Adapting or compounding? The effects of recurring labour shocks on stated and revealed preferences for redistribution

The evidence on the impact of employment shocks on preferences for redistribution is mixed on stated outcomes and sparse on revealed ones. We conduct a survey of US workers to measure the impact of repeated labour market shocks on both stated and revealed redistributive preferences. We measure the former by support on seven different policies and the latter through donations. We look at experiences of both mild shocks (having to reduce working hours) and hard shocks (unemployment), as well as past unemployment during formative years. We find evidence of adaptation to unemployment on policy preferences and compounding for milder shocks on donations, suggesting that the effects of repeated shocks on preferences for redistribution are not independent. Our results show that unemployment impacts preferences in a self-interested way, while milder shocks lead to broader support for redistribution

Does growing up in a recession increase compassion? The case of attitudes towards immigration

Macroeconomic conditions during young adulthood have a persistent impact on people's attitudes and preferences. The seminal paper by Giuliano and Spilimbergo (2014) shows that people who grew up in a recession are more likely to favor government redistribution and assistance to the poor. Moreover, they are more likely to believe that bad luck rather than a lack of hard work causes poverty, i.e. they seem to be more compassionate towards the poor. In this paper, we investigate how inclusive this increase in compassion is by studying how macroeconomic conditions experienced during young adulthood affect attitudes towards immigration. Using data from the General Social Survey and the World Value Survey, we find strong evidence that bad macroeconomic circumstances during young adulthood strengthen attitudes against immigration for the rest of people's lives. In addition, growing up in difficult macroeconomic times increases parochialism, i.e. people become more outgroup hostile --- not just against immigrants. Our results thus suggest that the underlying motive for more government redistribution in response to a recession does not originate from a universal increase in compassion, but rather seems to be more self-interested and restricted to one's ingroup

Do wages underestimate the inequality in workers' rewards? The joint distribution of job quality and wages across occupations

Information on both wages and job quality is needed in order to understand the occupational dispersion of wellbeing. We analyse subjective wellbeing in a large UK sample to construct a measure of ‘overall reward’, the sum of wages and the value of job quality, in 90 different occupations. If only wages are included, then labour market inequality is underestimated: the dispersion of overall rewards is one-third larger than the dispersion of wages. Our findings are similar, and stronger, in data on US workers. We find a positive correlation between job quality and wages in all specifications, both between individuals in the cross-section and within individuals in panel data. The gender and ethnic gaps in the labour market are larger than those in wages alone, and the overall rewards to education on the labour market are underestimated by earnings differentials alone

Beyond income inequality: factoring in non-monetary rewards

While many researchers, policy makers, and interest groups are concerned with income inequality and its impact on society, much of the debate has focused on inequality in wages. In contrast, relatively little work has addressed the job rewards that are not monetary. But, as Andrew Clark, Maria Cotofan, and Richard Layard write, we need to look beyond wages to fully capture labour market inequality

Does growing up in economic hard times increase compassion? The case of attitudes towards immigration

There is some evidence that people who grew up in economic hard times more strongly favor government redistribution and are more compassionate towards the poor. We investigate how inclusive this increase in compassion is by studying how macroeconomic conditions experienced during young adulthood affect immigration attitudes. Using US and global data, we show that experiencing bad macroeconomic circumstances strengthen anti-immigration attitudes for life. Moreover, we find that people become generally more outgroup hostile. Our results thus suggest that the underlying motive for more government redistribution is not a universal increase in compassion, but more self-interested and restricted to one's ingroup

Essays in Applied Microeconomics: Non-Monetary Incentives, Skill Formation, and Work Preferences

This dissertation consists of three separate studies in empirical microeconomics. The three chapters presented in this book study how preferences for different job attributes form, how and why workers respond to non-monetary incentives, and how the nature of the educational environment shapes the cognitive and non-cognitive skills of children. The findings of this thesis speak to a growing interest in using behavioral and experimental methods to learn how the labor market outcomes of individuals are influenced by their preferences and personality traits, and to measure the efficiency of lower-powered incentives

Are the upwardly mobile more left-wing?

It is well-known that the wealthier are more likely to have Right-leaning political preferences. We here in addition consider the role of the individual's starting position, and in particular their upward social mobility relative to their parents. In 18 waves of UK panel data, both own and parental social status are independently positively associated with Right-leaning voting and political preferences: given their own social status, the upwardly-mobile are therefore more Left-wing. We investigate a number of potential mediators: these results do not reflect the relationship between well-being and own and parents' social status but are rather linked to the individual's beliefs about how fair society is

Learning from praise: evidence from a field experiment with teachers

Financial incentive programs for teachers are increasingly common, but little is known about the effectiveness of non-monetary incentives in improving educational outcomes. This field experiment measures how repeated public praise for the best teachers impacts student performance. In treated schools, the students of praised teachers perform better on standardized exams undertaken six months after the intervention. Praised teachers also assign higher marks to their students two months after the intervention. The students of teachers who are not praised in treated schools are assigned lower marks two months after the intervention, but they do not perform any worse on final exams. Compared to costly interventions where teachers receive financial incentives, the effects of public praise for praised teachers are remarkably large