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What Limits College Success? A Review and Further Analysis of Holzer and Baum’s Making College Work

Journal of Economic Literature 2021 59(2), 546-573 open access
Harry J. Holzer and Sandy Baum’s recent book, Making College Work: Pathways to Success for Disadvantaged Students, provides an excellent up-to-date review of higher education. My review first summarizes its key themes: (i) who gains from college and why, (ii) mismatch and the need for more structure, (iii) problems with remediation, (iv) financial barriers, and (v) the promise of comprehensive support. I then critique the book’s proposed solutions using some of my own qualitative and quantitative data. Some recommendations are worth considering, while others are too expensive or unlikely to make a meaningful difference without addressing the underlying lack of preparedness and motivation of college students. I argue that making mandatory some existing services, such as application assistance and advice, proactive tutoring and advising, and greater career transition support, has the most immediate potential. (JEL I22, I23, I24)

Estimating Average and Local Average Treatment Effects of Education when Compulsory Schooling Laws Really Matter

American Economic Review 2006 96(1), 152-175 open access
The change to the minimum school-leaving age in the United Kingdom from 14 to 15 had a powerful and immediate effect that redirected almost half the population of 14-year-olds in the mid-twentieth century to stay in school for one more year. The magnitude of this impact provides a rare opportunity to (a) estimate local average treatment effects (LATE) of high school that come close to population average treatment effects (ATE); and (b) estimate returns to education using a regression discontinuity design instead of previous estimates that rely on difference-in-differences methodology or relatively weak instruments. Comparing LATE estimates for the United States and Canada, where very few students were affected by compulsory school laws, to the United Kingdom estimates provides a test as to whether instrumental variables (IV) returns to schooling often exceed ordinary least squares (OLS) because gains are high only for small and peculiar groups among the more general population. I find, instead, that the benefits from compulsory schooling are very large whether these laws have an impact on a majority or minority of those exposed.

The Intergenerational Effects of Worker Displacement

Journal of Labor Economics 2008 26(3), 455-000
This paper uses variation induced by firm closures to explore the intergenerational effects of worker displacement. Using a Canadian panel of administrative data that follows almost 60,000 father-child pairs from 1978 to 1999 and includes detailed information about the firms at which the father worked, we construct narrow treatment and control groups whose fathers had the same level of permanent income prior to 1982 when some of the fathers were displaced. We demonstrate that job loss leads to large permanent reductions in family income and small increases in mobility and divorce. Comparing outcomes among individuals whose fathers experienced an employment shock to outcomes among individuals whose fathers did not, we find that children whose fathers were displaced have annual earnings about 9% lower than similar children whose fathers did not experience an employment shock. They are also more likely to receive unemployment insurance and social assistance. The estimates are driven by the experiences of children whose family income was at the bottom of the income distribution, and are robust to a number of specification checks. This work was completed while Oreopoulos was a Statistics Canada Research Fellow and member of the Family and Labour Studies Division of Statistics Canada. The financial support of the National Science Foundation is gratefully acknowledged. We also wish to thank Miles Corak, and seminar participants at Brown University, MIT, Princeton University, Stanford University, Yale University, the University of California Berkeley, UCLA, the University of Toronto and the NBER summer institute for their helpful comments.

Introduction: Labor Markets and Public Policies in the United States and Canada

Journal of Labor Economics 2019 37(S2), S243-S252
The United States and Canada are as close economically and socially as any pair of countries in the world. They share similar cultural traditions and economic institutions. They are also closely linked by trade and multinational firms that operate on both sides of the border. Nevertheless, the two countries differ inmany small but important ways that ultimately affect individual outcomes and overall labor market performance. Canada has a more comprehensive set of social programs that tend to be more redistributive than those in the United States. Canada also has a higher rate of immigration, with nearly twice as many immigrants per capita. The Canadian economy is more reliant on the natural resource sector, while the United States has a larger tech sector. The United States has a wider distribution of income, with higher poverty rates and a higher share of people with earnings far above themedian salary. It also experienced a far deeper and longer-lasting recession in 2007–8, the consequences of which are still being analyzed and debated. There is a long tradition in social science of using comparisons between the United States and Canada to uncover the impacts of different institutions and policies, including work in political science (e.g., Lipset 1990), criminology (e.g., Sloan et al. 1988), medicine (e.g., Gorey et al. 2009), demography (e.g., Boyd 1976), and labor relations (e.g., Meltz 1985). Building on this tra-

The Intergenerational Effects of Compulsory Schooling

Journal of Labor Economics 2006 24(4), 729-760
This article attempts to improve our understanding of the causal processes that contribute to intergenerational immobility by exploiting historical changes in compulsory schooling laws that affected the educational attainment of parents without affecting their innate abilities or endowments. We examine the influence of parental compulsory schooling on children’s grade‐for‐age using the 1960, 1970, and 1980 U.S. censuses. Our estimates indicate that a 1‐year increase in the education of either parent reduces the probability that a child repeats a grade by between 2 and 4 percentage points.

