Occupational Licensing of a Credence Good: The Regulation of Midwifery

A general theoretical and empirical model of the impact of regulation on supply and demand (prices and quantities) is developed in this paper. The regulation of midwifery services—of certified nurse-tnidwives (CNMs)—relative to obstetricians (OBs) is analyzed within this framework. Demand-side (quality assurance) effects are distinguished from supply-side (Stigler-Peltzman) effects in the model. Since both unambiguously predict a price increase, we focus on the regulatory impact on quantity. We find, within the empirical model, that while both effects are present, supply-restricting effects dominate quality assurance in the U.S. market for CNM services. When mean regulations are compared to minimum regulations in the sample, CNM births increase from just under 6% of all births to a little over 11%. On net, regulation reduces the quantity of CNM births.     

The impact of diabetes insurance mandates on infant health

Among the factors thought to contribute to lagging improvements in infant health in recent years are increasing obesity and diabetes prevalence among women of childbearing age. This article uses a difference‐in‐difference‐in‐difference empirical strategy to investigate the impact of mandated insurance coverage for diabetes on adverse pregnancy outcomes. Among educated women, who have high rates of coverage through private insurance that is subject to insurance mandates, diabetes mandates are associated with a reduction in low birth weight and premature birth prevalence. These gains are concentrated among older women and are larger for African‐Americans. There is a weaker effect on the prevalence of high birth weight, potentially because of the deleterious effects of an increased probability of pregnancy weight gain in excess of 35 pounds among diabetic women in states with mandates.     

A test of prohibition's effect on alcohol production and consumption using crop yields

The effect of alcohol prohibition in the United States has been the subject of continuing debate. Due to a lack of data, one question that remains unanswered is the effect prohibition had on the actual production of alcohol. This article attempts to answer this question by estimating prohibition's impact on the yields of grains that constitute the principal inputs in alcohol production. Using a variety of data sources and exploiting the variation in timing of state prohibition law adoption, we estimate the effect of prohibition on several measures of crop production. Our preferred identification strategy compares contiguous counties in states with differing prohibition laws. Our findings suggest that state prohibition laws decreased the production of barley and may have increased the production of corn. Using these estimates, we calculate that prohibition decreased alcohol production, and by extension consumption, by at least 18 gallons per adult per year.     

The Effect of Peer and Professor Gender on College Student Performance

The effects of peer and professor gender on student performance have been examined separately but not in conjunction. We augment previous research by including peer and professor gender, as well as their interaction, in estimations of student performance. After controlling for both student and faculty fixed effects we find that female students typically perform better than males, but this performance gap varies depending on the gender of the professor and of the classroom. Overall the effect of professor gender on student performance is small at best if classrooms are predominantly female and much larger if classrooms are predominantly male.     

User Fee Abolition and the Demand for Public Health Care

This research examines the effect of the abolition of user fees in South Africa, a policy implemented in 1994 for uninsured children under the age of six and the elderly uninsured, as well as pregnant and nursing mothers. The analysis focuses on the implementation of the policy and the use of curative public healthcare services by children following strict and fuzzy regression discontinuity designs. The estimates point to statistically insignificant average and local average policy effects, even though the policy appears to have been implemented reasonably effectively, albeit imperfectly. In other words, the policy did not, on average, affect the use of curative public healthcare, at least for those children who should have benefited from the policy.     

