A new study from a group of Duke economists finds that large-scale job losses have a negative impact on student test scores, particularly in math. Previous studies have shown how kids whose parents lose their jobs perform worse on tests. This study shows that job losses have a much broader effect, and impact kids whose parents remain employed. Here’s the abstract:
I spent last week at the Aspen Ideas Festival, talking about Betsey’s and my research on the Economics of Happiness. You might think that my message—that income and happiness are tightly linked—would be an easy sell in Aspen, which is the most beautiful and most expensive city I’ve ever visited. But in fact, it’s the millionaires, billionaires and public intellectuals who are often most resistant to data upsetting their beliefs. You see, the (false) belief that economic development won’t increase happiness is comfortingly counter-intuitive to the intelligentsia. And it’s oddly reassuring to the rich, who can fly their private jets into a ski resort feeling (falsely) relieved of any concern that the dollars involved could be better spent elsewhere.
In response to our post about our Prius/”conspicuous conservation” podcast, a reader named Fred writes in to say:
If you did an analysis on your listenership, I’m pretty sure you’d find, in common with most podcasts, that consumers of audio are more likely than not mobile. Old time radio’s image of the rocking chair next to a wireless the size of a substantial piece of furniture is outdated. With podcasts especially, people are more likely to strap on their choice of pod, and listen whilst jogging, StairMastering, cycling, commuting –- it’s a very mobile listenership.
Most podcasters realised this, and when talking travel, transport or cars in particular do not use the hackneyed, clichéed, passé and superfluous sound of a car horn. For the reason that it is unmuffled by earbuds or car windows, it comes directly into the ear and announces forcibly that you are jogging or cycling into danger.
This week: No more drunk puppy-buying; the price tag of a hit song; a human homerun; the end of the mancession; why Americans’ cars are getting heavier; and why a pretty woman causes some men to crave war.
I’m back to inviting readers to submit quotations whose origins they want me to try to trace, using my book, The Yale Book of Quotations, and my more recent researches.
merry staser asked:
“‘Wham, bam … thank you ma’m'” We have been looking for this one all over and can’t seem to find out where it came from … (travelling in a carriage … was one we found … but not a full explanation). Thanks.”
I don’t have a full explanation (and I’m not sure one is necessary, the meaning of the expression is obvious). The earliest occurrence I know of is in the 1948 play Mister Roberts, where a sailor character says “Well there goes the liberty. That was sure a wham-bam-thank-you ma’am!”
From the results of this year’s high-school “maturity exam” in Poland (courtesy of reader Artur Janc), comes this histogram showing the distribution of scores for the required Polish language test, which is the only subject that all students are required to take, and pass.
Not quite a normal distribution. The dip and spike that occurs at around 21 points just happens to coincide with the cut-off score for passing the exam. Poland employs a fairly elaborate system to avoid bias and grade inflation: removing students’ names from the exams, distributing them to thousands of teachers and graders across the country, employing a well-defined key to determine grades. But by the looks of these results, there’s clearly some sort of bias going on.
Driving through New Jersey we stop for gas and sit for a few minutes until the attendant comes to fill our tank. My son tells me that is because New Jersey has one of the most wasteful restrictions in the Union: There is no self-service gasoline; all gas must be pumped by an attendant. This wastes drivers’ time—it’s almost always quicker to pump gas oneself. The labor of the attendants is thus devoted to generating economic waste and could be spent productively elsewhere rather than in promoting economic inefficiency. Perhaps at one time the restriction was based, as they usually are, on health/safety, or perhaps on preventing pilferage. But today, with credit-card pumps and few (no?) cases of people burning themselves pumping their own gas, the restriction has no rationale—other than protecting the attendants’ jobs.
A month ago, we ran a post featuring a handful of the latest odds on Intrade, including the chances (84% at the time) that Dominique Strauss-Kahn would be found guilty of at least one charge. Those odds have dropped below 10% in the last week, on the news that his accuser may have credibility issues. But when exactly did that price move start?
Reader Chris Reed wrote in asking us to look into the possibility that there was insider trading in the prediction markets on the DSK news. The initial New York Times piece that broke the story that the DSK trial was on the verge of collapse was first posted online Thursday night, June 30, before appearing on the front page of Friday’s paper. The Times doesn’t time-stamp its articles, but the Huffington Post does. Their story linking to the Times piece is time-stamped 9:38 PM ET.
