Investors’ Limited Attention: Evidence from REITs

The Journal of Real Estate Finance and Economics - This paper examines the degree to which the market prices of publicly traded firms reflect and respond to new information regarding the economic...     

Poverty in US Lesbian and Gay Couple Households

Poverty is a widely researched topic in economics. However, despite growing research on the economic lives of lesbians and gay men in the United States since the mid 1990s, very little is known about poverty in same-sex couple households. This study uses American Community Survey data from 2010 to 2014 to calculate poverty rates for households headed by different-sex versus same-sex couples. Comparing households with similar characteristics, the results show that those headed by same-sex couples are more likely to be in poverty than those headed by different-sex married couples. Despite that overall disadvantage, a decomposition of the poverty risk shows that same-sex couples are protected from poverty by their higher levels of education and labor force participation, and their lower probability of having a child in the home. Lastly, the role of gender – above and beyond sexual orientation – is clear in the greater vulnerability to poverty for lesbian couples.     

Does ethnic diversity decrease economic interactions? Evidence from exchange networks in rural Gambia

Using a unique dataset collected in 59 rural Gambian villages, we study how ethnic heterogeneity is related to the structure of four economic exchange networks: land, labour, inputs and credit. We find that different measures of village‐level ethnic fragmentation are mostly uncorrelated with network structure. At a more disaggregated level, household heads belonging to ethnic minorities are not less central than those from the predominant ethnicity in any of the networks and, at the dyadic level, the fact that two households share ethnicity is not an economically significant predictor of link formation. Our results indicate that, in the particular setting of our study, the structure of the exchange networks is better defined by other variables than ethnicity and that ethnic heterogeneity is unlikely to be a driver for sub‐optimal economic exchanges.     

Estimating within‐cluster spillover effects using a cluster randomization with application to knowledge diffusion in rural India

Spillover effects within randomized clusters pose a challenge for identifying impacts of an individualized treatment. The paper proposes a solution. Longitudinal and intra‐household observations are combined in estimating the direct knowledge gain from watching an info‐movie in rural India, while randomized village assignment identifies knowledge sharing. Simulations on synthetic data and econometric tests provide support for the estimation method. We find evidence of information sharing, but far less so for disadvantaged groups, such as illiterate and lower‐caste individuals; these groups rely more on actually seeing the movie. Our results are consistent with sizeable biases in ordinary least squares, matching or instrumental variable impact estimators that ignore within‐cluster spillovers.     

Telling and selling the value of diversity and inclusion—External consultants' discursive strategies and practices

On the basis of a qualitative study of a subgroup of diversity professionals, external diversity and inclusion (D&I) consultants, we explore D&I consultants' discursive strategies and practices situated within organisational structures, relations, and interactions of power and knowledge. Theoretically, the research reveals how D&I consultants' own discursive strategies interact with existing organisational and societal discourses of diversity, incrementally shaping their continual evolution. A classification is developed, which sets out four approaches taken by consultants with regard to their discursive strategies in relation to clients. The findings suggest that HR practitioners need to work in tandem with external consultants to develop strategies to improve the status and legitimacy of diversity work if the field is to progress the organisational D&I agenda.     

Information in stock prices: the case of the 2016 U.S. presidential election

On the day before the 2016 U.S. presidential election, the odds of Hillary Clinton winning the presidency, according to political prediction markets, were above 90%. Surprisingly, Donald Trump won the Electoral College handily. In this study, we examine how movements in specific stock prices foreshadowed the eventual outcome. Specifically, we conduct a series of standard event-study tests focused on pharmaceutical companies, which became a focal point during the presidential campaign. Results show that while stocks of pharmaceutical companies significantly underperformed the market prior to the election, prices substantially increased beginning three days before the election outcome. This increase is both statistically significant and economically meaningful and robust to various event-study methodologies. These results suggest that some sectors of the stock market seemed to anticipate the election outcome.     

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.