Public Economics Commons^™

Persistence In Industrial Policy Impacts: Evidence From Depression-Era Mississippi, Matthew Freedman

Matthew Freedman

Immigration, Employment Opportunities, And Criminal Behavior, Matthew Freedman, Emily Owens, Sarah Bohn

Matthew Freedman

Your Friends And Neighbors: Localized Economic Development And Criminal Activity, Matthew Freedman, Emily G. Owens

Matthew Freedman

Place-Based Programs And The Geographic Dispersion Of Employment, Matthew Freedman

Matthew Freedman

Low-Income Housing Development, Poverty Concentration, And Neighborhood Inequality, Matthew Freedman, Tamara Mcgavock

Matthew Freedman

Wage Bargaining Under The National Labor Relations Act, Jesse Schwartz, Quan Wen

Jesse A. Schwartz

Sections 8(a)(3) and 8(a)(5) of the National Labor Relations Act (NLRA) prohibit the management of a firm from unilaterally increasing the wage during contract negotiations without the union's approval. We show how the management can strategically increase the wage during negotiations without violating the NLRA. Increasing the wage during negotiations will upset the union's incentive to strike and decrease the union's bargaining power, thereby shrinking the set of equilibrium contracts in the firm's favor. Indeed, as the union becomes more patient, the set of equilibrium wages converges to the best equilibrium outcome to the firm.

Wage Negotiation Under Good Faith Bargaining, Jesse Schwartz, Quan Wen

Jesse A. Schwartz

We study the wage negotiation model of Haller and Holden (1990) and Fernandez and Glazer (1991) under the "Good Faith Bargaining" (GFB) rule, where a party may not demand more than it has previously demanded. The GFB rule significantly restricts feasible strategies, but at the same time, makes the game non-stationary and the analysis complicated. We introduce a state-dependent backward induction that generalizes Shaked and Sutton (1984) to characterize the equilibrium payoffs. We find that the GFB rule eliminates the union's credibility to strike. Without the strikes, the union's strategic opportunities during disagreement disappear, so that there is a unique …

Targeted Business Incentives And Local Labor Markets, Matthew Freedman

Matthew Freedman

Teaching New Markets Old Tricks: The Effects Of Subsidized Investment On Low-Income Neighborhoods, Matthew Freedman

Matthew Freedman

Reaching For The Brass Ring: The U.S. News & World Report Rankings And Competition, Ronald Ehrenberg

Ronald G. Ehrenberg

[Excerpt] The behavior of academic institutions, including the extent to which they collaborate on academic and nonacademic matters, is shaped by many factors. This paper focuses on one of these factors, the U.S. News & World Report (USNWR) annual ranking of the nation’s colleges and universities as undergraduate institutions, exploring how this ranking exacerbates the competitiveness among American higher education institutions. After presenting some evidence on the importance of the USNWR rankings to both public and private institutions at all levels along the selectivity spectrum, I describe how the rankings actually are calculated, then discuss how academic institutions alter their …

The 1995 Nrc Ratings Of Doctoral Programs: A Hedonic Model, Ronald Ehrenberg, Peter Hurst

Ronald G. Ehrenberg

We describe how one can use multivariate regression models and data collected by the National Research Council as part of its recent ranking of doctoral programs (Research-Doctorate Programs in the United States: Continuity and Change) to analyze how measures of program size, faculty seniority, faculty research productivity, and faculty productivity in producing doctoral degrees influence subjective ratings of doctoral programs in 35 academic fields. Using data for one of the fields, economics, we illustrate how university administrators can use the models to compute the impact of changing the number of faculty positions they allocate to the field on …

Advance Notice Provisions In Plant Closing Legislation: Do They Matter?, Ronald Ehrenberg, George Jakubson

Ronald G. Ehrenberg

This paper evaluates the cases for and against plant closing legislation. In spite of the growth of legislative efforts in the area, there has been surprisingly little effort devoted to analyzing what the effects are of existing plant closing legislation, of provisions in privately negotiated collective bargaining agreements that provide for advance notice in case of plant shutdowns and/or layoffs, and of voluntary employer provision of advance notice. The paper summarizes the results of previous research, and our own empirical analyses that used the January 1984 Bureau of Labor Statistics Survey of Displaced Workers, on the effects of advance notice …

Did Teachers’ Race And Verbal Ability Matter In The 1960’S? Coleman Revisited, Ronald Ehrenberg, Dominic Brewer

