oppositional identities and employment for ethnic minorities evidence from england where a community or group is socially excluded from a dominant group some individuals of that group may identify with the dominant culture and others may reject that culture the aim of this article is to investigate this issue by empirically analysing the potential trade off for ethnic minorities between sticking to their own roots and labour market success we find that the social environment of individuals and attachments to culture of origin has a strong association with identity choice our results also suggest that those non whites who have preferences that accord with being oppositional do experience an employment penalty

are ghettos good or bad spatial separation of racial and ethnic groups may theoretically have positive or negative effects on the economic performance of those groups we examine the effects of segregation on outcomes for blacks in schooling employment and single parenthood we find that blacks in more segregated areas have significantly worse outcomes than blacks in less segregated areas we control for the endogeneity of location choice using instruments based on political factors topographical features and residence before adulthood a one standard deviation decrease in segregation would eliminate one third of the black white differences in most of our outcomes

ethnicity neighborhoods and human capital externalities the socioeconomic performance of today s workers depends not only on parental skills but also on the average skills of the ethnic group in the parents generation or ethnic capital this paper investigates the link between the ethnic externality and ethnic neighborhoods the evidence indicates that residential segregation and the external effect of ethnicity are linked partly because ethnic capital summarizes the socioeconomic background of the neighborhood where the children were raised ethnicity has an external effect even among persons who grow up in the same neighborhood when children are exposed frequently to persons who share the same ethnic background copyright 1995 by american economic association

information in prices about future earnings abstract stock return over a period reflects the market s revision in expectation of future earnings accounting earnings over the same period however have limited ability to reflect such revised expectations therefore returns anticipate earnings changes and the earnings response coefficient from a regression of returns on contemporaneous earnings changes is biased toward zero we reduce this bias by including leading period returns in price earnings regressions the resulting estimated earnings response coefficient magnitudes suggest that the capital market on average views earnings changes to be largely permanent this is consistent with the random walk time series property of annual earnings

the comparative advantage of cities abstract what determines the distributions of skills occupations and industries across cities we develop a theory to jointly address these fundamental questions about the spatial organization of economies our model incorporates a system of cities their internal urban structures and a high dimensional theory of factor driven comparative advantage it predicts that larger cities will be skill abundant and specialize in skill intensive activities according to the monotone likelihood ratio property we test the model using data on 270 us metropolitan areas 3 to 9 educational categories 22 occupations and 19 industries the results provide support for our theory s predictions

income inequality and health lessons from a refugee residential assignment program this paper examines the effect of income inequality on health for a group of particularly disadvantaged individuals refugees our analysis draws on longitudinal hospitalization records coupled with a settlement policy where swedish authorities assigned newly arrived refugees to their first area of residence the policy was implemented in a way that provides a source of plausibly random variation in initial location the results reveal no statistically significant effect of income inequality on the risk of being hospitalized this finding holds also for most population subgroups and when separating between different types of diagnoses our estimates are precise enough to rule out large effects of income inequality on health

do nonlinearity firm specific coefficients and losses represent distinct factors in the relation between stock returns and accounting earnings abstract recent studies have provided theory and evidence that the contemporaneous relation between stock returns and accounting earnings is nonlinear different for profits and losses and different across firms since each factor can result from differences in earnings persistence existing theory is ambiguous as to whether these factors are distinct or overlapping thus we conduct a simultaneous examination our primary tests show that each factor explains a significant portion of the variance of returns after controlling for the other two factors with firm specific estimation providing the largest incremental explanatory power alternative tests produce similar conclusions empirically the three factors are distinct

assimilation to a welfare state labor market performance and use of social benefits by immigrants to finland this paper documents the economic performance of immigrants in a country characterized by an extensive welfare state and a short immigration history upon arrival immigrants to finland have substantially lower employment rates than comparable natives while they experience rapid employment growth only men from oecd countries catch up with natives despite the persisting employment and earnings differences between non oecd immigrants and natives the differences in income transfers disappear in roughly 20 years the immigrant native employment gaps are larger in finland than in australia canada or the us

