nep-edu New Economics Papers
on Education
Issue of 2009‒05‒23
29 papers chosen by
Joao Carlos Correia Leitao
Technical University of Lisbon

  1. Why do Institutions of Higher Education Reward Research While Selling Education? By Dahlia K. Remler; Elda Pema
  2. Student Selection and Incentives By Gerald Eisenkopf
  3. Economic Education’s Roller Coaster Ride In Hawaii, 1956-2006 By Kimberly Burnett; Sumner La Croix
  4. Noncognitive Skills, School Achievements and Educational Dropout By Katja Coneus; Johannes Gernandt; Marianne Saam
  5. The Effect of Student Aid on the Duration of Study By Daniela Glocker
  6. An Arrested Virtuous Circle? Higher Education and High-Tech Industries in India By Rakesh Basant
  7. Participation in Higher Education: A Random Parameter Logit Approach with Policy Simulations By Flannery, Darragh; O'Donoghue, Cathal
  8. Interpreting Degree Effects in the Returns to Education By Flores-Lagunes, Alfonso; Light, Audrey
  9. Intergenerational Progress in Educational Attainment when Institutional Change Really Matters: a Case Study of Franco-Americans vs. French-Speaking Quebeckers By Daniel Parent
  10. The Impact of State-Level Nutrition-Education Program Funding on BMI: Evidence from the Behavioral Risk Factor Surveillance System By Kerry Anne McGeary
  12. The Long-run Effects of Household Liquidity Constraints and Taxation on Fertility, Education, Saving, and Growth By Erasmo Papagni
  13. Public School Availability for Two-year Olds and Mothers' Labour Supply By Goux, Dominique; Maurin, Eric
  14. Innovation, spillovers, and university-industry collaboration: An extended knowledge production function approach By Roderik Ponds; Frank van Oort; Koen Frenken
  15. TV or not TV? Subtitling and English skills By Augusto Rupérez-Micola; Arturo Bris; Albert Banal-Estañol
  16. Immigrant Wages in the Spanish Labour Market: Does the Origin of Human Capital Matter? By Sanromá, Esteve; Ramos, Raul; Simón, Hipólito
  17. Environmental health and education : Towards sustainable growth. By Natacha Raffin
  18. The Impact of Outsourcing on the Japanese and South Korean Labor Markets: International Outsourcing of Intermediate Inputs and Assembly in East Asia By Ahn, Sanghoon; Fukao, Kyoji; Ito, Keiko
  19. School Leavers: How are they Faring? By Byrne, Delma; McCoy, Selina
  20. The impact of academic patenting on university research and its transfer By Gustavo Crespi; Pablo D’Este; Roberto Fontana; Aldo Geuna
  21. Childbearing of students. The case of Sweden By Thalberg, Sara
  22. Quantity-Quality and the One Child Policy:The Only-Child Disadvantage in School Enrollment in Rural China By Nancy Qian
  23. Brain drain and Brain Return: Theory and Application to Eastern-Western Europe By Karin Mayr; Giovanni Peri
  24. Attractivité du territoire et entrepreneuriat universitaire. Vers un modèle spécifique aux jeunes apprenants (Towards a specific model for young student) By Gérard Dokou
  25. What do We Know about Training at Work By O'Connell, Philip J.
  26. Human Capital and Employment Growth in German Metropolitan Areas: New Evidence By Steven Poelhekke
  27. Preliminary evidence on internal migration, remittances, and teen schooling in India: By Mueller, Valerie; Shariff, Abusaleh
  28. Congestion in academic journals under an impartial selection process By Damien Besancenot; Joao Faria; Kim Huynh
  29. Sorting and Statistical Discrimination in Schools: An Analysis Using the National Longitudinal Study of Adolescent Health By Anil Nathan

  1. By: Dahlia K. Remler; Elda Pema
    Abstract: Higher education institutions and disciplines that traditionally did little research now reward faculty largely based on research, both funded and unfunded. Some worry that faculty devoting more time to research harms teaching and thus harms students’ human capital accumulation. The economics literature has largely ignored the reasons for and desirability of this trend. We summarize, review, and extend existing economic theories of higher education to explain why incentives for unfunded research have increased. One theory is that researchers more effectively teach higher order skills and therefore increase student human capital more than non-researchers. In contrast, according to signaling theory, education is not intrinsically productive but only a signal that separates high- and low-ability workers. We extend this theory by hypothesizing that researchers make higher education more costly for low-ability students than do non-research faculty, achieving the separation more efficiently. We describe other theories, including research quality as a proxy for hard-to-measure teaching quality and barriers to entry. Virtually no evidence exists to test these theories or establish their relative magnitudes. Research is needed, particularly to address what employers seek from higher education graduates and to assess the validity of current measures of teaching quality.