Having just completed an hour-long radio program on suicide, and having just visited mainland China for the first time, I was drawn to this incredibly moving story from Shenzhen, by Shi Yingying in China Daily:
Like a real life version of Snow White, Liu Wenxiu‘s kiss literally saved the life of a 16-year-old boy.
Liu just passing by a pedestrian bridge in downtown Shenzhen on June 11 when she spotted hundreds of onlookers watching a young man with a knife in his hand, threatening to jump.
“I saw him get more and more excited – everybody around was just looking, nobody was trying to step up and help,” said Liu, a 19-year-old hotel waitress.
“He had to be saved – because I’ve been there before and I knew exactly how it was,” continued Liu, who had attempted suicide several times. …
“He told me he didn’t have a home anymore, nobody cared about him and no one trusted him. I said nothing but showed him the scars on my right wrist. … With the boy crying even harder, Liu knew he had a sense of being understood.
It’s been quite a while since we proposed a novel solution for ridding our cities of dog poop — DNA registration of pets, and subsequent DNA identification of wayward dung — but it seems to be slowly, slowly gaining acceptance. The Israeli city Petah Tikvah gave it a try, and now the New York Post reports (and Gothamist follows) about an apartment complex in Rockville Center, Long Island, that’s using the DNA method to punish owners who don’t pick up after their dogs. Good to see the power of poop still rolling on.
Here’s a smart take on the current state of law schools from Jonathan Tjarks over at Policymic.com. It’s a rather depressing look at how the odds are similarly stacked against law school grads and college football players. After opening with a nice reference to Sudhir Venkatesh‘s study of the economics of crack from Chapter 3 of Freakonomics, Tjarks’ piece boils down to the following analysis:
Admittance into a top-14 law school, like a scholarship from a top-10 college football program, is the culmination of a lifetime of striving. Of the over 100,000 high school seniors who play football, fewer than 3,000 sign Division I letters of intent. Similarly, the top 25% in Harvard Law’s 2009 class had an average GPA of 3.95 and a LSAT score of 175, which puts them in the 99th percentile of the over 100,000 test takers each year.
Yet, despite overcoming nearly impossible odds, each group still has the toughest test of their lives ahead of them — each other. NFL teams rarely draft players not at the top of the depth chart, even at powerhouses like Texas or Oklahoma. And even at Harvard or Columbia Law, “Big Law” firms — those with the coveted $160,000 starting salaries — don’t reach too far below the median class rank when selecting first-year associate.
An investigation into Atlanta’s public school system has uncovered evidence that teachers and principals have been secretly erasing and correcting answers on students’ tests for as long as a decade. A state investigation found that 178 educators at 44 of the district’s 56 schools engaged in cheating. The report is a huge blow to an urban school district that for years was hailed as one of the country’s most successful due to increased student performance.
From the Atlanta Journal-Constitution:
Superintendent Beverly Hall and her top aides ignored, buried, destroyed or altered complaints about misconduct, claimed ignorance of wrongdoing and accused naysayers of failing to believe in poor children’s ability to learn.
For years — as long as a decade — this was how the Atlanta school district produced gains on state curriculum tests. The scores soared so dramatically they brought national acclaim to Hall and the district, according to an investigative report released Tuesday by Gov. Nathan Deal.
In the report, the governor’s special investigators describe an enterprise where unethical — and potentially illegal — behavior pierced every level of the bureaucracy, allowing district staff to reap praise and sometimes bonuses by misleading the children, parents and community they served.
The report accuses top district officials of wrongdoing that could lead to criminal charges in some cases.
I had an interesting exchange recently while interviewing Tim Westergren, co-founder of the (just-public) internet radio company Pandora for our Freakonomics Radio hour called “The Folly of Prediction.” (We argue in the show that Pandora represents a narrow but worthy example of our ability to predict the future — unlike most realms, like politics, the economy, and so on.)
DUBNER: You know, there’s a neat body of research that shows that people’s tastes in the kind of stuff they consume — whether it’s food, or music, or art, and so on — tend to get fairly frozen in time by the time you hit your mid-thirties or so. Do you know anything about that — about the speed and variance at which people adopt new musical tastes, or are at least willing to experiment, versus their ages?
