We investigate the effects of public school open enrolment, which allows students to enroll in any public school with available space, on fourth grade test scores. We find a small, positive effect on the average student; this benefit appears to stem from increased competition among schools,...

One reason to be concerned about income inequality is the idea that people not only care about their own absolute income, but also their income relative to various reference groups (e.g. co-workers, friends, neighbors, relatives, etc.). We use Canadian linked employer-employee data to estimate...

This paper investigates the properties of a local economy in which personal connections are important in finding jobs. The complementarities in the model generate an interesting nonlinear relationship between the distribution of human capital in the economy, the characteristics of the social...

This paper finds that the predicted unemployment rate in a community increases dramatically when the fraction of neighborhood residents with college degrees drops below twenty percent. This threshold behavior provides empirical support for "epidemic" theories of inner-city unemployment. Using a...

This paper describes and implements a simple approach to the most common problem in applied microeconometrics: estimating a linear causal effct when the explanatory variable of interest might be correlated with relevant unobserved variables. The main idea is to place restrictions on the...

This paper finds that the predicted unemployment rate in a community increases dramatically when the fraction of neighborhood residents with college degrees drops below twenty percent. This threshold behavior provides empirical support for ``epidemic'' theories of inner-city unemployment. Using...

A number of studies have indicated that peer smoking is a highly influential factor in a young person's decision to smoke. However, this finding is suspect, because the studies often fail to account for selection and simultaneity bias. This paper develops an econometric model of youth smoking...

One reason to be concerned about income inequality is the idea that people not only care about their own absolute income, but also their income relative to various reference groups (e.g. co-workers, friends, neighbors, relatives, etc.). We use Canadian linked employer-employee data to estimate...