The Earnings and Employment Outcomes of the 2005 Cohort of Canadian Postsecondary Graduates with Disabilities

Canada's fear of future skill and labor shortages has brought youth with disabilities to the forefront of public policy. Many universities are now reporting that an increased proportion of their graduating students identify as having a disability, and as a result, educational achievement‐based programs designed to accommodate students’ needs are growing across campuses. Despite recent attention by policymakers on improving accessibility standards and increasing employer incentives, young Canadians with disabilities continue to face barriers in their transitions to the workforce. The nature and extent of the early workforce inequalities faced by postsecondary graduates with disabilities remains unclear. This paper draws on the 2005 cohort of Statistics Canada's National Graduates Survey to examine the early workforce outcomes of postsecondary graduates with disabilities. Contrary to theories of human capital, the results reveal significant earnings gaps between graduates with and without disabilities of various fields of study and levels of schooling. Further, graduates with a disability are even more disadvantaged in terms of securing employment, as they were significantly less likely to be employed full‐time, and were overrepresented among unemployed and part‐time workers across various fields of study and levels of postsecondary education.     

Federal Spending and Economic Growth in Appalachian Counties*

Abstract In this paper I use a model informed by key theories of regional processes, and I test three related hypotheses concerning the effects of different types of federal spending (public investment, defense, salaries/wages) on economic growth in the 399 Appalachian counties during recent business cycles. The analysis incorporates a maximum likelihood estimate spatial lag regression model and shows that federal public investment spending and defense spending exerted net positive effects on per capita income, civilian employment, and private nonfarm employment growth rates between 1983 and 1988. In addition, public investment spending had a positive relationship with percentage of earnings from mining for the 1983–1988 period. Federal spending, however, had less consistent effects during the 1989–1992 recession. Implications for theory and research on regional processes are discussed.     

THE IMPACT OF FISCAL POLICY ON PROFITS

This paper investigates the impact of fiscal policy on profits using panel data for 18 high‐income OECD countries during the period 1975–1999. We estimate a profit equation allowing a consistent treatment of the government budget constraint, and we try to disentangle the effects of different spending and taxation items. As far as public spending is concerned, our results strongly suggest that capital expenditures are associated with higher profits, while expenditures on goods and services and in particular on wages and salaries deteriorate profits. In general, “productive” expenditures seem to increase profits while the effect of “unproductive” expenditures is insignificant. Transport and communication expenditures seem to have a positive impact on profits. On the revenue side, we find that both direct and indirect taxation has a negative impact on profits. (JEL E62, H32, H54)     

Do Children's Behavior Problems Limit Poor Women's Labor Market Success?

Economically disadvantaged mothers face numerous barriers to stable, quality employment opportunities. One barrier that has received limited attention in previous research is having a child with significant psychological or behavioral problems. Using a representative sample of low‐income mothers and early adolescent children from the Three‐City Study (N = 717), we assessed whether adolescents' behavior problems prospectively predicted mothers' employment status, consistency, and quality. Lagged random‐effects regression models suggested that adolescents' psychological distress and delinquency inhibited the labor market success of disadvantaged mothers, although school problems were related to greater work effort among mothers. Links between labor market success and both psychological distress and delinquency differed across mothers with male and female adolescents.     

AFFIRMATIVE ACTION AND DYNAMICS OF WORK‐ETHIC PREFERENCES

This study examines the cultural‐transmission effects of compensatory‐discrimination affirmative action policies on work‐ethic preference dynamics for a population in a caste‐based segregated economy in which some high‐paid jobs are reserved for historically disadvantaged lower‐caste individuals. Cultural attitudes toward preferences for work‐loving and leisure‐loving traits evolve endogenously. The compensatory‐discrimination policies affect differently the preference dynamics for insiders (entitled to employment quota) and outsiders (not entitled to employment quota). Efficient and inefficient equilibria are possible, with larger or smaller proportions of individuals with a work ethic among the insider and outsider populations. The model shows that the commonly conceived conclusion that a job reservation policy benefits a disadvantaged group at the cost of efficiency and economic growth is not a necessary outcome. (JEL A12, C62, J71)     

DO SUPPLY‐SIDE FORCES EXPLAIN GEOGRAPHIC VARIATION IN HEALTH CARE USE?

