Working Papers
The Heterogeneous Long Run Effects of Universal Preschool
Working Paper, March 2023 (awaiting disclosure) Joint with Alex
Smith and Jonathan Eggleston
Using
universe tax data and a difference-in-differences approach that leverages
the introduction of universal preschool in Georgia and Oklahoma, we show
that universal preschool generated no average increases in earnings for
individuals for whom the program was available in early childhood. These
average null results obscure significant heterogeneity in the effects of
preschool. A simple theory of treatment contrasts explains heterogeneity in
effects across natural subgroups and those constructed intentionally
to maximize heterogeneity. Data driven approaches to
identify treatment heterogeneity validate the importance of treatment
contrast in explaining the observed effects, while also suggesting
alternative forms of treatment heterogeneity that were not ex ante
apparent.
Which Workers Left the Labor Force Post-COVID Recession and Why?: Filing, Tax Credit Take-Up, and Labor Force
Engagement by Occupation
Working Paper, March 2023 (awaiting disclosure review) Joint
with Laura Kawano, Bruce Sacerdote, and Michael
Stevens
While
aggregate unemployment has returned to pre-COVID levels, labor force
engagement remains suppressed. We explore how both stimulus policy and
labor market exits during the pandemic impact tax filing behavior and
utilization of tax-based safety net programs. We use a panel of tax data
and newly assembled information on worker occupation to document who exited
the labor force and why. While exit is widespread, those most likely to
exit in the wake of the pandemic were those with the weakest pre- pandemic
rates of labor force engagement, including individuals in their twenties
and sixties, those with low earnings, and those working in the restaurant
or leisure and hospitality sectors. Increased exit is not explained by
eligibility for unemployment insurance or stimulus payments, school
closures, physical proximity of work, or mass layoffs. Nor is the Great
Resignation associated with additional upgrading of occupations or firm
quality. Labor force disengagement is acute in counties that had larger
shocks to out of home mobility, despite fully recovered job postings and
rising wages in these areas. Individuals who leave the labor force do not
(on average) make up the missing income nor are they more likely to live
with their parents. However, gig economy work and non employee compensation replace about 20% of the
losses of W-2 income. The facts suggest that the willingness to work for
low pay decreased and preferences for leisure and job flexibility increased
among a set of workers who have found ways to get by with less income.
The Effect of
Income During Infancy: Evidence from a Discontinuity in Tax Benefits
(forthcoming, Quarterly Journal of
Economics) Online Appendix
Working Paper, February 2022. Joint with Jonathan Eggleston
and Alexander A. Smith
We
provide evidence of the long-run effect of income provided during the first
year of life. We take advantage of the January 1 birthdate cutoff for
child-related tax benefits, which results in families of otherwise similar
children receiving substantially different amounts of income. Using the
universe of administrative tax data in selected years, we show that an
additional $1,000 of income during the first year of life increases young
adult earnings by at least 1-2%, with larger
effects
for males. These effects show up earlier in terms of improved math and
reading test scores and a higher likelihood of high school graduation.
Estimates of parental behavior in the years after birth suggest an
important role for liquidity during the year after birth.
Breaking the
Cycle: The Intergenerational Effects
of an Anti-Poverty Program in Early Childhood (forthcoming, Journal of Political Economy)
Working Paper, January 2022. Joint with Chloe Gibbs
Despite
substantial evidence that resources and outcomes are transmitted across
generations, there has been limited inquiry into the extent to which
anti-poverty programs actually disrupt the cycle of bad outcomes. We leverage the rollout of the United States’
largest early childhood program, Head Start, to estimate the effect of
early childhood exposure among mothers on their children’s long-term
outcomes. We find evidence of
intergenerational transmission of effects in the form of increased
educational attainment, reduced teen pregnancy, and reduced criminal
engagement in the second generation.
These effects correspond to an increase in discounted
second-generation wages of 6 to 11 percent depending on specification. Exploration of earlier outcomes suggests
an important role for changes in parenting behavior and potential
non-cognitive channels.
