The Within‐Job Motherhood Wage Penalty in Norway, 1979–1996

The motherhood wage penalty is a substantial obstacle to progress in gender equality at work. Using matched employer–employee data from Norway (1979–1996, N = 236,857 individuals, N = 1,027,462 individual‐years), a country with public policies that promote combining family and career, we investigate (a) whether the penalty arises from differential pay by employers or from the sorting of employees on occupations and establishments and (b) changes in the penalties during a period with major changes in family policies. We find that (a) the penalty to motherhood was mostly due to sorting on occupations and occupation‐establishment units (mothers and nonmothers working in the same occupation and establishment received similar pay), and (b) the wage penalties to motherhood declined substantially over the 18‐year period.     

PERSUADED UNDER PRESSURE: EVIDENCE FROM THE NATIONAL FOOTBALL LEAGUE

We exploit a natural experiment within each National Football League game, finding the first evidence in professional sports that referees succumb to the pressures of satisfying team personnel in the vicinity of possible violations. Using generalized additive models for binomial outcomes, we show that these sideline‐based differences in penalty rates, which are observed on common but influential penalties including pass interference and holding, peak near the centralized location of players and coaches on the sideline. With sizable interests in referee decisions, coaches and players often try to manipulate referee behavior with verbal and nonverbal communications; such actions appear to be persuasive. (JEL ZO, H3)     

THE EFFECT OF ABORTION LEGALIZATION ON CHILDBEARING BY UNWED TEENAGERS IN FUTURE COHORTS

This article examines the long‐term impact of legalized abortion on childbearing by unwed teenagers in the United States. I find that the 1970 legalization of abortion in the repeal states led to about a 6% reduction in unwed childbearing rates for white women aged 15–20 who were born in these states immediately after abortion became legal. I find a larger long‐term impact for African‐American women of the same ages: a 7.5%–13% reduction in unwed childbearing. My estimates are smaller and not as precise for the effect of Roe v. Wade. This outcome is not surprising given that I am able to estimate only a potential lower bound of the effect on unwed childbearing rates. On the other hand, when I estimated a Difference‐in‐Difference regression for the non‐repeal states assuming that there was no national trend that affected the childbearing behavior of the treatment age groups and their respective control age groups separately, I found that the true effect of Roe v. Wade on childbearing by unwed teenagers was about an 11% and 3% reductions for white and African‐American teenagers, respectively. (JEL J13, I18)     

THE WELFARE EFFECTS OF TEMPORARY TAX CUTS AND SUBSIDIES: THEORY,ESTIMATION, AND APPLICATIONS

This article presents a tractable and intuitive theory on the welfare effects of temporary tax cuts and subsidies, fiscal policies that I generically term “holidays.” The Kaldor–Hicks efficiency effects are theoretically ambiguous, with competing pro‐ and anti‐efficiency effects on newly incentivized versus time‐shifted purchases. To rectify this ambiguity I derive expressions for the welfare effects that are consistent with constant elasticity assumptions and depend only upon readily and reliably observed information. To demonstrate the framework's broad applicability, I analyze two different policies: the 2009 Cash for Clunkers program and states' sales tax holidays. I estimate that both policies generated substantial deadweight loss. (JEL H21, H30, D91)     

Parenthood wage penalties in a double income society

We estimate how parenthood affects hourly wages using panel data for Norwegian employees in the years 1997–2007. Though smaller than for most other OECD countries, we find substantial wage penalties to motherhood, ranging from a 1.2 % wage reduction for women with lower secondary education to 4.9 % for women with more than four years of higher education. Human capital measures such as work experience and paid parental leave do not explain the wage penalties, indicating that in the Norwegian institutional context, mothers are protected from adverse wage effects due to career breaks. We do however find large heterogeneity in the effects, with the largest penalties for mothers working full time and in the private sector. Contrary to most studies using US data and to previous research from Norway, we find a small wage penalty also to fatherhood. Also for men, the penalty is greater for those who work full time and in the private sector. A substantial share of the fatherhood wage penalty is explained by paternity leave.     

