Fertility, relative wages, and labor market decisions: A case of female teachers

This paper examines the effects of fertility and relative wages on occupational choice (teaching versus non-teaching) and labor force participation decisions of female college graduates using selectivity-corrected panel estimations.We find that the presence of a new born baby is not particularly important to the choice of occupation, but significantly discourages female labor force participation, especially among teachers. Higher relative wages are found to effectively attract female college graduates into teaching. College major in education is one of the most relevant determinants for female college graduates to become teachers. Though investing educational expenditures on teachers’ salary seems to be a valid policy, providing incentives for female college students to major in education will be an alterative way to secure teacher supply.     

Do sheepskin effects help explain racial earnings differences?

This study examines the role of sheepskin effects in explaining white–black earnings differences. The study finds significant differences in sheepskin effects between white men and black men, with white men receiving higher rewards for lower level signals (degrees of a college education or less) and black men receiving higher rewards for higher level signals (graduate degrees). In performing an Oaxaca decomposition of earnings differences, it is apparent that signaling plays an important role in explaining white–black earnings differences and that a portion of the gap may be explained by statistical discrimination.     

Trends in the payoff to academic and occupation-specific skills: the short and medium run returns to academic and vocational high school courses for non-college-bound students

Using data from three longitudinal surveys of American high school students, I show that vocational courses helped non-college-bound students to start their work life more successfully. A comparison of the returns to academic and vocational course work for non-college-bound students who graduated in 1972, 1980 and 1992 finds that the short and medium term payoffs to vocational courses rose substantially between 1972 and 1980 and remained high in 1992. Holding a host of variables constant, academic course work had much smaller labour market payoffs than vocational course work. These findings contradict the often repeated claim that employers now seek workers with a good general education and are happy to teach the occupation specific skills necessary to do the job. High school students who do not plan to attend college full-time would be well advised to start studying a well paying occupation before they complete high school. [JEL: I20, J23, J24]     

Gender-based wage differentials in a predominantly female profession: observations from nursing

Despite numerous studies examining nursing wages, very little attention has focused on nursing wage differentials. We build on previous research by modeling nursing wages and examining male–female wage differences within the context of the current nursing shortage. Our results show that male nurses do earn a wage premium, largely explained by employment as a nurse anesthetist, job satisfaction, and experience. Whether or not this differential indicates discrimination toward females in the US nursing labor market is unclear. Since males represent a small proportion of the nursing workforce, the time required for males to become prevalent in the nursing labor market and help ease the nursing shortage is unknown. Consequently, one must ask whether the male wage premium is sufficient to attract substantial numbers of men into nursing, and whether wages, in general, are sufficient to attract the requisite numbers of males and females into nursing to address the shortage ‘crisis’.     

The role of test scores in explaining race and gender differences in wages

Previous research has suggested that skills reflected in test-score performance on tests such as the Armed Forces Qualification Test (AFQT) can account for some of the racial differences in average wages. I use a more complete set of test scores available with the National Longitudinal Survey of Youth 1979 Cohort to reconsider this evidence, and the results suggest a conclusion similar to earlier research. I also examine the ability of test scores to account for gender differences in wages. Women do not perform as well as men on two math-oriented tests, but they perform better on two speed-oriented tests that appear to have a strong relationship with wages. On net, the test-score difference can help account for only a small part of the gender difference in wages (for any race). Further results suggest that unexplained race and gender differences in wages have been growing over time for the 1979 cohort.     

The effect of grade retention on educational and labor market outcomes

Grade retention is a major issue in the ongoing debate over how to improve primary and secondary education in the United States. This paper examines the retention decision and its empirical effects using an economic framework. Within our model, the retention decision is endogenous with respect to such observables as dropping out of school and labor market earnings and this endogeneity needs to be accounted for in empirical work. In the empirical section of the paper we use the High School and Beyond (HSB) data set to examine the effects of retention on the probability of dropping out of high school and on labor market earnings several years after the student has entered the workforce. We account for the endogeneity of grade retention by using instrumental variables (IV) estimation where the key instrument is based on exogenous variation across states in kindergarten entry dates.     

Do academically deficient scholarship athletes earn higher wages subsequent to graduation?

In this paper, data from the Baccalaureate & Beyond 93/97/03 survey is used to estimate the effects on the earnings of scholarship athletics participants subsequent to graduation. Former college athletes are found to have higher wages on average. Upon first glance, colleges and universities could use these results to argue on behalf of investments in athletics. However, by using quantile regression, it is shown that the positive wage premiums are not equivalent for all college athletes.     