WESTERGREN: You know, it’s funny, someone said to me a long time ago when I embarked on this, “Why are you doing this? People don’t want new music. I look at my friends and they have the same CD’s they’ve had for 20 years — what problem are you trying to solve?” And I think the truth is the reason that people’s music tastes atrophy is not because they don’t long for discovery. It’s because the don’t have time anymore, and what are they going to do? I know there’s actually a biologist who literally studied this, a fellow at Stanford who studied this, because it seemed like such a strong correlation, but it’s basically when you get busy. When you have a job and you have a family you don’t have time to do anymore. But if you look up behavior on Pandora, the level of enthusiasm, and intensity, and discovery that’s happening is just as rich for folks in their seventies and eighties as it is for, you know, teenagers.
A recent study by a team of economists at Northeastern University’s Center for Labor Market Studies argues that the current economic recovery is the worst since World War II for worker pay and job growth — but the best for corporate profits. The headline:
Over this six-quarter period [from Q2 of 2009 to Q4 of 2010], corporate profits captured 88% of the growth in real national income while aggregate wages and salaries accounted for only slightly more than 1% of the growth in real national income.
That’s right. Of the $528 billion in real national income gained between the second quarter of 2009 and the fourth quarter of 2010, pre-tax corporate profits accounted for $464 billion, while wages rose by just $7 billion.
A reader named Chuck Amos writes:
My bleg is for a list of reliable, unbiased, and intelligent news sources that present general information in a readable and user-friendly way.
This seems like a very simple problem to solve, but my efforts over the years have been unsatisfactory. Sites like CNN.com are presented reasonably well, but the actual “news” is way too fluffy. Sites like Huffington Post are so miserable to look at that I’m not willing to sift through the train-wreck presentation and look for articles that might be interesting. Sites like Salon.com are willing to dig deeper than many of the mainstream news sites, but the politics are biased and therefore fail the test of what I seek.
To make my search more difficult, I don’t care about video (I have limited time, and I’d rather spend 20 seconds skimming/reading a written article than 90 seconds watching a newscast), and the amount of garbage that comes across Twitter feeds makes that outlet of limited use to me.
I’ve had reasonably good experiences with the Economist, Christian Science Monitor, and Guardian sites, but none of them leaves me completely satisfied.
My perfect news site would simply be a list of headlines that link to well-written, well-researched articles on a broad variety of topics. Sort of like an AP feed, but with articles that contain more than 2 poorly written paragraphs.
Can anyone point me in the right direction?
Here’s an interesting article by Megan Finnegan from West Side Spirit, a neighborhood newspaper in New York City, about the shutdown of a 30-year-old citizens’ crime-prevention program.
Why did it shut down?
In part because funding was cut. But also because it had essentially accomplished its mission:
Like many neighborhoods in Manhattan, the Upper West Side has seen a precipitous drop in crime over the past several decades. Since 1990, total crime rates have been reduced by 84 percent in the 20th Precinct and 82 percent in the 24th Precinct, with the highest reductions in grand larceny auto, murder, robbery and burglary.
This got me to thinking:
When wars end, we expect a “peace dividend.” When crime ends, what kind of “crime dividend” (or, perhaps, “safety dividend”) should we expect?
A new study by the Cultural Cognition Project, a team headed up by Yale law professor Dan Kahan, shows that people who are more science- and math-literate tend to be more skeptical about the consequences of climate change. Increased scientific literacy also leads to higher polarization on climate-change issues:
The conventional explanation for controversy over climate change emphasizes impediments to public understanding: Limited popular knowledge of science, the inability of ordinary citizens to assess technical information, and the resulting widespread use of unreliable cognitive heuristics to assess risk. A large survey of U.S. adults (N = 1540) found little support for this account. On the whole, the most scientifically literate and numerate subjects were slightly less likely, not more, to see climate change as a serious threat than the least scientifically literate and numerate ones. More importantly, greater scientific literacy and numeracy were associated with greater cultural polarization: Respondents predisposed by their values to dismiss climate change evidence became more dismissive, and those predisposed by their values to credit such evidence more concerned, as science literacy and numeracy increased. We suggest that this evidence reflects a conflict between two levels of rationality: The individual level, which is characterized by citizens’ effective use of their knowledge and reasoning capacities to form risk perceptions that express their cultural commitments; and the collective level, which is characterized by citizens’ failure to converge on the best available scientific evidence on how to promote their common welfare. Dispelling this, “tragedy of the risk-perception commons,” we argue, should be understood as the central aim of the science of science communication.
