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Author: Silverman, Daniel Susman

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1.	Fang, Hanming Silverman, Daniel Susman
1.	Measuring Time-inconsistency: Evidence from Work-Welfare Decisions in NLSY Working Paper, Department of Economics, Yale University, February 2001. Also: http://www.econ.yale.edu/seminars/apmicro/am01/fang-010213.pdf Cohort(s): NLSY79 Publisher: Department of Economics, Yale University Keyword(s): Aid for Families with Dependent Children (AFDC); Labor Supply; Maternal Employment; Time Inconsistency; Time Preference; Welfare Permission to reprint the abstract has not been received from the publisher. This paper applies a model of potentially time-inconsistent preferences to the problem of dynamic labor supply and welfare program participation. From panel data on the choices of single women with children, we provide estimates of the degree of time-inconsistency. With these estimates we can quantify the utility loss stemming from the inability to commit to future decisions, and the potential value of commitment mechanisms such as welfare time limits.
	Bibliography Citation Fang, Hanming and Daniel Susman Silverman. "Measuring Time-inconsistency: Evidence from Work-Welfare Decisions in NLSY." Working Paper, Department of Economics, Yale University, February 2001.

2.	Fang, Hanming Silverman, Daniel Susman
2.	Time-Inconsistency and Welfare Program Participation: Evidence from the NLSY International Economic Review 50,4 (November 2009): 1043-1077. Also: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1495267 Cohort(s): NLSY79 Publisher: Blackwell Publishing, Inc. => Wiley Online Keyword(s): Aid for Families with Dependent Children (AFDC); Labor Supply; Maternal Employment; Parents, Single; Time Inconsistency; Time Preference; Welfare We empirically implement a dynamic structural model of labor supply and welfare program participation for agents with potentially time-inconsistent preferences. Using panel data on the choices of single women with children from the National Longitudinal Surveys (NLSY) 1979, we provide estimates of the degree of time-inconsistency, and of its influence on the welfare take-up decision. With these estimates, we conduct counterfactual experiments to quantify a measure of the utility loss stemming from the inability to commit to future decisions, and the potential gains from commitment mechanisms such as welfare time limits and work requirements.
	Bibliography Citation Fang, Hanming and Daniel Susman Silverman. "Time-Inconsistency and Welfare Program Participation: Evidence from the NLSY ." International Economic Review 50,4 (November 2009): 1043-1077.

3.	Fang, Hanming Silverman, Daniel Susman
3.	Time-Inconsistency and Welfare Program Participation: Evidence from the NLSY Cowles Foundation Discussion Paper No. 1465, Cowles Foundation for Research in Economics, Yale University, July 2005. Cohort(s): NLSY79 Publisher: Cowles Foundation for Research and Economics, Yale University Keyword(s): Aid for Families with Dependent Children (AFDC); Labor Supply; Maternal Employment; Time Inconsistency; Time Preference; Welfare Permission to reprint the abstract has not been received from the publisher. We empirically implement a dynamic structural model of labor supply and welfare program participation for agents with potentially time-inconsistent preferences. Using panel data on the choices of single women with children from the NLSY 1979, we provide estimates of the degree of time-inconsistency, and of its influence on the welfare take-up decision. With these estimates, we conduct counterfactual experiments to quantify the utility loss stemming from the inability to commit to future decisions, and the potential utility gains from commitment mechanisms such as welfare time limits and work requirements.
	Bibliography Citation Fang, Hanming and Daniel Susman Silverman. "Time-Inconsistency and Welfare Program Participation: Evidence from the NLSY." Cowles Foundation Discussion Paper No. 1465, Cowles Foundation for Research in Economics, Yale University, July 2005.

