There are extensive literatures within economics and economic psychology on the allocation of household income within the household. These two literatures are largely disjoint but both use a concept of ‘income pooling’. In economics this refers to the independence of household decisions from...

This paper analyses the importance of entrepreneurs for job creation and wage growth. Relying on unique data that cover all establishments, firms and individuals in the Danish private sector, we are able to distil a number of different subsets from the total set of new establishments – subsets...

We examine theoretically and empirically consumption over the early part of the life-cycle. The main focus is on the transition from being single to living with someone else. Our theoretical model allows for publicness in consumption; uncertainty concerning marriage; differences between lifetime...

Using Danish register and survey data, we examine the effect of a national graded return-to-work program on the probability of sick-listed workers returning to regular working hours. During program participation, the worker receives the normal hourly wage for the hours worked and sickness...

Many papers have documented a wage premium in foreign-owned and large firms. However, there is very little formal theory in the literature and empirical analyses are typically not based on hypotheses which are rigorously derived from theory. This paper contributes to the theory-empirics gap by...

Most studies which use Mare’s (1980, 1981) seminal model of educational transitions find that the effect of family background variables decreases across educational transitions. Cameron and Heckman (1998, 2001) have argued that this “waning coefficients” phenomenon might be driven by...

We study risk behavior of Danish self-employed entrepreneurs, whose income risk may be driven by both exogenous factors and effort choice (moral hazard). Partial insurance is available through voluntary unemployment insurance (UI). Additional incentives to sign insurance contracts stem from a...

This paper carries out a theoretical and empirical investigation of the role of informal institutions in facilitating intergenerational contracts governing investments in schooling and payments of pensions in the form of remittances. We show, using detailed household level data from rural...

A whiplash is a sudden acceleration-deceleration of the neck and head, typically associated with a rear-end car collision that may produce injuries in the soft tissue. Often there are no objective signs or symptoms of injury, and diagnosing lasting whiplash associated disorders (WAD) is...

This paper proposes a new approach to dealing with unobserved heterogeneity in applied research using the binary logit model with cross-sectional data and short panels. Unobserved heterogeneity is particularly important in non-linear regression models such as the binary logit model because,...