This paper uses administrative data from the University of Texas-Austin to examine whether high school peer networks at college entry influence college achievement, measured by grade point average (GPA) and persistence. For each freshman cohort from 1993 through 2003 we calculate the number and ethnic makeup of college freshmen from each Texas high school, which we use as a proxy for freshmen “peer network.” Empirical specifications include high school fixed effects to control for unobservable differences across schools that influence both college enrollment behavior and academic performance. Using an IV/fixed effects strategy that exploits the introduction and expansion of the Longhorn Scholars Program, which targeted low income schools with low college traditions we also evaluate whether “marginal” increases in peer networks influence college achievement. Results show that students with larger peer network upon entering college perform better than their counterparts with smaller networks at the beginning of their freshman year. Average effects of network size on college achievement are small, but a marginal increase in the size of same-race peer networks raises GPA by 0.1 point. We also find some suggestive evidence that minority students with large high school peer networks reap larger academic benefits than their white counterparts.
Research
ALL RESEARCH
Homebuying in New Orleans before and after Katrina: Patterns by space, race, and income
Dan Immergluck, Yun Sang Lee
Natural disasters can conceivably have significant impacts on the “neighborhood sorting” of different racial or economic groups across intrametropolitan space. Using Home Mortgage Disclosure Act data we examine mortgage-financed homebuying activity within the New Orleans MSA before and after Hurricane Katrina. We find that, while the total amount of homebuying in the 7-parish New Orleans MSA was relatively unchanged between 2004 and 2006, homebuying in the city declined significantly, and declined most in places experiencing severe storm damage. We also find that after Hurricane Katrina, the proportion of homebuyers in the region and the city who were African-American or low-income declined. Finally, we find that segregation levels of African-American and lower-income homebuyers declined in the year following Katrina. However, some of this effect is likely due to smaller overall numbers of lower-income and African-American buyers in the region.
Using data from the 2000 Census, this study examines the relationship between household living arrangements and economic resources among Mexican immigrant families with children. I model separately the relationships between family income and household structure and proportion of total household income contributed and household structure. The results show that families that coreside with extended kin and non-kin have higher incomes, all else equal, relative to those that reside in single-family households. In addition, Mexican immigrant families that reside in extendedhousehold living arrangements contribute about three quarters of total household income. While families may gain some economic efficiency through extended household living arrangements, the results are consistent with expectations that Mexican immigrant families expend scarce resources in support of the migration and settlement of extended kin. The Mexican delayed assimilation thesis suggests such support inadvertently diverts resources away from immigrant children and slows intergenerational progress.
How older households manage food insecurity with food production activities
Joshua Berning, Jude Bayham, Alessandro Bonanno, Rebecca Cleary
Household food insecurity is a concern in the U.S. given the negative effects associated with food insecurity. An interesting finding is that elderly households tend to be more food secure than younger households, even though many are on a fixed income. A relevant question is what might elderly households be doing that is resulting in greater food security? One potential explanation is that in retirement, elderly households can invest in more time-intensive activities that provide greater food security. In this study, we combine time-use diaries with food security surveys to examine whether time spent on food production is associated with lower levels of food insecurity for elderly households. The data show that time spent in meal preparation and eating is increasing with older age cohorts. At the same time, food insecurity is declining steadily with older households. Grocery shopping and non-grocery food shopping do not show any relevant trends. We also compare food insecurity of households that are pre and post retirement eligible to see if food production explains the gap in food insecurity between these household types. We find that time spent on meal preparation and time spent eating explain some of the gap in food insecurity between these households and the results vary by marital status. Finally, we specify a two-stage model to estimate whether time spent on food production causes greater food security. Our specification fails to identify a strong relationship. One potential explanation is that older households in our sample generate bias as we only observe households that still live independently and alone.
How well does SNAP protect families against the risk of food insecurity and poor health during economic downturns?
