In this paper we focus on education as a private decision to invest in "human capital" and the estimation of the rate of return to that private investment. While the literature is replete with studies that estimate the rate of return using regression methods where the estimated return is...

We study differential parental responses to variation in class size induced by a maximum class size rule in Swedish schools. In response to an increase in class size: (i) only high-income parents help their children more with homework; (ii) all parents are more likely to move their child to...

Due to a tax law implemented in 1998, Dutch employers can claim an extra tax deduction when they train employees aged 40 years or older. This causes a discontinuity in a firm's cost of training an employee. This discontinuity is exploited to identify two effects: the effect of the tax deduction...

This paper reports the results of a meta-analysis of 32 papers with results from ultimatum game experiments. We find that on average the proposer offers 40% of the pie to the responder. This share is independent of the size of the pie and of the use of the strategy method. On average 16% of the...

Breach remedies serve an important role in protecting relationship-specific investments. Theory predicts that some common remedies protect too well and induce over investment, either though complete insurance against potential separation or the possibility that breach is prevented by increasing...

We investigate the effect of counseling and monitoring on the individual transition rate to employment. We theoretically analyze these policies in a job search model with two search channels and endogenous search effort. In the empirical analysis we use unique administrative and survey data...

We combine micro and macro unemployment duration data to study the effects of the business cycle on the outflow from unemployment. We allow the cycle to affect individual exit probabilities of unemployed workers as well as the composition of the total inflow into unemployment. We estimate the...