{"title":"The skilled worker premium and labor's share of income: Recent trends in U.S. manufacturing","authors":"Norman Sedgley, Bruce Elmslie","doi":"10.1002/soej.12713","DOIUrl":"https://doi.org/10.1002/soej.12713","url":null,"abstract":"A well‐established literature documents the role of outsourcing and technological change in explaining the growing skills premium in the U.S. economy from the 1970s through the late 1990s. In the 1980s labor's share of income relative to capital also began to decline. These two trends continue through the great recession. Separate literatures identify different reasons for the change in the skills premium and the decline in labor's share. This article considers the explanations for these two phenomena in a unified framework. The analysis is based on U.S. manufacturing data from 2002 through 2017, a period when there were significant shifts in the rate of growth in outsourcing and market concentration.","PeriodicalId":47946,"journal":{"name":"Southern Economic Journal","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2024-06-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141547086","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Self‐control or social control? Peer effects on temptation consumption","authors":"Yating Chuang","doi":"10.1002/soej.12697","DOIUrl":"https://doi.org/10.1002/soej.12697","url":null,"abstract":"This paper examines peer effects on self‐control problems. I construct a theoretical model to describe how peer networks influence consumption behaviors through social norms. Using monthly survey data conducted in 16 Thai villages from 1999 through 2004, I find that peer's temptation consumption significantly impacts individuals' temptation consumption such as alcohol, tobacco, and gambling. A one baht (around $0.025 U.S. dollars) increase in peer's temptation consumption leads to a 1.5 times increase in one's own temptation consumption. With detailed household‐level social network information defined by actual transactions, this paper identifies peer effects using a friend of a friend (excluded network) as the instrument. The panel nature of this instrument overcomes various common identification challenges, such as reflection, correlated effects, and common unobservable shocks, in the literature. My findings suggest that these peer effects are driven primarily by social norms, rather than risk sharing.","PeriodicalId":47946,"journal":{"name":"Southern Economic Journal","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2024-06-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141350587","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Marly Tatiana Celis Galvez, Vitezslav Titl, F. Schotanus
{"title":"Discretion and political favoritism: Evidence from two reforms in public procurement","authors":"Marly Tatiana Celis Galvez, Vitezslav Titl, F. Schotanus","doi":"10.1002/soej.12709","DOIUrl":"https://doi.org/10.1002/soej.12709","url":null,"abstract":"The misuse of bureaucratic discretion in public procurement risks political favoritism and corruption. Discretionary thresholds regulate this, with lenient rules below and strict oversight above these thresholds. We examine the impact of changes in these thresholds in the Czech Republic in 2012 and 2016 on discretion misuse and market competition, using bunching estimators, regression discontinuity, and comprehensive data on construction contracts, political ties, and firm productivity. Our findings show a concentration of contracts just below thresholds, both pre and post‐reforms. Reforms reallocating contract values to new thresholds reveal that limiting discretion lowers final contract prices, indicating increased efficiency. However, when discretion increases, final prices are unaffected. Efficiency gains are not seen in contracts awarded to politically connected firms, suggesting that political favoritism hinders market outcome improvements from stricter regulations.","PeriodicalId":47946,"journal":{"name":"Southern Economic Journal","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2024-06-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141363984","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Knockin' on the bank's door: The impact of U.S. bank branch closures on self‐employment dynamics","authors":"Alina Malkova","doi":"10.1002/soej.12708","DOIUrl":"https://doi.org/10.1002/soej.12708","url":null,"abstract":"The U.S. bank branch network has contracted since the 2010s, limiting borrowers' access to credit institutions. This paper analyzes the changes in banks' branch concentration and their effect on borrowers' choices of being self‐employed. To evaluate the impact of the bank branch closings, I use a shift‐share research design to assess self‐employment exits using zip code variation in preexisting bank market shares. I disaggregate the self‐employed into two categories: entrepreneurs whose businesses depend on business loans (incorporated self‐employed) and other self‐employed individuals (unincorporated self‐employed). Using a Community Advantage Panel Survey, I find that the proximity of credit market institutions has heterogeneous effects on self‐employment exits. While bank branch closures lead to a decline in incorporated businesses, particularly within a five‐mile radius, unincorporated businesses appear insignificantly affected.","PeriodicalId":47946,"journal":{"name":"Southern Economic Journal","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2024-06-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141367816","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Introducing Ph.D. students to asymptotic inference for two‐stage M‐estimators: Easing analytic and coding demands via the use of numerical derivatives","authors":"Joseph V. Terza","doi":"10.1002/soej.12712","DOIUrl":"https://doi.org/10.1002/soej.12712","url":null,"abstract":"Applications of two‐stage M‐estimators (2SMEs) abound in empirical economics. Asymptotic theory for 2SMEs (correct formulation of the asymptotic standard errors [ASE]) has been available for decades. Nevertheless, due to the daunting nature of the requisite matrix formulations, when conducting statistical inference based on two‐stage estimates, applied researchers often implement bootstrapping methods or ignore the two‐stage nature of the estimator and report the uncorrected second‐stage outputs from packaged statistical software. In the present paper, we offer teachers of econometrics a pedagogical approach for introducing Ph.D. students to asymptotic inference for 2SMEs, with a view toward easier software implementation and empirical application. We seek to demonstrate to students (and their teachers) that the analytic and coding demands for calculating correct ASEs for the 2SME need not be burdensome (or prohibitive). The main instructional (and practical) innovation that we offer in this regard is our suggested use of numerical derivative (ND) software for calculating the most challenging components of the ASE formulations. An exercise demonstrates to the student that, by implementing ND software, one can overcome the analytic and coding impediments to conducting inference