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Social and Behavioral Sciences Commons™
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Articles 1 - 3 of 3
Full-Text Articles in Social and Behavioral Sciences
Referrals: Peer Screening And Enforcement In A Consumer Credit Field Experiment, Gharad Bryan, Dean Karlan, Jonathan Zinman
Referrals: Peer Screening And Enforcement In A Consumer Credit Field Experiment, Gharad Bryan, Dean Karlan, Jonathan Zinman
Dartmouth Scholarship
Empirical evidence on peer intermediation lags behind both theory and practice in which lenders use peers to mitigate adverse selection and moral hazard. Using a referral incentive under individual liability, we develop a two-stage field experiment that permits separate identification of peer screening and enforcement. Our key contribution is to allow for borrower heterogeneity in both ex ante repayment type and ex post susceptibility to social pressure. Our method allows identification of selection on repayment likelihood, selection on susceptibility to social pressure, and loan enforcement. Implementing our method in South Africa we find no evidence of screening but large enforcement …
Testing For Factor Price Equality With Unobserved Differences In Factor Quality Or Productivity, Andrew B. Bernard, Stephen J. Redding, Peter K. Schott
Testing For Factor Price Equality With Unobserved Differences In Factor Quality Or Productivity, Andrew B. Bernard, Stephen J. Redding, Peter K. Schott
Dartmouth Scholarship
We develop a method for identifying departures from relative factor price equality that is robust to unobserved variation in factor productivity. We implement this method using data on the relative wage bills of nonproduction and production workers across 170 local labor markets comprising the continental United States for 1972, 1992, and 2007. We find evidence of statistically significant differences in relative wages in all three years. These differences increase in magnitude over time and are related to industry structure in a manner that is consistent with neoclassical models of production. (JEL J31, J61, R23)
What Makes An Entrepreneur?, David G. Blanchflower, Andrew J. Oswald
What Makes An Entrepreneur?, David G. Blanchflower, Andrew J. Oswald
Dartmouth Scholarship
This article uses various micro data sets to study entrepreneurship. Consistent with the existence of capital constraints on potential entrepreneurs, the estimates imply that the probability of self‐employment depends positively upon whether the individual ever received an inheritance or gift. When directly questioned in interview surveys, potential entrepreneurs say that raising capital is their principal problem. Consistent with our theoretical model's predictions, the self‐employed report higher levels of job and life satisfaction than employees. Childhood psychological test scores, however, are not strongly correlated with later self‐employment.