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
Is Inclusionary Zoning a Proper Remedy for the Affordable Housing Crisis? —A Case Study of IZ Programs in New Jersey and North Carolina
By Xinchen Li
The recent decade witnessed a worsening of the affordable housing crisis across the
country. Inclusionary zoning (IZ) has been a popular municipal remedy for the crisis.
However, it is unclear whether IZ actually adds to the affordable housing stock, and
whether it achieves its goal at the expense of average homeowners. Through a case
study of New Jersey and North Carolina, this paper aims to address these two questions.The results suggest that there is no statistically significant positive relationship between the presence of IZ and the housing price in the two states, but its beneficiary effects are also debatable.
Advisors: Professor Christopher Timmins | JEL Codes: D10 ; R2; R21
By Jacob Graber-Lipperman
The thesis explores the increasing success of non-original films distributed through traditional theatrical releases, and asks whether new distributors, such as Netflix, may serve as better platforms for original content. A dataset incorporating the top 100 highest-grossing films at the domestic box office each year from 2000 to 2018, as well as a smaller subset including 82 titles distributed by Netlix, was utilized to investigate these issues. The results confirm non-original content has performed increasingly well over time for theatrical releases, especially within the past four years, while original content has performed poorly, especially during this recent time period. Additionally, the research suggests the stark difference in performance observed for non-original and original content in traditional distribution models may not appear for titles released through the newer streaming platforms. This paper thus hopes to motivate future study into the effect of streaming platforms on consumer purchasing behavior of films as new distribution technology within the movie industry continues to proliferate.
Advisor: Professor Kent Kimbrough | JEL Codes: D1, D10, D19
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
Sister competition and birth order effects among marriage-aged girls: Evidence from a field experiment in rural Bangladesh
By Stephanie Zhong
Early marriage before the age of 18 is prevalent among adolescent girls in Bangladesh, but the timing of marriage is not uniform across daughters within a household, with some sisters marrying earlier than others. Using survey data from a novel field experiment from rural Bangladesh, I find that girls ages 10-21 with lower birth order tend to be married at a younger age, even when controlling for confounding nature of household size on birth order. Additionally, girls with younger sisters are more likely to be married and at a younger age than girls with younger brothers. The findings on dowry are inclusive.
Advisors: Dr. Erica Field and Dr. Michelle Connolly | JEL Codes: D13, J13, O15
By M. Thomas Marshall Jr.
When deciding on housing location, people theoretically optimize for the best location given their commute time, housing cost, income, as well as other factors. Stutzer and Frey (2008) suggest that this is not true in some nations, such as in their investigation of Germany, with their results showing that the cost of an average commute is equivalent to 35.4% of the average income. This paper investigates the impact of commute time on the well-being of individuals in the United States, correcting for various other factors that determine housing choice such as race,
age, and whether they have a child living at home. The results of this study are clearly that the relationship found between commuting time and well-being cannot be proven to be statistically significant from zero, so there is not any evidence against optimization.
Advisor: Kent Kimbrough | JEL Codes: D12, D61, R31, R41
By Maya Durvasula
Household resource allocation in response to economic shocks is of central importance for policy makers, especially given widely documented evidence of gender biases. In this paper, I exploit a
plausibly exogenous shock to maternal asset holdings in Indonesia to examine gender biases in resource allocation in the wake of the 1998 East Asian Financial Crisis. Using insights from
anthropology, I separate assets in the hands of women from those controlled by men and interpret findings in the context of a household decision-making framework that allows preferences of parents to differ. Taking household-specific heterogeneity into account with fixed effects, I find significant evidence of efforts to shield male children from the effects of the crisis in both contemporaneous educational attainment and longer-term labor market outcomes, a remarkable trend given minimal evidence of a pro-son bias in Indonesia prior to the crisis. Finally, inferring preferences from maternal resource allocation, I find suggestive evidence of an old age security motive in women’s investment decisions.
Advisor: Duncan Thomas | JEL Codes: D13, I0, J13, J16
By Jennifer Garand
This paper aims to investigate the relationship between peoples’ decisions to marry or cohabit and their economic circumstances – both personal, as measured by their employment status, and peripheral, as measured by the unemployment rate in their local county. This paper will look at the role economic factors, as well as demographic and personal factors, play in the decision of whether or not to marry, cohabit, or stay single.
Advisor: Marjorie McElroy, Michelle Connolly | JEL Codes: D1, J12, J16 |