Under the educational sorting hypothesis, an environment in which some individuals are constrained from entering university will be characterized by increased pooling at the high school graduation level, as compared to an environment with greater university access. This results because some potential high school dropouts and university enrollees choose the high school graduate designation in order to take advantage of high‐ability individuals who are constrained from entering university. This is in stark contrast to human capital theory, which predicts higher university enrollment but identical high school dropout rates in regions with greater university access. I test the contradictory high school dropout predictions of the human capital and signaling models using NLSYM and NLSYW education data from the late 1960s and early 1970s. I find that labor markets that contain universities have higher high school dropout rates. This result is consistent with a signaling model and inconsistent with a pure human capital model.

Many skilled professional occupations are characterized by an early period of intensive skill accumulation and career establishment. Examples include law firm associates, surgical residents, and untenured faculty at research-intensive universities. High female exit rates are sometimes blamed on the inability of new mothers to survive the sustained negative productivity shock associated with childbearing and early childrearing in these environments. Gender-neutral family policies have been adopted in some professions in an attempt to “level the playing field.” The gender-neutral tenure clock stopping policies adopted by the majority of research-intensive universities in the United States in recent decades are an excellent example. But to date, there is no empirical evidence showing that these policies help women. Using a unique dataset on the universe of assistant professor hires at top-50 economics departments from 1980–2005, we show that the adoption of gender-neutral tenure clock stopping policies substantially reduced female tenure rates while substantially increasing male tenure rates. However, these policies do not reduce the probability that either men or women eventually earn tenure in the profession.

During the World War II and Korean War era, the U.S. military freely distributed cigarettes to overseas personnel and provided low-cost tobacco products on domestic military bases. In fact, even today the military continues to sell subsidized tobacco products on its bases. Using a variety of instrumental variables approaches to deal with nonrandom selection into the military and into smoking, we provide substantial evidence that cohorts with higher military participation rates subsequently suffered more premature mortality. More importantly, we show that a large fraction, 35 to 79 percent, of the excess veteran deaths due to heart disease and lung cancer are attributable to military-induced smoking.