Do students expect compensation for wage risk?

We use a unique data set about the wage distribution that Swiss students expect for themselves ex ante, deriving parametric and non-parametric measures to capture expected wage risk. These wage risk measures are unfettered by heterogeneity which handicapped the use of actual market wage dispersion as risk measure in earlier studies. Students in our sample anticipate that the market provides compensation for risk, as has been established with risk augmented Mincer earnings equations estimated on market data: higher wage risk for educational groups is associated with higher mean wages. With observations on risk as expected by students we find compensation at similar elasticities as observed in market data. The results are robust to different specifications and estimation models.     

A low-subsidy problem in public higher education

With an exogenous public subsidy and a break-even restriction on university net revenue, tuition discrimination supports a quasi-efficient departure from marginal-cost pricing. In contrast, when the legislature and university interact in their subsidy and tuition decisions, the public subsidy becomes endogenous. With an endogenous public subsidy, support by legislatures is affected by the same factors that influence tuition; this leads to a situation where higher tuition revenue is accompanied by a lower public subsidy. The welfare of students declines when this “low-subsidy” case develops. The university's ability to address this issue depends on its being able to commit to a tuition policy, and credible commitment appears consistent with existing institutional conditions.     

The impact of legalized abortion on high school graduation through selection and composition

This analysis examines whether the legalization of abortion changed high school graduation rates among the children selected into birth. Unless women in all socio-economic circum-stances sought abortions to the same extent, increased use of abortion must have changed the distribution of child development inputs. I find that higher abortion ratios are associated with higher graduation rates for black males, but not other demographic groups. In a pooled analysis, I find that abortion has a significant negative impact on graduation rates. The effect disappears when I control for ethnicity. The cohorts born between 1965 and 1979 contained falling shares of whites, who have relatively high graduation rates. Regression results indicate abortion ratios are linked with the fertility differences between ethnicities, which suggests this is a channel of influence. Overall, the relationship between abortion exposure and educational attainment is small. A standard deviation change in abortion might move the national graduation rate by less than three-tenths of a percentage point.     

Does high school quality matter? Evidence from admissions data

This paper examines the effect of attending elite private high school on college placement using admissions data from the most selective high school in a large metropolitan area. To overcome omitted variable bias, we limit the sample to admitted applicants and control directly for the scores assigned by admissions based on in-depth analyses of the applicants and their families. In addition, we control for a wide set of covariates including student and family characteristics and entrance exam scores. Results indicate that attending selective private high school rather than other public and private high schools causes students to attend more selective universities. Effects are driven by gains for girls and students from lower-income neighborhoods.     

Are boys discriminated in Swedish high schools?

Girls typically have higher grades than boys in school and recent research suggests that part of this gender difference may be due to discrimination of boys in grading. We rigorously test this in a field experiment where a random sample of the same tests in the Swedish language is subject to blind and non-blind grading. The non-blind test score is on average 15% lower for boys than for girls. Blind grading lowers the average grades with 13%, indicating that personal ties and/or grade inflation are important in non-blind grading. But we find no evidence of discrimination against boys in grading. The point estimate of the discrimination effect is close to zero with a 95% confidence interval of ±4.5% of the average non-blind grade.     

Do child care subsidies influence single mothers’ decision to invest in human capital?

A child care subsidy is one of the most effective policy instruments to facilitate low-income individuals’ transition from welfare to work. Although previous studies consistently find that subsidy receipt is associated with increased employment among single mothers, there is currently no evidence on the influence of these benefits on the decision to invest in human capital. Using data from the Kindergarten cohort of the Early Childhood Longitudinal Study, this paper examines the impact of child care subsidy receipt on the likelihood of engaging in education and job training activities. We identify the impact of subsidy receipt by exploiting plausibly exogenous geographic variation in the distance that parents must travel from home in order to reach the nearest social service agency that administers the subsidy application process. Results suggest that child care subsidies encourage single mothers to engage in human capital investment. In particular, our instrumental variables estimates imply that subsidy receipt increases the likelihood that a single mother enrolls in courses at a school or university by 13 percentage points and participates in a job training program by 8 percentage points.     

Estimating the relation between health and education: What do we know and what do we need to know?

The empirical link between education and health is firmly established. Numerous studies document that higher levels of education are positively associated with longer life and better health throughout the lifespan.But measuring the causal links between education and health is a more challenging task. Aside from the typical econometric concerns about measurement error, functional form, and sampling properties, measuring the causal impact of education on health is confounded by the likely causal effect of health on education, and vice versa. Concerns about ‘missing’ variables that affect both the accumulation of human capital and the health capital - such as measures of individual discount rates - also make causality difficult to measure.Despite the difficulties, there has been a marked surge over the last decade in the number of empirical studies attempting to estimate the causal links between education and health. This survey reviews recent empirical evidence on the topic. Following the bifurcation in the literature, we split the survey into two pieces. First, we review the evidence of the effect of education on health. The vast majority of work in this area focuses on schooling up through college and its effect on adult health, including longevity. Second, we review the evidence of the effect of health on education, including health shocks in the womb and their effects on educational attainment. Rather than attempting a comprehensive review, our focus is to highlight relatively recent research.     

Effects of class size on alternative educational outcomes across disciplines

This is the first study to use self-reported ratings of student learning, instructor recommendations, and course recommendations as the outcome measure to estimate class size effects, doing so across 24 disciplines. Fixed-effects models controlling for heterogeneous courses and instructors reveal that increasing enrollment has negative and significant effects on student satisfaction in Sociology, Political Science, Computer Science and Engineering, and Mechanical and Aerospace Engineering. Educational outcomes in Linguistics, Psychology, Biological Sciences, Chemistry, Math, Physics, Cognitive Sciences, Visual Arts, History, and Philosophy are unaffected by class size. Other disciplines, including Economics, have inconclusive findings. No discipline benefits from increasing enrollment.     

Recess, physical education, and elementary school student outcomes

Today's children experience a decreased amount of time at recess and fewer physical education (PE) classes throughout the school day. Breaks for physical activity limit class time for academics, potentially reducing learning. However, breaks may improve alertness and achievement. Using the Early Childhood Longitudinal Survey Kindergarten Class of 1998-1999, we evaluate how recess and PE in elementary school influence children's learning. We find no statistically significant or economically significant impacts of weekly recess or PE time on student learning for kindergarteners through fifth graders. For example, in kindergarten, adding an hour a week of recess reduces the average test score gain in reading by a statistically insignificant 0.01 standard deviations. An additional 49 min per week of PE in kindergarten improves reading test score gains by a statistically insignificant 0.05 standard deviations. We find no statistical difference in the male and female students’ response to recess and PE. Evidence suggests that recess and PE do not harm student outcomes.