Regional variation in health care utilization has been well‐documented, yet uncertainty persists about whether this variation is primarily the result of supply‐side or demand‐side forces. We provide new evidence on this issue by examining changes in health care use for the near‐elderly as they transition from being uninsured into Medicare. Results support a causal, supply‐side explanation of regional variation. Estimates indicate that gaining Medicare coverage in above‐median spending regions increases the probability of at least one hospital visit by 40% and the probability of having more than five doctor visits by 26% relative to similar individuals in below‐median spending regions. (JEL D43, H42, H51, I1, I11, I13)     

Impact of caring for children with medical complexity on parents’ employment and time

Objectives: This study examined parental care of children with medical complexity (CMC) in terms of time spent providing care and impacts on employment and career.

Methods: We recruited caregivers of 153 CMC in a tertiary center complex care program to participate in a cross-sectional mail survey.

Results: Among 95 respondents (62% of eligible), 75% of primary caregivers and 53% of spouses experienced employment losses and one-third experienced negative career outcomes attributed to care for CMC. On weekdays during the day (6 a.m.–6 p.m.), 55% of caregivers provided care for 8 hours or more. On weekday evenings and nights, half of caregivers provided care for at least 6 hours, including 53% of caregivers who provided care from midnight to 6 a.m.; these proportions were higher on weekends. Compared to employed caregivers, non-employed caregivers reported spending more time providing care on weekdays (P?=?.001), but less time providing care on weekend evenings (P?=?.019). On weekend days and weekday evenings/nights, employment was not associated with duration of care.

Conclusions: Caring for CMC frequently impacts employment and careers of caregivers and spouses. Employed and non-employed caregivers invest substantial time in care. Research on CMC should include indirect costs of family care in terms of employment, income, and time.     

THE EFFECTS OF SINGLE MOTHERS' WELFARE USE AND EMPLOYMENT DECISIONS ON CHILDREN'S COGNITIVE DEVELOPMENT

We examine the effects of single mothers' welfare use and employment decisions on children's short‐run cognitive development, as measured by their preschool standardized math test scores. We control for three mechanisms through which these decisions might affect children's outcomes: direct monetary benefits, parental time invested in the child, and nonpecuniary benefits from in‐kind transfer programs such as Medicaid. We employ a correction function approach and control for state‐fixed effects to address the endogenous nature of welfare participation and employment decisions. Our estimates suggest that although each additional quarter of either mother's employment or welfare use results in only a small increase in a child's standardized math test score, the total effects after several quarters are sizable. We allow mothers' decisions to have varying effects on attainment by children's observed innate ability and by the intensity of welfare use and employment. A child who has the mean level of observed innate ability with a mother who simultaneously worked and used welfare in all 20 quarters after childbirth experiences an 8.25 standardized‐point increase in standardized scores. The positive impact is more pronounced for the more disadvantaged children, who tend to be born to mothers with low Armed Forces Qualification Test scores, or have lower birth weights. We also examine the effects using timing of employment and welfare use, as well as children's maturity and gender. (JEL I3, J13, J22)     

THE AFFORDABLE CARE ACT AND COLLEGE ENROLLMENT DECISIONS

We investigate the effect of the expansion of the federal dependent coverage mandate for young adults under the Affordable Care Act (ACA) on college enrollment decisions of young Americans. The expansion removes the requirement that young individuals need to be enrolled as full‐time students in order to remain on their parents' health insurance past the age of 18 and expands the coverage mandate to age 26 irrespective of student status. This changes the incentives for the full‐time college enrollment decisions of young individuals. We use panel data from the Survey of Income and Program Participation (SIPP) for the years 2003–2013 and estimate that the dependent coverage expansion under the ACA decreases the probability to enroll as full‐time student by 3 percentage points using a difference‐in‐differences framework. Furthermore, we find that part‐time college enrollment is unaffected by the new policy. The results are robust to changes in the model specification and become stronger when we increase the sample overlap between treatment and control groups using trimming based on propensity scores. (JEL C35, I23, I10, I18)     

