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This study explores the link between the capital share and income inequality over the past four decades across 56 countries. Calculating the capital share from national accounts alongside top income share data from the World Inequality…

Employers are adopting algorithmic hiring technology throughout the recruitment pipeline. Algorithmic fairness is especially applicable in this domain due to its high stakes and structural inequalities. Unfortunately, most work in this…

Technological change can have profound impacts on the labor market. Decades of research have made it clear that technological change produces winners and losers. Machines can replace some types of work that humans do, while new technologies…

Machine learning models are increasingly being used in important decision-making software such as approving bank loans, recommending criminal sentencing, hiring employees, and so on. It is important to ensure the fairness of these models so…

We study the impact of strategic behavior in labor markets characterized by algorithmic monoculture, where firms compete for a shared pool of applicants using a common algorithmic evaluation. In this setting, "naive" hiring strategies lead…

Criticality has been proposed as a mechanism for the emergence of complexity, life, and computation, as it exhibits a balance between robustness and adaptability. In classic models of complex systems where structure and dynamics are…

In the context of a large class of stochastic processes used to describe the dynamics of wealth growth, we prove a set of inequalities establishing necessary and sufficient conditions in order to avoid infinite wealth concentration. These…

Industries can enter one country first, and then enter its neighbors' markets. Firms in the industry can expand trade network through the export behavior of other firms in the industry. If a firm is dependent on a few foreign markets, the…

Corruption is a social plague: gains accrue to small groups, while its costs are borne by everyone. Significant variation in its level between and within countries suggests a relationship between social structure and the prevalence of…

As a simple model for criminal behavior, the traditional two-strategy inspection game yields counterintuitive results that fail to describe empirical data. The latter shows that crime is often recurrent, and that crime rates do not respond…

Systemic bias with respect to gender, race and ethnicity, often unconscious, is prevalent in datasets involving choices among individuals. Consequently, society has found it challenging to alleviate bias and achieve diversity in a way that…

In our multi-agent model agents generate wealth from repeated interactions for which a prisoner's dilemma payoff matrix is assumed. Their gains are taxed by a government at a rate $\alpha$. The resulting budget is spent to cover…

This paper examines the impact of racial discrimination in hiring on employment, wages, and wealth disparities between black and white workers. Using a labor search-and-matching model with racially prejudiced and non-prejudiced firms, we…

Poor economies not only produce less; they typically produce things that involve fewer inputs and fewer intermediate steps. Yet the supply chains of poor countries face more frequent disruptions---delivery failures, faulty parts, delays,…

We investigate an agent-based model for the emergence of corruption in public contracts. There are two types of agents: business people and public servants. Both business people and public servants can adopt two strategies: corrupt or…

This paper provides a new theory of the observed co-movement between overall wage inequality and its between-firm component. We develop and solve analytically a frictionless sorting model with two-sided heterogeneity, in which firms consist…

We argue that the recent growth in income inequality is driven by disparate growth in investment income rather than by disparate growth in wages. Specifically, we present evidence that real wages are flat across a range of professions,…

Prior work on the complexity of bribery assumes that the bribery happens simultaneously, and that the briber has full knowledge of all voters' votes. But neither of those assumptions always holds. In many real-world settings, votes come in…

We develop a game-theoretic framework for the study of competition between firms who have budgets to "seed" the initial adoption of their products by consumers located in a social network. The payoffs to the firms are the eventual number of…

Fighting against climate change is a global challenge shared by nations with heterogeneous economical resources and individuals with diverse propensity for cooperation. However, we lack a clear understanding of the role of key factors such…