Cross-sectional studies have shown that immigrants' earnings tend to rise faster than those of comparable natives. One reason for this is the immigrant's acquisition of proficiency in the host country's native language. Immigrants can improve their knowledge of the host country language either...

Under the standard competitive model, a tax change affecting workers with highly inelastic labor supply, will lower earnings by the entire nominal employer share of the tax increase. If wages play a motivational role but the market still clears, the range of possible outcomes is broader but...

Among college graduates, teachers have both low average AFQT and high average risk aversion, perhaps because the compression of earnings within teaching attracts relatively risk-averse individuals. Using a dynamic optimization model with unobserved heterogeneity, we show that were it possible to...