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Category Archives: J2

Tying the Knot: Links Between the Labor and Marriage Markets

By Shafiq Haris, Alexander Prezioso, Michael Temple, Logan Turner, Kevin Zipf, Elizabeth Di Giulio, and Joseph Ueland

This paper analyzes the impact of exogenous shifts in the labor market on the marriage market. The relationship between these two markets is complicated by their reverse causality. That is to say, labor market decisions play into marriage market decisions, and vice versa. In order to mitigate this simultaneous determination, this paper adopts and furthers a methodology utilized by Autor, Dorn and Hansen (2015). Henceforth referred to as ADH, the authors analyze the effects of trade on local labor markets between 1980 and 2007. All 722 commuting zones in the continental United States were evaluated with respect to their level of exposure to increasing competition from Chinese imports, and the share of jobs within the commuting zone considered “routine,” and thus susceptible to computerization and/or mechanization. The authors analyze the impact of these independent variables on labor force participation. This paper takes Autor, et al’s analysis one step further by using the routinization and trade variables as instruments through which we can observe the exogenous impact of the labor market on marital status shares. This paper progresses through two specifications before ultimately utilizing a TwoStage Least Squares analysis with Autor et al’s instruments to isolate the impact of decadal changes in the labor market on decadal changes in male and female marital status shares. Analysis is performed on different age groups, as both the marriage and labor market are different for people of different ages. The first specification applies Autor, et. al’s righthand side with marital status shares as dependent variables. The second specification adds labor market ratios, which relate male and female labor market status. The previously mentioned final specification offers easily interpreted results and is the most encompassing model. Overall, we find that the labor market affects the marriage market much like the current literature would suggest. For example, as male employment increases, the share of females never married decreases and the share of females married increases. This relationship is consistent with existing marriage market theory. However, the results suggest that the literature does not hold in the oldest age group in the data, as power dynamics in the marriage market shift. Our methodology and findings are unique, as we explore this field through a new lens. Future research can expand upon this by incorporating a dataset with information regarding cohabitation habits and consistent longitudinal variable measurements for controls.

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Advisor: Marjorie McElroy | JEL Codes: J1, J12, J21 | Tagged: Employment, Marriage

Gender Equality as a Result of Offering Employee Benefit Policies

By Meghan Mcaneny

In this study, I investigate the relationship between the percentage of women in leadership in a company and its employee benefits. This papeuses data on individual firms’ benefits such as paid parental leave, familial support, and flexibility arrangements. Using OLS, I conclude that benefits that shift familial burdens from women to men, specifically paid paternity leave, result in more women in leadershipThis creates an even playing field for women to be promoted as the company environment does not penalize women for using benefits. I also find a negative relationship between reimbursement for fertility procedures and women in leadership.

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Advisor: Alison Hagy, Marjorie McElroy | JEL Codes: J22, J32, M51, M52 | Tagged: Employee Benefits, Women in Business Leadership, Work-Life Balance

Variations in Turkey’s Female Labor Market: The Puzzling Role of Education

By Rachael Anderson

Although Turkey ranks among the world’s 20 largest economies, female labor force participation in Turkey is surprisingly low.  Relative to other developed countries, however, the proportion of Turkish women in senior management is high.  One explanation for these contrasting pictures of Turkey’s female labor force is education.  To better understand how women’s education and household characteristics explain variations in Turkey’s female labor market, I use annual Turkish Household Labour Force Survey data from 20042012 to estimate five probabilities: the likelihood that a woman (1) participates in the labor force, or is employed in an (2) agricultural, (3) blue collar, (4) lower white collar, or (5) upper white collar job.  I find that labor force participation is relatively high among female primary school graduates, who are most likely to work in agricultural and blue collar jobs.  Highly educated married women are the most likely group to participate in upper white collar jobs, and families favor sending single daughters over wives to work during periods of reduced household income.

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Advisor: Kent Kimbrough, Timur Kuran | JEL Codes: C51, J21, J23 | Tagged: Employment, Labor-force Participation, Occupation Women

A Franchise Education: The Impact of High School Quality on the Operations of Quick Service Restaurant Franchises in Texas

By Joseph Yetter

While the franchise business model provides customers with a certain level of consistency, there is still considerable variation in service quality across locations. Among other factors, a franchise’s quality of human capital (i.e., its workers) contributes to the quality of its operations, one of the strongest determinants of its revenue. Assuming that low wage workers have minimal geographical mobility, this paper studies how worker education impacts operation scores at the Texas locations of a quick service restaurant franchise brand by studying local school quality. This analysis controls for internal and external operations influences, such as the franchisee, designated market area, retail location type, the location’s proximity to a highway, and per capita income of the area to isolate the effect of school quality on operations. Ultimately, this study finds that higher school quality ratings have a significant and positive impact on the operations of franchises, and that operations have a significant and positive impact on sales revenue. Decomposing operations scores, this study finds that school quality ratings primarily impact operations by reducing customer complaints.