    JEL: I2 I21 I23 J24
    Date: 2009–05
  2. By: Gerald Eisenkopf
    Abstract: The paper discusses the impact of performance based selection in secondary education on student incentives. The theoretical approach combines human capital theory with signaling theory. The consideration of signaling offers an explanation for observed performance of educational systems with a standard peer effect argument. More specifically it can be optimal to select students according to ability even if selective systems do not outperform comprehensive systems in tests. Selection achieves the same output with lower private costs for the students. The paper questions the strong focus on educational tests to measure the efficiency of selective systems as long as these tests provide no information about a student’s incentives and private costs.
    Keywords: Education, signalling, selection, ability grouping, incentives
    Date: 2008
  3. By: Kimberly Burnett (University of Hawaii Economic Research Organization); Sumner La Croix (Department of Economics, University of Hawaii at Manoa)
    Abstract: During the early 1960s a few of Hawaii’s public high schools began to offer economics courses, and they gradually became popular social studies electives. By 1999, over 46% of public high school seniors completed a one-semester course in economics. From this peak, enrollment rates would plummet to just 11% in 2003, before rebounding to 27% in 2005 and 2007. Our analysis searches for an explanation by identifying large changes in key variables and public policies that determine demand for and supply of economic education in Hawaii’s schools. We conclude that changes in the incentives facing large Hawaii businesses, University of Hawaii faculty and administrators, and bureaucrats in the State of Hawaii Department of Education have reduced the supply of qualified teachers and student enrollment rates.
    Keywords: economic education, Hawaii, enrollment, network externality
    JEL: A21 I20
    Date: 2009–04–27
  4. By: Katja Coneus; Johannes Gernandt; Marianne Saam
    Abstract: We analyse the determinants of dropout from secondary and vocational education in Germany using data from the Socio-Economic Panel from 2000 to 2007. In addition to the role of classical variables like family background and school achievements, we examine the effect of noncognitive skills. Both, better school grades and higher noncognitive skills reduce the risk to become an educational dropout. The influence of school achievements on the dropout probability tends to decrease and the influence of noncognitive skills tends to increase with age.
    Keywords: Noncognitive skills, school grades, secondary education, vocational training
    JEL: I21 J13 J24
    Date: 2009
  5. By: Daniela Glocker
    Abstract: In this paper I evaluate the effect of student aid on the success of academic studies. I focus on two dimensions, the duration of study and the probability of actually graduating with a degree. While there is an extensive literature on the impact of student aid on its intended outcome, the uptake of tertiary education, the impact on the outcome and on study incentives has been mainly ignored. But introducing student aid changes the students' budget constraint. The increase in the budget-set might lead to shorter time-to-degree if paid work is substituted by study time. I analyze the effect of financial student aid granted by the German Federal Education and Training Assistance Act (BAfoeG). To determine its impact, I estimate a discrete-time duration model allowing for competing risks to account for different exit states (graduation and dropout) using individual level panel data from the German Socio-Economic Panel (SOEP) for the years 1984-2007. My findings suggest that the duration of study is responsive to the type of financial support a student receives. There are three main results. First, student aid recipients finish faster than comparable students who are supported by the same amount of parental/private transfers only. Second, although higher financial aid does on average not affect the duration of study, this effect is (third) dominated by the increased probability of actually finishing university successfully.
    Keywords: academic outcomes, student aid, duration of study, BAfoeG, German Socio-Economic Panel
    JEL: I20 I22
    Date: 2009
  6. By: Rakesh Basant
    Abstract: A brief but comprehensive overview of linkages between higher education and the high tech sector and study the major linkages in India is provided. It is found that the links outside of the labor market are weak. This is attributed to a regulatory structure that separates research from the university and discourages good faculty from joining, which erodes the quality of the intellectual capital necessary to generate new knowledge. [IIMA WP No. 2009-05-01].