Ronald G. Ehrenberg

Our paper reanalyzes data from the classic 1966 study Equality of Educational Opportunity, or Coleman Report. It addresses whether teacher characteristics, including race and verbal ability, influenced "synthetic gain scores" of students (mean test scores of upper grade students in a school minus mean test scores of lower grade students in a school), in the context of an econometric model that allows for the possibility that teacher characteristics in a school are endogenously determined. We find that verbal aptitude scores of teachers influenced synthetic gain scores for both black and white students. Verbal aptitude mattered as much for black teachers …

Generation X: Redefining The Norms Of The Academy, Ronald Ehrenberg

Ronald G. Ehrenberg

[Excerpt] The members of Generation X are the young faculty members of today and the immediate future. The panelists at this session of the conference were asked to discuss the effects of this generation on academic norms and institutional governance and the types of new models that may be emerging for academia as a result of them. More specifically, they were asked if the attitudes and loyalties of these young faculty members really do differ from that of the Baby Boom Generation, how their attitudes and behavior affect graduate programs, what academic institutions will need to do to attract the …

Unequal Progress: The Annual Report On The Economic Status Of The Profession 2002-03, Ronald Ehrenberg

Ronald G. Ehrenberg

[Excerpt] Most colleges and universities adopted budgets for the 2002-03 academic year in the spring and early summer of 2002. At that time, a pessimist might have cited several factors – negative rates of return from institutional endowments, a rising unemployment rate, an economic recession, and large increases in college and university enrollments, for example - to predict that faculty members would not see their earnings increase substantially in real terms in the coming year. The good news is that, overall and on average, the pessimists' worst fears proved incorrect. The bad news is that the overall aver-ages don't tell …

Introduction [To Advance Notice Provisions In Plant Closing Legislation], Ronald Ehrenberg, George Jakubson

Ronald G. Ehrenberg

No abstract provided.

Work Incentives And The Food Stamp Program, Hilary Hoynes, Diane Schanzenbach

Diane Whitmore Schanzenbach

Labor supply theory makes strong predictions about how the introduction or expansion of a social welfare program impacts work effort. Although there is a large literature on the work incentive effects of AFDC and the EITC, relatively little is known about the work incentive effects of the Food Stamp Program and none of the existing literature is based on quasi-experimental methods. We use the cross-county introduction of the program in the 1960s and 1970s to estimate the impact of the program on the extensive and intensive margins of labor supply, earnings, and family cash income. Consistent with theory, we find …

How Does Your Kindergarten Classroom Affect Your Earnings? Evidence From Project Star, Raj Chetty, John Friedman, Nathaniel Hilger, Emmanuel Saez, Diane Schanzenbach, Danny Yagan

Diane Whitmore Schanzenbach

In Project STAR, 11,571 students in Tennessee and their teachers were randomly assigned to classrooms within their schools from kindergarten to third grade. This article evaluates the long-term impacts of STAR by linking the experimental data to administrative records. We first demonstrate that kindergarten test scores are highly correlated with outcomes such as earnings at age 27, college attendance, home ownership, and retirement savings. We then document four sets of experimental impacts. First, students in small classes are significantly more likely to attend college and exhibit improvements on other outcomes. Class size does not have a significant effect on earnings …

Is Being In School Better? The Impact Of School On Children's Bmi When Starting Age Is Endogenous, Patricia Anderson, Kristin Butcher, Elizabeth Cascio, Diane Schanzenbach

Diane Whitmore Schanzenbach

In this paper, we investigate the impact of attending school on body weight and obesity using a regression-discontinuity design. As is the case with academic outcomes, school exposure is related to unobserved determinants of weight outcomes because some families choose to have their child start school late (or early). If one does not account for this endogeneity, it appears that an additional year of school exposure results in a greater BMI and a higher probability of being overweight or obese. When we compare the weight outcomes of similar age children with one versus two years of school exposure due to …

Inside The War On Poverty: The Impact Of Food Stamps On Birth Outcomes, Douglas Almond, Hilary Hoynes, Diane Schanzenbach

Diane Whitmore Schanzenbach

This paper evaluates the health impacts of a signature initiative of the War on Poverty: the introduction of the modern Food Stamp Program (FSP). Using variation in the month FSP began operating in each U.S. county, we find that pregnancies exposed to FSP three months prior to birth yielded deliveries with increased birth weight, with the largest gains at the lowest birth weights. We also find small but statistically insignificant improvements in neonatal mortality. We conclude that the sizable increase in income from FSP improved birth outcomes for both whites and African Americans, with larger impacts for African American mothers.

