Robert I. Lerman

The Effects of Holding Assets on Social and Economic Outcomes of Families: A Review of Theory and Evidence

This report examines the effects of asset-holding and asset accumulation on individuals and families from theoretical and empirical perspectives. The report pays special attention to the way assets affect low-income families, while recognizing that research on this topic is limited. The goal of the report is to distill the main findings from the vast theoretical and empirical literature on how assets influence economic and social well-being. The first step is to present a conceptual framework based largely on our classification of existing literature in economics, psychology, and sociology. The second step is to bring together the empirical findings relevant to the categories specified in the conceptual framework. The report concludes with suggestions for future research, especially related to the role of assets in the lives of low-income families.

Family Structure and Economic Success Across the Life Course

ABSTRACT This paper examines the role that family structure plays in long-run economic outcomes across the life course. Using nearly 30 years of data from the National Longitudinal Survey of Youth 1979, we find that youths who grow up with both biological parents earn more income, work more hours each week and are more likely to be married themselves as adults, compared to children raised in single-parent families. Many of these differences continue to be statistically significant even after we control for family income experienced as an adolescent. In addition, the implied size of the income transfer that children growing up with a single parent to equalize lifetime economic outcomes would need—about

Can Expanding the Use of Computers Improve the Performance of Small Minority- and Women-Owned Enterprises?

42,000—is markedly larger than the income transfers now available to families in USA.

Why Firms Do and Don’t Offer Apprenticeships

This study examines whether small minority- and women-owned enterprises (MWEs) use computers less than white-male-owned enterprises and whether higher levels of computer use increase productivity. We use data from a new telephone survey of roughly 1,100 firms and 45 in-depth interviews with business owners. The results suggest that: (1) Small MWEs show no tendency to use computers less than small firms owned by white men; and (2) Using computers for more business functions and/or more intensively for these business functions can raise the productivity and profitability of small MWEs.

Do Family Structure Differences Explain Trends in Wealth Differentials

The workforce strategy of firms is increasingly important for competitiveness and for producing at high quality and low costs. Firms must decide on the mix of skills and wages for current and future operations and on whether to train skilled workers or hire them from the open labour market. While traditional human capital theory states that firms will not finance training for general skills, modifications of the theory show training for general skills can be profitable. The modifications are compelling, since employer training for occupational skills varies widely across countries. Employers in the U.S. and France provide little occupational training while the extent of employer occupational training in Germany and Switzerland is enough to reach 55–70 % of a youth cohort. This chapter examines the factors influencing firm choices about providing one type of general training-apprenticeships. Offers of apprenticeships are common in countries where knowledge about apprenticeships is widespread, occupational standards are well developed, and the government finances related, off-the-job training. One reason is that firms in these countries recoup most or all of their investments during the apprenticeship itself, mainly because of the productive contributions to output by the apprentices. But in other contexts, such as the U.S., firms are far less likely to offer apprenticeships. South Carolina’s Apprenticeship Carolina demonstrates how marketing to individual firms and simplifying the process of hiring apprentices can lead large numbers of employers to provide occupational skills training.

Military apprenticeships in the US: an implementation evaluation

Race and ethnic wealth differentials are wide and increasing. Some of the gaps are associated with education differences, but education alone cannot account for the substantially higher net worth of White families than of Black and Hispanic families. As of 2013, the median wealth of Black college graduate families had fallen to only 13 percent of the median wealth of White families. One possible explanation is the significantly lower shares of married couple and married parent households among minorities. For example, even among college graduates, only 41 percent of Black family heads were married, compared with 68 percent of White family heads. Did these trends in family status contribute significantly to differences between Whites, Blacks, and Hispanics in the declines in wealth among college graduates? The author finds that family status changes between 2007 and 2013 were too small to play a large role and even married couple families among Blacks and Hispanics suffered sharp declines in home equity and net worth. Still, married couples retained at least a 70 percent advantage over the unmarried groups.

Child Support: Interaction between Private and Public Transfers

Purpose – Apprenticeships in the Navy, Marine Corps, and Coast Guard, which operate under the United Services Military Apprenticeship Program (USMAP), now account for about 20 percent of all registered apprentices in the USA. The purpose of this paper is to draw on interviews and focus groups to examine the strengths and limitations of USMAP, develops implications of the study for policy, and presents ideas for demonstration projects to learn how best to improve USMAP. Design/methodology/approach – The primary method involved background research on USMAP and USMAP occupations, interviews with key staff members involved with USMAP operations, and 11 focus groups at two Navy and two Marine Corps bases with USMAP apprentices, USMAP completers, and USMAP supervisors. Findings – The study contributes by answering key questions about USMAP. Positives include the potential to upgrade skills, document occupational competencies, and smooth the transition to civilian employment. The study shows that service members have a weak understanding of the rationale for participating and for completing their apprenticeships. Logistical problems often result in incomplete documentation. Counselors lack knowledge about how to make USMAP completers attractive to employers. Finally, USMAP does little to engage employers in insuring the occupational standards are adequate for civilian jobs and in hiring those completing apprenticeships. The study draws policy implications and presents an agenda for research. Practical implications – The military should provide additional financial support to help the program connect participants with civilian jobs, including a website where employers could search for candidates and communicate with veterans. Originality/value – This study is the first to examine the operations and implementation of the USMAP.