Prelim 2 Flashcards
Explain how time is a network good
Time is a network good because its value increases when there are others to spend it with. Value of free time increases when others are around. Unemployment time is mostly solitary, so it is of little value.
Compare and contrast the labor-leisure model of unemployment with the social-psychological perspective. How does it speak to policy debate over unemployment insurance?
Trade off individual makes between working and leisure; believes that benefits for unemployment is harmful verses taking into account the social and emotional toll unemployment has on an individual; believes there should be a larger safety net for those unemployed
Cass concludes that both models should be taken into account
What is the policy debate around unemployment insurance? Briefly explain the two sides of the debate.
The policy debate around unemployment insurance is that one side belies the insurance acts as a disincentive to work. They believe unemployment insurance is basically paying workers not to work, and these unemployed people will never want to get into the workforce again with the financial support.
The other side argues that unemployment insurance compensates for the events that the unemployed are going through
- Americas work ethic is so strong
- people work not just for money but for identity
- we can support people during hardship without spoiling work ethic
According to Cass, what is a secure job? How are secure jobs related to the current state of higher education in the U.S.? What are some of the alternatives that Cass proposes to improve this situation?
40k annual earnings
Somewhat predictable future income, health benefits and time off
Satisfactory control over scheduling
You don’t necessarily need a 4 year degree for a secure job
Producing a lot more college grads than jobs that require college degrees
Why does Cass think that money inequality is not what we should focus on?
- Its a short term solution
- Does not take into account other perspectives
- Citizens feel only one group of people are being helped when focus is on specifically poor people
- Social and economic conditions is amore important
- Labor markets should allow all Americans to be contributors and support strong families
According to Chetty et al. (2016). What are three of the highest correlates of life expectancy among metropolitan statistical areas (Commuting Zones) in the U.S. List and explain them.
a. % Immigrants (Hispanic): Higher percent of immigrants leads to higher life expectancy, this is due to the fact they haven’t adapted into American risky behaviors.
b. Median home value: Means that you have more money in general, can live in better neighborhoods, afford more things, etc
c. Current smoker status
How does life expectancy vary by income and gender? Speak also about the varying time trends in life expectancy by income. Draw a graph for each of these relationships.
Gender: Women live longer than men (men take more risks)
Income: people who earn more live longer
Only the top 5% of people experienced an increase in life expectancy, bottom 5% experienced no gains
Graph: two postive linear lines with women line above men
Describe the problems we discussed about the US healthcare system and how the ACA tried to address them. According to Obama (2016), discuss some challenges that need to be addressed next?
- High cost of healthcare- did not cover long term illnesses
Solution: prohibition of annual limits - Pre existing conditions - new insurances did not cover preexisting illnesses
Solution: new minimum standards
Obama
1. Lack of insured people in America - need public healthcare option
2. Prescription drug costs - medicare negotiations with pharma companies selling medications
What is the asymmetric visibility of healthcare quality? How does it impact our assessment of healthcare quality in the U.S.? How can it lead to a halo effect?
Refers to a situation where patients and healthcare consumers have limited or unequal access to information about the quality of healthcare services
Markets tend to deliver what consumers can observe and reward but it may not be the same as what patients need from their hospital
Impacts our assessment of healthcare quality because hospitals are focusing more on what patients can see and what will improve patient satisfaction
-less attention paid toward medical quality
-lead to the halo effect because patients are judging the hospitals based off of what they can see/ the front stage drives belief about back
Draw one of the graphs from Young and Chen (2021) that shows the main determinants of patient satisfaction and the size of their effects. What incentives does this create for hospitals in the U.S.?
Hospital mortality is like a straight line of a graph.
-This means that patient mortality rates has very little impact on patient satisfaction
-patient satisfaction is what gets people to go to their hospital. This causes hospitals in the US not to work towards preventing deaths because it is not worth it, they don’t get more patients coming
What are the consequences of more geographic competition between hospitals in the U.S? How do we know?
- increases overall patient satisfaction but decreases patient outcomes
-Patient outcomes in hospitals weren’t taking steps to improve due to the fact that it did not increase patient satisfaction
There’s a graph in one paper that shows hospitals in Boston that were in
Explain the difference between concerted cultivation and accomplishment of natural growth child rearing styles. What are some implications of this for inequality?
