Women hold up half the sky? Gender identity and the wife's labor market performance in China

In this paper, we empirically study the impact of gender identity on the wife's labor supply in China where a high female employment rate and a large population that has a traditional gender identity coexist. We find that the wife's gender identity affects her labor force participation for all cohorts, and the wife's gender identity affects earnings only for rural cohorts. The impact of gender identity varies among generational, regional, and educational cohorts. Husbands still guide their wives, i.e., a husband's gender identity affects his wife's labor force participation and earnings.     

The Role of Off‐Farm Labor Participation Decisions of Married Farm Couples on Farm Direct Marketing in Taiwan

Direct marketing from farm producers to consumers has been seen as a viable business option to increase farm income. This study investigates the factors that determine a farm's direct marketing decisions; special attention is paid to understanding the correlation between farm couples' off‐farm labor participation and the farm's adoption of direct marketing strategies. A nationally representative dataset of 3,670 married family farm couples in Taiwan is used as an illustration. A multiple choice treatment effect model is estimated to cope with endogeneity bias. The results indicate a significant association between farm couples' off‐farm labor decisions and the farm's adoption of direct marketing strategies. Moreover, gender difference is evident: farm husband's (wife's) off‐farm work is positively (negatively) associated with the farm's direct marketing decision.     

Inequality and Determinants of Earnings in Malaysia, 1984–1997*

Using three large nationally‐representative Malaysian Household Income Surveys from 1984, 1989 and 1997, the present paper examines inequality and determinants of earnings. During the period 1984–1997, Malaysia's real per capita GDP increased by approximately 70percent, the participation rates for both men and women went up among all age groups, and the average number of years of schooling increased by 1.2years. There was a significant relative wage improvement among the bottom deciles. The rate of return to an additional year of schooling remained high (at 10percent), despite the huge increase in the supply of the highly educated. The stable overall rate, however, masks an increased rate of return on women's education, and a decreased rate for men. Wage discrimination against women amounts to 16–20percent, and the bias has increased in 1997. The pro‐Chinese earning ethnic bias is estimated at 31percent.     

Human Capital and Hours Worked of Children in Cambodia: Empirical Evidence for Policy Implications*

This study uses data from the Cambodian Child Labor Survey 2001/02 (CCLS‐2001/02) to investigate the trade‐off between child labor and their human capital formation. It also investigates the determinants of child schooling and that of the income earned from child labor. This study finds that children's education is a significant determinant of their wage rate, which implicitly explains the logic behind the household's decision to allow a child to both work and study, and thus explains why parents keep investing in their children's education. We also find that non‐poor households and fathers’ and mothers’ education have statistically significant effects on child schooling. Finally, this study has found that if children's average working hours are below the threshold level of 22 h per week, then education is not affected. These research findings have policy implications for the human capital development of children, as well as for broader social policy in Cambodia.     

Earnings Non‐Synchronicity and Voluntary Disclosure

Earnings non‐synchronicity reflects the extent to which firm‐specific factors determine a firm's earnings. Prior research suggests that high earnings non‐synchronicity impedes corporate outsiders' ability to process information. This study examines the impact of earnings non‐synchronicity on managers' decisions to provide earnings forecasts. We propose that high earnings non‐synchronicity motivates managers to issue earnings forecasts to reduce information asymmetry between managers and investors and to preempt costly information acquisition by outsiders. Consistently, we find a positive relation between earnings non‐synchronicity and managers' propensity to issue earnings forecasts, particularly long‐horizon forecasts. This positive relation is weaker when earnings are easier to predict based on the firm's earnings history and is stronger when the firm has higher institutional ownership and greater analyst following. We also find that the market's reaction to management forecasts increases with earnings non‐synchronicity. Overall, the evidence suggests that managers voluntarily provide earnings forecasts to alleviate the adverse consequences of earnings non‐synchronicity. These findings provide a more complete picture about the impact of earnings non‐synchronicity on a firm's information environment, and highlight the effect of the nature of information asymmetry on voluntary disclosures.     

The impact of E‐Verify mandates on labor market outcomes

A number of states have adopted laws that require employers to use the federal government's E‐Verify program to check workers' eligibility to work legally in the United States. Using data from the Current Population Survey, this study examines whether such laws affect labor market outcomes among Mexican immigrants who are likely to be unauthorized. We find evidence that E‐Verify mandates reduce average hourly earnings among likely unauthorized male Mexican immigrants while increasing labor force participation among likely unauthorized female Mexican immigrants. Furthermore, the mandates appear to lead to better labor market outcomes among workers likely to compete with unauthorized immigrants. Employment rises among male Mexican immigrants who are naturalized citizens in states that adopt E‐Verify mandates, and earnings rise among U.S.‐born Hispanic men. There is no evidence of significant effects among U.S.‐born non‐Hispanic whites.     

