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Arbitrator Behavior and the Variances of Arbitrated and Negotiated Wage Settlements
The variance of arbitrated wage settlements is significantly lower than the variance of negotiated wage settlements in a sample of teachers' contracts, even when possible selection of contracts into arbitration is accounted for. This result is consistent with the hypothesis that arbitrated settlements do not incorporate all of the information that is reflected in negotiated settlements.
Employment Determination in a Unionized Public-Sector Labor Market: The Case of Ontario's School Teachers
A standard efficient-contracts model of employment determination in a unionized labor market is contrasted with a naive model of labor supply and demand that allows for the possibility of monopsony in the market for public school teachers. The standard model is consistent with the data and suggests that employment contracts are strongly efficient, but a more surprising result is that the simple supply/demand model is not rejected by the data either. Estimates of the latter suggest that the demand for teachers is inelastic and that the supply curve is slightly upward sloping, rather than perfectly elastic, at the union wage.
Healthy, Wealthy, and Wise: Socioeconomic Status, Poor Health in Childhood, and Human Capital Development
There are many possible pathways between parental education, income, and health, and between child health and education, but only some of them have been explored in the literature. This essay focuses on links between parental socioeconomic status (as measured by education, income, occupation, or in some cases area of residence) and child health, and between child health and adult education or income. Specifically, I ask two questions: What is the evidence regarding whether parental socioeconomic status affects child health? And, what is the evidence relating child health to future educational and labor market outcomes? I show that there is now strong evidence of both links, suggesting that health could play a role in the intergenerational transmission of economic status.
Doctor Decision-Making and Patient Outcomes
Doctors often treat similar patients differently, which affects health outcomes and medical spending. We assess the recent literature on doctor decision-making through the lens of a model that incorporates diagnostic and procedural skills, beliefs, incentives, and differences in patient pools. Decision-making is affected by beliefs, training, experience, peer effects, financial incentives, and time constraints. Interventions to improve decision-making include providing information, guidelines, and technologies like electronic medical records and algorithmic decision tools. Economists have made progress in understanding doctor decision-making, but applications of that knowledge to improving health care are still limited. (JEL D83, D91, G51, I11, I14, J24, J44)
Introduction to a Special Issue in Honor of David Card
Presidential Address: Investing in Children to Address the Child Mental Health Crisis
The child mental health crisis has been described as the “defining public health crisis of our time.” This article addresses three myths about the crisis: (i) the idea that the crisis is new; (ii) the belief that increases in youth suicide mainly reflect deterioration in children’s underlying mental health; and (iii) the myth that investments in children have little impact on children’s mental health. In fact, the crisis has existed for decades, youth suicides vary asynchronously with other mental health measures and are impacted by external factors such as firearms legislation, and investments can improve child mental health and prevent suicide. (JEL I12, I18, J13, J16)
Journal of Economic Literature
Report of the Editor Journal of Economic Literature
Inequality at Birth: Some Causes and Consequences
Recent research shows that health at birth is affected by many factors, including maternal education, behaviors, and participation in social programs. In turn, endowments at birth are predictive of adult outcomes, and of the outcomes of future generations. Exposure to environmental pollution is one potential determinant of health at birth that has received increasing attention. A large literature outside of economics advocates for Environmental Justice, and argues that poor and minority families are disproportionately exposed to environmental hazards. I provide new evidence on this question, showing that children born to less educated and minority mothers are more likely to be exposed to pollution in utero and that white, college educated mothers are particularly responsive to changes in environmental amenities. I estimate that differences in exposure to toxic releases may explain 6% of the gap in incidence of low birth weight between infants of white college educated mothers and infants of black high school dropout mothers.