    Keywords: education, high-tech industry, capital, intellectual, labour market, research, university, faculty, Patenting, India, research output
    Date: 2009
  7. By: Flannery, Darragh (National University of Ireland, Galway); O'Donoghue, Cathal (Teagasc Rural Economy Research Centre)
    Abstract: In this paper we present a theoretical model of higher education participation. We assume that young people that complete upper secondary education are faced with three choices, go to higher education, not go to higher education or go to higher education and work part time. Utilizing the Living in Ireland survey data 1994-2001 we model this choice in an Irish context by variation in costs (direct and indirect), the estimated lifecycle returns and household credit constraints. Using a random parameters logit choice model we find that simulated lifecycle earnings positively impact the educational/labour choices of young individuals in Ireland. This positive relationship is also found to be true for a choice-specific household income variable constructed in the paper. From the random parameters logit estimations we also find that preferences for choices with higher simulated lifecycle earnings and household income vary across individuals. We conduct policy simulations from our estimations and found that increasing student financial aid levels by 10% combined with a slight widening of the income limits for these aids can lead to significant movement away from the decision to not enter higher education.
    Keywords: higher education participation, random parameters logit model, lifecycle simulated earnings, higher education policy
    JEL: I23 C35
    Date: 2009–05
  8. By: Flores-Lagunes, Alfonso (University of Florida); Light, Audrey (Ohio State University)
    Abstract: Researchers often identify degree effects by including degree attainment (D) and years of schooling (S) in a wage model, yet the source of independent variation in these measures is not well understood. We argue that S is negatively correlated with ability among degree-holders because the most able graduate the fastest, while a positive correlation exists among dropouts because the most able benefit from increased schooling. Using data from the NLSY79, we find support for this explanation, and we reject the notion that the independent variation in S and D reflects reporting error.
    Keywords: returns to education, degree effects
    JEL: I21 J24 J31
    Date: 2009–05
  9. By: Daniel Parent
    Abstract: Using U.S. and Canadian census data I exploit the massive out migration of approximately I million French-Canadians who moved mainly to New England between 1865 and 1930 to look at how the educational attainment and enrollment patterns of their descendants compare with those of same aged French-speaking Quebeckers. Data from the 1971 (1970) Canadian (U.S.) censuses reveal that New England born residents who had French as their mother tongue enjoyed a considerable advantage in terms of educational attainment. I attribute this large discrepancy to their exposure to the U.S. public school system wich had no equivalent in Quebec until the late sixties. This results is even more remarkable given the alleged negative selection out of Quebec and the fact that Franco-Americans were fairly successful in replicating the same educational institutions as the ones existing in Quebec. Turning to the 2001 (2000) Canadian (U.S.) censuses, I find strong signs that the gap has subsided for the younger aged individuals. In fact, contrary to 30 years earlier, young Quebeckers in 2001 had roughly the same number of years of schooling and were at least as likely to have some post-secondary education. However, they still trail when it comes to having at least a B.A. degree. This partial reversal reflects the impact of the "reverse treatment" by which Quebec made profound changes to its educational institutions, particularly in the post-secondary system, in the mid-to-late 60's. Given the speed at which this partial catch-up occurred, it would appear that the magnitude of the intergenerational externalities that can be associated with education is at best fairly modest.
    Keywords: Educational attainment, Institutions
    JEL: N10 I20
    Date: 2009
  10. By: Kerry Anne McGeary
    Abstract: We provide the first comprehensive assessment of the effects of state-level nutrition-education program funding on individual-level BMI, the probability of obesity and the probability of above normal weight. We estimate models using pooled cross-sectional data from the Centers for Disease Control’s (CDC) Behavioral Risk Factor Surveillance System (BRFSS) and data from the United States Department of Agriculture’s (USDA) funding of state-specific nutrition-education programs from 1992 – 2006. During this period federal funding for state-specific nutrition-education programs rose from $0 to nearly $248 million. We isolate the effect of nutrition-education funding while controlling for demographics, state and year fixed effects. Our results suggest that nutrition-education program funding is associated with reductions in BMI and the probability of an individual having an above normal BMI. Furthermore, we find evidence that the nutrition-education program funding is a complement to education, individuals with a higher level of education will have a larger response to funding than those with lower levels of education.
