Adolescent Career Development in Urban‐Residing Aboriginal Families in Canada

The purpose of this study was to understand how urban‐residing Aboriginal adolescent–parent dyads (n = 11) jointly constructed and acted on goals and strategies with their social supports (n = 17) to facilitate the adolescents' career development. A modified protocol following the qualitative action‐project method was used. A discrete joint project was identified for each family. These joint projects can be clustered into 3 joint career development projects: (a) navigating toward a safe future, (b) negotiating school continuance, and (c) intergenerational continuity through tradition of care. A 4th project emerging from the data was family survival. Family survival projects supplanted participants' efforts to engage in career development projects.     

FLEXIBLE CONTRACTS AND SUBJECTIVE WELL‐BEING

Theory suggests that when workers choose between permanent and flexible contracts, their utility should tend to equalize across contract types. New estimates of job satisfaction show the critical role played by unmeasured worker heterogeneity. They reveal that flexible contracts are a strong negative determinant of satisfaction with job security but are often a positive determinant of other dimensions of job satisfaction. As a consequence, flexible contracts have either a weak negative influence or no influence on overall job satisfaction. Moreover, flexible contracts generally have no impact on overall life satisfaction of the employed. These results appear broadly consistent with the presence of equalizing differences. (JEL J28, J41)     

SIMULTANEOUS DECISION‐MAKING IN COMPETITIVE AND COOPERATIVE ENVIRONMENTS

We experimentally investigate simultaneous decision‐making in two contrasting environments: one that encourages competition (lottery contest) and one that encourages cooperation (public good game). We find that simultaneous participation in the public good game affects behavior in the contest, decreasing sub‐optimal overbidding. Contributions to the public good are not affected by participation in the contest. The direction of behavioral spillover is explained by differences in strategic uncertainty and path‐dependence across games. Our design allows us to compare preferences for cooperation and competition. We find that in early periods, there is a negative correlation between decisions in competitive and in cooperative environments. (JEL C72, C91)     

WHEN DO SHELTER‐IN‐PLACE ORDERS FIGHT COVID‐19 BEST? POLICY HETEROGENEITY ACROSS STATES AND ADOPTION TIME

This study explores the impact of Shelter‐in‐Place Orders (SIPOs) on health, with attention to heterogeneity in their impacts. First, using daily state‐level social distancing data, we document that adoption of a SIPO was associated with a 9%–10% increase in the rate at which state residents remained in their homes full‐time. Using daily state‐level coronavirus case data, we find that approximately 3 weeks following the adoption of a SIPO, cumulative COVID‐19 cases fell by approximately 53.5%. However, this average effect masks important heterogeneity across states‐early adopters and high population density states appear to reap larger benefits from their SIPOs. (JEL H75, I12, I18)     

LEAGUE‐LEVEL ATTENDANCE AND OUTCOME UNCERTAINTY IN U.S. PRO SPORTS LEAGUES

We extend the breakpoint literature regarding annual league‐level attendance and the impact of outcome uncertainty to the National Basketball Association, National Football League, and National Hockey League. As our measures are different than past work on baseball, we also apply our model to the American and National Leagues. Attendance series for each league under consideration are not stationary overall, but are stationary with break points. No form of outcome uncertainty (game, play‐off, or across seasons) matters for attendance in hockey or baseball regardless of which game uncertainty variable is used. Under the measure of game uncertainty that recommends itself for football, only play‐off uncertainty matters for attendance. Whether outcome uncertainty matters for basketball depends on the measure of game uncertainty. Situational similarities in the break points across leagues suggest general areas for future research. (JEL L83, C22)     

QUANTIFYING BIAS IN DRIVING‐UNDER‐THE‐INFLUENCE ENFORCEMENT

As the marginal suspect and propensity to commit crime are unobserved across racial categories, it is difficult to quantify racial bias with law enforcement outcomes data. We test for racial bias in driving‐under‐the‐influence of alcohol enforcement. The assessment outcome variable, blood alcohol content (BAC), provides information about motorist's choices and allows for a more refined test for racial bias compared with other law enforcement outcome data. We find no evidence of racial bias in the relevant range where our model applies. However, we do find differences in find rates at the lowest levels of BAC, where there should be no impairment. (JEL J7, K42)     

Psychosocial Correlates and Consequences of Adolescents’ Self‐Generated Academic Goals and Appraisals

The current study examined whether characteristics of adolescents (i.e., externalizing problems) and their environments (i.e., social support, adverse childhood experiences) relate to academic goal setting, appraisals, and outcomes. Adolescents (n = 99; 87% Black/African American) 13–16 years old completed baseline interviews, and 80% also completed follow‐up interviews. Adolescents with more externalizing problems set fewer academic goals, and youth with social networks characterized by greater support (and less strain) appraised their academic goals as more supported and achievable. Adolescents’ appraisals of their academic goals, but not how many academic goals they had, predicted grades at follow‐up. Increasing social support (and reducing social strain) may foster adolescents’ positive appraisals of their academic goals, which may promote academic achievement.     

