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The Effects Of The Kalamazoo Promise Scholarship On College Enrollment, Persistence, And Completion, Timothy J. Bartik, Brad J. Hershbein, Marta Lachowska Dec 2017

The Effects Of The Kalamazoo Promise Scholarship On College Enrollment, Persistence, And Completion, Timothy J. Bartik, Brad J. Hershbein, Marta Lachowska

Upjohn Institute Working Papers

We estimate the effects on postsecondary education outcomes of the Kalamazoo Promise, a generous, place-based college scholarship. We identify Promise effects using difference-in-differences, comparing eligible to ineligible graduates before and after the Promise’s initiation. According to our estimates, the Promise significantly increases college enrollment, college credits attempted, and credential attainment. Stronger effects occur for women.


Are Teacher Pensions "Hazardous" For Schools?, Patten Priestley Mahler Dec 2017

Are Teacher Pensions "Hazardous" For Schools?, Patten Priestley Mahler

Upjohn Institute Working Papers

I use a detailed panel of data and a unique modeling specification to explore how public schoolteachers respond to the incentives embedded in North Carolina’s retirement system. Like most public-sector retirement plans, North Carolina’s teacher pension implicitly encourages teachers to continue working until they are eligible for their pension benefits, and then leave soon afterward. I find that teachers with higher levels of quality, as measured by a teacher’s value-added to her students’ achievement test scores, are more responsive to the “pull” of teacher pensions. Younger teachers, those with higher salaries, and nonwhite teachers are also more likely to stay …


The Effect Of Paid Sick Leave Mandates On Access To Paid Leave And Work Absences, Kevin Callison, Michael F. Pesko Oct 2017

The Effect Of Paid Sick Leave Mandates On Access To Paid Leave And Work Absences, Kevin Callison, Michael F. Pesko

Upjohn Institute Working Papers

We evaluate the impact of paid sick leave (PSL) mandates on access to PSL and work absences for private sector workers in the U.S. By exploiting geographic and temporal variation in PSL mandate enactment, we compare changes in outcomes for workers in counties affected by a PSL mandate to changes for those in counties with no mandate. Additionally, we rely on within-county variation in the propensity to gain PSL following a mandate to estimate policy effects for workers most likely to acquire coverage. Results indicate that PSL mandates lead to increased access to PSL benefits, especially for women and those …


Evaluating Public Employment Programs With Field Experiments: A Survey Of American Evidence, Christopher J. O'Leary Sep 2017

Evaluating Public Employment Programs With Field Experiments: A Survey Of American Evidence, Christopher J. O'Leary

Upjohn Institute Working Papers

Research in the 1970s based on observational data provided evidence consistent with predictions from economic theory that paying unemployment insurance (UI) benefits to involuntarily jobless workers prolongs unemployment. However, some scholars also reported estimates that the additional time spent in subsidized job search was productive. That is, UI receipt tended to raise reemployment wages after work search among the unemployed. A series of field experiments in the 1980s investigated positive incentives to overcome the work disincentive effects of UI. These were followed by experiments in the 1990s that evaluated the effects of restrictions on UI eligibility through stronger work search …


Propelled: The Effects Of Grants On Graduation, Earnings, And Welfare, Jeffrey T. Denning, Benjamin M. Marx, Lesley J. Turner Sep 2017

Propelled: The Effects Of Grants On Graduation, Earnings, And Welfare, Jeffrey T. Denning, Benjamin M. Marx, Lesley J. Turner

Upjohn Institute Working Papers

We estimate the effect of grant aid on poor college students’ attainment and earnings using student-level administrative data from four-year public colleges in Texas. To identify these effects, we exploit a discontinuity in grant generosity as a function of family income. Eligibility for the maximum Pell Grant significantly increases degree receipt and earnings beginning four years after entry. Within 10 years, imputed taxes on eligible students’ earnings gains fully recoup total government expenditures generated by initial eligibility. To clarify how these estimates relate to social welfare, we develop a general theoretical model and derive sufficient statistics for the welfare implications …


Economic Shocks And Crime: Evidence From The Brazilian Trade Liberalization, Rafael Dix-Carneiro, Rodrigo R. Soares, Gabriel Ulyssea Jul 2017

Economic Shocks And Crime: Evidence From The Brazilian Trade Liberalization, Rafael Dix-Carneiro, Rodrigo R. Soares, Gabriel Ulyssea

Upjohn Institute Working Papers

This paper studies the effect of changes in economic conditions on crime. We exploit the 1990s trade liberalization in Brazil as a natural experiment generating exogenous shocks to local economies. We document that regions exposed to larger tariff reductions experienced a temporary increase in crime following liberalization. Next, we investigate through what channels the trade-induced economic shocks may have affected crime. We show that the shocks had significant effects on potential determinants of crime, such as labor market conditions, public goods provision, and income inequality. We propose a novel framework exploiting the distinct dynamic responses of these variables to obtain …


