Investigating Treatment Effects of Participating Jointly in SNAP and WIC when the Treatment Is Validated Only for SNAP

The U.S. Department of Agriculture operates several food assistance programs aimed at alleviating food insecurity. We study whether participation in both participation in both SNAP and WIC alleviates food insecurity compared with participation in SNAP alone. We bound underlying causal effects by applying nonparametric treatment effect methods that allow for endogenous selection and underreported program participation when validation data are available for one program (treatment) but not the other. We estimate average treatment effects using data from the National Household Food Acquisition and Purchase Survey (FoodAPS). FoodAPS includes administrative data to validate SNAP participation. Information on local food prices allows us to construct a food expenditure‐based monotone instrumental variable that does not require a typical instrumental variable exclusion restriction. Under relatively weak monotonicity assumptions, we identify that the impact of participating in both programs relative to SNAP alone is strictly positive, suggesting that the programs are nonredundant. This evidence can support improved design and targeting of food programs.     

WIC Participation and Relative Quality of Household Food Purchases: Evidence from FoodAPS

We examine the effect of the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) on the quality of household food purchases using the National Household Food Acquisition and Purchase Survey (FoodAPS) and propensity score matching. A healthy purchasing index (HPI) is used to measure nutritional quality of household food purchases. WIC foods explain the improvement in quality of food purchases, not self‐selection of more nutrition‐conscious households into the program. The improvement in purchase quality was driven entirely by WIC participating households who redeemed WIC foods during the interview week. There was no significant difference between WIC participants who did not redeem WIC foods and eligible nonparticipants. In this sample, there is no evidence that lack of access to clinics has adverse effects on participation nor is there evidence that HPI depends on supermarket access. A supervised machine learning process supports our main conclusion on the importance of WIC foods.     

Identifying the Effects of WIC on Food Insecurity Among Infants and Children

The Women, Infants, and Children (WIC) Program is considered a crucial component of the social safety net in the United States, yet there is limited supporting evidence on the effects of WIC on the nutritional well‐being and food security of infants and young children. Using data from the National Health and Nutrition Examination Survey, we apply recently developed partial identification methods to jointly account for unobserved counterfactual outcomes and systematic underreporting of WIC participation. Under nonparametric assumptions, we find that WIC reduces the prevalence of child food insecurity by at least 3.6 percentage points (20%).     

Does birth spacing affect female labor market participation? Evidence from urban China

This paper investigates the impact of birth spacing on female labor market participation in urban China. Employing household panel surveys between 1989 and 2011 and exploiting variations in time intervals between the first and second child, we find that spacing births at longer intervals significantly increases female labor market participation. The effects of birth spacing are robust to various examinations that consider nonlinear specifications, selection on observed and unobserved variables, and the plausibly exogenous instrument. The heterogeneous analysis suggests that the effects of birth spacing are more pronounced in women with a daughter as the first birth, women with late first birth, and less-educated women. We examine potential mechanisms and document that women with longer birth intervals are likely to invest more in continuing education and have better health status.     

Removing the “Hats of Poverty”: Effects of ending the national poverty county program on fiscal expenditures

This paper investigates the effect of the cancellation of China's program of “national poverty counties”—a place-based policy—on county-level fiscal expenditures. Our difference-in-differences results indicate that the cancellation reduces the county fiscal expenditure-to-GDP ratio by an average of 3.78%. To support a causal interpretation of these findings, we provide two plausible explanations, the reverse flypaper effect and the active/passive waste effect. Our findings survive the consideration of selection bias, omitted-variable bias, and spatial correlation. Policy implications of our findings are also discussed.     

Financial literacy,housing value and household financial market participation: Evidence from urban China

Using data from the 2012 consumer finance survey in China, we extend the literature on household finance by examining the effects of both financial literacy and housing value on household financial market participation, the role of which has been examined separately in the existing literature. The results show that financial literacy significantly improves the probability of household financial market participation, while the housing value has an obvious “crowding-out effect” on household financial market participation in urban China. Further research finds that the role of financial literacy in household financial market participation in households with a low housing value is stronger than that in households with a high housing value. Furthermore, the study of the regional differences shows that among households with a high housing value, financial literacy plays a more significant role in household bond market participation in less-developed cities. Among households with a low housing value, improvement in financial literacy plays a more significant role in household fund market participation in less-developed cities and under-developed cities. Our findings remain robust after alleviating potential bias due to endogenous problems by applying the instrumental variable (IV) method and propensity score matching (PSM) method. Finally, the paper proposes corresponding policy recommendations.     