    JEL: I0
    Date: 2009–05
  11. By: Daniel Parent
    Abstract: Using U.S. and Canadian census data I exploit the massive out migration of approximately 1 million French-Canadians who moved mainly to New England between 1865 and 1930 to look at how the educationalattainment and enrollment patterns of their descendants compare with those of same aged French-speaking Quebeckers. Data from the 1971 (1970) Canadian (U.S.) censuses reveal that New England born residents who had French as their mother tongue enjoyed a considerable advantage in terms of educational attainment. I attribute this large discrepancy to their exposure to the U.S. public school system which had no equivalent in Quebec until the late sixties. This result is even more remarkable given the alleged negative selection out of Quebec and the fact that Franco-Americans were fairly successful in replicating the same educational institutions as the ones existing in Quebec. Turning to the 2001 (2000) Canadian (U.S.) censuses, I find strong signs that the gap has subsided for the younger aged individuals. In fact, contrary to 30 years earlier, young Quebeckers in 2001 had roughly the same number of years of schooling and were at least as likely to have some post-secondary education. However, they still trail when it comes to having at least a B.A. degree. This partial reversal reflects the impact of the "reverse treatment" by which Quebec made profound changes to its educational institutions, particularly in the post-secondary system, in the mid-to-late 60's. Given the speed at which this partial catch-up occurred, it would appear that the magnitude of the intergenerational externalities that can be associated with education is at best fairly modest.
    JEL: N10 I20
    Date: 2009–02
  12. By: Erasmo Papagni (-)
    Abstract: This paper investigates economic growth under liquidity constraints by taking into account the choices of fertility, human capital and saving. In a model of four overlapping generations, parents are altruistic towards their offspring and finance their education investment. The government provides education subsidies to young adult parents and levies taxes on income of the adult generation. Sensitivity analysis on borrowing limits and tax parameters highlights effects with opposite sign on the main endogenous variables at steady state. A lift in liquidity constraints decreases savings and capital accumulation and this effect is responsible for the ambiguous sign of comparative statics on the rate of fertility and on human capital investment. From model simulation, we derive an inverted U-shaped curve relating the borrowing limit with fertility, education and growth, meaning that financial reforms in the less developed countries have positive effects on the economy in the long-run, even if they raise fertility and reduce savings. Greater government subsidies to human capital investments and lower income taxes have positive effects on savings and fertility. The same parameters present ambiguous effects on education investments and growth. Numerical simulations show that a) human capital investment has an inverted U-shaped relation with income taxes and education subsidies; b) economic growth decreases with greater income taxes and increases with higher education subsidies.
    Keywords: -
    JEL: O40 O16 J13 D91
    Date: 2008–09–30
  13. By: Goux, Dominique; Maurin, Eric
    Abstract: French children start public school either the year they turn two or the year they turn three. We evaluate the impact of this unique schooling policy on maternal labour supply. Using a Regression-discontinuity design, we show that early school availability has a significant employment effect on lone mothers, but no effect on two-parent families. Also we show that the effect grows larger as the child grows older and as the family loses eligibility for child benefits. Finally, we provide some new evidence that school enrolment at the age of two has no adverse effect on children’s subsequent educational outcomes.
    Keywords: Maternal Labor Supply; Preschool
    JEL: J13 J22
    Date: 2009–05
  14. By: Roderik Ponds; Frank van Oort; Koen Frenken
    Abstract: This paper analyses the effect of knowledge spillovers from academic research on regional innovation. Spillovers are localized to the extent that the underlying mechanisms are geographically bounded. However, university-industry collaboration - as one of the carriers of knowledge spillovers - is not limited to the regional scale. Consequently, we expect spillovers to take place over longer distances. The effect of university-industry collaboration networks on knowledge spillovers is modelled using an extended knowledge production function framework applied to regions in the Netherlands. We find that the impact of academic research on regional innovation is mediated not only by geographical proximity but also by social networks stemming from collaboration networks.
