Search Results

Author: Neumark, David B.
Resulting in 34 citations.
1. Blackburn, McKinley L.
Bloom, David E.
Neumark, David B.
Fertility Timing, Wages, and Human Capital
Journal of Population Economics 6,1 (February 1993):1-30.
Also: http://www.springerlink.com/content/g7757p8352823q02/
Cohort(s): Young Women
Publisher: Springer
Keyword(s): Childbearing; Fertility; First Birth; Human Capital Theory; Life Cycle Research; Wages

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

Women who have first births relatively late in life earn higher wages. This paper offers an explanation of this fact based on a simple life-cycle model of human capital investment and timing of first birth. The model yields conditions (that are plausibly satisfied) under which late childbearers will tend to invest more heavily in human capital than early childbearers. The empirical analysis finds results consistent with the higher wages of late childbearers arising primarily through greater measurable human capital investment. Revised, July 1992. An earlier version of this paper was presented at the March 1989 annual meetings of the Population Association of America.
Bibliography Citation
Blackburn, McKinley L., David E. Bloom and David B. Neumark. "Fertility Timing, Wages, and Human Capital." Journal of Population Economics 6,1 (February 1993):1-30.
2. Blackburn, McKinley L.
Neumark, David B.
Are OLS Estimates of the Return to Schooling Biased Downward? Another Look
Review of Economics and Statistics 77,2 (May 1995): 217-230.
Also: http://www.jstor.org/stable/2109861
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Educational Returns; Endogeneity; Human Capital; Modeling; Occupational Choice; Schooling; Test Scores/Test theory/IRT; Training, On-the-Job; Wage Equations

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

The authors examine evidence on bias in OLS estimates of the economic return to schooling. To study omitted- ability bias, they use test scores available in the National Longitudinal Survey of Youth as proxies for ability allowing for measurement error in these test scores. The authors also explore biases from the endogeneity of schooling or experience, or measurement error in these variables. In their data, OLS estimation including test scores appears to be appropriate and indicates an upward bias of roughly 40 percent in the OLS estimate ignoring ability. This contrasts with evidence from other recent research using different statistical experiments to purge schooling of its correlation with the wage equation error.
Bibliography Citation
Blackburn, McKinley L. and David B. Neumark. "Are OLS Estimates of the Return to Schooling Biased Downward? Another Look." Review of Economics and Statistics 77,2 (May 1995): 217-230.
3. Blackburn, McKinley L.
Neumark, David B.
Efficiency Wages, Inter-Industry Wage Differentials, and the Returns to Ability
Working Paper, Finance and Economics Discussion Series, Federal Reserve Board, Washington DC, 1988
Cohort(s): Young Men
Publisher: Federal Reserve Board
Keyword(s): Armed Services Vocational Aptitude Battery (ASVAB); Current Population Survey (CPS) / CPS-Fertility Supplement; Earnings; Education; Endogeneity; I.Q.; Industrial Classification; Modeling, Fixed Effects; Occupations; Schooling; Test Scores/Test theory/IRT; Wages

The empirical regularity that has most frequently been offered as evidence consistent with efficiency wage models is the existence of persistent inter-industry wage differentials in wage regressions estimated for individuals. A principal competing explanation of these differentials is that they are generated by differences across workers in unobserved ability. While fixed-effects wage equations have been estimated to account for this, the estimates may suffer from measurement error and endogeneity of the decision to change industries. This paper takes an alternative, direct approach, by incorporating ability directly in a MIMIC model of earnings, with test scores serving as indicators of unobserved ability, and family background measures serving as causes. The models are estimated using data from the NLS Young Men's cohort. The results indicate that neither inter-industry nor inter- occupation wage differentials are attributable to differences in unobserved ability.
Bibliography Citation
Blackburn, McKinley L. and David B. Neumark. "Efficiency Wages, Inter-Industry Wage Differentials, and the Returns to Ability." Working Paper, Finance and Economics Discussion Series, Federal Reserve Board, Washington DC, 1988.
4. Blackburn, McKinley L.
Neumark, David B.
Omitted-Ability Bias and the Increase in the Return to Schooling
Journal of Labor Economics 11,3 (July 1993): 521-544.
Also: http://www.jstor.org/stable/2535084
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): Educational Returns; Schooling; Wages

