The Regression Kink (RK) design is an increasingly popular empirical method, with more than 20 studies circulated using RK in the last 5 years since the initial circulation of Card, Lee, Pei and Weber (2012). We document empirically that these estimates, which typically use local linear...

The Regression Kink (RK) design is an increasingly popular empirical method, with more than 20 studies circulated using RK in the last 5 years since the initial circulation of Card, Lee, Pei and Weber (2012). We document empirically that these estimates, which typically use local linear...

Recent literature has documented that individuals face frictions in adjusting their earnings with respect to policy, but this literature has not yet developed a method for estimating earnings adjustment costs. We introduce a method for estimating the cost of adjusting earnings, as well as the...

How did the largest expansion of unemployment benefits in U.S. history affect household behavior? Using anonymized bank account data covering millions of households, we provide new empirical evidence on the spending and job search responses to benefit changes during the pandemic and compare...

Recent literature has documented that individuals face frictions in adjusting their earnings with respect to policy, but this literature has not yet developed a method for estimating earnings adjustment costs. We introduce a method for estimating the cost of adjusting earnings, as well as the...

We introduce a method for estimating the cost of adjusting earnings, as well as the earnings elasticity. Our method uses information on bunching in the earnings distribution at convex budget set kinks before and after policy-induced changes in the magnitude of the kinks: the larger is the...