higher education policy is that students are taking longer to graduate. One possible reason for this observation is an increase in off-campus labor market participation among college students. Financial aid may play a role in the labor/study choice of college students-as college...

A concern in higher education policy is that students are taking longer to graduate. One possible reason for this observation is an increase in off-campus labor market participation among college students. Financial aid may play a role in the labor/study choice of college students-as college...

People's value for their own time is a key input in evaluating public policies: evaluations should account for time taken away from work or leisure as a result of policy. Using rich choice data collected from farming households in western Kenya, we show that households exhibit non-transitive...