I estimate the intergenerational effect of education on children’s criminal behavior using data from PSID. With the historical changes of compulsory schooling laws applied to the parent’s generation, which affects children’s crime only through parental education, I tried to examine whether education has a causal intergenerational effect in crime reduction. From my empirical analysis, I find that an additional year of mother education decreases the probability of being arrested by 9.9% points, and the probability of being on probation by 8.3% points of their children. This result suggests that the social return of education in terms of crime reduction is substantially underestimated without taking into account this long-term effect.

This study empirically tests the effect of competition on differentiation by using data on Korean domestic airline’s departure schedule during the period of 2010--016, when low cost carriers(LCC) entered and it raised the competition of the market. This study finds that more fiercely competing route is less differentiated on their departure schedule than that of highly concentrated route, which supports the prediction of Hotelling model. In other words, the incentive to cluster dominates the incentive to differentiate, as market competition increases. This is more obvious when I separately estimate the effect of competition of LCC, implying price competition is more important for LCC that differentiation.