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Neighborhood Effects on High-School Drop-Out Rates and Teenage Childbearing: Tests for Non-Linearities, Race-Specific Effects, Interactions with Family Characteristics, and Endogenous Causation using Geocoded California Census Microdata
May 2008
Working Paper Number:
CES-08-12
This paper examines the relationship between neighborhood characteristics and the likelihood that a youth will drop out of high school or have a child during the teenage years. Using a dataset that is uniquely wellsuited to the study of neighborhood effects, the impact of the neighborhood poverty rate and the percentage of professionals in the local labor force on youth outcomes in California is examined. The first section of the paper tests for non-linearities in the relationship between indicators of neighborhood distress and youth outcomes. Some evidence is found for a break-point at low levels of poverty. Suggestive but inconclusive evidence is also found for a second breakpoint, at very high levels of poverty, for African-American youth only. The second part of the paper examines interactions between family background characteristics and neighborhood effects, and finds that White youth are most sensitive to neighborhood effects, while the effect of parental education depends on the neighborhood measure in question. Among White youth, those from single-parent households are more vulnerable to neighborhood conditions. The third section of the paper finds that for White youth and Hispanic youth, the relevant neighborhood variables appear to be the own-race poverty rates and the percentage of professionals of youths' own race. The final section of the paper estimates a tract-fixed effects model, using the results from the third section to define multiple relevant poverty rates within each tract. The fixed-effects specification suggests that for White and Hispanic youth in California, neighborhood effects remain significant, even with the inclusion of controls for any unobserved family and neighborhood characteristics that are constant within tracts.
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Who Gentrifies Low Income Neighborhoods?
January 2008
Working Paper Number:
CES-08-02
This paper uses confidential Census data, specifically the 1990 and 2000 Census Long- Form data, to study the demographic processes underlying the gentrification of low income urban neighborhoods during the 1990's. In contrast to previous studies, the analysis is conducted at the more refined census-tract level with a narrower definition of gentrification and more narrowly defined comparison neighborhoods. The analysis is also richly disaggregated by demographic characteristic, uncovering differential patterns by race, education, age and family structure that would not have emerged in the more aggregate analysis in previous studies. The results provide little evidence of displacement of low-income non-white households in gentrifying neighborhoods. The bulk of the income gains in gentrifying neighborhoods are attributed to white college graduates and black high school graduates. It is the disproportionate in-migration of the former and the disproportionate retention and income gains of the latter that appear to be the main engines of gentrification.
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Access Methods for United States Microdata
August 2007
Working Paper Number:
CES-07-25
Beyond the traditional methods of tabulations and public-use microdata samples, statistical agencies have developed four key alternatives for providing non-government researchers with access to confidential microdata to improve statistical modeling. The first, licensing, allows qualified researchers access to confidential microdata at their own facilities, provided certain security requirements are met. The second, statistical data enclaves, offer qualified researchers restricted access to confidential economic and demographic data at specific agency-controlled locations. Third, statistical agencies can offer remote access, through a computer interface, to the confidential data under automated or manual controls. Fourth, synthetic data developed from the original data but retaining the correlations in the original data have the potential for allowing a wide range of analyses.
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Access to Financial Capital Among U.S. Businesses: The Case of African-American Firms
December 2006
Working Paper Number:
CES-06-33
The differences between African-American business ownership rates and white business ownership rates are striking. Estimates from the 2000 Census indicate that 11.8 percent of white workers are self-employed business owners, compared with only 4.8 percent of black workers. Furthermore, black-white differences in business ownership rates have remained roughly constant over most of the twentieth century (Fairlie and Meyer 2000). In addition to lower rates of business ownership, black-owned businesses are less successful on average than are white or Asian firms. In particular, black-owned businesses have lower sales, hire fewer employees and have smaller payrolls than white- or Asian-owned businesses, on average (U.S. Census Bureau 2001, U.S. Small Business Administration 2001). Black firms also have lower profits and higher closure rates than white firms (U.S. Census Bureau 1997, U.S. Small Business Administration 1999). For most outcomes, the disparities are extremely large. For example, estimates from the 2002 Survey of Business Owners (SBO) indicate that white firms have average sales of $437,870 compared with only $74,018 for black firms.
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Families, Human Capital, and Small Business: Evidence from the Characteristics of Business Owners Survey
June 2005
Working Paper Number:
CES-05-07
An important finding in the rapidly growing literature on self-employment is that the probability of self-employment is substantially higher among the children of business owners than among the children of non-business owners. Using data from the confidential and restricted-access Characteristics of Business Owners (CBO) Survey, we provide some suggestive evidence on the causes of intergenerational links in business ownership and the related issue of how having a family business background affects small business outcomes. Estimates from the CBO indicate that more than half of all business owners had a self-employed family member prior to starting their business. Conditional on having a self-employed family member, less than 50 percent of small business owners worked in that family member's business suggesting that it is unlikely that intergenerational links in self-employment are solely due to the acquisition of general and specific business capital and that instead similarities across family members in entrepreneurial preferences may explain part of the relationship. In contrast, estimates from regression models conditioning on business ownership indicate that having a self-employed family member plays only a minor role in determining small business outcomes, whereas the business human capital acquired from prior work experience in a family member's business appears to be very important for business success. Estimates from the CBO also indicate that only 1.6 percent of all small businesses are inherited suggesting that the role of business inheritances in determining intergenerational links in self-employment is limited at best.