Economic returns to schooling in urban China: OLS and the instrumental variables approach

This paper examines economic returns to schooling in urban China using ordinary least square (OLS) and instrumental variable (IV) methodologies. First, we find that OLS estimates of the returns to education are lower in China than in other transition economies, whereas IV estimates are higher in China. Second, we find that OLS, a method for estimating the returns to education without control for endogeneity bias, may underestimate the true rates of return for men. In addition, if we do not control for endogeneity bias and the sample selection bias, we may further underestimate the true rates of return for women. Finally, we find that OLS estimates of the returns to education for men are slightly higher than for women. The IV estimates for women are higher than those for men, and this difference increases after correcting for selectivity biases.     

The Food (In)Security Impact of Land Redistribution in South Africa: Microeconometric Evidence from National Data

The South African land-reform program has been widely criticized for its slow pace as well as its apparent lack of contribution to poverty reduction. No econometric evidence of the impact of land transfers has been provided to date and this paper attempts to fill this gap by considering the impact of receiving a land grant on households’ food insecurity. Propensity score matching and univariate probit estimates using two national household surveys indicate that, on average, land grant recipients are more food insecure than comparable non-participants. Recursive bivariate probit estimates suggest that selection bias is not driving this result.     

Social networks,rice value chain participation and market performance of smallholder farmers in Ghana

This paper examines the impact of rice value chain participation and social networks on smallholder farmers' market performance outcomes (paddy price, quantity of paddy traded, and net returns), using data from a recent survey of 458 smallholder rice farmers in northern Ghana. We employed a treatment effects model to account for potential selection bias associated with observable and unobservable factors. The empirical results reveal that smallholder farmers' participation in a rice value chain is associated with increased paddy price, quantity traded, and net returns. We also find that value chain participation decisions and market performance are positively and significantly influenced by social networks. The empirical results also suggest that sex, farm size, mobile phone ownership, and access to credit significantly increase paddy prices, quantity traded, and net returns of smallholder rice farmers in the value chain.     

The externalities of preschool attendees in middle school classes

Using a nationally representative survey dataset on middle school students in China, this paper examines whether and how exposure to more classmates with a preschool experience affects students' cognitive and non-cognitive outcomes. We make use of the random class assignment rule, required by China's education law, to address the potential selection bias from class sorting. Our results show that exposure to more classmates with a longer preschool duration significantly improves students' cognitive and non-cognitive outcomes, whereas exposure to more classmates with a shorter preschool duration does not have such significantly positive effects, offering evidence of the dosage effects of attending a preschool program from the perspective of externalities. We further demonstrate three possible mechanisms through which the effects operate and quantify the explanatory power of each mechanism in driving the effects.     

Heading for the Hills? Effects of Community Flood Management on Local Adaptation to Flood Risks

The Community Rating System (CRS) program was implemented by the U.S. Federal Emergency Management Agency (FEMA) in 1990 as an optional program to encourage communities to voluntarily engage in flood mitigation initiatives. This article uses national census tract‐level data from 1980 to 2010 to estimate whether CRS participation and flood risk affect a community's local patterns of population change. We employ an instrumental‐variables strategy to address the potential endogeneity of CRS participation, based on community‐scale demographic factors that predict when a tract's host community joins the CRS. The results find significant effects of the CRS program and flood risk on population change. Taken together, the findings point to greater propensity for community‐scale flood management in areas with more newcomers and programs such as CRS stabilizing population, though not especially in flood‐prone areas. We observe the CRS neither displacing population toward lower‐risk areas nor attracting more people to flood‐prone areas.     

