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Does Mental Productivity Decline with Age? Evidence from Chess Players

May 7, 2013 Comments off

Does Mental Productivity Decline with Age? Evidence from Chess Players

Source: Institute for the Study of Labor

We use data on international chess tournaments to study the relationship between age and mental productivity in a brain-intensive profession. We show that less talented players tend to leave the game in the earliest phases of their career. When the effects of age on productivity vary with unobserved ability, commonly used fixed effects estimators applied to raw data do not guarantee consistent estimates of age-productivity profiles. In our data, this method strongly over-estimates the productivity of older players. We apply fixed effects to first-differenced data and show that productivity peaks in the early forties and smoothly declines thereafter. Because of this, players aged 60 are 11 percent less productive than players in their early forties.

Smoking, Income and Subjective Well-Being: Evidence from Smoking Bans

May 6, 2013 Comments off

Smoking, Income and Subjective Well-Being: Evidence from Smoking Bans

Source: Institute for the Study of Labor

This paper investigates the effects of local smoking bans on different out-comes using county and time variation over the last 20 years in the US. First, I find no evidence that local smoking bans in bars, restaurants and workplaces decrease the prevalence of smoking. The estimates are very small and not statistically significant. Well-being is also affected by these policies: public smoking bans make smokers who do not quit more satisfied with their life. I verify the robustness of this result throughout, and validate my findings with two distinct data sources. I discuss and test the mechanisms behind this seemingly paradoxical relationship. The evidence suggests that smokers adapt to this policy since the impact on satisfaction is negative just before the implementation and positive afterward. Last, I find evidence that smokers do not favor the implementation of smoking bans. Yet, once they are exposed to a public smoking ban, they are less-opposed to those policies. Together the evidence suggests that current smokers are time-inconsistent and benefit from smoking policies.

The Impact of Internet Diffusion on Marriage Rates: Evidence from the Broadband Market

May 3, 2013 Comments off

The Impact of Internet Diffusion on Marriage Rates: Evidence from the Broadband Market

Source: Institute for the Study of Labor

The Internet has the potential to reduce search frictions by allowing individuals to identify faster a larger set of available options that conform to their preferences. One market that stands to benefit from this process is that of marriage. This paper empirically examines the implications of Internet diffusion in the United States since the 1990s on one aspect of this market: marriage rates. Exploring sharp temporal and geographic variation in the pattern of consumer broadband adoption, I find that the latter has significantly contributed to increased marriages rates among 21-30 year olds. A number of tests suggest that this relationship is causal and that it varies across demographic groups potentially facing thinner marriage markets. I also provide some suggestive evidence that Internet has likely crowded out other traditional meeting venues, such as through family and friends.

Combat Exposure and Migraine Headache: Evidence from Exogenous Deployment Assignment

February 12, 2012 Comments off

Combat Exposure and Migraine Headache: Evidence from Exogenous Deployment Assignment

Source:  Institute for the Study of Labor

Migraine headache is a growing problem for U.S. servicemen deployed in the Global War on Terrorism and has been linked to substantial negative socioeconomic consequences. However, there has been no comprehensive examination of the relationship between combat exposure and migraine headache or its stress-related triggers. Using data drawn from the National Longitudinal Study of Adolescent Health, we exploit exogenous variation in deployment assignment to estimate the effect of combat exposure on migraine headache. We find that those deployed to a combat zone with enemy firefight are at substantially increased risk for migraine headache relative to those deployed to non-combat zones outside the United States or to combat zones without enemy firefight. This relationship is robust to controls for pre-deployment migraine status and is largest for those serving in the Army in the post-9/11 period. We find that combat-induced sleep disorders, stress-related psychological problems, and physical injuries in combat explain 47 to 60 percent of the relationship between combat exposure and migraine headache.

Full Paper (PDF)

Medical Marijuana Laws, Traffic Fatalities, and Alcohol Consumption

December 3, 2011 Comments off

Medical Marijuana Laws, Traffic Fatalities, and Alcohol Consumption
Source: Institute for the Study of Labor

To date, 16 states have passed medical marijuana laws, yet very little is known about their effects. Using state-level data, we examine the relationship between medical marijuana laws and a variety of outcomes. Legalization of medical marijuana is associated with increased use of marijuana among adults, but not among minors. In addition, legalization is associated with a nearly 9 percent decrease in traffic fatalities, most likely to due to its impact on alcohol consumption. Our estimates provide strong evidence that marijuana and alcohol are substitutes.
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+ Full Paper (PDF)

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