Demographics, Fiscal Health, and School Quality: Shedding Light on School Closure Decisions

In our current challenging budgetary environment, school closures remain a potentially attractive choice. With a large panel of Illinois schools from 1991 to 2005, I investigate which factors contribute to school closures. Among elementary schools, declining enrolments and rural locations coincide with closures. However, schools with higher per-pupil spending are ceteris paribus less likely to close. Furthermore, better test scores also yield lower probabilities. High expenditures contribute to junior high closure, but the most significant predictors are the proportions of black and low income students. Administrators may claim that low enrolments and high spending motivate school closures, but in Illinois, that is not the whole story.education finance, education administration, school closures, tax policy

Immigrant Heterogeneity and the Earnings Distribution in the United Kingdom and United States: New Evidence from a Panel Data Quantile Regression Analysis

In this paper we use a relatively new panel data quantile regression technique to examine native-immigrant earnings differentials 1) throughout the conditional wage distribution, and 2) controlling for individual heterogeneity. No previous papers have simultaneously considered these factors. We focus on both women and men, using longitudinal data from the PSID and the BHPS. We show that country of origin, country of residence, and gender are all important deter- minants of the earnings differential. For instance, a large wage penalty occurs in the U.S. among female immigrants from non-English speaking countries, and the penalty is most negative among the lowest (conditional) wages. On the other hand, women in Britain experience hardly any immigrant-native wage differential. We find evidence suggesting that immigrant men in the U.S. and the U.K. earn lower wages, but the most significant results are found for British workers emigrating from non-English speaking countries. The various differentials we report in this paper reveal the value of combining quantile regression with controls for individual heterogeneity in better understanding immigrant wage effects

Principal accountability at private secondary schools

Increasing interest in voucher programs and privatizing public schools reveals a commonly-held belief that private schools are better able to produce a quality education. While state and national standards do not directly affect these schools, their private control yields strong student performance. To contribute to the general discovery about private schools, I use SASS and Census data to investigate accountability and outcomes at private secondary schools, focusing on principals, student outcomes, and administrator effectiveness. I find that principals are not rewarded for facing accountability or for exercising autonomy. OLS and quantile regression results also suggest no direct benefit for strong students at high quality schools. However, accountability does improve student outcomes at the (conditionally) weakest schools

ILR Impact Brief - CEOs and Layoffs: Sometimes the CEO Suffers Similar Fate

Mass layoffs have become an all too familiar occurrence in the United States; statistics indicate that an average of 5.7% of all employees lose their jobs in a typical year. And while many cutbacks were once meant to be temporary – that is, until demand picked up or the plant was retooled for a new model or new product – these days they more often have a permanence intended to reduce costs and boost efficiency. Companies may expect certain outcomes from workforce realignments, such as higher profits and greater productivity, but sometimes the future of the company’s chief executive is also at stake. Previous academic studies have found links between CEO tenure and company performance. For example, researchers have shown that the probability of management turnover decreases as a company\u27s stock price increases. In a slight variation on this theme, researchers have also shown that CEO resignations/firings tend to rise as a company’s prospects deteriorate. This particular study goes a step further and explores the relationship between layoff announcements (another indicator of company performance) and chief executives\u27 term in office

Reconstructing school segregation: on the efficacy and equity of single-sex schooling

A change to Title IX has spurred new single-sex public schooling in the US. Until recently, nearly all gender-segregated schools were private, and I therefore address potential selection bias in the effects on educational and labor market outcomes using within private sector comparisons, an index comparing expectations to outcomes, quantile regressions, and other techniques. Descriptive statistics suggest significant benefits, but more consideration of selection bias reveals less consistency. Girls' school alumnae are more likely than their coed peers to receive scholarships, but they are not more likely to pursue college degrees, and both genders are less likely to meet their own educational expectations. Moreover, single-sex schooling is not universally superior in supporting gender equity, as coeducational public schools yield the least segregated college major choices. On the other hand, I find 15-20% higher starting salaries among single-sex school graduates, but only persistently for men of median ability. Much of the benefit from single-sex schooling accrues to students already likely to succeed, but favorable selection is an insufficient explanation for all gains. Most notably, there are clear returns for both African-Americans and low income students

