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A common view is that there is little correlation between rm performance and CEO pay. Using a new fteen-year panel data set of CEOs in the largest, publicly traded U. S. companies, we document a strong relationship between rm performance and CEO compensation. This relationship is generated almost entirely by changes in the value of CEO holdings of stock and(More)
A large body of empirical work in labor and public economics analyzes the behavioral response of earnings to taxes and transfers using the standard static model where agents choose to supply hours of work until the marginal disutility of work equals marginal utility of disposable (net-of-tax) income. 1 This model, which from now on we call the standard(More)
welfare and tax policy were changed to encourage work by single mothers. The Earned Income Tax Credit was expanded, welfare beneets were cut, welfare time limits were added, and welfare cases were terminated. Medicaid for the working poor was expanded, as were training programs and child care. During this same time period there were unprecedented increases(More)
This paper investigates whether individuals feel worse off when others around them earn more. In other words, do people care about relative position and does " lagging behind the Joneses " diminish well-being? To answer this question, I match individual-level data containing various indicators of well-being to information about local average earnings. I(More)
Although exercise prices for executive stock options can be set either below or above the grant-date market price, in practice virtually all options are granted at the money. We offer an economic rationale for this apparent puzzle, by showing that pay-to-performance incentives for risk-averse, undiversified executives are typically maximized by setting(More)
We examine short-run impacts of changes in residential neighborhoods on the well-being of families residing in high-poverty public housing projects who received Section 8 housing vouchers through a random lottery. Households offered vouchers experienced improvements in multiple measures of well-being relative to a control group, including increased safety,(More)
We analyze a randomized experiment in which 14,000 tax filers in H&R Block offices in St. Louis received matches of zero, 20 percent, or 50 percent of IRA contributions. Take-up rates were 3 percent, 8 percent, and 14 percent, respectively. Among contributors, contributions, excluding the match, averaged $765 in the control group and $1100 in the match(More)
Experimental estimates from Moving to Opportunity (MTO) show no significant impacts of moves to lower-poverty neighborhoods on adult economic self-sufficiency four to seven years after random assignment. The authors disagree with Clampet-Lundquist and Massey's claim that MTO was a weak intervention and therefore uninformative about neighborhood effects. MTO(More)