Knowledge that Transforms

In 2013 Memphis City Schools and Shelby County Schools consolidated into a unified system, creating one of the largest districts in the nation. Six Memphis suburbs subsequently voted to create separate municipal districts. Many school zoning changes resulted from the merger and subsequent splintering of districts, providing a rare opportunity to separately identify the value of both school and district quality as they are capitalized in housing prices. Utilizing school fixed effects and repeat sales data, we find that a one standard deviation increase in test scores increases prices by 3-4% while district administration accounts for 5-8% of home values.

We use administrative US matched employer-employee data merged with detailed information on individuals' academic records to assess the extent to which returns to education are mediated by the sorting of workers across firms. We present three results. First, we confirm findings in the earlier literature of large pay differences across higher education degrees. Second, we show that up to one quarter of pay premiums for higher degrees are explained by between-firm pay differences. Third, higher degrees are associated with greater representation at the best-paying firms. We conclude that employer heterogeneity is an important factor in mediating the returns to education.

We propose an axiomatic approach to study the superior performance of mechanisms with obviously dominant strategies to those with only dominant strategies. Guided by the psychological inability to reason state-by-state, we develop Obvious Preference as a weakening of Subjective Expected Utility Theory. We show that a strategy is an obviously dominant if and only if any Obvious Preference prefer it to any deviating strategy at any reachable information set. Applying the concept of Nash Equilibrium to Obvious Preference, we propose Obvious Nash Equilibrium to identify a set of mechanisms that are more robust than mechanisms with only Nash Equilibria.

This paper examines whether disease burdens, especially prevalent in the tropics, contribute significantly to widening gender gaps in educational attainment. We estimate the impact of sudden exposure to the 1986 meningitis epidemic in Niger on girls' education relative to boys. Our results suggest that increases in meningitis cases during epidemic years significantly reduce years of education disproportionately for primary school-aged going girls in areas with higher meningitis exposure. There is no significant effect for boys in the same cohort and no effects of meningitis exposure for non-epidemic years. Our findings have broader implications for climate-induced disease effects on social inequality.

Our recent working paper (Ambuehl, Ockenfels, and Stewart 2017) shows theoretically and experimentally that people with higher costs of information processing respond more to an increase in the incentive for a complex transaction, and decide to participate based on a worse understanding of its consequences. Here, we address the resulting tradeoff between the principle of informed consent and the principle of free contract. Respondents to our vignette study on oocyte donation overwhelmingly favor the former and support policies that require donors to thoroughly understand the transaction. This finding helps design markets that are not only efficient but also considered ethical.

Research on intrahousehold decision-making generally finds that fathers have more bargaining power than mothers, but mothers put more weight on children's well-being. This suggests a tradeoff when targeting policies to improve child health: fathers have more power to change household behavior in ways that improve child health, but mothers might have a stronger desire to do so. This paper compares health classes in Uganda that enrolled either mothers or fathers. We find that educating mothers leads to greater adoption of health-promoting behaviors by the household. In addition, educating one parent leads to positive spillovers on the other spouse's health behaviors.

Replicability is essential to assure the scientific integrity of empirical economic research. Some authors have suggested metadata analysis as a complementary tool. This suggestion must be addressed with caution. Empirical studies in most of economics are nonstochastic in the sense that they seldom are created via experiments and, with the data and computer software in-hand, should be reproducible without error.

We study a randomized control trial in a large employer population of access to “wearable” technologies and the associated planning and monitoring tools on improved health behaviors (sleep and exercise). Both ITT and IV estimates based on actual plan enrollment for the treatment group suggest statistically significant but economically small changes in behavior after three months. We then implement machine learning-based models to assess treatment effect heterogeneity. We find little evidence for heterogeneous treatment effects base on observables. We also present detailed data on sleep patterns underscoring the value of this new data source to researchers.

This paper examines the relationship between the prevalence of overwork and skilled women's labor force participation and occupational choice. Using country-level variation, we find a negative relationship between the share of males working 50+ hours a week and the LFP of young married women, with the correlation being much smaller for single women and older married women. Using a panel of occupations across countries, we find that overwork in an occupation is negatively correlated with the share of married women working in that occupation. This finding is robust to controlling for the occupational distribution of groups with fewer household responsibilities.

This paper investigates the role of the top 100 firms in France in aggregate business cycle comovement. We establish that the top 100 firms (i) are important in aggregate; (ii) exhibit stronger international linkages than the rest of the economy; and (iii) contribute substantially to aggregate comovement.