Demographics, fiscal health, and school quality: shedding light on school closure decisions

In our current challenging budgetary environment, school closures remain a potentially attractive choice. With a large panel of Illinois schools from 1991 to 2005, I investigate which factors contribute to school closures. Among elementary schools, declining enrolments and rural locations coincide with closures. However, schools with higher per-pupil spending are ceteris paribus less likely to close. Furthermore, better test scores also yield lower probabilities. High expenditures contribute to junior high closure, but the most significant predictors are the proportions of black and low income students. Administrators may claim that low enrolments and high spending motivate school closures, but in Illinois, that is not the whole story

Immigrant Heterogeneity and the Earnings Distribution in the United Kingdom and United States: New Evidence from a Panel Data Quantile Regression Analysis

In this paper we use a relatively new panel data quantile regression technique to examine native-immigrant earnings differentials 1) throughout the conditional wage distribution, and 2) controlling for individual heterogeneity. No previous papers have simultaneously considered these factors. We focus on both women and men, using longitudinal data from the PSID and the BHPS. We show that country of origin, country of residence, and gender are all important determinants of the earnings differential. For instance, a large wage penalty occurs in the U.S. among female immigrants from non-English speaking countries, and the penalty is most negative among the lowest (conditional) wages. On the other hand, women in Britain experience hardly any immigrant-native wage differential. We find evidence suggesting that immigrant men in the U.S. and the U.K. earn lower wages, but the most significant results are found for British workers emigrating from non-English speaking countries. The various differentials we report in this paper reveal the value of combining quantile regression with controls for individual heterogeneity in better understanding immigrant wage effects.immigrants, earnings, quantile regression, panel data

The Determinants of High School Closures: Lessons from Longitudinal Data throughout Illinois

Facing substantial financial pressure, many districts close schools in order to preserve solvency and improve student outcomes. Using a new longitudinal data set on all non-Cook County Illinois schools, we examine the determinants of high school closure decisions from 1991 through 2005. Our dataset combines information from a wide variety of sources, including the Illinois State Board of Education, the Census Bureau, the Illinois Department of Revenue, and the Bureau of Labor Statistics. Prior studies in this area typically use cross-sectional data, short panels, or case-studies. Schools that close have lower enrollments, are located in more rural areas, and have higher per-pupil expenditures. Enrollments and fiscal resources are indeed the most important determinants of school closures. Neither math and reading test scores nor the sociodemographics of the students have a significant impact on high school closure decisions.economics of education, education finance, human capital, secondary education

The determinants of high school closures: lessons from longitudinal data throughout Illinois

Facing substantial financial pressure, many districts close schools in order to preserve solvency and improve student outcomes. Using a new longitudinal data set on all non-Cook County Illinois schools, we examine the determinants of high school closure decisions from 1991 through 2005. Our dataset combines information from a wide variety of sources, including the Illinois State Board of Education, the Census Bureau, the Illinois Department of Revenue, and the Bureau of Labor Statistics. Prior studies in this area typically use cross-sectional data, short panels, or case-studies. Schools that close have lower enrollments, are located in more rural areas, and have higher per-pupil expenditures. Enrollments and fiscal resources are indeed the most important determinants of school closures. Neither math and reading test scores nor the sociodemographics of the students have a significant impact on high school closure decisions

Where do new Ph.D. economists go? Evidence from recent initial job placements

We use data from the 2007-2008 Ph.D. economist job market to investigate initial job placement in terms of job location, job type, and job rank. Our results suggest gender differences in all three dimensions of job placement. Relative to their male counterparts, female candidates are less (more) likely to be placed into academic (government or private sector) jobs and, on average, are placed into worse ranked jobs. Foreign female candidates are also more likely than foreign males to stay in the U.S. When foreign students are placed outside the U.S., they are more likely to be in academia than in government or private sector, while the opposite holds when foreign students are placed in the U.S., which is largely consistent with a stylized theory model. Our results also reveal various country/region heterogeneities in the type, location, and rank of job placements