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Revealed Beliefs and the Marriage Market Return to Education

Quarterly Journal of Economics 2025 140(3), 2107-2162 open access
We develop a new methodology to estimate subjective beliefs from hypothetical-choice data. Our identification approach is based on the novel insight that by varying the amount of information on future realizations of stochastic variables, discrete-choice experiments can identify not only preferences but also subjective beliefs. We formally prove this result in a general setting and apply it to design a strategic survey instrument to measure Rajasthani parents’ subjective beliefs over the joint distribution of girls’ age of marriage, education, and marriage match quality. Our approach allows us to quantify the importance of perceived marriage market returns to education and youth, and perform various counterfactual simulation exercises. We find that eliminating the perceived marriage market return to education causes a 60% drop in the number of girls still in school at age 16, and almost none continue their education by age 18. Responses to our strategic survey instrument allow us accurately to predict realized schooling trajectories in follow-up data we collect from the same sample five years after our experimental data collection.

What do Consumers Consider Before They Choose? Identification from Asymmetric Demand Responses

Quarterly Journal of Economics 2021 136(3), 1611-1663 open access
Consideration set models generalize discrete-choice models by relaxing the assumption that consumers consider all available options. Determining which options were considered has previously required either survey data or restrictions on how attributes affect consideration or utility. We provide an alternative route. In full-consideration models, choice probabilities satisfy a symmetry property analogous to Slutsky symmetry in continuous-choice models. This symmetry breaks down in consideration set models when changes in characteristics perturb consideration. We show that consideration probabilities are constructively identified from the resulting asymmetries. We validate our approach in a lab experiment where consideration sets are known and then apply our framework to study a “smart default” policy in Medicare Part D, wherein consumers are automatically reassigned to lower-cost prescription drug plans with the option of opting out. Full-consideration models imply that such a policy will be ineffective because consumers will opt out to avoid switching costs. Allowing for inattention, we find that defaulting all consumers to lower-cost options produces negligible welfare benefits on average, but defaulting only consumers who would save at least $300 produces large benefits.

The Gender Wage Gap in an Online Labor Market: The Cost of Interruptions

The Review of Economics and Statistics 2025 107(1), 55-64
This paper analyzes gender differences in working patterns and wages on Amazon Mechanical Turk, a popular online labor platform. Using information on 2 million tasks, we find no gender differences in task selection nor experience. Nonetheless, women earn 20% less per hour on average. Gender differences in working patterns are a significant driver of this wage gap. Women are more likely to interrupt their working time on the platform with consequences for their task completion speed. A follow-up survey shows that the gender differences in working patterns and hourly wages are concentrated among workers with children.

Consume Now or Later? Time Inconsistency, Collective Choice, and Revealed Preference

American Economic Review 2014 104(12), 4147-4183 open access
We develop a revealed preference methodology that allows us to explore whether time inconsistencies in household choice are the product of individual preference nonstationarities or the result of individual heterogeneity and renegotiation within the household. An empirical application to household-level microdata highlights that an explicit recognition of the collective nature of household choice enables the observed behavior to be rationalized by a theory that assumes preference stationarity at the individual level. The methodology created in this paper also facilitates the recovery of theory-consistent discount rates for each individual within particular household under study. (JEL E24, F13, F16)

The Dynamics of Abusive Relationships

Quarterly Journal of Economics 2024 139(4), 2135-2180 open access
Domestic abuse encompasses a range of damaging behaviors beyond physical violence, including economic and emotional abuse. We analyze the impact of cohabiting with an abusive partner on victims’ economic outcomes. In so doing, we highlight the systematic role of economic suppression in such relationships. Using Finnish administrative data and a matched-control event-study design, along with a within-individual comparison of outcomes across relationships, we document three new facts. First, women who begin relationships with (eventually) physically abusive men suffer large and significant earnings and employment falls immediately upon cohabiting with the abusive partner. Second, the decline in economic outcomes is non-monotonic in women’s pre-cohabitation outside options. Third, men who are violent against women in any capacity impose economic costs on all their female partners, even those who do not report physical violence. To rationalize these findings, we develop a new dynamic model of abusive relationships where women do not perfectly observe their partner’s type, and abusive men have an incentive to use economic suppression to sabotage women’s outside options and their ability to later exit the relationship.

Violence against Women at Work

Quarterly Journal of Economics 2024 139(2), 937-991
We link every police report in Finland to administrative data to identify violence between colleagues and the economic consequences for victims, perpetrators, and firms. This new approach to observe when one colleague attacks another overcomes previous data constraints limiting evidence on this phenomenon to self-reported surveys that do not identify perpetrators. We document large, persistent labor market effects of between-colleague violence on victims and perpetrators. Male perpetrators experience substantially weaker consequences after attacking female colleagues. Perpetrators’ relative economic power in male-female violence partly explains this asymmetry. Turning to broader implications for firm recruitment and retention, we find that male-female violence causes a decline in the proportion of women at the firm, both because fewer new women are hired and current female employees leave. Management plays a key role in mediating the effects on the wider workforce. Only male-managed firms lose women. Female-managed firms exhibit a key difference relative to male-managed firms: male perpetrators are less likely to remain employed after attacking their female colleagues.