Grant Category

Human Capital and Wellbeing

How does economic inequality affect the development of human capital, and to what extent do aggregate trends in human capital explain inequality dynamics?

The acquisition and deployment of human capital in the market drives advances in productivity. The extent to which someone is rich or poor, experiences family instability, faces discrimination, or grows up in an opportunity-rich or opportunity-poor neighborhood affects future economic outcomes and can subvert the processes that lead to productivity gains, which drive long-term growth.

How does economic inequality affect the development of human capital, and to what extent do aggregate trends in human capital explain inequality dynamics? To what extent can social programs counteract these underlying dynamics? We are interested in proposals that investigate the mechanisms through which economic inequality might work to alter the development of human potential across the generational arc, as well as the policy mechanisms through which inequality’s potential impacts on human capital development and deployment may be mitigated.

  • Economic opportunity and intergenerational mobility
  • Economic instability
  • Family stability
  • Neighborhood characteristics

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Economic impacts of mentoring for disadvantaged youth: RCT evidence

Grant Year: 2018

Grant Amount: $15,000

Grant Type: doctoral

This project investigates what role mentoring can play in economic mobility for disadvantaged youth. To answer the question, Bell plans to link tax records to a dataset of youth applicants to a Big Brothers Big Sisters youth mentoring program. Early economic thinking on the intergenerational perpetuation of disadvantage focused primarily on financial channels. Recent work, however, including some funded by Equitable Growth, has highlighted the importance of childhood environments as a key determinant of success. An initial study found significant positive social outcomes among youth who received mentorship at the close of the 18-month Big Brothers Big Sisters program. Outcomes of interest include college attendance, income and employment, teenage birth, incarceration, and reliance on government assistance. This project will build on Bell’s earlier work with Chetty et al. that shows children who grow up near inventors are not only more likely to become inventors, but also are more likely to invent in similar technologies. A better understanding of the role of social exposure will help identify mechanisms of mobility.

Trends in earnings volatility using linked administrative and survey data

Grant Year: 2018

Grant Amount: $60,749

Grant Type: academic

There is currently a debate in the literature about whether income volatility has increased or decreased over the past decade. To help resolve this, the researchers will link the Current Population Survey to the Social Security Administration’s detailed earnings records data. This unique data is essential for understanding earnings, as previous research demonstrates that earnings in household surveys differ from those measured in administrative data—especially at the top and bottom of the income distribution. Determining whether the recent increase in income volatility (as shown in papers using household survey data) also occurs in the administrative earnings data is important in evaluating the changing well-being of individuals and families. It also impacts the measures of inequality. Decreasing volatility may suggest decreasing inequality, which contradicts many recent estimates of the change in inequality in the United States. This work is critical to understanding the nature of inequality in the United States today and the level of income volatility Americans may be experiencing.

The historical shadow of segregation on human capital and upward mobility

Grant Year: 2017

Grant Amount: $73,740

Grant Type: academic

This project expands on recent path-breaking work that has documented substantial variation in rates of social mobility across locations in the United States. Where children grow up has a strong influence on the probability that they will earn more than their parents in adulthood, with some regions highly mobile and others lagging far behind. This research suggests that regional differences in opportunity might be explained not only by contemporary characteristics but also by historical disparities. The researchers will merge the Panel Study of Income Dynamics (PSID) with Raj Chetty and others’ Equality of Opportunity dataset, and the Logan-Parman index of inequality, providing a profound advancement in the literature with strong policy implications.

The optimal design of parental leave policies and gender equality: mismatch of skills across genders

Grant Year: 2017

Grant Amount: $15,000

Grant Type: doctoral

The goal of this study is to understand the welfare consequences from long-term skill mismatches due to childbirth and how maternity leave policies can help alleviate such mismatches. This research focuses on job match quality between men and women through joint decision-making, and its contribution to the gender wage gap. While the gender wage gap has been studied in relation to occupation or sector type, the job match paradigm within the context of household decision-making is less understood. Findings will be relevant to discussions of effective federal paid leave policies, among others.

The impact of paid maternity leave: evidence from temporary disability insurance in Rhode Island

Grant Year: 2017

Grant Amount: $40,000

Grant Type: academic

This research explores how maternity leave affects mothers and their children. Much of the work on paid maternity leave in the United States has focused on the labor supply effect for women, with a small literature on health effects for children. Using a set of linked administrative data from the state of Rhode Island, this project will examine a more extensive set of outcomes for both mothers and children. In addition, the research will look at maternal and child outcomes for individuals across the income distribution, providing needed nuance to assess various policy options.

The effect of government cash assistance on household credit access and use

Grant Year: 2016

Grant Amount: $100,000

Grant Type: academic

This team of young, promising applied economists seeks to quantify how public assistance affects households’ financial well-being through increasing access to credit. We know little about the interactions between social safety net programs and the financial well-being of families. This paper uses a credible and proven research design to provide new evidence to better our understanding of the role of credit markets in the lives of the poor. By matching individual credit data to administrative data, the authors will estimate the effects of removing low-income youth with disabilities from Supplemental Security Income on credit access, secured borrowing, and payday loan borrowing for the youth and their families. There is great interest in this broad subject, and precious few ways to tease out causal impacts. Yet with cutting-edge methods and use of administrative data, the authors will attempt to do so.

Experts

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Janelle Jones

Washington Center for Equitable Growth

Vice President of Policy and Advocacy

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Grantee

Linh Tô

Boston University

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Till von Wachter

University of California, Los Angeles

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Fern Ramoutar

University of Chicago

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Corey Shdaimah

University of Maryland

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Our funding interests are organized around the following four drivers of economic growth: the macroeconomy, human capital and the labor market, innovation, and institutions.

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