Education has long been considered a bulwark in hard times. Now new research shows that acquiring additional years of schooling can help prevent people from losing their jobs during economic downturns or recessions. But what makes acquiring education protective? Does it increase productivity? Does it enable workers to work in recession-proof sectors? Or does the economic … [Read more...] about How Education Protects Workers During Recessions
Chile and Colombia are two of the most solid economies in Latin America and the Caribbean. While in 2020 they contracted 5.8% and 6.8%, respectively, they were among the strongest performers in the region amid difficult circumstances. Both are open market economies, with flexible exchange rates and access to foreign markets. They also have faced social unrest and protest … [Read more...] about Why Chileans Brought Money Home While Colombians Sent It Abroad in 2020
How do people make decisions? How does behavior affect public policies? And can policymakers nudge people into doing things that will benefit them and society at large? Many issues related to the success of public policies come down to a, sometimes understudied, factor: human behavior. In our Behavioral Economics for Better Public Policies course, we focus on that fundamental … [Read more...] about The Free Online Behavioral Economics Course Is Going Strong. Have You Taken It?
The government says it is progressing in its fight against the COVID-19 pandemic, but firms distrust the news, delaying investments and hiring and slowing economic recovery. A firm manager distrusts her own employees and refuses to delegate responsibilities, complicating efforts to invest, innovate and move into new markets. Citizens distrust firms and demand excessive … [Read more...] about When the Lack of Trust Cripples Productivity and Growth
It would always get a laugh from readers of Peanuts. Lucy would hold the football for Charlie Brown to kick. Then she would pull it back at the last minute and send him flying onto his back. The gag, repeated over and over throughout the years, was funny because of Charlie's absurdly trusting behavior. Having been tricked so many times by Lucy, didn't he realize she would trick … [Read more...] about Building Trust for Social Cohesion and Growth in Latin America and the Caribbean