The Review of Economics and Statistics201193(3), 1087-1093
We analyze the effect of survey design on reported job satisfaction by exploiting two quasi-experiments in the British Household Panel Survey: a change in question design and parallel use of different interview modes. We show that apparently minor differences in survey design lead to substantial biases in econometric results, particularly on gender differences. The common empirical finding that women care less about wages and prefer to work fewer hours than men appears largely an artifact of survey design rather than a true behavioral difference.
Does access to free health insurance affect household labor supply decisions? We address this question by exploiting the 2002 introduction of universal health insurance in Mexico (Seguro Popular, SP) that broke the link between access to health care and job contract. Reducedform estimates show that SP increased informality among less educated families with children by 3.5%. We develop and estimate a household search model that incorporates the value of formal sector amenities relative to pre-reform alternatives, and the value of health insurance. Model estimates show that households value SP by, at most, 1.33 per unit of net cost.
In this paper, we determine the role played by early cognitive, noncognitive, and health endowments. We identify the causal effect of education on health and health-related behaviors. We develop an empirical model of schooling choice and post-schooling outcomes, where both schooling and the outcomes determined in part by schooling are influenced by measured early family environments and latent capabilities (cognitive, noncognitive and health). We show that family background characteristics, and cognitive, noncognitive, and health endowments developed by age 10, are important determinants of labor market and health disparities at age 30. Not properly accounting for personality traits overestimates the importance of cognitive ability in determining adult health. Selection on factors determined early in life explains more than half of the observed difference by education in poor health, depression, and obesity. Education has an important causal effect in explaining differences in many adult outcomes and healthy behaviors. We uncover significant gender differences. We go beyond the current literature which typically estimates mean effects to compute distributions of treatment effects. We show how the health returns to education can vary among individuals who are similar with respect to their observed characteristics, and how a mean effect can hide gains and losses for different individuals. Our research highlights the important role played by the early years in producing health.