nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2020‒03‒23
five papers chosen by
Maximo Rossi
Universidad de la República

  1. Long-Run Trends in the U.S. SES-Achievement Gap By Hanushek, Eric A.; Peterson, Paul E.; Talpey, Laura M.; Woessmann, Ludger
  2. A Welfare Analysis of Occupational Licensing in U.S. States By Morris M. Kleiner; Evan J. Soltas
  3. The impact of return migration from the U.S. on employment and wages in Mexican cities By Dario Diodato; Ricardo Hausmann; Frank Neffke
  4. Between Firm Changes in Earnings Inequality: The Dominant Role of Industry Effects By John C. Haltiwanger; James R. Spletzer
  5. Theory of Mind among Disadvantaged Children: Evidence from a Field Experiment By Gary Charness; John List; Aldo Rustichini; Anya Samek; Jeroen van de Ven

  1. By: Hanushek, Eric A. (Stanford University); Peterson, Paul E. (Harvard University); Talpey, Laura M. (Stanford University); Woessmann, Ludger (Ifo Institute for Economic Research)
    Abstract: Rising inequality in the United States has raised concerns about potentially widening gaps in educational achievement by socio-economic status (SES). Using assessments from LTT-NAEP, Main-NAEP, TIMSS, and PISA that are psychometrically linked over time, we trace trends in achievement for U.S. student cohorts born between 1954 and 2001. Achievement gaps between the top and bottom quartiles of the SES distribution have been large and remarkably constant for a near half century. These unwavering gaps have not been offset by improved achievement levels, which have risen at age 14 but have remained unchanged at age 17 for the past quarter century.
    Keywords: student achievement, inequality, socio-economic status, United States, NAEP, TIMSS, PISA
    JEL: H4 I24 J24
    Date: 2020–02
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp12971&r=all
  2. By: Morris M. Kleiner (National Bureau of Economic Research); Evan J. Soltas
    Abstract: We assess the welfare consequences of occupational licensing for workers and consumers. We estimate a model of labor market equilibrium in which licensing restricts labor supply but also affects labor demand via worker quality and selection. On the margin of occupations licensed differently between U.S. states, we find that licensing raises wages and hours but reduces employment. We estimate an average welfare loss of 12 percent of occupational surplus. Workers and consumers respectively bear 70 and 30 percent of the incidence. Higher willingness to pay offsets 80 percent of higher prices for consumers, and higher wages compensate workers for 60 percent of the cost of mandated investment in occupation-specific human capital.
    Keywords: Occupational licensing; Labor supply; Human capital; Welfare analysis
    JEL: D61 J24 J38 J44 K31
    Date: 2019–10–15
    URL: http://d.repec.org/n?u=RePEc:fip:fedmsr:87569&r=all
  3. By: Dario Diodato; Ricardo Hausmann; Frank Neffke
    Abstract: We study the effect of return migration from the U.S. to Mexico on the economies of Mexican cities. In principle, returnees increase the local labor supply and therefore put pressure on wages and employment rates of locals. However, having worked in the technologically more advanced US economy, they may also possess skills that complement the skills of local workers or even bring in new organizational and technological know-how that leads to productivity improvements in Mexico. Using an instrument based on involuntary return migration due to deportation by US authorities, we find evidence in support of both effects. Returnees affect wages of locals in different ways: whereas workers who share the returnees' occupations experience a fall in wages, workers in other occupations see their wages rise. However, the latter, positive, effect is easily overlooked, because it is highly localized: it only affects coworkers within the same city-industry cell. Moreover, both, positive and negative, wage effects are transitory and eventually disappear. In contrast, by raising the employment levels of the industry in which they find jobs, returnees permanently alter a city's industry composition.
    Keywords: return migration, skills, employment, wages, Mexico, United States
    JEL: F22 J21 J24 J61
    Date: 2020–03
    URL: http://d.repec.org/n?u=RePEc:egu:wpaper:2012&r=all
  4. By: John C. Haltiwanger; James R. Spletzer
    Abstract: We find that most of the rising between firm earnings inequality that dominates the overall increase in inequality in the U.S. is accounted for by industry effects. These industry effects stem from rising inter-industry earnings differentials and not from changing distribution of employment across industries. We also find the rising inter-industry earnings differentials are almost completely accounted for by occupation effects. These results link together the key findings from separate components of the recent literature: one focuses on firm effects and the other on occupation effects. The link via industry effects challenges conventional wisdom.
    JEL: E24 J24 J31 L22
    Date: 2020–02
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:26786&r=all
  5. By: Gary Charness; John List; Aldo Rustichini; Anya Samek; Jeroen van de Ven
    Abstract: Theory of Mind (ToM), the ability to correctly attribute mental states to others, is important in social interactions. We evaluate the development of ToM in about 800 mostly disadvantaged children. We next conduct a field experiment with about 160 children in which we find that the low ToM rates for these disadvantaged children improve substantially in environments where the presence of other children is made salient. We see that ToM performance increases for both younger and older children in the treatment with strong salience, but that the treatment with weaker salience seems to be only effective in improving the ToM rates for older children.
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:feb:framed:00686&r=all

This nep-ltv issue is ©2020 by Maximo Rossi. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at http://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.