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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Homeownership Disparities and Access to Family Child Care

Grant Year: 2021

Grant Amount: $15,000

Grant Type: doctoral

This project will use longitudinal data from two states to explore racial disparities in access to family child care centers by looking at rates of homeownership and disparities in homeownership by race. Family child care centers—licensed child care centers located within an operator’s home—make up a declining but still substantial proportion of the supply of formal child care. There are many obstacles to licensing a family child care center in a rental property, so areas with low rates of homeownership may experience a lack of access to this often more affordable child care option. Family child care centers also tend to have more flexible hours, making them especially valuable for parents working irregular or unpredictable schedules. Borowsky will conduct a market-definition analysis intended to approximate regions of common demand and supply. He will then evaluate the extent to which low rates of homeownership in a region are associated with low supply of family child care centers.

The Impact of Paid Sick Leave Mandates on Women’s Employment, Income, and Economic Security

Grant Year: 2021

Grant Amount: $15,000

Grant Type: doctoral

As the U.S. economy emerges from the coronavirus recession, public policies to support women’s ability to return to work and stay in the workforce will be necessary for economic recovery. This study seeks to assess if paid sick leave reduces short-term income volatility and increases long-term economic security through improved job attachment among women, particularly those who are less likely to have access to paid sick leave in the absence of paid sick leave mandates. Using the American Community Survey, Slopen will conduct analyses at the state and county level using the five states and 21 counties that implemented paid sick leave as the treatment group. She will exploit the variation in the timing of the implementation of mandates at the state or county level using a difference-in-differences approach to estimate the effect of paid sick leave mandates on women’s labor force participation, continuity of employment, weekly hours worked, income, and poverty. She also will identify effects on subpopulations most likely to lack access to paid sick leave in the absence of mandates.

Is COVID-19 Exacerbating Inequities in Subsidized Child Care?: Policy Lessons to Strengthen the Home-Based Sector

Grant Year: 2021

Grant Amount: $68,734

Grant Type: academic

An estimated 7.5 million children under 6 years old are cared for by home-based child care providers each year, which represents the majority of young children in regular nonparental care arrangements in the United States. Home-based child care programs are more affordable and accessible to a broad range of families, especially low-income, Black and Latinx, and rural families. The pandemic has drawn attention to longstanding racialized inequities in access to child care and the structural inequalities that are perpetuated due to insufficient investment in the home-based child care sector. This project will document trends over time (before, during, and after the pandemic) in access to child care subsidies for home-based care providers using administrative records data for the state of Illinois, paying particular attention to the racial composition of those receiving child care subsidies and those who serve racially diverse and economically disadvantaged families through the child care subsidy program. The analysis of the administrative records will be able to show how licensed and unlicensed providers' access to child care subsidies were affected by the pandemic, compared with one another and compared with center-based care. The two researchers will augment this analysis with in-depth interviews with home-based care providers. These qualitative interviews will explore how home-based care providers fared during the pandemic.

School-to-Work Pathway and Racial/Ethnic Inequality among College Graduates

Grant Year: 2021

Grant Amount: $82,000

Grant Type: academic

This project examines the source of racial and ethnic inequality among the highly educated workforce in the United States by focusing on how educational credentials translate into U.S. labor market outcomes. The racial and ethnic wage divide is the largest and has expanded the most among highly educated workers, despite the fact that people of color in the United States are registering higher educational attainment. This project seeks to shed light on that by exploring how educational credentials translate into positions in the U.S. labor market and whether there are mismatches. Specifically, the project will investigate vertical and horizontal dimensions of education-occupation mismatches. Vertical mismatch refers to a mismatch between a worker's educational credentials and the level of education required for the occupation, such as a college graduate working as a retail sales associate. Horizontal mismatch refers to a mismatch between a worker's field of study and the type of education required for the occupation, for example, an engineering major working as an accountant. Lu will incorporate a demand-based measure of mismatch using online job-posting data compiled by Burning Glass Technologies, in addition to pooling two decades of nationally representative longitudinal data from the Survey of Income and Program Participation. She will investigate which dimensions of mismatch and which processes in the employment relationship drive racial and ethnic labor market inequality by exploring initial occupational allocation, subsequent occupational trajectory, and wage consequences of mismatch. Lu also will investigate how educational stratification factors into ethnic/racial disparities by looking at degree levels, fields of study, and college quality.

Public Investment, Manufacturing Work Opportunity, and Upward Mobility in Midcentury America: Evidence from World War II

Grant Year: 2021

Grant Amount: $40,353

Grant Type: academic

Manufacturing jobs in the United States were widely considered to provide an important opportunity for less-educated workers to climb the U.S. economic ladder by offering high pay and stable careers. Research shows that the decline in manufacturing jobs since the 1970s coincided with a decline in upward mobility: Children born in the 1980s are less likely to grow up to earn as much as their parents than children born in the 1950s were, particularly in the post-industrial heartland. This project examines how increases in high-wage manufacturing work opportunity affected individual opportunity following the industrial mobilization for World War II. Garin and Rothbaum will exploit the fact that the siting of new plants was based on idiosyncratic short-run strategic considerations, leading to the construction of massive new publicly financed manufacturing plants in places that would not have been chosen by private firms. This historical dynamic gives rise to an ideal laboratory for studying how public investments that create high-wage employment impact upward mobility in the long run. The authors have digitized data on the locations of World War II manufacturing facilities using the War Production Board data books. Focusing on children who grew up in those areas in the 1940s, the two researchers will then trace those individuals’ income trajectories using the later-20th century Current Population Survey data linked to Social Security Administration-based income histories to examine mobility rates.

Voices of Home-Based Providers: Perspectives from the Early Childhood Field

Grant Year: 2021

Grant Amount: $80,000

Grant Type: academic

This project will build on the relatively thin body of work on informal, home-based child care providers in the United States. It aims to better understand how that community can be supported in meeting societal priorities around increasing affordable access to high-quality early childhood care. Home-based care providers deliver essential care services but occupy a structurally challenging position. These providers are poorly compensated and face challenges when it comes to meeting licensing requirements or achieving high-quality ratings. This study will identify impediments to these child care providers’ abilities to provide high-quality, affordable child care that is accessible to the families that need it. The authors will take advantage of a collaboration with the Virginia Department of Education to conduct interviews with licensed and unlicensed providers in Virginia through participatory action research, a research design that helps create unsilencing opportunities for those who have been silenced. This is especially important since the voices of home-based providers are often not included in the conversation about quality care.

Experts

Grantee

Nataliya Nedzhvetskaya

University of California, Berkeley

Dissertation Scholar and Ph.D. Candidate

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Tal Gross

Boston University

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Kate Bronfenbrenner

Cornell University

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Natasha Pilkauskas

University of Michigan, Ann Arbor

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Nirupama Rao

University of Michigan, Ann Arbor

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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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