This paper studies how and why consumers respond to unexpected, transitory income shocks. In a randomized control trial, I elicit marginal propensities to consume (MPC) out of different hypothetical income shock scenarios, varying the payment mode, the shock size, and the source of income. The...

We analyze the impact of an inflow of foreign workers on the wage distribution of residents in a small open economy like Switzerland. We exploit the fact that Swiss mobility regions were differently affected by the intensity and the timing of the Agreement on the Free Movement of Persons,...