Licensing Laws and Implications for Private Investment: The Case of Tanzania*

Abstract: This paper investigates the licensing provisions in the Electricity Ordinance of Tanganyika that are believed to influence private sector investment. There were three main strands to the analytical methodology — textual analysis, actual practice and perceptions of key stakeholders. The findings suggest that there is sufficient evidence to support the belief that the existing licensing laws in Tanzania do not provide the necessary features for attracting private investment, namely clarity, efficiency and transparency. More specifically the Electricity Ordinance of 1931 is so much outdated that it is not fit for amendment; instead it should be considered for revocation and a new law be enacted. The new law should: (a) provide for a clear licensing procedure in the sense that it should specify what activities need licence; who can apply for licence; where one can apply for licence; what documents to fill; (b) provide for efficiency‐enforcing provisions such as stipulating the time frame for the regulator to finish processing an application; (c) provide for a transparent licensing procedure in the sense that it should prescribe a large amount of openness — publishing of applications and that minutes be on open display as required in Uganda and Zimbabwe. The proposed multi‐sector regulator for utilities is a step in the right direction for it reduces the chances for regulatory capture, thus reinforcing transparency in the dealings of the regulator.     

Occupational Safety and the Shift from Common to Individual Fishing Quotas in the Gulf of Mexico

We investigate and measure how a shift from a regime of common property to one of private ownership of fishing rights affected the safety of commercial fishing activity. To deal with overfishing and stock depletion of red snapper and grouper‐tilefish in the Gulf of Mexico (GOM), various regulatory controls, most notably common quotas and seasonal closures, were introduced in the early 1990s. The resulting “fishing derbies” led to an increased number of accidents and fatalities. We show that the subsequently implemented individual fishing quota programs led to a sharp reduction in the number of fatalities, in large part because of lower pressure to make risky trip decisions, in particular under adverse weather conditions.     

The Invisible Hand of Rain in Spending: Effect of Rainfall‐Driven Agricultural Income on Per Capita Expenditure in Ghana

This paper uses a nationally representative household pseudo‐panel dataset for Ghana, a rain‐fed agriculture economy, to investigate whether there is a positive relationship between rainfall‐driven agricultural income and household per capita expenditure. By using the Two Stage Least Squares Instrumental Variable (2SLS‐IV) estimator, it is found that a fall in rainfall‐driven agricultural income leads to a decrease in per capita expenditure. The results show that the gender and the locality of the household head matter in the response of per capita expenditures to rainfall‐driven agricultural income. Female‐headed and rural households are more vulnerable to rainfall‐driven agricultural income changes. The expenditure disaggregation indicates that female‐headed households significantly reduce per capita non‐food expenditure in times of rainfall‐induced agricultural income decrease whilst the response of male‐headed households focuses more on reducing per capita food and remittance expenditures.     

Identifying the causal effect of alcohol abuse on the perpetration of intimate partner violence by men using a natural experiment

Intimate partner violence (IPV) is widespread and has substantial negative consequences. Researchers have documented a strong positive correlation between alcohol abuse and IPV. However, alcohol abuse is potentially endogenous to IPV. We deal with this problem by exploring a unique instrumental variable—the September 11 terrorist attack—in Wave III of the National Longitudinal Study of Adolescent Health. Ordinary least squares results confirm a strong positive correlation between alcohol abuse and IPV. However, our two‐stage least squares results are statistically insignificant. These results indicate that alcohol abuse might not have a causal effect on IPV and, therefore, have important policy implications.     

Impact of Malaria Control on Late and Early Infant Mortality in Senegal

One of the greatest achievements of the twenty‐first century has been the dramatic decline in malaria prevalence notably in endemic developing countries. In this study, we estimate the impact of recent scale up in malaria control in Senegal on neonatal, postnatal and infant mortality. We exploit natural preintervention variation in malaria prevalence to estimate the impact of recent malaria control policy in Senegal. In a difference in differences design, we find a negative and significant effect on neonatal and infant mortality in malaria endemic regions while the impact on postnatal mortality is inconclusive. We rule out competing explanations such as contemporaneous health campaigns, general improvement in health care delivery and pre‐existing regional time trends. We identify a 26.9% and 16.3% reduction in neonatal and infant mortality, respectively, in malaria endemic regions during 2005–2014. We argue that increase in donor funding for malaria control as well as greater involvement of local communities and civil society organization has proven to be effective. However, the impact of malaria control on mortality may vary substantially depending on early or late infant mortality.     

