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On Her Own Account: How Strengthening Women's Financial Control Impacts Labor Supply and Gender Norms

By Erica Field, Rohini Pande, Natalia Rigol, Simone Schaner, and Charity Troyer Moore

American Economic Review, July 2021

Can increasing control over earnings incentivize a woman to work, and thereby influence norms around gender roles? We randomly varied whether rural Indian women received bank accounts, training in account use, and direct deposit of public sector wages int...

Informal Labor and the Efficiency Cost of Social Programs: Evidence from Unemployment Insurance in Brazil

By François Gerard and Gustavo Gonzaga

American Economic Journal: Economic Policy, August 2021

It is widely believed that the presence of a large informal sector increases the efficiency cost of social programs in developing countries. We evaluate such claims for the case of unemployment insurance (UI) by combining an optimal UI framework with co...

Using Nonlinear Budget Sets to Estimate Extensive Margin Responses: Method and Evidence from the Earnings Test

By Alexander M. Gelber, Damon Jones, Daniel W. Sacks, and Jae Song

American Economic Journal: Applied Economics, October 2021

We estimate the impact of the Social Security Annual Earnings Test (AET) on older workers' employment. The AET reduces social security claimants' current benefits in proportion to their earnings in excess of an exempt amount. Using a regression kink desig...

Assortative Matching or Exclusionary Hiring? The Impact of Employment and Pay Policies on Racial Wage Differences in Brazil

By François Gerard, Lorenzo Lagos, Edson Severnini, and David Card

American Economic Review, October 2021

We measure the effects of firm policies on racial pay differences in Brazil. Non-Whites are less likely to be hired by high-wage firms, explaining about 20 percent of the racial wage gap for both genders. Firm-specific pay premiums for non-Whites are also...

Labor Rationing

By Emily Breza, Supreet Kaur, and Yogita Shamdasani

American Economic Review, October 2021

This paper measures excess labor supply in equilibrium. We induce hiring shocks—which employ 24 percent of the labor force in external month-long jobs—in Indian local labor markets. In peak months, wages increase instantaneously and local aggregate em...