During the 1980s there were sharp increases in the return to schooling estimated with conventional wage regressions. An analysis explores whether the relationship between ability and schooling changed over this period in ways that would have increased the schooling coefficient in these regressions. The empirical results reject the hypothesis that an increase in the bias of the schooling coefficient, due to a change in the relationship between ability and schooling, has contributed to observed increases in the return to schooling. It is also found that the increase in the schooling return has occurred for workers with relatively high levels of academic ability. This implies that existing estimates of the increase in the return to schooling overstate increases in the true incentive for the marginal individual to acquire schooling. Supply-side explanations are plausible in explaining an increase in the return to education for high-ability workers only. (ABI/Inform)
Bibliography Citation
Blackburn, McKinley L. and David B. Neumark. "Omitted-Ability Bias and the Increase in the Return to Schooling." Journal of Labor Economics 11,3 (July 1993): 521-544.
5. Blackburn, McKinley L.
Neumark, David B.
Unobserved Ability, Efficiency Wages, and Interindustry Wage Differentials
Quarterly Journal of Economics 107,4 (November 1992): 1421-1436.
Also: http://qje.oxfordjournals.org/content/107/4/1421.full.pdf+html
Cohort(s): NLSY79, Young Men
Publisher: MIT Press
Keyword(s): Test Scores/Test theory/IRT; Wage Differentials

An important area of research on the empirical validity of efficiency wage theory has focused on the role of industry effects in explaining variation in wages across workers. In this paper we test the unobserved ability explanation of interindustry and interoccupation wage differentials by explicitly incorporating measures of unobserved ability into wage regressions. The procedure we use may be an improvement over past attempts to account for unobserved ability using standard first difference estimators, since it is less likely to suffer from biases due to measurement error or selectivity. The major limitation of our approach is that we cannot control for variation in ability that is not reflected in the test scores that we use as indicators of ability. Our empirical results imply that interindustry and interoccupation wage differentials are, for the most part, not attributable to variation in unobserved labor quality or ability. Our estimates indicate that just over one tenth of the variation in interindustry wage differentials, and less than one fourth of the variation in interoccupation wage differentials, reflect differences in unobserved ability.
Bibliography Citation
Blackburn, McKinley L. and David B. Neumark. "Unobserved Ability, Efficiency Wages, and Interindustry Wage Differentials." Quarterly Journal of Economics 107,4 (November 1992): 1421-1436.
6. Gardecki, Rosella M.
Neumark, David B.
Early Labor Market Experiences and Their Consequences for Adult Labor Market Outcomes
Final Report to the Office of Technology Assessment (OTA) A3-0076.0, September 1995
Cohort(s): NLSY79
Publisher: U.S. Government Printing Office
Keyword(s): Job Training; Labor Market Demographics; Labor Market Outcomes; Transition, School to Work; Wages, Youth

In this paper we seek to provide empirical evidence on the labor market experiences of youths, and their transitions to career jobs, in order to better inform this policy debate. We proceed in three steps. First. we describe numerous dimensions of youth labor market experiences, including training, wages, the stability of employment measured along a number of dimensions, the accumulation of tenure, and industry and occupation of employment. We ask questions such as "How much training does a worker receive in his or her first few years in the labor market, and how does this change over these first few years?," "How much community college does a person attend after leaving more traditional formal schooling?," and "How much tenure with an employer does a young worker tend to accumulate, and how does the distribution of tenure evolve in the first few years in the labor market?- Second, we document the intertemporal relationships among these various components of youth labor market experiences, to understand the consequences, if any, of a failure to settle into a steady job or steady employment, or a job involving training, in the first year or two after leaving school. An implicit criticism of the "chaotic" youth labor market would appear to be that the failure to find stable employment and jobs immediately after leaving school worsens the ability of young workers to find stable employment and jobs down the road. Finally, we explore the relationship between the entire gamut of youth labor market experiences and labor market outcomes of more mature adults. This is the question with which we should ultimately be concerned. There are many paths to "success" as an adult in the labor market, and we would like to know whether more "chaotic" experiences in the school-to-work transition are in fact associated with less success in the labor market in the long run. While there is a voluminous literature on youth labor markets and young workers, relatively little research has addressed the links between youth labor market experiences and the careers of adults, and, to the best of our knowledge, no research has attempted to take a comprehensive look at the relationships between numerous dimensions of the youth labor market experience and later careers. Thus, while our findings by no means address or settle all of the questions relevant to the transitions of youths to their adult labor market careers, they add a good deal of helpful information.
Bibliography Citation
Gardecki, Rosella M. and David B. Neumark. "Early Labor Market Experiences and Their Consequences for Adult Labor Market Outcomes." Final Report to the Office of Technology Assessment (OTA) A3-0076.0, September 1995.
7. Gardecki, Rosella M.
Neumark, David B.
Order from Chaos? The Effects of Early Labor Market Experiences on Adult Labor Market Outcomes
Industrial and Labor Relations Review 51,2 (January 1998): 299-322.
Also: http://www.jstor.org/stable/2525220
Cohort(s): NLSY79
Publisher: New York State School of Industrial and Labor Relations, Cornell University
Keyword(s): Labor Market Outcomes; Mobility; Mobility, Labor Market; Transition, School to Work

