Mother's education and birth weight

Low birth weight has considerable short and long-term consequences and leads to high costs to the individual and society even in a developed economy. Low birth weight is partially a consequence of choices made by the mother pre- and during pregnancy. Thus policies affecting these choices could have large returns. Using British data, maternal education is found to be positively correlated with birth weight. We identify a causal effect of education using the 1947 reform of the minimum school leaving age. Change in compulsory school leaving age has been previously used as an instrument, but has been criticised for mostly picking up time trends. Here, we demonstrate that the policy effects differ by social background and hence provide identification across cohorts but also within cohort. We find modest but heterogenous positive effects of maternal education on birth weight with an increase from the baseline weight ranging from 2% to 6%.Returns to education, health

Can education compensate for low ability? Evidence from British data

This paper uses cross section data to investigate whether the returns to education vary with the level of ability. Using a measure of cognitive ability based on tests taken at ages 7 and 11 we find, unlike most of the existing literature, clear evidence that the return to schooling is lower for those with higher ability indicating that education can act as a substitute for observed ability. We also estimate quantile regression functions to examine how the return to schooling varies across the conditional distribution of earnings. The results show that the return is lower for higher quantiles, suggesting that education is also a substitute for unobserved ability.Earnings, education, ability

The Economic Consequences of being Left-handed - Some Sinister Results

This paper provides the first estimates of the effects of handedness on hourly earnings using data on a sample of 33 year olds in the United Kingdom. Augmenting a conventional earnings equation with indicators of left handedness shows there is a well determined positive effect on male earnings with non-manual workers enjoying a slightly larger premium once we allow for non random selection into occupation. This is not consistent with the view that left-handers in general are in some sense handicapped either being innately or through experiencing a world geared towards right-handers. It is consistent with the popular notion of left- handers having particular talents such as enhanced creativity. The results for females however reveal the opposite, left-handed females are paid significantly less.earnings, brain, left-handed

The economic consequences of being left-handed: some sinister results

This paper provides the first estimates of the effects of handedness on hourly earnings. Augmenting a conventional earnings equation with an indicator of left handedness shows there is a well determined positive effect on male earnings with non-manual workers enjoying a slightly larger premium. These results are inconsistent with the view that left-handers in general are in some sense handicapped either innately or through experiencing a world geared towards right-handers. The results for females however reveal the opposite, left-handed females are paid significantly less. This is consistent with some psychological evidence which suggests that left-hander males have particular talents such as enhanced creativity and some evidence on brain morphology which also suggests advantages for left-handed males.Earnings, brain, left-handed, laterality

Alternative Instruments for Institutional Quality and the Effect of European Settlements on Economic Development

This paper uses cross section data to investigate whether education and ability are substitutes or complements in the determination of earnings. Using a measure of cognitive ability based on tests taken at ages 7 and 11 we find, unlike most of the existing literature, clear evidence that the return to schooling is lower for those with higher ability indicating that education can act as a substitute for observed ability. We also estimate quantile regression functions to examine how the return to schooling varies across the conditional distribution of earnings. The results show that the return is lower for higher quantiles, suggesting that education is also a substitute for unobserved ability.earnings, education, ability

John Mansfield Thomson

On 12 September 1999, John Mansfield Thomson, founding and most recent editor of New Zealand Studies, died after serious illness. Vincent O'Sullivan, Director of the Stout Research Centre, delivered this eulogy at the memorial service in Old St Paul's, Wellington, on 15 September

Education, earnings and skills: a multi-country comparison

This paper uses the measures of basic skills (or functional literacy) in the International Adult Literacy Survey to examine the impact of education and basic skills on earnings across a large number of countries. We show that the estimated return to formal education is sensitive to the inclusion of these measures: excluding them biases the return to education upwards in many countries to a significant degree, usually 1 or 2 percentage points. In almost all countries, the test scores have a well-determined effect on earnings although there is considerable variation in the size of the effect. The highest returns to skills tend to be in English speaking countries. Comparing results across countries, the returns to education and the returns to basic skills are not correlated. The evidence suggests that there is considerable benefit in many countries for policy intervention to increase the skill levels of workers. This should not just be directed at dealing with low-skilled individuals – there are gains across the skills distribution.

Legal protection of investors, corporate governance, and investable premia in emerging markets

We examine the interaction between the legal protection of investors, corporate governance within firms, institutional development between countries, and investable premia in emerging markets. In a multi country setting and using a novel dataset we find that better-governed firms experience significantly greater stock price increases upon equity market liberalization. We look to see whether well-governed firms in poorly governed countries enjoy an investability premium as measured by Tobin’s q. We find they do. Investors look beyond the seemingly weak country-level governance structures, and focus on corporate governance.Investability, Corporate Governance, Tobin's q, Emerging Markets

The effect of military service on earnings in Britain

I found no effect of military service on earnings in Britain using OLS. Using the abolition of conscription as an IV, I found that ex-military personnel earn about 20% less than comparable non-veterans. Men from wealthier backgrounds were penalized the most. Using OLS, there was no difference in earnings between former soldiers and those who never served. However, former air force and navy personnel earned more compared to those who did not serve in the military. Using IV to model for selection into the different military branches, there were no statistically significant effects on earning