The case for making public policy evaluations public

This brief sets out the case for making public policy evaluations public. It first reviews the various challenges associated with impact evaluations, paying particular attention to the unique hurdles involved in evaluating Indigenous policy. Lessons learned from clinical trials registries in medical research are then used to argue that Australian economic and social policy evaluations could be improved by making them public

Leaving Home: What Economics Has to Say about the Living Arrangements of Young Australians

Like their counterparts elsewhere, more young Australians than ever are delaying the move to establish residential independence from their parents. This paper reviews the developing economics literature surrounding young people’s decisions to continue living in their parents’ homes in order to begin to assess the causes and consequences of this decision. In particular, co-residence with parents appears to be an important form of intergenerational support for young adults. It is important to understand the extent to which young people rely on this form of support as they complete their education, enter the labour market, and establish themselves as independent adults. Specific attention is paid to the ways in which Australian income-support, education, and housing policies may influence these patterns.Economics of the family, Household decision-making

“High”-school: the relationship between early marijuana use and educational outcomes

Abstract: We use unique survey data linked to nearly a decade of administrative welfare data to examine the relationship between early marijuana use (at age 14 or younger) and young people’s educational outcomes. We find evidence that early marijuana use is related to educational penalties that are compounded by high-intensity use and are larger for young people living in families with a history of welfare receipt. The relationships between marijuana use and both high school completion and achieving a university entrance score appear to stem from selectivity into the use of marijuana. In contrast, early marijuana use is associated with significantly lower university entrance score for those who obtain one and we provide evidence that this effect is unlikely to be driven by selection. Collectively, these findings point to a more nuanced view of the relationship between adolescent marijuana use and educational outcomes than is suggested by the existing literature. Authored by Deborah A. Cobb-Clark, Sonja C. Kassenboehmer, Trinh Le, Duncan McVicar and Rong Zhang

Noncognitive Skills, Occupational Attainment, and Relative Wages

This paper examines whether men's and women's noncognitive skills influence their occupational attainment and, if so, whether this contributes to the disparity in their relative wages. We find that noncognitive skills have a substantial effect on the probability of employment in many, though not all, occupations in ways that differ by gender. Consequently, men and women with similar noncognitive skills enter occupations at very different rates. Women, however, have lower wages on average not because they work in different occupations than men do, but rather because they earn less than their male colleagues employed in the same occupation. On balance, women's noncognitive skills give them a slight wage advantage. Finally, we find that accounting for the endogeneity of occupational attainment more than halves the proportion of the overall gender wage gap that is unexplained.noncognitve skills, personality, occupation, gender wage gap, decomposition

The Sexual Harassment of Female Active-Duty Personnel: Effects on Job Satisfaction and Intentions to Remain in the Military

This paper examines the relationship between sexual harassment and the job satisfaction and intended turnover of active-duty women in the U.S. military using unique data from a survey of the incidence of unwanted gender-related behavior conducted by the U.S. Department of Defense. Overall, 70.9 percent of active-duty women reported experiencing some type of sexually harassing behavior in the 12 months prior to the survey. Using single-equation probit models, we find that experiencing a sexually harassing behavior is associated with reduced job satisfaction and heightened intentions to leave the military. However, bivariate probit results indicate that failing to control for unobserved personality traits causes single-equation estimates of the effect of the sexually harassing behavior to be overstated. Similarly, including women’s views about whether or not they have in fact been sexually harassed directly into the single equation model reduces the estimated effect of the sexually harassing behavior itself on job satisfaction by almost a half while virtually eliminating it for intentions to leave the military. Finally, women who view their experiences as sexual harassment suffer additional negative consequences over and above those associated with the behavior itself.job satisfaction; sexual harassment; military employment

The Portfolio Choices of Hispanic Couples

This paper analyzes the portfolio allocations of couple-headed, Hispanic families using Survey of Income and Program Participation (SIPP) data. Our results reveal that Hispanic couples as a group are less wealthy than otherwise similar white couples, although there is substantial variation across Hispanic-origin groups. Much of the disparity in portfolio choices of Hispanic relative to whites appears to stem from these lower wealth levels. Accounting for these wealth disparities, Hispanic couples hold less financial wealth, but more real estate and business equity than do white couples.portfolio choices; Hispanic

Portfolio Allocation in the Face of a Means-Tested Public Pension

Is there evidence that households adjust their asset portfolios just prior to retirement in response to a means-tested public pension? We address this question by estimating a system of asset equations constrained to add up to net worth. We find little evidence that in 2006 healthy households or couples responded to the incentives embedded in the means test determining pension eligibility by reallocating their assets. While there are some significant differences in asset portfolios associated with being near the income threshold, being of pensionable age, and being in poor health these differences are often only marginally significant, are not robust across time, and are not clearly consistent with the incentives inherent in the pension eligibility rules. In 2006, any behavioral response to the means test seems to occur among single pensioners in poor health. Comparison with 2002 results suggests the incentives to reallocate assets may have weakened over time.asset portfolios, means testing, public pension, household wealth

The Asset Portfolios of Native-born and Foreign-born Households

This paper analyses the net worth and asset portfolios of native- and foreign-born Australian families using HILDA (wave 2) data. Specifically, we estimate a system of asset equations with an adding-up constraint imposed to control for variation in households’ total net worth. Our results indicate that after accounting for differences in human capital and income levels, single immigrants have a wealth advantage of almost $185,000 relative to single native-born individuals. Although the wealth gap between mixed and native-born couples is not statistically significant, immigrant-only couples have approximately$150,000 less wealth on average than native-born couples. Relative to equally wealthy native-born couples, immigrant-only couples hold substantially more of their wealth in their homes and less in the form of vehicles and financial assets. mixed couples, on the other hand, allocate their wealth across assets in the same way as nativeborn couples.Wealth, immigrants, housing

The Wealth of Mexican Americans

This paper analyzes the sources of disparities in the relative wealth position of Mexican Americans. Results reveal that wealth gaps are in large part not the result of differences in conditional expected wealth functions. Similarly, income differentials are important, but do not play the primary role in explaining the gap in median net worth. As much or more of Mexican Americans' wealth disadvantage is attributable to the fact that these families have more young children and heads who are younger. Furthermore, Mexican Americans' low educational attainment has a direct effect in producing a wealth gap relative to other ethnic groups (even after differences in income are taken into account) though education does not significantly affect the nativity wealth gap. Finally, geographic concentration is generally unimportant, but does contribute to narrowing the wealth gap between wealthy Mexican Americans and their white and black counterparts.wealth; Mexican American

The Effect of Community-Level Socio-Economic Conditions on Threatening Racial Encounters

This paper contributes to the emerging literature on racial and ethnic tension by analyzing the relationship between local socio-economic conditions and the propensity for outsiders to have threatening racial encounters with insiders. We use unique data for a sample of active-duty Army personnel that allow us to first, link personnel to the local communities in which they are located and second, to avoid any selectivity bias associated with endogenous community selection. We find at best mixed evidence that racial hostility is related to economic vulnerability within a community and no evidence that racial conflict can be linked the level of public expenditure. Crime rates, however, are closely related to the incidence of threatening racial encounters and while a community’s demographic profile is also clearly linked to racial tension, these relationships cannot be easily generalized across minority groups or type of threatening racial encounter.racial and ethnic tension; U.S. military; economics of minorities