Most of us are biased. We scan the world, making emotional and often automatic judgments about people based on factors like gender, race and socio-economic status. We misjudge people. When it comes to hiring, this can result not only in unfair decisions that penalize deserving candidates, but to more homogenous—and less creative and productive—groups of employees. As we … [Read more...] about Leveraging Behavioral Insights for a More Equitable Workplace
Microeconomics and Competitiveness
Do welfare programs create dependency? For decades, that question has roiled the United States where supporters call such programs an essential lifeline for the poor and critics condemn them as encouraging laziness and the welfare trap. Latin America and the Caribbean is no stranger to the debate, especially as it concerns conditional cash transfer (CCT) programs. Those … [Read more...] about Cash Transfer Programs: Challenging the Welfare Myth
Cass Sunstein is a Harvard law professor, a former administrator of the White House Office of Information and Regulatory Affairs, and one of the most prolific and admired legal scholars in the United States. He is also a leading light in the field of behavioral economics whose 2008 pioneering book Nudge, co-written with Nobel Prize laureate Richard Thaler, describes the many … [Read more...] about Cass Sunstein on Misconceptions, Biases and How Latin America Can Harness Behavioral Economics
Can interventions from behavioral economics get people to pay their taxes? It is a question of the greatest urgency in Latin America and the Caribbean where evasion of personal and corporate income taxes reaches as high as 50% in many countries, with significant impact on their scope of options. The short answer is that behavioral interventions can be crucial. As has been … [Read more...] about Behavioral Interventions on One Tax Can Boost Compliance Across the Board
We environmental economists have long advocated carbon taxes as the fastest and most efficient way to reduce greenhouse-gas emissions from cars and power plants and prevent catastrophic global warming later this century. But carbon taxes can be politically problematic. Witness recent events in France where efforts by the government to increase fuel taxes triggered weeks of … [Read more...] about Can We Reduce Emissions While We Wait for a Carbon Tax?