Essays on investment, growth and income distribution

In this dissertation, I examine both theoretically and empirically the relationship between stock prices and income distribution using an endogenous growth model with social status impatience.^ The theoretical part looks into how status impatience and current economic status jointly determine time preference, savings, future economic status, stock prices, growth and wealth distribution in the steady state. This work builds on Burgstaller and Karayalcin (1996).^ More specifically, I look at (i) the effects of the distribution of status impatience levels on the distribution of steady state assets, incomes and consumption and (ii) the effects of changes in relative levels of status impatience on stock prices. Therefore, from (i) and (ii), I derive the correlation between stock prices, incomes and asset distribution. Also, the analysis of the stack market is undertaken in the presence of adjustment costs to investments.^ The empirical chapter looks at (i) the correlation between income inequality and long run economic growth on the one hand and (ii) the correlation between stock market prices and income inequality on the other. The role of stock prices and social status is examined to better understand the forces that enable a country to grow overtime and to determine why output per capita varies across countries. The data are from Summers and Heston (1988), Barro and Wolf (1989), Alesina and Rodrik (1994), Global financial Database (1997) and the World Bank. Data for social status are collected through a primary sample survey on the internet. Twenty-five developed and developing countries are included in the sample.^ The model developed in this study was specified as a system of simultaneous equations, in which per capita growth rate and income inequality were endogenous variables. Additionally, stock price index and social status measures were also incorporated. The results indicate that income inequality is inversely related to economic growth. In addition, increase in income inequality arising from higher stock prices constrains growth. Moreover, where social status is determined by income levels, it influences long run growth. Therefore, these results support findings of Persson and Tabellini (1994) and Alesina and Rodrik (1994). ^

A comparative analysis of self-determined evaluations of work performance and support needs by adults with mental retardation in supported work and in sheltered workshop environments

The purpose of this study was to determine if there was a difference in the self-determined evaluations of work performance and support needs by adults with mental retardation in supported employment and in sheltered workshop environments. The instrument, Job Observation and Behavior Scale: Opportunity for Self-Determination (JOBS: OSD; Brady, Rosenberg, & Frain, 2006), was administered to 38 adults with mental retardation from sheltered workshops and 32 adults with mental retardation from supported employment environments. Cross-tabulations with Chi-square tests and independent samples t-tests were conducted to evaluate differences between the two groups, sheltered workshop and supported work. Two Multivariate Analyses of Variance (MANOVAs) were conducted to determine the effect of work environment on Quality of Performance (QP) and Types of Support (TS) test scores and their subscales. ^ This study found that there were significant differences between the groups on the QP Behavior and Job Duties subscales. The sheltered workshop group perceived themselves as performing significantly better on job duties than the supported work group. Conversely, the supported work group perceived themselves to have better behavior than the sheltered workshop group. However, there were no significant differences between groups in their perception of support needs for the three subscales. ^ The findings imply that work environment affects the self-determined evaluations of work performance by adults with mental retardation. Recommendations for further study include (a) detailing the characteristics of supported work and sheltered workshops that support and/or discourage self-determined behaviors, (b) exploring the behavior of adults with mental retardation in sheltered workshops and supported work environments, and (c) analysis of the support needs for and understanding of them by adults with mental retardation in sheltered workshops and in supported work environments. ^

Sex Work and Class

Prostitution scandals stigmatize workers for their entire lives, but the politician involved is marred for only one news cycle. “White knight” feminists shame women for sexually catering to the patriarchy but talk from a place of economic privilege. Religious organizations engage in misguided attempts to “save” women who use the industry as a job. Exploitive policies aimed at curtailing sex work hurt the individuals who wish to practice safe sex for their own protection. In the guise of aiding sex workers, or saving them from themselves, those that would advocate for more restrictive policies ignore the ramifications of what these laws would entail.

