Parental Employment and Child Cognitive Development

This study investigates the relationship between parental employment and child cognitive development using data from multiple years of the National Longitudinal Survey of Youth. Maternal labor supply during the first three years of the child's life is predicted to have a small negative effect on the verbal ability of 3 and 4 year olds and a substantial detrimental impact on the reading and math achievement of 5 and 6 year olds. Working during the second and third years appears to have less favorable or more deleterious consequences when the mother is also employed in the first year. The results are robust to the inclusion of controls for day care arrangements or paternal job-holding and there is some indication that early employment may be particularly costly for children in traditional' two-parent families. Finally, the data suggest that paternal and maternal employment have qualitatively similar effects, hinting at the importance of time investments by fathers. The overall conclusion is that previous research may have provided an overly optimistic assessment of the effects of parental employment on child cognitive development.

How Well Do Parents With Young Children Combine Work and Family Life

This study examines trends in labor force involvement, household structure, and some activities that may complicate the efforts of parents with young children to balance work and family life. Next I consider whether employer policies mitigate or exacerbate these difficulties and, since the policies adopted in the United States diverge dramatically from those in many other industrialized countries, provide some international comparisons before speculating on possible sources and effects of the differences.

Healthy Living in Hard Times

Using microdata for adults from the 1987-2000 years of the Behavioral Risk Factor Surveillance System, I show that smoking and height-adjusted weight decline during temporary economic downturns while leisure-time physical activity rises. The drop in tobacco use occurs disproportionately among heavy smokers, the fall in body weight among the severely obese, and the increase in exercise among those who were completely inactive. Declining work hours may provide one reason why behaviors become healthier when the economy weakens, possibly by increasing the non-market time available for lifestyle investments. Conversely, there is little evidence that reductions in income play an important role. The overall conclusion is that changes in behaviors supply one mechanism for the procyclical variation in mortality and morbidity observed in recent research.

Macroeconomic Conditions, Health and Mortality

Although health is conventionally believed to deteriorate during macroeconomic downturns, the empirical evidence supporting this view is quite weak and comes from studies containing methodological shortcomings that are difficult to remedy. Recent research that better controls for many sources of omitted variables bias instead suggests that mortality decreases and physical health improves when the economy temporarily weakens. This partially reflects reductions in external sources of death, such as traffic fatalities and other accidents, but changes in lifestyles and health behaviors are also likely to play a role. This paper summarizes our current understanding of how health is affected by macroeconomic fluctuations and describes potential mechanisms for the effects.

Long-Term Effects of Early Childhood Care and Education

This paper critically reviews what we know about the long-term effects of parental leave and early childhood education programs. We find only limited evidence that expansions of parental leave durations improved long-run educational or labor market outcomes of the children whose parents were affected by them, perhaps because benefits are hard to measure or confined to sub-groups, or because leave entitlements were sufficiently long, even before recent extensions, to yield most potential benefits. By contrast, expansions of early education generally yield benefits at school entry, adolescence, and for adults, particularly for disadvantaged children; however the gains may be less pronounced when high quality subsidized child care was available prior to the program expansion or when subsidies increased the use of low quality care.parental leave, early childhood care and education

Does Drinking Really Decrease in Bad Times?

This paper investigates the relationship between macroeconomic conditions, alcohol use, and drinking problems using individual-level data from the 1987-1999 years of the Behavioral Risk Factor Surveillance System. We confirm the procyclical variation in overall drinking identified in previous research using aggregate sales data and show that this largely results from changes in consumption among existing drinkers, rather than movements into or out of drinking. Moreover, the decrease in alcohol use occurring during bad economic times is concentrated among heavy consumers, with light drinking actually increasing in these periods. We find no evidence that the decline in overall drinking masks a rise in alcohol use for persons becoming unemployed during contractions, suggesting that any stress-induced increases in consumption are more than offset by reductions resulting from changes in economic factors such as lower incomes.

The Cost of Caring for Young Children

This study examines the "cost burden" of child care, defined as day care expenses divided by after-tax income. Data are from the wave 10 core and child care topical modules to the 1996 Survey of Income and Program Participation. We estimate that the average child under six years of age lives in a family that spends 4.9 percent of after-tax income on day care. However, this conceals wide variation: 63 percent of such children reside in families with no child care expenses and 10 percent are in families where the cost burden exceeds 16 percent. The burden is typically greater in single-parent than married-couple families but is not systematically related to a measure of socioeconomic status that we construct. One reason for this is that disadvantaged families use lower cost modes and pay less per hour for given types of care. The cost burden would be much less equal without low cost (presumably subsidized) formal care focused on needy families, as well as government tax and transfer policies that redistribute income towards them.

Creativity and the Family Tree: Human Capital Endowments and the Propensity of Entrepreneurs to Patent

In this paper we show that the patenting behavior of creative entrepreneurs is correlated with the patenting behavior of their fathers, which we refer to as a source of the entrepreneurs' human capital endowments. Our argument for this relationship follows from established theories of developmental creativity, and our empirical analysis is based on survey data collected from MIT's Technology Review winners.patents, entrepreneurship, human capital endowments