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Author: Eckstein, Zvi
Resulting in 7 citations.
1. Bowlus, Audra Jann
Eckstein, Zvi
Discrimination and Skill Differences in an Equilibrium Search Model
Working Paper 04/98, Tel Aviv, Israel, Foerder Institute for Economic Research and Sackler Institute for Economic Research, February 1998.
Also: http://www.tinbergen.nl/discussionpapers/98112.pdf
Cohort(s): NLSY79
Publisher: Eitan Berglas School of Economics
Keyword(s): Benefits, Fringe; Discrimination, Employer; Discrimination, Racial/Ethnic; Economics of Discrimination; Economics of Gender; Economics of Minorities; Human Capital; Labor Market Demographics; Modeling; Quits; Retirement; Schooling; Skilled Workers; Training, Occupational; Unemployment; Wage Differentials; Wage Levels

Permission to reprint the abstract has not been received from the publisher.

In this paper we analyze an equilibrium search model with three sources for wage and unemployment differentials among workers with the same (observed) human capital, but different appearance (race): unobserved productivity (skill), search intensities and discrimination (Becker 1957) due to an appearance-based employer disutility factor. Because these sources affect the earnings distributions differently, empirical identification of these potential sources for the explanation of wage and unemployment differentials is possible. We show that the structural parameters of the model, including the firm's disutility from certain workers, are identifiable using standard labor market survey data. We demonstrate identification using data from the National Longitudinal Survey of Youth. Estimation of these parameters by matching moments from a sample of black and white high school graduates implies: a) blacks have a 9% lower productivity level than whites; b) the disutility factor in employer's preferences is 28% of the white's productivity level; and c) 53% of firms have a disutility factor in their utility towards blacks. (Copies available from: The Eitan Berglas School of Economics, Tel Aviv University, Tel Aviv 69978, Israel. Website: econ.tau.ac.il. No charge. COPYRIGHT: This record is part of the Abstracts of Working Papers in Economics (AWPE) Database, copyright (c) 1997 Cambridge University Press.)
Bibliography Citation
Bowlus, Audra Jann and Zvi Eckstein. "Discrimination and Skill Differences in an Equilibrium Search Model." Working Paper 04/98, Tel Aviv, Israel, Foerder Institute for Economic Research and Sackler Institute for Economic Research, February 1998.
2. Eckstein, Zvi
Ge, Suqin
Petrongolo, Barbara
Job and Wage Mobility in a Search Model with Non-Compliance (Exemptions) with the Minimum Wage
IZA Discussion Paper No. 2076, Institute for the Study of Labor (IZA), April 2006.
Also: http://ftp.iza.org/dp2076.pdf
Cohort(s): NLSY79
Publisher: Institute for the Study of Labor (IZA)
Keyword(s): Job Search; Mobility, Job; Modeling; Wage Growth; Wages

Permission to reprint the abstract has not been received from the publisher.

How well does a simple search on-the-job model fit the eighteen years of job and wage mobility of high school graduates? To answer this question we are confronted from the data with a prevalent non-compliance and exemptions from the minimum wage. We incorporate this observation in a job search model with three main ingredients: (i) search on-the-job; (ii) minimum wages, with potentially imperfect compliance or exemptions; and, (iii) exogenous wage growth on-the-job. We use panel data drawn from the NLSY79, US youth panel starting in 1979, to estimate the parameters of our simple job search model and, in particular, the extent of non-compliance/exemptions to the minimum wage. The model is solved numerically and we use simulated moments to estimate the parameters. The estimated parameters are consistent with the model and they provide a good fit for the observed levels and trends of the main job and wage mobility data. Furthermore, the estimated model indicates that the non-compliance and exemption rate with the federal minimum wage translates into a roughly 10% of jobs paying less than the minimum wage. Counterfactual experiment of increase of the compliance/non-exemption rate or the minimum wage shows a small effect on mean accepted wages but a significant negative effect on the non-employment rate.
Bibliography Citation
Eckstein, Zvi, Suqin Ge and Barbara Petrongolo. "Job and Wage Mobility in a Search Model with Non-Compliance (Exemptions) with the Minimum Wage." IZA Discussion Paper No. 2076, Institute for the Study of Labor (IZA), April 2006.
3. Eckstein, Zvi
Ge, Suqin
Petrongolo, Barbara
Job and Wage Mobility with Minimum Wages and Imperfect Compliance
Journal of Applied Econometrics 26,4 (June-July 2011): 580.
Also: http://www.econ.queensu.ca/jae/forthcoming/eckstein-ge-petrongolo/
Cohort(s): NLSY79
Publisher: Wiley Online
Keyword(s): Job Search; Labor Force Participation; Life Cycle Research; Mobility, Job; Modeling; Wage Dynamics; Wage Growth

Permission to reprint the abstract has not been received from the publisher.

We propose a job search model with minimum wage regulations and imperfect compliance to explain the doubling of the mean and variance of hourly earnings of white males during the first eighteen years of labor market experience. The model encompasses job mobility and on-the-job wage growth as sources of wage dynamics, and is estimated by simulated GMM using data from the NLSY79. Our estimates provide a good fit for the observed levels and trends of the main job and wage mobility data, and for the increase in the mean and variance of wages over the life cycle, as well as for the fall in the fraction of workers paid below the minimum wage. Job mobility explains 40% to 50% of the observed wage growth. Increases in the minimum wage and/or compliance deliver small effects on the wage distribution and the nonemployment rate.

