What Holds Back the Second Generation?: The Intergenerational Transmission of Language Human Capital Among ImmigrantsBleakley, C. Hoyt (Crawford Hoyt)
2008 Journal of Human Resources
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Abstract: In 2000 Census microdata, various outcomes of second-generation immigrants are related to their parents ' age at arrival in the United States, and in particular whether that age fell within the "critical period" of language acquisition. We interpret this as an effect of the parents' English-language skills and construct an instrumental variable for parental English proficiency. Estimates of the effect of parents' English-speaking proficiency using two-stage least squares yield significant, positive results for children's English-speaking proficiency and preschool attendance, and significant, negative results for dropping out of high school and being below age-appropriate grade.
Return Migration, Investment in Children, and Intergenerational Mobility: Comparing Sons of Foreign- and Native-Born FathersDustmann, Christian.
2008 Journal of Human Resources
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Abstract: This paper studies parental investment in education and intergenerational earnings mobility for father-son pairs with native- and foreign-born fathers. We illustrate within a simple model that for immigrants, investment in their children is related to their return migration probability. In our empirical analysis, we include a measure for return probabilities, based on repeated information about migrants' return intentions. Our results suggest that educational investments in the son are positively associated with a higher probability of a permanent migration of the father. We also find that the son's permanent wages are positively associated with the probability of the father's permanent migration.
Out of the Wallet and into the Purse: Using Micro Data to Test Income PoolingWard-Batts, Jennifer L.
2008 Journal of Human Resources
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Abstract: This paper uses an exogenous change in the intrahousehold distribution of income, provided by a change in United Kingdom Family Allowance policy to test the income-pooling hypothesis implied by unitary household models. Expenditure shares are estimated for a wide range of goods using household-level data. Shifts in expenditure shares suggest that children and mothers benefited at the expense of fathers when this policy change shifted income within households from men to women. Similar shifts are not found among married-couple households with no children. This paper refutes income pooling, and confirms and extends results in Lundberg, Pollak, and Wales (1997).
Food Stamps and Food Insecurity: What Can Be Learned in the Presence of Nonclassical Measurement Error?Gundersen, Craig.
2008 Journal of Human Resources
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Abstract: Policymakers have been puzzled to observe that food stamp households appear more likely to be food insecure than observationally similar eligible nonparticipating households. We reexamine this issue allowing for nonclassical reporting errors in food stamp participation and food insecurity. Extending the literature on partially identified parameters, we introduce a nonparametric framework that makes transparent what can be known about conditional probabilities when a binary outcome and conditioning variable are both subject to nonclassical measurement error. We find that the food insecurity paradox hinges on assumptions about the data that are not supported by the previous food stamp participation literature.
Borrowing During Unemployment: Unsecured Debt as a Safety NetSullivan, James X. (James Xavier)
2008 Journal of Human Resources
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Abstract: This paper examines whether unsecured credit markets help disadvantaged households supplement temporary shortfalls in earnings by investigating how unsecured debt responds to unemployment-induced earnings losses. Results indicate that very low-asset households—those in the bottom decile of total assets—do not borrow in response to these shortfalls. However, other low-asset households do borrow, increasing unsecured debt by more than 11 cents per dollar of earnings lost. In contrast, wealthy households do not increase unsecured debt during unemployment. The evidence suggests that very low-asset households do not have sufficient access to unsecured credit to smooth consumption over transitory unemployment spells.
Does Unemployment Increase Crime?: Evidence from U.S. Data 1974-2000Lin, Ming-Jen
2008 Journal of Human Resources
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Abstract: OLS may understate the effect of unemployment on crime because of the endogeneity problem (Raphael and Winter-Ember 2001). In this paper, we use changes in the real exchange rate, state manufacturing sector percentages, and state union membership rates as novel instrumental variables to carry out 2SLS estimations. We find a one-percentage-point increase in unemployment would increase property crime by 1.8 percent under the OLS method, but that the elasticity goes up to 4 percent under 2SLS. The larger 2SLS effect has significant policy implications because it explains 30 percent of the property crime change during the 1990s.
Parental Effort, School Resources, and Student AchievementHoutenville, Andrew J.
2008 Journal of Human Resources
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Abstract: This article investigates an important factor in student achievement—parental involvement. Using data from the National Education Longitudinal Study (NELS), we estimate a value-added education production function that includes parental effort as an input. Parental effort equations are also estimated as a function of child, parent, household, and school characteristics. Our results suggest that parental effort has a strong positive effect on achievement that is large relative to the effect of school resources and is not captured by family background variables. Parents appear to reduce their effort in response to increased school resources, suggesting potential "crowding out" of school resources.
Parental Problem-drinking and Adult Children's Labor Market OutcomesBalsa, Ana I.
2008 Journal of Human Resources
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Abstract: Current estimates of the societal costs of alcoholism do not consider the impact of parental drinking on children. This paper analyzes the consequences of parental problem-drinking on children's labor market outcomes in adulthood. Using the NLSY79, I show that having a problem-drinking parent is associated with longer periods out of the labor force, lengthier unemployment, and lower wages, in particular for male respondents. Increased probabilities of experiencing health problems and abusing alcohol are speculative forces behind these effects. While causality cannot be determined due to imprecise IV estimates, the paper calls for further investigation of the intergeneration costs of problem-drinking.