This paper estimates the causal effect of equalizing revenues across school districts on students’ intergenerational mobility. I exploit cohort differences in exposure to equalization generated by state-level reforms. To address the endogeneity of postreform revenues due to household sorting after a reform, I use a simulated-instruments approach that uses newly collected data on states’ funding formulas to simulate revenues without sorting. I find that equalization has a large effect on the mobility of low-income students. Reductions in input gaps between low-income and high-income districts are likely channels behind this effect.
{"title":"School Finance Equalization Increases Intergenerational Mobility","authors":"Barbara Biasi","doi":"10.1086/718980","DOIUrl":"https://doi.org/10.1086/718980","url":null,"abstract":"This paper estimates the causal effect of equalizing revenues across school districts on students’ intergenerational mobility. I exploit cohort differences in exposure to equalization generated by state-level reforms. To address the endogeneity of postreform revenues due to household sorting after a reform, I use a simulated-instruments approach that uses newly collected data on states’ funding formulas to simulate revenues without sorting. I find that equalization has a large effect on the mobility of low-income students. Reductions in input gaps between low-income and high-income districts are likely channels behind this effect.","PeriodicalId":48308,"journal":{"name":"Journal of Labor Economics","volume":"41 1","pages":"1 - 38"},"PeriodicalIF":3.8,"publicationDate":"2022-01-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49019820","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Marta Lachowska, Alexandre Mas, Raffaele Saggio, Stephen A. Woodbury
We employ a revealed preference test to distinguish between wage posting and wage bargaining. Using a sample of dual jobholders in Washington State, we estimate the sensitivity of wages and separation rates to wage shocks in a secondary job. In lower parts of the wage distribution, improvements in the outside option lead to higher separations rates but not to higher wages, consistent with wage posting. In the highest wage quartile, improved outside options translate to higher wages but not higher separation rates, consistent with bargaining. In the aggregate, bargaining appears to be a limited determinant of wage setting.
{"title":"Wage Posting or Wage Bargaining? A Test Using Dual Jobholders","authors":"Marta Lachowska, Alexandre Mas, Raffaele Saggio, Stephen A. Woodbury","doi":"10.1086/718321","DOIUrl":"https://doi.org/10.1086/718321","url":null,"abstract":"We employ a revealed preference test to distinguish between wage posting and wage bargaining. Using a sample of dual jobholders in Washington State, we estimate the sensitivity of wages and separation rates to wage shocks in a secondary job. In lower parts of the wage distribution, improvements in the outside option lead to higher separations rates but not to higher wages, consistent with wage posting. In the highest wage quartile, improved outside options translate to higher wages but not higher separation rates, consistent with bargaining. In the aggregate, bargaining appears to be a limited determinant of wage setting.","PeriodicalId":48308,"journal":{"name":"Journal of Labor Economics","volume":"40 1","pages":"S469 - S493"},"PeriodicalIF":3.8,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42893784","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Has the geography of intergenerational mobility in the United States changed over time? Constructing a large historical linked sample, I show that upward mobility in the early twentieth century was greater for those who grew up in the coastal and industrial regions, in contrast to more recent times, where mobility is higher among persons who were raised in the middle of the country. The historical patterns are not driven by imperfections in record linkage or measurement error in economic status.
{"title":"A Different Land of Opportunity: The Geography of Intergenerational Mobility in the Early Twentieth-Century United States","authors":"Hui Ren Tan","doi":"10.1086/718595","DOIUrl":"https://doi.org/10.1086/718595","url":null,"abstract":"Has the geography of intergenerational mobility in the United States changed over time? Constructing a large historical linked sample, I show that upward mobility in the early twentieth century was greater for those who grew up in the coastal and industrial regions, in contrast to more recent times, where mobility is higher among persons who were raised in the middle of the country. The historical patterns are not driven by imperfections in record linkage or measurement error in economic status.","PeriodicalId":48308,"journal":{"name":"Journal of Labor Economics","volume":"41 1","pages":"77 - 102"},"PeriodicalIF":3.8,"publicationDate":"2021-12-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47431670","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Christian vom Lehn, Cache Ellsworth, Zachary Kroff
Measuring occupational mobility from the Current Population Survey using retrospective or longitudinal methods generates substantially different outcomes, in both levels and trends. Using a generalized method of moments technique, we estimate the level of occupational mobility and the measurement error in both of these measures for 1981–2018. We estimate that occupational mobility has been trending down, particularly since 2000, consistent with retrospective measures of occupational mobility. However, estimated mobility is 2–3 percentage points or 60%–70% higher than retrospective measures. Measurement error in longitudinal measures is large and has been worsening over time.
