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Drivers of Change: Employment Responses to the Lifting of the Saudi Female Driving Ban

By Chaza Abou Daher, Erica Field, Kendal Swanson, and Kate Vyborny

American Economic Review, September 2025

We conduct a field experiment to quantify the impact of the lifting of the Saudi women's driving ban on women's employment by randomizing rationed spaces in driver's training. Treated women are 41 percent more likely to be employed yet are 19 percent less...

Micro versus Macro Labor Supply Elasticities: The Role of Dynamic Returns to Effort

By Henrik Kleven, Claus Kreiner, Kristian Larsen, and Jakob Søgaard

American Economic Review, September 2025

We investigate long-run earnings responses to taxes in the presence of dynamic returns to effort. First, we develop a theoretical model of earnings determination with dynamic returns to effort. In this model, earnings responses are delayed and mediated by...

The Impact of Unions on the Wage Distribution: Evidence from Higher Education

By Michael Baker, Yosh Halberstam, Kory Kroft, Alexandre Mas, and Derek Messacar

American Economic Review: Insights

We estimate the impact of unionization on the wage distribution of Canadian university faculty using longitudinal administrative data on salaries and exploiting the staggered rollout of unionization across institutions. We find that unionization compres...

The Economics of Attention

By George Loewenstein and Zachary Wojtowicz

Journal of Economic Literature, September 2025

Attention is an important resource in the modern economy and plays an increasingly prominent role in economic analysis. We summarize research on attention from both psychology and economics with a particular emphasis on its capacity to explain documented ...

Housing and Inequality

By Yannis M. Ioannides and L. Rachel Ngai

Journal of Economic Literature, September 2025

We approach the literature on housing and inequality from two angles. One is the impact of unequal endowments on housing. The second is the "memberships" inequality associated with neighborhoods, namely, households' location in a geographic and social con...