Revise and Resubmit, Review of Economic Studies
This paper studies the macroeconomic consequences of large-scale family policies in a heterogeneous-agent economy featuring the quantity-quality trade-off and Social Security.
With endogenous human capital formation, what are the dynamic impacts of performance-based teacher compensations on the income dispersion among teachers, that among non-teachers, and intergenerational mobility?
I propose a technique for bounding the magnitude of fertility responses to changes in the cost of children, i.e., fertility elasticity, for any country and year. The range is consistent with empirical estimates and is more precise than current meta-analyses.
Nearly 40% of births in the United States are unintended, and this phenomenon is disproportionately common among Black Americans and women with lower education. Given that being born to unprepared parents significantly affects children’s outcomes, could family planning access affect intergenerational persistence of economic status? We extend the standard Becker–Tomes model by incorporating an endogenous family planning choice. In a policy counterfactual where states reduce family planning costs for the poor, intergenerational mobility improves by 0.3 standard deviations on average. We also find that differences in family planning costs account for 20% of the racial gap in upward mobility.
We combine GPS data on changes in average distance travelled by individuals at the county level with Covid-19 case data and other demographic information to estimate how individual mobility is affected by local disease prevalence and restriction orders to stay at home. We find that a rise of local infection rate from 0% to 0.003% is associated with a reduction in mobility by 2.31%. An official stay-at-home restriction order corresponds to reducing mobility by 7.87%. Counties with larger shares of population over age 65, lower share of votes for the Republican Party in the 2016 presidential election, and higher population density are more responsive to disease prevalence and restriction orders.