{"title":"Labor supply response to windfall gains","authors":"Dimitris Georgarakos , Tullio Jappelli , Geoff Kenny , Luigi Pistaferri","doi":"10.1016/j.jpubeco.2025.105476","DOIUrl":"10.1016/j.jpubeco.2025.105476","url":null,"abstract":"<div><div>Using a large survey of euro area consumers, we conduct an experiment in which respondents report how they would adjust their labor market participation, hours worked, and job search effort (if not employed) in response to randomly assigned windfall gain scenarios. Windfall gains reduce labor supply, but only when the gains are substantial. At the extensive margin, gains of €25,000 or less have no effects, while gains between €50,000 and €100,000 reduce the probability of working by 1.5 to 3.5 percentage points. At the intensive margin, small gains produce no impact, while gains above €50,000 lead to a reduction of approximately one hour of work per week. The effects among women and workers near retirement are stronger. The share of non-employed respondents who stop or reduce job search intensity declines by 1 percentage point for each €10,000 in windfall gain, with the strongest effects observed among older individuals receiving €100,000.</div></div>","PeriodicalId":48436,"journal":{"name":"Journal of Public Economics","volume":"250 ","pages":"Article 105476"},"PeriodicalIF":3.4,"publicationDate":"2025-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145050369","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"When does corruption cause red tape? Bribe discrimination under asymmetric information","authors":"Martin Mattsson","doi":"10.1016/j.jpubeco.2025.105483","DOIUrl":"10.1016/j.jpubeco.2025.105483","url":null,"abstract":"<div><div>Under what circumstances does corruption cause inefficiencies, and when are bribes merely transfers? I propose a modified monopoly price discrimination model that shows under what circumstances corruption leads to an inefficiently high administrative burden in government-firm interactions. The model highlights the importance of the information the bureaucrat has regarding the firms’ willingness to pay (WTP) to avoid administrative burden and the bureaucrat’s decision to gather this information. The government-firm interaction will have a Pareto efficient level of administrative burden with perfect price (i.e., bribe) discrimination if the bureaucrat decides to investigate the firm and learn its WTP. If the cost of investigation is too high, the government official instead uses red tape to extract more bribes from firms with higher WTP, causing inefficiently high levels of administrative burden. I show that the model’s predictions are consistent with data from 186,277 government-firm interactions from 18 years of the Enterprise Survey covering 158 countries. I find that corruption leads to increased administrative burden when government officials have less information about the firm’s WTP and that the effect is larger for firms with a low WTP. This has several policy implications for how to reduce administrative burden and where to focus anti-corruption efforts.</div></div>","PeriodicalId":48436,"journal":{"name":"Journal of Public Economics","volume":"250 ","pages":"Article 105483"},"PeriodicalIF":3.4,"publicationDate":"2025-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145267529","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Economic activity and biodiversity in the United States","authors":"Yuanning Liang , Ivan Rudik , Eric Yongchen Zou","doi":"10.1016/j.jpubeco.2025.105482","DOIUrl":"10.1016/j.jpubeco.2025.105482","url":null,"abstract":"<div><div>The environmental impacts of economic activities extend beyond those directly affecting humans. This paper provides new evidence on the link between economic activity and ecosystem decline using a novel dataset that compiles longitudinal ecological sampling information at tens of thousands of locations across the United States between 1960 and 2015. Local shocks in economic activities, such as those driven by national military buildups, led to a significant reduction in species abundance, diversity, and stability, with one-third of the observed effects explained by the causal impact of air pollution. Government environmental regulations significantly mitigated pollution externalities.