This paper examines the consequences of initial periods of "churning" or "mobility" in the labor market, to help assess whether faster transitions to stable employment relationships--as envisioned by advocates of school-to-work programs--would be likely to lead to better adult labor market outcomes. An analysis of National Longitudinal Survey of Youth data for the years 1979-92 yields modest evidence, at best, linking early job market stability to better labor market outcomes. The authors find that for both genders, adult labor market outcomes (defined as of the late 20s or early to mid-30s) are for the most part unrelated to early labor market experiences. This evidence does not support efforts to explicitly target the school-to-work transition, insofar as doing so implies changing the structure of youth labor markets so that workers form earlier and firmer attachments to employers, industries, or occupations. Copyright by Cornell University.
Bibliography Citation
Gardecki, Rosella M. and David B. Neumark. "Order from Chaos? The Effects of Early Labor Market Experiences on Adult Labor Market Outcomes." Industrial and Labor Relations Review 51,2 (January 1998): 299-322.
8. Johnson, Richard W.
Neumark, David B.
Age Discrimination, Job Separations, And Employment Status of Older Workers: Evidence from Self-Reports
NBER Working Paper No. 5619, National Bureau of Economic Research, June 1996.
Also: http://nber.nber.org/papers/W5619
Cohort(s): Older Men
Publisher: National Bureau of Economic Research (NBER)
Keyword(s): Age and Ageing; Discrimination, Age; Heterogeneity; Labor Market Outcomes; Self-Reporting

This paper explores the prevalence and consequences of age discrimination in the workplace by analyzing self-reports of discrimination by respondents in the National Longitudinal Survey of Older Men. Age discrimination was reported in seven percent of our cases, during the period 1966-1980. Workers with positive reports were much more likely to separate from their employer and less likely to remain employed than workers who report no age discrimination. The estimated effect of reported discrimination remains large and significant even when controlling for the existence of mandatory retirement provisions on the current job. These findings are generally robust to numerous attempts to correct the estimates for the inherent limitations of self-reported data, particularly the potential heterogeneity bias that arises from differences in the propensity to report discrimination, and the possibility that discrimination is reported in response to other negative labor market outcomes. Full-text available on-line: http://nber.nber.org/papers/W5619
Bibliography Citation
Johnson, Richard W. and David B. Neumark. "Age Discrimination, Job Separations, And Employment Status of Older Workers: Evidence from Self-Reports." NBER Working Paper No. 5619, National Bureau of Economic Research, June 1996.
9. Johnson, Richard W.
Neumark, David B.
Age Discrimination, Job Separations, and Employment Status of Older Workers: Evidence from Self-Reports
Journal of Human Resources 32,4 (Fall 1997): 779-811.
Also: http://www.jstor.org/stable/146428
Cohort(s): Older Men
Publisher: University of Wisconsin Press
Keyword(s): Age and Ageing; Discrimination, Age; Employment; Job Turnover; Labor Market Outcomes; Self-Reporting

This paper explores the consequences of age discrimination in the workplace by analyzing self-reports of discrimination in the National Longitudinal Survey of Older Men, for the period 1966-80. Workers with positive reports were much more likely to separate from their employer and less likely to remain employed than workers who report no employer related age discrimination. The findings for job separations, but not employment status, are robust to numerous attempts to correct the estimates for the inherent limitations of self-reported data, particularly heterogeneity in the propensity to report discrimination, the influence of mandatory retirement, and the possibility that other negative labor market outcomes are attributed to discrimination.
Bibliography Citation
Johnson, Richard W. and David B. Neumark. "Age Discrimination, Job Separations, and Employment Status of Older Workers: Evidence from Self-Reports." Journal of Human Resources 32,4 (Fall 1997): 779-811.
10. Johnson, Richard W.
Neumark, David B.
Wage Declines Among Older Men
Preliminary Paper, Population Studies Center, the University of Pennsylvania, 1992
Cohort(s): Older Men
Publisher: University of Pennsylvania Press
Keyword(s): Age and Ageing; Human Capital; Social Security; Wage Dynamics; Wage Growth; Wage Rates; Wages, Men

