New parenthood causes large decreases in labor market incomes for mothers but not fathers, a stylized fact known as the “child penalty.” We combine a simple household model with estimates of child penalties in heterosexual nonadopting, adopting, and same-sex couples to better understand what causes the child penalty in heterosexual nonadopting couples. Our results largely rule out giving birth and the father’s advantage in the labor market as mechanisms, leaving preferences, gender norms, and discrimination as the main explanations. In addition, our paper provides novel evidence on the impact of children on labor market outcomes of adopting and same-sex couples
Empirical peer effects research often employs censored peer data. Individuals may list only a fixed number of links, implying mismeasured peer variables. I first document that censoring is widespread in network data. I then introduce an estimator and characterize its inconsistency analytically; an assumption on the ordering of peers implies that censoring causes attenuated peer effects estimates. Next, I demonstrate the effect of censoring in two data sets, showing that estimates with censored data underestimate peer influence. I discuss interpretation of estimates, propose methods for correction and bounding, and give implications for the design of network surveys.
Although from the viewpoint of social psychology task commitment is a driving force for intrinsic motivation in the workplace, this topic has been widely ignored in labor and personnel economics so far. Our paper reduces this gap in the literature by offering a theoretical analysis of worker empowerment and task commitment. This approach also helps to explain the observed variety of compensation schemes across workers and firms. By using a large-scale linked employer-employee panel data set, we present empirical evidence that is consistent with the predicted patterns of our theoretical model
I show that firm location decisions create barriers to accessing high-wage employers for students at distant universities. I collect office locations and campus recruiting strategies for more than 70 banking and consulting firms from 2000 to 2013. After firms open an office, students at nearby universities are nearly four times more likely to have on-campus access to the firm. Access increases for universities across a wide range of selectivity. Additional data from universities, LinkedIn, and mobility report cards suggest effects on hires and longer-run income success.
This paper examines the impact of male casualties due to World War II on fertility and female employment in the United States. We rely on the number of casualties at the county level and use a difference-in-differences strategy. While most counties in the United States experienced a baby boom following the war, we find that the increase in fertility was lower in high-casualty-rate counties than in low-casualty-rate counties. Analyzing the channels through which male casualties could have decreased fertility, we provide evidence that county male casualties are positively related to 1950s female employment and household income
Recent work situates gender norms as a key driver of the sexual division of labor. But the explanatory power of Becker’s comparative advantage explanation is still not well understood. Drawing on unique data, we test the predictions of a formal Beckerian model. We complement this by proposing and analyzing new measures of specialization. We show that comparative advantage plays little or no role in the sexual division of labor within couple households. Absolute advantage also plays no role in specialization for same-sex couples, and this is not explained by having fewer children
Journal of Labor Economics202240(1), 47-94open access
We investigate how demand conditions affect employers’ provision of safety—something about which theory is ambivalent. Positive demand shocks relax financial constraints that limit safety investment but simultaneously raise the opportunity cost of increasing safety rather than production. We study the US metals mining sector, leveraging exogenous demand shocks from short-term variation in global commodity prices. We find that positive price shocks substantially increase workplace injury rates and safety regulation noncompliance. While these results indicate the general dominance of the opportunity cost effect, shocks that only increase mines’ cash flow lower injury rates, illustrating that financial constraints also affect safety.
Journal of Labor Economics202240(1), 95-131open access
Firms have discretion over task allocations, which may dampen employees’ career prospects and, hence, their motivation. Task assignments and worker motivation interact through the extent of labor market competition—that is, the possibility of moving to another firm. More competition enhances motivation but decreases firms’ incentives to assign workers to informative tasks. One consequence is that competitive firms sometimes choose strategies that lead to intermediate competition. When the employee pool is heterogeneous, firms might choose different human resource practices that attract different kinds of workers and differentiate themselves through the career opportunities that they offer within and beyond the firm.
Journal of Labor Economics202240(1), 133-156open access
We use public documents from the Students for Fair Admissions v. Harvard University lawsuit to examine admissions preferences for recruited athletes, legacies, those on the dean’s interest list, and children of faculty and staff (ALDCs). More than 43% of white admits are ALDC; the share for African American, Asian American, and Hispanics is less than 16%. Our model of admissions shows that roughly three-quarters of white ALDC admits would have been rejected absent their ALDC status. Removing preferences for athletes and legacies would significantly alter the racial distribution of admitted students away from whites.