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Book part
Publication date: 10 November 2014

Marie Connolly

This paper looks at the changes in the time allocation of welfare recipients in the United States following the 1996 welfare reform and other changes in their economic…

Abstract

This paper looks at the changes in the time allocation of welfare recipients in the United States following the 1996 welfare reform and other changes in their economic environment. Time use is a major determinant of well-being, and for policymakers to understand the broad influences that their policies can have on a population they ought to consider changes in all activities, not simply paid work. While an increase in market work of the welfare population has been well documented, little is known on the evolution of the balance of their time. Using the Current Population Survey to model the propensity to receive welfare, together with a multiple imputation procedure, I replicate previous difference-in-differences estimates that found an increase in child care and a decline in nonmarket work. However when additional data sources are used, I find that time spent providing child care does not increase. This is especially relevant as welfare recipients are overwhelmingly poor single mothers and the welfare reform increased time at work with ambiguous effects on time spent with children. I also find that time at work follows business cycles, with dramatic increases in work time throughout the strong economy of the late 1990s, accompanied by less time in leisure activities.

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Factors Affecting Worker Well-being: The Impact of Change in the Labor Market
Type: Book
ISBN: 978-1-78441-150-3

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Book part
Publication date: 1 October 2008

Magnus Lofstrom and John Tyler

In this paper, we develop a simple model of the signaling value of the General Educational Development certificate (GED) credential. The model illustrates necessary…

Abstract

In this paper, we develop a simple model of the signaling value of the General Educational Development certificate (GED) credential. The model illustrates necessary assumptions for a difference-in-differences estimator that uses a change in the GED passing standard to yield unbiased estimates of the signaling value of the GED for marginal passers. We apply the model to the national 1997 passing standard increase, which affected GED test takers in Texas. We utilize unique data from the Texas Schools Micro Data Panel (TSMP) that contain demographic and GED test score information from the Texas Education Agency linked to pre- and post-test-taking Unemployment Insurance quarterly wage records from the Texas Workforce Commission. Comparing Texas dropouts who acquired a GED before the passing standard was raised in 1997 to dropouts with the same test scores who failed the GED exams after the passing standard hike, we find no evidence of a positive GED signaling effect on earnings. However, we find some evidence suggesting that our finding may be due to the low GED passing threshold that existed in Texas for an extended period.

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Work, Earnings and Other Aspects of the Employment Relation
Type: Book
ISBN: 978-1-84950-552-9

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Article
Publication date: 7 January 2019

Indrajit Roy and Narayanan K.

This paper aims to analyse the change in performance of parent Indian firms (home effects) who have invested in overseas locations in recent times.

Abstract

Purpose

This paper aims to analyse the change in performance of parent Indian firms (home effects) who have invested in overseas locations in recent times.

Design/methodology/approach

Difference-in-difference (DiD) estimate of home effects using farm level data.

Findings

Home effects of Indian outward foreign direct investment (OFDI), in general, are insignificant. However, in the case of OFDI directed only to non-offshore financial centre (OFC), some firms did enjoy beneficial home effects with respect to turnover, current ratio and leverage ratio. In the case of OFDI directed purely to OFC locations, some of the parameters exhibited negative home effects. In the subsample of Indian OFDI directed to combination of OFC and non-OFC locations, the results show positive home effects with respect to export, operating profit margin and forex earnings; however, impact on turnover seems to be negative for all the quartiles.

Research limitations/implications

Estimation of home effects using data over longer horizon may yield robust outcome.

Practical implications

These results make a strong case to draw a distinction among OFDIs to OFC, non-OFC and combination of OFC and non-OFC locations in studying the beneficial home effects of OFDI.

Originality/value

To the authors’ knowledge, this is the first paper which estimates home effects of different groups of Indian firms (based on their investment locations and size class) using difference-in-difference estimate.

