Labor Economics Commons^™

Impact Of Demand For H1b Visas In The Us On The Performance Of Listed Indian Firms, Jayaditya Shekhar Maliye

CMC Senior Theses

This thesis examines the relationship between Indian firm performance and the demand for H1B visas in the US. To test this relationship, a fixed effects model has been used on a panel dataset of 104 Indian firms listed on the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) over the period 2009 to 2021. The results show that an increase in H1B visa demand is negatively and significantly associated with Indian firm performance. These findings suggest that the US’s demand for high skilled labor overseas has consequences for firms in the home country.

Heterogeneity In The Covid-19 Pandemic’S Labor Market Effects, Carlos Montelongo

CMC Senior Theses

In the wake of the COVID-19 pandemic, labor market outcomes in the United States drastically changed as the country entered its first recession since the Great Recession. The lives of millions of Americans became upended as economic shutdowns and lockdown orders spread across the United States. This paper attempts to quantify and examine the heterogeneity of employment trends before, during, and after the COVID-19 pandemic along the following four dimensions: race/ethnicity, gender, education, and age. By using cross-sectional data from the Current Population Survey, I gathered a representative sample of different demographic groups in the United States. My objective is …

Sexed Propensities And Gendered Penalties?: An Analysis Of The Economic Outcomes Of Transgender People, Jiwon Chung

CMC Senior Theses

Recent research has indicated the adverse economic outcomes of transgender people. The titular question of this paper refers to the effect on gendered economic outcomes that differences related to sex assigned at birth has for a sample of transgender individuals that is plausibly correlated with being at an early stage of their gender affirmation processes (e.g. social or medical transition). For this group of plausibly early-in-transition transgender individuals, I hypothesize and test a theory that draws the following account: assigned female at birth (AFAB) transgender individuals encounter significant economic penalties as a result of labour market decisions (i.e. industry sorting) …

Examining The Effectiveness Of Nba General Managers At Determining Value In The Nba Draft, And The Impact Of Drafting Team On Player Future Value, Benjamin S. Glass

CMC Senior Theses

This study examines the effectiveness of NBA general managers at accurately drafting in accordance with the future values of players. Using draft position as a metric representing perceived value at the time of the draft, and second contract size to represent value of a player at the time of free agency, I compare the effects of different draft positions on the expected size of a players second contract. By examining divergences in the expected negative linear trend, I can identify positions in the draft which are being over/undervalued. I additionally look at the effect of team on second contract size …

The Transforming Importance Of Social Skills In The Labor Market In The 2010s, Andrew Bradjan

CMC Senior Theses

The growing importance of social skills has led to an increase in returns to wages and employment for workers specializing in social skill-intensive occupations. Between 2012 and 2019, social skill-intensive occupations grew by 3 percentage points as a share of the U.S. labor force. Math-intensive occupations also grew by a similar amount during this time. To analyze these patterns, I utilize a model of team production where workers trade tasks to exploit their comparative advantage. Social skills reduce coordination costs between workers and allow them to specialize and cooperate with other workers more effectively by trading tasks. This model predicts …

Disembedded Liberalism: The Global Pressure On Democracy, Hallie Spear

CMC Senior Theses

The international political order is at a crossroads with divergent paths. Liberal democracy is once again threatened on the international stage. What's more troubling is that the most stable and influential democracies, the United States, those in Europe and India, seem to be vulnerable to the autocratic wave sweeping through the world. This thesis completes a critical analysis to understand the root causes of the recent disruption to democracy the world has observed. Focusing on three established, diverse, and populous democracies, this thesis investigates the economic conditions at play that made each nation vulnerable to populism. Neoliberal economic policies implemented …

Cross-Cultural Examination Of Vacation Policy On Employee Satisfaction And Happiness, Ketan D. Parekh

CMC Senior Theses

With the advent of technological advancement, entrepreneurship, and a higher emphasis on meritocracy, societies across the globe have experienced intense competition to outdo one another. This has pushed companies to place increased importance on worker productivity; large and small companies want to see their employees work harder, longer, and faster. With this increased demand for work, companies today are making sure they have suitable reward systems to ensure worker satisfaction and quality work production. However, what these reward systems look like and how they function contrast significantly across cultures, especially as it pertains to corporate leave policies. This thesis examines …

Economic Propaganda In The United States, Brooklyn Montgomery

CMC Senior Theses

This thesis aims to identify and analyze three different forms of economic propaganda: cultural, structural, and political. I first examine ‘Do What You Love’ culture and its impact on the labor force. Chapter Two explores the propagation of neoliberal economics as an objective study, and the final chapter analyzes the use of Black capitalism as a political mechanism to quell Black radical sentiment. In detailing these phenomenons, I investigate the implementation, normalization, and effects, as well as the material repercussions of these ideas and structures.

