A Computational Study of Replicated Clustering with an Application to Market Segmentation*

In most commercial applications of k-means clustering, researchers choose one set of kseed points to start the partitioning process; often, the initial set of seeds is chosen randomly. Using Monte Carlo simulation, we show that significant benefits are associated with replicated starting configurations that incorporate seed selection procedures based on a hierarchical clustering of sample points drawn from the original data matrix. A real-world application of the approach is then presented.     

High Wage Workers and High Wage Firms

We study a longitudinal sample of over one million French workers from more than five hundred thousand employing firms. We decompose real total annual compensation per worker into components related to observable employee characteristics, personal heterogeneity, firm heterogeneity, and residual variation. Except for the residual, all components may be correlated in an arbitrary fashion. At the level of the individual, we find that person effects, especially those not related to observables like education, are a very important source of wage variation in France. Firm effects, while important, are not as important as person effects. At the level of firms, we find that enterprises that hire high-wage workers are more productive but not more profitable. They are also more capital and high-skilled employee intensive. Enterprises that pay higher wages, controlling for person effects, are more productive and more profitable. They are also more capital intensive but are not more high-skilled labor intensive. We find that person effects explain about 90% of inter-industry wage differentials and about 75% of the firm-size wage effect while firm effects explain relatively little of either differential.     

Socioeconomic hardship,uncertainty about the future,and adolescent mental wellbeing over a year during the COVID-19 pandemic

Socioeconomic vulnerabilities put adolescents at risk for mental wellbeing issues, also in times of a pandemic. In the present longitudinal online survey study, we explored changes in mental wellbeing (i.e., mood and life satisfaction) during the COVID-19 pandemic. Second, we examined how socioeconomic hardship in online home schooling predicted adolescents’ mental wellbeing 1 year later. Third, we tested whether this relation was mediated by feelings of uncertainty about the future. Fourth, we tested whether this relation was moderated (in terms of a protective factor) by self-efficacy. In total, 177 Dutch-speaking adolescents aged 10–18 years (M_age = 15.64, SD_age = 1.72, 79% females) participated in all three 6-month separated waves (T1 = May 2020, T2 = November 2020, and T3 = May 2021). Mood results demonstrated that feelings of vigor decreased between T1 and T2, and feelings of tension and depression increased between T1, T2, and T3. Socioeconomic hardship in online home schooling in the early phase of the pandemic was negatively associated with both baseline mental wellbeing and 1 year later. Socioeconomic hardship at T1 predicted higher feelings of future uncertainty at T2, and higher levels of future uncertainty were associated with lower feelings of vigor, and higher feelings of tension and depression at T3. However, we found no evidence for mediation or moderation effects. In conclusion, the present findings illustrate the complexity of disentangling the adverse effects of socioeconomic hardship on adolescent mental wellbeing.     

Nonparametric Estimation of Triangular Simultaneous Equations Models

This paper presents a simple two-step nonparametric estimator for a triangular simultaneous equation model. Our approach employs series approximations that exploit the additive structure of the model. The first step comprises the nonparametric estimation of the reduced form and the corresponding residuals. The second step is the estimation of the primary equation via nonparametric regression with the reduced form residuals included as a regressor. We derive consistency and asymptotic normality results for our estimator, including optimal convergence rates. Finally we present an empirical example, based on the relationship between the hourly wage rate and annual hours worked, which illustrates the utility of our approach.     

Bacterial communities in peat swamps reflect changes associated with catchment urbanisation

Urban Ecosystems - Like many peat wetlands around the world, Temperate Highland Peat Swamps on Sandstone (THPSS), located in the Sydney Basin, Australia, have been impacted by urban development. In...