CCPR Seminar

"The Death of the American Dream?"

Abstract: Whenever an election rolls around, we can count on dire warnings that the American Dream is under threat, that hard work and talent are no longer guarantees of success, and that what now matters most is winning the “birth lottery” and being raised by rich parents. But are these dire warnings true? Can a child born into a middle-class family expect to earn much more than a child born into a poor family? What about a child born into the one percent? Does that translate into a huge boon to the child’s earnings? Drawing on new tax-return data, the hard facts about social mobility in the U.S. are presented, with a special focus on differences in the mobility opportunities of boys and girls.

*Co-sponsored with the Dept. of Sociology & Inequality Working Group

"The Relationship between Income and Life Expectancy: Local Area Variation in the United States, 2001-2014"

Abstract: We examine inequality in life expectancy using 1.4 billion anonymous earnings and mortality records covering the U.S. population from 1999-2014. We present four main findings. First, higher income is associated with greater longevity throughout the income distribution. The richest 1% of American men live 15 years longer than the poorest 1%, while the richest 1% of American women live 10 years longer than the poorest 1%. Second, inequality in life expectancy has increased in recent years at the national level. From 2001-2014, the richest 5% of Americans gained approximately 3 years in longevity, but the poorest 5% experienced no gains. Third, life expectancy varies substantially across areas, especially for low-income individuals. Life expectancy varies by approximately 5 years between the areas with the highest and lowest longevity. Trends in life expectancy varied substantially across areas as well, ranging from gains of more than 4 years between 2001 and 2014, to losses of more than 2 years. Fourth, differences in life expectancy across areas for low-income individuals are highly correlated with differences in health behaviors such as smoking, obesity and exercise. In contrast, life expectancy for low-income Americans is not significantly correlated with measures of the quantity and quality of medical care, local income inequality, residential segregation, and labor market conditions. Low-income individuals tend to live the longest (and have the most healthful behaviors) in affluent cities with highly educated populations and high levels of government expenditures.

"Does Competition Eliminate Discrimination? Evidence from the Commercial Sex Market in Singapore"

Abstract: The street sex worker market in Geylang, Singapore is a highly competitive market in which clients can search legally at negligible cost, making it ideal for testing Diamond's hypothesis regarding search and monopoly pricing. As Diamond predicts, price discrimination survives in this market. Despite an excess supply of workers, but consistent with their self-reported attitudes and beliefs, sex workers charge Caucasians (Bangladeshis) more (less), based on perceived willingness to pay, and are more (less) likely to approach and reach an agreement with them. Consistent with taste discrimination, they avoid Indians, charge more and reach an agreement with them less frequently.

"How the Motherhood Penalty Varies by Wage, Cognitive Skill, and Race: A Reassessment"
*Co-sponsored with the Family Working Group.

Abstract: Motherhood reduces women’s wages. Is the size of this penalty largest among the most or least advantaged women? Two 2010 papers using the same panel data suggest opposite answers to this question. With and without controls for years of employment experience, Wilde et al. find higher motherhood wage penalties for those with higher cognitive skill, while Budig and Hodges find higher penalties for women at lower wage levels. Taken together, these findings are puzzling, because women with higher cognitive skills typically have higher wages. Using unconditional quantile regression, panel data, and fixed effects, we assess how penalties vary by intersections of skill, wage level, and race. We find that the most advantaged women—white women with high cognitive skills and high wages—experience the highest total proportionate penalties, estimated to include effects mediated through experience. Although this group has the most continuous experience, their high returns to experience make even the small amounts of time they typically take out of employment for child rearing costly. Penalties net of experience, which might represent employer discrimination or effects of motherhood on job performance, do not differ consistently by race, skill, or wage; they afflict advantaged and disadvantaged women approximately equally.

"Energy Efficiency Investments, Self-Selection, and Welfare"

Abstract: This paper evaluates the welfare consequences, rather than simply measuring energy savings, of a popular energy efficiency program exploiting a 100,000 household field experiment in Wisconsin. There are five main findings.  First, nudges, information, and behavioral interventions do not increase program participation but monetary incentives do. Second, the take-up of energy efficiency investments is relatively inelastic to expected returns and reveals substantial non-monetary benefits and costs. Third, individuals that select into the energy efficiency program based on financial incentives are less likely to make efficiency investments than individuals that select in on their own, suggesting that these programs' returns may decline as they expand. Fourth, we find that realized energy savings are just 64% of projected savings and the social internal rate of return on these investments is -1.8%. Fifth, the revealed preference welfare analysis suggests that the program reduced welfare, primarily because subsidies exceeded uninternalized externality damages.

“Early-Life Undernourishment in Developing Countries: Prevalence, Associations/Impacts over the Life Cycle and Determinants”

Abstract:  This presentation first summarizes the prevalence of undernutrition among children in developing countries.  It then summarizes impacts and associations over the life cycle using the Guatemalan INCAP longitudinal data (to estimate the impacts of both a protein-rich nutritional supplements allocated randomly among a small number of villages and of height-for-age z scores at 24-36 months) and the Young Lives longitudinal data from Ethiopia, India, Peru and Vietnam to investigate whether the critical window for nutrition ends in infancy.   Finally it summarizes estimates using longitudinal data from Guatemala and Cebu in the Philippines of the impact of protein and non-protein energy on early childhood height and weight.