Fighting Crime
in the Cradle: The Effects of Early Childhood Access to
Nutritional Assistance (forthcoming, Journal of Human Resources)
(previously circulated as “Fighting Crime in the Cradle:
The Effects of Early Childhood Food Stamp Access”) #JHR Threads Explainer
Working Paper, June 2019. Joint with Alex Smith
Despite
the extraordinary social costs of crime, relatively little is known about
the early life determinants of later criminal behavior. We explore the
effect of access to nutritional assistance in early childhood. Using
variation in the rollout of the Food Stamp Program (FSP) in the 1960s and
70s, combined with criminal conviction data from North Carolina, we find
that FSP availability in early childhood leads to large reductions in later
criminal behavior. Each additional year of FSP availability in early
childhood reduces the likelihood of a criminal conviction in young
adulthood by 2.5 percent. FSP availability has particularly strong effects
on the most costly crime types for society:
violent and felony convictions. These effects are substantially larger for
non-whites, consistent with the higher levels of FSP participation in this
population. Analogous estimates derived from the FBIs Uniform Crime Report
data suggest similar reductions in arrests for violent crime. These results
reveal an important additional benefit of the FSP and suggest a potential
link between childhood nutrition and later criminal behavior. Even under
conservative assumptions, the discounted social benefits from the FSP's
later crime reduction exceed the costs of the program over this time
period.
The Bottom Line on College Advising:
Large Increases in Degree Attainment
Working Paper, October 2021. Joint with Ben Castleman
We
combine a large multi-site randomized control trial with administrative and
survey data to demonstrate that intensive advising during high school and
college leads to large increases in bachelor's degree attainment. Novel
causal forest methods suggest that these increases are driven primarily by
improvements in the quality of initial enrollment. Program effects are
consistent across sites, cohorts, advisors, and student characteristics,
suggesting the model is scalable. While current and proposed investments in
postsecondary education focus on cutting costs, our results suggest that
investment in advising is likely to be a more efficient route to promote
bachelor's degree attainment.
The Effect of
Early Childhood Education on Adult Criminality: Evidence from the 1960s
through 1990s (forthcoming, American Economic Journal: Economic
Policy)
Working Paper, September 2020. Joint with John Anders and Alex
Smith
We
investigate the impact of early childhood education on adult criminal
behavior, leveraging changes in policies that occurred over a number of
decades. Using variation across birth cohorts generated by the rollout of
Head Start (for those born in the 1960s and 1970s) and Smart Start (for
those born in the 1980s and 1990s), along with administrative crime data
that include the birth county of all individuals convicted of a crime in
North Carolina, we find that improvements to early childhood education led
to large (20 percent) reductions in the likelihood of a serious criminal
conviction in adulthood. These reductions were concentrated in high poverty
counties. While the benefits generated by each program in the form of crime
reduction account for a large portion of the costs of the education
provided, we find substantial relative gains from the targeting of funds to
high poverty areas and to areas without existing access to subsidized care.
You Can’t Handle
the Truth: The Effects of the Post-9/11 GI Bill on Higher Education and
Earnings
NBER Working Paper #29024, July 2021. Joint with Laura Kawano,
Bruce Sacerdote, Bill Skimmyhorn,
and Michael Stevens
The Post 9/11 GI Bill (PGIB) is among the largest and most generous
college subsidies enacted thus far in the U.S. We examine the impact of the
PGIB on veterans’ college-going, degree completion, federal education tax
benefit utilization, and long run earnings. Among veterans potentially
induced to enroll, the introduction of the PGIB raised college enrollment
by 0.17 years and B.A. completion by 1.2 percentage points (on a base of 9
percent). But, the PGIB reduced average annual earnings nine years after
separation from the Army by $900 (on a base of $32,000). Years enrolled
effects are larger and earnings effects more negative for veterans with
lower AFQT scores and those who were less occupationally skilled. Under a
variety of conservative assumptions, veterans are unlikely to recoup these
reduced earnings during their working careers. All veterans who were
already enrolled in college at the time of bill passage increase their
months of schooling, but only for those in public institutions did this
translate into increases in bachelor’s degree attainment and longer-run
earnings. For specific groups of students, large subsidies can modestly
help degree completion but harm long run earnings due to lost labor market
experience.
Can Information and Advising Affect Postsecondary Participation
and Attainment for Non-Traditional Students? Evidence from a Large-Scale
Experiment with the U.S. Army
NBER Working Paper 30665, November 2022. Joint with Kelli
Bird, Ben Castleman, and Bill Skimmyhorn
Lack of information and advising prior to college
matriculation may contribute to poor post-secondary outcomes among
non-traditional students. We conducted a large-scale, multi-arm field
experiment with the U.S. Army to investigate whether a package of
research-based personalized information and access to advising affects postsecondary
choices and attainment among a large non-traditional adult population. We
find no impact of the intervention on whether veterans enroll in college,
on the quality of their college enrollment, or on their persistence in
college. Our results suggest that influencing non-traditional populations’
educational decisions and outcomes will require substantially more
intensive programs.
