Integrating ethnic minorities in the classroom enriches the educational environment, but some studies find that it lowers student test scores. This column explores what may drive such effects, using data from Taiwanese schools, where Indigenous students are randomly assigned to different classrooms. Students placed in classrooms with minority peers showed less effort, their parents invested […]
Policies aimed at reducing economic fluctuations primarily focus on disruptive recessions, but booms may also have hidden costs. A rise in wages increases the opportunity cost of schooling, potentially leading students to abandon school prematurely. This column examines the impact of a tax reform in Iceland that cut taxes to zero for one year and […]
The 2023 Nobel Committee awarded the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to Claudia Goldin. Among her many contributions is the emphasis on the non-monotonic trend in women’s employment over the course of US history, as the result of structural change and evolving social norms regarding women’s responsibilities for home […]
The ECB’s Governing Council moved to the preparation phase of the digital euro in October 2023. This column studies the implications of the digital euro for financial stability. New survey data indicate that German households are open to the digital euro. However, the demand for digital euro also raises financial stability concerns as households seem […]