    Keywords: knowledge production function, knowledge spillovers, university-industry collaboration, innovation, social networks
    JEL: C21 O18 O31 R11
    Date: 2009–02
  15. By: Augusto Rupérez-Micola; Arturo Bris; Albert Banal-Estañol
    Abstract: We study the influence of television translation techniques on the quality of the English spoken across the EU and OCDE. We identify a large positive effect for subtitled original version as opposed to dubbed television, which loosely corresponds to between four and twenty years of compulsory English education at school. We also show that the importance of subtitled television is robust to a wide array of specifications. We then find that subtitling and better English skills have an influence on high-tech exports, international student mobility, and other economic and social outcomes.
    Keywords: I21 i N00
    Date: 2009–03
  16. By: Sanromá, Esteve (University of Barcelona); Ramos, Raul (University of Barcelona); Simón, Hipólito (University of Alicante)
    Abstract: The aim of this paper is to analyse the role played by the different components of human capital in the wage determination of recent immigrants within the Spanish labour market. Using microdata from the Encuesta Nacional de Inmigrantes 2007, the paper examines returns to human capital of immigrants, distinguishing between human capital accumulated in their home countries and in Spain. It also examines the impact on wages of the legal status. The evidence shows that returns to host country sources of human capital are higher than returns to foreign human capital, reflecting the limited international transferability of the latter. The only exception occurs in the case of immigrants from developed countries and immigrants who have studied in Spain. Whatever their home country, they obtain relatively high wage returns to education, including the part not acquired in the host country. Having legal status in Spain is associated with a substantial wage premium of around 15%. Lastly, the overall evidence confirms the presence of a strong heterogeneity in wage returns to different kinds of human capital and in the wage premium associated to the legal status as a function of the immigrants' area of origin.
    Keywords: immigration, wages, human capital
    JEL: J15 J24 J31 J61
    Date: 2009–04
  17. By: Natacha Raffin (Centre d'Economie de la Sorbonne - Paris School of Economics)
    Abstract: This article aims at investigating the interplay between environmental quality, health and development. We consider an OLG model, where human capital dynamics depend on the current environment, through its impact on children's school attendance. In turn, environmental quality dynamics depend on human capital, through maintenance and pollution. This two-way causality generates a co-evolution of human capital and environmental quality and may induce the emergence of an environmental poverty trap characterized by a low level of human capital and deteriorated environmental quality. Our results are consistent with empirical observation about the existence of Environmental Kuznets Curve. Finally, the model allows for the assessment of an environmental policy that would allow to escape the trap.
    Keywords: Education, environmental quality, growth, health.
    JEL: D90 H51 I20 Q01
    Date: 2009–04
  18. By: Ahn, Sanghoon; Fukao, Kyoji; Ito, Keiko
    Abstract: Applying a common empirical approach to comparable industry-level data on production, trade, and labor markets for Japan and South Korea, this paper aims to investigate the impacts of outsourcing on different sectors of the labor market focusing on differences in educational attainment. While outsourcing measures used in previous studies only take account of the outsourcing of intermediate inputs, this paper, utilizing the Asian International Input-Output Tables, incorporates the outsourcing of assembly. The econometric results indicate that outsourcing to Asia (particularly to China) has a negative impact on the demand for workers with lower education and a positive impact on the demand for workers with higher education both in Japan and Korea. Moreover, the international outsourcing of assembly has a significant impact on skill upgrading, particularly in the Korean electrical machinery sector.
    Keywords: Outsourcing, labor demand, skill upgrading, Japan, Korea, manufacturing, Asian International Input-Output Tables
    JEL: F14 F16
    Date: 2009–03
  19. By: Byrne, Delma (Economic and Social Research Institute (ESRI)); McCoy, Selina (Economic and Social Research Institute (ESRI))
    Date: 2009–04
  20. By: Gustavo Crespi; Pablo D’Este; Roberto Fontana; Aldo Geuna
    Abstract: This paper contributes to the ongoing debate on the impact of academic patenting. On the basis of CV information and two separate surveys, we provide the first empirical evidence for a sample of UK academics in physics, chemistry, computer science and a subset of engineering. The main contribution of this paper is twofold. First, our econometric results suggest that academic patenting is complementary to publishing at least up to a certain level of patenting output after which we found some evidence of a substitution effect. Second, our analysis of the potential impact of patenting on the other channels of knowledge transfers seems to indicate that patenting does not have a negative impact on the other channels of knowledge exchange. We have found some positive correlation between the stock of patents and other channels of knowledge transfer, however, also in this case, we have found that a substitution effect sets in indicating a inverted U shape type of relationships between patenting and other knowledge transfer channels.
