Sexual Orientation, Disclosure and Earnings

Gay/bisexual workers tend to earn less than other men. Does this occur because of discrimination or because of selection? In this paper we address this question and collect new information on workplace disclosure to separate out discrimination effects from selection effects. Using a large sample of recently graduated men in the Netherlands, we find that gay/bisexual workers earn about 3 to 4 percent less than other men. Our disclosure estimates, however, provide little evidence that the labor market discriminates against gay/bisexual workers. They rather support the selection story, most prominently observed among undisclosed gay/bisexual workers who concentrate in lower paid occupations, and earn about 5 to 9 percent less than other men.sexual orientation, disclosure, earnings, discrimination, selection

The Causal Effect of Parent’s Schooling on Children’s Schooling: A Comparison of Estimation Methods

Recent studies that aim to estimate the causal link between the education of parents and their children provide evidence that is far from conclusive. This paper explores why. There are a number of possible explanations. One is that these studies rely on different data sources, gathered in different countries at different times. Another one is that these studies use different identification strategies. Three identification strategies that are currently in use rely on: identical twins; adoptees; and instrumental variables. In this paper we apply each of these three strategies to one particular Swedish data set. The purpose is threefold: (i) explain the disparate evidence in the recent literature; (ii) learn more about the quality of each identification procedure; and (iii) get at better perspective about intergenerational effects of education. We find that the three identification strategies all produce intergenerational schooling estimates that are lower than the corresponding OLS estimates, indicating the importance of accounting for ability bias. But interestingly, when applying the three methods to the same data set, we are able to fully replicate the discrepancies across methods found in the previous literature. Our findings therefore indicate that the estimated impact of parental education on that of their child in Sweden does depend on identification, which suggests that country and cohort differences do not lie behind the observed disparities. Finally, we conclude that income is a mechanism linking parent’s and children’s schooling, that can partly explain the diverging results across methods.intergenerational mobility, education, causation, selection, identification

The Causal Effect of Parents' Schooling on Children's Schooling - A Comparison of Estimation Methods

We review the empirical literature that estimates the causal effect of parent’s schooling on child’s schooling, and conclude that estimates differ across studies. We then consider three explanations for why this is: (a) idiosyncratic differences in data sets; (b) differences in remaining biases between different identification strategies; and (c) differences across identification strategies in their ability to make out-of-sample predictions. We conclude that discrepancies in past studies can be explained by violations of identifying assumptions. Our reading of past evidence, together with an application to Swedish register data, suggests that intergenerational schooling associations are largely driven by selection. Parental schooling constitutes a large part of the parental nurture effect, but as a whole does not play a large role.intergenerational mobility, education, causation, selection, identification

Sexual Orientation, Prejudice and Segregation

This paper examines whether gay and lesbian workers sort into tolerant occupations. With information on sexual orientation, prejudice and occupational choice taken from Australian Twin Registers, we find that gays and lesbians shy away from prejudiced occupations. We show that our segregation results are largely driven by those gay and lesbian workers with disclosed identities, and robust to the inclusion of unobserved factors that are inherited and observed factors that strongly correlate with productive skills and vocational preferences. Our segregation estimates are generally large and consistent with prejudice based theories of employer and employee discrimination against gay and lesbian workers.sexual orientation, occupational choice, discrimination, segregation

Estimating the Effect of Personality on Male-Female Earnings

This paper uses the Five-Factor Model of personality structure as an organizing framework to explore the effects of personality on earnings. Using data from a longitudinal survey of American high school graduates, we find that extroversion, agreeableness, conscientiousness, neuroticism and openness to experience are rewarded/penalized significantly and differentially across genders. Antagonistic, emotionally stable and open men enjoy substantial earnings advantages over otherwise similar individuals. In case of women, the labor market appears to value conscientiousness and openness to experience. The positive returns to openness are very similar across genders, suggesting that being creative, unconventional and artistic is equally important for men and women working in all types of occupations. Moreover, we find significant gender differences in personality characteristics. Decomposition of personality-based earnings differentials into trait and parameter effects suggests that gender-atypical traits reduce the earnings advantage that individuals would otherwise enjoy under their own-sex wage structure. Overall, we find that the impact of personality on earnings is significant but not large --not trivial either-- and comparable to the impact of differences in cognitive ability

Birth Order and Human Capital Development

In this paper we examine the effect of birth order on human capital development in Ecuador. Using family fixed effects models we find positive and persistent birth order effects; earlier-born children stay behind in their human capital development from infancy to adolescence. Turning to potential mechanisms, we find that earlier-born children receive less quality time from their mothers. Additionally, they are breastfed shorter. Poverty plays a key role in explaining these birth order patterns; we observe the largest birth order effects in poor and low-educated families, accompanied with reversed birth order effects in rich and high-educated families

Birth Order and Human Capital Development: Evidence from Ecuador *

Abstract In this paper we examine the effect of birth order on human capital development in Ecuador using a large national database on beneficiaries of social assistance programs together with self-collected survey data. With family fixed effects models, we find that earlier born children stay behind in their human capital development from infancy to adolescence. If we turn to potential mechanisms, we find that earlier born children receive less time from their mothers than later born children. In addition, they are breastfed shorter. Our estimates further suggest that poverty plays an important role in explaining the observed birth order patterns; that is, we find the largest birth order effects for children in their teens who grow up in poor families, with low-educated parents

Assessing the societal benefits of river restoration using the ecosystem services approach

This paper is a contribution from the EU seventh framework funded research project REFORM (Grant Agreement 282656).The success of river restoration was estimated using the ecosystem services approach. In eight pairs of restored–unrestored reaches and floodplains across Europe, we quantified provisioning (agricultural products, wood, reed for thatching, infiltrated drinking water), regulating (flooding and drainage, nutrient retention, carbon sequestration) and cultural (recreational hunting and fishing, kayaking, biodiversity conservation, appreciation of scenic landscapes) services for separate habitats within each reach, and summed these to annual economic value normalized per reach area. We used locally available data and literature, did surveys among inhabitants and visitors, and used a range of economic methods (market value, shadow price, replacement cost, avoided damage, willingness-to-pay survey, choice experiment) to provide final monetary service estimates. Total ecosystem service value was significantly increased in the restored reaches (difference 1400 ± 600 € ha−1 year−1; 2500 − 1100, p = 0.03, paired t test). Removal of one extreme case did not affect this outcome. We analysed the relation between services delivered and with floodplain and catchment characteristics after reducing these 23 variables to four principal components explaining 80% of the variance. Cultural and regulating services correlated positively with human population density, cattle density and agricultural N surplus in the catchment, but not with the fraction of arable land or forest, floodplain slope, mean river discharge or GDP. Our interpretation is that landscape appreciation and flood risk alleviation are a function of human population density, but not wealth, in areas where dairy farming is the prime form of agriculture.PostprintPeer reviewe