This paper re-examines the evidence an whether real wages decline with age among older men. While the human capital model of wage growth predicts that wages will fall as workers near the end of their career, we demonstrate that two alternative theories -- based on the shirking model and the forced-saving hypothesis -generally do not predict wage declines for older workers. Our analysis indicates that factors other than the depreciation of human capital can explain most of the drop in wages. In particular, longitudinal estimation of age-wage profiles reveals that much of the observed decline in cross-sectional data results from the tendency of lower-wage workers to remain at work while collecting Social Security.
Bibliography Citation
Johnson, Richard W. and David B. Neumark. "Wage Declines Among Older Men." Preliminary Paper, Population Studies Center, the University of Pennsylvania, 1992.
11. Johnson, Richard W.
Neumark, David B.
Wage Declines Among Older Men
The Review of Economics and Statistics 78,4 (November 1996): 740-748.
Also: http://www.jstor.org/stable/2109961
Cohort(s): Older Men
Publisher: Harvard University Press
Keyword(s): Age and Ageing; Human Capital; Life Cycle Research; Social Security; Wage Dynamics; Wage Growth; Wage Rates; Wages, Men

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

The evidence on whether real wages decline with age among older men is examined. While the general human capital model of wage growth over the life cycle predicts that wages will fall as workers approach the end of their career, alternative models of wage growth do not predict these wage declines. It is found that in the longitudinal estimates of age-wage profiles wage declines only set in for workers in their 60s. Furthermore, these longitudinal declines are at least partly due to interactions with the Social Security system. The earnings cap or other effects of Social Security appear to lead some workers to choose jobs and job characteristics associated with lower wages. (ABI/Inform)
Bibliography Citation
Johnson, Richard W. and David B. Neumark. "Wage Declines Among Older Men." The Review of Economics and Statistics 78,4 (November 1996): 740-748.
12. Joyce, Mary
Neumark, David B.
An Introduction to School-to-Work Programs in the NLSY97: How Prevalent Are They, and Which Youths Do They Serve?
NBER Working Paper No. 7733, National Bureau of Economic Research, June 2000.
Also: http://papers.nber.org/papers/W7733
Cohort(s): NLSY97
Publisher: National Bureau of Economic Research (NBER)
Keyword(s): High School; High School Completion/Graduates; Schooling; Work Experience

In the wake of the 1994 School-to-Work Opportunities Act (STWOA), we introduce and study two new data sources to estimate the extent to which school-to-work programs have been implemented in U.S. high schools, and the extent to which high school students are participating in these programs. The first data source, the National Longitudinal Survey of Youth, 1997 (NLSY97), provides information directly form students on whether they participated in these programs. The second source, the 1996 School Administrators\'s Survey, was administered to schools attended by NLSY97 interviewees, and provides information directly from schools on whether they offered any school-to-work programs. Findings from the 1996 School Administrator\'s Survey show that school-to-work programs are commonly offered, with over 60 percent of schools providing at least one such program. Findings from the NLSY97 show that a fair number of high school students participate in school-to-work programs, with about 38 percent of students reporting participation in at least one program. The findings concerning whether schools with disadvantaged student populations are more likely to offer school-to-work programs, or whether less-advantaged students are more likely to participate in these programs, are mixed.
Bibliography Citation
Joyce, Mary and David B. Neumark. "An Introduction to School-to-Work Programs in the NLSY97: How Prevalent Are They, and Which Youths Do They Serve?" NBER Working Paper No. 7733, National Bureau of Economic Research, June 2000.
13. Joyce, Mary
Neumark, David B.
School-To-Work Programs: Information from Two Surveys
Monthly Labor Review 124,8 (August 2001): 38-50.
Also: http://stats.bls.gov/opub/mlr/2001/08/art5abs.htm
Cohort(s): NLSY97
Publisher: U.S. Department of Labor
Keyword(s): Employment, Youth; High School; Transition, School to Work; Transitional Programs

Data from the 1996 School Administrator's Survey show that three-fifths of US high schools offer school-to-work programs, while data from the 1997 National Longitudinal Survey show that nearly two-fifths of students participate in such programs; also, public high school students and those who work are more likely tol participate in school-to-work programs.
Bibliography Citation
Joyce, Mary and David B. Neumark. "School-To-Work Programs: Information from Two Surveys." Monthly Labor Review 124,8 (August 2001): 38-50.
14. Korenman, Sanders D.
Neumark, David B.
Does Marriage Really Make Men More Productive?
Journal of Human Resources 26,2 (Spring 1991): 282-307.
Also: http://www.jstor.org/stable/145924
Cohort(s): Young Men
Publisher: University of Wisconsin Press
Keyword(s): Discrimination; Earnings; Marital Status; Marriage; Occupational Status; Wages

