H ow does cash-on-hand affect college enrollment decisions? A significant body of prior research has examined the impacts of family income on college enrollment (discussed more below), but it is unclear if cash transfers in the spring of the high school senior year, a time when many students are finalizing their college enrollment decisions, can also impact enrollment. On the one hand, students may face up-front, out-of-pocket costs that represent a barrier to entry for students from low-income families. In this case, additional cash-on-hand at the time of college enrollment decisions may have positive impacts on college attendance. On the other hand, college preparedness and preferences for college enrollment may be entirely determined prior to spring of the high school senior year. In this case, additional cash-on-hand at the time when students and families make college enrollment decisions may have no impact on these decisions. Quantifying the causal effects of cash-on-hand is challenging because cash-on-hand at the time of college enrollment decisions can be correlated with longer term disadvantages that leave students less academically qualified for college.In this paper, we implement a novel research design to estimate the effects of cash-on-hand on college enrollment decisions. We exploit quasi-experimental variation in tax refunds received during the spring of the high school senior year. The

Macroeconomic calibrations imply much larger labor supply elasticities than microeconometric studies. One prominent explanation for this divergence is that indivisible labor generates extensive margin responses that are not captured in micro studies of hours choices. We evaluate whether existing calibrations of macro models are consistent with micro evidence on extensive margin responses using two approaches. First, we use a standard calibrated macro model to simulate the impacts of tax policy changes on labor supply. Second, we present a meta-analysis of quasi-experimental estimates of extensive margin elasticities. We find that micro estimates are consistent with macro evidence on the steady-state (Hicksian) elasticities relevant for cross-country comparisons. However, micro estimates of extensive-margin elasticities are an order of magnitude smaller than the values needed to explain business cycle fluctuations in aggregate hours. Hence, indivisible labor supply does not explain the large gap between micro and macro estimates of intertemporal substitution (Frisch) elasticities. Our synthesis of the micro evidence points to Hicksian elasticities of 0.3 on the intensive and 0.25 on the extensive margin and Frisch elasticities of 0.5 on the intensive and 0.25 on the extensive margin.

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This paper exploits a combination of policy variation from multiple pension reforms in Austria and administrative data from the Austrian Social Security Database. Using the policy changes for identification, we estimate social security wealth and accrual elasticities in individuals’ retirement decisions. Next, we use these elasticities to estimate a dynamic programming model of retirement decisions. Finally, we use the estimated model to examine the labor supply and welfare consequences of potential social security reforms.

This paper exploits a combination of policy variation from multiple pension reforms in Austria and administrative data from the Austrian Social Security Database. Using the policy changes for identification, we estimate social security wealth and accrual elasticities in individuals' retirement decisions. Next, we use these elasticities to estimate a dynamic programming model of retirement decisions. Finally, we use the estimated model to examine the labor supply and welfare consequences of potential social security reforms.