Details

Journal of Asia Business Studies, vol. 13 no. 1
Type: Research Article
ISSN: 1558-7894

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Book part
Publication date: 11 August 2014

Timothy J. Bartik and Marta Lachowska

In order to study whether college scholarships can be an effective tool in raising students’ performance in secondary school, we use one aspect of the Kalamazoo Promise…

Abstract

In order to study whether college scholarships can be an effective tool in raising students’ performance in secondary school, we use one aspect of the Kalamazoo Promise that resembles a quasi-experiment. The surprise announcement of the scholarship created a large change in expected college tuition costs that varied across different groups of students based on past enrollment decisions. This variation is arguably exogenous to unobserved student characteristics. We estimate the effects of this change by a set of “difference-in-differences” regressions where we compare the change in student outcomes in secondary school across time for different student “length of enrollment” groups. We also control for student fixed effects. We find positive effects of the Kalamazoo Promise on Promise-eligible students large enough to be deemed important – about a 9 percent increase in the probability of earning any credits and one less suspension day per year. We also find large increases in GPA among African American students.

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New Analyses of Worker Well-Being
Type: Book
ISBN: 978-1-78350-056-7

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Book part
Publication date: 14 July 2004

Henry S. Farber

I examine changes in the incidence and consequences of job loss between 1981 and 2001 using data from the Displaced Workers Surveys (DWS) from 1984 to 2002. The overall…

Abstract

I examine changes in the incidence and consequences of job loss between 1981 and 2001 using data from the Displaced Workers Surveys (DWS) from 1984 to 2002. The overall rate of job loss has a strong counter-cyclical component, but the job-loss rate was higher than might have been expected during the mid-1990’s given the strong labor market during that period. While the job-loss rate of more-educated workers increased, less-educated workers continue to have the highest rates of job loss overall. Displaced workers have a substantially reduced probability of employment and an increased probability of part-time employment subsequent to job loss. The more educated have higher post-displacement employment rates and are more likely to be employed full-time. The probabilities of employment and full-time employment among those reemployed subsequent to job loss increased substantially in the late 1990s, suggesting that the strong labor market eased the transition of displaced workers. Reemployment rates dropped sharply in the recession of 2001. Those re-employed, even full-time and regardless of education level, suffer significant earnings declines relative to what they earned before they were displaced. Additionally, foregone earnings growth (the growth in earnings that would have occurred had the workers not been displaced), is an important part of the cost of job loss for re-employed full-time job losers. There is no evidence of a decline during the tight labor market of the 1990s in the earnings loss of displaced workers who were reemployed full-time. In fact, earnings losses of displaced workers have been increasing since the mid 1990s.

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Accounting for Worker Well-Being
Type: Book
ISBN: 978-1-84950-273-3

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Article
Publication date: 14 August 2017

Jiebei Luo

This paper aims to evaluate the performance of a chat reference service implemented at an academic library in a private liberal arts college by gauging its impact on other…

Abstract

Purpose

This paper aims to evaluate the performance of a chat reference service implemented at an academic library in a private liberal arts college by gauging its impact on other forms of reference service in terms of usage volume, with a focus on research-related face-to-face reference questions.

Design/methodology/approach

Two statistical methods are used, namely, the difference-in-differences method and a simple moving average time series analysis, to analyze both the short-term and long-term impact brought by chat reference.

Findings

This study finds that the usage volume of the traditional face-to-face reference is significantly affected by chat reference in its first service year. The long-term analysis suggests that chat reference volume displays a significant declining trend (−2.06 per cent academic month) since its implementation. Yet, its usage volume relative to other reference services remains stable over time.

Originality/value

The findings in this case study will be of value to libraries with similar scale and institutional features that are also interested in assessing their chat reference service. In addition, this paper is the first to apply the difference-in-differences approach in the field of library science, and the two statistical methods adopted in this case study can be readily adapted and applied to other similar volume-based library assessment projects.

