Sandra E. Black

How to Compete: The Impact of Workplace Practices and Information Technology on Productivity

Using data from a unique nationally representative sample of businesses, we examine the impact of workplace practices, information technology, and human capital investments on productivity. We estimate an augmented Cobb-Douglas production function with both cross section and panel data covering the period of 19871993, using both within and GMM estimators. We find that it is not whether an employer adopts a particular work practice but rather how that work practice is actually implemented within the establishment that is associated with higher productivity. Unionized establishments that have adopted human resource practices that promote joint decision making coupled with incentive-based compensation have higher productivity than other similar nonunion plants, whereas unionized businesses that maintain more traditional labor management relations have lower productivity. Finally, plant productivity is higher in businesses with more-educated workers or greater computer usage by nonmanagerial employees.

Do Better Schools Matter? Parental Valuation of Elementary Education

The evaluation of numerous school reforms requires an understanding of the value parents place on school quality. I use house prices to infer this value, where school quality is proxied by elementary school test scores. I do so by looking within school districts at houses located on attendance district boundaries; I am then comparing houses that differ along only one dimension: the elementary school the child attends. I thereby effectively remove the variation in neighborhood characteristics, property tax rates, and school spending. I find that parents are willing to pay 2.5% more for a 5% increase in test scores; this is approximately half the estimate one gets by running a typical hedonic housing price regression. This estimate is robust to a number of sensitivity checks.

Entrepreneurship and Bank Credit Availability

The literature is divided on the expected effects of increased competition and consolidation in the financial sector on the supply of credit to relationship borrowers. This paper tests whether policy changes fostering competition and consolidation in U.S. banking helped or harmed entrepreneurs. We find that the rate of new incorporations increases following deregulation of branching restrictions, and that deregulation reduces the negative effect of concentration on new incorporations. We also find the formation of new incorporations increases as the share of small banks decreases, suggesting that diversification benefits of size outweigh the possible comparative advantage small banks may have in forging relationships.

Recent developments in intergenerational mobility

Economists and social scientists have long been interested in intergenerational mobility, and documenting the persistence between parents and childrens outcomes has been an active area of research. However, since Gary Solons 1999 Chapter in the Handbook of Labor Economics, the literature has taken an interesting turn. In addition to focusing on obtaining precise estimates of correlations and elasticities, the literature has placed increased emphasis on the causal mechanisms that underlie this relationship. This chapter describes the developments in the intergenerational transmission literature since the 1999 Handbook Chapter. While there have been some important contributions in terms of measurement of elasticities and correlations, we will focus primarily on advances in our understanding of the forces driving the relationship and less on the precision of the correlations themselves.

Importing Equality? The Impact of Globalization on Gender Discrimination

A key dynamic implication of the Becker model of discrimination (1957) is that increased product market competition will drive out costly discrimination in the long run. This paper tests that hypothesis by examining the impact of globalization on gender discrimination in manufacturing industries. Because concentrated industries face little competitive pressure, an increase in competition from trade should reduce the residual gender wage gap more in these industries than in competitive industries. The authors compare the change in the gender wage gap between 1976 and 1993 in concentrated versus competitive manufacturing industries, using the latter as a control for changes in the gender wage gap that are unrelated to competitive pressures. They find that while trade increases wage inequality by modestly reducing the relative wages of less-skilled workers, at the same time it appears to benefit women by reducing the ability of firms to discriminate.

Staying in the Classroom and out of the maternity ward? The effect of compulsory schooling laws on teenage births

This article investigates whether increasing mandatory educational attainment through compulsory schooling legislation encourages women to delay childbearing. We use variation induced by changes in compulsory schooling laws in both the US and Norway to estimate the effect in two very different institutional environments. We find evidence that increased compulsory schooling does in fact reduce the incidence of teenage childbearing in both the US and Norway, and these estimates are quite robust to various specification checks. These results suggest that legislation aimed at improving educational outcomes may have spillover effects onto the fertility decisions of teenagers.

What’s Driving the New Economy?: The Benefits of Workplace Innovation

This paper argues that changes in workplace organisation, including re-engineering, teams, incentive pay and employee voice, have been a significant component of the turnaround in productivity growth in the US during the 1990s. Our work goes beyond measuring the impact of computers on productivity and finds that these types of workplace innovation appear to explain a large part of the movement in multi-factor productivity in the US over the period 1993-6. These results suggest additional dimensions to the recent productivity growth in the US that may well have implications for productivity growth potential in Europe.

Too Young to Leave the Nest: The Effects of School Starting Age

Using Norwegian data, we examine effects of school starting age (SSA). Unlike much recent literature, we can separate SSA from test age effects using scores from IQ tests taken outside school at about age 18. We find a small, negative effect of starting school older but much larger positive effects of age at test. Also, starting older leads to lower earnings until about age 30. We find little impact of SSA on educational attainment, but boys who start older are less likely to have poor mental health at age 18. Additionally, starting school older has a negative effect on the probability of teenage pregnancy.

Explaining Women's Success: Technological Change and the Skill Content of Women's Work

In this study, we explore a new approach for analyzing changes in the gender pay gap that uses direct measures of job tasks and gives a comprehensive characterization of how work for men and women has changed in recent decades. Using data from West Germany, we find that women have witnessed relative increases in nonroutine analytic and interactive tasks. The most notable difference between the genders is, however, the pronounced relative decline in routine task inputs among women, driven, at least in part, by technological change. These changes explain a substantial fraction of the closing of the gender wage gap.

Housing Valuations of School Performance

In this Chapter, we critically review the sizable literature that values school quality and performance through housing valuations. While highly variable in terms of research quality, the literature consistently finds housing valuations to be significantly higher in places where measured school quality is higher. Thus parents are prepared to pay substantial amounts of money to get their children educated in better performing schools. This conclusion emerges from studies across many countries, using a variety of identification strategies, and at different levels of the education system.