ANTITRUST TREATMENT OF NONPROFITS: SHOULD HOSPITALS RECEIVE SPECIAL CARE?

Nonprofit hospitals receive favorable tax treatment in exchange for providing socially beneficial activities. Extending this rationale suggests that nonprofit hospital mergers should be evaluated differently than mergers of for-profit hospitals because suppression of competition may also allow nonprofits to cross-subsidize care for the poor. Using detailed California data, we find no evidence that nonprofit hospitals are more likely than for-profit hospitals to provide more charity care or offer unprofitable services in response to an increase in market power. Therefore, we find no empirical justification for applying, as some courts have suggested, different antitrust standards for nonprofit hospitals. (JEL I11, L1, L44)     

Wives' Relative Wages,Husbands' Paid Work Hours,and Wives' Labor‐Force Exit

Economic theories predict that women are more likely to exit the labor force if their partners' earnings are higher and if their own wage rate is lower. In this article, I use the National Longitudinal Survey of Youth (N = 2,254) and discrete‐time event‐history analysis to show that wives' relative wages are more predictive of their exit than are their own or their husbands' absolute wages. In addition, I show that women married to men who work more than 45 hours per week are more likely to exit the labor force than are wives whose husbands' work approximately 40 hours per week. My findings highlight the need to examine how women's partners affect women's labor‐force participation.     

THE IMPACT OF TRADE COSTS ON FIRM ENTRY,EXPORTING, AND SURVIVAL IN KOREA

This study examines how changes in trade costs have affected entry, exit, productivity, and exporting in the Korean manufacturing sector. We verify several predictions of heterogeneous‐firm models of international trade. For example, falling import‐trade costs are associated with less entry and lower market shares among existing domestic firms, and higher total factor productivity for Korean manufacturing as a whole. The size of firms plays an important role in many of our results. New domestic firms are more likely to be small, but large firms are less likely to exit and more likely to have an increase in total factor productivity. (JEL F10, D24)     

MATERNAL LABOR SUPPLY AND THE AVAILABILITY OF PUBLIC PRE‐K: EVIDENCE FROM THE INTRODUCTION OF PREKINDERGARTEN INTO AMERICAN PUBLIC SCHOOLS

In the 1980s and 1990s, many states and districts began to provide funding for prekindergarten (PK) programs for the first time. This paper takes advantage of the staggered timing in program funding to investigate the effect that increased availability of PK programs has on the labor supply of mothers with 4‐year‐olds. I find that mothers with a 4‐year‐old and no younger children were significantly more likely to be in the labor force and employed once PK became available. Mothers with a 4‐year‐old and other younger children were also significantly more likely to be in the labor force and employed. (JEL I20, J01, J20)     

The Ability of Women to Repay Debt After Divorce

SUMMARY

This study uses questions on household repayment problems from the Panel Study of Income Dynamics to examine how the transition from marriage to divorce affects default rates by gender. The results show that divorced women are more likely to have repayment problems than divorced men and married-couple households. Further analysis reveals that divorced women who are receiving welfare are significantly less likely to default. Because average welfare benefits decreased in the early 1990s, the results suggest that this decrease provides a partial explanation for why the default rate increased between 1991 and 1995 for divorced women. The effect of welfare on the default rates of divorced men and married couples is insignificant. And there is no evidence that receiving child support and alimony payments significantly affects the probability of default.     

THE ROLE OF HOSPITAL COMPETITION ON TREATMENT EXPENDITURE AND OUTCOME: EVIDENCE FROM STROKE AND CARDIAC TREATMENT IN TAIWAN

This article examines whether market competition affects treatment expenditure and health outcomes of stroke and cardiac treatment in Taiwan. Our measure of treatment expenditure is the hospital expenditure paid at the index admission (short term) and the sum of inpatient and outpatient expenditures paid in the subsequent year (long term). Our measure of health outcome is the probability of death in 1 and 12 months after the hospital's discharge. Our measure of competition follows the method developed by Kessler and McClellan that calculates the Herfindal index based on the predicted patient flows using exogenous variables (e.g., traveling distance to hospitals). Using data of patients hospitalized for new stroke and cardiac treatment between 1997 and 2001 in Taiwan, we find that an increase of market competition results in an insignificant impact on a patient's mortality. In terms of treatment expenditure, our results indicate that hospitals facing more competition incur higher expenditures, either the short‐ or long‐term expenditure. Finally, we find evidence showing that an increase of treatment expenditure at admission is due to a raise of length of stay and treatment intensity per day as well as the usage of expensive equipment. (JEL I11, L13, L41)     

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)     

THE TAXPAYER RELIEF ACT OF 1997 AND HOMEOWNERSHIP: IS SMALLER NOW BETTER?

