Category: Data Source

Flying and academic quality

Using the University of British Columbia as a case study, we investigated whether the faculty at our institution who flew the most were also the most successful. We found that beyond a small threshold there was no relationship between scholarly output and how much an individual academic flies…

We certainly did find evidence that researchers fly more than is likely necessary. In the portion of our sample composed of only fulltime faculty, we categorized 10% of trips as “easily avoidable”. These were trips like going to your destination and flying back in the same day or flying a short distance trip that could have been replaced by ground travel. Interestingly, green academics (those studying subjects like climate change or sustainability) not only had the same level of emissions from air travel as their peers, but they were indistinguishable in the category of “easily avoidable” trips as well.

But success isn’t just measured by scholarly output, and so we also checked for relationships between how much academics flew and their annual salaries (which are publicly available). We did find a significant relationship: people who fly more, get paid more. Causation though, could lie in the other direction. Prestigious scholars with more grant money may have extra funds with which to book air travel, for instance.

Here is the full post by Seth Wynes, via Anecdotal.

Civic honesty around the globe

I am a bit late to this party, having been traveling, but I will serve this one up anyway:

Civic honesty is essential to social capital and economic development, but is often in conflict with material self-interest. We examine the trade-off between honesty and self-interest using field experiments in 355 cities spanning 40 countries around the globe. We turned in over 17,000 lost wallets with varying amounts of money at public and private institutions, and measured whether recipients contacted the owner to return the wallets. In virtually all countries citizens were more likely to return wallets that contained more money. Both non-experts and professional economists were unable to predict this result. Additional data suggest our main findings can be explained by a combination of altruistic concerns and an aversion to viewing oneself as a thief, which increase with the material benefits of dishonesty.

That is the abstract of a new paper by Alain Cohn, Michel André Maréchal, David Tannenbaum, and Christian Lukas Zünd.  It is easy to say this ex post, but I find this intuitive.  Here is the famed country-by-country picture which is circulating:

Here is a picture of the actual vs. the predicted reporting rate.  Experts predicted more overall cooperation than turned out to be the case, most of all for the wallets with no money in them, but basically got it right for wallets with lots of money.  Non-experts got it backwards altogether.

For the pointer to this one I thank many different MR readers.

Labor market polarization and the fertility decline

In the years since the Great Recession, social scientists have anticipated that economic recovery in the United States, characterized by gains in employment and median household income, would augur a reversal of declining fertility trends. However, the expected post-recession rebound in fertility rates has yet to materialize. In this study, I propose an economic explanation for why fertility rates have continued to decline regardless of improvements in conventional economic indicators. I argue that ongoing structural changes in U.S. labor markets have prolonged the financial uncertainty that leads women and couples to delay or forgo childbearing. Combining statistical and survey data with restricted-use vital registration records, I examine how cyclical and structural changes in metropolitan-area labor markets were associated with changes in total fertility rates (TFRs) across racial/ethnic groups from the early 1990s to the present day, with a particular focus on the 2006–2014 period. The findings suggest that changes in industry composition—specifically, the loss of manufacturing and other goods-producing businesses—have a larger effect on TFRs than changes in the unemployment rate for all racial/ethnic groups. Because structural changes in labor markets are more likely to be sustained over time—in contrast to unemployment rates, which fluctuate with economic cycles—further reductions in unemployment are unlikely to reverse declining fertility trends.

That is from a new paper by Nathan Seltzer, via the excellent Kevin Lewis.

Those new service sectors jobs — lots of ’em!

…we find that total employment rises substantially in industries with rising concentration.  this is true even when we look at total employment of the smaller firms in these industries.  This evidence is consistent with our view that increasing concentration is driven by new ICT-enabled technologies that ultimately raise aggregate industry TFP.  It is not consistent with the view that concentration is due to declining competition or entry barriers…as those forces will result in a decline in industry employment.

That is from a new paper by Chang-Tai Hsieh and Esteban Rossi-Hansberg.  The paper presents a larger picture too:

…the secular changes the U.S. economy has experienced for the last four decades…amount to a new industrialization process.  One that allows firms to expand geographically and deliver its goods and services to customers locally.  We have argued that this evolution was the result of an underlying technological change that led to reductions in variable costs (and establishment-level fixed costs) in exchange for larger firm-level fixed costs.