New Evidence On State Fiscal Multipliers: Implications For State Policies, Timothy J. Bartik Jul 2017

New Evidence On State Fiscal Multipliers: Implications For State Policies, Timothy J. Bartik

Upjohn Institute Working Papers

When state and local governments engage in balanced budget changes in taxes and spending, what fiscal multiplier effects do such policies have on creating local jobs? Traditionally, the view has been that possible job-creation effects of such state and local “demand-side” policies are smaller, second-order effects. Such effects might be worthwhile to take into consideration when a state or local government balances its budget during a recession, but the effects were believed to be of modest magnitude, and not of major importance for more general state and local public policies. However, recent estimates of fiscal multiplier effects of state and …


The Effect Of Public Pension Wealth On Saving And Expenditure, Marta Lachowska, Michał Myck Jun 2017

The Effect Of Public Pension Wealth On Saving And Expenditure, Marta Lachowska, Michał Myck

Upjohn Institute Working Papers

This paper examines the degree of substitution between public pension wealth and private saving by studying Poland’s 1999 pension reform. The analysis identifies the effect of pension wealth on private saving using cohort-by-time variation in pension wealth induced by the reform. The estimates, which are based on the 1997–2003 Polish Household Budget Surveys, show that 1 Polish zloty (PLN) less of pension wealth increases household saving by 0.3 PLN. Among highly-educated households, pension wealth and private saving appear to be close substitutes.


Veterans In Workforce Development: Participation And Labor Market Outcomes, Colleen Chrisinger Jun 2017

Veterans In Workforce Development: Participation And Labor Market Outcomes, Colleen Chrisinger

Upjohn Institute Working Papers

This paper compares the employment status and earnings of veterans and nonveterans following their receipt of public workforce development services in Washington State during the years 2002–2012. It also describes workforce program participation patterns for veterans and nonveterans to determine if veterans have equal or prioritized access to key programs, where prioritization is required by law. Based on tabulations and propensity score weighted regressions using administrative data, the results indicate slightly lower levels of participation by veterans than nonveterans in two major workforce programs (Wagner-Peyser and the Workforce Investment Act Adult program), and high participation in veteran-specific programs (Disabled Veterans …


Does Increased Access To Health Insurance Impact Claims For Workers' Compensation? Evidence From Massachusetts Health Care Reform, Erin Todd Bronchetti, Melissa Mcinerney Jun 2017

Does Increased Access To Health Insurance Impact Claims For Workers' Compensation? Evidence From Massachusetts Health Care Reform, Erin Todd Bronchetti, Melissa Mcinerney

Upjohn Institute Working Papers

We study over 20 million emergency room (ER) discharges in Massachusetts and three comparison states to estimate the impact of Massachusetts health care reform on claims for Workers’ Compensation (WC). Prior evidence on the relationship between health insurance and WC claiming behavior is mixed. We find that the reform caused a significant decrease in the number of per-capita ER discharges billed to WC. This result is driven by larger decreases in WC discharges for conditions for which there is greater scope to change the payer or the location of care. Conversely, we estimate smaller impacts for weekend versus weekday admissions …


Genes, Education, And Labor Market Outcomes: Evidence From The Health And Retirement Study, Nicholas W. Papageorge, Kevin Thom May 2017

Genes, Education, And Labor Market Outcomes: Evidence From The Health And Retirement Study, Nicholas W. Papageorge, Kevin Thom

Upjohn Institute Working Papers

Recent advances have led to the discovery of specific genetic variants that predict educational attainment. We study how these variants, summarized as a genetic score variable, are associated with human capital accumulation and labor market outcomes in the Health and Retirement Study (HRS). We demonstrate that the same genetic score that predicts education is also associated with higher wages, but only among individuals with a college education. Moreover, the genetic gradient in wages has grown in more recent birth cohorts, consistent with interactions between technological change and labor market ability. We also show that individuals who grew up in economically …


Dynamic Responses To Labor Demand Shocks: Evidence From The Financial Industry In Delaware, Russell Weinstein May 2017

Dynamic Responses To Labor Demand Shocks: Evidence From The Financial Industry In Delaware, Russell Weinstein

Upjohn Institute Working Papers

This paper analyzes an important shock to local labor demand in the financial services sector: firm relocation to Delaware following a Supreme Court ruling and state legislation in the 1980s. Using synthetic controls and bordering states, I find significant effects on employment growth, the unemployment rate, and participation in the first decade. Employment spillovers to the nontradable sector and migration appear larger than estimates from shocks to the tradable sector. Effects persist for 10 to 20 years after Delaware loses its original policy-induced advantage. The shift towards a low unemployment sector explains this persistence, rather than direct productivity effects or …


