Luther Yap and Jessica Min, Princeton University

Sep 30, 12:00 pm1:00 pm
Louis A. Simpson International Building, Rm 271 and via Zoom
Event Description

Luther Yap and Jessica Min will be presenting in person. Viewers may also attend via Zoom

3rd year graduate students present for 30 minutes each.

"Valid t-ratio Inference for Overidentified Two Stage Least Squares," Luther Yap


"Financial Shocks, Labor Market Opportunities, and High School Attendance: Evidence from the Great Depression" Jessica Min


How do financial shocks impact human capital investment? Using the Great Depression as a laboratory in which family losses in savings and income often required children to drop out of school, I estimate how financially vulnerable parents transmitted this shock to their children. I leverage the independent responses of the twelve regional Federal Reserve Banks to compare individuals on different sides of a Fed border within the same state who likely faced similar local economic conditions but different degrees of credit contractions. I find children living in more hard-hit counties during the Depression in 1930 are on average 0.8 percentage points (2%) more likely to have graduated high school by 1940.