    Date: 2009–05
  21. By: Thalberg, Sara (Institute for Futures Studies)
    Abstract: <p>This paper examines childbearing behaviour among Swedish students, and mothers’ enrolment in education in the period 1984 to 1999. By means of longitu¬dinal data on individual childbearing and study activity we detect whether the relative propensity of female students to have a child was affected by macro level changes, such as the student financial aid reform in 1989 and the economic recession in the early 1990s. It also investigates whether the dramatic increase in number of students have changed students’ childbearing patterns. Finally, couples’ higher order birth risks are explored, as well as the influence of the parents’ student status and income on their propensity to have another child. <p><p> The results show that the reform in 1989 had no noticeable impact on students’ childbearing behaviour or on mothers’ propensity to enrol in education. The recession seems to have had the same negative effect on students’ childbearing risks as it did on the population in general. Despite the dramatic rise in enrolment the negative effect of being a student on childbearing behaviour is stable over time. Another conclusion is that birth risks among female students differ by age and income; the negative effect of being a student on birth risks is much stronger among younger age groups. Among younger students, the propensity to have a child also seems to be slightly more dependent on level of income. Couple data showed that couples where the mother is a student show a lower propensity to have another child, while – more surprising– couples, where the father is a student, have a much higher propensity to have a second or a third child than other couples. <p>
    Keywords: childbearing behaviour; Swedish students; female students; birth risks; parents' student status; financial aid reform
    JEL: I12 I22 J12 J13
    Date: 2009–05–13
  22. By: Nancy Qian
    Abstract: Many believe that increasing the quantity of children will lead to a decrease in their quality. This paper exploits plausibly exogenous changes in family size caused by relaxations in China's One Child Policy to estimate the causal effect of family size on school enrollment of the first child. The results show that for one-child families, an additional child significantly increased school enrollment of first-born children by approximately 16 percentage-points. The effect is larger for households where the children are of the same sex.
    JEL: I20 J13 O1
    Date: 2009–05
  23. By: Karin Mayr; Giovanni Peri
    Abstract: Recent empirical evidence seems to show that temporary migration is a widespread phenomenon, especially among highly skilled workers who return to their countries of origin when these begin to grow. This paper develops a simple, tractable overlapping generations model that provides a rationale for return migration and predicts who will migrate and who returns among agents with heterogeneous abilities. The model also incorporates the interaction between the migration decision and schooling: the possibility of migrating, albeit temporarily, to a country with high returns to skills produces positive schooling incentive eects. We use parameter values from the literature and data on return migration to simulate the model for the Eastern-Western European case. We then quantify the eects that increased openness (to migrants) would have on human capital and wages in Eastern Europe. We nd that, for plausible values of the parameters, the possibility of return migration combined with the education incentive channel reverses the brain drain into a signicant brain gain for Eastern Europe.
    JEL: F22 J61 O15
    Date: 2009–05
  24. By: Gérard Dokou (labrii, ULCO)
    Abstract: En termes de développement entrepreneurial, les seules mises à disposition de moyens techniques, humains et financiers conséquents ne suffisent plus à créer une dynamique locale, au mieux elles accompagnent un équilibre précaire. Pour se développer, dans un contexte d’une économie mondiale, il ne suffit pas d’accumuler de la terre, du travail et du capital. Mais il faut aussi stimuler la qualification, le partenariat et les investissements en organisation. Ces facteurs représentent la capacité d’un territoire à produire son propre développement. Par rapport au modèle de développement impulsé de l’extérieur qui souvent débouche sur des problématiques de déplacements des activités, il est primordial qu’un territoire stimule la dynamique entrepreneuriale qui part de l’intérieur et tire profit des réseaux de ressources locales à partir d’un dispositif adapté. In terms of entrepreneurial development, making available technical, human and financial means are not anymore sufficient tools to create a local dynamics; at best, they accompany a precarious equilibrium. In a context of a world economy, development needs more than accumulating land, labour and capital. In fact, it is crucial to stimulate qualification, partnership and investment in organisation. These factors represent the capability of a territory to produce its own development. Compared to the development model impelled from the outside, and which often leads to activities transfer problems, it is primordial that a territory stimulates the entrepreneurial dynamics which stems from the inside and takes advantage of local resources networks through an adapted device.