Thomas DeLeire, Bradley Hardy, Jay Bhattacharya
Our research project addressed the question of how well SNAP and the social safety net protects families against the risk of food insecurity and poor health during economic downturns. Previous research has documented the relationship between reductions in family incomes and food insufficiency and has examined the effects of resources that mitigate the effects of income volatility. The U.S. social safety net, including SNAP, exists to mitigate the deleterious effects of swings in family income, particularly among low- and moderate-income households. This work compares outcomes for lower income families and higher income families in response to economic downturns. To the extent that nutritional, food security and food-related health outcomes are unaffected by economic downturns, there is implicit evidence that the social safety net is working to protect economically disadvantaged families.
Identifying the effect of WIC on very low food security among infants and children
Brent Kreider, John Pepper, Manan Roy
The Women, Infants, and Children Program (WIC) is considered a crucial component of the social safety net in the United States, yet there is limited supporting evidence on the effects of WIC on the nutritional well-being and food security of infants and young children. Two key identification problems have been especially difficult to address. First, the decision to take up WIC is endogenous as households are not randomly assigned to the program; recipients are likely to differ from nonrecipients in unobserved ways (e.g., prior health) that are related to associated outcomes. Second, survey respondents often fail to report receiving public assistance, and the existing literature has uncovered substantial degrees of systematic misclassification of WIC participation. Using data from the National Health and Nutrition Examination Survey (NHANES), we apply recently developed partial identification methodologies to jointly account for these two identification problems in a single framework. Under relatively weak assumptions, we find that WIC reduces the prevalence of child food insecurity by at least 5.5 percentage points and very low food security by at least 1.5 percentage points.
If you don't build it: Mexican mobility following the U.S. housing bust
Brian Cadena, Brian Kovak
This paper demonstrates the importance of earnings-sensitive migration in response to local variation in labor demand. We use geographic variation in the depth of the housing bust to examine its effects on the migration of natives and Mexican-born individuals in the U.S. We find a strong effect of the housing bust on the location choices of Mexicans, with movement of Mexican population away from U.S. states facing the largest declines in construction and movement toward U.S. states facing smaller declines. This effect operated primarily through interstate migration of Mexicans previously residing in the U.S. and, to a lesser extent, through slower immigration rates from Mexico in states with larger housing declines. There is no evidence that return migration to Mexico played an important role in immigrants' migration response. We also find no impact of the housing bust on natives' location choices. We interpret these results as the causal impact of the housing bust on migration after confirming that they are robust to controls for immigrant diffusion and a pre-housing-bust false experiment.
Impact of health reform on health insurance status among persons who use opioids in eastern Kentucky: A prospective cohort analysis
Hannah Knudsen, Michelle Lofwall, Sharon Walsh, Jennifer Havens
Health insurance improves health and reduces mortality. Expanding insurance is a central feature of the Affordable Care Act (ACA). Persons who use drugs (PWUDs) have historically been at high risk of being uninsured. It is unknown if Appalachian PWUDs, who live in an extremely economically distressed region, are more likely to be insured since implementation of the ACA. Data from a cohort of 503 PWUDs from eastern Appalachian Kentucky, who were interviewed at seven time-points between 2008 and 2017, were analysed using mixed effects regression models. At baseline, only 33.8% of participants were insured, which increased to 87.3% of the cohort at the last follow-up interview. The final multivariate model, which included baseline characteristics and interactions by time, indicated there were significant baseline differences in insurance status by gender, age, education, income, and history of injection. Differences in the predictive margin probabilities of being insured across these groups had dissipated by the final follow-up interview. After Kentucky’s implementation of the ACA, this cohort of Appalachian PWUDs made substantial gains in obtaining insurance that far exceeded the increases reported in national studies.