Gender identity,preference, and relative income within households

In this paper, we empirically study the impact of gender identity on wives' relative income within households in China and find that a husband's and a wife's traditional gender identity statistically significantly and negatively affect the wife's relative income in the household. The heterogeneous effects of gender identity for different residence types, education levels, and age groups are also studied. Supporting empirical evidence is explored for the preference mechanism that couples with traditional gender identities are more averse to having a wife who earns more than her husband. We also find that a husband earns less if the husband or the wife has a traditional gender identity.     

Evidence of Earnings Inequality Based on Caste in Nepal

In this article, the monthly earnings gap between Dalit and non‐Dalit caste members in Nepal is estimated using two methods: Blinder‐Oaxaca decomposition method and the matching‐based nonparametric decomposition method. The nonparametric decomposition method estimates the monthly earnings gap based on a one‐to‐many matching of the given income‐generating characteristics, taking into account the differences in the support of the distribution of those characteristics for Dalits and non‐Dalits. According to the results, the majority of the earnings gap between Dalits and non‐Dalits is attributed to the endowment effect. Dalits earn less than non‐Dalits because Dalits have some characteristics that non‐Dalits do not, that are unfavorable in the labor market. That this endowment effect works against Dalits could be a reflection of the social exclusion and job segregation faced by Dalits in the past.     

Health Status and Earnings of Migrant Workers from Rural China

The migration of rural laborers into cities for employment has been one of the main driving forces of China's economic growth over the past three decades. Based on a dataset collected by the Ministry of Agriculture of China from 2003 to 2007, this paper examines the impact of health on the earnings of migrant workers engaging in physically‐intensive work requiring good health. Our findings indicate that a poor health status not only weakens the incentive of rural laborers to participate in the migrant labor force but also significantly reduces their earnings. A migrant worker in poor health only earns 67 percent of what a healthy worker makes. Among all the human capital characteristics and family economic factors, health status is the most influential on earnings for less educated workers. Labor productivity has a greater impact on earnings than the annual number of days that a person works. Ongoing health‐care reforms aimed at the improvement of the health‐care services available to rural laborers are urged to help reduce poverty in rural China.     

The Effects of State Merit Aid Programs on Attendance at Elite Colleges

State merit aid programs have been found to reduce the likelihood that students attend college out of state. Using the U.S. News & World Report (USNWR) rankings of colleges and universities to measure college quality and Integrated Postsecondary Education Data System data to measure enrollment, we explore how this reduction in out‐of‐state enrollment differs by the academic quality of the institution. Our difference‐in‐differences results suggest that state merit aid programs do not induce students to forgo attending top 15 ranked schools. However, state merit aid does induce some students to forgo attending out‐of‐state schools ranked below the top 15 and shifts them toward lower quality in‐state schools, so that the net effect is a reduction in academic quality, as measured by USNWR. These effects may have long‐term implications for students' degree completion rates and labor market earnings.     

Adolescent Depression and Adult Labor Market Outcomes

This article uses recently released data from a national longitudinal sample to present new evidence of the longer term effects of adolescent depression on labor market outcomes. Results suggest reductions in labor force attachment of approximately 5% and earnings reductions of approximately 15% for individuals with depressive symptoms as an adolescent. These effects are only partially reduced when controlling for channels operating through educational attainment, adult depressive symptoms, or co‐occurring illnesses. Further, the unique structure of the data allows for high‐school fixed effects as well as suggestive evidence using sibling comparisons, which allows controls for potentially important unobserved heterogeneity. Overall, the results suggest that the links between adolescent depression and labor market outcomes are quite robust and important in magnitude, suggesting the need for further investments in treatment options and opportunities during adolescence, which will likely result in long term returns.     

Determinants of the Time Series of Earnings and Implications for Earnings Quality*

This paper examines whether differences in accrual accounting methods across balance sheet accounts influence the time‐series process of earnings. We define earnings quality as the responsiveness of earnings to shifts in permanent earnings and predict that responsiveness will increase in a firm's use of variable rate debt, where accruals move directly with shifts in interest rates. We also predict that responsiveness will decrease in a firm's investment in property plant and equipment because depreciation is largely predetermined and does not respond to shifts in opportunity costs. </P><P>To test these hypotheses, we regress earnings on lagged earnings and a proxy for permanent earnings (that is, the implied dividend annuity in lagged equity value). Within the context of an adjustment cost model, this regression captures the responsiveness of earnings by the coefficient on lagged price and by one minus the coefficient on lagged earnings. Consistent with this framework, we find the unconstrained estimated coefficients on these two variables to be negatively correlated. Furthermore, consistent with our hypotheses, we find that the coefficient on lagged earnings (lagged price) is positively (negatively) associated with the relative magnitude and life of fixed assets on the balance sheet and negatively (positively) associated with the relative magnitude of variable rate debt on the balance sheet.</P>     