HETEROGENEITY IN STATE‐DEPENDENT UTILITY: EVIDENCE FROM STRATEGIC SURVEYS

A standard result of life‐cycle models under uncertainty is that optimizing individuals equate the expected marginal utility of consumption across states of the world if insurance is available at actuarially fair rates. A small empirical literature has suggested that the marginal utility of consumption is lower in less healthy states. We use a novel survey‐based measure to document significant heterogeneity in health‐state dependence across individuals largely orthogonal to standard controls. We further show that individuals value unhealthy states of the world more when facing work‐limiting disabilities than when facing disabilities requiring long‐term care, and when facing physical rather than mental disabilities. (JEL D12, I10)     

QUOTA‐HOPPING IN‐BOND DIVERSION

We show that the U.S. in‐bond system of imports may be used by firms to illegally avoid trade barriers, a practice known as in‐bond diversion. The illicit scheme involves declaring Chinese exports bound for Mexico but diverting them to the U.S. market while in transit, thus creating a gap between Chinese and Mexican reports. Using the phaseout and removal of U.S. quotas at the end of the Multifiber Agreement as a policy experiment, as well as variation in quota bindingness across products, we show that quota‐bound products were associated with larger trade gaps which shrunk following the quota removals. (JEL F13, O17, O19)     

The Dyadic Adjustment Scale: A Reliability Generalization Meta‐Analysis

We conducted a reliability generalization meta‐analysis to examine the internal consistency of Dyadic Adjustment Scale (DAS; Spanier, 1976 ) scores across 91 published studies with 128 samples and 25,035 participants. The DAS was found to produce total and Dyadic cohesion, Consensus, and Satisfaction scores of acceptable internal consistency, although lower than those originally reported by Spanier (1976) . Reliability estimates of these scores did not differ by the sexual orientation, gender, marital status, or ethnicity of the sample. The Affective Expression subscale was found to produce scores with poor Cronbach’s alpha across studies. Reliability estimates of Affective Expression scores were highly influenced by sample characteristics. The implications of these results are discussed as they relate to the use of the DAS in research.     

IMPORTED CAPITAL INPUT,ABSORPTIVE CAPACITY,AND FIRM PERFORMANCE: EVIDENCE FROM FIRM‐LEVEL DATA

Importing capital inputs has been recognized as a critical channel for technology transfer across countries. We examine whether and to what extent the productive impact of imported capital varies with firms' abilities to absorb new technologies using ordinary least squares, instrumental variable, and threshold regression estimators. We find that firms with higher absorptive capacity gain significantly more from importing foreign capital. Our results also suggest a threshold for such benefits. Furthermore, the productive contribution of skilled labor is significantly higher in firms that import foreign capital. Developing policies to augment absorptive capacity will help firms in developing countries to realize benefits associated with imported capital. (JEL F14, D24, L24, O33)     

ACADEMIC PROBATION,STUDENT PERFORMANCE,AND STRATEGIC COURSE‐TAKING

We use a regression discontinuity design to study how academic probation affects outcomes and course‐taking behaviors at a large public university in the United States. Consistent with past work, students placed on probation improve their grade point average (GPA) in the subsequent semester. We document that part of this GPA improvement is attributable to strategic course‐taking, and there is significant heterogeneity in these behaviors across race. Non‐minority students placed on probation attempt fewer credits, easier courses, and are more likely to withdraw from courses in the following term. In contrast, underrepresented minorities exhibit few of these behaviors, consistent with past work that suggests black and Hispanic students are less likely to possess helpful institutional knowledge and use available support systems such as academic counseling. (JEL I20, I23)     

THE EFFECTS OF SPANISH‐LANGUAGE BACKGROUND ON COMPLETED SCHOOLING AND APTITUDE TEST SCORES

We investigate the effect of speaking Spanish at home as a child on completed schooling and aptitude test scores using data from the NLSY79 on Hispanics who grew up in the United States. We model the accumulation of traditional human capital and English fluency, leading to the joint determination of schooling and test scores. We find that speaking Spanish at home reduces test scores, but has no significant effect on completed schooling. The reduction in test scores (1) increases in magnitude in three of the tests when the parents are more educated; (2) is much more dramatic when the choice of home language is made endogenous; and (3) is not systematically greater for the verbal than for the math tests. (JEL I20, J15)     

