By William Song and Theresa Tong
A substantial body of literature on the wage effects of marriage finds that married American men earn anywhere from 10% to 40% higher wages than unmarried men on average, while married American women earn up to 7% less than unmarried women, even after controlling for traits such as background, education, and number of children. Because this literature focuses heavily on men born in a single time period, we study both men and women in two different generational cohorts of Americans (Baby Boomers and Millennials) from the National Longitudinal Surveys of Youth to examine how the wage effects of marriage differ between genders and across time. Using a fixed effects approach, we find that Millennial women—but not Baby Boomer women—experience an increase in wages after marriage, and we replicate the finding from the literature that men experience an increase in wages after marriage as well. However, after controlling for wage trajectory-based selection into marriage by using a modified fixed effects approach that allows wage trajectories to vary by individual, we find that the wage effects of marriage are no longer statistically significant for any group in our data, suggesting that the wage differences between married and unmarried individuals found in previous studies are primarily a result of selection.
Advisors: Professor Marjorie McElroy, Professor Michelle Connolly | JEL Codes: C33; D13; J12; J13; J22; J30
ICT Behavior at the Periphery: Exploring the Social Effect of the Digital Divide through Interest in Video Streaming
By Erik W. Hanson and Justin C. LoTurco
We investigate the factors that influence changes in consumer behavior with regard to video streaming. We focus our analysis on the effect of bandwidth impairment to explore a potential consequence of the digital divide. To measure the change in relative popularity of video streaming services, we use Google Trends data as a proxy. We then investigate whether broadband speed improvements in rural vs. urban regions affect the proxy differently. We find that increasing the broadband speeds in rural regions appears to stimulate greater interest in video streaming than equivalent speed increases in urban regions.
Advisors: Professor Michelle Connolly, Professor Grace Kim | JEL Codes: C33; J11; L96
Cashing Out the Benefits: The Spillover Impact of Cash Transfers on Household Educational Investment
By Mitchell Garrett Ochse and Matheus Dias
Using electricity price, generation, installed capacity, and carbon price data from the European Union from January 2015 to December 2018, this study finds that the carbon pricing in the European Union Emissions Trading Scheme (EU ETS) incentivizes electricity sector carbon emission reductions through renewable energy deployment only for economically advanced EU members. Transitional economies show a weak to modest carbon emission increase despite a common carbon price. This study estimates an electricity supply curve, or merit order, for 24 EU ETS members using a Tobit regression model and analyzes changes in this curve using a linear bspline. These shifts provide insight into how carbon pricing affected energy generation, price, and CO2 emissions for two distinct categories of EU member states. The advanced category as a whole saw a strong electricity sector decrease in carbon emissions, both over time and from carbon pricing, while the transitional category as a whole saw a weak increase. This indicates that advanced EU members in Northern, Western, and Central Europe likely sold permits to transitional ones in Southern and Eastern Europe. While these findings may initially reflect the gains from trade of carbon emissions, permits inherent in the European Union Emissions Trading Scheme’s design, the implications of how these two distinct groups have changed electricity generation present challenges to the ultimate long-term goal of EU-wide carbon neutrality by 2050, particularly in transitional economies’ electricity sectors.
Advisors: Professor Xiao Yu Wang, Professor Michelle Connolly | JEL Codes: C93; I21; I24
The Impact of Violence in Mexico on Education and Labor Outcomes: Do Conditional Cash Transfers Have a Mitigating Effect?
By Hayley Jordan Barton
This research explores the potential mitigating effect of Mexico’s conditional cash transfer program, Oportunidades, on the education and labor impacts of increased homicide rates. Panel data models are combined with a difference-in-differences approach to compare children and young adults who receive cash transfers with those who do not. Results are very sensitive to specification, but Oportunidades participation is shown to be positively associated with educational attainment regardless of homicide increases. Homicides are associated with decreases in likelihood of school enrollment and compulsory education completion; however, they also correspond with increases in educational attainment, with a larger effect for Oportunidades non-recipients.