4.	Persico, Nicola Postlewaite, Andrew Silverman, Daniel Susman
4.	The Effect of Adolescent Experience on Labor Market Outcomes: The Case of Height PIER Working Papers 01-050, Penn Institute for Economic Research, Philadelphia PA, November 2001. Also: http://www.econ.upenn.edu/system/files/01-050.pdf Cohort(s): NLSY79 Publisher: Penn Institute for Economic Research (PIER) Keyword(s): Cross-national Analysis; Gender Differences; Height; Human Capital; Labor Market Outcomes; NCDS - National Child Development Study (British); Racial Differences; Socioeconomic Status (SES); Wage Determination; Wage Gap Permission to reprint the abstract has not been received from the publisher. Taller workers receive a wage premium, and the disparity in wages is similar in magnitude to the race and gender gaps. We exploit the variation in an individual's height over time to explore the way in which height affects wages. Specifically we show that for white males, the effect of adult height is essentially eliminated when adolescent height is taken into account. We take this as evidence that adolescent height has important economic implication long after the time that it is obserservable to others, and we explore the channels through which the effects might be manifested.
	Bibliography Citation Persico, Nicola, Andrew Postlewaite and Daniel Susman Silverman. "The Effect of Adolescent Experience on Labor Market Outcomes: The Case of Height." PIER Working Papers 01-050, Penn Institute for Economic Research, Philadelphia PA, November 2001.

5.	Persico, Nicola Postlewaite, Andrew Silverman, Daniel Susman
5.	The Effect of Adolescent Experience on Labor Market Outcomes: The Case of Height Journal of Political Economy 112,5 (October 2004): 1019-1053. Also: http://www.jstor.org/stable/full/10.1086/422566 Cohort(s): NLSY79 Publisher: University of Chicago Press Keyword(s): Athletics (see SPORTS); Height; NCDS - National Child Development Study (British); Sports (also see ATHLETICS); Wage Levels; Wages Taller workers receive a wage premium. Net of differences in family background, the disparity is similar in magnitude to the race and gender gaps. We exploit variation in an individual's height over time to explore how height affects wages. Controlling for teen height exxentially eliminates the effect of adult height on wages for white men. The teen height premium is not explained by differences is resources or endowments. The teen height premium is partially mediated through participation in high school sports and clubs. We estimate the monetary benefits of a medical treatment for children that increases height.
	Bibliography Citation Persico, Nicola, Andrew Postlewaite and Daniel Susman Silverman. "The Effect of Adolescent Experience on Labor Market Outcomes: The Case of Height." Journal of Political Economy 112,5 (October 2004): 1019-1053.

6.	Postlewaite, Andrew Silverman, Daniel Susman
6.	Social Isolation and Inequality Working Paper, Penn Institute for Economic Research, University of Pennsylvania, April 2004. Also: http://ssrn.com/abstract=536184 Cohort(s): NLSY79 Publisher: Penn Institute for Economic Research (PIER) Keyword(s): Athletics (see SPORTS); Bayesian; High School; Sports (also see ATHLETICS); Wages, Adult Permission to reprint the abstract has not been received from the publisher. There is an increasing interest in the concept of social exclusion and the related concept of social isolation and their potential role in understanding inequality. We examine the degree to which voluntary separation from social activities during adolescence affects adult wages. It is well-known that participation in high school athletic programs leads to higher adult wages. We present empirical evidence that this premium is not primarily due to selection on predetermined characteristics valued in the labor market.... Using data from the National Longitudinal Survey of Youth (NLSY), 1979 cohort we show first that there is a substantial wage premium associated with having been a high school athlete. ... In 1984, retrospective questions about participation in high school athletics were asked only of those who had finished or were expected to finish high school.
	Bibliography Citation Postlewaite, Andrew and Daniel Susman Silverman. "Social Isolation and Inequality." Working Paper, Penn Institute for Economic Research, University of Pennsylvania, April 2004.