the labor market impact of immigration a quasi experiment exploiting immigrant location rules in germany with the fall of the berlin wall ethnic germans living in eastern europe and the former soviet union were given the opportunity to migrate to germany within 15 years 2 8 million individuals had done so upon arrival these immigrants were exogenously allocated to different regions to ensure an even distribution across the country their inflow can therefore be seen as a quasi experiment of immigration i analyze the effect of these inflows on skill specific employment rates and wages the results indicate a displacement effect of 3 1 unemployed workers for every 10 immigrants that find a job but no effect on relative wages

estimating the distortionary effects of ethnic quotas in singapore using housing transactions abstract desegregation is a key policy issue in many countries i investigate a residential desegregation program in singapore the ethnic housing quotas i show that choice restrictions imposed on apartment blocks above the quota limits constrained could have distortionary effects causing price and quantity differences for constrained versus unconstrained blocks i test these predictions by hand matching more than 500 000 names in the phonebook to ethnicities to calculate ethnic proportions at the apartment block level i can then investigate differences for constrained and unconstrained blocks close to the quota limits and test for sorting around the limits i find that price differences are between 3 and 5 quantity effects are economically significant translating to longer time on market durations selection cannot fully explain these results my results point to challenges in achieving desegregation using quantity restrictions

the returns to schooling a selectivity bias approach with a continuous choice variable the essence of selection bias is that we do not observe nonoptimal choices this applies whether the choice variable is discrete or continuous this paper extends the selection bias methodology to the case where the choice variable is continuous and the choice set is ordered the leading practical application of this analysis is the schooling choice problem schooling is treated as a continuous choice variable and selectivity corrected rates of return are estimated the findings suggest selectivity is of considerable importance and support the comparative advantage hypothesis of willis and rosen 18

estimating ethnic preferences using ethnic housing quotas in singapore there are many policies around the world aimed at integrating groups gender ethnic national in education employment immigration and housing in the case of housing since prices may not internalize externalities in residential location choices we need to know preferences for welfare analysis this paper estimates people s taste for living with own ethnic groups ethnic preferences using unique policy variation from the ethnic housing quotas in singapore my approach combines policy induced variation commonly used in reduced form settings with a non parametric identi cation strategy in a structural demand estimation framework a la berry levinsohn and pakes 1995 i nd that all groups have strong preferences to live with at least some other

social and spatial networks in labour markets social connections and referrals are ubiquitous in the labour market both on the job seeker side and on the employer side this article reviews recent developments in the study of referrals highlighting what we have learned regarding the use and impact of referrals on various labour market outcomes and pointing out the increasingly nuanced picture we are gaining on the effects of referrals it then discusses directions for future research emphasizing the importance of using newly available data and combinations of datasets and of making tighter connections with the burgeoning macro labour research that is based on a search and matching framework finally it evaluates the role of referrals from the point of view of policy makers discussing their social welfare implications and ways in which they could be explicitly incorporated into various labour market policies the importance of tighter collaboration between policy makers researchers employers and practitioners is stressed to conduct more rigorous experimentation and evaluation of potential referral based policies and programmes

the impact of immigration on the size of government empirical evidence from danish municipalities several studies have reported a negative relationship between ethnic heterogeneity and the size of the public sector one problem with this literature is that ethnic composition is hardly exogenous

agricultural outputs and conflict displacement evidence from a policy intervention in rwanda abstract in 1997 rwanda introduced a resettlement policy for refugees displaced during previous conflicts i exploit geographic variation in the speed of implementation of this policy to investigate the impact of conflict induced displacement and the resettlement policy on household agricultural output and on skill spillover mechanisms between returnees and stayers i find that returns to on farm labor are higher for returnees relative to stayers although the evidence suggests that the policy contributed little additional effect to this differential more speculatively these differentials suggest that upon return from conflict induced exile returnees are more motivated to increase their economic performance

the association between the magnitude of quarterly earnings forecast errors and risk adjusted stock returns since the seminal work of ball and brown 1968 numerous studies have examined the association of both quarterly and annual earnings forecast errors and risk adjusted stock prices 1 the research findings from these studies are consistent with the notion that there is a positive association between the signs of earnings forecast errors and risk adjusted stock prices moreover beaver clarke and wright 1979 hereafter bcw also found an association between unsystematic security returns and the magnitude of annual earnings forecast errors over a 52week preannouncement period they suggested that an important extension of their work would be to examine the association between the magnitude of quarterly earnings forecast errors and unsystematic returns this is the primary focus of the present study