From the (Syracuse) Post-Standard:
A Parish man who was participating in a motorcycle helmet protest ride was killed this afternoon when he went over the handlebars of his motorcycle and injured his head on the pavement, state police said.
Philip A. Contos, 55, of 45 East St., Parish, was not wearing a helmet while driving a 1983 Harley Davidson motorcycle south on Route 11 in Onondaga with a large group of other motorcyclists, troopers said. …
Evidence at the scene and information from the attending physician indicate Contos would have survived if he had been wearing a Department of Transportation approved helmet, troopers said.
When foreign friends visit the States and are puzzled by some of the quirks of our Government, I often point to helmet laws — which differ state by state — as an example of how things work, or fail to work, depending on your point of view.
If the strongest argument in favor of a universal helmet law is that we all share medical and emergency costs to some degree and should therefore minimize them, what is the strong argument against such a law?
One bizarre unintended consequence of the rollback in helmet laws: more human organs available for transplantation. From SuperFreakonomics Illustrated:
Between 1994 and 2007, six states repealed laws that required all motorcyclists to wear helmets. Here’s a look at per-capita organ donations from male victims of motor-vehicle crashes in those states versus all other states.*
*See Stacy Dickert-Conlin, Todd Elder, and Brian Moore, “Donorcycles: Motorcycle Helmet Laws and the Supply of Organ Donors.”
I don’t know enough about the Chinese economy — or the U.S. economy, for that matter — to say just how big a deal this is, but I sense it’s potentially pretty big:
China said local governments owe debt equal to more than a fourth of the country’s economic output, the first time Beijing has put a number on such debt, fueling fears banks could again face mountains of bad loans and underlining the limits Beijing faces as it battles inflation.
The National Audit Office said Monday that local-government debts total some 10.7 trillion yuan ($1.65 trillion), or 27% of China’s gross domestic product last year. The report Monday was billed as a comprehensive tally of such debt, much of which was incurred during a two-year stimulus-spending binge ordered by Beijing to fight the effects of the global recession.
Some analysts say the National Audit Office’s figure failed to count certain kinds of local government debt, meaning the actual total could be even higher.
Either way, the figure released Monday affirms analysts’ belief that the true level of China’s government debt is considerably higher than has been acknowledged by the Finance Ministry, which puts just the central government’s debt at 17% of GDP without taking into account local governments’ debt.
Our paper on discrimination in baseball has finally been published (June AER). While it received a lot of media and scholarly comment in draft, the final version contained a whole new section. The general idea is that those discriminated against will alter their behavior to mitigate the impacts of discrimination on themselves. But while reducing the impacts, these changes are not costless. For example, if you’re an Hispanic pitcher and think that the white umpire is against you, you’ll change your pitches. Where will you throw? How will you throw?
We once made a podcast about the etiquette of following (and being followed) on Twitter. But it didn’t address this possibility:
I’m back to inviting readers to submit quotations whose origins they want me to try to trace, using my book, The Yale Book of Quotations, and my more recent researches.
Joseph asked:
“Rule of thumb. I have heard it was a common law rule about the thickness of a switch with which no punishment would occur for spousal abuse. I have also heard that this is not correct. I cannot find a definitive source and meaning.”
Last year, Notre Dame economist William Evans, along with Timothy Moore from the University of Maryland, documented that mortality rates spike by almost one percent on the first day of every month, remain high for the next few days, and then steadily decline over the course of the month. Now they think they’ve figured out one reason why: our paychecks are killing us.
In a study to be published in an upcoming issue of the Journal of Public Economics, Evans and Moore examined the death records of four demographic groups in the U.S.: seniors on Social Security; military personnel; families receiving tax rebate checks in 2001; and recipients of Alaska’s Permanent Fund dividends. Their results show that mortality increased the week after checks arrived for each of these groups.
