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effects_of_family_structure_on_income [2015/11/12 12:20]
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effects_of_family_structure_on_income [2017/05/23 10:39] (current)
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 =====1. Influence of Family Structure===== =====1. Influence of Family Structure=====
  
-According to research by Dr. Henry Potrykus and Dr. Patrick Fagan of the Marriage and Religion Research Institute, the fraction of intact families and the fraction of high school graduates have similar positive and precisely determined((Precision has no formal meaning. It indicates how clearly determinable (distinguishable from zero) an influence on an outcome is. Precision is comparable to standard deviation. Low/ no precision indicates a high standard of deviation in which data points spread over a large range of value, signifying that the influence of one variable over another is relatively uncertain. High precision indicates a low standard of deviation in which data points hover around the mean, signifying that the influence of one variable over another is relatively certain. For further elaboration see [[http://​marri.frc.org/get.cfm?​i=RS11E03|“Marriage and Economic Well-Being: The Economy of the Family Rises or Falls with Marriage”]]))((Henry Potrykus and Patrick Fagan, “U.S. Social Policy Dependence on the Family, Derived from the Index of Belonging,​” (2013). Available at [[http://​marri.us/​policy-2013]].)) influences on the employment rate among 25- to 54-year-old males.((This is interesting given the emphasis by some on education when the health of the American workforce is discussed. Family, heretofore ignored in this discussion, must be given equal footing. If we are concerned with the American workforce, the family must be discussed side-by-side with education. See, again, Heckman and Masterov, Cunha and Heckman, “Formulating,​ Identifying and Estimating the Technology of Cognitive and Noncognitive Skill Formation,"​ and Armor.))+According to research by Dr. Henry Potrykus and Dr. Patrick Fagan of the Marriage and Religion Research Institute, the fraction of intact families and the fraction of high school graduates have similar positive and precisely determined((Precision has no formal meaning. It indicates how clearly determinable (distinguishable from zero) an influence on an outcome is. Precision is comparable to standard deviation. Low/ no precision indicates a high standard of deviation in which data points spread over a large range of value, signifying that the influence of one variable over another is relatively uncertain. High precision indicates a low standard of deviation in which data points hover around the mean, signifying that the influence of one variable over another is relatively certain. For further elaboration see [[http://​marri.us/​research/​research-papers/​marriage-and-economic-well-being-the-economy-of-the-family-rises-or-falls-with-marriage/​|“Marriage and Economic Well-Being: The Economy of the Family Rises or Falls with Marriage”]]))((Henry Potrykus and Patrick Fagan, “U.S. Social Policy Dependence on the Family, Derived from the Index of Belonging,​” (2013). Available at [[http://​marri.us/​policy-2013]].)) influences on the employment rate among 25- to 54-year-old males.((This is interesting given the emphasis by some on education when the health of the American workforce is discussed. Family, heretofore ignored in this discussion, must be given equal footing. If we are concerned with the American workforce, the family must be discussed side-by-side with education. See, again, Heckman and Masterov, Cunha and Heckman, “Formulating,​ Identifying and Estimating the Technology of Cognitive and Noncognitive Skill Formation,"​ and Armor.))
  
 The fraction of college graduates in a geographic area has a smaller but still positive, precisely determined influence on employment when controlling only for demographics and education, but the influence is indeterminate under controls for earnings. Presumably, once the human capital and credentialing effects of higher education are absorbed and accounted for by earned income itself, college has little otherwise specifiable effect on employment propensity. As mentioned above, this is not the case with high school: High school drop-outs behave very differently with respect to employment than those with high school diplomas. The fraction of college graduates in a geographic area has a smaller but still positive, precisely determined influence on employment when controlling only for demographics and education, but the influence is indeterminate under controls for earnings. Presumably, once the human capital and credentialing effects of higher education are absorbed and accounted for by earned income itself, college has little otherwise specifiable effect on employment propensity. As mentioned above, this is not the case with high school: High school drop-outs behave very differently with respect to employment than those with high school diplomas.
  
-Income level itself has a less precisely determined but otherwise positive relation to employment. The fraction of Hispanics in a geographic area has a modest, positive, and precisely determined influence on the employment rate among 25- to 54-year-old males under all controls. Hispanics in a geographic area tend to work more, or they seek those areas with work more readily than others do, or both. Blacks have no precisely determinable influence on employment rates in an area once other controls((See Table 2 in Henry Potrykus and Patrick Fagan, “U.S. Social Policy Dependence on the Family,” (January 2013) available at [[http://downloads.frc.org/EF/EF13B33.pdf]] for a list of the controls and other methodological considerations.)) have been implemented.+Income level itself has a less precisely determined but otherwise positive relation to employment. The fraction of Hispanics in a geographic area has a modest, positive, and precisely determined influence on the employment rate among 25- to 54-year-old males under all controls. Hispanics in a geographic area tend to work more, or they seek those areas with work more readily than others do, or both. Blacks have no precisely determinable influence on employment rates in an area once other controls((See Table 2 in Henry Potrykus and Patrick Fagan, “U.S. Social Policy Dependence on the Family,” (January 2013) available at [[http://marri.us/research/​research-papers/​u-s-social-policy-dependence-on-the-family/]] for a list of the controls and other methodological considerations.)) have been implemented.
  
 The minor dependency ratio (more children present) has a large, positive, precisely determinable influence on men working. Presumably these men are working to support those additional children. The minor dependency ratio in a geographic area also has the largest consistently positive influence on average earnings for males aged 25 to 54.((The fraction of intact families in a geographic area has the largest consistently positive influence on average earnings under a model without the dependency ratio controls. Hence, we assert that this is a "​family effect"​ most properly attributable to care for dependents. Endogeneity is partially broken by our multi-model specification.)) The influence of minor dependency is large, positive, and precisely determinable under controls for demographics,​ education, and earnings levels (of the whole adult population). The minor dependency ratio (more children present) has a large, positive, precisely determinable influence on men working. Presumably these men are working to support those additional children. The minor dependency ratio in a geographic area also has the largest consistently positive influence on average earnings for males aged 25 to 54.((The fraction of intact families in a geographic area has the largest consistently positive influence on average earnings under a model without the dependency ratio controls. Hence, we assert that this is a "​family effect"​ most properly attributable to care for dependents. Endogeneity is partially broken by our multi-model specification.)) The influence of minor dependency is large, positive, and precisely determinable under controls for demographics,​ education, and earnings levels (of the whole adult population).