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Human Capital and Black-White Earnings Gaps, 1996–2017
Get PDFThis paper estimates the contribution of human capital to the Black-white earnings gap in three separate samples of men spanning from 1966 through 2017, using both educational attainment and performance on standardized tests to measure human capital. There are three main findings. First, the magnitude of reductions in the Black-white earnings gap that occur after controlling for human capital has become much larger over time, suggesting a growing contribution of human capital to Black-white earnings disparities. Second, these increases are almost entirely due to growth in the returns to human capital, which magnify the impact of any racial differences in human capital levels, rather than to increasing racial gaps in the human capital traits themselves. Finally, growth in the explanatory power of human capital has been primarily due to increases in the association between human capital and the likelihood of nonwork, with no clear increases in the extent to which human capital explains Black-white wage differences. These findings highlight how apparently race-neutral structural developments in the U.S. labor market, such as increasing skill prices and falling labor force participation rates among less-skilled men, have had large impacts on racial inequity
The Effect of the Gig Economy on Labor Supply and Social Insurance Receipt
No full textThe gig economy offers individuals with flexible work arrangements, low barriers of entry, and potentially offers a valuable source of insurance. However, gig work opportunities differ from traditional work arrangements and therefore workers are not eligible for many important employer-sponsored benefits or labor protections. The goal of this project is to identify the effects of increased gig participation on individuals’ take up of social insurance. Early work examining the gig economy has focused primarily on labor supply, the value of flexibility, and income smoothing, leaving much to be learned about the interaction between this new labor market opportunity and take up of safety-net programs. Understanding the connection between these two will be especially important as the gig economy continues to grow, and crucial as we think about redesigning relevant labor policies and social insurance eligibility
McCamly Plaza Economic Impact Report
Get PDFIn August of 2020, leadership at Battle Creek Unlimited (BCU) requested that the Regional and Economic Planning Services Team at the W.E. Upjohn Institute for Employment Research (Upjohn) create a set of estimates for the renovation and operation of the McCamly Plaza Hotel and Plaza located in downtown Battle Creek
Effects of Disability Insurance Generosity on Labor Market Outcomes and Worker Health
No full textThe goal of this project is to identify how disability insurance (DI) generosity affects labor force participation and worker health and well-being. We will study a 2003 DI reform in Austria that substantially lowered the level of cash transfers for some individuals. Using linked data on Upper Austrian workers from 1996-2018 we will estimate how this change in DI generosity affected labor market outcomes, including unemployment claims, occupation, and wages, as well as health outcomes, including dependence on opioids and antidepressants, hospitalizations, cardiac events, and injuries. We will then link worker data to their children’s health records in an attempt to measure how much DI payments can affect health within households. In doing so, these estimates will speak to the welfare costs of tightening DI parameters and the spillover effects of health-related conditional cash transfers
Rail Transit Shocks and Labor Supply
No full textU.S. cities are making substantial investments in rail transit as a way to improve local labor market outcomes through reduced commuting costs and improved worker-firm matching. Investment in transport infrastructure affects commuting times but also impacts the decisions of where workers choose to live. Estimating the aggregate labor supply effect of rail transit is complicated by the endogeneity of worker neighborhood choice. I propose to leverage methodological advances in structural estimation and newly available data sources to estimate how transit expansions affect labor supply. I propose a study focused on the opening of a large rail system in Honolulu, Hawaii
Impact Estimates for the Freshwater Center
Get PDFLake Superior State University, in support of a U.S. Economic Development Administration (EDA) grant application, asked the Regional and Economic Planning Services Team at the W. E. Upjohn Institute for Employment Research (Upjohn) to estimate the economic impact of building and operating the Freshwater Center (Center) in Sault Ste. Marie, Michigan