Abhijit Banerjee

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Most papers that employ Differences-in-Differences estimation (DD) use many years of data and focus on serially correlated outcomes but ignore that the resulting standard errors are inconsistent. To illustrate the severity of this issue, we randomly generate placebo laws in state-level data on female wages from the Current Population Survey. For each law,(More)
This paper presents the results of two randomized experiments conducted in schools in urban India. A remedial education program hired young women to teach students lagging behind in basic literacy and numeracy skills. It increased average test scores of all children in treatment schools by 0.28 standard deviation, mostly due to large gains experienced by(More)
This paper reports on the first randomized evaluation of the impact of introducing the standard microcredit group-based lending product in a new market. In 2005, half of 104 slums in Hyderabad, India were randomly selected for opening of a branch of a particular microfinance institution (Spandana) while the remainder were not, although other MFIs were free(More)
Theories based on incomplete contracting suggest that small organizations may do better than large organizations in activities that require the processing of soft information. We explore this idea in the context of bank lending to small firms, an activity that is typically thought of as relying heavily on soft information. We find that large banks are less(More)
I n what turned out to be a rhetorical master-move, the 1990 World Development Report from the World Bank defined the “extremely poor” people of the world as those who are currently living on no more than $1 per day per person, measured at the 1985 purchasing power parity (PPP) exchange rate. In 1993, the poverty line was updated to $1.08 per person per day(More)
Growth theory traditionally assumed the existence of an aggregate production function, whose existence and properties are closely tied to the assumption of optimal resource allocation within each economy. We show extensive evidence, culled from the microdevelopment literature, demonstrating that the assumption of optimal resource allocation fails radically.(More)
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1739 To the extent that students benefit from having higher-achieving peers, tracking students into separate classes by prior achievement could disadvantage low-achieving students while benefiting high-achieving students, thereby exacerbating inequality (Denis Epple, Elizabeth Newlon, and Richard Romano 2002). On the other hand, tracking could potentially(More)
This article evaluates the impact of a large cash transfer program in South Africa on children’s nutritional status and investigates whether the gender of the recipient affects that impact. In the early 1990s the benefits and coverage of the South African social pension program were expanded for the black population. In 1993 the benefits were about twice(More)