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Disadvantaged boys benefit most from early school years

Research by Christian Dustmann and Thomas Cornelissen finds that boys from disadvantaged backgrounds benefit most from early schooling, helping to narrow the skills gap (60-80%) with boys from high socio-economic backgrounds.

Press Release

Discussion Paper

UCL News

The Times

The Indepedent

Tes

Housing costs have exacerbated income equality in Germany

CReAM Research by Christian Dustmann and co-authors finds that changes in housing expenditures dramatically exacerbated the rise in income inequality in Germany since the mid-1990s. The research was covered on the German press.

Press Release

Discussion Paper

VoxEU

FAZ

UCL News

Immigrant and disadvantaged children benefit most from early childcare

Attending universal childcare from age three significantly improves the school readiness of children from immigrant and disadvantaged family backgrounds.

Press Release

Discussion Paper

iNews

UCL News

FAZ

VoxEU

 

Brexit

BBC Three Counties

Christian Dustmann discussing Theresa May's comments on EU workers 'jumping the queue' on BBC Three Counties.

CReAM seminar

CReAM - Seminar in Applied Economics Series
Michael Kremer (Harvard University)

'The Endowment Effect and Collateralized Loans'

Event date: Monday 26th November 2018
Time: 4:00-5:30 Place: Ricardo LT Speaker Room: 224

This project tests a novel theoretical mechanism for low take-up of collateralized credit. Using a field experiment with a lender in Kenya, we vary whether already-owned assets serve as collateral, or whether instead the new asset being financed by the loan itself serves as collateral, as in car loans. The experimental design holds everything except existing ownership of the collateral constant. We find that borrowers display an endowment effect over their existing assets, and thus dislike loans that place existing assets at risk of loss by providing them as collateral. They are willing to pay 8% per month higher interest to instead collateralize using the new asset being financed by the loan itself. We next show that borrowers systematically under-predict their future attachment to new assets. After taking a loan collateralized with a new asset, borrowers become attached to the new asset, and exert similar repayment effort to loans collateralized with existing assets. We develop and estimate a structural model to provide behavioral parameters and to better understand the welfare consequences of such loans.