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Working Paper
Improving Child Welfare in Middle Income Countries: The Unintended Consequence of a Pro-Homemaker Divorce Law and Wait Time to Divorce
Heggeness, Misty
(2019-10-11)
This study identifies the impact of access to and the speed of divorce on the welfare of children in a middle income largely Catholic country. Using difference-in-difference estimation techniques, I compare school enrollment for children of married and cohabiting parent households before and after the legalization of divorce. Implementing pro-homemaker divorce laws increased school enrollment anywhere from 3.4 to 5.5 percentage points, and the effect was particularly salient on secondary school students. I provide evidence that administrative processes influencing the speed of divorce affect ...
Opportunity and Inclusive Growth Institute Working Papers
, Paper 27
Working Paper
Which Ladder to Climb? Wages of Workers by Job, Plant, and Education
Kuhn, Moritz; Bayer, Christian
(2018-09-12)
Wages grow but also become more unequal as workers age. Using German administrative data, we largely attribute both life-cycle facts to one driving force: some workers progress in hierarchy to jobs with more responsibility, complexity, and independence. In short, they climb the career ladder. Climbing the career ladder explains 50% of wage growth and virtually all of rising wage dispersion. The increasing gender wage gap by age parallels a rising hierarchy gap. Our findings suggest that wage dynamics are shaped by the organization of production, which itself likely depends on technology, the ...
Opportunity and Inclusive Growth Institute Working Papers
, Paper 15
Working Paper
Misallocation and Intersectoral Linkages
Popov, Latchezar; Osotimehin, Sophie
(2020-02-18)
We analytically characterize the aggregate productivity loss from allocative distortions in a setting that accounts for the sectoral linkages of production. We show that the effects of distortions and the role of sectoral linkages depend crucially on how substitutable inputs are. We find that the productivity loss is smaller if input substitutability is low. Moreover, with low input substitutability, sectoral linkages do not systematically amplify the effects of distortions. In addition, the impact of the sectors that supply intermediate inputs becomes smaller. We quantify these effects in ...
Opportunity and Inclusive Growth Institute Working Papers
, Paper 30
Working Paper
Dynamic Responses to Immigration
Colas, Mark
(2018-01-29)
I analyze the dynamic effects of immigration by estimating an equilibrium model of local labor markets in the US. The model includes firms in multiple cities and sectors which combine capital, skilled and unskilled labor in production, and forward-looking workers who choose their sector and location each period as a dynamic discrete choice. A counterfactual unskilled immigration inflow leads to an initial wage drop for unskilled workers and a wage increase for skilled workers. These effects dissipate rapidly as unskilled workers migrate away from heavily affected cities and workers shift ...
Opportunity and Inclusive Growth Institute Working Papers
, Paper 6
Working Paper
Adjusting to Robots: Worker-Level Evidence
Findeisen, Sebastian; Woessner, Nicole; Suedekum, Jens; Dauth, Wolfgang
(2018-08-21)
We estimate the effect of industrial robots on employment, wages, and the composition of jobs in German labor markets between 1994 and 2014. We find that the adoption of industrial robots had no effect on total employment in local labor markets specializing in industries with high robot usage. Robot adoption led to job losses in manufacturing that were offset by gains in the business service sector. We analyze the impact on individual workers and find that robot adoption has not increased the risk of displacement for incumbent manufacturing workers. They stay with their original employer, and ...
Opportunity and Inclusive Growth Institute Working Papers
, Paper 13
Working Paper
The Lost Ones: The Opportunities and Outcomes of Non-College-Educated Americans Born in the 1960s
Yang, Fang; De Nardi, Mariacristina; Borella, Margherita
(2019-03-18)
White, non-college-educated Americans born in the 1960s face shorter life expectancies, higher medical expenses, and lower wages per unit of human capital compared with those born in the 1940s, and men's wages declined more than women's. After documenting these changes, we use a life-cycle model of couples and singles to evaluate their effects. The drop in wages depressed the labor supply of men and increased that of women, especially in married couples. Their shorter life expectancy reduced their retirement savings but the increase in out-of-pocket medical expenses increased them by more. ...
Opportunity and Inclusive Growth Institute Working Papers
, Paper 19
Working Paper
Manning Up and Womaning Down: How Husbands and Wives Report Earnings When She Earns More
Heggeness, Misty; Murray-Close, Marta
(2019-12-10)
To infer social preferences regarding the relative earnings of spouses, we use measurement error in the earnings reported for married couples in the Current Population Survey. We compare the earnings reported for husbands and wives in the survey with their “true” earnings as reported by their employers to tax authorities. Compared with couples where the wife earns just less than the husband, those where she earns just more are 15.9 percentage points more likely to under-report her relative earnings. This pattern reflects the reporting behavior of both husbands and wives and is consistent ...
Opportunity and Inclusive Growth Institute Working Papers
, Paper 28
Working Paper
Cyclical Labor Income Risk
Nakajima, Makoto; Smirnyagin, Vladimir
(2019-08-05)
We investigate cyclicality of variance and skewness of household labor income risk using PSID data. There are five main findings. First, we find that head's labor income exhibits countercyclical variance and procyclical skewness. Second, the cyclicality of hourly wages is mutted, suggesting that head's labor income risk is mainly coming from the volatility of hours. Third, younger households face stronger cyclicality of income volatility than older ones, although the level of volatility is lower for the younger ones. Fourth, while a second earner helps lower the level of skewness, it does not ...
Opportunity and Inclusive Growth Institute Working Papers
, Paper 22
Working Paper
Why Do Couples and Singles Save During Retirement?
De Nardi, Mariacristina; Jones, John Bailey; French, Eric; McGee, Rory
(2021-05-25)
While the savings of retired singles tend to fall with age, those of retired couples tend to rise. We estimate a rich model of retired singles and couples with bequest motives and uncertain longevity and medical expenses. Our estimates imply that while medical expenses are an important driver of the savings of middle-income singles, bequest motives matter for couples and high-income singles, and generate transfers to non-spousal heirs whenever a household member dies. The interaction of medical expenses and bequest motives is a crucial determinant of savings for all retirees. Hence, to ...
Opportunity and Inclusive Growth Institute Working Papers
, Paper 49
Working Paper
Measuring Movement and Social Contact with Smartphone Data: A Real-Time Application to COVID-19
Couture, Victor; Green, Allison; Handbury, Jessie; Dingel, Jonathan; Williams, Kevin
(2020-07-09)
Tracking human activity in real time and at fine spatial scale is particularly valuable during episodes such as the COVID-19 pandemic. In this paper, we discuss the suitability of smartphone data for quantifying movement and social contact. We show that these data cover broad sections of the US population and exhibit movement patterns similar to conventional survey data. We develop and make publicly available a location exposure index that summarizes county-to-county movements and a device exposure index that quantifies social contact within venues. We use these indices to document how ...
Opportunity and Inclusive Growth Institute Working Papers
, Paper 35
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