{"title":"Reconciling Occupational Mobility in the Current Population Survey","authors":"Christian vom Lehn, Cache Ellsworth, Zachary Kroff","doi":"10.1086/718563","DOIUrl":"https://doi.org/10.1086/718563","url":null,"abstract":"Measuring occupational mobility from the Current Population Survey using retrospective or longitudinal methods generates substantially different outcomes, in both levels and trends. Using a generalized method of moments technique, we estimate the level of occupational mobility and the measurement error in both of these measures for 1981–2018. We estimate that occupational mobility has been trending down, particularly since 2000, consistent with retrospective measures of occupational mobility. However, estimated mobility is 2–3 percentage points or 60%–70% higher than retrospective measures. Measurement error in longitudinal measures is large and has been worsening over time.","PeriodicalId":48308,"journal":{"name":"Journal of Labor Economics","volume":"40 1","pages":"1005 - 1051"},"PeriodicalIF":3.8,"publicationDate":"2021-12-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45149278","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Workfare can impact child development by inducing parents to spend less time at home. I study the mechanisms by which workfare policies affect children using the New Hope workfare experiment. The program randomly assigned individuals to a policy bundle including income and childcare subsidies conditional on full-time work. For families with young children, the program had positive effects on child academic performance and classroom behavior. Counterfactual experiments from a dynamic discrete choice model indicate that most of the effect of New Hope on young children is explained by parents enrolling their children in center-based childcare.
{"title":"Understanding the Effects of Workfare Policies on Child Human Capital","authors":"Jorge Rodríguez","doi":"10.1086/718564","DOIUrl":"https://doi.org/10.1086/718564","url":null,"abstract":"Workfare can impact child development by inducing parents to spend less time at home. I study the mechanisms by which workfare policies affect children using the New Hope workfare experiment. The program randomly assigned individuals to a policy bundle including income and childcare subsidies conditional on full-time work. For families with young children, the program had positive effects on child academic performance and classroom behavior. Counterfactual experiments from a dynamic discrete choice model indicate that most of the effect of New Hope on young children is explained by parents enrolling their children in center-based childcare.","PeriodicalId":48308,"journal":{"name":"Journal of Labor Economics","volume":"41 1","pages":"39 - 75"},"PeriodicalIF":3.8,"publicationDate":"2021-12-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48161260","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
New parenthood causes large decreases in labor market incomes for mothers but not fathers, a stylized fact known as the “child penalty.” We combine a simple household model with estimates of child penalties in heterosexual nonadopting, adopting, and same-sex couples to better understand what causes the child penalty in heterosexual nonadopting couples. Our results largely rule out giving birth and the father’s advantage in the labor market as mechanisms, leaving preferences, gender norms, and discrimination as the main explanations. In addition, our paper provides novel evidence on the impact of children on labor market outcomes of adopting and same-sex couples.
{"title":"What Causes the Child Penalty? Evidence from Adopting and Same-Sex Couples","authors":"Martin Andresen, E. Nix","doi":"10.1086/718565","DOIUrl":"https://doi.org/10.1086/718565","url":null,"abstract":"New parenthood causes large decreases in labor market incomes for mothers but not fathers, a stylized fact known as the “child penalty.” We combine a simple household model with estimates of child penalties in heterosexual nonadopting, adopting, and same-sex couples to better understand what causes the child penalty in heterosexual nonadopting couples. Our results largely rule out giving birth and the father’s advantage in the labor market as mechanisms, leaving preferences, gender norms, and discrimination as the main explanations. In addition, our paper provides novel evidence on the impact of children on labor market outcomes of adopting and same-sex couples.","PeriodicalId":48308,"journal":{"name":"Journal of Labor Economics","volume":"40 1","pages":"971 - 1004"},"PeriodicalIF":3.8,"publicationDate":"2021-12-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46311411","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Although from the viewpoint of social psychology task commitment is a driving force for intrinsic motivation in the workplace, this topic has been widely ignored in labor and personnel economics so far. Our paper reduces this gap in the literature by offering a theoretical analysis of worker empowerment and task commitment. This approach also helps to explain the observed variety of compensation schemes across workers and firms. By using a large-scale linked employer-employee panel data set, we present empirical evidence that is consistent with the predicted patterns of our theoretical model.
