Search Results

Source: Social Science Electronic Publishing, Inc.
Resulting in 5 citations.
1. Best, Katharina
Keppo, Jussi
A Major Choice: An Examination of Higher Education and Ability-Adjusted Income
Working Paper, Social Science Research Network, January 2014
Cohort(s): NLSY97
Publisher: Social Science Electronic Publishing, Inc.
Keyword(s): College Characteristics; College Major/Field of Study/Courses; Higher Education; Income; School Quality

Permission to reprint the abstract has not been received from the publisher.

We compare annual post-college income across student groups defined by ability levels, school quality, and major using individual-level data from the NLSY 1997. We condition on student ability (quality of the top school admitted to), and study major and school choice together. Elite institution attendance increases post-college income by almost $8,000. Some of this increase is driven by longer working hours. Major choice has a bigger impact on income than school choice. Students majoring in engineering, computer-related fields, and business earn more than humanities and arts majors even after adjusting for ability and hours worked ($23,000 more for top students).
Bibliography Citation
Best, Katharina and Jussi Keppo. "A Major Choice: An Examination of Higher Education and Ability-Adjusted Income." Working Paper, Social Science Research Network, January 2014.
2. Bonaparte, Yosef
Korniotis, George M.
Kumar, Alok
Income Hedging and Portfolio Decisions
Working Paper, Social Science Research Network, July 2013.
Also: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2172846
Cohort(s): NLSY79
Publisher: Social Science Electronic Publishing, Inc.
Keyword(s): Assets; Financial Behaviors/Decisions; Financial Market Participation; Income Risk; Risk-Taking

Permission to reprint the abstract has not been received from the publisher.

We examine whether the decision to participate in the stock market and other related portfolio decisions are influenced by income hedging motives. Economic theory predicts that the market participation propensity should increase as the correlation between income growth and stock market returns decreases. Surprisingly, empirical studies find limited support for the income hedging motive. Using a rich, unique Dutch dataset and the NLSY data from the U.S., we show that when the income-return correlation is low, individuals exhibit a greater propensity to participate in the market and allocate a larger proportion of their wealth to risky assets. Even when the income risk is high, individuals exhibit a higher propensity to participate in the market when the hedging potential is high. These findings suggest that income hedging is an important determinant of stock market participation and asset allocation decisions.
Bibliography Citation
Bonaparte, Yosef, George M. Korniotis and Alok Kumar. "Income Hedging and Portfolio Decisions." Working Paper, Social Science Research Network, July 2013.
3. Cummings, Benjamin F.
Finke, Michael S.
James, Russell N. III
Bounded Rationality Strikes Again: The Impact of Cognitive Ability and Financial Planners on Roth IRA Adoption and Ownership
Working Paper, Social Science Research Network, March 2013.
Also: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1968984
Cohort(s): NLSY79
Publisher: Social Science Electronic Publishing, Inc.
Keyword(s): Armed Forces Qualifications Test (AFQT); Cognitive Ability; Financial Behaviors/Decisions; Financial Investments; Savings

Permission to reprint the abstract has not been received from the publisher.

Roth IRAs were introduced in the late 1990s and provide another option for tax-sheltered retirement savings. Because determining the benefits of a Roth IRA is a complex decision, we hypothesize that cognitive ability and having a financial planner have significant impacts on the timing and likelihood of using a Roth IRA. Using data primarily from the 2004 and 2008 administrations of the National Longitudinal Survey of Youth (NLSY), we find that greater cognitive ability and having a financial planner are both positively related to Roth IRA ownership and earlier adoption. If individuals with higher cognitive ability and/or a financial planner are better able to recognize and implement beneficial tax strategies, then tax policy will yield unintended distributional consequences. The complexity of a tax policy also limits its ability to modify individual behavior in the ways envisioned by policymakers.
Bibliography Citation
Cummings, Benjamin F., Michael S. Finke and Russell N. III James. "Bounded Rationality Strikes Again: The Impact of Cognitive Ability and Financial Planners on Roth IRA Adoption and Ownership." Working Paper, Social Science Research Network, March 2013.
4. Ward, Shannon
Williams, Jenny
Does Juvenile Delinquency Reduce Educational Attainment?
Working Paper, Social Science Research Network, July 2014.
Also: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2469675
Cohort(s): NLSY97
Publisher: Social Science Electronic Publishing, Inc.
Keyword(s): College Graduates; Crime; Delinquency/Gang Activity; Educational Attainment; High School Completion/Graduates

Permission to reprint the abstract has not been received from the publisher.

This paper investigates the effect of delinquency in youth on subsequent educational attainment. To do so, we focus on delinquent acts committed by age 16 and examine their impact on two measures of educational attainment: high school graduation and college graduation. Using information on males from the extremely rich National Longitudinal Survey of Youth 1997, we find plausible evidence that delinquency by age 16 reduces the likelihood of graduating from high school and college. This effect is driven by early initiators, those who offend intensely, and by those whose delinquent activities involve income generating acts. Importantly, the impact of delinquency on education is not confined to those who have interaction with the criminal justice system, or gang members. Further analysis suggests that a mechanism through which delinquency impacts on education is expected returns to crime, as reflected by subjective beliefs about the probability of arrest for a property crime. This effect is stronger for those of higher ability and is robust to accounting for attitude to risk.
Bibliography Citation
Ward, Shannon and Jenny Williams. "Does Juvenile Delinquency Reduce Educational Attainment?" Working Paper, Social Science Research Network, July 2014.
5. Yörük, Ceren Ertan
Yörük, Baris K.
Do Minimum Legal Tobacco Purchase Age Laws Work?
Working Paper, Social Science Research Network, June 2014.
Also: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2463595
Cohort(s): NLSY97
Publisher: Social Science Electronic Publishing, Inc.
Keyword(s): Geocoded Data; Legislation; Smoking (see Cigarette Use)

Permission to reprint the abstract has not been received from the publisher.

This paper uses a regression discontinuity design to estimate the impact of the minimum legal tobacco purchase age (MLTPA) laws on smoking behavior among young adults. Using data from the confidential version of National Longitudinal Survey of Youth (1997 Cohort), which contains information on the exact birth date of the respondents, we find that the impact of the MLTPA on several indicators of smoking among youth is minor and often insignificant. However, we also show that granting legal access to cigarettes and tobacco products at the MLTPA leads to an increase in several indicators of smoking participation, including up to a 5 percentage point increase in the probability of smoking for males and for those who reported to have smoked before. These results are robust under several alternative model specifications and imply that policies that are designed to restrict youth access to tobacco are only effective in reducing smoking participation among certain groups of young adults.
Bibliography Citation
Yörük, Ceren Ertan and Baris K. Yörük. "Do Minimum Legal Tobacco Purchase Age Laws Work?" Working Paper, Social Science Research Network, June 2014.