Lavy (Maks) (correct order) Flashcards
(120 cards)
Title: Altonji, Bharadwaj & Lange (2012)
Changes in the Characteristics of American Youth: Implications for Adult Outcomes
Motivation: Altonji, Bharadwaj & Lange (2012) - Changes in the Characteristics of American Youth: Implications for Adult Outcomes
Ask whether 1990s teens are really more “work-ready” than 1970s teens and how that could shape future wage gaps
Setting: Altonji, Bharadwaj & Lange (2012) - Changes in the Characteristics of American Youth: Implications for Adult Outcomes
Two U.S. youth panels — one starting in the late-1970s, one in the late-1990s — tracking family background, AFQT scores, schooling, and actual or forecast adult wages
Methodology: Altonji, Bharadwaj & Lange (2012) - Changes in the Characteristics of American Youth: Implications for Adult Outcomes
Re-weight 1970s cohort’s mix of race, parental education, AFQT, etc. to match the 1990s group, then feed into the 1970s wage equation. Then, add blocks of traits one at a time (parent ed. → test scores → own schooling → work timing) to see which shifts move predicted wages most.
Robustness: Altonji, Bharadwaj & Lange (2012) - Changes in the Characteristics of American Youth: Implications for Adult Outcomes
Repeat with simple OLS/probit models; findings hardly move.
Results: Altonji, Bharadwaj & Lange (2012) - Changes in the Characteristics of American Youth: Implications for Adult Outcomes
Skill-adjusted wages rise only a little; gains bigger at the top. Minorities and women narrow gaps (mainly via better-educated parents). Without faster skill growth, wage inequality is likely to keep widening.
Title: Abramitzky & Lavy (2014)
How Responsive is Investment in Schooling to Changes in Returns? Evidence from an Unusual Pay Reform in Israel’s Kibbutzim
Motivation: Abramitzky and Lavy (2014) - How Responsive is Investment in Schooling to Changes in Returns? Evidence from an Unusual Pay Reform in Israel’s Kibbutzim
Theory says students work harder in school when the payoff to education rises, yet clear real-world tests are rare
Setting: Abramitzky and Lavy (2014) - How Responsive is Investment in Schooling to Changes in Returns? Evidence from an Unusual Pay Reform in Israel’s Kibbutzim
Israeli kibbutzim before vs. after a switch from equal pay to individual, performance-based pay. Two waves of 10th-graders tracked in admin records for school completion and exam results
Methodology: Abramitzky and Lavy (2014) - How Responsive is Investment in Schooling to Changes in Returns? Evidence from an Unusual Pay Reform in Israel’s Kibbutzim
Difference-in-Differences: Early-reform kibbutzim are “treated,” late-reform ones are “controls.” Compare how student outcomes change over time across the two groups, checking that pre-trends match and that effects grow with longer exposure
Robustness: Abramitzky and Lavy (2014) - How Responsive is Investment in Schooling to Changes in Returns? Evidence from an Unusual Pay Reform in Israel’s Kibbutzim
Parallel-trend and balance tests, very little in- or out-migration
Results: Abramitzky and Lavy (2014) - How Responsive is Investment in Schooling to Changes in Returns? Evidence from an Unusual Pay Reform in Israel’s Kibbutzim
After pay reform, high-school completion, test scores, and both basic and college-track diplomas all move up. Gains are bigger for students from less-educated parent backgrounds, stronger for boys, effect rises with more years under the performance based system.
Title: Abramitzky, Lavy and Segev (2024)
The Effect of Changes in the Skill Premium on College Degree Attainment and the Choice of Major
Motivation: Abramitzky, Lavy and Segev (2024) - The Effect of Changes in the Skill Premium on College Degree Attainment and the Choice of Major
When the payoff to a degree suddenly jumps, do young adults finish college more often and steer toward better-paid majors?
Setting: Abramitzky, Lavy and Segev (2024) - The Effect of Changes in the Skill Premium on College Degree Attainment and the Choice of Major
Israeli kibbutzim before vs. after a switch from equal pay to individual, performance-based pay. Records track high-school ability, BA completion, chosen major (STEM vs Humanities, etc.) and later wages.
Methodology: Abramitzky, Lavy and Segev (2024) - The Effect of Changes in the Skill Premium on College Degree Attainment and the Choice of Major
Difference-in-Differences: compare early-reform youths with late-reform youths before vs after the switch, using kibbutz and cohort fixed effects. Split outcomes by major type to see if students re-sort toward high-return fields.
Robustness: Abramitzky, Lavy and Segev (2024) - The Effect of Changes in the Skill Premium on College Degree Attainment and the Choice of Major
Parallel pre-trends, balanced backgrounds, placebo tests on non-treated outcomes, external comparison with Tel-Aviv youth.
Results: Abramitzky, Lavy and Segev (2024) - The Effect of Changes in the Skill Premium on College Degree Attainment and the Choice of Major
After pay reform, BA completion rises sharply, with effect driven almost entirely by STEM fields; low-return majors stay flat. Men flock to computing/engineering, women to bio/chem and computing. Gains are biggest for students who already met advanced-math prerequisites. Expected and realised wages move up.
(Peopple flock to high return degrees)
Title: Jensen (2010)
The Perceived Returns to Education and the Demand for Schooling
Motivation: Jensen (2010) - The (Perceived) Returns to Education and the Demand for Schooling
Students often drop out after primary even though finishing secondary pays a lot more. The study asks: (i) How wrong are students’ wage beliefs? (ii) If you simply tell them accurate returns, do they stay in school?
Setting: Jensen (2010) - The (Perceived) Returns to Education and the Demand for Schooling
8th-grade students in public schools spread across Dominican Republic — capturing pupils right before the stay/leave decision for Grade 9
Methodology: Jensen (2010) - The (Perceived) Returns to Education and the Demand for Schooling
RCT: half the schools hear a speaker read official stats showing secondary school grads earn much more; the other half hear nothing. Difference-in-difference within each student a few months later for belief shifts, then track schooling for four years.
Robustness: Jensen (2010) - The (Perceived) Returns to Education and the Demand for Schooling
Results survive alternative controls and comparison with non-surveyed classmates. Randomization balances backgrounds.
Results: Jensen (2010) - The (Perceived) Returns to Education and the Demand for Schooling
Beliefs jump sharply — students now expect far bigger wage gains. Enrollment in Grade 9 increases, and total schooling inches higher, but mainly among boys from better-off families; poorer students revise beliefs yet do not stay longer, pointing to credit constraints