A common assumption is that the rise of drug testing among U.S. employers must have had negative consequences for black employment. I use variation in the timing and nature of drug testing regulation ...to identify the impacts of testing on black hiring. I find that adoption of protesting legislation increases black employment in the testing sector by 7% to 30% and relative wages by 1.4% to 13.0%, with the largest shifts among low-skilled black men. The results are consistent with ex ante discrimination and suggest that drug testing may benefit African Americans by enabling nonusing blacks to prove their status to employers.
Modeling the Loss Distribution Chava, Sudheer; Stefanescu, Catalina; Turnbull, Stuart
Management science,
07/2011, Letnik:
57, Številka:
7
Journal Article
Recenzirano
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In this paper, we focus on modeling and predicting the loss distribution for credit risky assets such as bonds and loans. We model the probability of default and the recovery rate given default based ...on shared covariates. We develop a new class of default models that explicitly accounts for sector specific and regime dependent unobservable heterogeneity in firm characteristics. Based on the analysis of a large default and recovery data set over the horizon 1980-2008, we document that the specification of the default model has a major impact on the predicted loss distribution, whereas the specification of the recovery model is less important. In particular, we find evidence that industry factors and regime dynamics affect the performance of default models, implying that the appropriate choice of default models for loss prediction will depend on the credit cycle and on portfolio characteristics. Finally, we show that default probabilities and recovery rates predicted
out of sample
are negatively correlated and that the magnitude of the correlation varies with seniority class, industry, and credit cycle.
This paper was accepted by Wei Xiong, finance.
This paper analyses whether international migrants contribute to increasing technological advances in developing countries by inducing a transfer of productive knowledge from developed countries back ...to migrants' home countries. Using the Economic Complexity Index as a proxy for the amount of productive knowledge embedded in each countries and bilateral migrant stocks of 20 OECD destination countries, we show that international migration is a strong channel of technological transmission. Diasporas foster the local adoption of new technologies by connecting high technology countries with low ones, reducing the uncertainty surrounding their profitability. Our empirical results support the hypothesis that technological transfers are more likely to occur out of more technologically advanced destinations and when emigration rates are particularly high.
Suburbanization—thriving suburbs surrounding increasingly impoverished inner cities—dominated the US postwar urban landscape. However, already in the 1980s there were signs of urban rejuvenation, and ...the decades since have seen gentrification replace urban decay. In this paper, we argue that this trend reversal stems from the rise in hours worked by high‐income households, epitomized by the dual‐earner household replacing the breadwinner–housewife household. Using a Bartik‐style share shifter for skilled labour demand and analysing restricted‐use Census microdata covering the 27 largest US cities for the period 1980–2010, we find support for our hypothesis. ‘Low‐leisure‐high‐skill’ households showed a pronounced proclivity towards central city location and their estimated effect on housing prices can account for the observed emergence of centrality as an increasingly prized amenity.
Research into tourism phenomena is regarded as a multidisciplinary quest, but to date no work has endeavored to quantify or characterize the extent to which various scholarly disciplines and research ...fields inform our scholarly discourse. The purpose of this analysis was to assess the multidisciplinary character of tourism research between 1980 and 2010. Previous efforts to analyze the use of the literature from other disciplines have been significantly limited. In this study, we sought to address this need by analyzing a sample comprising nearly 3,000 citations from tourism research articles published in a range of tourism journals stratified by journal ranking and time period.
Industry Window Dressing Chen, Huaizhi; Cohen, Lauren; Lou, Dong
The Review of financial studies,
12/2016, Letnik:
29, Številka:
12
Journal Article
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We explore a new mechanism by which investors take correlated shortcuts and present evidence that managers—using sales management—take advantage of these shortcuts. Specifically, we exploit a ...regulatory provision wherein a firm's primary industry is determined by the highest sales segment. Exploiting this regulation, we provide evidence that investors classify operationally nearly identical firms as starkly different depending on their placement around this sales cutoff. Moreover, managers appear to exploit this by manipulating sales to be just over the cutoff in favorable industries. Further evidence suggests that managers engage in activities to realize large, tangible benefits from this opportunistic action.
This article examines how the extent of short-term trading relates to the efficiency of stock prices. We employ a new duration measure based on quarterly institutional investors' portfolio holdings, ...next to existing proxies such as trading volume, the percentage of transient institutions, and fund turnover. Momentum returns and subsequent returns reversal are generally much stronger for stocks held primarily by short-term investors, especially if these investors recently had superior recent performance which could make them overconfident. Our results point toward the behavioral theory in Daniel, Hirshleifer and Subrahmanyam (1998) and seem inconsistent with short-term institutions improving efficiency.
This paper investigates the timing and source of anomalous positive long-run abnormal returns following repurchase authorizations. Returns between program authorization and completion announcements ...are indistinguishable from 0. Abnormal returns occur only after completion announcements. Long-run returns are largely attributable to announcement returns at subsequent authorizations and takeover attempts; that is, anomalous post-authorization returns are not persistent drifts but rather step functions. These findings have important implications for prior papers examining this most persistent and widespread anomaly. Further, our results serve to refocus the search for a rational explanation for the anomaly on subsequent repurchase announcements and takeover bids.
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