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Universal Preschool Lottery Admissions and Its Effects on Long-Run Earnings and Outcomes
March 2023
Working Paper Number:
CES-23-09
We use an admissions lottery to estimate the effect of a universal (non-means tested) preschool program on students' long-run earnings, income, marital status, fertility and geographic mobility. We observe long-run outcomes by linking both admitted and non-admitted individuals to confidential administrative data including tax records. Funding for this preschool program comes from an Indigenous organization, which grants Indigenous students admissions preference and free tuition. We find treated children have between 5 to 6 percent higher earnings as young adults. The results are strongest for individuals from the lower half of the household income distribution in childhood. Likely mechanisms include high-quality teachers and curriculum.
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Run Effects of Military Service: Evidence from the 911 Attacks
November 2021
Working Paper Number:
CES-21-36
We investigate the effect of military service on labor market, health and family formation outcomes, leveraging differential changes in enlistment rates brought about by the September 11th attacks (911). Using restricted microdata, we identify hundreds of 'high service" counties in which certain birth-county cohorts exhibit large enlistment responses to 911. We find that individuals born into high service counties between 1977 and 1983 (aged 18-24 at the time of the attack), enlisted at nearly twice the rate of earlier birth cohorts (older than 24 at the time of the attack). These high service birth-county cohorts experienced a 10% increase in wages, decreased unemployment and impacts on other labor market measures as well as key household formation measures including marriage and fertility. We also find increases in the hospitalization and mortality rates. Labor market benefits outweigh mortality costs at standard discount rates.
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Family Formation and the Great Recession
December 2020
Working Paper Number:
CES-20-42R
This paper studies how exposure to recessions as a young adult impacts long-term family formation in the context of the Great Recession. Using confidential linked survey data from U.S. Census, I document that exposure to a 1 pp larger unemployment shock in the Great Recession in one's early 20s is associated with a 0.8 pp decline in likelihood of marriage by their early 30s. These effects are not explained by substitution toward cohabitation with unmarried partners, are concentrated among whites, and are notably absent for individuals from high-income families. The estimated effects on fertility are also negative but imprecisely estimated. A back-of-the-envelope exercise suggests that these reductions in family formation may have increased the long-run impact of the Recession on consumption relative to its impact on individual earnings by a considerable extent.
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The EITC and Intergenerational Mobility
November 2020
Working Paper Number:
CES-20-35
We study how the largest federal tax-based policy intended to promote work and increase incomes among the poor'the Earned Income Tax Credit (EITC)'affects the socioeconomic standing of children who grew up in households affected by the policy. Using the universe of tax filer records for children linked to their parents, matched with demographic and household information from the decennial Census and American Community Survey data, we exploit exogenous differences by children's ages in the births and 'aging out' of siblings to assess the effect of EITC generosity on child outcomes. We focus on assessing mobility in the child income distribution, conditional on the parents' position in the parental income distribution. Our findings suggest significant and mostly positive effects of more generous EITC refunds on the next generation that vary substantially depending on the child's household type (single-mother or married family) and by the child's gender. All children except White children from single-mother households experience increases in cohort-specific income rank, own family income, and the probability of working at ages 25'26 in response to greater EITC generosity. Children from married households show a considerably stronger response on these measures than do children from single-mother households. Because of the concentration of family types within race groups, the more positive response among children from married households suggests the EITC might lead to higher within-generation racial income inequality. Finally, we examine how the impact of EITC generosity varies by the age at which children are exposed to higher benefits. These results suggest that children who first receive the more generous two-child treatment at later ages have a stronger positive response in terms of rank and family income than children exposed at younger ages.
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Maternal Labor Dynamics: Participation, Earnings, and Employer Changes
December 2019
Working Paper Number:
CES-19-33
This paper describes the labor dynamics of U.S. women after they have had their first and subsequent children. We build on the child penalty literature by showing the heterogeneity of the size and pattern of labor force participation and earnings losses by demographic characteristics of mothers and the characteristics of their employers. The analysis uses longitudinal administrative earnings data from the Longitudinal Employer-Household Dynamics database combined with the Survey of Income and Program Participation survey data to identify women, their fertility timing, and employment. We find that women experience a large and persistent decrease in earnings and labor force participation after having their first child. The penalty grows over time, driven by the birth of subsequent children. Non-white mothers, unmarried mothers, and mothers with more education are more likely to return to work following the birth of their first child. Conditional on returning to the labor force, women who change employers earn more after the birth of their first child than women who return to their pre-birth employers. The probability of returning to the pre-birth employer and industry is heterogeneous over both the demographics of mothers and the characteristics of their employers.
