ISLAMISTIC TERROR AND THE LABOUR MARKET PROSPECTS OF ARAB MEN IN ENGLAND: DOES A COUNTRY'S DIRECT INVOLVEMENT MATTER?

This paper considers two questions on the labour market discrimination against Arab or Muslim men after the recent terrorist attacks. First, I consider for the first time the impact of the September 11 attacks on the wages and working hours of Arabs in Europe. Second, I test whether the fact that a country was the direct target of terrorist attacks influences discrimination using the Madrid train bombings on 11 March 2004 and the London bombings on 7 July 2005 as quasi‐experimental events. The results indicate that the wages, hours worked and employment probabilities of Arab men were unchanged by the attacks.     

Regional effects of the minimum wage on teenage employment

previous research on the minimum wage using national-level data concludes that the minimum wage has a small effect on the employment of teenagers. This paper provides new evidence that there is substantial regional variation in the effect of the minimum wage, and in some regions it has a decidedly larger impact on teenage employment than previously measured Estimates from a panel data set of the US states suggest that the minimum wage may cause almost a 7% reduction in teenage employment in some regions. This results is robust to different econometric specifications, and holds whether a relative or real specification of the estimating equation is used.     

Criminal behaviour and youth in the labour market: the case of the pernicious minimum wage

This paper empirically tests the relationship between variations in Uniform Crime Reports (UCR) index crime rates for teenagers 16–19 years of age with changes in the real minimum wage adjusted for industry coverage in the United States for the period 1960–1987. The analysis reveals that there exists a positive relationship between changes in the real minimum wage and teenage criminal homicide, forcible rape, and motor vehicle theft crime rates. These findings are consistent with the empirical evidence concerning the impacts of the minimum wage on youth labour market opportunities and also with the theoretical ad empirical evidence regarding the incidence of criminal activity made as an occupational choice decision formulated under risk and uncertainty. However, the results indicate no impact of the minimum wage on the other teenage UCR index crime rates as found by Hashimoto (1987). The evidence also suggests that variations in real criminal justice expenditures per capita reduce teenage propety crime rates over time. Thus, there exists weak empirical evidence suggesting that policymakers should not only concern themselves with the traditionally known impacts of the minimum wage on youth labour market activities but also with the added social costs these impacts have on the incidence of youth criminal behavior. Matters of data exigencies and issues pertaining to the direction of future research are also discussed.     

Teenage pregnancies and births in Germany: patterns and developments

We study the development of teenage fertility in East and West Germany using data from the German Socioeconomic Panel and from the German Mikrozensus. Following the international literature we derive hypotheses on the patterns of teenage fertility and test whether they are relevant to the German case. We find that teenage fertility is associated with teenage age and education, with the income of the teenager’s family, with migration status, residence in East Germany and aggregate unemployment. Our evidence supports counter-cyclical teenage fertility.     

Religious identity and the provision of public goods: Evidence from the Indian Princely States

This paper describes a simple model of how a ruler’s religious identity affects public goods provision. Our primary insight is that rulers reduce public goods expenditures to a greater degree when there are privately-provided substitutes excludable by religion.The basic idea is that if the good is provided privately to the ruler’s co-religionists, the ruler faces weaker incentives to provide this public good because his co-religionists receive lower marginal utility from its provision. Testing such a conjecture is an empirical challenge, however, since the religious identity of rulers rarely varies over time and place. We address this problem by exploiting variation in the religion of rulers in the Indian Princely States. Using data from the 1911 and 1931 Indian censuses, we find that Muslim-ruled states had lower Hindu literacy but had no significant impact on Muslim literacy. This result is consistent with our model, as Muslim religious schools provided a substitute for public schools that served both Hindus and Muslims. The model is further substantiated by the fact that the religion of the ruler had no statistically significant impact on railroad ownership or post office provision, neither of which had privately-provided substitutes.     

A paper economy of faith without faith in paper: A reflection on Islamic institutional history

This article contributes to the literature on Islamic institutional history by examining how the discounting of documents in Islamic legal practice constrained the organization of early modern Muslim trade. It is argued that the reliance on literacy, on the one hand, and an Islamic legal framework, on the other, gave early modern Muslim traders a comparative advantage in economic organization, but the lack of faith in paper as documentary evidence in Islamic law posed fundamental constraints to the development of Muslim economies.     