Three essays on the economics of defense contracting, output and income inequality

This dissertation analyzes both the economics of the defense contracting process and the impact of total dollar obligations on the economies of U.S. states. Using various econometric techniques, I will estimate relationships across individual contracts, state level output, and income inequality. I will achieve this primarily through the use of a dataset on individual contract obligations. ^ The first essay will catalog the distribution of contracts and isolate aspects of the process that contribute to contract dollar obligations. Accordingly, this study describes several characteristics about individual defense contracts, from 1966-2006: (i) the distribution of contract dollar obligations is extremely rightward skewed, (ii) contracts are unevenly distributed in a geographic sense across the United States, (iii) increased duration of a contract by 10 percent is associated with an increase in costs by 4 percent, (iv) competition does not seem to affect dollar obligations in a substantial way, (v) contract pre-payment financing increases the obligation of contracts from anywhere from 62 to 380 percent over non-financed contracts. ^ The second essay will turn to an aggregate focus, and look the impact of defense spending on state economic output. The analysis in chapter two attempts to estimate the state level fiscal multiplier, deploying Difference-in-Differences estimation as an attempt to filter out potential endogeneity bias. Interstate variation in procurement spending facilitates utilization of a natural experiment scenario, focusing on the spike in relative spending in 1982. The state level relative multiplier estimate here is 1.19, and captures the short run, impact effect of the 1982 spending spike. ^ Finally I will look at the relationship between defense contracting and income inequality. Military spending has typically been observed to have a negative relationship with income inequality. The third chapter examines the existence of this relationship, combining data on defense procurement with data on income inequality at the state level, in a longitudinal analysis across the United States. While the estimates do not suggest a significant relationship exists for the income share of the top ten percent of households, there is a significant positive relationship for the income share of top one percent households for an increase in defense procurement.^

Three Essays on the Economics of Defense Contracting, Output and Income Inequality

This dissertation analyzes both the economics of the defense contracting process and the impact of total dollar obligations on the economies of U.S. states. Using various econometric techniques, I will estimate relationships across individual contracts, state level output, and income inequality. I will achieve this primarily through the use of a dataset on individual contract obligations. The first essay will catalog the distribution of contracts and isolate aspects of the process that contribute to contract dollar obligations. Accordingly, this study describes several characteristics about individual defense contracts, from 1966-2006: (i) the distribution of contract dollar obligations is extremely rightward skewed, (ii) contracts are unevenly distributed in a geographic sense across the United States, (iii) increased duration of a contract by 10 percent is associated with an increase in costs by 4 percent, (iv) competition does not seem to affect dollar obligations in a substantial way, (v) contract pre-payment financing increases the obligation of contracts from anywhere from 62 to 380 percent over non-financed contracts. The second essay will turn to an aggregate focus, and look the impact of defense spending on state economic output. The analysis in chapter two attempts to estimate the state level fiscal multiplier, deploying Difference-in-Differences estimation as an attempt to filter out potential endogeneity bias. Interstate variation in procurement spending facilitates utilization of a natural experiment scenario, focusing on the spike in relative spending in 1982. The state level relative multiplier estimate here is 1.19, and captures the short run, impact effect of the 1982 spending spike. Finally I will look at the relationship between defense contracting and income inequality. Military spending has typically been observed to have a negative relationship with income inequality. The third chapter examines the existence of this relationship, combining data on defense procurement with data on income inequality at the state level, in a longitudinal analysis across the United States. While the estimates do not suggest a significant relationship exists for the income share of the top ten percent of households, there is a significant positive relationship for the income share of top one percent households for an increase in defense procurement.

Regional growth, structural change, and natural disaster

Hurricanes, earthquakes, floods, and other serious natural hazards have been attributed with causing changes in regional economic growth, income, employment, and wealth. Natural disasters are said to cause; (1) an acceleration of existing economic trends; (2) an expansion of employment and income, due to recovery operations (the so-called silver lining); and (3) an alteration in the structure of regional economic activity due to changes in "intra" and "inter" regional trading patterns, and technological change.^ Theoretical and stylized disaster simulations (Cochrane 1975; Haas, Cochrane, and Kates 1977; Petak et al. 1982; Ellson et al. 1983, 1984; Boisvert 1992; Brookshire and McKee 1992) point towards a wide scope of possible negative and long lasting impacts upon economic activity and structure. This work examines the consequences of Hurricane Andrew on Dade County's economy. Following the work of Ellson et al. (1984), Guimaraes et al. (1993), and West and Lenze (1993; 1994), a regional econometric forecasting model (DCEFM) using a framework of "with" and "without" the hurricane is constructed and utilized to assess Hurricane Andrew's impact on the structure and level of economic activity in Dade County, Florida.^ The results of the simulation exercises show that the direct economic impact associated with Hurricane Andrew on Dade County is of short duration, and of isolated sectoral impact, with impact generally limited to construction, TCP (transportation, communications, and public utilities), and agricultural sectors. Regional growth, and changes in income and employment reacted directly to, and within the range and direction set by national economic activity. The simulations also lead to the conclusion that areal extent, infrastructure, and sector specific damages or impacts, as opposed to monetary losses, are the primary determinants of a disaster's effects upon employment, income, growth, and economic structure. ^