Honors Thesis

Advisor: Michelle Connolly, Ryan Mcdevitt | JEL Codes: J24, L8, L83 | Tagged: Business Operations, Education Quality, Franchise, Worker Productiviity

Implications of Teacher Tenure on Teacher Quality and Student Performance in North Carolina

By Dana Fenster

This paper examines the relationship between teacher tenure and teacher quality in North Carolina, measured via student performance on the state End of Grade (EOG) standardized tests. After presenting a comprehensive synopsis of the current teacher tenure policy, I use data from the North Carolina Education Research Data Center (NCERDC) to compare demonstrated teacher effectiveness across the tenure bubble, defined as one to eight years of teaching experience within the same district. Ultimately, I find that there is significant jump in average teacher quality at the tenure cutoff, suggesting that tenure policy is effective in retaining high quality teachers while removing those who are ineffective.

Honors Thesis

Advisor: Hugh Macartney | JEL Codes: I21, J24, J41, M5 | Tagged: Economics of Education, Labor Economics, Teacher Tenure

An Assessment of Teach for America Effectiveness and Spillover Effects in North Carolina

By Thomas Burr

Teach for America, while a relatively small cog in the grand scheme of education reform in America, has become something of a flashpoint for debate between the educational establishment and a new generation of reformers. In the first part of this research, I add to a growing number of studies on the effectiveness of TFA teachers by preforming regression analysis of student outcomes in grades 3-5 in North Carolina from 1995-2009 and find that, as measured by end of grade (EOG) math and reading test scores, first-year TFA teachers produce gains that are statistically indistinguishable from experienced teachers and approximately .09 standard deviations higher than other first-year teachers in math and .05 standard deviations higher in reading. In the second part of this research, I build off of Jackson and Bruegmann (2009), who for the first time showed evidence of peer effects between teachers, meaning that the outcomes of your own students can be affected by the quality of the other teachers in your grade. After confirming the results of Jackson/Bruegmann with three additional years of data, I add TFA status as an additional observable characteristic into the equation and find a statistically significant and positive effect to having a peer TFA teacher in your grade across several models.

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Advisor: Thomas Nechyba | JEL Codes: I2, J24 | Tagged: Education, Peer Effects, Spillover, Teach for America

Job Choices, Flexibility and Maternal Labor Force Participation

By Samantha Cox

While there are countless studies concerning the effects of various variables on female labor force participation, there are still many unexamined intricacies involved in a woman’s choice to enter, re-enter or leave the work force. This paper attempts to extend on previous research and examine how the flexibility of a woman’s job influences her return to work after the birth of her first child. The findings support the results found in previous models which find a relationship between family size, hourly wage rate, other household income and age at first birth. The results further sought to address the elusive concept of culture’s effect on a woman’s labor decisions by using the woman’s religiosity. Most intrical to this research is the creation of two flexibility indices, one regarding occupation choice and one regarding industry choice, and the varying effect of these variables as well as the aforementioned explanatory variables over time. Using hazard analysis, a positive, significant relationship was established between the flexibility indices and the dependent variable when the influence of time was held constant. Also found was a positive relationship linking the likelihood of a woman returning to work after the birth of her first child, considering she has not already done so, with the interaction of the flexibility indices over time. Only the term interacting with the industry index was found to be significant.

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Advisor: Marjorie McElroy | JEL Codes: D1, J13, J24 | Tagged: Economics, Hazard/Survival Models, Industry, Labor Decisions, Maternity, Occupation, Women

How Do Different Parental Beliefs and Parenting behaviors Affect Students’ College Academic Performance?

By Zifan Lin

I examine the differences between Asian Americans and Caucasian Americans with respect to parental beliefs, parenting behaviors, and college academic achievement. The results suggest that 1) there is a strong causal effect of study time on college performance, 2) parental strictness and emphasis on education distinguish Asian American students from Caucasian American students in their choice of a major, study effort, and self-motivation, all of which determine college GPA, and 3) an expanded list of parental control measures and self-motivation measures should be introduced in future research to effectively explain the ethnicity effect on study effort and college academic outcomes.

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Advisor: Peter Arcidiacon | JEL Codes: I2, J10, J15, J22 | Tagged: Academic Achievement, Asian, Education Economics, Instrumental Variables Regressions, Study Time

The Nurture Effect: Like Father, Like Son. What about for an Adopted Child? A Study of Korean-American Adoptees on the Impact of Family Environment and Genes

By Suanna Seung-yun Oh

I investigate the influences of family environment and genes on children’s educational outcomes by working with data on Korean American adoptees and their non-adoptive siblings. I make use of the natural experiment setting where children were quasi-randomly assigned to families. From Sacerdote’s discussion of the three different approaches of analyzing the data, I derive a single-equation model that encompasses the three approaches as a few of its specific cases. The first part of my analysis identifies the causal effect of being assigned to a certain family environment. The second part of my analysis looks into causes of the differences between the educational attainment of adoptees and biological children, adding to the economists’ discussion on the relative importance of nature and nurture.

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Advisor: Marjorie McElroy | JEL Codes: J, J12,J13, J24 |  Tagged: Adoption, Child Development, Education, Environmental Influence

Questions?

Undergraduate Program Assistant
Matthew Eggleston
dus_asst@econ.duke.edu

Director of the Honors Program
Michelle P. Connolly
michelle.connolly@duke.edu