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NETHERLANDS GERMANY AND ENGLAND AND BELGIUM SCANDINAVIA SWITZERLAND ITALY   13th and 14th c. 23.0 47.0 n.a. 37.0 56.0   15th


c. n.a. 45.0 46.0 16.0 73.0   16th c. 7.0 25.0 21.0 11.0 47.0   17th c. 5.0 7.5 18.0 7.0 32.0   18th c. 1.5 5.5 1.9 7.5 10.5   19th c. 1.7 1.6 1.1 2.8 12.6   1900-1949 0.8 1.5 0.7 1.7 3.2   1950-1994 0.9 0.9 0.9 1.0 1.5     The steep decline of these numbers over the centuries suggests that, for one of the gravest human concerns-getting murdered-the incentives that we collectively cook up are working better and better. So what was wrong with the incentive at the Israeli day-care cen- ters? You have probably already guessed that the $3 fine was simply too small. For that price, a parent with one child could afford to be late every day and only pay an extra $60 each month-just one-sixth of the base fee. As babysitting goes, thats pretty cheap. What if the fine had been set at $100 instead of $3? That would have likely put an end to the late pickups, though it would have also engendered plenty of ill will. (Any incentive is inherently a trade-off; the trick is to balance the extremes.) But there was another problem with the day-care center fine. It substituted an economic incentive (the $3 penalty) for a moral incen- tive (the guilt that parents were supposed to feel when they came late). For just a few dollars each day, parents could buy off their guilt. Fur- thermore, the small size of the fine sent a signal to the parents that late pickups werent such a big problem. If the day-care center suffers only $3 worth of pain for each late pickup, why bother to cut short the ten- nis game? Indeed, when the economists eliminated the $3 fine in the seventeenth week of their study, the number of late-arriving parents didnt change. Now they could arrive late, pay no fine, and feel no guilt.