Same‐sex relationship escalation with uncertain marriage legality: Theory and empirical implications

We develop a strategic model of same‐sex dating, cohabitation, and potential marriage with location‐specific marriage legality. With an initial illegal location, couples bargain over a relationship path that internalizes the probability of future legalization and potential migration‐for‐marriage. Our model generates testable, empirical implications on relationship hazard rates, migration, and utility due to changes in migration costs and legalization probabilities. Specifically, we show that decreased migration costs or increased legalization probabilities will increase relationship hazard rates (dissolution) for both daters and cohabitators. These changes will also decrease utility for an identifiable segment of the relationship quality distribution.     

Intra‐Industry Information Transfers and the Post‐Earnings Announcement Drift

This study examines the role of intra‐industry information transfers in the analyst forecast‐based post‐earnings announcement drift. I find that subsequent same‐industry‐peer earnings announcements influence a firm's post‐earnings announcement drift if these subsequent announcements confirm the firm's initial earnings surprise and the firm's industry exhibits ex ante positive (common effect) intra‐industry information transfers. The results suggest that underreaction to industry‐specific information contributes to analyst forecast‐based post‐earnings announcement drift.     

The Walk‐down to Beatable Analyst Forecasts: The Role of Equity Issuance and Insider Trading Incentives*

It has been alleged that firms and analysts engage in an "earnings‐guidance game" where analysts first issue optimistic earnings forecasts and then "walk down" their estimates to a level that firms can beat at the official earnings announcement. We examine whether the walk‐down to beatable targets is associated with managerial incentives to sell stock after earnings announcements on the firm's behalf (through new equity issuance) or from their personal accounts (through option exercises and stock sales). Consistent with these hypotheses, we find that the walk‐down to beatable targets is most pronounced when firms or insiders are net sellers of stock after an earnings announcement. These findings provide new insights on the impact of capital‐market incentives on communications between managers and analysts.     

Gender norms and marriage satisfaction: Evidence from China

This paper examines the association between the traditional gender division norm — “men are breadwinners, and women are homemakers” — and the marriage satisfaction of each gender using Chinese couple-level data. The results reveal that married couples tend to be less satisfied with their marriage if the wife earns more than the husband. Moreover, it seems that the drop in the husband's marriage satisfaction matters more for the drop in the couple's overall marriage satisfaction. By exploring the difference between husbands and wives in their attitudes in terms of economic contribution and housework contribution, we confirm that husbands may have a specific self-image regarding the traditional gender division norm, and can also respond to the wives' gender role preference.     

THE EVOLUTION OF GENDER EARNINGS GAPS AND DISCRIMINATION IN URBAN CHINA, 1988–95

This paper analyzes the impact of market liberalization on gender earnings differentials and discrimination against women in urban China at the beginning of the 1990s. The observed stability in the overall gender earnings gap between 1988 and 1995 is shown to result from a complex set of evolutions across enterprises, earnings distributions, and time. Our results highlight the interplay of opposing forces, with economic reforms contributing to changes in managers’ behaviors in different dimensions. On the one hand, by bringing more competition, liberalization favored a reduction in discriminating behaviors in both urban collectives and foreign‐invested enterprises; on the other hand, by relaxing institutional rules, it led to a loosening of the government's egalitarian wage‐setting policies, leaving more space for discrimination in state‐owned enterprises.     

Gender and Competition between Economic or Non‐economic Labor and Schooling: Evidence from EPAM Mali

Abstract: We use the Understanding Children's Work (UCW) definition of child labor and data from the Mali Permanent Household Survey to highlight the gender difference in the competition between economic or non‐economic labor and schooling. A quadri‐variate Probit estimation allows to account for the interdependency between school and various kinds of labor: household chores (HHC), market‐oriented (MO) activities and non‐market‐oriented (NMO) activities. Empirical results provide interesting findings, including differential gender socialization according to the gender of the offspring, gender bias in repartition of tasks and time, and competition between labor activities and schooling.     

Love Actually? Dissecting the Marriage–Happiness Relationship

Using theoretical concepts based on identity economics, the present paper empirically tests the idea that adherence to social norms to get married can provide an additional utility gain from marriage. Norms to get married should be stronger among more traditionalist individuals, so they should put more emphasis on the mere fact of getting married and put less emphasis on match quality. In the empirical analysis, we used the East Asian Social Survey to estimate and compare both OLS and instrumental variables results. In line with the theoretical predictions, there seems to be an identity‐based happiness gain from marriage for traditionalist individuals. These findings can be interpreted as evidence for identity‐based utility effects from marriage. The results also show important differences between OLS and instrumental variables results, confirming the importance of addressing endogeneity properly.