Lowell J. Taylor

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This investigation of the effect of sexual orientation on earnings employs General Social Survey data from 1989–96. Depending largely on the definition of sexual orientation used, earnings are estimated as having been between 14% and 16% lower for gay men than for heterosexual men, and between 20% and 34% higher for lesbian women than for heterosexual(More)
The standard revealed-preference estimate of a city’s quality of life is proportional to that city’s cost-of-living relative to its wage-level. Adjusting estimates to account for federal taxes, nonhousing costs, and non-labor income produces more plausible quality-of-life estimates than in the previous literature. Unlike previous estimates, adjusted(More)
Public transit accounts for only 1% of U.S. passenger miles traveled but nevertheless attracts strong public support. Using a simple choice model, we predict that transit riders are likely to be individuals who commute along routes with the most severe roadway delays. These individuals’ choices thus have very high marginal impacts on congestion. We test(More)
The Sociology of Groups and the Economics of Incentives: Theory and Evidence on Compensation Systems When working together, people engage in non-contractual and informal interactions that constitute the sociology of the group. We use behavioral models and a unique survey of medical groups to analyze how group sociology influences physician incentive pay and(More)
Economists generally assume, implicitly, that “the return to schooling” is invariant across local labor markets. We demonstrate that this outcome pertains if and only if preferences are homothetic—a special case that seems unlikely. Our theory predicts that returns to education will instead be relatively low in expensive high-amenity locations. Our analysis(More)
This paper documents a little-noticed feature of US labor markets—very large variation in the labor supply of married women across cities. We focus on cross-city differences in commuting times as a potential explanation for this variation. We start with a model in which commuting times introduce non-convexities into the budget set. Empirical evidence is(More)
We analyze the role of search frictions in the market for commercial health insurance. Frictions increase the cost of insurance by enabling insurers to set price above marginal cost, and by creating incentives for inefficiently high levels of marketing. Frictions also lead to price dispersion for identical products and, as a consequence, to increases in the(More)
The standard model of markets for illicit drugs predicts that tougher enforcement against sellers will raise prices; yet cocaine and heroin prices have fallen substantially during a period of massive increases in enforcement. We present a model in which the basic mechanisms at work in the textbook model may be substantially altered by an important feature(More)