How responsive is investment in schooling to changes in redistributive policies and in returns?

This paper uses an unusual pay reform to test the responsiveness of investment in schooling to changes in redistribution schemes that increase the rate of return to education. We exploit an episode where different Israeli kibbutzim shifted from equal sharing to productivity-based wages in different years and find that students in kibbutzim that reformed earlier invested more in high school education. This effect is stronger for males and is largely driven by students whose parents have lower levels of education. We also show that, in the long run, students in kibbutzim that reformed earlier were more likely to complete post-high school academic colleges. Our findings support the prediction that education is highly responsive to changes in the redistribution policy, especially for students from weaker backgrounds

Book Translations As Idea Flows: The Effects of the Collapse of Communism on the Diffusion of Knowledge

We use book translations as a new measure of international idea flows and study the effects of Communism’s collapse in Eastern Europe on these flows. Using novel data on 800,000 translations, we show that while translations between Communist languages decreased by two thirds with the collapse, Western-to-Communist translations increased by a factor of seven and reached Western levels. Convergence was full in economically-beneficial fields such as sciences and only partial in culturally-beneficial fields such as history. The effects were larger for more Western-oriented countries. These findings help us understand how institutions shape the international diffusion of knowledge.international flows of ideas, international transfer of knowledge, globalization, book translations, Communism, transition economies

Is Hanukkah responsive to Christmas?

We study the extent to which religious activity responds to the presence and activity of other religions. Specifcally, we employ individual-level survey data and county-level expenditure data to examine the extent to which Hanukkah celebration among U.S. Jews is driven by the presence of Christmas. We find that: (1) Jews with children at home are more likely to celebrate Hanukkah than Jews without children. (2) The effect of having children on Hanukkah celebrations is higher for reform Jews than for orthodox Jews; and, it is higher for Jews who feel a stronger sense of belonging to Judaism. (3) Jewish-related expenditures in Hanukkah are higher in counties with lower share of Jews. These findings are consistent with the hypothesis that Jews increase religious activity during Hanukkah because of the presence of Christmas, and this response is primarily driven by the presence of children at home. One underlying motivator might be that Jewish parents in the U.S. celebrate Hanukkah more intensively so heir children do not feel left out, and/or because they are concerned that their children will convert or intermarry.Religions, Hanukkah, Identity

Inside the Black Box: Partnerships in Rio de Janeiro, 1870-1891

We use newly-constructed individual-level data on partnership contracts in late nineteenth century Rio de Janeiro to examine differences between limited and unlimited liability firms and partners, and to assess the impact of a major institutional reform that facilitated the formation of joint stock companies on the terms of partnership contracts. Contrary to expectation, we find that most unlimited partners contributed capital and received profit shares, and most non-managing limited partners received salaries. Limited partners contributed more capital and received lower salaries and profit shares than their unlimited partners; unlimited partners in limited firms received more favorable terms than those in unlimited firms. Finally, we find suggestive evidence that the reforms reduced the extent of income smoothing for the limited partner and increased the average quality of unlimited liability partners in limited liability firms. These findings highlight the role of incentives and the desire for income smoothing in shaping contract terms.Partnerships, Brazil

Marrying Up: The Role of Sex Ratio in Assortative Matching

We investigate the effect of a change in the sex ratio on assortative matching in the marriage market using a large negative exogenous shock to the French male population due to WWI casualties. We analyze a novel data set that links marriage-level data to both French censuses of population and regional data on military mortality. We instrument the potentially endogenous sex ratio with military mortality, which exhibits exogenous geographic variation. We find that men married women of higher social class than themselves (married up) more in regions that experienced a larger decrease in the sex ratio due to higher military mortality. A decrease in the sex ratio from one man for every woman to 0.90 men for every woman increased the probability that men married up by 8.2 percentage points. These findings shed light on individuals’ preferences for spouses. Rather than preferring to marry spouses with similar characteristics, individuals seem to prefer to marry higher-class spouses, but cannot do so when the sex ratio is balanced.Marriage, sex ratio, assortative matching, social classes.

Marrying Up: The Role of Sex Ratio in Assortative Matching

We assemble a novel dataset to study the impact of male scarcity on marital assortative matching and other marriage market outcomes using the large shock that WWI caused to the number of French men. Using a difference-in-differences approach, we find that post war in regions with higher mortality rates: men were less likely to marry women of lower social classes; men were more likely and women less likely to marry; out-of-wedlock births increased; divorce rates decreased; and the age gap decreased. These findings are consistent with men improving their position in the marriage market as they become scarcer.

Europe's Tired, Poor, Huddled Masses: Self-Selection and Economic Outcomes in the Age of Mass Migration

The Age of Mass Migration (1850-1913) was among the largest migration episodes in history. Unlike today, the United States maintained an open border in this era. We compile a novel dataset of Norway-to-US migrants and estimate the return to migration while accounting for migrant selection. Our first method compares migrants to their brothers who remained in Norway; our second exploits the fact that, under primogeniture, older sons in land-owning families were less likely to migrate. We find that these migrants, unhindered by entry restrictions, were negatively selected from the sending population, and that the return to migration was relatively low.Mirgation, Selection

Marrying Up: The Role of Sex Ratio in Assortative Matching

By observing the large negative exogenous shock to the French male population from to WWI casualties, we study the effect of a change in the sex ratio on marital assortative matching by social class. First, we analyzed a novel data set that links marriage-level to French population and military mortality. Then, we calculated the sex ratio in a region with military mortality, which exhibits exogenous geographic variation. Ultiamtely, we found that men married women of higher social class than themselves more often in regions that experienced a larger decrease in the sex ratio. A decrease in the sex ratio of man to woman from 1.00 to 0.90 increased the probability that men married up by 8 percent. These findings provide insight into individuals’ preferences for spouses. Men appear to prefer to marry higher-class spouses, but cannot do so when the sex ratio is balanced.Marriage, sex ratio, assortative matching, social classes

How Responsive is Investment in Schooling to Changes in Redistribution Policies and in Returns

This paper uses an unusual pay reform to test the responsiveness of investment in schooling to changes in redistribution schemes that increase the rate of return to education. We exploit an episode where different Israeli kibbutzim shifted from equal sharing to productivity-based wages in different years and find that students in kibbutzim that reformed earlier invested more in education. This effect is stronger for males and is mainly driven by students whose parents have lower levels of education. Our findings support the prediction that education is highly responsive to changes in the redistribution policy, especially for students from weaker backgrounds.

Automated linking of historical data

The recent digitization of complete count census data is an extraordinary opportunity for social scientists to create large longitudinal datasets by linking individuals from one census to another or from other sources to the census. We evaluate different automated methods for record linkage, performing a series of comparisons across methods and against hand linking. We have three main findings that lead us to conclude that automated methods perform well. First, a number of automated methods generate very low (less than 5%) false positive rates. The automated methods trace out a frontier illustrating the tradeoff between the false positive rate and the (true) match rate. Relative to more conservative automated algorithms, humans tend to link more observations but at a cost of higher rates of false positives. Second, when human linkers and algorithms use the same linking variables, there is relatively little disagreement between them. Third, across a number of plausible analyses, coefficient estimates and parameters of interest are very similar when using linked samples based on each of the different automated methods. We provide code and Stata commands to implement the various automated methods.Accepted manuscriptFirst author draf