This paper examines evidence on the effect of class size on student achievement. First, it is
shown that results of quantitative summaries of the literature, such as Hanushek (1997), depend
critically on whether studies are accorded equal weight. Hanushek summarizes…

Who sets CEO pay? Our standard answer to this question has been shaped by principal agent theory:
shareholders set CEO pay. They use pay to limit the moral hazard problem caused by the low ownership
stakes of CEOs. Through bonuses,…

This paper summarizes and tries to reconcile evidence from the microeconometric and empirical
macro growth literatures on the effect of schooling on income and GDP growth. Much
microeconometric evidence suggests that education is an important causal determinant of income
for…

In this paper we take a “market-based” approach to examine whether increased school expenditures
are valued by potential residents and whether the current level of public school provision is inefficient. We
do so by employing an instrumental variables strategy to…

Some argue that a high union wage premium and the industrial council system are important causes
of inflexibility in the South African labor market. We estimate union premia on the order of 20 percent for
African workers and 10 percent…

This paper examines the short-run impacts of a change in residential neighborhood on the
well-being of low-income families, using evidence from a program in which eligibility for a housing
voucher was determined by random lottery. We examine the experiences of…