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Author: Kawaguchi, Daiji
Resulting in 5 citations.
1. Kawaguchi, Daiji
Compensating Wage Differentials among Self-Employed Workers: Evidence from Job Satisfaction Scores
Working Paper No. 568, the Institute of Social and Economic Research - Osaka University, June 2002
Cohort(s): NLSY79
Publisher: Institute of Social and Economic Research (ISER), Osaka University
Keyword(s): Job Satisfaction; Job Tenure; Self-Employed Workers; Wage Differentials

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

Previous studies have found that self-employed workers with long business tenure earn less than other workers with similar characteristics. This difference in earnings can be explained by the compensating wage differential theory when self-employed jobs have attractive, non-pecuniary aspects. Using the National Longitudinal Survey of Youth 79 (NLSY79), I test whether moves in and out of self-employment are associated with changes in global job satisfaction. By looking at changes in job satisfaction for individuals over time, I overcome the difficulty of interpreting differences in subjective job satisfaction scores across individuals that cross-sectional analysis would require. Using my estimates, I calculate the monetary value of the non-pecuniary aspects of self-employment and find that the value of self-employment in terms of job satisfaction is sufficiently high enough to support the compensating differential hypothesis as an explanation for lower earnings among self-employed workers.
Bibliography Citation
Kawaguchi, Daiji. "Compensating Wage Differentials among Self-Employed Workers: Evidence from Job Satisfaction Scores." Working Paper No. 568, the Institute of Social and Economic Research - Osaka University, June 2002.
2. Kawaguchi, Daiji
Earnings of Self-Employed Workers and Peer Effects Among Teenagers
Ph.D. Dissertation, Michigan State University, 2002. DAI-A 63/09, p. 3293, Mar 2003
Cohort(s): NLSY79, NLSY97
Publisher: UMI - University Microfilms, Bell and Howell Information and Learning
Keyword(s): Earnings; Endogeneity; Human Capital; Job Satisfaction; Labor Economics; Life Cycle Research; Modeling, Mixed Effects; Peers/Peer influence/Peer relations; Self-Employed Workers

This dissertation contains three essays in applied microeconomics. Chapter 1 revisits the empirical results of Lazear and Moore [Edward Lazear and John Moore (1984) "Incentive, Productivity, and Contract" Quarterly Journal of Economics. That paper found that empirical experience-earnings profiles were flatter for self-employed workers and argued that this supported the Lazear contract theory that claim firms use life-cycle backloaded payment systems to work around principal-agent problems between firms and workers. This chapter reproduces the Lazear and Moore result on more modern data, but argues for an alternative interpretation. In particular, this chapter argues that self-employed workers face more wage variation but enjoy a higher return for human capital. A model based on these assumptions can produce flatter experience-earnings profile since self-employed workers start their career with more human capital and due to opportunity cost, they invest less in human capital on the job. The chapter develops implications of the model not found in the Lazear contract model and concludes by developing support for these implications. Chapter 2 attempts to explain the lower earnings among self-employed workers found by Hamilton [Barton Hamilton (2000) "Does entrepreneurship pay? An Empirical Analysis of the Return of Self-Employment" Journal of Political Economy. That paper found 20% lower earnings of self-employed workers with 10 years of business tenure than comparable salaried workers with 10 years of job tenure. This difference in earnings can in principal be explained by the compensating wage differential theory when self-employed jobs have attractive non-monetary aspects. Using the National Longitudinal Survey Youth 79 (NLSY79), this chapter tests whether self-employment is associated with higher global job satisfaction. By looking at changes in job satisfaction for individuals over time, I overcome the difficulty of interpreting differences in subjective job satisfaction scores across individuals that cross-sectional analysis would require. Using my estimates, I calculate the monetary value of the non-monetary aspects of self-employment and find that one dollar earned while a self-employed worker is equivalent to as much as three to four dollars earned as a salary or wage worker. Although the valuation is surprisingly high, the direction of the estimate is consistent with the compensating wage differential hypothesis. Although job satisfaction is a partial component of workers' total utility, the value of self-employment in terms of job satisfaction is sufficiently high to support the compensating differential hypothesis as an explanation for lower earnings among self-employed workers. I also evaluate several other explanations for the surprisingly high valuation of self-employment. Chapter 3 attempts to estimate peer effects on substance usage among teenagers. This chapter first summarizes the problems in the identification of peer effects. The existence of unobserved characteristics of individuals and endogenous sorting into reference groups based on unobserved characteristics causes problems in the identification of peer effects. The solutions for this problem are: (1) To control 'unobservable' through including plenty of explanatory variables using rich data set or using sibling method to difference out unobservable. (2) To use natural experimental situation in which reference group is assigned randomly. (3) To use economic theory to get a prediction that arises only from peer effect but not from contextual or correlated effect. In this chapter, the method 1 was taken. Significant peer effects were found on substance usage among teenagers.
Bibliography Citation
Kawaguchi, Daiji. Earnings of Self-Employed Workers and Peer Effects Among Teenagers. Ph.D. Dissertation, Michigan State University, 2002. DAI-A 63/09, p. 3293, Mar 2003.
3. Kawaguchi, Daiji
Peer Effects on Substance Use Among American Teenagers
Discussion Paper No. 567, Institute of Social and Economic Research - Osaka University, May 2002.
Also: http://www.iser.osaka-u.ac.jp/library/dp/2002/DP0567.PDF
Cohort(s): NLSY97
Publisher: Institute of Social and Economic Research (ISER), Osaka University
Keyword(s): Behavior; Modeling, Fixed Effects; Peers/Peer influence/Peer relations; Substance Use; Teenagers

