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Although the theoretical importance of expectations in decision-making is well-known to economists, only a few empirical papers investigate the impact of individual subjective expectations on economic outcomes. This paper examines the link between expectations of future job losses and the...
Persistent link: https://www.econbiz.de/10012762860
This paper examines the effects of introducing compulsory attendance laws on the schooling of U.S. children for three overlapping time periods: 1880-1927, 1890-1927, and 1898-1927. The previous literature finds little effect of the laws, which is somewhat surprising given that the passage of...
Persistent link: https://www.econbiz.de/10010796632
Persistent link: https://www.econbiz.de/10006647340
This paper re-examines the labor supply responses in the Seattle and Denver Income Maintenance Experiments (SIME/DIME). Specifically, the original experimental results show a significantly larger labor supply response for men and women from dual-headed households in the five-year Negative Income...
Persistent link: https://www.econbiz.de/10005086798
Although the life cycle/permanent income hypothesis is the primary framework for understanding household consumption and savings decisions, only a few studies have used clearly identifiable income changes to test the basic predictions of the model. The estimates produced using this empirical...
Persistent link: https://www.econbiz.de/10005692529
Previous research finds a systematic decrease in consumption at retirement, a finding that is inconsistent with the life cycle/permanent income hypothesis if retirement is an expected event. In this paper, we use workers' subjective beliefs about their retirement dates as an instrument for...
Persistent link: https://www.econbiz.de/10005693033
Although prior studies of job displacement and disability have measured the impact of these shocks in terms of lost earnings, no previous research has linked these permanent earnings shocks to the long-run consumption smoothing behavior of these households. Because consumption is generally...
Persistent link: https://www.econbiz.de/10005557092
Although the theoretical importance of expectations in decision-making is well known to economists, only a few empirical papers investigate the impact of individual subjective expectations on economic outcomes. This paper examines the link between expectations of future job losses and the...
Persistent link: https://www.econbiz.de/10005557133
This article examines the "added worker effect," which is the labor supply response of wives to their husbands' job losses. Unlike past studies, which focused on the husbands' current unemployment status, this article analyzes wives' responses before and after job losses to examine the...
Persistent link: https://www.econbiz.de/10005832503
Earnings shocks should affect divorce probability by changing a couple's expected gains from marriage. We find that the divorce hazard rises after a spouse's job displacement but does not change after a spousal disability. This difference casts doubt on a purely pecuniary motivation for divorce...
Persistent link: https://www.econbiz.de/10005725691