Publications
The Effect of
Reduced Student Loan Borrowing on Academic Performance and Default:
Evidence from a Loan Counseling Experiment
Journal of Public
Economics, 202, 2021.
Student loan borrowing for higher education has
emerged as a top policy concern. Policy makers at the institutional, state,
and federal levels have pursued a variety of strategies to inform students
about loan origination processes and how much a student has cumulatively
borrowed, and to provide students with greater access to loan counseling.
We conducted an experiment to evaluate the impact of an outreach campaign
that prompted loan applicants at a large community college to make informed
and active borrowing decisions and that offered them access to remote,
one-on-one assistance from a loan counselor. The intervention led students to reduce
their unsubsidized loan borrowing by 7 percent, resulted in worse academic
performance, and increased the likelihood of loan default during the three
years after the intervention occurred. Our results suggest policy makers
and higher education leaders should carefully examine the potential
unintended consequences of efforts to reduce student borrowing,
particularly in light of growing evidence regarding the counter-intuitive
positive relationship between reduced borrowing levels and worse student
academic and financial outcomes.
Exploring College Counselor
Effectiveness
AEA, Papers and
Proceedings, 109, 2019.
Several
recent studies have investigated the impact of college advising on whether
students enter and succeed in postsecondary education. These papers
generally find positive impacts from advising, yet few explore the extent
of heterogeneity in impacts between program counselors. We take
advantage of quasi-random counselor assignment to explore variation and
correlates of college counselor effectiveness using rich administrative
data on adviser-advisee interactions from a multi-site randomized control
trial of a college advising program. Large overall effects on
college enrollment from the advising intervention are consistent across
counselors; there is little relationship between counselor characteristics
or behaviors and student outcomes.
Fighting for
Education: Veterans and Financial Aid
Journal of Labor
Economics, 37(2), 2019. [Pre-publication version]
Winner of Econ of Education Distinguished CESifo
Affiliate Award (best paper presented by young economist)
The
Post-9/11 GI Bill brought about the largest expansion in veteran education
benefits since the end of World War II, increasing annual benefit expenditures
from $3 billion to more than $13 billion dollars annually; in 2014, this
comprised nearly one-third of college grant and scholarship aid provided by
the federal government and exceeded the amount of college grant and
scholarship aid provided by all states combined. Leveraging the variation
provided by the benefit expansion, I explore the effect of financial aid on
the degree attainment of older nontraditional students. To determine these
effects, I exploit variation over time and across types of recipients, as
well as geographic variation in the size of the benefit expansion. I find
that this financial aid program increased degree attainment by five to six
percentage points, a 25 percent increase. This increase was driven by new
enrollment among those who might not otherwise have attended, as well as by
increased persistence among those who might otherwise have dropped out
before degree completion.
Aid and
Encouragement: Does a Letter Increase Enrollment Among UI Recipients?
American Economic
Journal: Economic Policy, 10(3), 2018. Joint with Sarah Turner
[NBER Working Paper No. 23374,
April 2017.]
Survey and Letter Appendix
For
individuals who experience job loss, enrollment in post-secondary programs
may provide an opportunity to improve future employment outcomes; yet,
decisions to enroll may be hampered by insufficient information about the
benefits and costs of enrollment.
One explanation for this is that Unemployment Insurance recipients
are not fully aware of the federal financial aid and enrollment
opportunities available to them. Indeed, incomplete knowledge of financial
aid availability and eligibility during the recent recession may have
limited the extent to which workers receiving Unemployment Insurance (UI)
took advantage of collegiate opportunities. In May of 2009, an executive
initiative and guidance from the Department of Labor and the Department of
Education encouraged states to send letters to UI recipients. These
letters: (1) suggested training as an avenue to better job security and
higher wages, (2) informed UI recipients about the Pell grant program and
educational opportunities, and (3) suggested that UI recipients may be
given special consideration for Pell grant receipt. We use the variation in
the sending of Pell letters within and across states to identify the effect
of this information on the college enrollment decisions of millions of
individuals who began drawing UI between May 2009 and November 2010. Using
the 2008 panel of the Survey of Income and Program Participation, we find
that individuals who are likely to have received a letter are four to five
percentage points (40%) more likely to enroll in college within the
following six months. A back of the envelope calculation suggests that the
intervention resulted in an increase in enrollment of at least half a
million UI recipients. The effects
are larger for women than men. The most pronounced effects are for black UI
recipients and UI recipients with relatively low earnings potential at
baseline, suggesting that differences in the accessibility of information
about program benefits and how to access them may contribute to
inequality. These findings have
implications for a large set of government programs where a
well-coordinated information intervention may be substantially more
effective than raising the generosity of existing government programs in
increasing participation.
