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Evidence that Seat Belts Are as Effective as Child Safety Seats in Preventing Death for Children Aged Two and Up

The Review of Economics and Statistics 2008 90(1), 158-163
Over the past thirty years, the use of child safety seats in motor vehicles has increased dramatically. There is, however, relatively little empirical evidence regarding the efficacy of child safety seats relative to the much cheaper alternative of traditional seat belts. Using data on all fatal crashes in the United States from 1975 to 2003, I find that child safety seats, in actual practice, do not provide any discernible improvement over adult lap and shoulder belts in reducing fatalities among children aged two to six. Lap-only belts are somewhat less effective, but still far superior to riding unrestrained.

Market Distortions When Agents Are Better Informed: The Value of Information in Real Estate Transactions

The Review of Economics and Statistics 2008 90(4), 599-611 open access
Agents are often better informed than the clients who hire them and may exploit this informational advantage. Real estate agents have an incentive to convince clients to sell their houses too cheaply and too quickly. We test these predictions by comparing home sales in which real estate agents are hired to when an agent sells his own home. Consistent with the theory, we find homes owned by real estate agents sell for 3.7% more than other houses and stay on the market 9.5 days longer, controlling for observables. Greater information asymmetry leads to larger distortions.

Sample Selection in the Estimation of Air Bag and Seat Belt Effectiveness

The Review of Economics and Statistics 2001 83(4), 603-615 open access
Because data are collected for only fatal crashes, it is difficult to accurately measure seat belt and air bag effectiveness. The use of safety devices influences survival rates which in turn determine whether a crash is included in the sample, leading to sample selection bias. We propose a simple solution to the selection problem: limiting the sample to crashes in which someone in a different vehicle dies. Empirically, we find seat belts more effective and air bags to be less effective than previously found. The cost per life saved through seat belts is approximately $30,000, compared to $1.8 million for air bags.

Understanding the Black-White Test Score Gap in the First Two Years of School

The Review of Economics and Statistics 2004 86(2), 447-464
In previous research, a substantial gap in test scores between white and black students persists, even after controlling for a wide range of observable characteristics. Using a newly available data set (the Early Childhood Longitudinal Study), we demonstrate that in stark contrast to earlier studies, the black-white test score gap among incoming kindergartners disappears when we control for a small number of covariates. Real gains by black children in recent cohorts appear to play an important role in explaining the differences between our findings and earlier research. The availability of better covariates also contributes. Over the first two years of school, however, blacks lose substantial ground relative to other races. There is suggestive evidence that differences in school quality may be an important part of the explanation. None of the other hypotheses we test to explain why blacks are losing ground receive any empirical backing.

Crime, Urban Flight, and the Consequences for Cities

The Review of Economics and Statistics 1999 81(2), 159-169
This paper analyzes the link between rising city crime rates and urban flight. Each additional reported crime is associated with a roughly one-person decline in city population. Almost all of the crime-related population decline is attributable to increased out-migration rather than a decrease in new arrivals. Households that leave the city because of crime are much more likely to remain within the Standard Metropolitan Statistical Area (SMSA) than those that leave the city for other reasons. Migration decisions of highly educated households and those with children are particularly responsive to changes in crime. Causality appears to run from rising crime rates to city depopulation.

The Plight of Mixed-Race Adolescents

The Review of Economics and Statistics 2012 94(3), 621-634
Since 1970, the fraction of mixed-race black-white births has increased nearly ninefold. This paper describes basic facts about the behaviors and outcomes of black-white mixed-race individuals. Unsurprisingly, on a host of background and achievement characteristics, as well as adult outcomes, mixed-race individuals fall in between whites and blacks. When it comes to engaging in risky and antisocial adolescent behavior, however, mixed-race adolescents are stark outliers compared to both blacks and whites. We argue that these behavioral patterns are most consistent with a two-sector Roy model, in which mixed-race adolescents, not having a predetermined peer group, engage in more risky behaviors in order to be accepted.