The Causal Effects of Participation in the American Economic Association Summer Minority Program

This article examines whether participation by underrepresented minority groups in the American Economics Association Summer Minority Program (AEASMP) has causal effects on outcomes associated with success as academic economists. We estimate both propensity score weighted and Heckit parameter estimates of (1) the average effect of treatment and (2) the effect of treatment on the treated. Our results, which vary across specifications of potential outcomes and propensity score truncated samples, suggest that AEASMP participation by black American Ph.D. economists has a positive and causal impact on 4 outcomes associated with success as an academic economist. However if the probability of selection into the treatment by the nontreated is similar to that of the treated, the results suggest that AEASMP participation by black American Ph.D. economists has a positive and causal effect on research productivity and in gaining access to research funding.     

Teachers’ unions and industrial action in South African primary schools: Exploring their impacts on learning

ABSTRACT

This paper investigates a disruption hypothesis that student learning is lost as a direct consequence of teacher strike action in South Africa. At face value estimates from a within-student across-subject analysis suggest that teacher strike participation negatively affects learning for students in the poorest three quarters of schools. Strike action also limits access to nutrition as school closures prevent student participation in daily school feeding programmes. However, despite controlling for student and school level factors that may drive teacher selection into strike participation, unobserved teacher characteristics continue to bias estimates. Assuming that selection on observable characteristics can tell us something about selection on unobservable characteristics, there is an implied negative selection of teachers into strike participation.     

Optimal Tax Theory: The Journey from the Negative Income Tax to the Earned Income Tax Credit

What lessons do we learn from optimal tax theory for the design of income redistribution programs? I modify a standard model of optimal nonlinear income taxation with discrete types to consider differences in both earning ability and the disutility of effort. This gives a role for “workfare” in the optimal tax policy. The existence of screening mechanisms can play a role in explaining non‐participation in cash and in‐kind redistribution programs, including Progresa‐Oportunidades, Lifeline Telephone subsidies, and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). Stigma can increase efficiency of a redistribution program by discouraging participation by individuals near the eligibility thresholds. The Family Assistance Program proposed in the early 1970s lacked adequate stigma for nonworkers, which contributed to a lack of political support. In contrast, the current Earned Income Tax Credit (EITC) provides greater benefits to workers than to nonworkers. Thus the EITC does not require any stigma to screen out individuals who do not work from obtaining benefits. Reasons for separate income support programs for nonworkers and for workers are discussed.     

Farmers' Access to Markets: The Case of Cotton in Pakistan

Using a cross‐sectional primary dataset collected from a survey of 325 farmers in the seven highest cotton‐producing districts of Punjab Province of Pakistan, the present paper examines cotton farmers' market participation decisions, and the factors driving participation, as well as the impact of participation on net returns. Tobit and censored least absolute deviation models were used to estimate the participation of farmers in markets, and the Heckman two‐stage approach and the propensity score matching method were applied to analyze the impact of participation on net returns, taking into account potential selection bias. The empirical results revealed that households with more education, wealth, and better transport facilities are more likely to participate in the markets. As the distance to market increases, households prefer to sell at the farm gate rather than the market. The results also indicated that households that sell their goods at the market obtain higher net returns than those selling at the farm gate.     

When left-behind children become adults and parents: The long-term human capital consequences of parental absence in China

This study examines the long-term effects of childhood left-behind experience on human capital outcomes across two generations in China. Using data from the China Family Panel Studies (CFPS), we find evidence that adults with left-behind experience in early life have fewer schooling years, lower cognitive test scores, a lower Big Five personality traits index, but a higher internal locus of control. Meanwhile, they are more likely to report underweight, chronic diseases, depression, and lower levels of perceived health and happiness. Our findings of the negative consequences on personality traits and health outcomes are robust to a battery of specification and validity tests. These effects also differ markedly by adults' gender, birth cohort, hukou status, and the characteristics of left-behind experience (i.e., type, timing, and duration). Further, our results also suggest a potential intergenerational transmission mechanism in which human capital loss is induced by one's early-life exposure to parental absence. Specifically, one's childhood left-behind experience is also inversely associated with their offspring's outcomes such as Big Five noncognitive skills, birth weight, and height-for-age z-score. Although adults with left-behind experience are inclined to spend more time with offspring compared with their non-left-behind counterparts, they also tend to have significantly poorer household socioeconomic outcomes and less offspring educational investment.     