Imprisonment and (inequality in) population health
Christopher Wildeman
This article extends research on the consequences of mass imprisonment and the factors shaping population health and health inequities by considering the effects of the imprisonment rate on population health and black-white inequality in population health using state-level panel data from the United States (1980-2004). My results imply that increases in the imprisonment rate harm population health, though the effects on the infant mortality rate and female life expectancy are more consistent than are the effects on male life expectancy. My results also imply that these health effects are concentrated among blacks, implicating mass imprisonment in the persistence of black-white inequities in population health. The effects, moreover, are substantial. According to my estimates, if the American imprisonment rate had remained at its 1980 level, black life expectancy at birth would have been 0.8 years longer in 2004, and black-white inequality in the infant mortality rate would have been 23 percent smaller. My results also indicate, however, that increases in the imprisonment rate are associated with decreases in the mortality rates of young black men. Although imprisonment’s long-term effects on health and health inequities are mostly negative, imprisonment may, in the short-run, have some health benefits for young black men.
Low income and working poor families are exposed to tremendous stressors, which in turn can impede their ability to care for their children. In 2000, reports of abuse and/or neglect of more than 5 million children were made to Child Protective Services agencies. These families are often termed “at-risk” because of the possibility that the children could be placed in foster care. One prevention strategy used to help at-risk families is in-home family therapy. In this paper, I offer a qualitative study of in-home family therapy services from the perspectives of the families themselves. Specific objectives of this project were to examine clients' perspectives about the effectiveness of in-home family therapy; and to use the results of this study to inform larger scale quantitative investigations related to preventative treatment for at-risk, low-income families. This study explored the perceptions of 20 low-income and working poor families residing in Northeast Florida who have completed in-home family therapy services. Results indicate that although families unanimously expressed benefits of receiving in-home family therapy, they also found that the length of time services were provided was too brief to meet their long-term needs. Families provided suggestions for the improvement of services. Implications for researchers and practitioners are provided.
Income inequality and the labour market in Britain and the US
Richard Blundell, Robert Joyce, Agnes Norris Keiller, James P. Ziliak
We study household income inequality in both Great Britain and the United States and the interplay between labour market earnings and the tax system. While both Britain and the US have witnessed secular increases in 90/10 male earnings inequality over the last three decades, this measure of inequality in net family income has declined in Britain while it has risen in the US. We study the interplay between labour market earnings in the family, assortative mating, the tax and benefit system and household income inequality. We find that both countries have witnessed sizeable changes in employment which have primarily occurred on the extensive margin in the US and on the intensive margin in Britain. Increases in the generosity of the welfare system in Britain played a key role in equalizing net income growth across the wage distribution whereas the relatively weak safety net available to non-workers in the US mean this growing group has seen particularly adverse developments in their net incomes.
Income inequality, race, and the EITC
Bradley Hardy, Charles Hokayem, James P. Ziliak
We examine the relationship between the Earned Income Tax Credit (EITC) and Black-White after-tax income inequality from 1980-2020. The EITC lowers overall inequality by 5-10 percent in a typical year, improving the incomes of Black households relative to White households in the bottom half of the distribution. Gains in relative economic status emerged after the 1993 EITC expansion, concentrated among working class Black households, and not extending to those at the very bottom. Estimating the effect of the 1993 expansion on labor supply, we find evidence of a much larger extensive margin employment response for Black households than White households.
The aim of this paper is to assess the adequacy of the data infrastructure in the United States to meet future research and policy evaluation needs as it pertains to income, program participation, poverty, and financial vulnerability. I first discuss some major research themes that are likely to dominate policy and scientific discussions in the coming decade. This list includes research on the long-term consequences of income inequality and mobility, issues of transfer-program participation and intergenerational dependence, challenges with poverty measurement and poverty persistence, and material deprivation. I then summarize what information we currently collect in the U.S. that is used to address these issues, with particular focus on ten national panel datasets that cover these domains and continue to be fielded by the various federal agencies. Included in this section is a discussion of challenges posed by rising income nonresponse and underreporting in many panel surveys. I then conclude with a discussion of how the current panel surveys can be improved to address growing need for social science research on inequality, poverty, and material well being.
