Can the education system overcome its mediocrity? And how to create the prestige of serving in the army? And why, even with an equal workload and equal salary, does a woman do a significantly larger part of the housework? And why do we earn as much as we do? These are just some of the practical questions that identity economics can address. Nobel laureate economist George Akerlof and Rachel Cranton, professor of economics, are filling a critical gap in economics. They introduce the concept of identity and norms. Now we can explain why people, being in the same economic circumstances, make different choices. Because we identify ourselves with very different groups (we are Russians, we are men, we are middle class, etc.). The norms and ideals of these groups turn out to be the most important factors influencing our well-being.