The Effects of Near and Actual Parental Divorce on Student Achievement and Misbehavior

It is well-documented that children whose parents divorced experience worse outcomes than children from two-parent families. However, data and methodological limitations have made it difficult to know whether declines were evident prior to the divorce or whether the declines were due to the unobserved time-varying factors that caused the parents to file for divorce. This paper addresses these questions by linking public records on divorce to child-level data on reading and mathematics composite test scores and school discipline records. Difference-in-difference estimates reveal steady declines in achievement and steady increases in misbehavior after parental divorce relative to children from two-parent families. These declines capture the causal effect of parental divorce under the assumption that the only factor that changed the trajectories of children at the time of divorce was the parental divorce. However, I find similar negative trends in the performance of children whose parents filed for divorce but ultimately chose to remain married. This suggests that post-divorce declines in children’s performance are likely due to the factors that caused the parents to divorce rather than to the legal dissolution of marriage itself.

Bank privatization, finance, and growth

This paper examines whether privatizing state-owned banks improves finance and economic growth. To do so, we exploit regional banking variations in Russia induced by the idiosyncratic creation of "specialized banks" in the last years of the Soviet Union (1988-91) that were subsequently privatized. Starting in 1999 private banks including surviving spetsbanks emerged as an important source of external finance for private firms and households. We document that the regional concentration of spetsbanks in the early years of the Russian federation is orthogonal to economic fundamentals that are related to growth after the emergence of bank finance. Results indicate that while privatized banking increased lending significantly, it did not increase economic growth. However, privatization did increase growth when banks retained fewer political connections and when regional property rights were better protected, highlighting the importance of both factors

Lucky in Life, Unlucky in Love? The Effect of Random Income Shocks on Marriage and Divorce

Economists have long been interested in the extent to which economic resources affect decisions to marry and divorce. For married couples, an increase in resources can either provide a stabilization effect or, alternatively, can enable divorce by allowing the couple to overcome costs associated with divorce. Similarly, while economic theory predicts that an increase in income makes an unmarried person more attractive to potential marriage partners, it may also make single life more attractive. However, answering these questions empirically has been difficult due to a lack of exogenous income shocks. We overcome this problem by exploiting the randomness of the Florida Lottery and comparing recipients of large prizes to those of small prizes. Results indicate that while positive income shocks of $25,000 to$50,000 do not cause statistically significant or economically meaningful changes in divorce rates, single women are less likely to marry as a result of the additional income.

Externalities in the Classroom: How Children Exposed to Domestic Violence Affect Everyone

There is widespread perception that externalities from troubled children are significant, though measuring them is difficult due to data and methodological limitations. We estimate the negative spillovers caused by children from troubled families by exploiting a unique data set in which children’s school records are matched to domestic violence cases. We find that children from troubled families significantly decrease their peers’ reading and math test scores and increase misbehavior in the classroom. The achievement spillovers are robust to within-family differences and controlling for school-by-year specific shocks, providing strong evidence that neither selection nor common shocks are driving the results.

The Ticket to Easy Street? The Financial Consequences of Winning the Lottery

A fundamental question faced by policymakers is how best to help individuals who are in financial trouble. This paper examines the consequences of the most basic approach: giving people large cash transfers. To determine whether this prevents or merely postpones bankruptcy, we exploit a unique dataset of Florida Lottery winners linked to bankruptcy records. Results show that although recipients of $50,000 to$150,000 are 50 percent less likely to file for bankruptcy in the two years after winning relative to small winners, they are equally more likely to file three to five years afterward. Furthermore, bankruptcy records indicate that even though the median winner of a large cash prize could have paid off all of his unsecured debt or increased equity in new or existing assets, he chose not to do either. Consequently, although we cannot be sure other recipients of financial assistance would react in the same way lottery players did, our results do suggest that some skepticism regarding the long-term effect of cash transfers may be warranted.

The mass-L_x relation for moderate luminosity X-ray clusters

We present measurements of the masses of a sample of 25 moderate X-ray luminosity clusters of galaxies from the 160 square degree ROSAT survey. The masses were obtained from a weak lensing analysis of deep F814W images obtained using the Advanced Camera for Surveys (ACS). We present an accurate empirical correction for the effect of charge transfer (in)efficiency on the shapes of faint galaxies. A significant lensing signal is detected around most of the clusters. The lensing mass correlates tightly with the cluster richness. We measured the intrinsic scatter in the scaling relation between M_2500 and L_X and find the best fit power law slope and normalisation to be alpha=0.68+-0.07 and M_X=(1.2+-0.12)10^14M_sun (for L_X=2x10^44 erg/s). These results agree well with a number of recent studies, but the normalisation is lower compared to the study of Rykoff et al. (2008b). One explanation for this difference may be the fact that (sub)structures projected along the line-of-sight boost both the galaxy counts and the lensing mass. Such superpositions lead to an increased mass at a given L_X when clusters are binned by richness.Comment: accepted for publication in the Astrophysical Journal; 15 pages, 11 figure

Externalities in the Classroom: How Children Exposed to Domestic Violence Affect Everyone’s Kids

There is widespread perception that externalities from troubled children are significant, though measuring them is difficult due to data and methodological limitations. We estimate the negative spillovers caused by children from troubled families by exploiting a unique data set in which children’s school records are matched to domestic violence cases. We find that children from troubled families significantly decrease their peers’ reading and math test scores and increase misbehavior in the classroom. The achievement spillovers are robust to within-family differences and when controlling for school-by-year effects, providing strong evidence that neither selection nor common shocks are driving the results

Externalities in the Classroom: How Children Exposed to Domestic Violence Affect Everyone's Kids

It is estimated that between ten and twenty percent of children in the United States are exposed to domestic violence annually. While much is known about the impact of domestic violence and other family problems on children within the home, little is known regarding the extent to which these problems spill over to children outside the family. The widespread perception among parents and school officials is that these externalities are significant, though measuring them is difficult due to data and methodological limitations. We estimate the negative spillovers caused by children from troubled families by exploiting a unique data set in which children's school records are matched to domestic violence cases filed by their parent. To overcome selection bias, we identify the effects using the idiosyncratic variation in peers from troubled families within the same school and grade over time. We find that children from troubled families significantly decrease their peers' reading and math test scores and significantly increase misbehavior of others in the classroom. The effects are heterogeneous across income, race, and gender and appear to work primarily through troubled boys. The results are robust to within-sibling differences and we find no evidence that non-random selection is driving the results.