College majors and the knowledge content of jobs

College students select majors for a variety of reasons, including expected returns in the labor market. This paper demonstrates an empirical method linking a census of US degrees and fields of study with measures of the knowledge content of jobs. The study combines individual wage and employment data from the Current Population Survey (CPS) with ratings on 27 knowledge content areas from the Occupational Information Network (O^*NET), thus providing measures of the economy-wide knowledge content of jobs. Fields of study and corresponding BA degree data from the Digest of Education Statistics for 1976–1977 through 2001–2002 are linked to these 27 content areas. We find that the choice of college major is responsive to changes in the knowledge composition of jobs and, more problematically, the wage returns to types of knowledge. Women's degree responsiveness to knowledge content appears to be stronger than men's, but their response to wage returns is weak.     

Determinants of salary growth in Shenzhen, China: an analysis of formal education, on-the-job training, and adult education with a three-level model

Using 1996 surveyed data of 1023 employees in Shenzhen, China, this study estimated the effects of three forms of human capital on employee salary, namely formal education, on-the-job training provided by employers, and adult education pursued by employees. Using a hierarchical linear model, the analysis estimated employee monthly salary growth over a maximum of six years due to (a) such temporal factors as work experience and improved performance, (b) individual-level characteristics, and (c) firm-level characteristics. This study found that (a) pre-work formal education was positively associated with salary only at hiring, (b) employees' experience in changing production technology as well as on-the-job training were positively associated with salary increases through improved technical proficiency, formal education was not; (c) manufacturing firms introduced more new production technology than the service sector and provided more on-the-job training, thus improving workers' performance and increasing their salary.     

The returns to education for opportunity entrepreneurs,necessity entrepreneurs,and paid employees

We assess the relevance of formal education on the productivity of the self-employed, distinguishing between opportunity entrepreneurs, who voluntarily pursue a business opportunity, and necessity entrepreneurs, who lack alternative employment options. We expect differences in the returns to education between these groups due to different levels of control over the use of their human capital. The analysis employs the German Socio-Economic Panel and accounts for the endogeneity of education and non-random selection. Results indicate that the returns to a year of education for opportunity entrepreneurs are similar to the paid employees’ rate of 8.8%, but 3 percentage points lower for necessity entrepreneurs. Pooling the two types of entrepreneurs tends to understate the value of education for opportunity entrepreneurs and may spark misguided hopes concerning necessity entrepreneurs. The results may also partly explain Europe/US differences in average entrepreneurial returns.     

Math skills and market and non-market outcomes: Evidence from an Amazonian society of forager-farmers

Research in industrial nations suggests that formal math skills are associated with improvements in market and non-market outcomes. But do these associations also hold in a highly autarkic setting with a limited formal labor market? We examined this question using observational annual panel data (2008 and 2009) from 1121 adults in a native Amazonian society of forager-farmers in Bolivia (Tsimane’). Formal math skills were associated with an increase in wealth in durable market goods and in total wealth between data collection rounds, and with improved indicators of own reported perceived stress and child health. These associations did not vary significantly by people's Spanish skills or proximity to town. We conclude that the positive association between math skills and market and non-market outcomes extends beyond industrial nations to even highly autarkic settings.     

Immigration and its effect on the college-going outcomes of natives

In this paper, I analyze immigration's effect on the SAT-scores and college application patterns of high school students in California and Texas. The student-level dataset used is longitudinal in nature and is matched via a unique algorithm to the Census 2000 summary tabulation files to determine immigration at the local census-place level. The Census measure of immigration developed here is extremely specific and improves upon existing immigration measures. Using empirical strategies to account for issues of selection, this essay's main finding is that the 1990s immigration did not harm, and possibly benefited the student outcomes of U.S. citizens.     

The effective use of student time: a stochastic frontier production function case study

The relationship between student study time allocation and examination performance is little understood. We model the allocation of student time into formal study (lectures and classes) and self study and its relationship to university examination scores using a stochastic frontier production function. This case study uses unique time budget data and detailed personal records from one university in Spain. The results suggest that, within the formal system of teaching in Spain, both formal study and self study are significant determinants of exam scores but that the former may be up to four times more important than the latter. We also find that self study time may be insignificant if ability bias is corrected for.     