Who Would Be Affected By Soda Taxes?, Diane Schanzenbach, Leslie Mcgranahan

Diane Whitmore Schanzenbach

In 2009–10, 17 states considered expanding taxation on sugar-sweetened beverages (SSBs) as a potential source of funds and a means to curb obesity. This article examines the various types of soda tax proposals, the underlying economic theory, and the anticipated impact of the proposed taxes on different population groups.

Adequate (Or Adipose?) Yearly Progress: Assessing The Effect Of "No Child Left Behind" On Children's Obesity, Patricia Anderson, Kristin Butcher, Diane Schanzenbach

Diane Whitmore Schanzenbach

This paper investigates how accountability pressures under No Child Left Behind (NCLB) may affect children’s rate of overweight. Schools facing increased pressures to produce academic outcomes may reallocate their efforts in ways that have unintended consequences for children’s health. For example, schools may cut back on recess and physical education in favor of increasing time on tested subjects. To examine the impact of school accountability programs, we create a unique panel data set of schools in Arkansas that allows us to test the impact of NCLB rules on students’ weight outcomes. Our main approach is to consider schools to be …

Experimental Evidence On The Effect Of Childhood Investments On Postsecondary Attainment And Degree Completion, Susan Dynarski, Joshua Hyman, Diane Schanzenbach

Diane Whitmore Schanzenbach

This paper examines the effect of early childhood investments on college enrollment and degree completion. We use the random assignment in the Project STAR experiment to estimate the effect of smaller classes in primary school on college entry, college choice, and degree completion. We improve on existing work in this area with unusually detailed data on college enrollment spells and the previously unexplored outcome of college degree completion. We find that assignment to a small class increases the probability of attending college by 2.7 percentage points, with effects more than twice as large among blacks. Among those with the lowest …

Left Behind By Design: Proficiency Counts And Test-Based Accountability, Derek Neal, Diane Schanzenbach

Diane Whitmore Schanzenbach

We show that within the Chicago Public Schools, both the introduction of NCLB in 2002 and the introduction of similar district-level reforms in 1996 generated noteworthy increases in reading and math scores among students in the middle of the achievement distribution but not among the least academically advantaged students. The stringency of proficiency requirements varied among the programs implemented for different grades in different years, and our results suggest that changes in proficiency requirements induce teachers to shift more attention to students who are near the current proficiency standard.

Consumption Responses To In-Kind Transfers: Evidence From The Introduction Of The Food Stamp Program, Hilary Hoynes, Diane Schanzenbach

Diane Whitmore Schanzenbach

Economists have strong theoretical predictions about how in-kind transfers, such as providing vouchers for food, impact consumption. Despite the prominence of the theory, there is little empirical work on responses to in-kind transfers, and most existing work fails to support the canonical theoretical model. We employ difference-indifference methods to estimate the impact of program introduction on food spending. Consistent with predictions, we find that food stamps reduce out-of-pocket food spending and increase overall food expenditures. We also find that households are inframarginal and respond similarly to one dollar in cash income and one dollar in food stamps.

Time Use And Food Consumption, Marianne Bertrand, Diane Schanzenbach

Diane Whitmore Schanzenbach

No abstract provided.

Do School Lunches Contribute To Childhood Obesity?, Diane Schanzenbach

Diane Whitmore Schanzenbach

This paper assesses whether school lunches contribute to childhood obesity. I employ two methods to isolate the causal impact of school lunches on obesity. First, using panel data, I find that children who consume school lunches are more likely to be obese than those who brown bag their lunches even though they enter kindergarten with the same obesity rates. Second, I leverage the sharp discontinuity in eligibility for reduced-price lunch to compare children just above and just below the eligibility cutoff. Students are more likely to be obese, and weigh more if they are income-eligible for reduced price school lunches.

First In The Class? Age And The Education Production Function, Diane Schanzenbach, Elizabeth Cascio

Diane Whitmore Schanzenbach

Older children outperform younger children in a school-entry cohort well into their school careers. The existing literature has provided little insight into the causes of this phenomenon, leaving open the possibility that school-entry age is zero-sum game, where relatively young students lose what relatively old students gain. In this paper, we estimate the effects of relative age using data from an experiment where children of the same biological age were randomly assigned to different classrooms at the start of school. We find no evidence that relative age impacts achievement in the population at large. However, disadvantaged children assigned to a …

What Have Researchers Learned From Project Star?, Diane Schanzenbach

Diane Whitmore Schanzenbach

No abstract provided.

Resource And Peer Impacts On Girls' Academic Achievement: Evidence From A Randomized Experiment, Diane Schanzenbach

Diane Whitmore Schanzenbach

No abstract provided.