Advisors: Dr. Charles Becker, and Dr. Michelle Connolly | JEL Codes: C23; D15; I20; I38; J24
By Aashna Aggarwal
Energy poverty is prevalent in Zambia. It is one of the world’s least electrified nations with 69% of its citizens living in darkness, without access to grid electricity. Zambian government has a goal to achieve universal electricity access in urban areas and increase rural electrification to 51% by 2030. With its main goal to improve the quality of life and wellbeing of Zambians. Electrification is expected to have positive impacts on health, education and employment play an important role to achieve wellbeing, however, previous studies and analysis of renewable energy programs have found different, context-dependent results. To evaluate the impacts of electrification in Zambia I have used the Living Conditions Monitoring Survey (LCMS) of 2015 and applied two different estimation techniques: non-linear regressions and propensity score matching. My study finds that firewood consumption significantly decreases with assess to electricity and education has positive outcomes on grade attainment. I negligible effects on wage earning employment outcomes respiratory health outcomes. Based on these results I conclude that access to grid electrification does have certain positive impacts but empirical evidence is not as strong as the theoretical claims.
Advisors: Dr. Robyn Meeks and Dr. Grace Kim | JEL Codes: C31; C78; O13; Q40
The Impact of Access to Public Transportation on Residential Property Value: A Comparative Analysis of American Cities
By Moses Snow Wayne
This paper develops a consistent model for analyzing the impact of access to public transportation on property value applied to the four cities of Atlanta, Boston, New York, and San Francisco. This study finds a negative relationship between increasing distance to public transit and property value. Additionally, the elicited effects in each city generally align with geographic features and the degree to which a city is monocentric. This study also demonstrates the salience of using actual map-generated distances as proximity measures and characteristics of public
transit systems in modeling the relationship between public transportation and residential property value.
Advisors: Dr. Patrick Bayer and Kent Kimbrough | JEL Codes: C12, R14, R30, R41
By Rafal Rokosz
The advent of blockchain technology has created a new asset class named cryptocurrencies that have experienced tremendous price appreciation leading to speculation that the asset class is experiencing an asset bubble. This paper examines the novelty and functionality of cryptocurrencies and potential factors that may lead to conclude the existence of an asset bubble. To empirically evaluate whether the asset class is experiencing an asset bubble the LPPL model is used. The LPPL model was able to successfully identify two of the four crashes within the data set signifying that cryptocurrencies are within an asset bubble.
Advisors: Ed Tiryakian and Grace Kim | JEL Codes: G12, Z00, C60
By Michael J. Kiffel
The literature on the performance differential between passively and actively managed equity mutual funds is thorough: passively managed funds generally outperform their active counterparts except in the rare presence of highly-skilled managers. However, there exists limited academic research regarding fixed income mutual funds. This study utilizes the Fama-French bond risk factors, TERM and DEF, in a dual-step multivariate linear regression analysis to determine this performance differential between passively and actively managed bond mutual funds. The funds are comprised of either corporate or government bonds, spanning three categorizations of average maturities. Overall, it is determined that passively managed bond funds offer higher net returns than those offered by actively managed funds. Additionally, the regressions demonstrated that DEF possesses a high degree of predictive power and statistical
Advisor: Edward Tower | JEL Codes: C55, G10, G11
What Fosters Innovation? A CrossSectional Panel Approach to Assessing the Impact of Cross Border Investment and Globalization on Patenting Across Global Economies
By Michael Dessau and Nicholas Vega
This study considers the impact of foreign direct investment (FDI) on innovation in high income, uppermiddle income and lowermiddle income countries. Innovation matters because it is a critical factor for economic growth. In a panel setting, this study assesses the degree to which FDI functions as a vehicle for innovation as proxied by scaled local resident patent applications. This study considers research and development (R&D), domestic savings, imports and exports, and quality of governance as factors which could also impact the effectiveness of FDI on innovation. Our results suggest FDI is most effective as inward direct investment in countries outside the technological frontier possessing adequate existing domestic investment capital and R&D spending to convert foreign investment capital and technological spillover into innovation. Nonetheless, FDI was not a consistent indicator for innovation; rather, the most consistent indicators across this study were R&D and domestic savings. Differences amongst income groups are highlighted as well as their varying responses to our array of causal factors.
Advisor: Lori Leachman | JEL Codes: A10, B22, C82, E00, E02, O10, O11, O30, O31, O32, O33, O34, O43