Financial aid and the persistence of associate of arts graduates transferring to a senior university

This study examined the effects of financial aid on the persistence of associate of arts graduates transferring to a senior university in one of four consecutive fall semesters (1998-2001). Situated in an international metropolitan area in the southeastern United States, the institution where the study was conducted is a large public research university identified as a Hispanic Serving Institution. Archival databases served as the source of information on the academic and social background of the 4,669 participants in the study. Data from institutional financial aid records were pooled with the data in the student administrative system.^ For purposes of this study, persistence was defined as ongoing progress until completing the baccalaureate degree. Student social background variables used in the study were gender, ethnicity, age, and income, with GPA and part-time or full-time enrollment status being the academic variables. Amount and type of aid, including grants, loans, scholarships, and work study were incorporated in the models to determine the effect of financial aid on the persistence of these transfer students. Because the dependent variable persistence had three possible outcomes (graduated, still enrolled, dropped out) multinomial logistic regression was the appropriate technique for analyzing the data; four multinomial models were employed in the analysis.^ Findings suggest that grants awarded based on the financial need of students and loans were effective in encouraging the persistence of students, but scholarships and work study were not effective.^

Adult Learners and the Work of Amnesty International

This study explores how various adults perceive their work and learning in a chapter of a human rights-based non-governmental organization using the Characteristics of Adults as Learners (Cross, 1981) model of adult learning.

Education policy and national income distribution: New evidence from recent cross -country data

In the mid 19th century, Horace Mann insisted that a broad provision of public schooling should take precedence over the liberal education of an elite group. In that regard, his generation constructed a state sponsored common schooling enterprise to educate the masses. More than 100 years later, the institution of public schooling fails to maintain an image fully representative of the ideals of equity and inclusion. Critical theory in educational thought associates the dominant practice of functional schooling with maintenance of the status quo, an unequal distribution of financial, political, and social resources. This study examined the empirical basis for the association of public schooling with the status quo using the most recent and comparable cross-country income inequality data. Multiple regression analysis evaluated the possible relationship between national income inequality change over the period 1985-2005 and variables representative of national measures of education supply in the prior decade. The estimated model of income inequality development attempted to quantify the relationship between education supply factors and subsequent income inequality developments by controlling for economic, demographic, and exogenous factors. The sample included all nations with comparable income inequality data over the measurement period, N = 56. Does public school supply affect national income distribution? The estimated model suggested that an increase in the average years of schooling among the population age 15 years or older, measured over the period 1975-1985, provided a mechanism that resulted in a more equal distribution of income over the period 1985-2005 among low and lower-middle income nations. The model also suggested that income inequality increased less or decreased more in smaller economies and when the percentage of the population age < 15 years grew more slowly over the period 1985-2000. In contrast, this study identified no significant relationship between school supply changes measured over prior periods and income inequality development over the period 1985-2005 among upper-middle and high income nations.