the effect of literacy on immigrant earnings we examine the impact of literacy on immigrant earnings and the sources of lower returns to education and experience among immigrants we find that the native born literacy distribution dominates that for immigrants however the two groups obtain similar returns to literacy skills contrary to discrimination based explanations for immigrant native born earnings differentials among the university educated literacy differences account for about two thirds of the earnings gap however low returns to foreign experience have a larger impact on this differential among the less educated literacy differences and differences in the returns to experience have similar effects on the earnings differential

moving to opportunity in boston early results of a randomized mobility experiment this paper examines the short run impacts of a change in residential neighborhood on the well being of low income families using evidence from a program in which eligibility for a housing voucher was determined by random lottery we examine the experiences of households at the boston site of moving to opportunity mto a demonstration program in five cities families in high poverty public housing projects applied to mto and were assigned by lottery to one of three groups experimental offered mobility counseling and a section 8 subsidy valid only in a census tract with a poverty rate of less than 10 percent section 8 comparison offered a geographically unrestricted section 8 subsidy or control offered no new assistance but continued to be eligible for public housing our quantitative analyses of program impacts uses data on 540 families from a baseline survey at program enrollment a follow up survey administered l to 3 5 years after random assignment and state administrative data on earnings and welfare receipt 48 percent of the experimental group and 62 percent of the section 8 comparison group moved through the mto program one to three years after program entry families in both treatment groups were more likely to be residing in neighborhoods with low poverty rates and high education levels than were families in the control group however while members of the experimental group were much more likely to be residing in suburban communities than were those in the section 8 group the lower program take up rate among the experimental group resulted in more families remaining in the most distressed communities households in both treatment groups experienced improvements in multiple measures of well being relative to the control group including increased safety improved health among household heads and fewer behavior problems among boys experimental group children were also less likely to be a victim of a personal crime to be injured or to experience an asthma attack there are no significant impacts of either mto treatment on the employment earnings or welfare receipt of household heads in the first three years after random assignment

sixty years after the magic carpet ride the long run effect of the early childhood environment on social and economic outcomes this paper estimates the effect of the early childhood environment on a large array of social and economic outcomes lasting almost 60 years to do this we exploit variation in the living conditions experienced by yemenite children after being airlifted to israel in 1949 we find that children who were placed in a more modern environment i e with better sanitary and infrastructure conditions were more likely to obtain higher education marry at an older age have fewer children and work at age 55 they were also more likely to be assimilated into israeli society to be less religious and have more worldly tastes in music and food however these effects are found mainly for women and not for men we also find an effect on the next generation children who lived in a better environment grew up to have children with more education

who is affected by neighbourhood income mix gender age family employment and income differences this paper analyses the degree to which the mixture of low middle and high income males in the neighbourhood affects the subsequent earnings of individuals and aims to test explicitly the degre

lifetime earnings and the vietnam era draft lottery evidence from social security administrative records errata the randomly assigned risk of induction generated by the draft lottery is used to construct estimates of the effect of veteran status on civilian earnings these estimates are not biased by the fact that certain types of men are more likely than others to service in the military social security administrative records indicate that in the early 1980s long after their service in vietnam had ended the earnings of white veterans were approximately 15 percent less than the earnings of comparable nonveterans copyright 1990 by american economic association

multilateral resistance to migration the rate of migration observed between two countries does not depend solely on their relative attractiveness but also on the one of alternative destinations following the trade literature we term the influence exerted by other destinations on bilateral flows as multilateral resistance to migration and we show how it can be accounted for when estimating the determinants of migration rates in the context of a general individual random utility maximization model we propose the use of the common correlated effects estimator pesaran 2006 and apply it to high frequency data on the spanish immigration boom between 1997 and 2009 compared to more restrictive estimation strategies developed in the literature the bias goes in the expected direction we find a smaller effect of gdp per capita and a larger effect of migration policies on bilateral rates

