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Archive for November, 2011:


Essays on self-employment

Hamilton2000) argues that the self-employed consistently earn less than comparable employed workers and concludes that most workers who choose to try self-employment must do so because they receive substantial non-pecuniary benefits, such as “being your own boss.” However, Hamiltons analysis assumes that a workers entry into self-employment is irreversible. In chapter 1, I treat this decision as reversible and compare the lifetime income of those who try self-employment to those who do not. I find that once I incorporate sectoral mobility and hours into the agents decision problem, a majority of those who try self-employment fare better than those who do not. I explicitly control for selection by employing nearest neighbor matching and use PSID data to study the realized income paths of self-employed individuals and their “twins.” A natural question is whether the experiences of women are similar: do women, on average, earn a premium for trying self-employment, or on the contrary, do women pay a premium for non-pecuniary benefits such as increased flexibility to choose work hours? Using the methods described in Chapter 1, I find that on average women who try self-employment sacrifice income for doing so, while working more hours, during the first 5 years. However, mothers of small children who try self-employment earn a premium for doing so, in part due to savings in child care costs. Interestingly, these mothers work at least as many hours, suggesting the availability of additional scheduling flexibility in the self-employment sector. The ability to smooth consumption through investment in a risky asset is important if the sectoral covariances of income with risky assets differ, which Rosen & Willen2002) found to be the case with PSID data. In chapter 3, I corroborate their result using PSID data and the method from chapter 1, but find that this covariance depends upon the income measure used. When I instead use SIPP data from 1990 through 2004, I do not find strong evidence of a difference between the covariance of risky assets and incomes across sectors. However, there is evidence to suggest that the self-employed more actively invest in risky assets.

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Essays on industry dynamics in an emerging economy

This dissertation studies the entry, exit and growth of firms from a theoretical and empirical point of view, making use of a rich panel data set of Chilean firms. Given that emerging economies have been highly neglected in empirical work on industry dynamics, filling this gap constitutes an important contribution. Chapter One presents evidence of endogenous sunk costs in the retail industry, while Chapter Two studies the determinants of firm survival. Chapter Three presents an estimable dynamic structural model of an oligopoly retail industry. Unlike existing models, it includes firm size and growth as endogenous variables, and considers two sources of permanent unobserved heterogeneity. The first chapter uses data from retail industries in Chile to test Shaked and Suttons 1987) hypothesis of endogenous sunk costs. I find that industries which are less likely to have endogenous sunk costs display a significant negative relationship between market size and concentration. In contrast, in the supermarket industry, where investment in advertising is presumed to be more intense, the tests show that concentration does not vary with market size and is bounded away from zero. The second chapter tests and measures the effect that variables such as location, firm size, market size and aggregate shocks have on the probability of new firm survival. The main results are that, in general, the firms age and the net entry into the industry increase the probability of survival while firms start-up size decreases it. This contrasts with what has been found in previous studies for developed economies. The third chapter presents an estimable model in which retail firms are assumed to be vertically and horizontally differentiated, compete in prices, make investments to improve the quality of their businesses, and decide whether or not to exit the market. It extends the model of Aguirregabiria and Mira 2007) by including firm size and growth as endogenous variables, and by allowing for permanent unobserved heterogeneity across local-markets and across firms.