This paper examines hypothesized labor market productivity differentials among men of different marital statuses. Utilizing data from the NLS of Young Men, it attempts to distinguish empirically among three competing hypotheses surrounding the large hourly wage premiums (10-40 percent, controlling for observable worker and job characteristics) paid to married men in comparison to never married men. The hypotheses are: productivity-enhancing effects of marriage, selection of "more productive" men into the married state, and discrimination. To the extent that the data allow us to distinguish among the three, they suggest that selection accounts for somewhat less than half of the differential, and discrimination accounts for none of it.
Bibliography Citation
Korenman, Sanders D. and David B. Neumark. "Does Marriage Really Make Men More Productive?" Journal of Human Resources 26,2 (Spring 1991): 282-307.
15. Korenman, Sanders D.
Neumark, David B.
Is Superwoman a Myth? Marriage, Children, and Wages
Working Paper No. 94, Board of Governors of the Federal Reserve System, 1989
Cohort(s): Young Women
Publisher: Federal Reserve Board
Keyword(s): Children; Gender Differences; Human Capital; Marital Status; Marriage; Wages; Work Attachment

This paper explores the relationships between marriage, children, and women's wages. It considers Becker's (1985) hypothesis that household responsibilities reduce the labor market productivity of married women relative to men or single women with comparable labor market human capital. Using a sample drawn from the NLS of Young Women, the authors explore potential biases in estimates of these relationships, including what is believed to be the first longitudinal analyses. No evidence was found that married women have lower labor market productivity than comparable single women. In addition, once account is taken of the effects of children on labor force attachment, there is no consistent association between children and women's wages. The findings suggest that wage differentials between men and women with similar human capital should not be attributed to the greater home responsibilities of married women.
Bibliography Citation
Korenman, Sanders D. and David B. Neumark. "Is Superwoman a Myth? Marriage, Children, and Wages." Working Paper No. 94, Board of Governors of the Federal Reserve System, 1989.
16. Korenman, Sanders D.
Neumark, David B.
Marriage, Motherhood, and Wages
Journal of Human Resources 27,2 (Spring 1992): 233-255.
Also: http://www.jstor.org/stable/145734
Cohort(s): Young Women
Publisher: University of Wisconsin Press
Keyword(s): Comprehensive Employment and Training Act (CETA); Endogeneity; Heterogeneity; Job Tenure; Marriage; Motherhood; Variables, Instrumental; Wage Equations; Wages, Women; Work Experience

Cross-sectional studies find little association between a woman's marital status and her wage rate, but often a negative relationship between children and wages. Several problems in drawing causal inferences from cross-sectional relationships between marriage, motherhood, and wages are analyzed using data from the National Longitudinal Survey of Young Women. It is found that heterogeneity leads to biased estimates of the "direct" effects of marriage and motherhood on wages (i.e., effects net of experience and tenure); first-difference estimates reveal no direct effect of marriage or motherhood on women's wages. Statistical evidence is also found that experience and tenure may be endogenous variables in wage equations; instrumental variables estimates suggest that both ordinary least squares cross-sectional and first-difference estimates understate the direct (negative) effect of children on wages.
Bibliography Citation
Korenman, Sanders D. and David B. Neumark. "Marriage, Motherhood, and Wages." Journal of Human Resources 27,2 (Spring 1992): 233-255.
17. Neumark, David B.
Duration Analysis of Birth Intervals and Underlying Fertility Behavior
Special Studies Paper 226. Washington, DC: Board of Governors of the Federal Reserve System, 1987
Cohort(s): NLSY79
Publisher: Federal Reserve Board
Keyword(s): Behavior; Childbearing; Fertility

This paper studies the fertility behavior underlying estimates of duration or hazard models from NLSY data on first birth intervals, in particular the meaning of the estimated effects of exogenous demographic variables on the hazard rate. Most simply, the question is whether these effects represent variation in planned or expected birth intervals, or instead direct effects on the probability of birth. Utilization of data on timing expectations, along with the demographic variables, allows this question to be answered. The conclusion is that timing plans or expectations are the dominant empirical determinant of actual first birth durations. An implication of this, with important consequences for family policy, is that the source of high fertility among young women with certain demographic characteristics is more the result of their plans and expectations than of "mistakes" (or deviations of actual from expected timing).
Bibliography Citation
Neumark, David B. Duration Analysis of Birth Intervals and Underlying Fertility Behavior. Special Studies Paper 226. Washington, DC: Board of Governors of the Federal Reserve System, 1987.
18. Neumark, David B.
Effects of Minimum Wages on Teenage Employment, Enrollment, and Idleness
ERIC Document No. ED397241; Clearinghouse No. CE072034; August 1995
Cohort(s): NLSY79
Publisher: ERIC
Keyword(s): Current Population Survey (CPS) / CPS-Fertility Supplement; Employment, In-School; Employment, Youth; High School; Higher Education; Minimum Wage; Teenagers; Unemployment; Vocational Education; Wages, Youth

