One decade after high school completion, only 14 percent of low-income students in the United States have attained a bachelor’s degree, compared to 60 percent or more of their higher income peers. This stark difference is driven by gaps in both college access and college success, and it’s not explained away by differences in academic readiness for college. Recent research by Lindsay C. Page, Stacy S. Kehoe, Benjamin L. Castleman, and Gumilang Sahadewo examines how one “comprehensive support” program aims to make a difference.
Continue reading “Too many low-income college students don’t graduate, but a program that aims to address all challenges can help”
Although there is a rich body of evidence on the effects of preschool or daycare attendance, especially for the United States, substantially less is known about critical dimensions of the quality of these services, in particular for very young children. M. Caridad Araujo, Marta Dormal, and Norbert Schady (Inter-American Development Bank) developed a research project with the goal of understanding how the quality of caregiver–child interactions in daycare affects child development.
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In a unique historical episode, between April and September of 1980, 120,000 low-skilled Cubans arrived in Miami. The sudden nature and random timing and location of the flow make this an ideal “quasi-experiment” for testing whether labor markets experienced depressed wages and employment opportunities due to the refugee wave. A simplistic concept of labor supply and demand might suggest that “yes” local workers were hurt by the wave, but what is the truth in the data? Economists have been fascinated with this question, and Giovanni Peri and Vasil Yasenov wanted their own look at it.
Continue reading “The 1980 Mariel Boatlift—Did the arrival of low-skilled Cuban immigrants harm the labor market for locals in Miami?”
As the U.S. Department of Education proposes rolling back the Gainful Employment rules regulating for-profit and vocational education programs, accurate estimates of the earnings outcomes and debt incurred by students in these programs are essential for judging the merits of various policy options. Researchers Stephanie Riegg Cellini and Nicholas Turner generated comprehensive new estimates of the labor market outcomes and debt incurred by students in vocational certificate programs in the for-profit sector.
Continue reading “For-Profit Colleges—Students Pay More, Get Less”
In response to demographic change—an aging population means fewer workers—policy makers in many industrialized countries are looking for ways to extend individuals’ working life. Shortening the time spent in school is one idea, but simple reductions result in students learning less. Germany tried a different reform: it kept the number of hours that children spend in school the same, but compressed it into one less year. Thus, students have the same amount of schooling, just over a shorter period of time. Jan Marcus (University of Hamburg and DIW Berlin) and Vaishali Zambre (DIW Berlin) evaluated this reform and examined how higher education enrollment was affected.
Continue reading “How Can We Extend the Working Lifetime? Compressing Time Spent in School Might Not Be the Answer”
Are people who receive transfers of money from family members passively waiting for a handout from their altruistic kin? If not, how can they influence what they receive? In a recent study, Joachim De Weerdt, Garance Genicot, and Alice Mesnard used robust empirical methods to disentangle these family exchanges. They interviewed all members within 718 kinship networks in Tanzania, which allowed them to compare what people think about each other’s living conditions with reality.
Continue reading “Wealth Perceptions and Remittances within Family Networks—Recipients Hold More Power Than You Think”
In 2006 the Mexican government launched an aggressive military campaign against drug trafficking organizations that sparked competition, fragmentation, and alliances among criminal organizations. The move led to instability and a staggering amount of violence. In a new study, Sandra Orozco-Aleman and Heriberto Gonzalez-Lozano analyze the effect of this increase in violence on the inflows of migrants from Mexico into the United States.
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As the population ages, many families face decisions about how to care for elderly relatives. In a recent publication, Bridget Hiedemann (Seattle University), Michelle Sovinsky (University of Mannheim and CEPR), and Steven Stern (Stony Brook University) consider the dynamics of this decision-making process. Who will provide care for the aging family member—a spouse, an adult child, a formal home health worker, or a nursing home? Will this arrangement change over time?
Continue reading “The Dynamics of Families’ Long-Term Care Arrangements—Who Takes Care of Our Elderly in the Long Run?”
In many production processes, there is a high degree of complementarity between employees in different jobs—in other words, workers with unique functions are each essential and depend on each other to get the work done. In such cases, work absence can be costly for firms, especially if there are few employees with similar skills who can substitute for the absent worker. In a new study, Lena Hensvik and Olof Rosenqvist (both at Institute for Evaluation of Labour Market and Education Policy, Uppsala, Sweden) explore how employers are addressing this problem.
Continue reading “Workers with Unique Competence at Their Workplace Say “I’m Taking a Sick Day” Less Often”
The pay of CEOs and other top executives has been the focus of academic and policy debates given its sharp increase in recent decades. A key question for many is whether executive pay is linked to the performance of the firms they manage. In a new paper, Ana P. Fernandes (University of Exeter), Priscila Ferreira (University of Minho), and L. Alan Winters (University of Sussex) explore how performance-related pay is affected by the level of competition in the markets that firms sell in.
Continue reading “Are Executives Earning It? How Product Market Competition Shapes Executives’ Pay”