based on 2SMEs, without abandoning rigor.","PeriodicalId":47946,"journal":{"name":"Southern Economic Journal","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2024-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141196347","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Institutional heterogeneity in the education and earnings returns to postsecondary technical education: Evidence from Missouri","authors":"Maxwell J. Cook, Cory Koedel, Michael Reda","doi":"10.1002/soej.12711","DOIUrl":"https://doi.org/10.1002/soej.12711","url":null,"abstract":"We estimate the education and earnings returns to enrolling in technical 2‐year degree programs at community colleges in Missouri. A unique feature of the Missouri context is the presence of a highly regarded, nationally ranked technical college: State Technical College of Missouri (State Tech). We find that enrolling in a technical program in Missouri increases the likelihood of associate degree attainment and post‐enrollment earnings, but that the positive effects statewide are driven largely by students who attend State Tech. These findings demonstrate the potential for a high‐performing community college to change students' education and labor market trajectories. At the same time, they exemplify the potential for substantial institutional heterogeneity in the returns to postsecondary education.","PeriodicalId":47946,"journal":{"name":"Southern Economic Journal","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2024-05-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141167463","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Purchase discounts on federal holidays and adjacent shopping holidays: Evidence from the airline industry","authors":"Alexander Luttmann, Alberto A. Gaggero","doi":"10.1002/soej.12699","DOIUrl":"https://doi.org/10.1002/soej.12699","url":null,"abstract":"Discounts during Thanksgiving and Christmas are common in a variety of retail markets. In this article, we examine whether holiday discounts extend to the airline industry. In contrast to many retail markets where purchased goods are meant for immediate consumption (e.g., groceries), goods in airline markets are often consumed in the future due to advance purchases. Exploiting a unique panel of almost 22 million fares, we find that fares purchased on a holiday for flights in the 60‐day period following the holiday are 1.9% cheaper, supporting the conjecture that airlines price discriminate when demand is lower than average or when the mix of purchasing passengers makes demand more elastic. These holiday discounts also do not vary with the level of competition, indicating that market structure has no impact on the magnitude of the holiday purchase discount.","PeriodicalId":47946,"journal":{"name":"Southern Economic Journal","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2024-05-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140977582","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The effect of Certificate‐of‐Need laws on substance use disorder care for vulnerable populations","authors":"Alicia Plemmons, Darwyyn Deyo, Sarah Drain","doi":"10.1002/soej.12696","DOIUrl":"https://doi.org/10.1002/soej.12696","url":null,"abstract":"Substance use disorders are a prevalent and growing problem across the United States, especially for households that rely on publicly funded healthcare insurance plans. State Certificate‐of‐Need (CON) laws for substance use disorder (SUD) treatment facilities can worsen outcomes for these patients by restricting the supply of facilities and beds, leading to spillovers into the general hospital system. We present a choice theory for treatment facility patient admission and model the outcome as a function of the patient's insurance type. We then combine two datasets on state CON laws for SUD treatment facilities with Medicaid patient data from 2017 to 2020 to test the model using a three‐stage least squares design and provide some of the first evidence on Medicaid patient outcomes under CON laws for SUD treatment facilities. We find significant evidence that state CON laws for SUD treatment facilities are associated with higher rates of hospital bed utilization, increases in the number of infants born with Neonatal Abstinence Syndrome, and higher rates of emergency department visits. Our findings are robust to several specification tests, including a model of conditional mixed method endogeneity and incorporating timing of the Affordable Care Act.","PeriodicalId":47946,"journal":{"name":"Southern Economic Journal","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2024-05-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140935481","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Certificate‐of‐Need laws in healthcare: A comprehensive review of the literature","authors":"Matthew D. Mitchell","doi":"10.1002/soej.12698","DOIUrl":"https://doi.org/10.1002/soej.12698","url":null,"abstract":"Certificate‐of‐Need (CON) laws limit the supply of healthcare services in about two‐thirds of U.S. states. The regulations require those who wish to open or expand their facilities to first prove that their services are needed. Once encouraged by the federal government, Congress eliminated the inducement in the 1980s and since then several states have either pared their CON programs back or eliminated them altogether. To date, there have been 128 academic assessments of CON laws and together these papers contain over 450 tests. In this paper, I review this literature, organizing the results around the most common rationales for CON laws. The accumulated evidence is overwhelming that CON laws do not achieve their purpose. Instead, the balance of evidence suggests that these regulations increase spending, reduce access to care, undermine quality, and fail to ensure care for underserved populations.","PeriodicalId":47946,"journal":{"name":"Southern Economic Journal","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2024-05-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140935483","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Certificate of Need and the labor market","authors":"Kihwan Bae, James Bailey","doi":"10.1002/soej.12693","DOIUrl":"https://doi.org/10.1002/soej.12693","url":null,"abstract":"Thirty‐five U.S. states currently have Certificate‐of‐Need (CON) laws, which require health care providers to prove their “economic necessity” to a state board before they can legally open or expand. While dozens of articles have evaluated the effect of CON on hospitals and consumers, no published article has evaluated its effect on health care workers. We argue that the sign of the effect of CON on both the wages and employment is theoretically ambiguous. We conduct an empirical analysis of CON laws using 1979–2019 data from the Current Population Survey. We find that CON does not significantly affect the employment or wages of health care workers.","PeriodicalId":47946,"journal":{"name":"Southern Economic Journal","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2024-04-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140677646","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}