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Working Paper
Why Is Mommy So Stressed? Estimating the Immediate Impact of the COVID-19 Shock on Parental Attachment to the Labor Market and the Double Bind of Mothers
I examine the impact of the COVID-19 shock on parents’ labor supply during the initial stages of the pandemic. Using difference-in-difference approaches and monthly panel data from the Current Population Survey (CPS), I compare labor market attachment, non-work activity, hours worked, and earnings and wages of those in areas with early school closures and stay-in-place orders with those in areas with delayed or no pandemic closures. While there was no immediate impact on detachment or unemployment, mothers with jobs in early closure states were 53.2 percent more likely than mothers in late ...
Working Paper
Disparities and Mitigation Behavior during COVID-19
This paper uses a unique large-scale survey administered in April 2020 to assess disparities on several dimensions of wellbeing under rising COVID-19 infections and mitigation restrictions in the US. The survey includes three modules designed to assess different dimensions of well-being in parallel: physical health, mental and social health, and economic and financial security. The survey is unique among early COVID-19 data efforts in that provides insight on diverse dimensions of wellbeing and for subnational geographies. I find dramatic declines in wellbeing from pre-COVID baseline measures ...
Working Paper
Optimal Income Taxation: An Urban Economics Perspective
We derive an optimal labor income tax rate formula for urban models in which tax rates are determined by traditional forces plus a new term arising from urban forces: house price, migration and agglomeration effects. Based on the earnings distributions and housing costs in large and small US cities, we find that in a benchmark model (i) optimal income tax rates are U-shaped, (ii) urban forces serve to raise optimal tax rates at all income levels and (iii) adopting an optimal tax system induces agents with low skills to leave large, productive cities. While agglomeration effects enter the ...
Working Paper
Household Consumption and Savings over the Life Cycle: The Roles of Demographics and Durables
The canonical prediction of life-cycle models, that individuals smooth consumption over their lifetime, has been mostly tested for developed countries and found little empirical support. We provide a novel, developing country perspective by analyzing patterns of life-cycle consumption, income and savings rates in India. In contrast to the U.S., Indian households exhibit no growth in nondurable consumption expenditures after adjusting for family size. We present evidence that saving for lumpy investments in consumer durables is a key driver of high savings rates and flat nondurable consumption ...
Working Paper
Improving Child Welfare in Middle Income Countries: The Unintended Consequence of a Pro-Homemaker Divorce Law and Wait Time to Divorce
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 ...
Working Paper
Sexual Orientation and Financial Well-Being in the United States
We study the relationship between financial well-being and sexual orientation in the United States using Survey of Household Economics and Decisionmaking (SHED) data for 2019-2022. We document that people who are lesbian, gay, and bisexual (or LGB) have significantly more difficulty managing financially than similarly situated heterosexual individuals—and this pre-dated the COVID-19 pandemic. Differences are found across a broad array of current and future financial well-being outcomes, including retirement savings, rainy-day funds, credit card and schooling debts, and the use of ...
Working Paper
Wealth Distribution and Retirement Preparation Among Early Savers
This paper develops a new combined wealth measure using data from the Survey of Consumer Finances, by augmenting data on net worth with estimates of defined benefit (DB) pension wealth and expected Social Security wealth. We use this combined wealth concept to explore retirement preparation among groups of households in their pre-retirement years (40-49 and 50-59) and also to explore the concentration of wealth. We find evidence of moderate, but rising, shortfalls in retirement preparation. We also show that including DB pension and Social Security wealth results in markedly lower measures of ...
Report
Human capital investments and expectations about career and family
This paper studies how individuals believe human capital investments will affect their future career and family life. We conducted a survey of high-ability currently enrolled college students and elicited beliefs about how their choice of college major, and whether to complete their degree at all, would affect a wide array of future events, including future earnings, employment, marriage prospects, potential spousal characteristics, and fertility. We find that students perceive large ?returns" to human capital not only in their own future earnings, but also in a number of other dimensions ...
Working Paper
On Intergenerational Immobility : Evidence that Adult Credit Health Reflects the Childhood Environment
Using a novel dataset that links socioeconomic background to future credit, postsecondary education, and federal student loan and grant records, we document that, even though it is not and cannot be used by credit agencies in assigning risk, background is a strong predictor of adult credit health. A relationship remains upon inclusion of achievement, attainment, and debt management metrics. These findings reveal a new dimension along which childhood circumstances persist into adulthood and imply that the many important contexts in which credit scores are relied upon to evaluate individuals ...
Discussion Paper
Leading, lagging, and left behind: identifying metropolitan leaders and labor market outcomes
From 1990 to 2010, the United States underwent significant changes in the makeup of the population and its educational attainment. During the period, bachelor's degree or higher attainment proportions rose significantly?7.9 percentage points?from 20.3 percent in 1990 to 28.2 percent in 2010. This growth happened unevenly, though. Of 283 metropolitan areas, only 78 were above the 7.9 percentage point increase, suggesting much more concentrated growth than would be expected if growth were experienced evenly. This paper documents the concentration of growth and examines four labor market ...