Prior to the Taxpayer Relief Act of 1997 (TRA97), the capital gain from the sale of a home was taxed differently for those over and under the age of 55. TRA97 eliminated this differential treatment. Using a difference‐in‐difference approach, we find that home sellers slightly under the age of 55 were 6.2% more likely to move for a less expensive house to maintain, 6.6% less likely to move for a larger place, and 5.2% more likely to reside in a condominium after TRA97's enactment, relative to those slightly over 55. (JEL H24, R21)     

Municipal Underbounding: Annexation and Racial Exclusion in Small Southern Towns*

Abstract This paper examines patterns of annexation, including municipal “underbounding,” in nonmetropolitan towns in the South; that is, whether blacks living adjacent to municipalities are systematically excluded from incorporation. Annexation‐or the lack of annexation‐can be a political tool used by municipal leaders to exclude disadvantaged or low‐income populations, including minorities, from voting in local elections and from receiving access to public utilities and other community services. To address this question, we use Tiger files, GIS, and other geographically disaggregated data from the Summary Files of the 1990 and 2000 decennial censuses. Overall, 22.6 percent of the fringe areas “at risk” of annexation in our study communities was African American, while 20.7 percent of the areas that were actually annexed during the 1990s was African American. However, communities with large black populations at the fringe were significantly less likely than other communities to annex at all‐either black or white population. Largely white communities that faced a “black threat”‐which we defined in instances where the county “percent black” was higher than the place “percent black”‐were also less likely to annex black populations during the 1990s. Finally, predominately white communities were much less likely to annex black populations, even when we controlled for the size of the black fringe population at risk of annexation. Such results provide evidence of racial exclusion in small southern towns.     

THE EFFECT OF INSTITUTIONAL EXPENDITURES ON EMPLOYMENT OUTCOMES AND EARNINGS

In recent decades, public attention on colleges has risen in response to rising college expenditures and costs. This study uses the Education Longitudinal Study of 2002 to investigate how spending impacts salaries and employment outcomes, controlling for selection. Our findings indicate that spending on instruction increases salaries, the probability of full‐time employment, and job match, particularly for more disadvantaged students, while there are smaller benefits of spending on student services for less disadvantaged students. Spending on research has large positive impacts on salary and the probability of full‐time employment, especially for disadvantaged students. (JEL I20, J24)     

The Timing of Cohabitation and Engagement: Impact on First and Second Marriages

Using a multistate sample of marriages that took place in the 1990s, this study examined associations between premarital cohabitation history and marital quality in first (N = 437) and second marriages (N = 200) and marital instability in first marriages (intact N = 521, divorced N = 124). For first marriages, cohabiting with the spouse without first being engaged or married was associated with more negative interaction, higher self‐reported divorce proneness, and a greater probability of divorce compared to cohabiting after engagement or marriage (with patterns in the same direction for marital positivity). In contrast, there was a general risk associated with premarital cohabitation for second marriages on self‐reported indices of marital quality, with or without engagement when cohabitation began.     

The role of eviction in veterans’ homelessness recidivism*

Eviction is one of the leading causes of homelessness in the U.S.A. Though permanent supportive housing (PSH) helps participants maintain housing, some still leave due to eviction. This study aimed to determine whether eviction is an important predictor of recidivism and time to return to homelessness for participants exiting PSH. The characteristics and post-exit service use of 2802 Veteran PSH participants were analyzed based on exit reason. A Cox proportional hazards survival analysis modeled risk factors for returning to homelessness within 360 days of exit. Compared with other exiters, evicted Veterans remained in the program for less time, were less likely to be receiving service-connected compensation, and used more services – particularly mental health and substance use services – following their exit, and those who returned to homelessness did so more quickly. Identifying participants who might benefit from more intensive services, project-based housing, or income supports may prevent evictions and subsequent returns to homelessness.     

Unsociable Work? Nonstandard Work Schedules,Family Relationships,and Children’s Well‐Being

Many children live in families where one or both parents work evenings, nights, or weekends. Do these work schedules affect family relationships or well‐being? Using cross‐sectional survey data from dual‐earner Canadian families (N= 4,306) with children aged 2 – 11 years (N= 6,156), we compared families where parents worked standard weekday times with those where parents worked nonstandard schedules. Parents working nonstandard schedules reported worse family functioning, more depressive symptoms, and less effective parenting. Their children were also more likely to have social and emotional difficulties, and these associations were partially mediated through family relationships and parent well‐being. For some families, work in the 24‐hour economy may strain the well‐being of parents and children.     