Recommended.

Beware of persistence studies

A large literature on persistence finds that many modern outcomes strongly reflect characteristics of the same places in the distant past. However, alongside unusually high t statistics, these regressions display severe spatial auto-correlation in residuals, and the purpose of this paper is to examine whether these two properties might be connected. We start by running artificial regressions where both variables are spatial noise and find that, even for modest ranges of spatial correlation between points, t statistics become severely inflated leading to significance levels that are in error by several orders of magnitude. We analyse 27 persistence studies in leading journals and find that in most cases if we replace the main explanatory variable with spatial noise the fit of the regression commonly improves; and if we replace the dependent variable with spatial noise, the persistence variable can still explain it at high significance levels. We can predict in advance which persistence results might be the outcome of fitting spatial noise from the degree of spatial au-tocorrelation in their residuals measured by a standard Moran statistic. Our findings suggest that the results of persistence studies, and of spatial regressions more generally, might be treated with some caution in the absence of reported Moran statistics and noise simulations.

That is from a new paper by Morgan Kelly, and here is a look at the studies he considers, via Morton Jerven.

Does trade reform promote economic growth?

Do trade reforms that significantly reduce import barriers lead to faster economic growth? In the two decades since Rodríguez and Rodrik’s (2000) critical survey of empirical work on this question, new research has tried to overcome the various methodological problems that have plagued previous attempts to provide a convincing answer. This paper examines three strands of recent work on this issue: cross-country regressions focusing on within-country growth, synthetic control methods on specific reform episodes, and empirical country studies looking at the channels through which lower trade barriers may increase productivity. A consistent finding is that trade reforms have a positive impact on economic growth, on average, although the effect is heterogeneous across countries. Overall, these research findings should temper some of the previous agnosticism about the empirical link between trade reform and economic performance.

That is the abstract to the new NBER working paper from Douglas Irwin, self-recommending.

Millennials are OK with cars

Whew!

Anecdotes that Millennials fundamentally differ from prior generations are numerous in the popular press. One claim is that Millennials, happy to rely on public transit or ride-hailing, are less likely to own vehicles and travel less in personal vehicles than previous generations. However, in this discussion it is unclear whether these perceived differences are driven by changes in preferences or the impact of forces beyond the control of Millennials, such as the Great Recession. We empirically test whether Millennials’ vehicle ownership and use preferences differ from those of previous generations using data from the US National Household Travel Survey, Census, and American Community Survey. We estimate both regression and nearest-neighbor matching models to control for the confounding effect of demographic and macroeconomic variables. We find little difference in preferences for vehicle ownership between Millennials and prior generations once we control for confounding variables. In contrast to the anecdotes, we find higher usage in terms of vehicle miles traveled (VMT) compared to Baby Boomers. Next we test whether Millennials are altering endogenous life choices that may, themselves, affect vehicles ownership and use. We find that Millennials are more likely to live in urban settings and less likely to marry by age 35, but tend to have larger families, controlling for age. On net, these other choices have a small effect on vehicle ownership, reducing the number of vehicles per household by less than one percent.

That is from new work by Christopher R. Knittel and Elizabeth Murphy.

Something is wrong with construction

Changing sectoral trends in the last 6 decades, translated through the economy’s production network, have on net lowered trend GDP growth by around 2.3 percentage points.  The Construction sector, more than any other sector, stands out for its contribution to the trend decline in GDP growth over the post-war period, accounting for 30 percent of this decline.

That is from a new working paper by Andrew Foerster, Andreas Hornstein, Pierre-Daniel Sarte, and Mark W. Watson, “Aggregate Implications of Changing Sectoral Trends.

Kevin Erdmann, telephone!

Is country music becoming more reactionary?

A recent paper in Rural Sociology, an academic journal, examined how men talk about themselves in mainstream country music. Its author, Braden Leap of Mississippi State University, analysed the lyrics of the top songs on the weekly Billboard country-music charts from the 1980s until the 2010s and found that the near-routine depiction of men as breadwinners and stand-up guys has changed.