Inequality and human capital in Appalachia: 1960-2000
Dan Black, Seth Sanders
This paper examines changes in the earnings distribution of men age 25-64 between 1960 and 2000 in Appalachia and in the remainder of the U.S. Because Appalachia is more rural than the remainder of the U.S. we also examine changes in the earnings distribution in rural vs. urban areas. Our central finding is that there have been large differences in the evolution of the earnings distribution in rural vs. urban areas and this is the principal reason that Appalachia’s earnings distribution differs to some degree from the remainder of the U.S. We find that the bottom of the earnings distribution increased in rural counties between 1960 and 1980 while there was a small decrease in the bottom of the earnings distribution in urban areas. Between 1980 and 2000, urban areas exhibited far more bifurcation of earnings than rural areas. The level and the return to education may play an important role in understanding these patterns. At the bottom of the distribution there was a large increase in education in rural areas relative to urban areas between 1980 and 2000. The relative rise at the top of the earnings distribution in cities is likely caused by men in the upper part of the earnings distribution being much more likely to have a college degree combined with a rapid rise in the return to college education.
Intergenerational effects of welfare reform
Amalia Miller, Lei Zhang
This paper estimates the impact of the fundamental welfare reforms of the 1990s on the educational attainment of children in low-income families. Using data from national surveys of individuals and administrative records of school districts spanning the period from the early 1990s to the mid 2000s, we estimate the net effects of welfare reform in a difference-indifferences framework. We find that low- and higher-income children experience statistically indistinguishable time trends in outcomes prior to reform, whereas in sharp contrast, in the period following welfare reform, low-income children experience significant and growing relative gains in educational attainment. The income gaps in school enrollment and 7-12th grade drop-out rates narrow by more than 20% in the years following welfare reform. These findings are robust to changing the definition of low- and higher-income groups and to controlling for contemporaneous economic and policy changes.
Is earnings non-response ignorable?
Christopher Bollinger, Barry Hirsch
Earnings nonresponse in the Current Population Survey is roughly 30% in the monthly surveys and 20% in the March survey. If nonresponse is ignorable, unbiased estimates can be achieved by omitting nonrespondents. Little is known about whether CPS nonresponse is ignorable. Using sample frame measures to identify selection, we find clear-cut evidence among men but limited evidence among women for negative selection into response. Wage equation slope coefficients are affected little by selection but because of intercept shifts, wages for men and to a lesser extent women are understated, as are gender gaps. Selection is least severe among household heads.
Is there more to food inescurity among children than poverty? The importance of measurement
Neeraj Kaushal, Jane Waldfogel, Irwin Garfinkel, Vanessa Wight
This paper examines the association between poverty and food insecurity among children using the official measure of poverty and the newsupplemental poverty measure of the Census Bureau based on a more inclusive definition of family resources and needs. Our objective is to study whether the association between food insecurity and poverty improves with a more comprehensive measure of income and needs. We find a strong and statistically significant association between income-to-needs ratio based on the official poverty metric and food insecurity among children—particularly very low food security among children. A more inclusive measure of income-to-needs-ratio, based on the supplemental poverty measurestrengthens the association. These findings remain robust in models using longitudinal data with person fixed effects.
While most economic development research views poverty as a sign of need for development or poverty reduction as an outcome of successful development, this study treats poverty as an independent variable alongside contemporary measures of innovation capacity that reflect state potential for economic development, examining the combined impact of poverty and innovation capacity on economic development outcomes. The study examines the effect poverty has on economic development outcomes given levels of innovation capacity, and the effect poverty has on formation of state innovation capacity. The methodology consists of pooled cross-sectional time-series analysis with panel corrected standard errors with lags. The findings show mixed support for the effect of poverty on innovation capacity formation, weak support for the negative direct effects of poverty on economic growth, and strong support confirming important differences between the south and the rest of the nation. Poverty appears to impact economic growth only indirectly through its effect on the components of capacity that lead to economic growth.