Srikant Devaraj

The Impact of Incentive Compensation on Labor Productivity in Family and Nonfamily Firms

Family and nonfamily firms both must align owner and employee interests. However, family firms may experience lower labor productivity because of adverse selection problems from labor market sorting and attenuation. Incentive compensation reduces alignment of interest problems in family and nonfamily firms. Importantly, incentive compensation signals to potential employees that performance will be rewarded, which should improve the relative labor productivity in family firms by reducing adverse selection. Analysis of matched data on 216,768 firms supports our hypotheses, implying that incentive compensation has a broader impact on firm performance than commonly recognized in the family firm or human resource literatures.

Skin Tone and Self-Employment: is there an Intra-Group Variation among Blacks?

The purpose of this paper is to formally evaluate whether odds of entry into self-employment decrease as skin tone darkens for Blacks in the United States. Extending past work on inter-group differences in Black-White self-employment, based on data from National Longitudinal Survey of Youth 1997, with darker skin tone the odds of self-employment decline. Having spent more time in labor force further decreases the likelihood of self-employment for darker skin tone Blacks, and being a high-school graduate, scoring high on Armed Services Vocational Aptitude Battery (ASVAB), or higher past year income are not associated with self-employment of darker skin tone Blacks. While darker skin tone Blacks who are self-employed derive lower income, those who are self-employed and with more human capital (longer time spent in the labor force, scoring high on ASVAB or being a high school graduate) have a higher income.

Taxicab tipping and sunlight

Does the level of sunlight affect the tipping percentage in taxicab rides in New York City? We examined this question using data on 13.82 million cab rides from January to October in 2009 in New York City combined with data on hourly levels of solar radiation. We found a small but statistically significant positive relationship between sunlight and tipping, with an estimated tipping increase of 0.5 to 0.7 percentage points when transitioning from a dark sky to full sunshine. The findings are robust to two-way clustering of standard errors based on hour-of-the-day and day-of-the-year and controlling for day-of-the-year, month-of-the-year, cab driver fixed effects, weather conditions, and ride characteristics. The NYC cab ride context is suitable for testing the association between sunlight and tipping due to the largely random assignment of riders to drivers, direct exposure to sunlight, and low confounding from variation in service experiences.

County-level job automation risk and health: Evidence from the United States

RATIONALE Previous studies have observed a positive association between automation risk and employment loss. Based on the job insecurity-health risk hypothesis, greater exposure to automation risk could also be negatively associated with health outcomes. OBJECTIVE The main objective of this paper is to investigate the county-level association between prevalence of workers in jobs exposed to automation risk and general, physical, and mental health outcomes. METHODS As a preliminary assessment of the job insecurity-health risk hypothesis (automation risk → job insecurity → poorer health), a structural equation model was used based on individual-level data in the two cross-sectional waves (2012 and 2014) of General Social Survey (GSS). Next, using county-level data from County Health Rankings 2017, American Community Survey (ACS) 2015, and Statistics of US Businesses 2014, Two Stage Least Squares (2SLS) regression models were fitted to predict county-level health outcomes. RESULTS Using the 2012 and 2014 waves of the GSS, employees in occupational classes at higher risk of automation reported more job insecurity, that, in turn, was associated with poorer health. The 2SLS estimates show that a 10% increase in automation risk at county-level is associated with 2.38, 0.8, and 0.6 percentage point lower general, physical, and mental health, respectively. CONCLUSION Evidence suggests that exposure to automation risk may be negatively associated with health outcomes, plausibly through perceptions of poorer job security. More research is needed on interventions aimed at mitigating negative influence of automation risk on health.

The effects of skin tone, height, and gender on earnings

Using a theoretical approach grounded in implicit bias and stereotyping theories, this study examines the relationship between observable physical characteristics (skin tone, height, and gender) and earnings, as measured by income. Combining separate streams of research on the influence of these three characteristics, we draw from a sample of 31,356 individual-year observations across 4,340 individuals from the National Longitudinal Study of Youth (NLSY) 1997. We find that skin tone, height, and gender interact such that taller males with darker skin tone attain lower earnings; those educated beyond high school, endowed with higher cognitive ability, and at the higher income level (>75th percentile) had even lower levels of earnings relative to individuals with lighter skin tone. The findings have implications for implicit bias theories, stereotyping, and the human capital literature within the fields of management, applied psychology, and economics.

An examination of the effects of 2014 concealed weapons law in Illinois on property crimes in Chicago

ABSTRACT The purpose of the present study is to determine the effects of ‘may issue’ Concealed Carry Weapons (CCW) law implemented in early 2014 in Chicago. Based on the daily community-level crime data from January 2006 to December 2015, using zero-inflated negative binomial difference-in-difference specification with Philadelphia as the control group, the property crimes in Chicago declined after the implementation of ‘may issue’ CCW law. The findings are robust to alternate treatment windows and to a placebo test using time windows before implementation of the law.