How A Supply Chain Stumble Changes A Company’S Policies And Progress 20 Years Later: A Case Study Of Gap Inc., Alexandra Futterman

CMC Senior Theses

Gap Inc. is the third-largest American retailer. Founded in 1969, Gap Inc. holds four brands, Gap, Banana Republic, Old Navy and Athleta. In the late 1990s and early 2000s Gap Inc. made headlines for child labor abuses along with many other large brands. After this negative attention, Gap Inc. began developing policies and practices to combat ethical supply chain issues. These policies included a Human Rights Policy, a Code of Vendor Conduct, working conditions standards, and even capacity building programs that boarded company reaches into communities they touch. In conjunction with the policies Gap Inc. has published several social responsibility …

Impact Of School Closures On Female Labor Force Participation In The Covid-19 Pandemic, Shreya Shome

CMC Senior Theses

This paper examines the role of school closures in reducing the female labor force participation during the Covid-19 pandemic in the United States. While there is significant discussion on the decline of female labor force participation, this paper examines the role of school closures and lack of child care options in determining women’s decisions and ability to work. The data set includes the share school closures at each level of education, the number of schools and students in each school, the regulatory stringency indices, and the number of Covid-19 related deaths in each state on a monthly basis from January …

The Motherhood Wage Penalty: New Evidence On Long-Run Effects And Group Heterogeneity, Vera Kratz

CMC Senior Theses

This paper seeks to establish the magnitude of the long-run motherhood wage penalty. Using data from the 1997 National Longitudinal Survey of Youth, I examine the difference between the real hourly wages of mothers and non-mothers in the long run. By comparing mothers to not-yet-mothers as well as never-mothers, I am able to better isolate the true wage penalty mothers face. My findings indicate that 21 to 25 years after the birth of their first child, mothers face a 31.75 percentage point wage penalty compared to non-mothers. In addition, I examine differences in the wage penalties of mothers by marital …

Moral Hazards And Negative Externalities Of Lifesaving Programs: How Naloxone Access Laws And Prescription Drug Monitoring Programs Affect Hiv Transmission, Jeremy Horn

CMC Senior Theses

This paper looks at naloxone access laws and prescription drug monitering programs and see how these programs affect HIV transmission and drug overdose deaths. Using an OLS regression I find that NAL reduces HIV and increases overdose deaths. I also find reducing the number of drug prescriptions increase HIV and overdose deaths because users switch to intravenous methods.

An Empirical Analysis Of Company Culture: Using Glassdoor Data To Measure The Impact Of Culture And Employee Satisfaction On Performance, Linnea Uyeno

CMC Senior Theses

This paper examines the impact of culture and employee satisfaction on company performance; it considers which elements of culture are most important in specific industries: manufacturing, technology, and finance. Additionally, it explores whether these elements of productive cultures are also associated with employee satisfaction. It uses data from the MIT Sloan Management Review/Glassdoor Culture 500 database, which applied machine learning to analyze 1.2 million Glassdoor reviews. This data quantitatively measures nine dimensions of culture: agility, collaboration, customer focus, diversity, execution, innovation, integrity performance, and respect—assigning each company a score for every cultural dimension. Two depende­­­nt variables are used to measure …

The Timing Of Childbirth: Does The Age Of First-Time Mothers Affect The Parental Gender Earnings Gap?, Anna Graves

CMC Senior Theses

This paper assesses the impact the timing of first birth may have on the parental gender wage gap. Using data from the 2014 Survey of Income and Program Participation (SIPP), I use a pooled, cross-sectional sample of full-time parents in the United States labor force to examine the relationship between earnings and age at first birth for mothers and fathers and any relative difference that arises between the two. My findings indicate the presence of a parental gender wage gap, and that the timing of first birth can significantly impact parental wages. In addition, my results suggest that the timing …

Air Pollution’S Effect On The Labor Force At The State Level, Benjamin Culberson

CMC Senior Theses

The health effects of air pollution are well established, ranging from increased rates of cancer to cardiovascular disease. Furthermore, a growing body of literature shows that air pollution has a tangible, negative impact on the labor force. However, in their efforts to avoid the endogeneity of air pollution and labor production, the current literature focuses on specific industries at a local level. The objective of this thesis is to expand this research to a state level by using naturally occurring weather events called air stagnations as a proxy for air pollution. These air stagnations correlate with increased levels of air …