    Keywords: Territory attractiveness, University entrepreneurship, Young students
    JEL: O10 L00 M12 L26
    Date: 2008–12
  25. By: O'Connell, Philip J. (Economic and Social Research Institute (ESRI))
    Date: 2009–04
  26. By: Steven Poelhekke
    Abstract: German metropolitan areas with more highly skilled workers became increasingly skilled between 1975 and 2003, and this has important implications for urban employment growth.Using for the first time German metropolitan areas instead of administrative regions we show that the share of college graduates affects growth by the same magnitude as it does in US MSAs. However, conventional estimators are biased upwards. Correcting for the endogeneity of initial employment and solving a common problem of under-identification shows that the effect is at least a third smaller and closer to 0.5% employment growth for a 10% increase in the concentration of skilled workers. The effect is robust to various controls across two data sets. We additionally question the view that aggregate productivity growth is solely due to college graduates. After distinguishing between six different skill levels we find positive growth effects of high school graduates with vocational training, especially if the local concentration of technical professionals is high. The concentration of non-technical university graduates becomes more important over time, but has less bearing on the marginal growth effects of other skill groups. City success may thus depend on the ‘right' combination of skills as well as college graduates. 
    Keywords: human capital; skills; city employment growth; Germany; GMM estimation
    Date: 2009–04
  27. By: Mueller, Valerie; Shariff, Abusaleh
    Abstract: "Migration can serve as an outlet for employment, higher earnings, and reduced income risk for households in developing countries. We use the 2004–2005 Human Development Profile of India survey to examine correlations between the receipt of remittances from internal migrants and human capital investment in rural areas. We employ a propensity score–matching approach to account for the selectivity of households into receiving remittances. We interpret the results conservatively due to the cross-sectional nature of the data. We find a positive correlation between remittances received from internal migrants and the schooling attendance of teens. The magnitude of the correlation is greater when focusing on low-caste households, and male schooling attendance in particular becomes more positive and statistically significant. Our findings provide a basis for establishing future research in the areas of migration and social protection in India." from authors' abstract
    Keywords: Migration, Transfers, Human capital, Labor supply, Urban-rural linkages, Nonfarm rural development, Development strategies,
    Date: 2009
  28. By: Damien Besancenot (CEPN - Centre d'économie de l'Université de Paris Nord - CNRS : UMR7115 - Université Paris-Nord - Paris XIII); Joao Faria (IPED - Institute for Policy and Economic Development - University of Texas-El Paso); Kim Huynh (L.E.M. - Laboratoire d'Economie Moderne - Université Paris 2)
    Abstract: This paper studies the publishing game played by researchers and editors when the editors adopt an impartial selection process. It analyzes the possibility of congestion in the editorial process and shows that, depending on the nature of the equilibrium, the rise of the rejection costs could be an inappropriate solution to avoid the congestion effect.
    Keywords: Publication market, Academic journals, Editors, Congestion
    Date: 2009–05–07
  29. By: Anil Nathan (Department of Economics, College of the Holy Cross)
    Abstract: The rigorous economic analysis of peer group formation is a burgeoning subject. Much has been written about how peers in uence an individual's behavior, and these effects are quite prevalent. However, less has been written on how exactly these peer groups begin and the resulting consequences of their formation. A reason for the dearth of knowledge on peer group formation is the lack of quality data sets that clearly define one's peers. To resolve this issue, this paper explores data which allows a peer group to be defined openly through self nominations. Using these nominations as well as characteristics of the students and their friends, it is possible to see on what dimensions these individuals are sorting into friendships. The data suggests that there is heavy sorting within race and academic ability. Additionally, tests for statistical discrimination on race and academics show that it is exhibited towards blacks and Hispanics. There is also weak evidence of statistical discrimination against whites. Empirical analysis also shows that the degree of statistical discrimination decreases for blacks and Hispanics over a year; however, there is little change for whites over the same period. This result suggests a process of learning about a noisy signal on academic characteristics. Future work includes models describing the benefit of having various friends and the probability of forming those friendships, which can be used to simulate redistribution policies.
    Keywords: National Longitudinal Study of Adolescent Health, Add Health, friendship formation, statistical discrimination, school redistribution
    JEL: J15 I2
    Date: 2009–05

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