Essays in labor and health economics

This dissertation consists of three essays in empirical labor and health economics. The first chapter examines how the amount of time devoted to a leisure activity varies in response to temporary changes in the price of that activity. Specifically, I estimate the effect of changes in expected winnings in an online poker game on the probability that players quit playing. I find that expected winnings have a large negative effect on the probability that a player quits playing poker. A one dollar increase in expected winnings decreases the probability that a player quits playing altogether by 0.5 percentage points, compared to the mean of 1.1 percentage points. This corresponds to a price elasticity of demand for poker of -0.14. The second chapter develops and tests a model of how college students choose their field of study. The model combines features from learning and human capital models and captures several stylized facts from the empirical literature on choice of college major. I test the model's predictions using High School and Beyond data. I find three results that generally agree with the model's predictions. First, students with higher levels of ability choose majors with higher average earnings. Second, students who receive low grades in college are more likely to change their field of study. Third, students who switch majors in college subsequently earn less than students who do not change majors, but this difference is primarily due to major-switchers obtaining degrees in low-paying fields. The third chapter, coauthored with Abhijit Banerjee, Esther Duflo and Gilles Postel-Vinay, provides estimates of the long-term effects on height and health of a large income shock experienced in early childhood.

Department dc:contributor.department

Massachusetts Institute of Technology. Dept. of Economics.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2007

Author dc:creator

• Watts, Timothy M

Advisor dc:contributor.advisor

• David Autor and Joshua Angrist.

• Economics.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/41710

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/41710