Ming-Jen Lin

Does Unemployment Increase Crime?: Evidence from U.S. Data 1974–2000

OLS may understate the effect of unemployment on crime because of the endogeneity problem (Raphael and Winter-Ember 2001). In this paper, we use changes in the real exchange rate, state manufacturing sector percentages, and state union membership rates as novel instrumental variables to carry out 2SLS estimations. We find a one-percentage-point increase in unemployment would increase property crime by 1.8 percent under the OLS method, but that the elasticity goes up to 4 percent under 2SLS. The larger 2SLS effect has significant policy implications because it explains 30 percent of the property crime change during the 1990s.

Does in Utero Exposure to Illness Matter? The 1918 Influenza Epidemic in Taiwan as a Natural Experiment

This paper tests whether in utero conditions affect long-run developmental outcomes using the 1918 influenza pandemic in Taiwan as a natural experiment. Combining several historical and current datasets, we find that cohorts in utero during the pandemic are shorter as children/adolescents and less educated compared to other birth cohorts. We also find that they are more likely to have serious health problems including kidney disease, circulatory and respiratory problems, and diabetes in old age. Despite possible positive selection on health outcomes due to high infant mortality rates during this period (18%), our paper finds a strong negative impact of in utero exposure to influenza.

As low birth weight babies grow, can well-educated parents buffer this adverse factor? A research note

This research note combines two national Taiwanese data sets to investigate the relationships among low birth weight (LBW) babies, their parents’ educational levels, and their future academic outcomes. We find that LBW is negatively correlated with the probability of such children attending college at age 18; however, when both parents are college or high school graduates, such negative effects may be partially offset. We also show that discrimination against daughters occurs, but only for daughters who were LBW babies. Moreover, high parental education can buffer the LBW shock only among moderately LBW children (as compared with very LBW children) and full-term LBW children (as compared with preterm LBW children).

Do lower birth weight babies have lower grades? Twin fixed effect and instrumental variable method evidence from Taiwan

By combining two unique Taiwanese datasets, this paper investigates how birth weight affects grades at age 15 years. To tackle the endogeneity problem caused by omitted variables, we first compare birth weight and grade variation within twins. We find that birth weight does increase grades but only when both twins weigh less than 3000g at birth, which indicates that the effect is non-linear, and when the weight difference between the twins is larger than 200g. Furthermore, twin fixed effect estimates are similar to the ordinary least squares (OLSs) ones. We then use the public health budget and the number of doctors in the county where the children were born as instrumental variables for the childrens birth weight. We found that instrumental variable estimates are significant only for the less educated (<9 years) and young (<25 years) mothers. We conclude that the effect of birth weight is real and non-linear and its effect on less educated and young mothers is the most severe. Furthermore, the bias produced by OLS may not be large if the correct subgroup of the population has been identified.

Television on Women's Empowerment in India

Abstract We used a nationwide demographic survey to study the relation between television exposure and women’s empowerment in India. Ordinary least squares (OLS) results suggested that TV exposure improved Indian women’s status. We used the propensity score matching (PSM) method to mitigate the potential threat of endogeneity. The results indicate that TV exposure is correlated with greater awareness of autonomy, greater financial independence, less unwanted pregnancy (birth control), negative attitude toward beating, a lower tendency of giving birth, a smaller family, and a lower preference level for sons.

HBeAg(+) and sex ratio of offspring: Evidence form Taiwan's three million newborns

Mothers sero‐positive for hepatitis B are slightly more likely to have a son. It is not known whether it is ever having HBV (HBsAg[+]) or currently active HBV (HBeAg[+]) which is associated with having a son.

Testing Coase theorem: the case of free agency in NBA

This study seeks to test the applicability of the Coase theorem to the allocation of players within. According to the Coase theorem, a players final allocation would be the same no matter who has ownership of his playing rights if there are no transaction costs. What ownership affects is just the allocation of wealth. Using data from the National Basketball Association (NBA), this article argues that player mobility is likely to be affected by player ownership due to transaction cost imposed by the institution. It is also concluded that performance indicators used for value estimation vary by position and that this also affects player transfer.

Long-term impacts of early-life exposure to malaria: Evidence from Taiwan's Eradication Campaign in the 1950s

This paper utilizes the eradication campaign in Taiwan in the 1950s to estimate the long-term impacts of early-life (in utero and postnatal) exposure to malaria. Matching adults in the 1992-2012 Taiwan Social Change Survey to the malaria intensity in their individual place and year of birth, difference-in-difference estimation shows strong evidence that the eradication increased mens own educational attainment as well as their family income in adulthood. We also use the 1980 census data to show there was a sharp education increase after the eradication. Furthermore, the eradication increased the educational attainment of married mens spouses. Finally, quantile regressions show that the effect concentrated on the lower percentile of the income distribution. Overall, our results suggest negative effects of early-life exposure to malaria.

Wages and Learning in Internal Labor Markets: Evidence From a Taiwanese Company

Abstract This paper analyses the personnel records of a Taiwanese auto dealer employing three distinct internal labor markets (ILMs), adding new evidence that builds upon recent empirical and theoretical works on ILMs. We show that the public learning model proposed by Farber and Gibbons (1996) is not supported in general by our data because the behaviors of empirical wage residuals covariance matrix contradict the martingale predictions derived from the their model. However, “public learning” may not be unrealistic once individual specific learning speed is introduced. Furthermore, we find that the positive effects of levels, on both salary and bonus equations, are smaller under a fixed effects model than under an OLS (combined) model. However, part of the wage variations is contributed by individual heterogeneity rather than the hierarchy itself. Evidence also shows that education plays an important role in the determination of levels.