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Using individual data from PIAAC and aggregate data on GDP and unemployment for the US, Europe, and Spain, we test how macroeconomic conditions experienced at age eighteen affect the following decisions in post-secondary and tertiary education: i) enrollment ii) dropping-out, iii) type of degree completed, iv) area of specialization, and v) time-to-degree. We also analyze how the effects differ by gender and parental background. Our findings are different for each of these geographies, which shows that the impacts of macroeconomic conditions on higher education decisions depend on context, such as labor markets and education systems. By analyzing various components of higher education together, we are able to obtain a clearer picture of how potential mechanisms linked to lower opportunity costs of education and reduced ability to pay during economic downturns interact to determine student selection.
Occupational credentials provide an additional—and, at times, alternative—path other than traditional academic degrees for individuals to increase productivity and demonstrate their abilities and qualifications to employers. These credentials take the form of licenses and certifications. Although a critical part of the workforce landscape, the literature on the returns to credentials is inadequate, with prior research having limited causal identification, typically relying on OLS regressions which do not sufficiently control for selection. Using questions that identify credential receipt from the 2015 and 2016 Current Population Surveys, we construct an instrumental variable of local peer influence using the within-labor market credential rate of individuals sharing the same sociodemographic characteristics, while controlling for the same group’s average wages and a suite of demographic and geographic controls. We use this instrument in a marginal treatment effects estimator, which allows for estimation of the average treatment effect and determines the direction of selection, and we estimate the effects of credentials on labor market outcomes. We find large, meaningful returns in the form of increased employment, an effect which is concentrated primarily among women. The effect of having a credential on log wages is higher for those in the sub-baccalaureate labor market, suggesting the potential role of occupational credentials as an alternative path to marketable human capital and a signal of skills in the absence of a bachelor’s degree.
We explore the role of defaults and choice architecture on student loan decision-making, experimentally testing the impact pre-populating either decline or accept decisions compared to an active choice, no pre-population, decision. We demonstrate that the default choice presented does influence student loan borrowing decisions. Specifically, compared to active choice, students presented within a pre-populated decline decision were almost five percent less likely to accept all packaged loans and borrowed between 4.6 and 4.8 percent less in federal educational loans. The reductions in borrowing appears to be concentrated within unsubsidized loans with those assigned to the opt-in condition borrowing 8.3 percent less in unsubsidized loans. These changes in borrowing did not induce substitution towards private or Parent PLUS loans nor did they negatively impact enrollment, academic performance, or on-campus work outcomes in the same academic year.
The segregation of students by socioeconomic status has been on the rise in American public education between schools during the past several decades. Recent work has demonstrated that segregation is also increasing within schools at the classroom level. In this paper, we contribute to our understanding of the determinants of this increase in socioeconomic segregation within schools. We assess whether growth in the presence and number of nearby charter schools have affected the segregation of socioeconomically disadvantaged students by classroom in traditional public schools (TPS). Using data from North Carolina, we estimate a series of models exploit variation in the number and location of charter schools over time between 2007 and 2014 to estimate the impact of charter school penetration and proximity on levels of within school segregation in TPS classrooms serving grades 3-8. We find that socioeconomic segregation in math and English language arts increase in grades 3-6 when additional charter schools open within large urban districts. We find the largest impacts on schools that are closest to the new charter schools. We estimate that the impact of charter schools can account for almost half of the overall growth in socioeconomic segregation we see over the course of the panel within grades 3-6 in large urban districts.
Mixed evidence on the relationship between school closure and COVID-19 prevalence could reflect focus on large-scale levels of geography, limited ability to address endogeneity, and demographic variation. Using county-level CDC COVID-19 data through June 15, 2020, two matching strategies address potential heterogeneity: nearest geographic neighbor and propensity scores. Within nearest neighboring pairs in different states with different school closure timing, each additional day from a county’s first case until state-ordered school closure is related to 1.5%-2.4% higher cumulative COVID-19 deaths per capita (1,227-1,972 deaths for a county with median population and deaths/capita). Results are consistent using propensity score matching, COVID-19 data from two alternative sources, and additional sensitivity analyses. School closure is more strongly related to COVID-19 deaths in counties with a high concentration of Black or poor residents, suggesting schools play an unequal role in transmission and earlier school closure is related to fewer lives lost in disadvantaged counties.