Nafta And The Gender Wage Gap, Shushanik Hakobyan, John Mclaren Apr 2017

Nafta And The Gender Wage Gap, Shushanik Hakobyan, John Mclaren

Upjohn Institute Working Papers

Using U.S. Census data for 1990–2000, we estimate effects of NAFTA on U.S. wages, focusing on differences by gender. We find that NAFTA tariff reductions are associated with substantially reduced wage growth for married blue-collar women, much larger than the effect for other demographic groups. We investigate several possible explanations for this finding. It is not explained by differential sensitivity of female-dominated occupations to trade shocks, or by household bargaining that makes married female workers less able to change their industry of employment than other workers. We find some support for an explanation based on an equilibrium theory of selective …


The Employment Service-Unemployment Insurance Partnership: Origin, Evolution, And Revitalization, David E. Balducchi, Christopher J. O'Leary Apr 2017

The Employment Service-Unemployment Insurance Partnership: Origin, Evolution, And Revitalization, David E. Balducchi, Christopher J. O'Leary

Upjohn Institute Working Papers

This study traces the origin and evolution of the partnership between the employment service and unemployment insurance programs in the United States. We examine objectives of the framers of the Wagner-Peyser and Social Security Acts that established these programs. Using primary sources, we then analyze early actions of the architects of social insurance to facilitate cooperation between the two programs to meet economic exigencies, grapple with political cronyism, and surmount legal barriers. We also discuss factors that caused changes in the employment service–unemployment insurance partnership over time. We identify reasons for the erosion in cooperation starting in the 1980s, and …


A Benefit-Cost Analysis Of The Tulsa Universal Pre-K Program, Timothy J. Bartik, Jonathan A. Belford, William T. Gormley, Sara Anderson Apr 2017

A Benefit-Cost Analysis Of The Tulsa Universal Pre-K Program, Timothy J. Bartik, Jonathan A. Belford, William T. Gormley, Sara Anderson

Upjohn Institute Working Papers

In this paper, benefits and costs are estimated for a universal pre-K program, provided by Tulsa Public Schools. Benefits are derived from estimated effects of Tulsa pre-K on retention by grade 9. Retention effects are projected to dollar benefits from future earnings increases and crime reductions. Based on these estimates, Tulsa pre-K has benefits exceeding costs by about 2-to-1. This benefit cost ratio is far less than the benefit-cost ratios (ranging from 8-to-1 to 16-to-1) for more targeted and intensive pre-K programs from the 1970s and 80s, such as Perry Preschool and the Chicago Child-Parent Center (CPC) program. Comparing benefit-cost …


Valuing Public Goods More Generally: The Case Of Infrastructure, David Albouy, Arash Farahani Mar 2017

Valuing Public Goods More Generally: The Case Of Infrastructure, David Albouy, Arash Farahani

Upjohn Institute Working Papers

We examine the relationship between local public goods, prices, wages, and population in an equilibrium inter-city model. Non-traded production, federal taxes, and imperfect mobility all affect how public goods (or “amenities” more broadly) should be valued from data. Reinterpreting the estimated effects of public infrastructure on prices and wages in Haughwout (2002), we find infrastructure over twice as valuable with our more general model. New estimates based on more years, cities, and data-sets indicate stronger wage and positive population effects of infrastructure. These imply higher values of infrastructure to firms, and also to households if moving costs are substantial.


Born Under A Lucky Star: Financial Aid, College Completion, Labor Supply, And Credit Constraints, Jeffrey T. Denning Feb 2017

Born Under A Lucky Star: Financial Aid, College Completion, Labor Supply, And Credit Constraints, Jeffrey T. Denning

Upjohn Institute Working Papers

Higher education has experienced many changes since the 1970s, including an increase in the price of college, an increase in student employment during college, a decrease in college completion rates, and an increase in time to degree. This paper ties these trends together by causally linking changes in financial aid with time to degree and student employment during college. I find that additional financial aid accelerates graduation for university seniors because they increase credits attempted and reduce earnings while in college. In reaching this finding, I use administrative education and earnings data to examine a discrete change in the amount …


Medicaid, Family Spending, And The Financial Implications Of Crowd-Out, Marcus O. Dillender Feb 2017

Medicaid, Family Spending, And The Financial Implications Of Crowd-Out, Marcus O. Dillender

Upjohn Institute Working Papers

A primary purpose of health insurance is to protect families from medical expenditure risk. Despite this goal and despite the fact that research has found that Medicaid can crowd out private coverage, little is known about the effect of Medicaid on families' spending patterns. This paper implements a simulated instrumental variables strategy with data from the Consumer Expenditure Survey to estimate the effect of an additional family member becoming eligible from Medicaid on family-level health insurance coverage and spending. The results indicate that an additional family member becoming eligible for Medicaid increases the number of people in the family with …