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Why Are Black-Owned Businesses Less Successful than White-Owned Businesses? The Role of Families, Inheritances, and Business Human Capital
June 2005
Working Paper Number:
CES-05-06
Four decades ago, Nathan Glazer and Daniel Patrick Moynihan made the argument that the black family "was not strong enough to create those extended clans that elsewhere were most helpful for businessmen and professionals." Using data from the confidential and restricted access Characteristics of Business Owners Survey, we investigate this hypothesis by examining whether racial differences in family business backgrounds can explain why black-owned businesses lag substantially behind white-owned businesses in sales, profits, employment size and survival probabilities? Estimates from the CBO indicate that black business owners have a relatively disadvantaged family business background compared with white business owners. Black business owners are much less likely than white business owners to have had a self-employed family member owner prior to starting their business and are less likely to have worked in that family member's business. We do not, however, find sizeable racial differences in inheritances of business. Using a nonlinear decomposition technique, we find that the relatively low probability of having a self-employed family member prior to business startup among blacks does not generally contribute to racial differences in small business outcomes. Instead, the lack of prior work experience in a family business among black business owners, perhaps by limiting their acquisition of general and specific business human capital, negatively affects black business outcomes. We also find that limited opportunities for acquiring specific business human capital through work experience in businesses providing similar goods and services contribute to worse business outcomes among blacks. We compare these estimates to contributions from racial differences in owner's education, startup capital, geographical location and other factors.
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The Impact of Welfare Waivers on Female Headship Decisions
February 2003
Working Paper Number:
CES-03-03
While much of the focus of recent welfare reforms has been on moving recipients from welfare to work, many reforms were also directed at affecting decisions about living arrangements, pregnancy, marriage and cohabitation. This paper focuses on women's decisions to become or remain unmarried mothers, that is, female heads of families. We assess the impact of welfare reform waivers on those decisions while controlling for confounding local economic and social contextual conditions. We pool the 1990, 1992, and 1993 panels of the Survey of Income and Program Participation (SIPP) which span the calendar time when many states began adopting welfare waivers. For its descriptors of local labor market conditions, the project uses skill specific measures of wages and employment opportunities for counties. We estimate models for levels of female headship and proportional hazard models for entry and exit from female headship. In the hazards, we employ stratified Cox partial likelihood methods and investigate the use of state fixed effects or state stratified hazard models to control for unmeasured state influences. Based on data through 1995, we find limited evidence that workencouraging waivers had a beneficial effect by reducing female headship of families. We find little evidence that family caps, teenage coresidence requirements or termination limits will reduce the number of single-parent families.
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Estimating Measurement Error in SIPP Annual Job Earnings: A Comparison of Census Survey and SSA Administrative Data
September 2002
Working Paper Number:
tp-2002-24
The third chapter investigates measurement error in SIPP annual job
earnings data linked to SSA administrative earnings data. The multiple
earnings measures provided by the survey and administrative data enable
the identification of components of true variation and variation due to
measurement error. We find that 18% of the variation in SIPP annual job
earnings can be attributed to measurement error. We also find that in
both the SIPP and the DER, measurement error is persistent over time.
A lower level of auto-correlation in the SIPP measurement error than in
the economic error component leads to a lower reliability ratio of .62 for
first-differenced earnings.
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Abandoning the Sinking Ship: The Composition of Worker Flows Prior to Displacement
August 2002
Working Paper Number:
tp-2002-11
declines experienced by workers several years before displacement occurs. Little attention, however,
has been paid to other changes in compensation and employment in firms prior to the actual
displacement event. This paper examines changes in the composition of job and worker flows
before displacement, and compares the "quality" distribution of workers leaving distressed firms to
that of all movers in general.
More specifically, we exploit a unique dataset that contains observations on all workers over
an extended period of time in a number of US states, combined with survey data, to decompose
different jobflow statistics according to skill group and number of periods before displacement.
Furthermore, we use quantile regression techniques to analyze changes in the skill profile of workers
leaving distressed firms. Throughout the paper, our measure for worker skill is derived from
person fixed effects estimated using the wage regression techniques pioneered by Abowd, Kramarz,
and Margolis (1999) in conjunction with the standard specification for displaced worker studies
(Jacobson, LaLonde, and Sullivan 1993).
We find that there are significant changes to all measures of job and worker flows prior to
displacement. In particular, churning rates increase for all skill groups, but retention rates drop
for high-skilled workers. The quantile regressions reveal a right-shift in the distribution of worker
quality at the time of displacement as compared to average firm exit flows. In the periods prior
to displacement, the patterns are consistent with both discouraged high-skilled workers leaving the
firm, and management actions to layoff low-skilled workers.
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The Longitudinal Business Database
July 2002
Working Paper Number:
CES-02-17
As the largest federal statistical agency and primary collector of data on businesses, households and individuals, the Census Bureau each year conducts numerous surveys intended to provide statistics on a wide range of topics about the population and economy of the United States. The Census Bureau's decennial population and quinquennial economic censuses are unique, providing information on all U.S. households and business establishments, respectively.
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