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

A study described the effects of minimum wages on teenagers by using individual-level panel data on school and work transitions of teenagers. Panel data from 1979-92 measuring transitions among alternative employment and enrollment activities of teenagers were obtained from matched Current Population Surveys data sets. Findings indicated that higher minimum wages had significant negative effects on the employment prospects of less skilled teens. In addition, increases in the minimum wage were associated with an earlier age for leaving school. These employment changes were not evenly distributed across all youth, but were concentrated among those youths with the worst employment prospects. Younger idle youths (ages 16-17) had an almost 6 percentage point increase in their changes of continued idleness compared to older idle youths (ages 18-19). The effect of higher minimum wages was even stronger for minority youths. If they were idle before the minimum wage was raise d, they w ould have a higher probability of continuing to be idle. The relationship between a teen worker's wage and the new minimum markedly affected the employment outcome. Teens employed with wages below the new minimum showed a higher probability of becoming unemployed. (Appendixes include previous research on substitution hypothesis, the data set, the econometric framework and estimation, additional evidence on queuing, information on the robustness of the results, and a list of 32 references.) (YLB)
Bibliography Citation
Neumark, David B. "Effects of Minimum Wages on Teenage Employment, Enrollment, and Idleness." ERIC Document No. ED397241; Clearinghouse No. CE072034; August 1995.
19. Neumark, David B.
Employers' Discriminatory Behavior and the Estimation of Wage Discrimination
Journal of Human Resources 23,3 (Summer 1988): 279-295.
Also: http://www.jstor.org/stable/145830
Cohort(s): Young Men, Young Women
Publisher: University of Wisconsin Press
Keyword(s): Discrimination; Discrimination, Employer; Wages

This paper considers the linkage of empirical estimates of wage discrimination between two groups, introduced by Oaxaca (1973), to a theoretical model of employers' discriminatory behavior. It is shown that, conditional on different assumptions about employers' discriminatory tastes, Oaxaca's estimators of wage discrimination can be derived. That the approach is more generally useful is demonstrated by deriving an alternative estimator of wage discrimination, based on the assumption that within each type of labor (e.g., unskilled, skilled) the utility function capturing employers' discriminatory tastes is homogeneous of degree zero with respect to labor inputs from each of the two groups. The estimators are compared empirically in an application to male-female wage differentials.
Bibliography Citation
Neumark, David B. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination." Journal of Human Resources 23,3 (Summer 1988): 279-295.
20. Neumark, David B.
Family Effects on the Human Capital and Earnings of Men and Women
Special Studies Papers 228, Board of Governors of the Federal Reserve System (U.S.), 1987.
Also: http://econpapers.repec.org/paper/fipfedgsp/228.htm
Cohort(s): Young Men, Young Women
Publisher: Federal Reserve Board
Keyword(s): Earnings; Family Influences; Human Capital Theory; Pairs (also see Siblings); Parental Influences; Rural/Urban Differences; Siblings

This paper explores family effects on the human capital--captured in ability, schooling, and experience--and earnings of men and women, utilizing data on same-gender and mixed-gender sibling pairs. The emphasis is on gender differences in these effects. For both genders, significant family effects on human capital are found. While effects on ability and schooling are gender-blind, effects on experience differ markedly for men and women. Significant family effects on earnings are also found, acting both indirectly via human capital, and directly on earnings themselves. Indirect effects appear to be more important for women, and direct effects for men, but this contrast is due partly to differences in the returns to human capital, and not only to differences in family effects. Some preliminary evidence on the sources of these family effects is presented that suggests that: (1) the education of a child is influenced more strongly by the education of the parent of the same gender; and (2) in terms of human capital and earnings, sisters do better in households with no brothers, and brothers do better in households with sisters.
Bibliography Citation
Neumark, David B. "Family Effects on the Human Capital and Earnings of Men and Women." Special Studies Papers 228, Board of Governors of the Federal Reserve System (U.S.), 1987.
21. Neumark, David B.
Gender Differences in Family Effects on Human Capital and Earnings: An Empirical Study of Siblings
In: Applied Behavioural Economics. S. Maital, ed. New York, NY: Columbia University Press, 1988
Cohort(s): Young Men, Young Women
Publisher: Columbia University Press
Keyword(s): Earnings; Family Influences; Gender Differences; Human Capital Theory; Pairs (also see Siblings); Siblings

