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Two Essays on Spatial Econometrics and An Essay on Pre-Employment Credit Checks

Yu, Xin
http://rave.ohiolink.edu/etdc/view?acc_num=osu1406148326

Abstract Details

2014, Doctor of Philosophy, Ohio State University, Economics.
This dissertation consists of three chapters. Chapter 1 and Chapter 2 discuss two topics in spatial econometrics. Chapter 3 discusses one topic on pre-employment credit checks in job markets. Spatial econometric models are widely used in regional science to account for spatial autocorrelation or network effects. Compared to the traditional spatial autoregressive (SAR) model, the Matrix Exponential Spatial Specification (MESS) is a new alternative way of modeling spatially dependent data. In Chapter 1, I extend the MESS model to a spatial panel data model with fixed effects and MESS disturbances. Two approaches, direct approach and transformation approach, are used to estimate model parameters and fixed effects. While the direct approach does not yield a consistent estimator of the variance parameter if T is fixed, the transformation approach provides consistent estimators for all parameters. I also establish asymptotic properties of the quasi-maximum likelihood estimators used in both approaches. Finally, I conduct Monte Carlo experiments to evaluate the performance of both approaches. Duration data measure how long individuals remain in a certain state, for example, the unemployment durations of job seekers. Duration data appear in a diversity of situations in economics and regional science. However, current econometric literature lacks a spatial model for duration dependent variables. Chapter 2 develops a spatial econometric model ("SAR-Lancaster Model") for duration dependent variables. This model can be applied widely in regional science and social network studies. Numerical estimation of SAR-Lancaster Model and corresponding Monte-Carlo experiments are discussed. An LM statistic is derived to test spatial correlation in SAR-Lancaster model. Legislation on restricting pre-employment credit checks attracts broad public interest, especially after the 2008 financial crisis when millions of workers in U.S. lost their jobs. In Chapter 3, I show links between credit score and probability of employment. Among current economic studies on employment credit checks, this research is the first one to use a nationally representative sample and deal with the endogeneity problem between credit score and employability. The sample of this study comes from Consumer Finance Monthly (CFM) survey, which contains valuable information on respondents' employment status and income. CFM survey also allows us to construct an approximation to respondents' credit scores. Using approximated credit scores, an economic model of employment with endogenous credit score is proposed to quantitatively analyze the relationship between credit score and employability. All model specifications suggest that bad credit score makes people less employable, which may result from pre-employment credit checks. Holding other variables constant, a 10-point increase in approximated credit score is associated with a 1.35% increase in probability of employment. Moreover, even after many factors, including credit scores, are controlled, Blacks and women still have lower probabilities of employment. This study provides evidence to support Senator Warren's Equal Employment for All Act of 2013.
Lucia Dunn (Advisor)
97 p.
Economics

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Citations

  • Yu, X. (2014). Two Essays on Spatial Econometrics and An Essay on Pre-Employment Credit Checks [Doctoral dissertation, Ohio State University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=osu1406148326

    APA Style (7th edition)

  • Yu, Xin. Two Essays on Spatial Econometrics and An Essay on Pre-Employment Credit Checks. 2014. Ohio State University, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=osu1406148326.

    MLA Style (8th edition)

  • Yu, Xin. "Two Essays on Spatial Econometrics and An Essay on Pre-Employment Credit Checks." Doctoral dissertation, Ohio State University, 2014. http://rave.ohiolink.edu/etdc/view?acc_num=osu1406148326

    Chicago Manual of Style (17th edition)

osu1406148326
466
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This open access ETD is published by The Ohio State University and OhioLINK.