From the
Battlefield to the Schoolyard: The Short-term Impact of the Post-9/11 GI
Bill
Journal of Human Resources, 50(2), 2015. [Pre-publication version]
The
Post-9/11 GI Bill brought about an enormous expansion in veteran education
benefits, roughly doubling the average maximum benefit level and generating
large variation in the magnitude of benefit expansion across states. Using a difference-in-differences strategy, I
explore how enrollment of older, non-traditional students responds to
educational subsidies. I use a model
of investment in education quality to illustrate how a modification in the
structure of benefit provision changes veterans’ incentives to invest in
human capital. The transition from a conditional cash
transfer to a more in-kind benefit affects the relative prices of different
types of education, pushing veterans to invest in more expensive (plausibly
higher quality) schooling. Using a
difference-in-differences strategy, combined with state level variation in
the degree of benefit expansion, I find that the higher level of benefits
increased college enrollment of separated veterans by between fifteen and
twenty percent, while also shifting the composition of enrollment towards
four-year schools.
Out of Work and
Into School: Labor Market Policies and College Enrollment During the Great
Recession
Journal of Public Economics, 124, 2015. Joint with Sarah Turner [Pre-publication
version]
The Great
Recession brought large increases in unemployment and college enrollment;
we examine how the combination of changing state labor market conditions
and state-specific variation in Unemployment Insurance (UI) interact to
affect enrollment outcomes. We identify a substantial role of the UI
program in affecting post-secondary enrollment choices. We provide some of
the first evidence that the duration of UI affects a displaced individual’s
propensity to enroll, and suggestive evidence that these effects are larger
in states with more inclusive approved training laws. These findings
identify a substantial overlap between UI policy and post-secondary
enrollment decisions, indicating the potential importance of UI in not only
providing income but also facilitating investments in skills.
Enroll or
Enlist: Credit Constraints, College Aid, and the Military Enlistment Margin
Economics of
Education Review, 51, 2016. [Pre-publication version]
Money for
education consistently ranks among the top answers
recruits give when asked why they joined the military. A potential
explanation for the prevalence of this enlistment motivation is that the
actual value of veteran education benefits exceeds the expected net present
value for individuals who want to attend college but face borrowing
constraints. Theory predicts that only constrained individuals will respond
differently to a change in costs depending on the resources available at
the time of the change. Costs that accrue during a period
of lower resources place a greater strain on credit-constrained
individuals who are unable to borrow from future earnings to finance them.
A policy that reduces the cost of immediate (lower resources) and
post-enlistment (higher resources) college enrollment should result in a
reduction in the enlistment of college-prepared individuals only if these
constraints are present. I explore this question by examining the
enlistment response of individuals to financial aid shocks. I find that the
introduction of a merit-aid program decreases the probability that a male
enlists in the military by .06 percentage points (a six percent reduction),
and that these effects are concentrated among applicants that are more
likely to qualify for merit scholarships. These effects are
located mainly in low-income areas, supporting the argument that the
effects on enlistment are a result of easing financial
constraints. A back of the envelope calculation suggests that
between 15 and 25 percent of merit-aid eligible likely recruits face
constraints.
Property Taxes
and Politicians: Evidence from School Budget Elections
(previously circulated as “Do Median Voters Matter:
Evidence from School-Budget Elections”)
National Tax Journal, 69:3, 2016. Joint with Tom Dee.
Recent
studies provide mixed evidence on whether electoral pressure influences policy
choices. This study examines this question in a unique setting: local
school districts where the policy outcome, property taxes, has unusually
high visibility and salience. We exploit the sharp discontinuity created by
the annual majority-rule school-budget elections in New Jersey’s school
districts. Using panel data from over 3,600 district-by-year elections, we
find that local politicians are responsive to a modest change in support
for a budget (around the 50 percent threshold) resulting in a reduction in
contemporaneous property taxes (by $180 per pupil or 1.7 percent) as well
as the proposed tax bill for the following year. However, these tax
reductions do not generally persist because budget rejections also trigger
subsequent increases in both voter turnout and support for school spending,
suggesting the stability of Tiebout equilibria.
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