The Impact Of Regional Return On Education On The Self-Selection Of Mexican Immigrants, Warren Chen

CMC Senior Theses

This paper uses the 2010 Mexican Population and Housing Survey to examine the role of regional return to education on migrant selection. The study uses a standard linear regression model to predict the educational attainment of migrants and compares it to the educational attainment of non-migrants in each Mexican State. It finds evidence of negative selection, that less educated Mexican citizens are more likely to migrate to the United States. It also finds little evidence of the impact of regional return to education on migrant selection. The study offers potential explanations for the lack of impact and suggests avenues for …

Love At First Byte: An Economic Analysis Of The Internet Dating Apocalypse, Hamsa Srikanth

CMC Senior Theses

We’re often warned that the internet will hasten the dating apocalypse. The internet (it is posited) is depriving us of the elusive in-person magic, and modern courtship is now little more than love at first byte.

There remains uncertainty, however, about what the independent impact of the internet on the dating market has been. Similar to the internet, the telephone also changed the way we communicate, but its effect on the dating market was mostly complementary to the 'traditional' ways of meeting – i.e. calling your school crush at home. So the question remains: Is the effect of the …

A Nuanced Look At Gender Interactions On Informal Employment And Income In Argentina And Uruguay, Teagan Knight

CMC Senior Theses

There are many existing studies characterizing the informal sector in Latin America, but the literature fails to fully examine the interactions between gender and disadvantaging factors on the probability of informal employment and its returns to wage. This analysis uses survey data from Argentina (2001) and Uruguay (2006) to examine the heterogeneous effects of number of children under 5, education, minority status, and migrant status on male and female informal employment and income. Being female interacts with number of children under 5 to create no effect on probability of informal employment, in contrast to a significant negative effect for men. …

The Cultural Legacy Of Communism In Entrepreneurship: Entrepreneurial Perceptions And Activity In Central And Eastern Europe, Amy Wu

CMC Senior Theses

Using data from the Global Entrepreneurship Monitor, this paper examines differences in entrepreneurial perceptions (fear of failure, opportunity perception, self-efficacy, public opinion) between CEE and non-CEE countries, before and after the 2008 recession, as well as the effects of these perceptions on entrepreneurial motivation and overall levels of activity. The results suggest that CEE countries have systematically more pessimistic outlooks in terms of fear of failure and opportunity perception, but no difference from non-CEE countries in self-efficacy and public opinion. Additionally, most of the difference in fear of failure and opportunity perception, along with an increase in necessity-motivated entrepreneurship, comes …

Testing For Nationality Discrimination In Major League Soccer, Matthew Swift

CMC Senior Theses

Using data from the 2014-2016 Major League Soccer (MLS) seasons, this paper finds evidence for nationality discrimination in the MLS. In particular, foreign players receive a wage premium of 15.97 percent, ceteris paribus. Foreign players also receive an additional bump in their salary based on performance. Finally, using an Oaxaca (1973) decomposition, I find that 22-26% of the differences in wages between foreign and domestic players is largely due to discrimination.

The Political Impact Of Rising Trade Exposure: Evidence From 2000 - 2016 U.S. Presidential Elections, Xiaoyang Qian

CMC Senior Theses

In this paper we analyze the impact of global imports on regional labor markets, and how such impact translates to changes in voting patterns in the U.S. Presidential elections from 2000 to 2016. We find that imports from different U.S. trading partners influence voting patterns in different ways. In particular, we observe an anti-incumbent effect caused by import competition from OECD countries. Such an effect cannot be observed for imports from low-income countries. There is also evidence that suggests high exposure to import competition tends to drive voters toward the Democratic candidate, who typically proposes better social welfare programs and …

The Relative Impact Of The Ged On Labor Market Outcomes For The Formerly Incarcerated, Sally Vandenberg

CMC Senior Theses

This paper shows that while incarceration is associated with economic losses, the economic benefits associated with a GED may be nearly twice as large for high school dropouts that have been incarcerated than for dropouts who have not been incarcerated. My results, though imprecisely estimated, suggest that this relationship may be one of correlation, rather than causality. I find that among the formerly incarcerated the GED is associated with other positive outcomes, particularly lower rates of drug use.