The Hidden Educational Costs of Intensified Immigration Enforcement

The past two decades have witnessed an unprecedented increase in interior immigration enforcement that may have adversely impacted the children of unauthorized migrants—the vast majority of whom are U.S.‐born citizens. Using 2000 through 2013 data from the Current Population Survey, we gauge the impact that intensified interior immigration enforcement in the United States is having on the schooling progression of Hispanic youth with likely unauthorized parents. Intensified enforcement raises the probability of repeating a grade for children ages 6–13 by 14%, and the likelihood of dropping out of school for youth ages 14–17 by 18%. Furthermore, younger children are more responsive to police‐based enforcement, whereas older youth are more responsive to employment‐based enforcement. Awareness of the impacts that current immigration policies have on the children of immigrants is critical in informing the policy debate and in protecting the well‐being of children.     

The Effect of Age Discrimination Laws on Age-Earnings Profiles of Postsecondary Faculty

This study investigates the impact of the abolition of mandatory retirement on earnings profiles of faculty in postsecondary institutions. The Age Discrimination in Employment Act (ADEA) excluded faculty from the protection of age discrimination laws until January 1, 1994, due to perceived adverse effects of this legislation on the academic labor market. After 1994, research has found that more faculty are remaining employed beyond the age of 70 and more institutions are offering early retirement plans. This study adds to the literature by finding that the policy change has steepened age-earnings profiles for cohorts entering the labor market, suggesting a stronger job attachment, and, potentially, efficiency gains.     

The Effect of Social Security Contributions on Coverage and Wages: A Gender Perspective Using a Natural Experiment from Colombia

This article investigates, from a gender and marital status perspective, the effects of pension and health care contributions on the employment and wages of workers covered by social security regulations. To do this, I use as a natural experiment a reform implemented in Colombia during the mid‐1990. In particular I employ a differences‐in‐differences estimation based on an endogenous switching‐regression model that accounts for self‐selection into coverage. My results indicate that, for females, a 10% increase in contributions reduces the relative wages of covered workers by 7.2%. On the other hand, for males, the reform increases the relative wages of covered workers by 7.1%. Among females, the effect is predominantly present in single women. Among men, divorced and widowed workers are the only group not to experience an effect on earnings. For most family groups, the social security reform has no significant effect on coverage.     

The Legacy of Serrano: The Impact of Mandated Equal Spending on Private School Enrollment

In Tiebout's idealized world, families would sort into homogeneous communities. Each family would get its preferred quality of public schools and there would be no demand for private schools. But limited public school options and a demand for religious instruction not permitted in public schools create a market for private schooling. Recently, many state governments have greatly limited districts' freedom to spend what they wish on education, often in response to court rulings to equalize education spending, such as Serrano in California. Funding equalization also affects the level of public school spending in the average state district; if this rises, as it has in many states, private schools become less attractive. Examining private school enrollment in 159 metropolitan areas in 1970, 1980, and 1990, we find that private school enrollments fall as average public spending rises and increase as public spending becomes more equal.     

The Role of Economic Shocks on Health: Evidence from German Reunification

Sudden economic shocks impact the everyday lives of people from one day to the next. A number of studies have examined the association between economic fluctuations and health; however, no consensus on the nature of this relationship has been established. By exploiting the dramatic economic fluctuations following the German Reunification of 1990, which included a sudden change from a socialist to a capitalist system in East Germany, this study examines the association between broad negative economic shocks and health. The article finds that increases in state unemployment rates are associated with large and statistically significant declines in health outcomes. Estimates are stronger for people who became unemployed shortly after reunification, for low‐income individuals, and for East Germans, a group confronted with larger economic fluctuations. When examining potential mechanisms that could explain the observed health deteriorations, the study finds significant reductions in exercise frequency and increases in economic uncertainty and overall stress.