</div></div>","PeriodicalId":48436,"journal":{"name":"Journal of Public Economics","volume":"250 ","pages":"Article 105482"},"PeriodicalIF":3.4,"publicationDate":"2025-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145267528","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Measuring small business dynamics and employment with private-sector real-time data","authors":"André Kurmann , Etienne Lalé , Lien Ta","doi":"10.1016/j.jpubeco.2025.105477","DOIUrl":"10.1016/j.jpubeco.2025.105477","url":null,"abstract":"<div><div>This paper proposes a novel methodology to distinguish true business openings and closings from sample churn in private-sector data and to evaluate the representativeness of the resulting estimates by leveraging supplementary high-frequency information on individual business activity. The methodology produces both real-time estimates using only concurrent information and retrospective estimates that incorporate additional information as it becomes available, reflecting a fundamental trade-off between timeliness and accuracy. The methodology is applied to a real-time sample of small businesses widely used during the COVID-19 pandemic to demonstrate its usefulness under extreme circumstances. The application highlights the importance of properly accounting for business openings and closings and at the same time yields two important insights about small business dynamics during the pandemic: (i) small business employment in in-person service sectors experienced larger swings at the beginning of the pandemic than employment of larger businesses, primarily due to a spike in temporary closings; (ii) delayed access to loans from the Paycheck Protection Program significantly increased small business closings but had minimal impact on employment of continuing businesses, suggesting the program’s effectiveness operated primarily through preventing closures rather than preserving jobs at operating businesses.</div></div>","PeriodicalId":48436,"journal":{"name":"Journal of Public Economics","volume":"250 ","pages":"Article 105477"},"PeriodicalIF":3.4,"publicationDate":"2025-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145027803","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Revisiting the unintended consequences of Ban the Box","authors":"Anne M. Burton , David N. Wasser","doi":"10.1016/j.jpubeco.2025.105473","DOIUrl":"10.1016/j.jpubeco.2025.105473","url":null,"abstract":"<div><div>Ban-the-Box (BTB) policies intend to help formerly incarcerated individuals find employment by delaying when employers can ask about criminal records. We revisit the finding in Doleac and Hansen (2020) that BTB causes statistical discrimination against minority men. We correct miscoded BTB laws and show that estimates from the Current Population Survey (CPS) remain quantitatively similar, while those from the American Community Survey (ACS) now fail to reject the null hypothesis of no effect of BTB on employment. In contrast to the published estimates, these ACS results are statistically significantly different from the CPS results, indicating a lack of robustness across datasets. We do not find evidence that these differences are due to sample composition or survey weights. There is limited evidence that these divergent results are explained by the different frequencies of these surveys. Differences in sample sizes may also lead to different estimates; the ACS has a much larger sample and more statistical power to detect effects near the corrected CPS estimates.</div></div>","PeriodicalId":48436,"journal":{"name":"Journal of Public Economics","volume":"250 ","pages":"Article 105473"},"PeriodicalIF":3.4,"publicationDate":"2025-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145107625","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Wealth, gifts, and estate planning at the end of life","authors":"David Sturrock , Stefan Groot , Jan Möhlmann","doi":"10.1016/j.jpubeco.2025.105492","DOIUrl":"10.1016/j.jpubeco.2025.105492","url":null,"abstract":"<div><div>We show that gifts made to heirs before death are substantial and highly responsive to taxation. Using intergenerationally-linked administrative data from the Netherlands and exploiting variation in the timing of death, we find that single people (including widows) with children transfer around 10 % of their wealth to their children in anticipation of death. This is almost entirely in the form of tax-exempt gifts. Exploiting bunching at kink points in the gift tax schedule and a reform to inheritance taxation, we estimate elasticities of gifts and wealth to taxation and find that tax-avoidance accounts for at least a significant minority of this deathbed giving. The ability to make tax-favoured gifts means that the revenue-maximising flat inheritance tax rate is at most 37 %. Equalising the tax rate on deathbed gifts and inheritances at death would increase revenues raised from singles by 10 %.</div></div>","PeriodicalId":48436,"journal":{"name":"Journal of Public Economics","volume":"250 ","pages":"Article 105492"},"PeriodicalIF":3.4,"publicationDate":"2025-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145221125","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Kerwin Kofi Charles , Jonathan Guryan , Kyung H. Park