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

This essay studies the role of the family in determining earnings and various dimensions or measures of human capital, focusing in particular on gender differences in this process. Using data on siblings from the Young Men and Young Women cohorts of the NLS, the paper estimates and compares the magnitude of family influence on the accumulated amount of human capital and earnings of their children. The study finds that: (1) families do affect the earnings of their children; (2) the "symmetry" of family effects on the human capital of men and women is called into question once experience is added to the model; (3) family effects differ by gender; and (4) Schackett's (1981) original finding of correlated wage equation residuals, at least for male sibling pairs, still remains an unexplained empirical puzzle.
Bibliography Citation
Neumark, David B. "Gender Differences in Family Effects on Human Capital and Earnings: An Empirical Study of Siblings" In: Applied Behavioural Economics. S. Maital, ed. New York, NY: Columbia University Press, 1988
22. Neumark, David B.
Gender Differentials in the Labor Force: Measurement, Causes, and Probes
Ph.D. Dissertation, Harvard University, 1987. DAI-A 49/05, p. 1234, Nov 1988.
Also: http://proquest.umi.com.proxy.lib.ohio-state.edu/pqdweb?index=0&did=753736421&SrchMode=2&sid=1&Fmt=2&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1264784574&clientId=3959
Cohort(s): NLSY79, Young Men, Young Women
Publisher: UMI - University Microfilms, Bell and Howell Information and Learning
Keyword(s): Childbearing; Discrimination, Employer; Discrimination, Sex; Earnings; Family Influences; Fertility; Gender Differences; Human Capital Theory; Modeling, Hazard/Event History/Survival/Duration; Pairs (also see Siblings); Parental Influences; Rural/Urban Differences; Siblings

This dissertation analyzes gender differences in the labor force. Its principal goal is to identify the underlying sources of the differentials, and to estimate their quantitative importance.

The first essay addresses the estimation of wage discrimination. It considers the linkage of these estimates, using the "decompositions" introduced by Oaxaca (1973), to theoretical models of discriminatory behavior. A model of employer discrimination is used to derive conditions under which these widely used estimates are valid measures of discrimination. That this approach is more generally useful is demonstrated by showing that different assumptions about the nature of employers' discriminatory behavior lead to alternative estimates of wage discrimination.

The second essay studies the role of the family in determining earnings and various dimensions of human capital, focusing in particular on gender differences. The essay asks whether the finding of Bound, Griliches and Hall (1986), of "symmetric" treatment by the family of male and female offspring in determining ability and schooling, carries over when extended to the accumulation of labor force experience. Somewhat ambiguous findings emerge, due to the difficulty of identifying parameters capturing all of the possible channels of influence. In one version of the model, significant family effects on labor force experience for both men and women are found, and these effects are very dissimilar by gender. In a second version, the dissimilarity is attenuated.

The third essay studies the factor that is probably most responsible for male-female labor force differentials, the childbearing role of women. It focuses on the timing and spacing of fertility; the potential relationships between these variables and labor market outcomes are indicated in research by Bloom (1987). The broad issue it addresses is whether women choose birth intervals, or instead choose fertility control strategies entailing risks of a birth over time. The empirical results suggest that the first type of behavior is dominant. More strongly, the results show that much of the effects of demographic and other characteristics on the risk of a birth, found in "reduced form" hazard model estimates, are due to the relationship between these characteristics and expected duration.

Bibliography Citation
Neumark, David B. Gender Differentials in the Labor Force: Measurement, Causes, and Probes. Ph.D. Dissertation, Harvard University, 1987. DAI-A 49/05, p. 1234, Nov 1988..
23. Neumark, David B.
Improving School-to-work Transitions
New York, NY: Russell Sage Foundation, 2007
Cohort(s): NLSY97
Publisher: Russell Sage Foundation
Keyword(s): Immigrants; Transition, School to Work; Vocational Education; Vocational Preparation; Vocational Training

David Neumark and Donna Rothstein investigate the impact of school-to-work programs on the "forgotten half," students at the greatest risk of not attending college. Using data from the 1997 National Longitudinal Study of Youth, they find that participation by these students in programs like job shadowing, mentoring, and summer internships raise employment and college attendance rates among men and earnings among women.

