BEYOND TEST SCORES: THE IMPACT OF BLACK TEACHER ROLE MODELS ON RIGOROUS MATH TAKING

Rigorous math has a positive impact on ultimate educational attainment and earnings, but black high school students enroll in advanced math classes at low rates. Curriculum choice is determined by prior academic achievement and expectations for future schooling, both of which can be influenced by role models. This article finds that increasing the percentage of math teachers who are black has a nontrivial, positive impact on the likelihood that a black geometry student will enroll in a subsequent rigorous math course. This race-based role model effect occurs only for opposite-sex student/teacher matches.     

Watch What I Do,Not What I Say: The Unintended Consequences of the Homeland Investment Act

The Homeland Investment Act provided a tax holiday for the repatriation of foreign earnings. Advocates argued the Act would alleviate financial constraints by reducing the cost to U.S. multinationals of accessing internal capital. This paper shows that repatriations did not increase domestic investment, employment, or R&D—even for firms that appeared to be financially constrained or lobbied for the holiday. Instead, a $1 increase in repatriations was associated with a $0.60 to $0.92 increase in shareholder payouts. Regulations intended to restrict such payouts were undermined by the fungibility of money. Results indicate that U.S. multinationals were not financially constrained and were well‐governed.