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Some Practical Guidance for the Implementation of Propensity Score Matching Propensity Score Matching (PSM) has become a popular approach to estimate causal treatment effects. It is widely applied when evaluating labour market policies, but empirical examples can be found in very diverse fields of study. Once the researcher has decided to use PSM, he is(More)
Reallocation, Firm Turnover, and Efficiency: Selection on Productivity or Profitability? There is considerable evidence that producer-level churning contributes substantially to aggregate (industry) productivity growth, as more productive businesses displace less productive ones. However, this research has been limited by the fact that producer-level prices(More)
Incentives and Prosocial Behavior We develop a theory of prosocial behavior that combines heterogeneity in individual altruism and greed with concerns for social reputation or self-respect. Rewards or punishments (whether material or image-related) create doubt about the true motive for which good deeds are performed and this “overjustification effect” can(More)
Individual Risk Attitudes: New Evidence from a Large, Representative, Experimentally-Validated Survey This paper presents new evidence on the distribution of risk attitudes in the population, using a novel set of survey questions and a representative sample of roughly 22,000 individuals living in Germany. Using a question that asks about willingness to take(More)
This paper develops new economic models to synthesize and interpret the empirical literature on human skill formation. It presents simple formal economic models of child development that capture the essence of recent findings from the empirical literature. The goal of this essay is to provide a theoretical framework for interpreting the evidence from a vast(More)
What Makes an Entrepreneur and Does It Pay? Native Men, Turks, and Other Migrants in Germany This paper focuses on the entrepreneurial endeavors of immigrants and natives in Germany. We pay closer attention to Turks, since they are the largest immigrant group with a strong entrepreneurial tradition, and the self-employed Turks in Germany represent about 70%(More)
Earnings Functions, Rates of Return and Treatment Effects: The Mincer Equation and Beyond Numerous studies regress log earnings on schooling and report estimated coefficients as “Mincer rates of return”. A more recent literature uses instrumental variables. This chapter considers the economic interpretation of these analyses and how the availability of(More)
Why the Apple Doesn’t Fall Far: Understanding Intergenerational Transmission of Human Capital Parents with higher education levels have children with higher education levels. However, is this because parental education actually changes the outcomes of children, suggesting an important spillover of education policies, or is it merely that more able(More)
Much Ado About Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment? Governments the world over offer significant inducements to attract inward investment, motivated by the expectation of spillover benefits to augment the primary benefits of a boost to national income from new investment. This paper begins by reviewing possible sources(More)
Does Head Start Improve Children's Life Chances? Evidence from a Regression Discontinuity Design This paper exploits a new source of variation in Head Start funding to identify the program’s effects on health and schooling. In 1965 the Office of Economic Opportunity (OEO) provided technical assistance to the 300 poorest counties to develop Head Start(More)