Dutch employers can claim an extra tax deduction when they train employees older than age 40. This discontinuity in a firm's training cost is exploited to identify the tax deduction's effects on training participation and of training participation on wages. The results show that the training...

Existing field evidence on rank-order tournaments typically does not allow disentangling incentive and sorting effects. We conduct a field experiment illustrating the confounding effect. Students in an introductory microeconomics course selected themselves into tournaments with low, medium, or...

A positive relation between parents’ schooling and child’s schooling does not necessarily reflect a causal relation. This article uses a new approach to identify intergenerational schooling effects: a nonparametric bounds analysis. By relying on relatively weak and in part testable...