{"title":"Corrigendum to “Consumer sentiment towards Asians in the early days of the Covid-19 pandemic”. [J. Public Econom. 247 (2025) 105396]","authors":"Kerwin Kofi Charles , Jonathan Guryan , Kyung H. Park","doi":"10.1016/j.jpubeco.2025.105481","DOIUrl":"10.1016/j.jpubeco.2025.105481","url":null,"abstract":"","PeriodicalId":48436,"journal":{"name":"Journal of Public Economics","volume":"250 ","pages":"Article 105481"},"PeriodicalIF":3.4,"publicationDate":"2025-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145363386","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"New employer payroll taxes and entrepreneurship","authors":"Audrey Guo , Melanie Wallskog","doi":"10.1016/j.jpubeco.2025.105469","DOIUrl":"10.1016/j.jpubeco.2025.105469","url":null,"abstract":"<div><div>How costly are taxes for young firms? In this paper, we demonstrate that even small payroll taxes significantly distort hiring decisions and employment growth. First, we leverage cross-sectional variation in the taxes faced by new employers to study how these taxes affect entrepreneurs’ decisions to become employers. We find that higher taxes discourage new firms from hiring their first workers; we estimate an elasticity of the number of new employers to taxes of −0.1. Second, we study tax changes a new employer faces after it enters. We find that higher taxes lead more firms to exit, while also reducing employment for those who survive and leading some firms to avoid taxes by using non-taxable contract labor.</div></div>","PeriodicalId":48436,"journal":{"name":"Journal of Public Economics","volume":"250 ","pages":"Article 105469"},"PeriodicalIF":3.4,"publicationDate":"2025-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145050368","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Health effects of cash transfers: Evidence from the Finnish basic income experiment","authors":"Kari Hämäläinen , Miska Simanainen , Jouko Verho","doi":"10.1016/j.jpubeco.2025.105480","DOIUrl":"10.1016/j.jpubeco.2025.105480","url":null,"abstract":"<div><div>This study provides causal evidence that cash transfer programs have the potential to alleviate the income–health trap in advanced countries. We analyze the Finnish basic income experiment, which replaced the minimum unemployment benefits with a guaranteed income for 2,000 randomly selected unemployed persons during the years 2017–2018. The guaranteed income removed all job–search requirements, but participants could still choose to claim unemployment benefits and comply with related obligations. The experiment also increased average income by 9 %–11 %, for two reasons: basic income payments overlapped with benefits due from the pre-experiment period, and basic income was not tapered against labor earnings. Using register data on all prescription medications and secondary care visits, we find that the experiment reduced psychotropic drug use by 8 %–11 %. Our results also suggest a decline in outpatient mental health visits for secondary care. No effects were detected for other health outcomes. Since most participants opted out of the unconditionality aspect of the experiment and continued to claim unemployment benefits, we attribute the observed health effects primarily to the increased income.</div></div>","PeriodicalId":48436,"journal":{"name":"Journal of Public Economics","volume":"250 ","pages":"Article 105480"},"PeriodicalIF":3.4,"publicationDate":"2025-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145107533","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Who benefits from pharmaceutical price controls? Evidence from India","authors":"Emma B. Dean","doi":"10.1016/j.jpubeco.2025.105478","DOIUrl":"10.1016/j.jpubeco.2025.105478","url":null,"abstract":"<div><div>This study examines the impacts of pharmaceutical price controls in a middle-income country setting, focusing on an implementation of pharmaceutical price ceilings in India. In the short-term, it finds that price controls led to declining prices for directly-impacted and competing products and increased market share for high-quality products. However, after price controls were implemented, low-priced firms were more likely to exit price-controlled markets and sales of price-controlled products declined in markets with stronger price controls. The benefits of the legislation were largest for quality-sensitive consumers, while the downsides most affected price-sensitive consumers.</div></div>","PeriodicalId":48436,"journal":{"name":"Journal of Public Economics","volume":"250 ","pages":"Article 105478"},"PeriodicalIF":3.4,"publicationDate":"2025-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145027804","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}