Parents may have important effects on their children, but little work in economics explores whether children's schooling opportunities crowd out or encourage parents' investment in children. We analyze data from the Head Start Impact Study, which granted randomly chosen preschool-aged children the opportunity to attend Head Start. We find that Head Start causes a substantial increase in parents' involvement with their children-such as time spent reading to children, math activities, or days spent with children by fathers who do not live with their children-both during and after the period when their children are potentially enrolled in Head Start.
We study the effect of a firm winning an additional H-1B visa on the firm's outcomes, by comparing winning and losing firms in the Fiscal Year 2006 and 2007 H-1B visa lotteries. We match administrative data on the participants in these lotteries to the universe of approved U.S. patents, and to IRS data on the universe of U.S. firms. Winning additional H-1B visas has insignificant effects on firms' patenting and use of the research and experimentation tax credit, with confidence intervals that generally rule out more than modest effects. Additional H-1Bs cause at most a moderate increase in firms' overall employment, and these H-1Bs substantially crowd out firms' employment of other workers. There is some evidence that additional H-1Bs lead to lower average employee earnings and higher firm profits.
Programs to encourage labor market activity among youth, including public employment programs and wage subsidies like the Work Opportunity Tax Credit, can be supported by three broad rationales. They may (i) provide contemporaneous income support to participants; (ii) encourage work experience that improves future employment and/or educational outcomes of participants; and/or (iii) keep participants “out of trouble.” We study randomized lotteries for access to the New York City (NYC) Summer Youth Employment Program (SYEP), the largest summer youth employment program in the United States, by merging SYEP administrative data on 294,100 lottery participants to IRS data on the universe of U.S. tax records; to New York State administrative incarceration data; and to NYC administrative cause of death data. In assessing the three rationales, we find that (i) SYEP participation causes average earnings and the probability of employment to increase in the year of program participation, with modest contemporaneous crowdout of other earnings and employment; (ii) SYEP participation causes a modest decrease in average earnings for three years following the program and has no impact on college enrollment; and (iii) SYEP participation decreases the probability of incarceration and decreases the probability of mortality, which has important and potentially pivotal implications for analyzing the net benefits of the program.
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