Anti-muslim bias in the Chinese labor market

Is there a Muslim disadvantage in economic integration to the Chinese economy? Do political mandates from the government help reduce disparities? To answer these questions, we conducted a large-scale audit study and submitted over 4000 resumes of fictitious male candidates to job advertisements for accounting and administrative positions posted by private firms, state-owned firms and foreign firms. We randomized the ethnic identities of job applicants, their academic merit, and requested salaries. Our results show that a Muslim job seeker is more than 50% less likely to receive a callback than a Han job seeker, and higher academic merit does not compensate for this bias. Importantly, we find that state-owned enterprises are equally likely to discriminate against Muslim job seekers, despite their political mandate to increase diversity. Interview evidence suggests that besides productivity concerns and outright hostility towards outgroups, bias is also driven by employer concerns over the operational costs of accommodating a diverse workforce.     

The Effect of Culture on Fertility Behavior of US Teen Mothers

This paper studies the impact of culture on the fertility behavior of teenage women in the US. To identify this effect, it took an epidemiological approach, exploiting the variations in teenage women's fertility rates by ancestral home country. Using three different databases (the US National Longitudinal Survey of Youth 1979, the US National Longitudinal Survey of Youth 1997, and the 2000 US Census), the results show that culture has quantitatively important effects on the fertility behavior of teenage women. This finding is robust to alternative specifications, to the introduction of a range of home country variables to proxy culture, and to the measurement of individual characteristics present when teenage women continue with a pregnancy to have a child.     

Opportunities and challenges created by terrorism

Besides being pushed by technical development and pulled by the demand for hi-tech products, technology is also often influenced greatly by the sudden impacts from other external environments. As shown by the aftermath of the 9/11 attacks (2001), Bali bombings (2002, 2005), Madrid bombings (2004), and London bombings (2005), some technologies have been fundamentally affected by terrorism, especially those concerning globalization, infrastructure, corporations, education, and individuals. Using system dynamics (SD) methodology, our paper first examines the causes of terrorism and why the United States was chosen as the target for the 9/11 terror attacks. The concept of SD helps analysts realize the variation of a complicated system and perceive how an internal feedback loop within a system impacts the whole system's behavior. After suffering the 9/11 attacks, the American-led coalition carefully considered how to study and develop effective methods for anti-terrorism strategies. These anti-terrorism efforts will have a major impact on technology development, and many opportunities and challenges are likely to arise from such development. Based on the qualitative analytic approach of causal loops, this article explores in detail the opportunities and challenges for technology development prompted by terrorism. The contribution of our study lies in appropriately analyzing links between terrorism and technology development in order to explain the present relevant technology situation and to initiate a discussion of future technology development trends.     

Is the Well-being of Children Converging in the European Union?

Recent discussion of convergence in the European Union has focused on macroeconomic indicators, in line with requirements for participation in the single currency. But it is reduction of disparities in living standards that is an ultimate goal of European integration – the greater 'economic and social cohesion' emphasised by the Treaty on Union. We assemble evidence on whether the well-being of children in Member States has been converging over the last two decades, taking a variety of indicators: poverty, household worklessness, youth unemployment, child mortality, youth suicide, educational enrolment, teenage fertility, and self-reported 'life satisfaction'.     

Reading, writing, and religion: Institutions and human capital formation

In this paper, we empirically test the role that religious and political institutions play in the accumulation of human capital. Using a new data set on literacy in colonial India, we find that Muslim literacy is negatively correlated with the proportion of Muslims in the district, although we find no similar result for Hindu literacy. We employ a theoretical model which suggests that districts which experienced a more recent collapse of Muslim political authority had more powerful and better funded religious authorities, who established religious schools which were less effective at promoting literacy on the margin than state schools. We test this hypothesis econometrically, finding that the period of Muslim political collapse has a statistically significant effect on Muslim literacy while controlling for it eliminates the significance of the proportion of Muslims on Muslim literacy. This suggests that the “long hand of history” has played some role in subsequent differences in human capital formation through the persistence of institutions discouraging literacy.     

Testing equity market efficiency around terrorist attacks

This article uses the nine major bombings since 1998 that have been attributed to Al Qaida to examine market efficiency, including a test of rumours that investors traded with advance knowledge of attacks. Analysis of these related, but individually unexpected, events confirms markets are semi-strong efficient: it now takes well under a trading day to fully price in a completely unexpected attack. On balance, markets also proved strongly efficient with no conclusive evidence of insider trading.     