Race, river, and the railroad: Black Huntington, West Virginia, 1871-1929

Significant numbers of studies have elevated the African American experience in Central Appalachia, the Ohio River Valley, and the rural-industrial circumstance of the black coal miner in southern West Virginia. Yet, stories unearthing black migrant life in urban-industrial settings in this region have been largely neglected. Examining the experiences of black migrants and residents in the embryonic urban-industrial environment of Huntington, West Virginia, during the late-nineteenth and early-twentieth century, my dissertation contributes to recent literature refuting the myth of black invisibility in Central Appalachia. Founded in 1871 as a trans-shipment point for the Chesapeake and Ohio Railroad, Huntingtons burgeoning economy and comparatively tolerant racial climate attracted increasing numbers of black migrants drawn to the socio-cultural and economic opportunities for African Americans not found further south. Yet, by the early twentieth-century black aspirations became increasingly constrained as white Huntingtonians, emblematic of deep southern practices, embraced and implemented the tenets of Jim Crowism. My study compliments works within the new urban history paradigm elevating the purposeful nature of black agency in the migratory process, the development of a black working-class, community development, and black response to Jim Crowism. By focusing explicitly on the multi-layered transition of southern rural and semi-rural black migrants to life in the urban-industrial enclave of Huntington, West Virginia, between 1871 and 1929, this study adds to our knowledge of southern black migration and the migrant experience, the nature and parameters of community, and the extent and character of black response to Jim Crowism. Strategically located adjacent to the Ohio River in the Tri-state region of southwestern West Virginia, southeastern Ohio, and eastern Kentucky, and founded as a transshipment station by financier Collis P. Huntington for the Chesapeake and Ohio Railroad in 1871, Huntington grew from a non-descript village to the states most populated city by 1930. Huntingtons black population grew in concert, so much so that by 1930, the citys black population comprised the second largest in the state, behind Charleston, the state capital. Black migrants, drawn by the promise of jobs linked to the C & Os construction through the primeval New River Valley, the completion a decade later of the Norfolk and Western Railroad line southwest of the C & O, and Huntingtons attendant rise as a commercial, manufacturing, and industrial center, increasingly settled within its confines throughout the late-nineteenth and early-twentieth century. Here, they navigated the socioeconomic and political dynamics of race, space, class, gender, and region. Examination of the black experience in Huntington provides an alternative to the southern-rural or northern-urban understanding of black life. Unlike the massive inter-regional migration that transformed the urban north during the Jim Crow era and the inter-war years, Huntingtons urban-industrial growth, like that in the rural-industrial southern West Virginia coalfields, resulted from the intra-regional migration of southern blacks. Though commonalities linked the two experiences, the urbanization process posed different challenges, burdens, and opportunities to the black migrant. Unlike the autonomy black coal miners experienced in the mines, direct and intensive supervision marked the urban industrial workplace. This study compliments recent literature de-emphasizing the ghettoization paradigm. While socioeconomic forces and racism constrained black ability to live where they wanted, no ghetto existed in Huntington for the length of this study. Part of this development can be traced to growing black residential concentration within the city and the multi-class and in some places) interracial character of predominately black neighborhoods. Unlike studies asserting proletarianization as a conceptual model to encapsulate the black working class experience, race, not class served as the primary foundational and operative of the Afro-Huntingtonian experience. However, this conclusion does not mitigate the development of class fissures within black Huntington. The rise of a professional class during the late-nineteenth and early twentieth century marked an important milestone in the maturity of black Huntington, one that challenged the status quo of white Huntingtonians and complicated black aspirations. A study of Huntingtons black population provides insight into the adaptive techniques and strategies—the strength of kin and social networks, gainful employment, institutional development, property acquisition, and legal challenges—used to confront the manifestations of segregation in an evolving urban-industrial southern environment.



Intrapsychic measurements in determining the effectiveness of treating juvenile offenders in a county correctional facility

Fueled by the existing political climate of the late 1980s, there was a rediscovery in corrections of the integration of the military model. Since that time there have been debates about the effectiveness of the boot camp. Although debates about boot camps have varied from the ethics to economics, the majority of the focus of the debates and research has been on whether boot camps can effectively reduce criminal behavior. Most frequently, research has relied on recidivism rates as a measurement of the effectiveness in reducing crime, yet there are some serious concerns about the limitations of utilizing recidivism for this goal. More recent research has moved beyond recidivism measurements and attempted to measure positive changes in criminality by examining criminal perceptions, attitudes, and other intrapsychic measures. The present study attempted to measure changes in offenders attitudes as a result of being exposed to the highly structured atmosphere of a boot camp. Juvenile offenders sentenced to a county correctional facility that utilizes the military model as the principal structure of its treatment milieu were administered a questionnaire designed to measure attitudes theoretically indicated in the formation and maintenance of delinquent coping responses. The 100-item questionnaire was administered in a pretest-posttest design to measure the degree of attitudinal changes in probationers as attributed to their participation in a county probation boot camp. Unfortunately, due to budgetary issues the juvenile boot camp program closed before data gathering was completed, seriously limiting the power of data analysis and the conclusions reached. The findings, although limited, do reveal that participation in a county level juvenile correctional facility did not result in significant, positive differences in juveniles attitudes. Suggestions for future research include measures of change above and beyond recidivism rates, a theoretical rationale for what measures of change are utilized, and the use of a randomized sample as a control group.



Gender inequalities, capital deepening and trade in Turkey’s manufacturing sector 1990-2001

This dissertation analyzes the effects of technological change, capital intensity and increased trade activity on the gender/skill differentiated employment in the trade-related subsectors of the Turkish manufacturing industry during the 1990-2001 period. The primary objective is to find out the changes in relative employment opportunities for women workers as industries respond to increased international competition by pursuing the high road of increasing productivity. I use the Seemingly Unrelated Regression (SUR) method to examine the determinants of skill/gender-/intensity of employment. The data are from annual manufacturing surveys for private establishments that employ ten or more employees in sectors disaggregated at the ISIC three-digit level. I find evidence in support of capital-skill complementarity during the 1990-2001 period. Capital deepening, however, did not have gender neutral employment effects. Specifically, I find that for the manufacturing industry as a whole capital had a preference for skilled males over skilled females controlling for the effects of trade. When I focus on the individual sectors, however, I find that some sectors had skilled-male labor complementarity with capital while some of them had skilled-female labor complementarity.