Over the past decade, more songs objectify women and are about hooking up. Mr Leap’s examination of lyrics also found that masculinity and whiteness had become more closely linked. References to blue eyes and blond hair, for example, were almost completely absent in the 1980s. In the 2000s, they featured in 15% of the chart-topping songs…

Jada Watson, of the University of Ottawa, recently found that in 2000 a third of country songs on country radio were sung by women. In 2018 the share was only 11%. Even the top female stars get fewer spins. Carrie Underwood had 3m plays between 2000 and 2018; Kenny Chesney received twice as many. A report from the Annenberg Inclusion Initiative found that 16% of all artists were female across 500 of the top country songs from 2014 to 2018.

Here is more from The Economist.

Do DNA databases deter crime and limit recidivism?

Anne Sofie Tegner Anker, Jennifer L. Doleac, and Rasmus Landersø tell us yes:

This paper studies the effects of adding criminal offenders to a DNA database. Using a large expansion of Denmark’s DNA database, we find that DNA registration reduces recidivism within the following year by as much as 43% and it also increases the probability that offenders are identified. We thereby estimate the elasticity of crime with respect to the detection probability to be -2.7, implying that a 1% higher detection probability reduces crime by more than 2%. We also find that DNA registration makes offenders more likely to find employment, enroll in education, and live in a more stable family environment.

Via Ilya Novak (and others).

The misuse of data on extreme poverty in the United States

Recent research suggests that rates of extreme poverty, commonly defined as living on less than $2/person/day, are high and rising in the United States. We re-examine the rate of extreme poverty by linking 2011 data from the Survey of Income and Program Participation and Current Population Survey, the sources of recent extreme poverty estimates, to administrative tax and program data. Of the 3.6 million non-homeless households with survey-reported cash income below $2/person/day, we find that more than 90% are not in extreme poverty once we include in-kind transfers, replace survey reports of earnings and transfer receipt with administrative records, and account for the ownership of substantial assets. More than half of all misclassified households have incomes from the administrative data above the poverty line, and several of the largest misclassified groups appear to be at least middle class based on measures of material well-being. In contrast, the households kept from extreme poverty by in-kind transfers appear to be among the most materially deprived Americans. Nearly 80% of all misclassified households are initially categorized as extreme poor due to errors or omissions in reports of cash income. Of the households remaining in extreme poverty, 90% consist of a single individual. An implication of the low recent extreme poverty rate is that it cannot be substantially higher now due to welfare reform, as many commentators have claimed.

That is from a new NBER working paper by Bruce D. Meyer, Derek Wu, Victoria R. Mooers, and Carla Medalia.

Taiwan facts of the day

Taiwan may be small, but the island has emerged as a financial superpower thanks to the thriftiness of local savers and an eye-watering current account surplus of about 15 per cent of gross domestic product. The country now has the second-largest financial system in the world, relative to gross domestic product. And its life insurance industry is the biggest, with assets-to-GDP of 145 per cent, according to JPMorgan.

The local economy is not big enough to accommodate these enormous sums, so Taiwanese financial institutions have funnelled a whopping $1.2tn abroad.

…Taiwanese insurers hold about 4 per cent of the entire US investment-grade corporate bond market, and 14 per cent of longer-term corporate bonds, according to JPMorgan. Insurers’ holdings of US mortgage-backed securities have nearly doubled over the past five years, to $260bn. That makes Taiwan the second-biggest foreign owner of such securities.

Here is the FT piece by Robin Wigglesworth.

The NYTimes is Woke

Many trends develop over decades but I’ve never seen change so rapid as the breathtaking success of what one might call social justice concerns. Beginning around 2010-2014 there appears to have been a inflection point. Here from Zach Goldberg on twitter are various words drawn from Lexis-Nexis.

 

 

 

 

 

 

 

 

And here from David Rozado is a longer list all drawn from the NYTimes. Rozado has a page where you can graph the trends for words of your own choosing.