|Education and Innovation|
in The Role of Innovation and Entrepreneurship in Economic Growth, Aaron Chatterji, Josh Lerner, Scott Stern, and Michael J. Andrews, editors
Recent work has unveiled a large role for education (and various types of education policies, from expanding access to improving inputs) on long-run student outcomes. Less is known, however, about the role of education in encouraging entrepreneurship and innovation.In this chapter, we review the existing literature and combine estimates on the effects of improving access and the quality of education, as well as the role of different inputs and skills for accessing innovation and entrepreneurship, to provide a first answer to this question. We also outline possible avenues for future research. We structure the chapter as follows. First, we provide a brief review of the theoretical work linking education to innovation. We then explore the possible effects of three sets of policies: 1) expan...
|School Finance Equalization Increases Intergenerational Mobility: Evidence from a Simulated-Instruments Approach|
This paper estimates the causal effect of equalizing revenues across public school districts on students’ intergenerational mobility. I exploit differences in exposure to equalization across seven cohorts of students in 20 US states, generated by 13 state-level school finance reforms passed between 1980 and 2004. Since these reforms create incentives for households to sort across districts and this sorting affects property values, post-reform revenues are endogenous to an extent that varies across states. I address this issue with a simulated instruments approach, which uses newly collected data on states’ funding formulas to simulate revenues in the absence of sorting. I find that equalization has a large effect on mobility of low-income students, with no significant changes for high-inco...
|The Labor Market for Teachers Under Different Pay Schemes|
Compensation of most US public school teachers is rigid and solely based on seniority. This paper studies the labor market effects of a reform that gave school districts in Wisconsin full autonomy to redesign teacher pay schemes. Following the reform, some districts switched to flexible compensation and started paying high-quality teachers more. Teacher quality increased in these districts relative to those with seniority pay due to a change in workforce composition and an increase in effort. I estimate a structural model of this labor market to investigate the effects of counterfactual pay schemes on the composition of the teaching workforce.
|Effects of Copyrights on Science - Evidence from the US Book Republication Program|
with : w24255
Copyrights for books, news, and other types of media are a critical mechanism to encourage creativity and innovation. Yet economic analyses continue to be rare, partly due to a lack of experimental variation in modern copyright laws. This paper exploits a change in copyright laws as a result of World War II to examine the effects of copyrights on science. In 1943, the US Book Republication Program (BRP) granted US publishers temporary licenses to republish the exact content of German-owned science books. Using new data on citations, we find that this program triggered a large increase in citations to German-owned science books. This increase was driven by a significant reduction in access costs: Each 10 percent decline in the price of BRP book was associated with a 43 percent increase in c...