James E. Long

The Impact of Participation in Intercollegiate Athletics on Income and Graduation

Males who participated in intercollegiate athletics are estimated to receive 4 percent higher annual incomes than similar nonathletes. No such income premium associated with college athletics is revealed among females. Both male and female athletes who attended colleges and universities in the early 1970s had higher graduation rates than other students. Since the models used to estimate income and graduation differentials included many measurable determinants of labor market and academic outcomes, these findings suggest that athletic participation may enhance the development of discipline, confidence, motivation, a competitive spirit, or other subjective traits that encourage success. Copyright 1991 by MIT Press.

An econometric analysis of residential expenditures on energy conservation and renewable energy sources

Abstract Economic theory suggests that residential expenditures on energy conservation and renewable energy sources will be determined by the ability of households to purchase conservation inputs, their incentive to invest in conserving energy, the energy efficiency of existing homes and miscellaneous factors such as climate and age of the home-owner. Empirical analyses of energy-related expenditures reported on individual income tax returns confirm the importance of household income, energy price increases and climate conditions in determining energy conservation investments. Income tax credits are also found to have stimulated residential spending on conservation and renewable energy.

The political economy of the rent-seeking society: The case of public employees and their unions

Evidence is accumulating which suggests that public employee pay levels may contain substantial rent components. The purpose of this study is twofold: to relate the theories of public choice and competitive rent seeking to this evidence and to improve upon existing estimates of rent levels by incorporating the effects of fringe benefits and stability of employment. This study concludes that once nonwage forms of compensation are included, economic rents are contained in pay levels at all three levels of government for both sexes.

Income Inequality and City Size

The distribution of income in the urban context has received relatively little attention from economists. Limited information has been employed to assert an inverse relationship between city size and income inequality (Duncan and Reiss, 1956; Richardson, 1973). This relationship can be rationalized by the fact that both city size and inequality are related to the level of income. Kuznets (1955) hypothesized a negative relationship between income and inequality, and he is supported by the findings of Aigner and Heins (1967), Conlisk (1967), and Al-Samarrie and Miller (1967) using state data and by Frech and Burns (1971) using SMSA data. Sveikauskas (1975) has documented that incomes are higher in larger cities. In this paper we analyze the relationship between city size and income inequality. After controlling for other factors that influence income inequality by using regression analysis on cross section data for 79 U.S. metropolitan areas, we find that income inequality appears to increase with city size.

Income taxation and the allocation of market labor

The allocation of work effort within the market economy will be unaffected by taxation if all returns from labor market activity are taxed equally. However, if the earnings from certain types of market employment are taxed at relatively lower rates, labor will shift into these areas until after-tax earnings are equal across all types of employment. This paper presents evidence suggesting that income taxation induces labor to move from high- to low-tax geographic areas and from wage and salaried jobs into self-employment activities. By affecting the allocation of market labor, the income tax generates a welfare loss in addition to that resulting from the tax’s effect on total work effort.

Labor Force Entry and Exit by Married Womem: A Longitudinal Analysis

In this paper the labor force entry and exit by married women are examined using longitudinal data that enable one to observe actual changes in economic behavior and characteristics. The symmetry assumption is investigated by estimating separate equations for the entry and exit choice. Section II briefly analyzes the wifes labor supply decision and discusses the issue of symmetry. The data and analytical procedure are described in section III and the empirical results are presented in section IV. Some implications of our findings are presented in section V. (excerpt)

Free agency, owner incentives, and the national football league players association

In an effort to raise salaries in professional football, the National Football League Players Association (NFLPA) has demanded that NFL owners set aside 55 percent of gross revenues to fund a union wage scale. An alternative means of raising salaries, as evidenced by the relatively higher earnings in major league baseball and professional basketball, is through a free agent system wherein players are free to sell themselves in the open market. This paper examines the NFLPA’s claim that free agency will not work in the NFL because owners lack the financial incentive to win that would induce them to bid on free agents.

The Effect of the 1986 Tax Act On Personal Interest Deductions

For most taxpayers who itemize deductions, the 1986 tax act will increase the after-tax cost of interest paid to purchase homes, automobiles, other consumer items, and personal investment assets. Individual tax-return data are used to estimate the elasticity of interest deductions, both home moi tgage and other, with respect to the marginal tax rate and disposable income. Based on these estimates, we show that the lower tax rates and increased standard deductions in the new law can be expected to reduce interest deductions, especially among upper-income taxpayers. The findings suggest that outlays on owner-occupied housing will be more affected by the 1986 tax reform than will other types of expenditures financed with consumer credit.

Tax Rates and Tax Losses. A Preliminary Analysis Using Aggregate Data

Theory suggests that increases in income tax rates induce individuals to make choices that reduce their tax liability. This article documents the growth of “business” losses reported on personal tax returns during 1948–1980. Such losses offset

Female athletic participation and income: evidence from a latent class model

57 billion of taxable income in 1980 and saved taxpayers an estimated