7.	Postlewaite, Andrew Silverman, Daniel Susman
7.	Social Isolation and Inequality, Second Version PIER Working Paper No. 05-001, Penn Institute for Economic Research (PIER), December 21, 2004. Also: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=643543 Cohort(s): NLSY79 Publisher: Penn Institute for Economic Research (PIER) Keyword(s): Athletics (see SPORTS); Bayesian; High School; Sports (also see ATHLETICS); Wages, Adult Permission to reprint the abstract has not been received from the publisher. There is an increasing interest in the concept of social exclusion and the related concept of social isolation and their potential role in understanding inequality. We examine the degree to which voluntary separation from social activities during adolescence affects adult wages. It is well-known that participation in high school athletic programs leads to higher adult wages. We present empirical evidence that this premium is not primarily due to selection on predetermined characteristics valued in the labor market. Note: A previous version of this abstract can be found at: http://ssrn.com/abstract=536184
	Bibliography Citation Postlewaite, Andrew and Daniel Susman Silverman. "Social Isolation and Inequality, Second Version." PIER Working Paper No. 05-001, Penn Institute for Economic Research (PIER), December 21, 2004.

8.	Silverman, Daniel Susman
8.	Non-market Determinants of Human Capital Accumulation: Theory and Evidence Ph.D. Dissertation, University of Pennsylvania, 2002 Cohort(s): NLSY79 Publisher: UMI - University Microfilms, Bell and Howell Information and Learning Keyword(s): Behavior, Violent; Crime; Gender Differences; Human Capital Theory; Labor Market Outcomes; Labor Supply; Modeling; Racial Differences; Time Preference; Underclass; Welfare Crime and reputation. A model of social interaction is developed in which individuals with varying payoffs from street crime meet in an environment with incomplete information. The value of a reputation for violence is demonstrated. Those who do not gain from street crime directly nevertheless invest in violence and thereby build a reputation that will earn them deference from the rest of the community. It may be that even when the fraction of the population with a direct interest in street crime is small a larger proportion will necessarily participate in violence in pursuit of reputation. Thus the model explains how a social force (reputation) can support an "underclass" culture of violence in communities where the incentives for such behavior are otherwise weak. The model also reveals how the social structure of a community interacts with returns to crime to determine the value of a street reputation. On the compassion of time-limited welfare programs ( with H. Fang). Supporters of recent welfare reforms argue that time limits and other eligibility restrictions serve recipients. We present a simple model of present-biased preferences to investigate the theoretical validity of this claim. We first identify four types of outcome that describe the behavior of a present-biased agent in the absence of time limits. We then show that the behavioral consequences of time limits are contingent on which outcome characterizes the agent's behavior in the absence of time limits. Under some conditions the imposition of time limits may improve the well-being of welfare recipients evaluated both in terms of long-run, time-consistent utility and the period-one self's utility. This benefit of time limits may come either from allowing the welfare eligible to start working earlier than they otherwise would or, contrary to the intent of the reforms, from allowing them to postpone working. Time-inconsistency and welfare promgram participation: Evidence from the NLSY (with H. Fang). This paper applies a model of potentially time-inconsistent preferences to the problem of dynamic labor supply and welfare program participation. From panel data on the choices of single women with children, we provide estimates of the degree of time-inconsistency, and of its influence on the welfare take-up decision. Estimates of time-discount parameters suggest present-bias in preferences. Simulations of the estimated model indicate that, in states with relatively low welfare benefits, commitment problems lead to significant under-investment in human capital. However, policies such as welfare time limits and work requirements, that provide imperfect commitments to future human capital investment, appear unlikely to generate substantial utility gains for the welfare eligible. The effect of adolescent experience on labor market outcomes: The case of height (with N. Persico and A. Postlewaite ). Consistent with prior studies, we find that taller workers receive a wage premium, and that the disparity in wages is similar in magnitude to the race and gender gaps. Our contribution is to exploit the variation in an individual's height over time to identify the channels through which height affects wages. We show that for white males, the effect of adult height is essentially eliminated when adolescent height is taken into account. We take this as evidence that adolescent height has important economic implications long after the time that it is observable to others, and we explore the channels through which the effects might be manifested.
	Bibliography Citation Silverman, Daniel Susman. Non-market Determinants of Human Capital Accumulation: Theory and Evidence. Ph.D. Dissertation, University of Pennsylvania, 2002.

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