revisiting the relationship between ethnic diversity and preferences for redistribution reply here we respond to the comments raised by nekby and pettersson lidbom on our paper dahlberg et al 2012 journal of political economy 120 41 76 we argue that our estimates are internally valid

estimating earnings response coefficients pooled versus firm specific models abstract short window earnings response coefficients estimated from pooled time series cross sectional regressions are systematically smaller than corresponding averages of firm specific coefficients estimated from time series regressions the cause is a negative relation between firm specific earnings response coefficients and unexpected earnings variances if the hypotheses of equality of firm specific coefficients and equality of firm specific unexpected earnings variances are rejected firm specific estimation should be used instead of pooled estimation using pooled estimation may lead to incorrect inferences about the magnitude of estimated coefficients and or incorrect inferences about differences in coefficient behavior between groups of firms

immigration regional conditions and crime evidence from an allocation policy in germany after the collapse of the soviet union more than 3 million people with german ancestors immigrated to germany under a special law granting immediate citizenship exploiting the exogenous allocation of ethnic german immigrants by german authorities across regions upon arrival we find that immigration significantly increases crime the crime impact of immigration depends strongly on local labor market conditions with strong impacts in regions with high unemployment similarly we find substantially stronger effects in regions with high preexisting crime levels or large shares of foreigners

ethnic enclaves and immigrant labor market outcomes quasi experimental evidence i examine the effects of the ethnic enclave size on labor market outcomes of immigrants i account for ability sorting into enclaves by exploiting a danish spatial dispersal policy under which refugees were randomly dispersed across locations first i find strong evidence that refugees with unfavorable unobserved characteristics self select into ethnic enclaves second a relative standard deviation increase in the ethnic enclave size increases annual earnings by 18 on average irrespective of skill level third further findings are consistent with the explanation that ethnic networks disseminate job information which increases the job worker match quality and thereby the hourly wage rate

language and urban labor market segmentation theory and evidence abstract i propose a language theory of labor market segmentation people of different language origins form separate urban labor submarkets and can switch between submarkets two types of wage differentials emerge namely the within labor market wage gap and the within language group wage gap the average wage in each market and a worker s choice of the labor market depend on the population sizes of the relevant groups these implications are tested using the 2001 census of canada public use microdata a unique feature of these data is the reported work language which helps me to identify labor market segments the empirical evidence supports my theory

re evaluating the impact of immigration on the u s rental housing market abstract previous studies provide evidence that immigration increases housing prices and rents to deal with endogenous location choices of immigrants these studies often use a shift share instrumental variable approach this approach however fails to adequately account for the natural attraction of immigrants to cities with thriving economies high immigration cities provide more economic opportunities and thus exhibit persistently rising housing prices and rents this paper improves upon the traditional empirical approach by explicitly controlling for initial city characteristics that lead to both increases in immigration and the evolution of rents results suggest that after controlling for endogenous sorting of immigrants the positive effect of immigration on rents is attenuated while the impact of immigrant inflows is smaller an extension of the main results suggests the effects of immigration on rents remains larger than that of native inflows

with a little help from my friends quality of social networks job finding and job match quality this paper studies the effect of network quality on job finding and job match quality using longitudinal data and a direct measure of network quality which is based on the employment of friendship ties various identification strategies provide robust evidence that a higher number of employed contacts increases the job finding rate network quality also increases wages for high skilled workers forming networks with non familial contacts instead for low skilled workers more employed familial contacts lead to a negative but not significant effect on wages these findings reconcile previous mixed evidence of network effects on wages indicating heterogeneity by skill level and relationship type

intermarriage and the labor market outcomes of asian women the impact of intermarriage with natives on labor market outcomes of immigrants is not homogeneous across ethnic groups wages of asian women are compared with non asians both ordinary least squares and instrumental variables estimates of the effects of intermarriage on the wages of asian women are negative and significant non asian women earn a wage premium that becomes insignificant when controls for selection into marriage are introduced one possible explanation for the intermarriage penalty for asians is an income effect of having a high earning native husband intermarriage penalties rise with husband s education assimilation patterns of intermarried asians indicate that they have lower initial wages market hours and employment but exhibit faster rates of growth over their years of stay the results are robust across asian subgroups and husband s ethnicity jel j16 j12 j31 j61

