This study examines educational and labor outcomes of children affected by a ban on abortions. I use evidence from Romania, where in 1966 dictator Nicolae Ceauescu declared abortion and family planning illegal. Birth rates doubled in 1967 because formerly abortion had been the primary method of birth control. Children born after the abortion ban attained more years of schooling and greater labor market success. The reason is that urban, educated women were more likely to have abortions prior to the policy change, and the relative number of children born to this type of woman increased after the ban. However, when I control for composition using observable background variables, children born after the ban on abortions had worse educational and labor market achievements as adults.

This paper examines the relative benefits of general education and vocational training during Romania's transition to a market economy. We examine a 1973 educational reform that shifted a large proportion of students from vocational training to general education. Using census and household survey data, we analyze the effect of this policy with a regression discontinuity design. We find that men affected by the policy are significantly less likely to work in manual or craft-related occupations but have similar levels of labor market participation and earnings compared to their counterparts unaffected by the policy. We conclude that differences in labor market returns between graduates of vocational and general schools are largely driven by selection.

This paper applies a regression discontinuity design to the Romanian secondary school system, generating two findings. First, students who have access to higher achievement schools perform better in a (high stakes) graduation test. Second, the stratification of schools by quality in general, and the opportunity to attend a better school in particular, result in significant behavioral responses: (i) teachers sort in a manner consistent with a preference for higher achieving students; (ii) children who make it into more selective schools realize they are relatively weaker and feel marginalized; (iii) parents reduce effort when their children attend a better school.

This paper uses a regression discontinuity design to estimate the effect of home computers on child and adolescent outcomes by exploiting a voucher program in Romania. Our main results indicate that home computers have both positive and negative effects on the development of human capital. Children who won a voucher to purchase a computer had significantly lower school grades but show improved computer skills. There is also some evidence that winning a voucher increased cognitive skills, as measured by Raven's Progressive Matrices. We do not find much evidence for an effect on non-cognitive outcomes. Parental rules regarding homework and computer use attenuate the effects of computer ownership, suggesting that parental monitoring and supervision may be important mediating factors.

In the Anglo-American constitutional tradition, judicial checks and balances are often seen as crucial guarantees of freedom. Hayek distinguishes two ways in which the judiciary provides such checks and balances: judicial independence and constitutional review. We create a new database of constitutional rules in 71 countries that reflect these provisions. We find strong support for the proposition that both judicial independence and constitutional review are associated with greater freedom. Consistent with theory, judicial independence accounts for some of the positive effect of common-law legal origin on measures of economic freedom. The results point to significant benefits of the Anglo-American system of government for freedom. This paper is a radical revision of an earlier paper by the same authors, “The Guarantees

We investigate the external validity of local average treatment effects (LATEs), specifically Angrist and Evans’s use of same sex of the two first children as an instrumental variable for the effect of fertility on labor supply. We estimate their specification in 139 country-year censuses using Integrated Public Use Microdata Sample–International data. We compare each country-year’s actual LATE to the extrapolated LATE from other country-years. We find that, with a sufficiently large reference sample, we extrapolate the treatment effect reasonably well, but the degree of accuracy depends on the extent of covariate similarity between the target and reference settings.

Romanian households could choose schools with one standard deviation worth of additional value added. Why do households leave value added “on the table”? We study two possibilities: (i) information and (ii) preferences for other school traits. In an experiment, we inform randomly selected households about schools' value added. These households choose schools with up to 0.2 standard deviations of additional value added. We then estimate a discrete choice model and show that households have preferences for a variety of school traits. As a result, fully correcting households' beliefs would eliminate at most a quarter of the value added that households leave unexploited.

We examine student, teacher, and peer perceptions of effort, ability, performance, and self-confidence in Romania's highly tracked schools. We find that: (1) students just above a cutoff—tracked into high-achieving classes—have less favorable self-perceptions than those just below (“big-fish-little-pond” effects); (2) students perceive peers in their classes more favorably (“in-group bias”); (3) this bias is stronger in lower-achieving classes; (4) students perceive themselves more positively than others perceive them (“illusory superiority”); (5) this bias is stronger among lower-achieving students (“Krueger-Dunning effects”). In short, being tracked into lower-achieving classes does not appear to negatively affect self-perceptions.