A new study has some interesting things to say about the demand curve of heroin users. Drawing data from volunteers who use the drug daily, researchers Juliette Roddy, Caren Steinmiller, and Mark Greenwald tested three parameters: an income shock; removing the financial support of family and friends; and multiplying the the risk of getting caught. They found that income reduction had some effect: as income decreases, those who purchase a lot of heroin scaled back more than those who bought a little. When government subsidies were removed, participants also attested that they would buy less. They also found that participants with cocaine in their urine were more efficient drug buyers – this subgroup lowered transaction costs by shaving both distance (making sure they lived close to a drug dealer) and time in their purchases. They found that the more frequent the user, the most cost-effective they are about their heroin purchases, with those who also use cocaine being the most effective shoppers.
A reader named Aras Gaure, who identifies himself as a trainee with the Royal Norwegian Embassy in Pretoria, South Africa, writes to us:
At my workplace, smoking is prohibited –- as in a substantial number of other indoor workplaces. In order for me to have a smoke, I have to walk about 10 meters, get down 2 flights of stairs (a total of nineteen steps), and then walk 15 meters to the nearest terrace. In one workday, I have about 4-5 cigarettes, which means I cover a distance of about 200-250 meters and between 144 and 180 steps every day with regard to my smoking. Many people obviously smoke more and have to cover an even greater distance in order to have a cigarette. As a result of continuous bans on smoking around the world, people (who don’t quit) in many cases have to go through physical exertion numerous times a day to have a smoke. My question is whether or not this (in any sense or form) can be considered beneficial (especially for people who otherwise wouldn’t get this exercise)?
An interesting question but my sense is that the amount of exercise Aras describes — or even 5x that amount — is so minimal that it wouldn’t come close to offsetting the downsides of smoking. There are certain reported “health benefits of smoking,” including weight loss, but even for someone who likes finding counterintuitive trends, I have a hard time buying Aras’s wishful thinking. Am I wrong?
This week: Why is our vision getting worse? Could an airline-style loyalty program work for public transportation? Why rich people are bad at reading the emotions of strangers, and a Cornell study uncovers corruption among Amazon’s top reviewers.
From a recent USA Today article by Jonathan Shorman comes an astounding (to me) set of facts about drugs and driving that certainly ought to be considered as part of the conversation about decriminalizing marijuana:*
Researchers examined data on more than 44,000 drivers in single-vehicle crashes who died between 1999 and 2009. They found that 24.9% tested positive for drugs and 37% had blood-alcohol levels in excess of 0.08, the legal limit. Fifty-eight percent had no alcohol in their systems; 5% had less than 0.08. The data were from a government database on traffic fatalities.
Study co-authors Eduardo Romano** and Robert Voas of the Pacific Institute for Research and Evaluation in Calverton, Md., say their study is one of the first to show the prevalence of drug use among fatally injured drivers. Among drivers who tested positive for drugs, 22% were positive for marijuana, 22% for stimulants and 9% for narcotics.
Recent discussions of whether the Fourteenth Amendment’s Public Debt Clause would allow the president to ignore the debt limit reminded me of a paper on the topic that a former student of mine, Michael Abramowicz, wrote under my supervision almost fifteen years ago. Michael has since become a prolific scholar on other topics, and this year he had the rare distinction of publishing articles in both the Harvard Law Review (here) and the Yale Law Journal (here). Meanwhile, he and I have recently coauthored twice, on randomizing law (also with my colleague Yair Listokin) and on using bonds as commitment devices. I tried to find Michael’s old article with Google and couldn’t, so I wrote to him asking about it. With his permission, I include here his reply:
“Freakonomics Radio seeks an Assistant Producer to help turn academic research, underreported events, and everyday life into unforgettable stories for this public radio project.” The full listing can be found here.
The news that In.Gredients, a “package free, zero-waste” grocery store, will debut in Austin, Texas is certainly cause for optimism. The store, which will be located on the rapidly gentrifying east side of town, is bound to find an eager market of young, progressive consumers raised on a steady diet of environmental ethics, especially the unmitigated horrors of plastic. In addition to its quest to eliminate waste, the store, according to its press release, also promises to promote local and organic food, thereby achieving a trifecta of green grocer bona fides. It should do well.
That said, I think the brains behind In.Gredients vastly underestimate the environmental implications of their bold idea. The tawdry rhetorical appeal to reduced packing, local production, and organic food might resonate with an audience accustomed to associating these traits with eco-correctness. But the carbon-footprint complex isn’t so simple. Fortunately, in this case (and somewhat coincidentally), it happens to be far more consistent with the store’s purported mission.