WHO PAYS THE BAR TAB? BEER CONSUMPTION AND ECONOMIC GROWTH IN THE UNITED STATES

Few studies explore the linkages between health behaviors and macroeconomic outcomes. This study uses 1971–2007 state‐level data from the United States to estimate the impact of beer consumption on economic growth. We document that beer consumption has negative effects on economic growth measures once the endogeneity of beer consumption is addressed. Our estimates are robust to a range of specification checks. These findings run parallel to a large body of literature documenting substantial social and economic costs stemming from alcohol use. (JEL I1, O4)     

INTERMARRIAGE AND THE LABOR MARKET OUTCOMES OF ASIAN WOMEN

The impact of intermarriage with natives, on labor market outcomes of immigrants, is not homogeneous across ethnic groups. Wages of Asian women are compared with non‐Asians. Both ordinary least squares and instrumental variables estimates of the effects of intermarriage on the wages of Asian women are negative and significant. Non‐Asian women earn a wage premium that becomes insignificant when controls for selection into marriage are introduced. One possible explanation for the intermarriage penalty for Asians is an income effect of having a high‐earning native husband. Intermarriage penalties rise with husband's education. Assimilation patterns of intermarried Asians indicate that they have lower initial wages, market hours, and employment, but exhibit faster rates of growth over their years of stay. The results are robust across Asian subgroups and husband's ethnicity. (JEL J16, J12, J31, J61)     

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)     

BAD NEWS FROM THE FRONT AND FROM ABOVE: BOMBING RAIDS,MILITARY FATALITIES AND THE DEATH PENALTY IN NAZI GERMANY

We examine how the decision-making of political elites respond to an imminent external threat to the existence of the state in times of war. To do so, we exploit exogeneous variation in exposure to battle deaths and bombing raids to estimate the effect of variation in the intensity of war on the probability that individuals charged with treason and/or high treason in Nazi Germany received the death sentence. A doubling of the number of military fatalities as well as bombing raids in the same week in which a defendant was sentenced increased the likelihood of receiving the death penalty by about 10 percentage points. (JEL K14, N44)     

WEIGHING THE MILITARY OPTION: THE EFFECTS OF WARTIME CONDITIONS ON INVESTMENTS IN HUMAN CAPITAL

Serving in the military is an important vehicle through which young Americans invest in their human capital. As such, changes in the desirability of military service may affect the attainment of enlistment requirements, such as a high school degree or equivalent. Using American Community Survey data, we find that exposure to home‐state combat fatalities during the Iraq and Afghanistan Wars decreased the probability of high school completion, and increased the probability of general equivalency diploma completion. Using military data, we confirm that exposure to home‐state fatalities selectively deterred some individuals from enlisting. The results suggest military service and educational investments are complements. (JEL I20, I26, J24)     

ARE WINNERS PROMOTED TOO OFTEN? EVIDENCE FROM THE NFL DRAFT 1999–2012

Firms engaging in hiring face recruitment costs. To reduce these costs, firms concentrate their efforts in locations that are perceived as talent rich or have produced successful employees in the past. Such recruitment mechanisms may lead to statistical discrimination if they reduce uncertainty for a subset of candidates or if firms relate current employee attributes with the institution. In this article, I test for statistical discrimination associated with an individual's institutional affiliation that results from targeted hiring practices by using a unique individual‐level data set of National Football League (NFL) draft prospects. I find that conditional on individual ability, individuals from highly ranked college teams are drafted earlier than individuals from lower ranked institutions. Over the length of a player's professional career, a player's college institution has no effect on career success, indicating that certain players are damaged by this recruitment mechanism. Even though players can suffer substantial financial damages as a result of being drafted later in the draft, NFL team performance is not sufficiently affected for teams to exploit this bias. (JEL J71, J31)     

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)     

Negotiating the Lines of Contention: Counterframing and Boundary Work in the School of the Americas Debate1

Counterframing scholars typically identify counterframes that interpretively distinguish arguments among opponents. This approach assumes that counterframing strategy centers on directly countering the claims of protesters. In my in‐depth examination of the ongoing debate between protesters and officials of the former School of the Americas, I identify a form of counterframing that agrees with and embraces the moral alternatives implicit in accusers’ claims. I bring boundary construction theory into conversation with counterframing analysis to expand understanding of how framing and counterframing strategies revolve around the competition for common, moral resources. I explain that in the movement to close the School of the Americas, protesters’ claims have served as moral boundaries against which the targeted institution has redefined its objectives and programs. I introduce the concept of “boundary negotiation” to argue that counterframing strategy and success lie in the negotiation of moral boundaries called into question by social movements. I outline defensive and offensive modes of boundary negotiation and identify boundary negotiation as a mechanism driving the link between counterframing and demobilization.     

