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Abstract: Gay/bisexual workers tend to earn less than other men. Does this occur because of discrimination or because of selection? In this paper we address this question and collect new information on workplace disclosure to separate out discrimination effects from selection effects. Using a large sample of recently graduated men in the Netherlands, we find that gay/bisexual workers earn about 3 to 4 percent less than other men. Our disclosure estimates, however, provide little evidence that the labor market discriminates against gay/bisexual workers. They rather support the selection story, most prominently observed among undisclosed gay/bisexual workers who concentrate in lower paid occupations, and earn about 5 to 9 percent less than other men. Download this paper.
Abstract: We explore the adoption data approach to estimating causal effects of parental education and income on the same outcomes of their children. Thanks to a data set drawn from Swedish population registers with detailed information on biological background and history of adoptees, we can test basic assumptions that the adoption strategy relies on. We find that the adoption method survives these tests surprisingly well. Our empirical results suggest that one more year of either mother′s or father′s education raises children′s education by about 0.1 year. Our estimated income elasticities are around 0.1. Download this paper.
Abstract: This paper examines how family background affects the influence of childhood ability on educational attainment and future earnings. In it, we find that ability measured by various IQ tests taken at age 12 predicts future success for males about equally well. And that his returns to ability based on his earnings at age 43 and 53 are rather stable. For females, however, explanatory power and returns of various IQ scores are falling over time. We also find that cognitive ability is rewarded differently across families. The observed differences are consistent with the idea that accessibility to family resources influences the educational attainment of children, and therefore future earnings. We find that fortunate families are better equipped to provide their low ability scoring children with compensating human capital to overcome early learning deficiencies. And we find that imperfect credit markets especially hit smart boys coming from poor families where lacking resources restrict their educational career. Download this paper.
Abstract: It is widely believed that a dual system of vocational education provides an efficient way to learn vocational skills and to lay the basis for an efficient insertion in the labour market. In the Netherlands students can choose between vocational schools and an education within the apprenticeship system. In this paper we analyze whether in the long run workers with an apprenticeship do better than workers who have gone through a vocational school. It is found that there are hardly any differences in earnings, earnings growth and employment opportunities between workers with an apprenticeship and those who went to a vocational school. Download this paper.
Abstract: Strictly equal utility is seldom used as a compensation principle in real-world policy applications. We specify less radical norms for deriving income tax rates and find that equivalence defined as equal proportional sacrifice best fits the observed income tax structure in the Netherlands. We use the Leyden welfare function of income as our measure of utility. Download this paper.
Abstract: There are various ways in which the family affects individual schooling decisions. To address these family forces at work, this paper asks whether parental human capital and parental income have distinct positive impacts on the childrens human capital formation. Estimates are presented that control for ability transmissions across generations using observed ability measures and the human capital of grandparents. Using the Dutch Brabant survey, I find that the human capital formation of boys is largely due to parental human capital transmissions. For girls I find that both parental human capital and parental income matters. These findings suggest credit market imperfections restrict the schooling decisions for girls. Download this paper.