Working Paper: NBER ID: w16062
Authors: John A. List; Imran Rasul
Abstract: We overview the use of field experiments in labor economics. We showcase studies that highlight the central advantages of this methodology, which include: (i) using economic theory to design the null and alternative hypotheses; (ii) engineering exogenous variation in real world economic environments to establish causal relations and learning about the underlying mechanisms; and (iii) engaging in primary data collection and often working closely with practitioners. To highlight the potential for field experiments to inform issues in labor economics, we organize our discussion around the individual life cycle. We therefore consider field experiments related to the accumulation of human capital, the demand and supply of labor, behavior within firms, and close with a brief discussion of the nascent literature of field experiments related to household decision-making.
Keywords: Field experiments; Labor economics; Causal relations; Human capital; Policy design
JEL Codes: C9; C93; J0
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Field experiments (C93) | establish causal relations (C99) |
| Field experiments (C93) | learn about the mechanisms (C99) |
| Field experiments (C93) | insights into human capital accumulation (J24) |
| Field experiments (C93) | insights into labor market behavior (J29) |
| Field experiments (C93) | insights into firm dynamics (L25) |
| Insights from field experiments (C93) | complement traditional economic theories (D10) |
| Insights from field experiments (C93) | enhance understanding of labor market dynamics (J48) |
| Field experiments (C93) | identify behavioral responses (C99) |
| Field experiments (C93) | inform policy design (D78) |