A Guide (and Advice) for Economists on the U. S. Junior Academic Job Market

This document describes the U. S. academic job market for new Ph.D. economists and offers advice on conducting an academic job search. It reports findings from published papers, describes practical details, and provides links to internet resources. Topics addressed include: preparing to go on the market, applying for academic jobs, interviewing, campus visits, offers and negotiating, diversity, and dual job searches. This paper is no longer available on this working paper archive. The paper is available as part of the September 2002 Job Openings for Economists and can be downloaded at: http://www.eco.utexas.edu/joe/junior academic economics job market guide advice

Contingent Valuation Analysis of Willingness to Pay To Reduce Childhood Obesity

Several recent surveys have asked Americans whether they support policies to reduce childhood obesity. There is reason for skepticism of such surveys because people are not confronted with the tax costs of such policies when they are asked whether they support them. This paper uses contingent valuation (CV), a method frequently used to estimate people’s willingness to pay (WTP) for goods or services not transacted in markets, applied to unique survey data from New York State to estimate the willingness to pay to reduce childhood obesity. The willingness to pay data correlate in predictable ways with respondent characteristics. The mean WTP for a 50% reduction in childhood obesity is $46.41 (95$33.45, $59.15), which implies a total WTP by New York State residents of$690.6 million (95% CI: $497.7,$880.15), which is less than that implied by previous surveys that did not use CV methods but greater than current spending on policies to reduce childhood obesity and greater than the estimated savings in external costs. The findings provide policymakers with useful information about taxpayers' support for, and preferred budget for, anti-obesity policies.

The Competitive Effects of Drug Withdrawals

In September 1997, the anti-obesity drugs Pondimin and Redux, ingredients in the popular drug combination fen-phen, were withdrawn from the market for causing potentially fatal side effects. That event provides an opportunity for studying how consumers respond to drug withdrawals. In theory, remaining drugs in the therapeutic class could enjoy competitive benefits, or suffer negative spillovers, from the withdrawal of a competing drug. Our findings suggest that, while the withdrawal of a rival drug may impose negative spillovers in the form of higher patient quit rates, on the whole non-withdrawn drugs in the same therapeutic class enjoy competitive benefits in the form of higher utilization.

Lighting Up and Slimming Down: The Effects of Body Weight and Cigarette Prices on Adolescent Smoking Initiation

This paper examines the influence of body weight, body image, and cigarette prices in determining adolescent smoking initiation. Adolescents who desire to lose weight may initiate smoking as a method of appetite control. Such behavior may undermine the goals of tobacco control policies that seek to prevent smoking initiation. Using a nationally representative panel of adolescents, we show that smoking initiation is more likely among females who are overweight, who report trying to lose weight, or who describe themselves as overweight. In contrast, neither objective nor subjective measures of weight predict smoking initiation by males. Higher cigarette prices decrease the probability of smoking initiation among males but have no impact on female smoking initiation. These gender-specific differences may help explain the mixed and inconclusive evidence of the impact of price on smoking initiation found in previous literature

Obesity as a Barrier to the Transition from Welfare to Work

This paper utilizes a rich longitudinal data set -- the Women's Employment Study (WES) to investigate whether obesity, which is common among women of low socioeconomic status, is a barrier to employment and earnings for current and former welfare recipients. We find evidence that, among current and former welfare recipients, high body weight is a greater barrier to labor market success for white women than for African-American women. Among white women, we consistently find a negative correlation between weight and labor market outcomes such as employment, hours worked, and earnings. Among African American women, weight is not correlated with employment, hours worked, or earnings, but it is correlated with the percentage of months spent on welfare between interviews. We provide suggestive evidence that these differences between white and African-American women in the relationship between body weight and labor market outcomes are partly due to differential weight-based discrimination in employment.

Maternal Employment and Childhood Obesity: A Search for Mechanisms in Time Use Data

Recent research has found that maternal employment is associated with an increased risk of childhood obesity. This paper explores mechanisms for that correlation. We estimate models of instrumental variables using a unique dataset, the American Time Use Survey, that measure the effect of maternal employment on the mother’s allocation of time to activities related to child diet and physical activity. We find that employed women spend significantly less time cooking, eating with their children, and playing with their children, and are more likely to purchase prepared foods. We find suggestive evidence that these decreases in time are only partly offset by husbands and partners. These findings offer plausible mechanisms for the association of maternal employment with childhood obesity.

Mechanisms for the Association Between Maternal Employment and Child Cognitive Development

Recent research has found that maternal employment is associated with worse child performance on tests of cognitive ability. This paper explores mechanisms for that correlation. We estimate models of instrumental variables using a unique dataset, the American Time Use Survey, that measure the effect of maternal employment on the mother's allocation of time to activities related to child cognitive development. We find that employed women spend significantly less time reading to their children, helping with homework, and in educational activities in general. We find no evidence that these decreases in time are offset by increases in time by husbands and partners. These findings offer plausible mechanisms for the association of maternal employment with child cognitive development.

Obesity, Cigarette Prices, Youth Access Laws, and Adolescent Smoking Initiation

This paper examines the role of body weight in smoking initiation by adolescents. We estimate discrete-time hazard models of the decision to initiate smoking using data from the Children of the National Longitudinal Survey of Youth, 1979 Cohort. We control for cigarette prices, tobacco control policies and socioeconomic factors. To avoid problems stemming from the endogeneity of body weight, we also estimate models using the method of instrumental variables. We find clear gender differences. Lighter girls are less likely to initiate smoking, while current weight is uncorrelated with initiation among boys. Among girls, smoking initiation is insensitive to cigarette prices, but among boys smoking initiation is negatively correlated with cigarette prices. These gender-specific differences may help explain the mixed evidence of the impact of price on smoking initiation found in previous literature.

The Importance of Objective Health Measures in Predicting Early Receipt of Social Security Benefits: The Case of Fatness

Theoretical models argue that poor health will contribute to early exit from the labor market and the decision to take early Social Security retirement benefits (Old-Age or OA benefits). However, most empirical estimates of the causal importance of health on the decision to take early OA benefits have been forced to rely on global measures such as self-rated work limitations or self-rated health. We contribute to the empirical literature by using a more objective measure of health, fatness, to predict early receipt of OA benefits. We do so by estimating the causal impact of fatness within an empirical model using the method of instrumental variables, and testing the robustness of our findings using the most common measure of fatness in the social science literature - body mass index - with what is a more theoretically appropriate measure of fatness - total body fat and percent body fat. Overall, our conclusion is that fatness and obesity are strong predictors of early receipt of OA benefits.

An Empirical Examination of Information Barriers to Trade in Insurance

This paper tests restrictions implied by the canonical theory of insurance under asymmetric information using ideal data that contains the self-perceived and actual mortality risk of individuals, as well as the price and quantity of their life insurance. We report several findings which are hard to reconcile with the canonical theory. First, we find a striking independence of self-perceived risk and the price of insurance. Second, we find strong evidence of the opposite type of non-linear pricing than predicted by theory: the theory predicts that prices rise with quantity, but we find that they fall. Third, we find that risk is negatively correlated with the quantity of insurance purchased although the theory predicts a positive correlation. Fourth, we find that a substantial fraction of individuals hold multiple insurance contracts, which casts doubt on the prediction that unit prices rise with quantity because multiple small contracts dominate a large one in such a case. Lastly, we test the accuracy of the self-perceived risk of the insured through estimating the induced profits they imply. We conclude by discussing the robustness of these results and the questions they raise for future theoretical models.