Adolescent alcohol use,sociability and income as a young adult

We use data from the National Longitudinal Survey of Adolescent Health (Add Health) to study how sociability and adolescent alcohol use impact personal income as a young adult. We find that factors which enhance not only individual sociability but also social interaction at the community level are positively linked to future earnings of adolescents. Adolescents whose friends and friends of friends have greater sociability reap long-term labour market rewards into adulthood. After adjusting for individual and community sociability, the effect of teenage alcohol consumption on labour market earnings as young adults is reduced. Our results suggest that earnings premiums associated with adolescent alcohol consumption may be partially explained by social network dynamics.     

The effects of minimum wages on the health of working teenagers

This article examines the effect of minimum wage increases on the self-reported health of teenage workers. We use a difference-in-differences estimation strategy and data from the Current Population Survey, and disaggregate the sample by race/ethnicity and gender to uncover the differential effects of changes in the minimum wage on health. We find that white women are more likely to report better health with a minimum wage increase while Hispanic men report worse health.     

A bivariate probit approach to the determination of employment: a study of teen employment differentials in Los Angeles County

Following a bivariate probit approach and using the 1990 Public Use Microdata Samples (PUMS) for Los Angeles County, this study shows that the employment of teenage workers depends on both the worker's participation decision as well as the employer's hiring decision. Omission of the role of participation decision from the estimation of employment probability yields misleading evidence of hiring discrimination against Blacks. This evidence, however, disappears when the participation and hiring equations are estimated jointly in a bivariate framework. The study finds no evidence of discrimination against females and Latinos. In addition, the study shows that family, household and neighbourhood characteristics play significant roles in the determination of teen employment.     

Public opinion and terrorist acts

The paper examines support for terrorism in public opinion and the relationship with terrorist attacks. We link the 2007 PEW survey data on justification for suicide terror and opinions in 16 countries of the Middle East, Africa and Asia on nine regional powers, to the NCTC data on international terrorist acts between 2004 and 2008. We find that justification in public opinion for suicide terrorism increases terror attacks on people in countries that are unfavorably regarded. There is a robust positive relationship between the share of the population in a country that at the same time justifies suicide bombings and has an unfavorable opinion of another country, and terrorism originating from the former country.     

Expectations of adult wages and teenage childbearing

The adult earnings of women and the age at which they initiated childbearing are well known to be positively correlated. Most previous research on teenage mothers has emphasized that early births reduce later earnings. This article explores whether the causality might run in the opposite direction: whether the expectation of low adult wages might increase the probability of teenage childbearing. Using the National Longitudinal Survey of Youth, and treating teenage motherhood, wages and education as jointly determined, this investigation gives strong support to the idea that low wages contribute to teenage childbearing.

I also explore two popular policy proposals for reducing the incidence of teenage childbearing: reducing transfer income and providing sex education courses. The former has only a very small effect on teenage childbearing; the latter is significant only for black adolescents.     

Immigration: then,now, and in the future

The author examines recent changes in immigration flows to the United States. Consideration is given to the increase in Caribbean, Chinese, Indian, and Muslim immigration, which he attributes to today's lower costs of air travel. The negative impact of the ability to return home easily and cheaply on migrants' desire to fully acculturate into U.S. society is noted. Mention is made of the need for new international migration policies to meet the needs of guest workers and consultants.     

Education and Fertility: Evidence from a Natural Experiment*

Declining fertility is often attributed to the increased education of women. It is difficult to establish a causal link because both fertility and education have changed secularly. In this paper we study the connection between fertility and education using educational reform as an instrument to control for selection. Our results indicate that increasing education leads to postponement of first births away from teenage motherhood and towards women having their first birth in their 20s as well as, for a smaller group, up to the age of 35–40. We find no evidence, however, that more education results in more women remaining childless or having fewer children.     

Adult Outcomes for Children of Teenage Mothers

Using data from the British Household Panel Survey, this study examines the relationship between several outcomes in early adulthood (e.g. education, inactivity, earnings and health) and being born to a teenage mother. Besides standard cross‐sectional multivariate regression estimates, we also present evidence from non‐parametric estimates and from estimates that account for unmeasured family background heterogeneity by comparing siblings born to the same mother who timed their births at different ages. Regardless of the econometric technique, being born to a teenage mother is usually associated with worse outcomes. An important channel of transmission of this adverse effect is childhood family structure, which plays a more powerful role than childhood family poverty. Albeit smaller, some of the detrimental effects are also found for children of mothers who gave birth in their early 20s.