Families and governments are the primary sources of investment in children, proving access to basic resources and other developmental opportunities. Recent research identifies significant class gaps in parental investments that contribute to high levels of inequality by family income and education and, potentially, to inequality in children’s development. State-level public investments in children and families have the potential to reduce class inequality in children’s developmental environments by affecting parents’ behavior. Using newly assembled administrative data from 1998-2014, linked to household-level data from the Consumer Expenditure Survey, we examine how public sector investment in income support, health and education is associated with the private expenditures of low and high-SES parents on developmental items for children. Are class gaps in parental investments in children narrower in contexts of higher public investment for children and families? We find that more generous public spending for children and families is associated with significantly narrower class gaps in private parental investments. Moreover, we find that equalization is driven by bottom up increases in low-SES household spending for the progressive investments of income support and health, and by top down decreases in high-SES household spending for the universal investment of public education.
The decades-long resistance to federally imposed school desegregation entered a new phase at the turn of the new century, when federal courts stopped pushing racial balance as a remedy for past segregation, adopting in its place a color-blind approach in judging local school districts’ assignment plans. Using data that span 1998 to 2016 from North Carolina, one of the first states to come under this color-blind dictum, we examine the ways in which households and policymakers took actions that had the effect of reducing the amount of interracial contact in K-12 schools within counties. We divide these reductions in interracial contact into portions due to the private school and charter school sectors, the existence of multiple school districts, and racial disparities between schools within districts and sectors. For most counties, the last of these proves to be the biggest, though in some counties private schools, charter schools, or multiple districts played a deciding role. In addition, we decompose segregation in the state’s 13 metropolitan areas, finding that more than half can be attributed to racial disparities inside school districts. We also measure segregation by economic status, finding that it, like racial segregation, increased in the largest urban counties, but elsewhere changed little over the period.
Employers may favor applicants who played college sports if athletics participation contributes to leadership, conscientiousness, discipline, and other traits that are desirable for labor-market productivity. We conduct a resume audit to estimate the causal effect of listing collegiate athletics on employer callbacks and test for subgroup effects by ethnicity, gender, and sport type. We applied to more than 450 jobs on a large, well-known job board. For each job listing we submitted two fictitious resumes, one of which was randomly assigned to include collegiate varsity athletics. Overall, listing a college sport does not produce a statistically significant change in the likelihood of receiving a callback or interview request. However, among non-white applicants, athletes are 3.2 percentage points less likely to receive an interview request (p = .04) relative to non-athletes. We find no statistically significant differences among males or females.
A growing body of research and popular reporting shows racial differences in school modality choices during the COVID-19 crisis, with white students more likely to attend school in person. This in-person learning gap raises serious equity concerns. We use unique panel survey data to explore possible explanations. We find that a combination of factors may explain these differences. School districts’ offerings, political partisanship, and local COVID-19 outbreaks are all meaningfully associated with and plausibly explain the in-person learning racial gap. As schools start offering more in-person learning, significant efforts may be necessary to ensure that families and students attend those in-person learning opportunities.
This paper considers an unavoidable feature of the school environment, class rank. What are the long-run effects of a student’s ordinal rank in elementary school? Using administrative data on all public-school students in Texas, we show that students with a higher third-grade academic rank, conditional on achievement and classroom fixed effects, have higher subsequent test scores, are more likely to take AP classes, graduate from high school, enroll in and graduate from college, and ultimately have higher earnings 19 years later. We also discuss the necessary assumptions for the identification of rank effects and propose new solutions to identification challenges. The paper concludes by exploring the tradeoff between higher quality schools and higher rank in the presence of these rank-based peer effects.