Abstract We study how online job search advice affects job search behavior and labor market outcomes of unemployed workers. In a large-scale field experiment embedded in the online platform of the Danish public employment service, we provide job seekers with vacancy information and occupational recommendations. Using a two-stage randomized design with regionally varying treatment intensities, we examine both direct effects of advice and treatment spillovers. We find that advice significantly inc
Abstract Quality regulation seeks to ensure quality and foster competition by reducing vertical differentiation, but it may also have adverse effects on market structure. We study this trade-off in the context of pharmaceutical bioequivalence, which is the primary quality standard for generic drugs. By exploiting the introduction of bioequivalence in Chile, we find that stronger regulation reduced the number of drugs in the market by 18% and increased average paid prices by 13%. We estimate a mo
Abstract This paper studies the impact of MOOC certificates on labor market outcomes using a Coursera initiative that offered free certificates during the COVID-19 pandemic. Although eligibility for free certificates was randomized, course completion rates were low-only 6.2% of eligible participants completed at least one course-so we rely on an event-study design to estimate the effects of receiving a certificate. The results show that MOOC certificates increases formal employment by about 5 pe
Abstract We study a neoclassical growth model with population growth and heterogeneous agents. The model can be interpreted as either a Ramsey model with heterogeneous discounting and entry of new agents with zero endowments or an OLG model with infinitely-lived agents with different discount factors. We prove that, in the unique stationary equilibrium, agents other than the most patient may hold capital. Introducing public debt, a labor income tax, or a capital subsidy allows more agent types t
Abstract We show that gambling-style behaviour is important in politics: politicians ‛gamble for re-election‚ in the context of a political leader selection. We exploit unique access to leaked information on MPs' individual decisions in the 2021 leadership election of Germany's centre-right parties. MPs are more likely to vote for a riskier candidate when facing lower re-election chances. These results match the predictions derived from our model of rational risk-taking. Gambling for re-election
Abstract To study competition, innovation, and industry dynamics that arise as a result of their interaction, we develop a new oligopolistic general-equilibrium Schumpeterian growth model. This model ties together the endogenous growth, oligopolistic competition, and dynamic industrial organization literatures in a single unified framework. Within each industry, there are an endogenously determined number of large firms (“superstars”) that compete á la Cournot and a continuum of small firms whic
Abstract Efficient adaptation to fluctuating market conditions is critical to economic agents’ survival and prosperity. Although theory highlights the value of relational contracts in facilitating adaptation, empirical evidence remains limited. Using wholesale transaction data, we show that a buyer initially sourcing on the spot market may repeatedly trade with a seller, offering a price premium in exchange for a relational contract that assures supply. The relational premium adjusts strategical
Abstract When financial constraints bind, firms adjust employment in response to cash flow shocks. A 2010 revaluation of business rates, a UK tax levied on business-occupied properties, implied that similar firms, occupying similar properties in narrow geographical locations, experienced different tax changes. I find that, on average, for every ￡1 of additional cash flow triggered by the tax change, 39 pence were spent on employment, with small and leveraged firms responding the most. I use thes
