In order to credibly "sell" legitimate children to their spouse, women must forego more attractive mating opportunities. This paper derives the implications of this observation for the pattern of matching in marriage markets, the dynamics of human capital accumulation, and the evolution of the...

Transition economies have an initial condition of high human capital relative to GDP per capita, giving them high growth potential. In the model, at a good equilibrium a large number of children of well-educated parents take advantage of their family backgrounds and invest substantially in their...

Recent theoretical contributions depart from the usual practice of treating individual attitude endowments as a black box, by assuming that these are shaped by the attitudes of parents and other role models. Attitudes include fundamental preferences such as risk preference, and crucial beliefs...

The analysis uses a unique set of data matching mothers and their young adult children to study the impact of family background on young people’s educational attainments. The data is derived from the first five years (1991–5) of the British Household Panel Study. Mother’s education is...

This paper presents an empirical study of birth-order and sibship sex-composition effects on educational achievement, and uses these variables as instruments to estimate returns to education, with the help of a rich set of individual data. Our sample includes more than 12,000 men and 10,000...

This paper studies a model of human capital accumulation with real wage rigidity. It is shown that the arbitrage condition between hiring a skilled versus an unskilled worker may be stated as a positive relationship between their relative unemployment rates. It may be the case that this locus is...

This paper analyzes a recent ballot in which two virtually identical popular initiatives, both demanding a decrease in the legal age of retirement in Switzerland, led to differences in approval rates of nearly seven percentage points. Based on this unique natural experiment, the existence of...

Differences in gender-based labour market discrimination across countries imply that migration may affect husbands and wives differently. If migrant wives experience a relative improvement in their labour market position, bargaining theory suggests that they should experience comparatively...

We provide a new explanation to the limited stock market participation puzzle. In deciding whether to buy stocks, investors factor in the risk of being cheated. The perception of this risk is a function not only of the objective characteristics of the stock, but also of the subjective...

We construct a structural model of household decision-making and matching and estimate the returns to schooling within marriage. We consider agents with idiosyn- cratic preferences for marriage that may be correlated with education, and we allow the education levels of spouses to interact in...