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Interpersonal trust favors the expansion of organizations by allowing the delegation of decisions and tasks among anonymous others or people that interact only infrequently. We document these facts for a representative survey of Italian manufacturing firms and use this source of data to construct an industry-specific measure of need-for-delegation in production. We then show that trust shapes comparative advantage, as high-trust regions and countries exhibit larger value added and export shares in delegation-intensive industries relative to other industries. Such effects are associated with an increase in average firm size, while the number of firms is not significantly affected. Larger average size reflects in turn a shift of the distribution away from the smallest firms, consistently with the idea that trust allows organizations to expand beyond the narrow circle of family members and close friends.

As more studies focus on social trust and link it to the working of economies and societies, measuring properly this concept is growing in importance. Indeed, as it is a complex construct, entangled to other notions such as reciprocity, it is hard to obtain reliable and accurate measures of it. To mend for this, the OECD has launched Trustlab: a project aimed at creating the first internationally comparable and nationally representative database on trust and social preferences using both survey and experimental approaches. As of March 2018, Trustlab surveys have been run in 6 countries. In this paper we present the data and peculiarities of Trustlab Italy, in which, in addition to the measures of trust, data on personality traits and fertility intentions have been collected.

The vast majority of studies looking into the relationship between childbearing and subjective well-being uses overall measures where respondents either report their general level of happiness or their life satisfaction, leaving substantial doubt about the underlying mechanisms. However, life satisfaction and happiness are intuitively multidimensional concepts, simply because there cannot be only one aspect that affects individuals' well-being. In this study, by considering seventeen specific life satisfaction domains, these features come out very clearly. Whereas all the domains considered matter for the overall life satisfaction, only three of them, namely satisfaction with leisure, health and satisfaction with the partnership, change dramatically surrounding childbearing events. Even though we cannot generalize (since these results stems from one particular panel survey, i.e. Household Income and Labour Dynamics in Australia data), it appears that the typical anticipation and post-child decrease of life satisfaction, so often found in existing studies, stem from changes in these three domains.

Does removing the constraints of time and place of work increase the utility of workers and firms? We design a randomized experiment on a sample of workers in a large Italian company: workers are randomly divided into a treated group that engages in flexible space and time job (which we call “smart-working”) one day per week for 9 months and a control group that continues to work traditionally. By comparing the treated and control workers, we find causal evidence that the flexibility of smart-working increases the productivity of workers and improves their well-being and work-life balance. We also observe that the effects are stronger for women and that there are no significant spillover effects within workers of a team.

Discrimination in access to public services can act as a major obstacle towards addressing racial inequality. We examine whether racial discrimination exists in access to a wide spectrum of public services in the US. We carry out an email correspondence study in which we pose simple queries to more than 19,000 local public service providers. We find that emails are less likely to receive a response if signed by a black-sounding name compared to a white-sounding name. Given a response rate of 72% for white senders, emails from putatively black senders are almost 4 percentage points less likely to receive an answer. We also find that responses to queries coming from black names are less likely to have a cordial tone. Further tests suggest that the differential in the likelihood of answering is due to animus towards blacks rather than inferring socioeconomic status from race.

The assumption that people make decisions based on a constant set of preferences, so that choices should not depend on context-specific cues (anchors), is one of the cornerstones of economic theory. We reexamined the effects of an anchoring manipulation on the valuation of common market goods that was introduced in Ariely, Lowenstein and Prelec (2003). We found much weaker anchoring effects. We performed the same manipulation on the evaluation of binary lotteries, and we found no anchoring effects. This suggests limits on the robustness of strong anchoring effects. Hence, the evidence that people have arbitrary preferences may not be conclusive, and economic theory may still be valid in many cases of interest.

Since the Soviet Union's collapse, Georgia has undergone profound socio-political and demographic changes. This paper examines recent fertility trends in Georgia using GGS data from 2006. Results show that the postponement of first birth does not significantly account for the decline in childbearing, suggesting that decline is primarily due to a reduction of second-order births. I then investigate determinants of intentions to have a second child in three different periods: now, within three years and ever. Findings reveal that household income, education level and psychological well-being of the respondents as well as their satisfaction concerning the division of tasks within the couple have a significant effect on second birth decision-making. However, these determinants differ significantly regarding the timing of the intended child. On the other hand, there seems to be no effect of ideational changes, represented by a measure of the spread of post-materialist values within the society, on fertility intentions.

This paper investigates the role of extended parental leave in the return to work of mothers of newborn children. Exploiting the variability in policies offered by European countries, the paper studies the influence of statutory leave on the probability of returning to work at different ages of the child. Results suggest that providing paid leaves increases the probability of remaining at home when the child is under 3, and that lengthy statutory leaves are associated with being more likely to return eventually to work.

If individuals become aware of their stereotypes, do they change their behavior? We study this question in the context of teachers’ bias in grading immigrants and native children in middle schools. Teachers give lower grades to immigrant students compared to natives who have the same performance on standardized, blindly-graded tests. We then relate differences in grading to teachers’ stereotypes, elicited through an Implicit Association Test (IAT). We find that math teachers with stronger stereotypes give lower grades to immigrants compared to natives with the same performance. Literature teachers do not differentially grade immigrants based on their own stereotypes. Finally, we share teachers’ own IAT score with them, randomizing the timing of disclosure around the date on which they assign term grades. All teachers informed of their stereotypes before term grading increase grades assigned to immigrants. Revealing stereotypes may be a powerful intervention to decrease discrimination, but it may also induce a reaction from individuals who were not acting in a biased way.

Robots have radically changed the demand for skills and the role of workers in production at an unprecedented pace, with little scope for human capital adjustments. This has affected the job stability and the economic perspectives of large parts of the population in all industrialized countries. Recent evidence on the US labor market has shown negative effects of robots on employment and wages. In this study, we examine how exposure to robots and its consequences on job stability and economic uncertainty have affected individual demographic behavior. To establish this relationship, we use data from the American Community Survey and the International Federation of Robotics and we adopt an empirical strategy that relies on regional industry specialization before the advent of robots combined with the growth of robot adoption by industry. We first document the differential effect of robots on the labor market opportunities of men and women. We find that in regions that were more exposed to robots, the gender-income and labor-force-participation gaps declined. We then show that US regions affected by intense robot penetration experienced a decrease in new marriages, and an increase in both divorce and cohabitation. While there was no change in overall fertility rate, marital fertility declined, and there was an increase in out-of-wedlock births. Our findings are consistent with the hypothesis that the changes in labor markets triggered by robot adoption increased uncertainty, reduced the relative marriage-market value of men, and the willingness to commit for the long term.