living in limbo economic and social costs for refugees our paper tests the hypothesis that living in limbo could have negative consequences for the socio economic integration of refugees we define limbo as a protracted period when asylum seekers are waiting for the decision concerning their permanent refugee status relying on the french survey of migrants france s longitudinal survey of migrants elipa we measure integration by labour market participation fluency in french finding new french friends and studying to account for the endogeneity of limbo we instrument it with the administrative backlog we find that living longer in limbo during the asylum seeking period slows down future integration of refugees but results differ with respect to gender and educational attainment while having lived longer in limbo slows down most aspects of socio economic integration for refugees with no degree or a high school degree those with a bachelor s degree do not experience negative effects male refugees who had lived longer in limbo have a lower likelihood of being employed and studying in france while similar females make fewer french friends

accounting information and corporate governance market and analyst reactions to earnings of firms engaged in proxy contests abstract this paper studies market and analyst reactions to earnings i during a proxy contest for board seats and ii after a proxy contest induced management change despite indications of earnings management during the proxy contest market and analyst reactions are more pronounced than in prior periods and earnings surprises explain more of the cross sectional variation in these reactions market and analyst reactions to earnings released after a successful proxy contest are less pronounced than in prior periods and earnings surprises explain less of the variation in these reactions perhaps due to new managements tendency to take an earnings bath

applying reverse regression techniques in earnings return analyses abstract measurement error in unexpected earnings is recognized as a source of bias in examinations of the relation between earnings and returns reverse regression procedures are commonly used as a means of coping with this bias this study examines the properties of reverse regression procedures in multi interacted variable settings with a specific focus on the earnings response coefficient erc analysis of collins and kothari j account econom 11 1989 143 it shows that both conventional reverse regression techniques and novel techniques employed by collins and kothari are not robust it also demonstrates how reverse regression techniques can be successfully employed in such settings using non interacted variable designs

do when and where matter initial labor market conditions and immigrant earnings this article investigates the long term effects on immigrant earnings and employment of labour market conditions encountered upon arrival we find that early earnings assimilation depends crucially on a favourable national labour market exposure to high local unemployment rates also affects individuals for at least ten years to handle the issue of selective migration we compare refugees entering sweden during a severe and unexpected recession to refugees arriving during a preceding economic boom the analysis of effects at the local level exploits a governmental refugee settlement policy to get exogenous variation in local labour market conditions

network effects and welfare cultures we empirically examine the role of social networks in welfare participation using data on language spoken at home to better infer networks within an area our empirical strategy asks whether being surrounded by others who speak the same language increases welfare use more for those from high welfare using language groups this methodology allows us to include local area and language group fixed effects and to control for the direct effect of being surrounded by one s language group these controls eliminate many of the problems in previous studies the results strongly confirm the importance of networks in welfare participation

ethnic enclaves and the economic success of immigrants evidence from a natural experiment recent immigrants tend to locate in ethnic enclaves within metropolitan areas the economic consequence of living in such enclaves is still an unresolved issue we use an immigrant policy initiative in sweden when government authorities distributed refugee immigrants across locales in a way that may be considered exogenous this policy initiative provides a unique natural experiment which allows us to estimate the causal effect on labor market outcomes of living in enclaves we find substantive evidence of sorting across locations when sorting is taken into account living in enclaves improves labor market outcomes for instance the earnings gain associated with a standard deviation increase in ethnic concentration is in the order of four to five percent

interactions between workers and the technology of production evidence from professional baseball this paper examines how the effort choices of workers within the same firm interact with each other in contrast to the existing literature we show that workers can affect the productivity of their co workers based on income maximization considerations rather than relying on behavioral considerations such as peer pressure social norms and shame theoretically we show that a worker s effort has a positive effect on the effort of co workers if they are complements in production and a negative effect if they are substitutes the theory is tested using panel data on the performance of baseball players from 1970 to 2003 the empirical analysis shows that a player s batting average significantly increases with the batting performance of his peers but decreases with the quality of the team s pitching furthermore a pitcher s performance increases with the pitching quality of his teammates but is unaffected by the batting output of the team these results are inconsistent with behavioral explanations which predict that shirking by any kind of worker will increase shirking by all fellow workers the results are consistent with the idea that the effort choices of workers interact in ways that are dependent on the technology of production these findings are robust to controlling for individual fixed effects and to using changes in the composition of one s co workers in order to produce exogenous variation in the performance of one s peers

