23 August 2013
The Russell 1000 is a value-weighted stock index comprising the 1000 largest firms by market capitalization; the Russell 2000 is a similar index that includes firms 1001 to 3000. Small changes in the market capitalizations of firms that are ranked near 1000 can move them from one index to the other. Because the indexes are capitalization-weighted, there is relatively little index buying when a firm enters the Russell 1000 as one of the smallest firms, but there is non-trivial buying when a firm joins the Russell 2000 as one of the index' largest capitalization firms. Yen-cheng Chang
, Harrison Hong
, and Inessa Liskovich
find that when a company moves from the Russell 1000 to the Russell 2000 its share price rises, and that the reverse move triggers a stock price decline.
22 August 2013
, Kathryn Shaw
, and Christopher Stanton
investigate how worker productivity varies over the business cycle. They analyze data on the time it takes workers to complete a given task at a large, national firm. They find that task time declined by about five percent during the 2007-9 recession, and that the decline was most pronounced at establishments located in high-unemployment-rate areas.
21 August 2013
and Bridget Terry Long
compare the college outcomes of individuals whose economic circumstances led them to just miss qualifying for the Florida Student Access Grant, a need-based aid program, and those who just qualified. Although these individuals had relatively similar economic circumstances, receiving a grant raised the likelihood of receiving a bachelor's degree within six years of high school graduation by 4.6 percentage points, a 22 percent increase relative to the no-aid baseline level.
20 August 2013
and Marie-Claire Villeval
construct an experiment in which both men and women can choose between a compensation scheme that is based only on their own output, or one that pays them based on the output of a team of which they are a member. They find that women choose to be part of a team at least as often as men, and that they tend to be more optimistic than men about their teammates' ability.
19 August 2013
and Yona Rubinstein
find that adults who own incorporated business scored above average on learning aptitude tests as teenagers. They also had greater self-esteem and were more likely to engage in aggressive, risk-taking activities than their peers who did not become business owners. Thus a combination of intelligence and willingness to take risks appears to predict the pursuit of an entrepreneurial career.