A Deep Dive Into Technological Unemployment: A State-Level Analysis On The Employment Effect Of Technological Innovations, Yuqing "Jenny" Cang

CMC Senior Theses

Ever since the first Industrial Revolution, during which many textile artisans lost their jobs to weaving machines, the relationship between technological progress and unemployment has been explored and examined by researchers and policy makers. Existing empirical research, mostly at the microeconomic level, has presented ambiguous results. Procuring data on 51 U.S. states for a period of 19 years and a large number of controls, this paper studies the employment effect of technological innovations with a novel state-level macroeconomic analysis. Using commercially-supplied Research and Development expenditure as a proxy, this paper finds that although technological innovations have a non-significant effect on …

Paying For Performance At The Plate: An Investigation Of Variable Pay Systems In Major League Baseball, Mitchell S. Bremermann

CMC Senior Theses

Previous empirical research on variable pay systems have suggested that possible gains can come from paying for performance, but highlight the difficulty firms face in measuring performance. Using contracts signed in Major League Baseball’s free agent market, I find that over the 2010-2014 period, teams utilized variable pay schemes with players that were more productive or signaled greater risk, either in their contract terms or via overspecialization. However, not all forms of risk signaling were correlated with greater use of performance incentives, including age and proxies for injury history. These findings have significant implications for labor practices more broadly, as …

The Evolution Of Black-White Wage Inequality Across Occupational Sectors In The Us Since The 1990s, Tianxiao Ye

CMC Senior Theses

This paper updates the current knowledge about Black-White wage inequality in the US male labor market by using the NLSY97 sample. Compared with the results obtained from the NLSY79 cohort, I find that the unconditional racial wage inequality is smaller today, but after controlling for premarket academic skills, the conditional racial wage gap remains roughly the same as it was twenty years ago. After dividing the labor market by occupational categories, I find that in the white collar sector, the racial wage gap has largely disappeared even without controlling for academic skills. In the blue collar sector, academic skills can …

Player Compensation And Team Performance: Salary Cap Allocation Strategies Across The Nfl, Max Winsberg

CMC Senior Theses

The National Football League’s salary cap constrains the available resources each franchise is allotted to spend on player personnel. I examine the effects of executive management’s compensation allocation strategies on team performance from 2006 to 2013. The findings suggest that spending more than the league-average on offensive lineman hurts overall team performance. Spending above the league average on both the offensive line and quarterback positions negatively affects offensive performance as well. This supports previous research stating that taking a superstar-approach to cap distribution negatively affects team performance. Furthermore, I find evidence of increased compensation inequality among players under the Collective …

The Changing Relationship Between Fertility And Female Emplyment, Viraj Shastri

CMC Senior Theses

Recent literature finds that in OECD countries the cross- country correlation between the total fertility rate and the female labor force participation rate has changed from negative till the mid-1980s to positive afterwards. In sharp contrast, other studies show that this negative relationship continues to exist, however the magnitude of the effect is lower. In this paper I look at a panel of 23 OECD aggregate fertility and labor market data from 1965 – 2013 and account for country as well as year fixed effects. My findings document that there exists a negative relationship between fertility and female employment for …

The Consequences Of Mental Illness On Labor Market Decisions, Vanessa Lanuza

CMC Senior Theses

The existing literature finds negative associations between mental illness and labor market outcomes. Using data from the 2007 to 2011 National Health Interview Survey, this study examines the consequences of emotional (depression, anxiety, or other emotional problems) and psychological (ADD, bipolar disorder, schizophrenia, or other mental problems) problems on four aspects of labor market decisions: the probability of participating in the labor force, the likelihood of working full time, the average number of hours worked per week and annual earnings. In addition to analyzing the effects of either having or not having a mental illness, I also test if there …

Explaining The “Explained”: An Examination Of The Gender-Based Education Gap In India And Its Impact On The Wage Gap, Kanupriya Rungta

CMC Senior Theses

Analysis of the National Sample Survey Data from 2011-2012 shows that a gender-based education gap exists. Women are more likely than men to be illiterate. Some parents continue to view household duties as more important than education in the case of girls, causing some to drop out in primary and middle school, which leads to lower experience accumulation. However, females are almost equally as likely as males to be enrolled in school, and an equal proportion of males and females earn higher education degrees. More importantly, the difference in resource allocation seems to be minimal. Although education has a strong, …

Unemployment Rates During The Not-So-Great Recovery: How Much Is Structural Versus Cyclical?, Nicole Appleton

CMC Senior Theses

This paper presents evidence that the majority of the high post-recession unemployment rates is the result of an increase in the natural rate, rather than cyclical deviations from it. Moreover, I discuss the likely causes of the recent increases in the natural rate. Since most of the theorized causes of increases appear transitory in nature, I expect that the natural rate will soon decline, followed closely by a decrease in actual unemployment rates.