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The effect of child support on selection into marriage and fertility
February 2019
Working Paper Number:
CES-19-04
Child support policies in the United States have expanded dramatically since the mid-1970s and now cover 1 in 5 children. This paper studies the consequences of child support for marriage and fertility decisions. I first introduce a model showing that child support enforces ex ante commitment from men to provide financial support in the event of a child, which (1) increases premarital sex among couples unlikely to marry, and (2) reduces the abortion rate, by lessening the cost of raising a child as a single mom. Using variation in the timing and geography of the rollout of U.S. child support laws relative to the timing of pregnancy, from 1977 to 1992, I find that marriages following an unplanned pregnancy are less likely to occur under strengthened child support laws, accounting for about a 7-8 percentage point reduction relative to a base of 38 percent. I find that the child support rollout reduced the abortion rate by 1-2 per 1000 women aged 15-44, off a base of 28, representing about 50 percent of the total decline in the abortion rate over this period.
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The Parental Gender Earnings Gap in the United States
January 2017
Working Paper Number:
CES-17-68
This paper examines the parental gender earnings gap, the within-couple differences in earnings over time, before and after the birth of a child. The presence and timing of children are important components of the gender wage gap, but there is selection in both decisions. We estimate the earnings gap between male and female spouses over time, which allows us to control for this timing choice as well as other shared external earnings shifters, such as the local labor market. We use Social Security Administration Detail Earnings Records (SSA-DER) data linked to the Survey of Income and Program Participation (SIPP) to examine a panel of earnings from 1978 to 2011 for the individuals in the SIPP sample. Our main results show that the spousal earnings gap doubles between two years before the birth of the first child and the year after that child is born. After the child's first year of life the gap continues to grow for the next five years, but at a much slower rate, then tapers off and even begins to fall once the child reaches school-age.
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DOES PARENTS' ACCESS TO FAMILY PLANNING INCREASE CHILDREN'S OPPORTUNITIES? EVIDENCE FROM THE WAR ON POVERTY AND THE EARLY YEARS OF TITLE X
January 2017
Working Paper Number:
CES-17-67
This paper examines the relationship between parents' access to family planning and the economic resources of their children. Using the county-level introduction of U.S. family planning programs between 1964 and 1973, we find that children born after programs began had 2.8% higher household incomes. They were also 7% less likely to live in poverty and 12% less likely to live in households receiving public assistance. After accounting for selection, the direct effects of family planning programs on parents' incomes account for roughly two thirds of these gains.
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Planning Parenthood: The Affordable Care Act Young Adult Provision and Pathways to Fertility
January 2017
Working Paper Number:
CES-17-65
This paper investigates the effect of the Affordable Care Act young adult provision on fertility and related outcomes. The expected effect of the provision on fertility is not clear ex ante. By expanding insurance coverage to young adults, the provision may affect fertility directly through expanded options for obtaining contraceptives as well as through expanded options for obtaining pregnancy-, birth-, and infant-related care, and these may lead to decreased or increased fertility, respectively. In addition, the provision may also affect fertility indirectly through marriage or labor markets, and the direction and magnitude of these effects is difficult to determine. This paper considers the effect of the provision on fertility as well as the contributing channels by applying difference-in-differences-type methods using the 2008-2010 and 2012-2013 American Community Survey, 2006-2009 and 2012-2013 Centers for Disease Control and Prevention abortion surveillance data, and 2006-2010 and 2011-2013 National Survey of Family Growth. Results suggest that the provision is associated with decreases in the likelihood of having given birth and abortion rates and an increase in the likelihood of using long-term hormonal contraceptives.
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The Timing of Teenage Births: Estimating the Effect on High School Graduation and Later Life Outcomes
January 2016
Working Paper Number:
CES-16-39R
We examine the long-term outcomes for a population of teenage mothers who give birth to their children around the end of their high school year. We compare the mothers whose high school education was interrupted by childbirth, because the child was born before her expected graduation date to mothers who did not experience the same disruption to their education. We find that mothers who give birth during the school year are seven percent less likely to graduate from high school, are less likely to be married, and have more children than their counterparts who gave birth just a few months later. The labor market outcomes for these two sets of teenage mothers are not statistically different, but with a lower likelihood of marriage and more children, the households of the treated mothers are more likely to fall below the poverty threshold. While differences in educational attainment have narrowed over time, the differences in labor market outcomes and family structure have remained stable.
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