Exploring calling work orientation: Construct clarity and organizational implications

Employees maintain a personal view toward their work, which can be referred to as their work orientation. Some employees view their work as their life's purpose (i.e., calling work orientation) and they tend to be 1) prosocially motivated, 2) derive meaning from work, and 3) feel that their purpose is from beyond the self. The purpose of the current dissertation was to differentiate calling work orientation from other similar workplace constructs, to investigate the most common covariates of calling work orientation, and to empirically test two possible moderators of the relationship between calling work orientation and work-related outcomes of job satisfaction, job performance, and work engagement. Two independent samples were collected for the purpose of testing hypotheses: data were collected from 520 working students and from 520 non-student employees. Participants from the student sample were recruited at Florida International University, and participants from the employee sample were recruited via the Amazon Mechanical Turk website. Participants from the student sample answered demographic questions and responded to self-report measures of job satisfaction, job performance, work engagement, spirituality, meaningful work, prosocial motivation, and work orientation. The procedure was similar for the employee sample, but their survey also included measures of counterproductive work behaviors, organizational citizenship behaviors, conscientiousness, and numerical ability. Additionally, employees were asked whether they would be willing to have a direct supervisor, peer, co-worker, client, or subordinate rate their job performance. Hierarchical regression findings suggest calling work orientation was predictive of overall job performance above and beyond two common predictors of performance, conscientiousness and numerical ability. The results for the covariate analyses provided evidence that prosocial motivation, meaningful work, and spirituality do play a significant role in the development of an employees' work orientation. Perceived career opportunities moderated the relationship between calling work orientation and job performance for the employee sample. Core self-evaluations moderated the relationship between calling work orientation and job performance, and core self-evaluations moderated the relationship between calling work orientation and work engagement. Collectively, findings from the current study highlight the benefits of examining work orientation in the prediction of workplace outcomes.

An Examination of Race, Socioeconomic Status, and Individualism-Collectivsm as Moderators of the Work/Family Antecedent and Work-Family Conflict Relationship

This study examines the role of race, socioeconomic status, and individualism-collectivism as moderators of the relationship between selected work and family antecedents and work-family conflict and evaluates the contribution of energy-based conflict to the work-family conflict (WFC) research. The study uses data obtained from a survey questionnaire given to 414 participants recruited from an online labor market. Study hypotheses were tested through structural equation modeling. The results indicate that while moderating effects were slight, a proposed model where energy-based conflict is included outperforms traditional time/strain/behavior-based models and that established variables may drop to non-significance when additional variables are included in prediction. In addition, novel individual difference variables such as individualism and collectivism were demonstrated to have effects beyond moderating antecedent-outcome relationships in the model. The findings imply that WFC models would benefit from the inclusion of variables found in the current study.

Exploring Calling Work Orientation: Construct Clarity and Organizational Implications

Employees maintain a personal view toward their work, which can be referred to as their work orientation. Some employees view their work as their life’s purpose (i.e., calling work orientation) and they tend to be 1) prosocially motivated, 2) derive meaning from work, and 3) feel that their purpose is from beyond the self. The purpose of the current dissertation was to differentiate calling work orientation from other similar workplace constructs, to investigate the most common covariates of calling work orientation, and to empirically test two possible moderators of the relationship between calling work orientation and work-related outcomes of job satisfaction, job performance, and work engagement. Two independent samples were collected for the purpose of testing hypotheses: data were collected from 520 working students and from 520 non-student employees. Participants from the student sample were recruited at Florida International University, and participants from the employee sample were recruited via the Amazon Mechanical Turk website. Participants from the student sample answered demographic questions and responded to self-report measures of job satisfaction, job performance, work engagement, spirituality, meaningful work, prosocial motivation, and work orientation. The procedure was similar for the employee sample, but their survey also included measures of counterproductive work behaviors, organizational citizenship behaviors, conscientiousness, and numerical ability. Additionally, employees were asked whether they would be willing to have a direct supervisor, peer, co-worker, client, or subordinate rate their job performance. Hierarchical regression findings suggest calling work orientation was predictive of overall job performance above and beyond two common predictors of performance, conscientiousness and numerical ability. The results for the covariate analyses provided evidence that prosocial motivation, meaningful work, and spirituality do play a significant role in the development of an employees’ work orientation. Perceived career opportunities moderated the relationship between calling work orientation and job performance for the employee sample. Core self-evaluations moderated the relationship between calling work orientation and job performance, and core self-evaluations moderated the relationship between calling work orientation and work engagement. Collectively, findings from the current study highlight the benefits of examining work orientation in the prediction of workplace outcomes.