RENT‐SEEKING AND CAPITAL ACCUMULATION

A general model incorporating rent‐seeking activities in the standard neoclassical model of capital accumulation is presented. The welfare of the representative agent is negatively affected by the efficiency of rent‐seeking activities. Although intuitive, this result is not obvious because long‐run income can be positively affected by more efficient rent‐seeking activities. The model is used to provide explanations for some recent experiences in developing countries, including the relative poor performance of economies that experience a move to a more decentralized system and the observed path of total factor productivity (TFP) in countries like Ireland and Venezuela. (JEL D23, D74, O40, O41, O47)     

PIECE‐RATE CONTRACTS FOR OTHER‐REGARDING WORKERS

When workers are paid with piece rates, inequality arises naturally. We consider workers who care about income comparisons and are either status seeking or inequality averse. We identify circumstances under which inequality attitudes lead workers to exert more effort than they would otherwise, and also circumstances under which workers’ inequality attitudes lead firms to set lower piece rates than they would otherwise. The key behavioral assumption for both of these results to hold when workers are identical is behindness aversion, the property that changes in inequality matter more to the worker when he is behind than when he is ahead. (JEL D01, J33, M52)     

CONTRACT DESIGN AND SELF‐CONTROL WITH ASYMMETRIC INFORMATION

We study optimal contracting by a monopolistic seller of investment goods to a time‐inconsistent consumer and, in doing so, introduce asymmetric information to the model of DellaVigna and Malmendier (2004) . We find (1) the below‐marginal‐cost‐pricing rule may fail for a low‐value consumer; (2) the firm's profit is no longer unaffected by the consumer's short‐run impatience, as the latter is sophisticated. We find that there is an important threshold value of short‐run patience. When the consumer's short‐term patience is below this level, then, as the patience increases, the firm suffers. When the consumer's short‐run patience is above this threshold, then, as it increases, the firm benefits. Finally, we show that unlike monopoly, perfect competition with asymmetric information achieves the first‐best outcome. (JEL D03, D82, D91)     

TOURNAMENTS,FAIRNESS AND THE PROUHET‐THUE‐MORSE SEQUENCE

The Prouhet‐Thue‐Morse sequence occurs as the answer to various apparently unrelated questions in combinatorics, differential geometry, number theory, physics, music, turtle graphics, and other areas in the natural sciences. This paper shows that it can also be the answer to an important question in economics: how should the order of a sequential tournament competition between two agents be determined to make it fair? (JEL D00, Z00)     

Evaluation of the Psychometric Properties of the Gap‐Overlap Task in 10‐Month‐Old Infants

Understanding the development of attention is key to understanding cognitive maturation. The gap‐overlap task can be administered at all ages and is widely used to study the development of overt visual attention. However, studies using the gap‐overlap task report different measures and little is known about the tasks’ psychometric properties, especially in infants. We tested the 1‐week test–retest reliability of two frequently used gap‐overlap measures of attentional disengagement in 10‐month‐old infants; the gap effect as measured by the difference between the gap and overlap condition and the gap effect as measured by the difference between the gap and baseline condition. Sixty‐seven infants performed the gap‐overlap task twice, of which 45 infants had sufficient data quality for further analyses. Test–retest reliability of the overlap‐gap gap effect was higher (r = .50) than the baseline‐gap gap effect (r = .29). Moreover, the shared variance between overlap and baseline saccadic reaction times was moderate to high across sessions. In light of these results and the methodological challenges and limitations of infant research, we consider the overlap‐gap gap effect to be a good measure to study the development of attentional disengagement in infants and suggest the exclusion of the baseline condition in future studies.     

THE ECONOMICS OF EXOGAMOUS MARRIAGE IN SMALL‐SCALE SOCIETIES

Marriage is a core institution in almost every human society, including small‐scale societies based on foraging or subsistence agriculture. A crucial dimension of the marriage systems in such societies involves endogamy and exogamy, that is, the choice of a marriage partner from within one's own community or from an outside community. We develop a model in which the exogamy rate is higher when good local matches are scarce due to small community sizes, and when productivity differs across communities due to environmental shocks. These theoretical predictions are supported by econometric analysis of data from the standard cross‐cultural sample. (JEL D13, J11, N30, Z13)