R&D AND CREDIT RATIONING IN SMEs

We study the effects of credit rationing on research and development (R&D) investment using survey and accounting data on a large representative sample of manufacturing small‐ and medium‐sized enterprises (SMEs). Our econometric model accounts for the endogeneity of our credit rationing indicator and employs an innovative theory‐based identification strategy. We find that credit rationing has a significantly negative effect on both the probability to set up R&D activities and on the level of R&D spending (conditioned on the R&D decision), but the overall estimated reduction in R&D spending is largely to be associated with the first effect. (JEL G21, D82, O32, C35)     

Debunking macro myths: findings from recent graduates about jobs,salaries, and skills

Research suggests that interest in macro social work practice is declining, a trend that has been well documented in the United States. Studies find that social work educators and practitioners may foster beliefs among MSW students that discredit macro practice and associated skills while asserting macro graduates are likely to face poorer employment prospects and lower salaries than micro counterparts as they start their careers. This study builds on and extends this literature by examining 27 skills in their current job using a five-point Likert-type scale among the early career trajectory of MSW alumni (N = 182) who graduated between 2008 and 2012 from a public social work institution in the southeastern United States. The skills included in the survey, as well as decisions about how to group them into scales, were made based on theoretical links between the skills by macro faculty members. Findings highlight the use of macro practice skills regardless of concentration focus, no differences in salary, or the time it takes to find employment between micro and macro alumni. Implications for social work education are discussed.     

Motherhood and Employment Among Whites,Hispanics, and Blacks: A Life Course Approach

Research has shown that having children reduces women's employment; yet how this effect differs for racial minorities has received less attention. Using random effects models and data from the National Longitudinal Survey of Youth (N = 4,526), this study investigates the association between motherhood and employment among Whites, Hispanics, and Blacks over women's entire reproductive span. Results indicate that having children reduces labor force participation primarily by deterring full‐time employment. This effect is stronger and lasts longer among Whites, smaller and shorter among Hispanics, and brief among Blacks. Motherhood reduces part‐time employment for young mothers, but temporarily increases it for older mothers. Early childbearing partly explains Black and Hispanic women's low employment rates at young ages; interestingly, the evidence indicates that their employment prospects would benefit the most from delaying childbearing. This study highlights the relevance of intersectionality and the life course perspective for investigating inequality in the labor market.     

Life‐Course Pathways and the Psychosocial Adjustment of Young Adult Women

We examined 7 life‐course pathways from adolescence through the early adult years and their links with general health and psychosocial adjustment among 2,290 women from the National Longitudinal Study of Adolescent Health. Young women who followed a pathway involving college attendance to full‐time employment with no family‐formation transitions were functioning comparatively well with respect to general health, depression, and self‐esteem. In contrast, young women who followed pathways involving early motherhood were functioning less well. Fixed‐effects models suggested that the differences were due to selection factors. Young women who followed the pathway of college to full‐time employment exhibited an increase in heavy drinking, whereas women who became married mothers exhibited a decrease in the same. Involvement in illegal behavior declined for all groups but least so for women who attended college.     

PRODUCTIVITY EFFECTS OF PUBLIC CAPITAL MAINTENANCE: EVIDENCE FROM U.S. STATES

This article assesses the productivity effects of infrastructure operation and maintenance (O&M) spending by state and local governments in the 48 contiguous U.S. states over the period 1978–2000. We explicitly account for transboundary spillovers of capital and O&M spending and follow a semiparametric methodology that allows us to estimate state‐specific output elasticities. We find strong evidence that in all 48 states the cross‐state spillover effects of O&M outlays on productivity exceed their within‐state impacts and are substantially higher than the spillover effects of capital expenditure. (JEL C14, E22, E62, H76, O11, O47, R11)     

Maternal Employment,Nonparental Care,Mother‐Child Interactions,and Child Outcomes During Preschool Years

This study examines the relationships between maternal employment, nonparental care, mother‐child interactions, and preschoolers’ outcomes. Data from the Canadian National Longitudinal Survey of Children and Youth (N= 1,248) show that maternal employment during the previous year, especially full‐time employment, was related to care by nonrelatives, longer hours in school settings, fewer positive mother‐child interactions, and less reading with parents at ages 2 and 4. Controlling for these mediators, maternal employment was related to children’s lower hyperactivity, more prosocial behavior, and less anxiety at age 4, although little relationship was found at age 2. The results indicate that preschoolers may benefit from maternal employment, but benefits may be offset by long hours of nonparental care and fewer positive mother‐child interactions.     

