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Can You Be Too Smart for Your Own Good? And Other FREAK-quently Asked Questions: Full Transcript

This is a transcript of the Freakonomics Radio podcast “Can You Be Too Smart for Your Own Good? And Other FREAK-quently Asked Questions.” [MUSIC: Ed Hartman, “Simple Life”] DUBNER: Hey Levitt, of all the things that are in your power to do at this very moment in time, what would be your very most favorite thing […] Read More »

Are France and Spain Risky Vacation Spots?

Aon just released its 2013 Terrorism and Political Violence Risk Map. Interestingly, reports Business Insider, the risk levels in summer vacation favorites France and Spain are “actually equivalent to China and Russia, presumably on the basis of the former countries’ recent, heated demonstrations protesting austerity.”

Denmark, Finland, Japan, Australia, Iceland, Uruguay and Botswana, meanwhile, are all pretty safe bets.

FREAK-est Links

1. Six female scientists who didn’t get their due.

2. Why kids in France don’t get ADHD.

3. When averages don’t tell the story: the U.S. has many of the world’s brightest students, and also a lot of low-scoring students.

4. Reverse colonialism: high unemployment at home drives Spanish youth to Latin America.

5. The psychology of hoarding. Read More »

Convincing Kids to Go to College

A new NBER working paper (PDF; abstract) by economists Scott E. Carrell and Bruce Sacerdote finds that educational incentives, even those that are offered to students late in their senior year of high school, can impact college outcomes.  Here’s the abstract:

We present evidence from an ongoing field experiment in college coaching/ mentoring. The experiment is designed to ask whether mentoring plus cash incentives provided to high school students late in their senior year have meaningful impacts on college going and persistence. For women, we find large impacts on the decision to enroll in college and to remain in college. Intention to treat estimates are an increase in 15 percentage points in the college going rate (against a base rate of 50 percent) while treatment on the treated estimates are 30 percentage points. Offering cash bonuses alone without mentoring has no effect. There are no effects for men in the sample. The absence of effects for men is not explained by an interaction of the program with academic ability, work habits, or family and guidance support for college applications. However, differential returns to college and/or occupational choice may explain some of the differences in treatment effects for men and women.

When a Wife Earns More

A new working paper (abstract; PDF) by Marianne Bertrand, Jessica Pan, and Emir Kamenica looks at gender identity and its affect on household income. Their findings will depress anyone concerned with gender equality. Here’s the abstract:

We examine causes and consequences of relative income within households. We establish that gender identity – in particular, an aversion to the wife earning more than the husband – impacts marriage formation, the wife’s labor force participation, the wife’s income conditional on working, marriage satisfaction, likelihood of divorce, and the division of home production. The distribution of the share of household income earned by the wife exhibits a sharp cliff at 0.5, which suggests that a couple is less willing to match if her income exceeds his. Within marriage markets, when a randomly chosen woman becomes more likely to earn more than a randomly chosen man, marriage rates decline. Within couples, if the wife’s potential income (based on her demographics) is likely to exceed the husband’s, the wife is less likely to be in the labor force and earns less than her potential if she does work. Couples where the wife earns more than the husband are less satisfied with their marriage and are more likely to divorce. Finally, based on time use surveys, the gender gap in non-market work is larger if the wife earns more than the husband.

Who Suffered Most in the Housing Bust?

A new working paper (abstract; PDF) looks at how the recent housing bust affected minorities. Economists Patrick Bayer, Fernando Ferreira, and Stephen L. Ross looked at mortgage outcomes “for a large, representative sample of individual home purchases and refinances linked to credit scores in seven major US markets.”  Here’s what they found:

Among those with similar credit scores, black and Hispanic homeowners had much higher rates of delinquency and default in the downturn. These differences are not readily explained by the likelihood of receiving a subprime loan or by differential exposure to local shocks in the housing and labor market and are especially pronounced for loans originated near the peak of the boom. Our findings suggest that those black and Hispanic homeowners drawn into the market near the peak were especially vulnerable to adverse economic shocks and raise serious concerns about homeownership as a mechanism for reducing racial disparities in wealth.

A Youth Intervention in Chicago That Works

A new NBER working paper (abstract; PDF) by University of Chicago researchers Sara Heller, Harold A. Pollack, Roseanna Ander, and Jens Ludwig analyzes the effects of a Chicago program targeted at “disadvantaged male youth grades 7-10 from high-crime Chicago neighborhoods.”  The results of the intervention look promising:

Improving the long-term life outcomes of disadvantaged youth remains a top policy priority in the United States, although identifying successful interventions for adolescents – particularly males – has proven challenging. This paper reports results from a large randomized controlled trial of an intervention for disadvantaged male youth grades 7-10 from high-crime Chicago neighborhoods. The intervention was delivered by two local non-profits and included regular interactions with a pro-social adult, after-school programming, and – perhaps the most novel ingredient – in-school programming designed to reduce common judgment and decision-making problems related to automatic behavior and biased beliefs, or what psychologists call cognitive behavioral therapy (CBT). We randomly assigned 2,740 youth to programming or to a control group; about half those offered programming participated, with the average participant attending 13 sessions. Program participation reduced violent-crime arrests during the program year by 8.1 per 100 youth (a 44 percent reduction). It also generated sustained gains in schooling outcomes equal to 0.14 standard deviations during the program year and 0.19 standard deviations during the follow-up year, which we estimate could lead to higher graduation rates of 3-10 percentage points (7-22 percent). Depending on how one monetizes the social costs of crime, the benefit-cost ratio may be as high as 30:1 from reductions in criminal activity alone.

What Do Medieval Nuns and Bo Jackson Have in Common? Full Transcript

This is a transcript of the Freakonomics Radio podcast “What Do Medieval Nuns and Bo Jackson Have in Common?” [MUSIC: Artist Name, “Song Title” (from Album Title)]   Lisi OLIVER: It probably was pretty darn painful because you’re not living in a world with good razors. The chances are what they’re using is kitchen cutlery I […] Read More »