Joyce J. Chen

Temporary and permanent migrant selection: Theory and evidence of ability-search cost dynamics

The migrant selection literature concentrates primarily on spatial patterns. This paper illustrates the implications of migration duration for patterns of selection by integrating two workhorses of the labor literature, a search model and a Roy model. Theory and empirics show temporary migrants are intermediately selected on education, with weaker selection on cognitive ability. Longer migration episodes lead to stronger positive selection on both education and ability, as its associated jobs involve finer employee-employer matching and offer greater returns to experience. Networks are more valuable for permanent migration, where search costs are higher. Labor market frictions explain observed complex network-skill interactions.

Altruism, Cooperation, and Efficiency: Agricultural Production in Polygynous Households

Altruism toward others can inhibit cooperation by increasing the utility players expect to receive in a noncooperative equilibrium. To test this, we examine agricultural productivity in West African polygynous households. We find cooperation, as evidenced by more efficient production, is greater among co-wives than among husbands and wives. Using a game-theoretic model, we show that this outcome can arise because co-wives are less altruistic toward each other than toward their husbands. We present a variety of robustness checks, which suggest results are not driven by selection into polygyny, greater propensity for cooperation among women, or household heads enforcing others’ cooperative agreements.

Let’s Talk About the Money: Spousal Communication, Expenditures and Farm Production

A burgeoning body of literature highlights asymmetric information among household members. However, little is known about the source of the asymmetry and its effect on efficiency. Using a unique survey of Ghanaian households, we examine the accuracy of spousal cross reports and the effect of discrepancies on farm production. We find that information problems pertain to scale (the quantity of resources) and scope (the distribution of resources), as well as allocation decisions on the margin (Engel curves). Moreover, we find that information asymmetries lead to inefficiency in production, and the effect is equivalent to about 15% of the variation across households.

The Impact of Skill-Based Immigration Restrictions: The Chinese Exclusion Act of 1882

This paper considers the impact of skill-based immigration restrictions, using the Chinese Exclusion Act as a natural experiment. I find that restrictions reduced the average occupational standing of Chinese immigrants, suggesting substitution between observed and unobserved skills. Conversely, children of restricted immigrants have greater human capital than those of unrestricted immigrants, despite restricted immigrants themselves having lower skill. This suggests particularly strong intergenerational transmission of skill among Chinese immigrants of the exclusion era. More generally, the findings indicate that the effects of skill-based restrictions are not always straightforward and may be heterogeneous across groups.

Children's schooling in Nicaragua: What is the link between educational achievement, borrowing, and gender?

The impact of credit has been widely studied, and yet little is known about the effect of formal versus informal loans. In this paper, we contrast the two and their impact on childrens schooling using longitudinal data from Nicaragua. To address endogeneity, we utilize both household fixed effects and locality–year fixed effects. Our results indicate that, on average, children from borrowing households fare worse than children from nonborrowing households, with male borrowers having a disproportionately negative effect on boys, and vice versa for girls and female borrowers. Informal credit is found to have a protective effect on school attendance, but the effects of formal and informal credit on cumulative schooling are found to be statistically equivalent. However, this appears to mask considerable heterogeneity within informal borrowing.