Hispanic Self-identification and Birth Weight Outcomes among U.S.- and Foreign-born Blacks

Black infants are more likely to suffer from poor health at birth compared to non-blacks. However, most existing infant health research focuses solely on non-Hispanic blacks and fails to consider the role of ethnic self-identification on infant health disparities. Using 2002 Vital Statistics Natality Data, this paper investigates whether Hispanic ethnicity is related to birth weight among U.S.- and foreign-born black mothers. The results from regression analyses suggest that Hispanic blacks give birth to heavier infants than non-Hispanic blacks. Maternal behaviors such as prenatal care and smoking fail to explain these birth weight differences. However, the observed within-group birth weight differences among blacks are far more modest compared to the black-white birth weight disparities identified in the extant literature. Thus, while it is important to pay attention to within-group differences among blacks, it is still critical to address the needs of black Hispanics with respect to racial disparities in infant health outcomes.     

Family size,labor supply,and job prestige: Evidence from three decennial censuses in China

This study investigates the relationship between family size and parents’ labor market performance, measured by labor supply and occupational prestige scores, based on three census waves in 1990, 2000, and 2010. To address the endogeneity problem of family size, we use the indicator of twins at first birth as an instrumental variable. Our results suggest that in nuclear households, family size affects the labor market performance only of mothers, not of fathers, with the negative effects fading and gradually disappearing over time. More specifically, an increase in family size decreases female labor supply in the 1990 wave, leads to lower prestige scores among working mothers in the 2000 wave, and has no impact on labor supply or occupational prestige scores in the 2010 wave. Our subsample analysis indicates that the negative effects of family size are more severe for parents of households with all children under seven years old and for husbands or wives with lower education level than that of their partners. In addition, we find that the negative effects of family size on parental labor market outcomes are not observed in extended households, especially when no grandparents are aged 65 years or older.     

Political Party Impacts on Direct Democracy: the 2015 Greek Austerity Referendum

On July 5, 2015, Greek voters were asked whether to approve or reject the terms of an austerity program offered by the European Union (EU) to resolve an ongoing financial crisis. With a turnout rate of 62.5% overall, 61.3% of Greeks voted “no.” While a majority of voters in every district opposed the bailout’s terms, the margin against the proposed austerity measures ranged from 51.2% in Lakonias to 73.8% in Chanion. This paper presents empirical evidence on the determinants of the “no” vote across Greece’s 56 electoral districts. Our analysis is grounded in public choice theories of why large numbers of people turn out to vote in mass elections. In addition to controlling for standard “instrumental” vote motives, we ask whether political party labels, which serve as summary measures of partisan positioning, and party platforms, which express partisan preferences on ballot questions, are salient in determining electoral outcomes. Holding constant the unemployment rate and average voter age (at the regional level) and the fraction of young people casting ballots for the first time on July 5, 2015 (at the district level), we find that the percentage of ‘no’ votes was reduced significantly by voter support for Greece’s leading pro-austerity party (New Democracy) in the previous nationwide election held in January 2015. In contrast, voter support in January for the anti-austerity party (Syriza), led by sitting Prime Minister Alexis Tsipras, had no measurable impact on July’s referendum results. This finding offers support for both instrumental and expressive theories of voting and bolsters the claim that political parties can shape electoral outcomes on questions decided by an institution of direct democracy.     

Light pollution,sleep deprivation,and infant health at birth

We conduct the first study to examine the fetal health impact of light pollution based on a direct measure of skyglow, an important aspect of light pollution. Using an empirical regularity discovered in physics (called Walker's law) as an instrumental variable, we address the potential endogeneity problem associated with the skyglow variable. We find evidence of reduced birth weight, shortened gestational length, and increases in preterm births. Specifically, increased nighttime brightness, characterized by being able to see only one‐fourth to one‐third of the stars that are visible in the natural unpolluted night sky, is associated with an increase of 1.48 percentage points in the likelihood of a preterm birth. Our study adds to the literature on the impact of early‐life exposure to pollution, which so far has focused primarily on air pollution. Our study has important policy implications regarding the necessity of minimizing skyglow that is, for example, contributed by streetlights.