Economic development, human capital, and gender earnings differentials in China

Gender earnings differentials in China during the course of development in the post-reform period were examined. The analysis showed that the female–male earnings ratio increased over time in all regions. The region with relatively rapid economic reforms had the highest female–male earnings ratio. Decomposition of the gender earnings differential revealed that in the more developed region a lower percentage of the differential could be explained by gender differences in productive characteristics. Changes in the discriminatory component of the differential by region over time suggested that both the “competition” effect proposed by Becker [The Economics of Discrimination, 1971] and the effects of wage decentralization during economic reforms played a different role in the eastern and central regions versus their role in the western region. Further examination of the sub-components of the explained component of the differential highlighted the minor role of education in explaining the gender earnings differentials.     

Effects of weight on children's educational achievement

In this paper, we investigate the association between weight and children's educational achievement, as measured by scores on Peabody Individual Achievement Tests in math and reading, and grade attainment. Data for the study came from the 1979 cohort of the National Longitudinal Survey of Youth (NLSY), which contains a large, national sample of children between the ages of 5 and 12 between 1986 and 2004. We obtained estimates of the association between weight and achievement using several regression model specifications that controlled for a variety of observed characteristics of the child and his or her mother, and time-invariant characteristics of the child. Our results suggest that, in general, children who are overweight or obese have achievement test scores that are about the same as children with average weight.     

No harmless child labor: The effect of child labor on academic achievement in francophone Western and Central Africa

This study empirically examines the effect of child labor on academic achievement in 10 francophone Western and Central African countries. The data were taken from the Programme d’Analyse des Systèmes Educatifs de la CONFEMEN and comprised characteristics of 25,288 grade six students across 1803 schools. Two-stage least squares analysis highlights that child labor undermines academic achievement regardless of subject, gender, and age. It lowers reading and mathematics scores for both genders and for children under 12 and over 13 years. Child labor therefore hinders human capital accumulation in African countries, and it takes place at the cost of future prosperity.     

Blocking student performance in high school?

Block schedules have been used in several different high schools in various areas of the United States. Reasons for their use vary from better preparing students for college work to fewer disruptions of the school day. Several studies have examined the impact of changing from a semester system to a block system on the academic performance in specific areas with varying results. This paper examines the impact of a change of schedule on overall academic performance as measured by a student’s Grade Point Average. This study indicates that for the specific case studied, the change in systems did have a positive effect on performance.     

Overeducation on the Belgian labour market: evaluation and analysis of the explanatory factors through two types of approaches

This paper examines the incidence and determinants of overeducation in the Belgian private sector. Two different approaches are used to define overeducation by means of data on characteristics of employees and employers. Using the 1995 Structure of Earnings Survey, between 22% and 24% of the workforce is found to be overeducated. Results support the idea that employers view labour market experience as a substitute for formal education. They also show that male workers and people employed in state‐owned firms are less affected by overeducation. Further results suggest that the size of the establishment has a very weak (negative) impact on overeducation.     

Second-generation Turkish youth in Europe: Explaining the academic disadvantage in Austria, Germany, and Switzerland

This investigation examines the role of students’ home and school variables in producing the achievement gap between second-generation Turkish students and their native peers in Austria, Germany, and Switzerland. Using the data from PISA 2006, this study supports past findings that both home and school resources affect the educational outcomes of immigrant students in their host society's school system. Specifically, the findings reveal that in Austria, Germany, and Switzerland, second-generation Turkish students had significant disadvantages in terms of allocated resources at home and in school. More often than not, these disadvantages were found to have significantly negative effects in terms of second-generation Turkish students’ test outcomes relative to their native peers. In all three countries, however, the differences between the second-generation Turkish students and their native peers in terms of their family/home resources were found to explain more of the achievement gap than the differences in their schooling resources.     

School district size and student educational attainment: evidence from Denmark

This paper analyses the effects of the size of school districts on educational attainment of students after compulsory school in Denmark. Using administrative microdata for individual students and their parents, logit models for the probability of obtaining different levels of education are estimated where the explanatory variables include district size, per student expenditure, and a wide range of controls for family background and district socioeconomic characteristics. It is found that attending schools in districts with a population of less than 15,000 (corresponding to less than 1800 students in public primary and lower secondary schools) has negative effects on educational attainment later in life: The probability of completing a secondary education (upper secondary school or vocational education) or a further or higher education is reduced by approximately 3 percentage points compared to having attended primary and lower secondary school in a district with more than 15,000 inhabitants.