Psychologists have documented widespread public deference to “sacred values” that communities, formally or informally, exempt from tradeoffs with secular limits, like money. This work has, however, been largely confined to low-stakes settings. As the stakes rise, deference must decline because people can't write blank checks for every “sacred” cause. Shadow pricing is inevitable which sets the stage for political blame-games of varying sophistication. In a rational world, citizens would accept the necessity of such tradeoffs, but the attraction to moral absolutes is strong--perhaps even essential for social cohesion.
American Economic Review2017107(5), 364-368open access
We study the cyclical comovement nominal wage growth (either monthly earnings or hourly wage rate) and labor market flows. We use microdata from the Survey of Income and Program Participation over 1996-2013 to purge composition effects in worker and job characteristics and to isolate the reallocative effect of Employer-to-Employer (EE) transitions. We find an “EE wage Phillips curve”: wage inflation comoves positively with EE as strongly as with the employment rate. This correlation holds for job stayers; we interpret the EE rate as a measure of labor demand. We find no analogous evidence for the job-finding rate from unemployment.
We analyze the impact of improved land inheritance rights for women in India on female empowerment by examining their educational attainment and the intergenerational effects of the reform. Using a difference-in-differences strategy, we find that the amendment to the Hindu Succession Act significantly increased education of women from landed households by 0.48 years. However, our results indicate a significant decrease in the educational attainment of children, especially boys of treated mothers. We attribute this decrease to treated mothers who are better educated and able to assess the higher opportunity cost of education for boys.
American Economic Review2017107(5), 522-525open access
Recent studies have linked shale gas development (SGD) to ground water contamination. The extent of these environmental externalities, to date, remains uncertain. To address this gap, we examine whether shale gas development systematically affects drinking water quality by creating a novel dataset that relates SGD to public drinking water samples in Pennsylvania. Our difference-in-differences strategy finds evidence that additional well pads drilled within 1 kilometer of a community water system intake increases shale gas-related contaminants in drinking water. These results are striking considering that our data are based on water sampling measurements taken after municipal treatment.
This paper examines whether backlash exacerbates gender differences in time spent on low-promotability tasks. We ask whether gender differences found in previous research--women receiving more requests than men to do these tasks and women being more likely to accept such requests--amplify by the prospect of penalties for declining the request. We replicate prior findings but find no evidence that penalties increase the gender differences in task allocation. In addition, we find that the penalties men impose on others for saying “no” are larger than those imposed by women.
We document the impact of an entrepreneurship training program on startup activity of minorities (females and non-Caucasians). We compare entrepreneurial activity between applicants who are accepted into the program with applicants who are program finalists but not accepted. We find that the effect of the program is small for minorities in the short run. However, the effect of the program is more pronounced for minorities' likelihood of longer run startup activity, whereas the effect on non-minorities is small and statistically insignificant. We suggest that such programs are most effective for individuals that may otherwise have limited access to entrepreneurial opportunities.
American Economic Review2017107(5), 446-450open access
We employ a triple difference-in-difference approach, using censuses and georeferenced temperature data, to quantify heat effects on internal migration in Central America and the Caribbean. A 1-standard deviation increase in heat would affect the lives of 7,314 and 1,578 unskilled young women and men. The effect is smaller than observed in response to droughts and hurricanes but could increase with climate change. Interestingly, youth facing heat waves are more likely to move to urban centers than when exposed to disasters endemic to the region. Research identifying the implications of these choices and interventions available to minimize distress migration is warranted.
American Economic Review2017107(5), 551-555open access
Under the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996, individuals convicted of drug-related felonies were permanently banned from receiving welfare and food stamps. Since then, over 30 states have opted out of the federal ban. In this paper, I estimate the impact of public assistance eligibility on recidivism by exploiting both the adoption of the federal ban and subsequent passage of state laws that lifted the ban. Using administrative prison records on five million offenders and a triple-differences research design, I find that public assistance eligibility for drug offenders reduces one-year recidivism rates by 10 percent.
We present evidence that the traditional structure of society is an important determinant of the scope of trust today. Within Africa, individuals belonging to ethnic groups that organized society using segmentary lineages exhibit a more limited scope of trust, measured by the gap between trust in relatives and trust in non-relatives. This trust gap arises because of lower levels of trust in non-relatives and not higher levels of trust in relatives. A causal interpretation of these correlations is supported by the fact that the effects are primarily found in rural areas where these forms of organization are still prevalent.
It is estimated that about one quarter of the global disease burden in terms of healthy life years lost and about one quarter of all premature deaths can be attributed to modifiable environmental factors (Pruss-Ustun and Corvalan 2006). Three infectious diseases--diarrhea, respiratory infections, and malaria--account for the largest absolute burden in developing countries with children facing the greatest impacts. There is a growing body of evidence demonstrating the health burden of air and water pollution, as well as important productivity and income effects (see, for example, reviews of the literature in Pattanayak and Pfaff 2009 and Greenstone and Jack 2016). Studies that focus on the impacts of natural resource degradation are fewer. Notably, Garg (2016) provides the first causal estimates of the impact of sustained forest cover on reduced malarial incidence in Indonesia, demonstrating a large and previously understudied cost of forest cover loss. In this paper, we extend this new literature on the health impacts of environmental degradation by estimating the causal impact of forest loss on infectious disease incidence in young children using temporal and spatial variation in the last decade in Nigeria. Our estimation strategy involves geolinking a new high-resolution dataset of global forest change to child-level health data from the Nigeria Demographic and Health Surveys from 2008 and 2013. We find that forest loss significantly increases the incidence of malaria, though it does not affect the incidence of diarrhea and respiratory diseases. The impact of forest loss on malaria is large (one standard deviation of forest loss increases malaria incidence by around 4.5 percent in children under five) and the dynamic pattern of the impact suggests a temporary ecological disturbance consistent with findings in Garg (2016) and the tropical medicine literature.