Height-income association in developing countries: Evidence from 14 countries

The purpose of this study was to assess whether the height–income association is positive in developing countries, and whether income differences between shorter and taller individuals in developing countries are explained by differences in endowment (ie, taller individuals have a higher income than shorter individuals because of characteristics such as better social skills) or due to discrimination (ie, shorter individuals have a lower income despite having comparable characteristics).

Effect on Mortality of Higher Versus Lower β-Blocker (Metoprolol Succinate or Carvedilol) Dose in Patients With Heart Failure

This study aimed to compare the effect of β-blocker dose and heart rate (HR) on mortality in patients with heart failure with reduced ejection fraction (HFrEF). The Veteran Affairs databases were queried to identify all patients diagnosed with HFrEF based on International Classification of Diseases Ninth Revision codes from 2007 to 2015 and β-blocker (carvedilol or metoprolol succinate) use. 36,168 patients on low dose β blocker were then matched with 36,168 patients on high dose β-blocker using propensity score matching. The impact of β-blocker dose and HR was assessed on overall mortality using Cox proportional hazard model. After dividing average HR into separate quartiles and adjusting for patient characteristics, high β-blocker dose was associated with lower overall mortality as compared with a low dose of β blocker (hazard ratio 0.75, 95% confidence interval 0.73 to 0.77, p <0.01) independent of the HR achieved. The results held for all 4 quartiles of average HR. A higher β-blocker dose or a lower HR were independently and jointly associated with lower mortality for all quartiles of HR. In conclusion, higher dose of β-blocker therapy and a lower achieved HR were independently associated with a reduction in mortality in HFrEF patients.

Post-Traumatic Stress Disorder and Heart Failure in Men Within the Veteran Affairs Health System

Patients with post-traumatic stress disorder (PTSD) are at risk of multiple co-morbidities and are more likely to develop incident heart failure with reduced ejection fraction (HFrEF). The relation of PTSD with clinical outcomes in HFrEF is not established. US veterans diagnosed with HFrEF from January 2007 to January 2015 and treated nationwide in the Veterans Affairs (VA) Health System were included in the study. Patients with HFrEF were identified through International Classification of Diseases, Ninth Revision (ICD-9) codes. Mortality data were obtained from the VAs death registry. We compared characteristics of patients with HFrEF with and without PTSD. We identified 111,970 VA patients with HFrEF and 11,039 patients with concomitant PTSD (9.9%). Patients with PTSD and HFrEF tended to be younger (64 vs 69 years) and have a higher rate of coronary artery disease (73% vs 64%), chronic obstructive pulmonary disease (42% vs 31%), and hypertension (80% vs 64%, p <0.01 for all variables). Patients with PTSD and HFrEF were more commonly on a high-dose β blocker (70% vs 68%, p <0.01) and angiotensin-converting enzyme inhibitors (96% vs 93%, p <0.01). PTSD was associated with significantly increased mortality at 7 years compared with patients with heart failure without PTSD (adjusted 1.54, 95% confidence interval 1.30 to 1.82, p <0.01). In conclusion, nearly 10% of veterans with HFrEF have PTSD. Patients with HFrEF with PTSD have a higher burden of co-morbidities, and PTSD is associated with a higher rate of all-cause death. Our findings support greater attention to the treatment of patients with PTSD and the causes associated with the poor outcomes.

Effect of carvedilol vs metoprolol succinate on mortality in heart failure with reduced ejection fraction

Background: Beta blocker therapy is indicated in all patients with heart failure with reduced ejection fraction (HFrEF) as per current guidelines. The relative benefit of carvedilol to metoprolol succinate remains unknown. This study aimed to compare survival benefit of carvedilol to metoprolol succinate. Methods: The VA’s databases were queried to identify 114,745 patients diagnosed with HFrEF from 2007 to 2015 who were prescribed carvedilol and metoprolol succinate. The study estimated the survival probability and hazard ratio by comparing the carvedilol and metoprolol patients using propensity score matching with replacement techniques on observed covariates. Sub‐group analyses were performed separately for men, women, elderly, duration of therapy of more than 3 months, and diabetic patients. Results: A total of 43,941 metoprolol patients were matched with as many carvedilol patients. The adjusted hazard ratio of mortality for metoprolol succinate compared to carvedilol was 1.069 (95% CI: 1.046‐1.092, P value: < .001). At six years, the survival probability was higher in the carvedilol group compared to the metoprolol succinate group (55.6% vs 49.2%, P value < .001). The sub‐group analyses show that the results hold true separately for male, over or under 65 years old, therapy duration more than three months and non‐diabetic patients. Conclusion: Patients with HFrEF taking carvedilol had improved survival as compared to metoprolol succinate. The data supports the need for furthering testing to determine optimal choice of beta blockers in patients with heart failure with reduced ejection fraction.