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

The widespread use of illicit substances by American teenagers has attracted the interest of both the public and academic researchers. Among the various factors that people believe influence youth substance use, peer effects are identified as a critical determinant; substance use is considered a highly social behavior. Identifying peer effects, however, is not an easy task. Common teenage behaviors can be due to similar unobserved characteristics of the group members or peer effects. Moreover, it is difficult to pinpoint whether a subject is affecting the group members' behaviors or vice versa. In addition, both current substance users and the backgrounds of peer group members may affect an individual's behaviors. Although both types of effects are called "peer effects," each has different policy implications. Distinguishing between these two types of effects, however, is difficult. In an attempt to overcome these difficulties, I estimate peer effects on substance usage among American teenagers using perceived peer behavior in National Longitudinal Survey Youth 97. School and household fixed effect estimation are also employed to ensure the robustness of the results. The data indicate robust peer effects. Moreover, the results do not change substantially in school and household fixed effect estimations.
Bibliography Citation
Kawaguchi, Daiji. "Peer Effects on Substance Use Among American Teenagers." Discussion Paper No. 567, Institute of Social and Economic Research - Osaka University, May 2002.
4. Kawaguchi, Daiji
Peer Effects on Substance Use Among American Teenagers
Journal of Population Economics 17,2 (June 2004): 351-367.
Also: http://www.springerlink.com/content/de0mre91u975v5qt/
Cohort(s): NLSY97
Publisher: Springer
Keyword(s): Behavior; Household Models; Modeling; Modeling, Fixed Effects; Peers/Peer influence/Peer relations; Substance Use; Teenagers

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

The widespread use of illicit substances by American teenagers has attracted the interest of both the general public and academic researchers. Among the various factors that people believe influence youth substance use, peer effects are identified as a critical determinant. Identifying peer effects, however, is known to be a difficult task. In an attempt to overcome known difficulties, I estimate peer effects on substance usage among American teenagers using perceived peer behavior in the National Longitudinal Survey Youth 97. The data indicate robust peer effects. Moreover, the results do not change substantially in school and household fixed effects estimations. [ABSTRACT FROM AUTHOR]
Bibliography Citation
Kawaguchi, Daiji. "Peer Effects on Substance Use Among American Teenagers." Journal of Population Economics 17,2 (June 2004): 351-367.
5. Kawaguchi, Daiji
Self-Employment Rents: Evidence from Job Satisfaction Scores
Hitotsubashi Journal of Economics 49,1 (June 2008): 35-45.
Also: http://hermes-ir.lib.hit-u.ac.jp/rs/handle/10086/15881
Cohort(s): NLSY79
Publisher: Hitotsubashi University
Keyword(s): Heterogeneity; Job Satisfaction; Self-Employed Workers; Self-Reporting; Wages

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

Previous studies have pointed to the existence of barriers at the entry of self-employed sectors, such as liquidity constraints. In many countries, policies are directed toward removing these barriers in order to promote entrepreneurial activity. This paper examines whether such barriers exist by examining the amount of rent enjoyed by self-employed workers; if there are no barriers between the self-employed sector and the salary/wage sector, self-employed workers should not enjoy rents. Examination of the rent associated with self-employment, however, cannot simply be accomplished by comparing the incomes of self-employed and salary/wage workers. This is because self-employed workers may enjoy higher utility due to their work environment, with such benefits as autonomy and flexibility of work schedules. To overcome the difficulty of measuring self-employment rents, I use self-reported job satisfaction from the National Longitudinal Survey of Youth 79 (NLSY79) to capture workers' overall satisfaction with their jobs. The results robustly indicate that self-employed workers are more satisfied with their jobs than salary/wage workers, even after allowing for the time-invariant individual heterogeneity in their reported job satisfaction. This result suggests that there are barriers at the entry into self-employment and that self-employed workers enjoy rents.
Bibliography Citation
Kawaguchi, Daiji. "Self-Employment Rents: Evidence from Job Satisfaction Scores." Hitotsubashi Journal of Economics 49,1 (June 2008): 35-45.