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Bibliography Citation
Eckstein, Zvi, Suqin Ge and Barbara Petrongolo. "Job and Wage Mobility with Minimum Wages and Imperfect Compliance." Journal of Applied Econometrics 26,4 (June-July 2011): 580.
4. Eckstein, Zvi
Ge, Suqin
Petrongolo, Barbara
Minimum Wage and Compliance in a Model of Search on-the-Job
Presented: Sonderborg, Denmark, Conference of Labor Market Models and Matched Employer-Employee Data, August 2004.
Also: http://repec.org/sed2005/up.25119.1104042882.pdf
Cohort(s): NLSY79
Publisher: Center for Labour Market and Social Research
Keyword(s): Job Search; Minimum Wage; Modeling

Permission to reprint the abstract has not been received from the publisher.

We estimate a job search model with three main ingredients: (i) search on-the-job; (ii) wage growth on-the-job; and (iii) minimum wages, with potentially imperfect compliance. We use data drawn from the NLSY79 to estimate the parameters of our job search model and, in particular, the extent of compliance to the minimum wage. The model is solved numerically and we use simulated moments to estimate the parameters. The estimated parameters are consistent with the model and they provide a good fit for the observed level and trend of main labor market moments. Furthermore, the arrival rate of job offers below the minimum wage is 40% lower than the arrival rate of job offers above the minimum wage.
Bibliography Citation
Eckstein, Zvi, Suqin Ge and Barbara Petrongolo. "Minimum Wage and Compliance in a Model of Search on-the-Job." Presented: Sonderborg, Denmark, Conference of Labor Market Models and Matched Employer-Employee Data, August 2004.
5. Eckstein, Zvi
Wolpin, Kenneth I.
Dynamic Labor Force Participation of Married Women and Endogenous Work Experience
Review of Economic Studies 56,3 (July 1989): 375-390.
Also: http://www.jstor.org/stable/2297553
Cohort(s): Mature Women
Publisher: Blackwell Publishing, Inc. => Wiley Online
Keyword(s): Earnings, Husbands; Endogeneity; Family Influences; Labor Force Participation; Life Cycle Research; Marital Status; Wives, Work; Work Experience

A dynamic model of married women's labor force participation and fertility is estimated using the NLS Mature Women's cohort data. The estimates are used to predict changes in the lifecycle patterns of employment due to changes in schooling, fertility, husband's income, and the magnitude of the experience effect on wages. Findings show that although work experience increases the disutility of further work, this effect is overwhelmed by the positive effect of experience on wages, leading to persistence in the employment patterns of these women. It was also found that an increase in young children and in husband's income substantially reduces participation while increased schooling has a powerful positive impact on participation.
Bibliography Citation
Eckstein, Zvi and Kenneth I. Wolpin. "Dynamic Labor Force Participation of Married Women and Endogenous Work Experience." Review of Economic Studies 56,3 (July 1989): 375-390.
6. Eckstein, Zvi
Wolpin, Kenneth I.
Estimating a Market Equilibrium Search Model from Panel Data on Individuals
Econometrica 58,4 (July 1990): 783-808.
Also: http://www.jstor.org/stable/2938350
Cohort(s): NLSY79
Publisher: Department of Economics, Northwestern University
Keyword(s): Heterogeneity; Job Search; Labor Force Participation; Minimum Wage; Modeling, Mixed Effects; Unemployment; Wages; Welfare

Permission to reprint the abstract has not been received from the publisher.

This paper demonstrates the feasibility of estimating a Nash labor market equilibrium model using only information of workers. The equilibrium model is adapted from Albrecht and Axell (1984) and is based on workers who are homogeneous in terms of market productivity and heterogeneous in terms of non-market productivity, and on firms which are heterogeneous in terms of productive efficiency. The equilibrium model is contrasted in terms of its fit to the data with an unrestricted version of the model which is based on a mixture of negative binomial distributions. The equilibrium model fails to conform to the data in exactly the dimension of its major focus, namely it implies that measurement error accounts for almost all of the dispersion in observed wages. The equilibrium model also does not do well in fitting the unemployment duration distribution compared to the unrestricted model. The problem is that the duration distribution itself does not support the existence of significant heterogeneity, as evidenced by the estimates of the unrestricted model. The paper also illustrates the use of such models for policy analysis by simulating the welfare effects of a minimum wage.
Bibliography Citation
Eckstein, Zvi and Kenneth I. Wolpin. "Estimating a Market Equilibrium Search Model from Panel Data on Individuals." Econometrica 58,4 (July 1990): 783-808.
7. Eckstein, Zvi
Wolpin, Kenneth I.
Estimating the Effect of Racial Discrimination on First Job Wage Offers
Review of Economics and Statistics 81,3 (August 1999): 384-392.
Also: http://www.jstor.org/stable/2646762
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Discrimination; Educational Attainment; High School Completion/Graduates; High School Dropouts; Racial Differences; Wages

Permission to reprint the abstract has not been received from the publisher.

In this paper we develop and implement a method for bounding the extent to which labor market discrimination can account for racial wage differentials. The method is based on a two-sided, search-matching model that formally accounts for unobserved heterogeneity and unobserved offered wages. We find that racial differences in offered wages are proportionately twice (three times) as large as racial differences in accepted wages for high-school dropouts (high-school graduates). The results indicate that discrimination could account for the entire racial wage-offer differential for high-school dropouts and for high-school graduates, i.e., the bound on the extent of discrimination is not informative.
Bibliography Citation
Eckstein, Zvi and Kenneth I. Wolpin. "Estimating the Effect of Racial Discrimination on First Job Wage Offers." Review of Economics and Statistics 81,3 (August 1999): 384-392.