neighbourhood effects and city effects the entry of newly arrived immigrants into the labour market an important debate in current research and policy focuses on the role of urban residential segregation on the social mobility of immigrants much focus has been on neighbourhood effects and on h

immigrating to opportunity estimating the effect of school quality using a natural experiment on ethiopians in israel in may 1991 fifteen thousand ethiopian jews were brought to israel in an overnight airlift and sorted in a haphazard and essentially random fashion to absorption centers across the country this quasi random assignment produced a natural experiment whereby the initial schooling environment of ethiopian children can be considered exogenous to their family background and parental decisions we examine the extent to which the initial elementary school environment affected the high school outcomes of ethiopian children using administrative panel data on the educational career of each child in israel through much of the 1990s the results show that the early schooling environment has an important effect on high school dropout rates repetition rates and the passing rate on matriculation exams necessary to enter college the results are robust to using alternative measures of the schooling environment and to the inclusion of community fixed effects which suggests that aspects of the elementary school itself are important for high school success

revisiting the relationship between ethnic diversity and preferences for redistribution comment in this paper we return to the question raised in dahlberg et al 2012 concerning a causal relationship between ethnic diversity and preferences for redistribution a re analysis of their study indicates that results are based on an endogenous instrument and severe sample attrition bias correcting for either of these two problems reveals that there is no relationship between ethnic diversity and preferences for redistribution more generally we provide results that put into question the conventional description of the swedish refugee placement policy

the violent legacy of conflict evidence on asylum seekers crime and public policy in switzerland we study empirically how past exposure to conflict in origin countries makes migrants more violence prone in their host country focusing on asylum seekers in switzerland we exploit a novel and unique dataset on all crimes reported in switzerland by the nationalities of perpetrators and of victims over 2009 2016 our baseline result is that cohorts exposed to civil conflict mass killing during childhood are 35 percent more prone to violent crime than the average cohort this effect is particularly strong for early childhood exposure and is mostly confined to co nationals consistent with inter group hostility persisting over time we exploit cross region heterogeneity in public policies within switzerland to document which integration policies are best able to mitigate the detrimental effect of past conflict exposure on violent criminality we find that offering labor market access to asylum seekers eliminates two thirds of the effect

ethnic diversity public spending and individual support for the welfare state a review of the empirical literature we review the empirical literature that studies the effect of ethnic diversity on public spending and on individual support for the welfare state the survey puts a particular focus on the fast growing literature that uses experiments to study the effects of ethnic diversity many of these studies have appeared since the pioneering survey by alesina and la ferrara and have not been covered by a survey before

ethnic concentration and language fluency of immigrants evidence from the guest worker placement in germany this paper analyses the impact of regional ethnic concentration on the language proficiency and language use of immigrants it solves the endogeneity of immigrants location choices by exploiting a peculiar episode of the german immigration history the exogenous placement of guest workers after wwii one of the largest guest worker programs on record the econometric approach accounts for several sources of measurement error and provides a falsification exercise that hypothetically relocates the most language proficient immigrants into ethnic enclaves to test the extent of cross regional sorting necessary to render the results purely spurious the results show a robust negative effect of ethnic concentration on immigrants language ability which is driven by differences in contact rates with natives and not by differences in the willingness to integrate the paper discusses these findings against the background of a language production function and in the light of feasible policy options to foster the language acquisition of immigrants

the economics of immigration this literature review concerns the impact of immigration on the economy of the host country focusing on the experience of the united states the emphasis is on the period from the 1970s to the 1990s the author shows that research earlier in this period generally concluded that the economic effects of immigration were positive but that more recent research on later migrations have generally concluded that immigration may be having an adverse effect on the earnings of native unskilled workers and be placing an increased burden on welfare programs the importance of such economic analysis for the formulation of appropriate migration policies is stressed