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Book part
Publication date: 21 November 2014

Ryan Greenaway-McGrevy, Chirok Han and Donggyu Sul

This paper is concerned with estimation and inference for difference-in-difference regressions with errors that exhibit high serial dependence, including near unit roots…

Abstract

This paper is concerned with estimation and inference for difference-in-difference regressions with errors that exhibit high serial dependence, including near unit roots, unit roots, and linear trends. We propose a couple of solutions based on a parametric formulation of the error covariance. First stage estimates of autoregressive structures are obtained by using the Han, Phillips, and Sul (2011, 2013) X-differencing transformation. The X-differencing method is simple to implement and is unbiased in large N settings. Compared to similar parametric methods, the approach is computationally simple and requires fewer restrictions on the permissible parameter space of the error process. Simulations suggest that our methods perform well in the finite sample across a wide range of panel dimensions and dependence structures.

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Book part
Publication date: 10 November 2014

Mauricio Moura and Rodrigo Bueno

This paper assesses the effect of property titling on child labor. Our main contribution is to investigate the potential impact of property rights on child labor supply by…

Abstract

This paper assesses the effect of property titling on child labor. Our main contribution is to investigate the potential impact of property rights on child labor supply by analyzing household response regarding the child labor force to exogenous changes in property ownership status. The causal role of legal ownership is isolated by comparing the effect of land titling using data from a unique study in two geographically close and demographically similar communities in Osasco, a town of 654,000 people in the Sao Paulo metropolitan area. Survey data were collected from households in both communities before and after the granting of land titles, with neither type knowing ex ante whether it would receive land titles. The econometric estimates, applying the Difference-in-Difference (DD) methodology and propensity score matching, suggest that land titling decreases child labor.

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Factors Affecting Worker Well-being: The Impact of Change in the Labor Market
Type: Book
ISBN: 978-1-78441-150-3

Keywords

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Book part
Publication date: 12 April 2012

Fabián Slonimczyk

The 2001 Russian tax reform reduced average tax rates for the personal income tax and the payroll or social tax. It also made the tax structure more regressive. Because…

Abstract

The 2001 Russian tax reform reduced average tax rates for the personal income tax and the payroll or social tax. It also made the tax structure more regressive. Because individuals in the lower income bracket were for the most part not affected, it is possible to estimate the effects of the reform using a differences-in-differences approach. I study the effect of the reform on informal employment. Informality is defined using information on employment registration and self-employment. Applying parametric and semi-parametric techniques, I find evidence that the tax reform led to a significant reduction in the fraction of informal employees. Among the different forms of informality I study, the reform seems to have had the strongest effect on the prevalence of informal irregular activities. I also document stronger effects on individuals who benefited from the largest reductions in tax rates. The strong response to the tax reform is consistent with the emerging consensus in the literature on taxation that changes to the tax system lead to significant behavioral responses, although not necessarily in the form of a reduced labor supply.

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Informal Employment in Emerging and Transition Economies
Type: Book
ISBN: 978-1-78052-787-1

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Book part
Publication date: 13 April 2011

Lutz Bellmann and Hans-Dieter Gerner

In Germany, the economic crisis 2008/09 was restricted to export-oriented industries such as automotive, chemistry, and mechanical engineering and hence to industries with…

Abstract

In Germany, the economic crisis 2008/09 was restricted to export-oriented industries such as automotive, chemistry, and mechanical engineering and hence to industries with a high proportion of qualified employees. Therefore, we expect the most current crisis to have a reversed effect on the relative earnings position between more and less qualified in contrast to a development that favored the more qualified since the beginning of the 1980s. Our empirical study is based on the Institute for Employment Research (IAB) Establishment Panel, a representative German establishment level panel data set that surveys information from almost 16,000 personal interviews with high ranked managers.

Despite the “German Job Miracle,” conditional difference-in-differences estimations to control for observed and unobserved heterogeneity reveal substantial employment reductions in establishments affected by the economic crisis. Falls in employment are strongest in plants with a relatively low proportion of qualified workers. Furthermore, our results indicate that the economic crisis is associated with a decline in wages, but only in those establishments that do not operate working time accounts. In sum, we do not find evidence for the current crisis having a reversed effect on the relative earnings position. Obviously once again, the higher qualified are better off than the lower qualified.

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Who Loses in the Downturn? Economic Crisis, Employment and Income Distribution
Type: Book
ISBN: 978-0-85724-749-0

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