Analyzing the Fiscal Impact of U.S. Immigration

American Economic Review 1999 89(2), 176-180
This paper reconsiders the impact of immigrants over time in the US by using the technique of generational accounting introduced by Auerbach et al. Generational accounting considers not only the net contribution of immigrants to balance but also the size of this impact in relation to the overall balance. It further compares changes in immigration policy to other policies. From the analysis three conclusions were formulated. 1) Whether immigration contributes to or helps alleviate stress depends on the future generations. If the entire imbalance currently estimated for the US is placed on future generations then the presence of new immigrants reduces the burden of the natives. 2) Fiscal gain from immigration is reduced when a policy of fiscal responsibility is followed. The gain is dependent on the extent to which government purchases rise with the immigrant population. 3) The impact of immigration on balance is extremely small in relation to the size of the overall imbalance itself. Thus immigration should not be perceived as a major source of the existing imbalance or as a potential solution to it.

Professor Qualities and Student Achievement

The Review of Economics and Statistics 2009 91(1), 83-92
This paper analyzes the importance of teacher quality at the college level. Instructors are matched to objective and subjective characteristics of teacher quality to estimate the impact of rank, salary, and perceived effectiveness on student performance and subject interest. Student and course fixed effects, time of day and week controls, and students' lack of knowledge about first-year instructors help minimize selection biases. Subjective teacher evaluations perform well in measuring instructor influences on students, while objective characteristics such as rank and salary do not. Overall, the importance of college instructor differences is small, but important outliers exist.

Upgrading Education with Technology: Insights from Experimental Research

Journal of Economic Literature 2020 58(4), 897-996 open access
In recent years, there has been widespread interest around the potential for technology to transform learning. As investment in education technology continues to grow, students, parents, and teachers face a seemingly endless array of education technologies from which to choose—from digital personalized learning platforms to online courses to text message reminders to submit financial aid forms. Amid the excitement, it is important to step back and understand how technology can help—or in some cases hinder—learning. This review article synthesizes and discusses rigorous evidence on the effectiveness of technology-based approaches to education in developed countries and outlines areas for future inquiry. In particular, we examine randomized controlled trials and regression discontinuity studies across the following categories of education technology: (i) access to technology, (ii) computer-assisted learning, (iii) technology-enabled behavioral interventions in education, and (iv) online learning. We hope this synthesis will advance academic understanding of how technology can improve education, outline key areas for new experimental research, and help drive improvements to the policies, programs, and structures that contribute to successful teaching and learning. (JEL H52, H75, I20, O33)

A Community College Instructor Like Me: Race and Ethnicity Interactions in the Classroom

American Economic Review 2014 104(8), 2567-2591
Administrative data from a large and diverse community college are used to examine if underrepresented minority students benefit from taking courses with underrepresented minority instructors. To identify racial interactions, we estimate models that include both student and classroom fixed effects and focus on students with limited choice in courses. We find that the performance gap in terms of class dropout rates and grade performance between white and underrepresented minority students falls by 20 to 50 percent when taught by an underrepresented minority instructor. We also find these interactions affect longer-term outcomes such as subsequent course selection, retention, and degree completion. (JEL I23, J15, J44)

The Role of Application Assistance and Information in College Decisions: Results from the H&R Block Fafsa Experiment*

Quarterly Journal of Economics 2012 127(3), 1205-1242
Growing concerns about low awareness and take-up rates for government support programs like college financial aid have spurred calls to simplify the application process and enhance visibility. We present results from a randomized field experiment in which low-income individuals receiving tax preparation help were also offered immediate assistance and a streamlined process to complete the Free Application for Federal Student Aid (FAFSA) for themselves or their children. Treated participants were also provided with aid estimates that were compared against tuition cost amounts for nearby colleges. The combined assistance and information treatment substantially increased FAFSA submissions and ultimately the likelihood of college attendance, persistence, and aid receipt. In particular, high school seniors whose parents received the treatment were 8 percentage points more likely to have completed two years of college, going from 28% to 36%, during the first three years following the experiment. Families who received aid information but no assistance with the FAFSA did not experience improved outcomes. The findings suggest many other opportunities for using personal assistance to increase participation in programs that require filling out forms to become eligible.