{"title":"Empowerment, Task Commitment, and Performance Pay","authors":"Michael Beckmann, M. Kräkel","doi":"10.1086/718465","DOIUrl":"https://doi.org/10.1086/718465","url":null,"abstract":"Although from the viewpoint of social psychology task commitment is a driving force for intrinsic motivation in the workplace, this topic has been widely ignored in labor and personnel economics so far. Our paper reduces this gap in the literature by offering a theoretical analysis of worker empowerment and task commitment. This approach also helps to explain the observed variety of compensation schemes across workers and firms. By using a large-scale linked employer-employee panel data set, we present empirical evidence that is consistent with the predicted patterns of our theoretical model.","PeriodicalId":48308,"journal":{"name":"Journal of Labor Economics","volume":"40 1","pages":"889 - 938"},"PeriodicalIF":3.8,"publicationDate":"2021-12-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"60725260","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Recent work situates gender norms as a key driver of the sexual division of labor. But the explanatory power of Becker’s comparative advantage explanation is still not well understood. Drawing on unique data, we test the predictions of a formal Beckerian model. We complement this by proposing and analyzing new measures of specialization. We show that comparative advantage plays little or no role in the sexual division of labor within couple households. Absolute advantage also plays no role in specialization for same-sex couples, and this is not explained by having fewer children.
{"title":"Specialization, Comparative Advantage, and the Sexual Division of Labor","authors":"P. Siminski, Rhiannon Yetsenga","doi":"10.1086/718430","DOIUrl":"https://doi.org/10.1086/718430","url":null,"abstract":"Recent work situates gender norms as a key driver of the sexual division of labor. But the explanatory power of Becker’s comparative advantage explanation is still not well understood. Drawing on unique data, we test the predictions of a formal Beckerian model. We complement this by proposing and analyzing new measures of specialization. We show that comparative advantage plays little or no role in the sexual division of labor within couple households. Absolute advantage also plays no role in specialization for same-sex couples, and this is not explained by having fewer children.","PeriodicalId":48308,"journal":{"name":"Journal of Labor Economics","volume":"7 3","pages":"851 - 887"},"PeriodicalIF":3.8,"publicationDate":"2021-12-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41301757","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Social Transfers and Spatial Distortions","authors":"Mark Colas, Robert McDonough","doi":"10.21034/iwp.54","DOIUrl":"https://doi.org/10.21034/iwp.54","url":null,"abstract":"","PeriodicalId":48308,"journal":{"name":"Journal of Labor Economics","volume":"1 1","pages":""},"PeriodicalIF":3.8,"publicationDate":"2021-11-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46499552","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Empirical peer effects research often employs censored peer data. Individuals may list only a fixed number of links, implying mismeasured peer variables. I first document that censoring is widespread in network data. I then introduce an estimator and characterize its inconsistency analytically; an assumption on the ordering of peers implies that censoring causes attenuated peer effects estimates. Next, I demonstrate the effect of censoring in two data sets, showing that estimates with censored data underestimate peer influence. I discuss interpretation of estimates, propose methods for correction and bounding, and give implications for the design of network surveys.
{"title":"Name Your Friends, but Only Five? The Importance of Censoring in Peer Effects Estimates Using Social Network Data","authors":"A. Griffith","doi":"10.1086/717935","DOIUrl":"https://doi.org/10.1086/717935","url":null,"abstract":"Empirical peer effects research often employs censored peer data. Individuals may list only a fixed number of links, implying mismeasured peer variables. I first document that censoring is widespread in network data. I then introduce an estimator and characterize its inconsistency analytically; an assumption on the ordering of peers implies that censoring causes attenuated peer effects estimates. Next, I demonstrate the effect of censoring in two data sets, showing that estimates with censored data underestimate peer influence. I discuss interpretation of estimates, propose methods for correction and bounding, and give implications for the design of network surveys.","PeriodicalId":48308,"journal":{"name":"Journal of Labor Economics","volume":"40 1","pages":"779 - 805"},"PeriodicalIF":3.8,"publicationDate":"2021-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41734415","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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