Race/Ethnicity,Attitudes, and Living With Parents During Young Adulthood

Non‐White young adults are more likely to live with their parents throughout their 20s, more likely to return home after going away to college, and less likely to leave again after returning. Scholars have speculated that subcultural differences in attitudes toward marriage and family play a key role in generating racial/ethnic differences in rates of coresidence with parents among young adults. Data from the National Education Longitudinal Survey of 1988 (N = 11,228) were analyzed in order to test this hypothesis. Attitudes toward marriage and family were significantly associated with coresidence, especially among young men, but did not substantially account for racial/ethnic differences in living arrangements. Among young non‐White women and young Black men, higher rates of coresidence were related to differences from Whites in socioeconomic or marital status (and sometimes both) that were largely independent of differences in attitudes toward marriage and family.     

WITHIN‐MOTHER ESTIMATES OF THE EFFECTS OF WIC ON BIRTH OUTCOMES IN NEW YORK CITY

There is a large literature suggesting that “WIC works” to improve birth outcomes. However, methodological limitations related to selection into the Women, Infants, and Children (WIC) program have left room for doubt about this conclusion. This article uses birth records from New York City to address some limitations of the previous literature. We estimate models with mother fixed effects to control for fixed characteristics of mothers and we directly investigate the way that time‐varying characteristics of mothers affect selection into the WIC program. We find that WIC is associated with reductions in low birth weight, even among full‐term infants, and with reductions in the probability that a child is “small for dates.” These improvements are associated with a reduction in the probability that the mother gained too little weight during pregnancy. Improvements tend to be largest for first born children. We also find that women on WIC are more likely to be diagnosed with chronic conditions, and receive more intensive medical services, a finding that may reflect improved access to medical care. (JEL I12, H42)     

EDUCATIONAL BENEFITS AND MILITARY SERVICE: AN ANALYSIS OF ENLISTMENT,REENLISTMENT, AND VETERANS' BENEFIT USAGE 1991–2005*

Montgomery GI Bill (MGIB) educational benefits are a prime recruiting tool in today's all‐volunteer military. This paper studies the effects of changes in education benefits using data of the period 1990–2005. Higher benefits lead to higher separation due to both pure incentive effects and by attracting more college‐oriented youth into military service. We deal with potential selection issues by distinguishing between anticipated and unanticipated benefit changes. Higher education benefits are associated with higher separation from the Army and Air Force, but not the other services. A $10,000 increase in MGIB benefits is estimated to increase usage by about 5 percentage points, but the duration of usage is estimated to be insensitive to benefit levels. (JEL H52, I21, J24)     

The Relationship Between Private Safety Nets and Economic Outcomes Among Single Mothers

This article examines the relationship between private safety nets and economic outcomes among 2,818 low‐income single mothers in three U.S. counties in the 1990s. I define private safety nets as the potential to draw upon family and friends for material or emotional support if needed. Using a combination of survey and administrative records data collected for the National Evaluation of Welfare‐to‐Work Strategies, I find that human capital deficits, depressive symptoms, and low self‐efficacy are associated with having less private safety net support, suggesting that social network disadvantages compound individual‐level disadvantages. I also find that mothers with strong private safety nets worked more, earned more, and were less reliant on welfare compared with mothers with more meager private safety nets.     

DESPERATION OR DESIRE? THE ROLE OF RISK AVERSION IN MARRIAGE

Because of the uncertainty inherent in searching for a spouse and the uncertainty of the future quality and state of the marriage itself, risk attitudes likely directly impact the timing of marriage. The effect of an individual’s risk aversion, measured via a series of hypothetical gambles over income on time to marriage, is examined using survival analysis. I find risk aversion significantly affects time to marriage, with more risk averse respondents marrying sooner than their more risk‐loving counterparts. Within‐family analyses using sibling data reveal a similar pattern. In addition, the effect of risk aversion on time to marriage is larger in magnitude and more statistically significant for men. One possible explanation for the different results between the sexes is that women value risk aversion as a desirable trait in potential mates. (JEL J10, J11, J12, J16)     

EXPERT OPINION AND PRODUCT QUALITY: EVIDENCE FROM NEW YORK CITY RESTAURANTS

We analyze whether consumers' quality perception and/or producer investment of New York City restaurants, measured by Zagat scores, responds to newly appearing expert opinion, measured by Michelin scores. Answering this question is of general economic interest as it applies to all markets with information asymmetries. Employing a difference‐in‐differences approach as well as a propensity score matching approach we find significant Michelin treatment effects on food and décor quality. Based on these changes, we find a Michelin‐induced price increase of approximately 30% per Michelin star. To examine whether the improved food and nonfood quality is based on restaurant investments or is merely imagined, we analyze nonfood investments by referring to Wine Spectator wine list awards. Our analysis suggests that Michelin‐reviewed restaurants are significantly more likely to invest in their wine list than others. As a result, Michelin reviewed restaurants are more likely to improve food and nonfood (esp. décor) quality leading to significant price increases. However, while restaurants that increase prices only due to décor and service improvements are more likely to go out of business, food improvements appear to secure a restaurant's survival. (JEL D11, L15, L66)