We study the long-run effects of income inequality within adolescent peer compositions in schools. We propose a theoretical framework based on reference dependence where inequality in peer groups can generate aspiration gaps. Guided by predictions from this framework we find that an increase in...

Mothers may face pressure to sort out of the labor market due to perceptions that women have an absolute advantage in child-rearing, even when their earnings potential matches that of men. Guided by a simple model, we use a survey experiment where we equalize earnings potential across gender and...

This study examines the effects of U.S. state-level marijuana policies on mental health. Using data from three nationally representative data sets and estimating difference-in-differences models that account for the staggered implementation of both medical and recreational marijuana legislation,...

In this paper, we study how classmate gender composition matters for students in Ethiopia. We base our results on a unique survey of students across classrooms and schools and among those randomly assigned to class. We find a strong asymmetry: males do not and females do benefit from exposure to...

In this paper, we examine how pre-birth gender norms shape women's labor market trajectories and occupational choices around motherhood in the United Kingdom. Using data from the British Household Panel Survey, we first quantify the impact of gender norms on earnings and labor supply...

We investigate how the incompleteness of an employment contract - discretionary and non-contractible effort - can affect an employer's decision about cutting nominal wages. Using matched employer-employee payroll data from Great Britain, linked to a survey of managers, we find support for the...

In 2020, Berlin introduced a rigorous rent-control policy responding to soaring rents by setting a cap on rental prices: the Mietendeckel (rent freeze). The policy was revoked one year later by the German Constitutional Court. Although successful in reducing rents during its duration, the...

This paper studies how peers in school affect students' mental health. Guided by a theoretical framework, we find that increasing students' relative ranks in their cohorts by one standard deviation improves their mental health by 6% of a standard deviation conditional on own ability. These...

In this paper, we study the evolution of cognitive and noncognitive skills gaps for children of immigrants between kindergarten and 5th grade. We find some evidence that children of immigrants begin school with lower math scores than children of natives, but this gap disappears in later...