The effectiveness of the small business innovation research program within the Navy

The goal of this dissertation is to identify emerging Small Business Innovative Research SBIR) trends within the United States Navy as the result of the changing geopolitical, economic, and technological environment. The primary hypothesis for the dissertation is “Phase III SBIRs are an effective means to transition emerging technologies into Navy Programs.” A literature search conducted prior to this study showed that information was lacking concerning the success rate for transitioning SBIR technologies into operational naval platforms. There appeared to be no available data which tracked Phase III technology transitions originated by the SBIR program. This study has attempted to fill this gap and answer an important question about the effectiveness of the SBIR program. Congress established the Small Business Innovation Research program in 1982 to provide an opportunity for small businesses to conduct Research and Development R&D), and speed the conversion of their research findings into commercial products. Organized as a competition, the SBIR program allows smaller companies the opportunity to test high-risk theories and develop innovative technologies. The objectives of the original 1982 Small Business Innovation Development Act were to: 1) Stimulate technological innovation, 2) Use small business to meet Federal research and development needs, 3) Foster and encourage participation by minority and disadvantaged persons in technological innovation, and 4) Increase private sector commercialization of innovations derived from federal research and development. There are 11 government agencies active in the SBIR program with numerous subagencies that advertise for SBIR projects. Because each sponsoring agency has its own interests and requirements, their SBIR projects have tended to vary greatly in value and difficulty. In order to limit the scope of this dissertation, and because the investigator has extensive experience with the Navys SBIR program and naval systems, the study concentrated on Navy Programs only. The study was also narrowed to look at only objective 4) of the original law as it pertains to the Navy. Also, if a technological innovation developed from a Phase III SBIR project is transitioned into procurement by the Navy, then the innovation was considered to be commercialized. A survey of current and former Navy Program Managers was conducted to evaluate the successes and limitations of the SBIR program as they were considered the key stakeholders, and previously overlooked resource for knowledge on SBIR technology insertion. The results of the survey were used to assess the hypothesis that the SBIR Phase III Transition Program was effective. Primary research in the form of survey questionnaires were sent to approximately 60 Navy Program Managers. A total of 21 questionnaires were returned by the respondents. Subsequently, follow-up structured interviews were conducted with 13 selected respondents. Program background and prior research was obtained through a literature review. The review identified several earlier studies dealing with the SBIR program, the background of the SBIR program, historical funding, and legislative information. The literature review was then used to develop the hypotheses for this dissertation as well as the survey questionnaire. An additional literature search conducted after the survey was completed assisted in the interpretation of the results. The combined literature review and original research resulted in the conclusions presented at the end of this dissertation. The survey questionnaires were comprised of 35 questions in a Likert scale format, and 28 Investigative questions with open-ended answers. The data collected from the Likert questions was statistically analyzed, while the Investigative questions were used to collect qualitative information. The Investigative questions were developed to provide qualitative information from experiences of Navy Program Managers with the SBIR program. The Investigative questions were also used to identify different methodologies used by various Navy organizations in conducting Phase III transition.



Freight railroad security: A case study of post 9-11 effectiveness

Ongoing challenges for U.S. security agencies include determining what methods of terrorism may be deployed post-9/11 to execute attacks, determining security management improvements or changes implemented in order to advance overall safety, and determining what security management improvements or changes should still be made. The purpose of this study was to explore these challenges specifically within the U.S. freight railroad system. Based in systems theory, the holistic case study examined the question if broad and unrestricted methods still exist by which terrorists can strike the railroad system. Following a participant observation model proposed by Yin, coding of direct observations and inspection of physical artifacts, documents, and legislation were aligned to three priority themes within the main research question. Data were then linked into an explanatory cause/effect model which suggested that multiple factors related to freight railroading make it a high potential target for terrorism. The study contributes to social change by identifying terrorism vulnerability risks, promote security improvements, and advance the overall efficacy of security operations within the U.S. freight railroad system.