Concerted Cultivation: parents who are very active in child rearing.
- Enrolling children in age appropriate activities, programs, etc.
- Speaking up on behalf of their child’s education
- Engaging in debate with their child or various issues.
Implications on Inequality: Often middle to upper-class
-their children learn to be more outspoken, demanding of the world, and are usually more proactive in their own lives when they become adults. Leads to being better leaders.
Accomplishment of Natural Growth: parents who practice more of a hands off and natural style of child rearing
- Do not structure child’s leisure activities
- Let schools and teachers take on the responsibility of child’s education
- Less debate with children over things they are told to do.
Implications on Inequality: Usually lower class
-children learn to trust and respect people in positions of authority, and are often more obedient
Summarize Haskins’ policy recommendations. Choose two and evaluate their pros and cons in detail.
Contraception to avoid pregnancy
IUD: long-acting reversible birth control
Planned Parenthood: “Getting an IUD costs anywhere between $0 - $1300”
Obamacare requires insurance to cover birth control
EXCEPT: Burwell v. Hobby Lobby stores, Inc. (2014)
Exemption for religious employers who have religious objections to contraception use
Hobby Lobby is a for-profit corporation that does not want its workers to use contraception
Should the government promote marriage?
The Bush marriage initiative
Marriage education and services for young, unmarried couples who have babies together
Community-wide programs to emphasize the advantages of marriage
Helping young men
End incarceration for nonviolent offenders
A surprising portion of prison inmates are fathers
Prison should be more of a last resort
Earned income tax credit for young men do not have custody of their children
Earnings supplement helps to make work pay and encourages labor force attachment
Job services for fathers who owe child support. Many states have very punitive systems for going after deadbeat dads
Child support order is required when a parent applies for income assistance (TANF)
State enforces child support with wage garnishments, suspension of drivers license, six months jail in NY
Helping single mothers
Childcare and pre-K schooling are important
Given current nonmarital birth rates and trends, millions of children will live in families headed by single mothers in the next decades
We should do what we can to protect many of these children from the vicissitudes of poverty
Advocates to expand programs such as EITC and Child Tax Credit, SNAP benefits, and Medicaid coverage for her children
Promoting birth control
Pro: Helps women avoid unwanted pregnancies, reducing rates of single mothers
Con: Birth control methods like an IUD can be expensive, from $0 - $1300
Expanding EITC, child tax credits, and SNAP benefits
Pro: Improve chance of child being more educated + successful when they get older
Con: Provides incentives for single mothers to not get married, as they will lose benefits
One recommendation is promoting birth control. This would help women avoid unwanted pregnancies, reducing rates of single mothers (broken families). However, the con is that Obamacare requires insurance to cover birth control and that birth control methods like an IUD can cost between $0 - $1300. Another recommendation is expanding EITC, child tax credits, and SNAP benefits to single mothers to help them if they are living in poverty. This would enhance the chance of the child being more educated and successful when they get older. However, the con is that these programs provide an incentive for single mothers to not get married as they will lose their benefits.
Explain marriage trends by income among men and women in the U.S. What are some of their plausible causes?
-Decline in marriage resulting from low income people
-Higher income women are more likely to get married
-Fewer marriageable men - lower salaries, less prestigious jobs
-Decline in marriage comes to the income distribution for men, the higher income is for the men the higher chance they have of getting married
-generally the decline in marriage has been increasing in low income people
-Compared to lower income women, higher income women are more likely to get married which is also why we see a trend in births outside of marriage being more common in lower income women.
-Less marriageable men: Lots of lower income men don’t have enough income/worth for low. They don’t have good role models in childhood
According to Cooper, why are rich people interested in inequality, and what do they focus on?
-The mentality of “we don’t have enough, we’re not safe yet”
-They are always thinking about the future, and talk about inequality a lot because they are thinking about their children
-They are scared that their children or them will suddenly fall into poverty
-“barbell economy”, They could end up falling into poverty if they don’t keep making enough.
The economy is considered to be a “barbell economy”, with only two sides; low income and high income individuals, with the middle class shrinking away. As such, they ensure that their children don’t fall into that, often through planning for their future.
