Research

Abstract

This study explores how the rise in service jobs impacts educational outcomes in Italy. We identify exogenous variation in the demand for service jobs using shocks to the tourism industry caused by terrorist attacks abroad. We find that higher exposure to tourism shocks decreases college enrollment and completion rates. The decline in enrollment is primarily caused by fewer students choosing humanities and social sciences. Both men and women affected by the shock respond by reducing enrollment and completion. While men tend to respond temporarily to take advantage of the higher labor demand, women, who are more prevalent in the tourism sector, experience a permanent impact. Furthermore, we investigate the mechanism by analyzing the effect of increased tourist inflows on labor market outcomes. We find a positive effect on employment in the tourism sector and on total employment. This result follows from a decline in non-participation rather than unemployment.

Keywords: tourism, human capital, college enrollment, major choice.

JEL Codes: I25, J24, L83, Z32.

Updated: March, 2024, First: March, 2023

[Link to paper]

Abstract

The rapid advances in automation technologies are disrupting labor markets at an unprecedented speed, contributing to the secular decline in US labor force participation, and raising questions about where workers end up. This paper investigates the margins of adjustment of workers after being displaced by the introduction of industrial robots. Exploiting exogenous variation in the adoption of robots across local labor markets over time, I show that almost 8 percent of non-participants respond by enrolling in college, 10.5 percent claim disability benefits, and 40 percent retire early. The remaining non-participants rely on the income of their household members or live off their savings. These margins differ with the socio-demographic characteristics of the individuals. My results also show that the rising disability take-up has been fueled by a deterioration in non-participants’ health, including self-reported health problems and hospitalizations related to severe mental disorders and substance abuse.

Keywords: industrial robots, labor force participation, margins of adjustment, health.

JEL Codes: I12, I26, J21, J26.

Updated: December, 2022, First: July, 2020

[Link to paper]

Abstract

Bankruptcy provides American households with an implicit financial insurance by allowing for debt clearance. We use the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), which has reduced the effectiveness of this protection, to study how this reform has impacted individuals’ decisions regarding health insurance coverage, healthcare usage, and medical expenditures. The findings indicate that households hindered from filing for bankruptcy under the new law increased their average health insurance coverage, particularly among white families not at risk of asset seizure. This increase in insurance coverage led to higher healthcare utilization and lower out-of-pocket expenses, consistent with previous studies.

Keywords: Insurance coverage, bankruptcy, health care expenditure.

JEL Codes: D14, H51, I13, K35.

Updated: June, 2024, First: June, 2024

[Link to paper]