Social network analysis and interpersonal comparisons of utilities in behavioral games

In 1999, Fehr and Schmidt conducted an experimental study on how aversion towards inequity changes payoffs in a game through feelings of envy or guilt. In this study, an Inequity Aversion Utility Function is constructed to show how decision making behaviors of players are affected due to their economic environment and the heterogeneity of preferences. However, these studies are based on costly, time-consuming experiments with inconsistent players with noisy choice behaviors. Thus, I propose the usage of Social Network Analysis metrics to derive coefficients of envy and guilt for Inequity Aversion utility function as an alternative. Social Network Analysis is an alternative to experimental studies because the tool focuses on how the network structure of ties affects individuals behavior and thus it is a good alternative for deriving preference parameters for studies using Interpersonal Comparison of Utilities. The two methods of Social Network Analysis and Interpersonal Comparison of Utilities are connected by a transformation function that takes a nodes attributes in a Social Network and shows the individuals relative decision making process within an institution. By acquiring proximity and saliency of the individuals from Social Network data and plugging it into a generalizable transformation function, Fehr and Schmidts envy and guilt coefficients can be derived without conducting experimental studies. After fusing the theories of Interpersonal Comparisons of Utility and SNA, I choose a study on trade and conflict to evaluate my proposition the usage of SNA metrics to derive coefficients of envy and guilt for Inequity Aversion utility function is a valid alternative to experimental studies. The application of my postulated theoretical relationships to the analysis of trade and conflict shows that social network analysis can be a powerful explanatory method for characterizing institutional trading arrangements. This is evidenced by the seven-fold increase in explanatory power of the study of trade and conflict compared to excluding institutional variables. The transformation functions only increases the explanatory power of trade and conflict relationship analysis is also increased by five times demonstrating that it plays an important role.



Urban middle school beginning teachers’ perceptions of their ability to demonstrate culturally responsive pedagogy and its importance following the completion of a new teacher support program

Culturally responsive pedagogy (CRP) is an approach to teaching and learning that (1) uses students’ cultural knowledge and experiences, (2) incorporates a culturally compatible classroom environment, (3) provides students with opportunities to demonstrate learning using a variety of assessment techniques, and (4) provides students with the knowledge and skills needed to function in mainstream culture while maintaining their cultural identity and native language (Siwatu, 2007). This primarily quantitative study examined 61 urban middle school beginning teachers’ from Title I schools with ethnically and/or linguistically diverse student populations. This study investigated the frequency to which beginning teachers demonstrated culturally responsive pedagogy and its importance in the classroom. The scores from the Culturally Responsive Pedagogy Frequency Scale (CRPFS) suggested beginning teachers demonstrated incompetent CRP behaviors. In addition, the Culturally Responsive Pedagogy Disposition Scale (CRPDS) results revealed higher scores for culturally responsive pedagogical importance than CRP behaviors. ANOVA (p<.05) results suggested that the amount of multicultural courses did not have an affect on beginning teachers’ culturally responsive pedagogy and disposition. A Pearson Product-Moment Correlation Coefficient (p<.05; p<.01) results indicated that culturally responsive assessment and empowerment are least likely to have a relationship with cultural self-awareness, culturally responsive curriculum and instruction, and classroom management. Implications for teacher preparation programs, state, district and school leaders, and teachers are included in this study.



The political economy of cyclical crises in Turkey: The role of the banking sector

Turkey has been experiencing severe economic crises in almost every decade since the end of WWII. These crises became more severe and frequent after Turkey instituted market-oriented reform in the 1980s. The persistence of crises in the Turkish political economy is puzzling given various economic reform programs implemented over an extended period of time by governments of both the right and the left of the political center. This dissertation addresses the question of why Turkey has experienced this crisis-ridden development course, even after undergoing liberalizing reform. The extant literature on this question emphasizes particular institutional factors the prevalence of rent-seeking behavior, clientelism, and authoritarian state structures) and structural factors e.g. global capital movement, forms of capital accumulation) to explain Turkeys record. This dissertation develops a different explanation that centers on the role of the financial sector in Turkish political development. It argues that Turkeys propensity to crisis can be explained by the way in which financial institutions were linked to economic development policies starting with the creation of state banks as a tool of state-led industrialization strategy in the 1920s. Crises in the Turkish political economy always involved the dynamics of credit growth generated in the banking sector. The ensuing moral hazard on the part of both public and private sector rendered effective monetary policies both politically and economically infeasible. Turkeys early financial reforms did not resolve this dynamic because they were primarily guided by domestic political elites whose macroeconomic and distributional concerns continued to guide the way the financial sector was regulated. Evidence for this argument is offered through an analysis of financial sector regulation both in the pre-and post liberalization period. This dissertation contributes to the literature in two ways. As spelled out, it offers an alternative explanation for the persistence of crises and the pattern of liberalizing reform in the Turkish political economy. Secondly, it contributes to our understanding of institutional change by challenging the assumption that international market forces are the main forces guiding economic reforms in developing countries.



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