MicroEconInsights

Distilling research for public debate. RTs and Following ≠ endorsement.

[MicroEconInsights @micro_econ]

Nevertheless, an information campaign can help create meaningful behavioral change, especially among the least informed groups.

Read here: https://t.co/pu5J2Rtwnc

[MicroEconInsights @micro_econ]

📕 NEW from @anacostaramon, Michaela Slotwinski @UZH_en, Ursina Schaede @TuftsUniversity and Anne Ardila Brenøe @UZH_en:

'Do Mothers Respond to Information About the Long-Term Consequences of Part-Time Work?'

[MicroEconInsights @micro_econ]

The paper finds that mothers’ labor force participation and earnings decline sharply following the birth of a first child.

Additionally, long-term financial factors are not top of mind when Swiss women are making labor supply decisions as a parent.

[MicroEconInsights @micro_econ]

Additionally the paper finds no evidence of bunching around the tax threshold in Norway, suggesting limited tax evasion.

Read here: https://t.co/ivlyZM8Lsn

[MicroEconInsights @micro_econ]

📕 NEW from @mariusring:

'Wealth Taxation and Household Saving: Evidence from Norway'

Quasi-experimental variation in the Norwegian wealth tax is used to study how wealth taxation affects households’ saving and labor supply behaviour.

[MicroEconInsights @micro_econ]

The paper finds that higher exposure to wealth taxation causes households to save more as opposed to less. This increase in saving is primarily financed by increased labor earnings, rather than lower consumption.

[MicroEconInsights @micro_econ]

The average subsidized firm in the data promises to create 1,400 jobs and receives a subsidy worth $150 million over 10 years.

Read here: https://t.co/VgwSxs9f20

[MicroEconInsights @micro_econ]

📕 NEW from @cailin_slattery:

'Bidding for Firms: Subsidy Competition in the United States'

Firms are the clear winners from subsidy competition.

[MicroEconInsights @micro_econ]

The deployment of subsidies is estimated to be one of the largest economic development tools used in the United States. The paper finds that the scope for discretionary subsidies to be an effective tool to reduce geographic inequality in the U.S. is extremely limited.

[MicroEconInsights @micro_econ]

"If private firms cannot profitably finance college with equity or state-contingent debt, should the government subsidize these contracts?"

Read here: https://t.co/CMRFa3jHNl

[MicroEconInsights @micro_econ]

New from @djh1202 and @nhendren82:

'A better way to pay for college?'

There is a better way to fund undergraduate study, according to new research on the US.

[MicroEconInsights @micro_econ]

"The main finding is that adverse selection – the sorting of individuals with worse - than-average outcomes into insurance-like contracts – has unraveled private markets for these products, making them unprofitable for firms to offer."

[MicroEconInsights @micro_econ]

Read here: https://t.co/rc3kHlG4bQ

[MicroEconInsights @micro_econ]

New from @LagakosDavid, Mushfiq Mobarak @Yale and Michael Waugh @nberpubs:

'Welfare Effects of Subsidizing Seasonal Migration'

Migration experiments in rural Bangladesh offer a unique perspective on the potential benefits and costs of out-migration for rural individuals.

[MicroEconInsights @micro_econ]

Rural-urban migration may be a key pathway out of poverty.

Households that sent a migrant saw big increases in consumption, of around 30% on average per household member.

Our analysis also suggests that families send a migrant out only as a last resort.

[MicroEconInsights @micro_econ]

New from @juliana_londono (UCLA) and Javier Ávila-Mahecha:

Based on Colombia’s long experience with wealth taxes, a new study reveals both promise and peril.

Read our new article here: https://t.co/XYQinjO41y

[MicroEconInsights @micro_econ]

The findings raise urgent new questions about how labor demand changes as new work emerges, and how AI technologies will reshape tasks and occupations in the decades ahead.

Read here: https://t.co/OyvdGUfZRW

[MicroEconInsights @micro_econ]

New from @davidautor, Caroline Chin, Anna Salomons & Bryan Seegmiller:

Technological change transforms economies and labor markets, reshaping the types of jobs that are available, the wages they pay, and the skills they require.

[MicroEconInsights @micro_econ]

Our new article points to an implicit “race” between task displacement and new task creation in displacing and reinstating labor demand, and suggest that automation may now be pulling ahead in this race.

[MicroEconInsights @micro_econ]

New from Ulrich Doraszelski, Katja Seim, Michael Sinkinson, and Peichun Wang:

Ownership concentration and strategic supply reduction

Read our new article here:

https://t.co/C6Z9qAIMjB