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It’s the love child of economics and psychology – behavioural economics. It tries to explain people’s rational, or better irrational, behaviour when it comes to financial decision-making and consumption patterns. On Big Ideas, two experts outline the main lessons of behavioural economics and discuss the...
Does faster economic growth increase pressure for democratic change, or reduce it? Using data for 154 countries for the period 1963-2007, the authors examine the short-run relationship between economic growth and moves toward and away from greater democracy. To address the potential endogeneity of economic...
This paper tests for gender discrimination by sending fake CVs to apply for entry-level jobs. Female candidates are more likely to receive a callback, with the difference being largest in occupations that are more female-dominated.
The top 10 per cent of teachers are twice as effective as the bottom 10 per cent, according to this paper.
The research, by ANU economist Dr Andrew Leigh, differs from previous Australian studies in that it uses a measure of teacher effectiveness based...
Using data from 191 Australian state elections, the authors test how voters respond to economic conditions. They find that unemployment has a strong impact on election outcomes, with each additional percentage point of unemployment reducing the incumbent's re-election probability by 3-5 per cent. However, when...
This paper investigates the relationship between inequality and intergenerational mobility, comparing fathers' estimated earnings with the earnings of their sons.
The authors find that sons who grew up in countries that were more unequal in the 1970s were less likely to have experienced social...
Two of the less commonly discussed impacts of immigration are the relationship between ethno-linguistic diversity and interpersonal trust, and between diversity and support for a generous welfare state. In this paper, Andrew Leigh assesses the evidence on trust and diversity, reviews data on trust and...
Several cross-country studies have observed a negative correlation between inequality and interpersonal trust. Using data from 59 countries, Andrew Leigh finds that a rise in inequality does reduce trust.
Analysing the characteristics of low wage workers, Andrew Leigh finds that those who earn near-minimum wages are disproportionately female, unmarried and young, without post-school qualifications and overseas born. About a third of near-minimum wage workers are the sole worker in their household. Using various plausible...