identification of endogenous social effects the reflection problem this paper examines the reflection problem that arises when a researcher observing the distribution of behaviour in a population tries to infer whether the average behaviour in some group influences the behaviour of the individuals that comprise the group it is found that inference is not possible unless the researcher has prior information specifying the compisition of reference groups if this information is available the prospects for inference depend critically on the population relationship between the variables defining reference groups and those directly affecting outcomes inference is difficult to implossible if these variables are functionally dependent or are statistically independent the prospects are better if the variables defining reference groups and those directly affecting outcomes are moderately related in the population

a reexamination of the persistence of accruals and cash flows we reexamine prior studies conclusion that accruals are less persistent than cash focusing on two aspects of persistence that are crucial to determining its properties the first time specificity refers to the fact that persistence describes how current period shocks to income translate into next period income traditional measures of accruals are however functions of current and non current period transactions we show that the inclusion of non current period transactions leads to a downward upward bias on the persistence of accruals cash flows we develop alternative measures of accruals and cash flows that are not misaligned and show that the differential persistence of cash flows over accruals is more than 70 smaller using these measures the second aspect of persistence is firm specificity specifically we evaluate persistence using firm specific estimations and find that more than 85 of firms show no evidence that accruals are less persistent than cash flows

human capital and interethnic marriage decisions common explanations for the generally negative relationship between education and ethnic endogamy include 1 education makes immigrants and their children better able to adapt to native culture thereby eliminating the need for a same ethnicity spouse and 2 education raises the likelihood of leaving ethnic enclaves thereby decreasing the probability of meeting potential same ethnicity spouses this paper considers a third option the role of assortative matching on education if education distributions differ by ethnicity then spouse searchers may trade similarities in ethnicity for similarities in education when choosing spouses u s census data on second generation immigrants provide strong support for the assortative matching mechanism

conflict displacement and labor market outcomes in post war bosnia and herzegovina abstract the war in bosnia and herzegovina of the early nineties displaced 1 3 million people this study uses longitudinal data to document the effects of this displacement on labor market outcomes to account for endogeneity in displacement i exploit the fact that the level of violence affected the decision to leave and that pre war economic performance is orthogonal to local violence levels i find that displaced bosnians are less likely to be working relative to the people who stayed displaced men experience higher unemployment levels and displaced women are more likely to drop out of the labor force

the mobility of immigrants and natives evidence from internal migration following job displacement boman a the mobility of immigrants and natives evidence from internal migration following job displacement regional studies in times of change in the labour market differences in migratory behaviour between groups affect the labour market outcome of these groups one important group in society is that of immigrants for which human capital migration theory presents two potentially conflicting hypotheses one is based on immigrants having less location specific human capital increasing their probability of migration the other is based on ethnicity immigrants living in ethnic enclaves have higher costs of leaving the enclave reducing their probability of migration this paper disentangles and finds support for both hypotheses using high quality data on a wide range of variables for essentially all individuals involuntarily displaced due to closures or substantial cutbacks of swedish workplaces in 1987 and 1988 boman a la mobilite des immigres et de la population autochtone des preuves provenant

ethnic enclaves and immigrant earnings growth the impact of living in an ethnic enclave on earnings growth of immigrants in canada is examined using the 1981 2001 censuses consistent with u s findings enclaves are found to have a negative impact on the earnings growth of male immigrants a negative impact is also found for female immigrants living in an enclave was found to be particularly harmful for individuals immigrating as adults especially for females but did not affect immigrants who arrived at a young age enclaves had a more negative impact on high skilled male immigrants especially if they had received the bulk of their education outside canada enclaves were also found to hinder language skills l impact du fait de vivre dans une enclave ethnique sur la croissance des gains des immigrants au canada est analysea l aide des donnees de recensements de 1981 a 2001 en concordance avec les resultats des etudes americaines on decouvre que les enclaves ont un effet negatif sur la croissance des gains des hommes immigrants il y a aussi un impact negatif sur la croissance des gains des femmes immigrantes vivre dans une enclave est particulierement dommageable pour les personnes qui immigrent au stade adulte et ce particulierement pour les femmes les effets negatifs ne se font pas sentir sur les immigrants qui arrivent en bas ge les enclaves ont un effet davantage negatif pour les hommes immigrants hautement qualifies en particulier s ils ont recu le gros de leur education hors du canada on montre que de vivre en enclaves retarde le developpement d habiletes langagieres