Trapped in migrants’ sectors? Polish women in the Icelandic labour market

The employment‐driven migrations from Poland to Iceland have largely been pioneered by Polish women. They outnumbered men among Polish residents in this country until the economic boom since 2005 triggered large‐scale male immigration. This trend slowed down with the outbreak of the financial crisis, as the recession severely affected the male‐dominated construction industry. The analysis of Polish female migrants’ working experiences shows that recent inflows are mainly shaped by the nature of labour demand as well as the social policies and care services in Iceland. Although economically integrated, compared with native women Polish women tend to occupy rather disadvantaged positions. They seem concentrated in a few low‐skilled occupations that bring little prestige and low income. On the other hand, they were less affected by the financial crisis, in the sense that many of them maintained work, though some experienced lowering of salaries or reduction of working hours.     

DYNAMIC TREATMENT EFFECTS OF TEACHER'S AIDES IN AN EXPERIMENT WITH MULTIPLE RANDOMIZATIONS

Using data from a large‐scale two‐stage experiment wherein students and teachers were randomized at both kindergarten entry and first grade to be sorted into classes either with or without full‐time teacher's aides, I estimate an econometric model that is uniquely suited to take advantage of this design to determine their effect on academic achievement. The identification strategy produces fully nonparametric dynamic average treatment effects for every treatment path. I find that the use of full‐time teacher's aides increases student achievement, but the benefits appear to accrue mostly to those of higher socioeconomic status and to White students. A cost‐benefit analysis shows that full‐time teacher's aides may be a competitive alternative to class size reductions in terms of net social benefits. (JEL I21, I28)     

SPENDING WISELY? HOW RESOURCES AFFECT KNOWLEDGE PRODUCTION IN UNIVERSITIES

Every year billions of dollars are spent on research grants to produce new knowledge in universities. However, as grants may also affect other research funding, the effects of financial resources on knowledge production remain unclear. To uncover how financial resources affect knowledge production, we study the effects of research spending itself. Utilizing the legal constraints on university spending from an endowment we develop an instrumental variables approach. Our approach instruments for university research spending with time‐series variation in stock prices interacted with cross‐sectional variation in initial endowment market values for research universities in the United States. Our analysis reveals that research spending has a substantial positive effect on the number of papers produced, but not their impact. We also demonstrate that research spending effects are quite similar at private and public universities. (JEL H5, I2, O3)     

Poverty,Welfare, and the Livelihood Strategies of Nonmetropolitan Single Mothers*

Abstract Using the National Survey of Family Growth, we document nonmetropolitan and metropolitan single mothers' economic livelihood strategies. We have three objectives: (1) examine differences in employment, cohabitation, co‐residence with other adults, and welfare receipt; (2) evaluate how these livelihood strategies are associated with economic well‐being; and (3) identify key metro‐nonmetro differences in the effectiveness of these livelihood strategies in improving the economic well‐being of single mothers. We find surprisingly similar livelihood strategies in nonmetropolitan and metropolitan areas. Employment, cohabitation, and co‐residence are strongly associated with economic well‐being. However, nonmetro single mothers are less likely than metropolitan mothers to benefit economically from full‐time employment. Given our results, “work‐first” policies are likely to be less efficacious in nonmetropolitan areas. Indeed, nonmetropolitan single mothers are often “triply disadvantaged” compared to their metro counterparts; they experience higher rates of poverty, higher barriers to welfare receipt, and lower economic returns from other livelihood strategies.     

STRUCTURAL ESTIMATION OF LABOR ADJUSTMENT COSTS WITH TEMPORALLY DISAGGREGATED DATA

I estimate a dynamic optimization model of labor adjustment of establishments based on data that permit: specifying any desired adjustment frequency; estimating the model based on net and on gross employment flows; and allowing for simultaneous hirings and separations. The unit of observation is an establishment. Results for adjustment costs depend crucially on the model specification. Only a monthly adjustment model yields cost parameters in a reasonable range, while estimates from quarterly and annual adjustment models imply negative or excessive adjustment costs. Estimating the model on net employment changes implies hiring and separation costs of four annual median salaries, while the model on gross changes implies costs on the order of 1.7 annual median salaries. (JEL C25, D22, J23)