CALIFORNIA'S EXPORTS AND THE 2004 OVERSEAS OFFICE CLOSURES

Estimating the impact of state import promotion programs on exports is difficult because of a simultaneity program. The 2003 California budget crisis provides a natural experiment allowing for an unbiased estimate. Due to the crisis, California closed all 12 overseas offices on 1 January 2004. Applying the differences‐in‐differences estimator to a sample of 44 countries over eight years yields an estimated 2%–3% increase in exports if the offices remained open. But this estimate is not statistically significant. Therefore, I find no statistical evidence that California's overseas offices increased exports. (JEL F13, H76, O24)     

STUDENT RESPONSIVENESS TO EARNINGS DATA IN THE COLLEGE SCORECARD

Using the universe of SAT score sends to colleges and the exact date on which these scores are sent, we estimate how students responded to the release of the U.S. Department of Education's College Scorecard in September 2015. We find that data on annual cost and graduation rate, both of which were previously available, did not impact the volume of score sends received by colleges. By contrast, we estimate that each 10% increase in reported earnings resulted in a 2.4% increase in score sends. The impact is driven almost entirely by well‐resourced high schools and students. We find little evidence that the count or composition of enrolled students changed as a result of the Scorecard information shock with the exception of a slight increase in academic preparedness, as measured by SAT scores, among enrollees at colleges with higher reported earnings. (JEL I2, I23, I26, I28, L15)     

SEQUENTIAL JUDGMENT EFFECTS IN THE WORKPLACE: EVIDENCE FROM THE NATIONAL BASKETBALL ASSOCIATION

This study investigates the impact of past performance evaluations on future decisions involving judgment. I analyze the decisions of highly skilled and highly monitored referees regarding offensive fouls and violations in the National Basketball Association. After testing for equilibrium adjustments in player behavior, findings support a hypothesis of increased referee scrutiny on one team following a potentially questionable call on the opposing team. Results are inconclusive for subsequent changes in scrutiny toward the original violating team. The analysis provides a nonexperimental test of sequential bias on elite employees working under strict performance standards, and suggests a likely role for sequential judgment effects in other areas of economic activity. (JEL D03, L83, J44, M59)     

POLICY CHANGES IN MAJOR LEAGUE BASEBALL: IMPROVED AGENT BEHAVIOR AND ANCILLARY PRODUCTIVITY OUTCOMES

Offense in Major League Baseball (MLB) has decreased substantially since 2006, often attributed to increased testing and punitive action for use of performance enhancing drugs. However, there has been concurrent policy change affecting behavior of other league agents that may have also affected game play. I therefore examine the effect of these agents, MLB umpires, on offensive production in baseball. Estimates reveal that a substantial portion of the offensive reduction from 2008 through 2014 can be attributed to changes in the size of the strike zone. Implications are further discussed in the context of firm production relevant outcomes as they relate to the labor force and supervisor performance expectations. (JEL J44, Z22, Z28, L25)     

THE SLOWDOWN IN FIRST‐RESPONSE TIMES OF ECONOMICS JOURNALS: CAN IT BE BENEFICIAL?

The first‐response time (henceforth FRT) of economics journals has increased over the last four decades from 2 months to 3–6 months. The optimal FRT, however, is not zero because a longer FRT deters submissions of mediocre papers to good journals and consequently saves valuable time of referees and editors. Interestingly, the change in the actual FRT is in the same direction as the change in the optimal FRT. The latter has increased because of the availability of research on the Internet prior to publication and because papers became longer and more mathematical, increasing the costs of refereeing a paper. (JEL L82, A10, A14, I23, A19)     

INVESTING IN HEALTH: THE LONG‐TERM IMPACT OF HEAD START ON SMOKING

Head Start is a comprehensive, early childhood development program designed to augment the human capital and health capital levels of disadvantaged children. Evaluations of Head Start have tended to focus on cognitive outcomes; however, there is increasing recognition that other important outcomes can be influenced by participation. This article evaluates the long‐term impact of Head Start participation on smoking behavior in young adulthood by comparing the behavior of adults who attended Head Start with those of siblings who did not. We find that participation in Head Start reduces the probability that an individual smokes cigarettes as a young adult. (JEL I12, I28, I38)