financial literacy externalities this paper uses unique administrative data and a quasi field experiment of exogenous allocation to apartments in sweden to estimate medium and longer run effects on financial behavior from exposure to financially literate neighbors it contributes evidence of causal impact of financial literacy and points to a social multiplier of effective programs to enhance it exposure promotes saving in private retirement accounts and stockholding especially when neighbors have economics or business education but only for educated or male headed households findings point to relevant knowledge transfer through social interactions rather than to labor market or other channels linked to local economic conditions

earnings announcements and attention constraints the role of market design abstract we identify a new channel market makers attention constraints through which earnings announcements for one stock affect the liquidity of other stocks when some stocks handled by a designated market maker have earnings announcements liquidity is lower for non announcement stocks handled by the same market maker with the largest effects coming from earnings surprises and stocks with high earnings response coefficients half of the liquidity decline reflects attention constraints binding on the individual market maker and the other half is explained by the market maker s inventory we further find that a market design change that increases automation alleviates the liquidity effect of attention constraints despite an increase in the number of stocks allocated to each market maker

the labour market impact of immigration in the first part of this paper we present a stylized model of the labour market impact of immigra tion we then discuss mechanisms through which an economy can adjust to immigration changes in factor prices output mix and production technology in the second part we explain the problems of empirically estimating how immigration affects labour market outcomes of the resident population and review some strategies to address these we then summarize some recent empirical studies for the uk and other countries we conclude with an outlook on what we believe are important avenues for future research

skill transferability migration and development evidence from population resettlement in indonesia we use a natural experiment in indonesia to provide causal evidence on the role of location specific human capital and skill transferability in shaping the spatial distribution of productivity from 1979 1988 the transmigration program relocated two million migrants from rural java and bali to new rural settlements in the outer islands villages assigned migrants from regions with more similar agroclimatic endowments exhibit higher rice productivity and nighttime light intensity one to two decades later we find some evidence of migrants adaptation to agroclimatic change overall our results suggest that regional productivity differences may overstate the potential gains from migration

low and high skill migration flows free mobility versus other determinants we investigate what economic factors drive international migration of workers to france and how their influence varies across different skill levels under restrictive policies and through time as free mobility is implemented we find that neither incentives nor policy parameters are similar across skill levels migration drivers such as a network of compatriots and relative incomes influence the movement of low skill workers high skill individuals however move only according to financial opportunities be they standard of living or returns to skill within a class we conclude that competition for high skill workers among organization for economic co operation and development oecd countries requires more than free mobility to successfully attract high skill migrants even for a developed country such as france

monetary policy in a financial crisis what are the economic effects of an interest rate cut when an economy is in the midst of a financial crisis under what conditions will a cut stimulate output and employment and raise welfare under what conditions will a cut have the opposite effects we answer these questions in a general class of open economy models where a financial crisis is modeled as a time when collateral constraints are suddenly binding we find that when there are frictions in adjusting the level of output in the traded good sector and in adjusting the rate at which that output can be used in other parts of the economy then a cut in the interest rate is most likely to result in a welfare reducing fall in output and employment when these frictions are absent a cut in the interest rate improves asset positions and promotes a welfare increasing economic expansion

the labor market integration of refugees in the united states do entrepreneurs in the network help we investigate whether entrepreneurs in the network of refugees from the same country of origin help refugees enter the labor market by hiring them we analyze the universe of refugee cases without u s ties who were resettled in the united states between 2005 and 2010 we address threats to identification due to refugees sorting into specific labor markets and to strategic placement by resettlement agencies we find that the probability that refugees are employed 90 days after arrival is positively affected by the number of business owners in their network but negatively affected by the number of those who are employees this suggests that network members who are entrepreneurs hire refugees while network members working as employees compete with them which is consistent with refugees complementing the former and substituting for the latter