Transitions to work for racial, ethnic, and immigrant groups --Participation in career and technical education and school-to-work in American high schools -- Do school-to-work programs help the "forgotten half"? -- Learning by doing career academies -- The National Academy Foundation's career academies : shaping postsecondary transitions -- Labor-market linkages among two-year college faculty and their impact on student perceptions, effort, and college persistence – Smoothing the transition from school to work : building job skills for a local labor market.

Table of Contents
Chapter 1 Improving School-to-Work Transitions: Introduction (Neumark)
Chapter 2 Transitions to Work for Racial, Ethnic, and Immigrant Groups (Reed, et al.)
Chapter 3 Participation in Career and Technical Education and School-to-Work in American High Schools (Stone and Aliaga)
Chapter 4 Do School-to-Work Programs Help the "Forgotten Half"? (Neumark and Rothstein)
Chapter 5 Learning by Doing Career Academies (Stern, et al.)
Chapter 6 The National Academy Foundation's Career Academies: Shaping Postsecondary Transitions (Orr, et al.)
Chapter 7 Labor-Market Linkages Among Two-Year College Faculty and Their Impact on Student Perceptions, Effort, and College Persistence (Person and Rosenbaum)
Chapter 8 Smoothing the Transition from School to Work: Building Job Skills for a Local Labor Market (Maxwell)

Bibliography Citation
Neumark, David B. Improving School-to-work Transitions. New York, NY: Russell Sage Foundation, 2007.
24. Neumark, David B.
Sex Discrimination and Women's Labor Market Interruptions
Unpublished paper. Philadelphia PA: Department of Economics, University of Pennsylvania, 1992
Cohort(s): Mature Women
Publisher: Department of Economics, University of Pennsylvania
Keyword(s): Discrimination, Sex; Gender Differences; Self-Reporting; Wage Growth; Wages, Women

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

The human capital explanation of sex differences in wages is that women intend to work in the labor market more intermittently than men, and therefore invest less. This lower investment leads to lower wages and wage growth. The alternative "feedback" hypothesis consistent with the same facts is that women experience labor market discrimination and respond with career interruptions and specialization in household production. This paper explores the relationship between self-reported discrimination and subsequent labor market interruptions to test this alternative hypothesis, attempting to remove biases associated with using data on self-reported discrimination. The paper provides evidence consistent with the feedback hypothesis. Working women who report experiencing discrimination are significantly more likely subsequently to change employers, and to have additional children (or a first child). On the other hand, women who report experiencing discrimination, and who consequently have a greater tendency for career interruptions of these types, do not subsequently have lower wage growth.
Bibliography Citation
Neumark, David B. "Sex Discrimination and Women's Labor Market Interruptions." Unpublished paper. Philadelphia PA: Department of Economics, University of Pennsylvania, 1992.
25. Neumark, David B.
The Effects of Minimum Wages on (Almost) Everything? A Review of Recent Evidence on Health and Related Behaviors
Labour: Review of Labour Economics and Industrial Relations published online (6 February 2024).
Also: https://doi.org/10.1111/labr.12263
Cohort(s): Children of the NLSY79, NLSY79, NLSY79 Young Adult, NLSY97
Publisher: Blackwell Publishing, Inc. => Wiley Online
Keyword(s): Alcohol Use; Cigarette Use (see Smoking); Depression (see also CESD); Diet; Exercise; Health Behaviors; Health Outcomes; Health, Mental/Psychological; Health, Physical; Minimum Wage; Obesity; Smoking (see Cigarette Use); Suicide

I review and assess the evidence on minimum wage effects on health outcomes and health-related behaviors. The evidence on physical health points in conflicting directions, leaning toward adverse effects. Research on effects of diet and obesity sometimes points to beneficial effects, whereas other evidence indicates that higher minimum wages increase smoking and drinking and reduce exercise (and possibly hygiene). In contrast, there is evidence that higher minimum wages reduce suicides, partly consistent with the evidence of positive or mixed effects on other measures of mental health/depression. Overall, policy conclusions that minimum wages improve health are unwarranted or at least premature.
Bibliography Citation
Neumark, David B. "The Effects of Minimum Wages on (Almost) Everything? A Review of Recent Evidence on Health and Related Behaviors." Labour: Review of Labour Economics and Industrial Relations published online (6 February 2024).
26. Neumark, David B.
Youth Labor Markets in the United States: Shopping Around vs. Staying Put
Review of Economics and Statistics 84,3 (August 2002): 462-482.
Also: http://www.jstor.org/stable/3211564
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Career Patterns; Endogeneity; Labor Force Participation; Labor Market Demographics; Mobility, Labor Market; Skills; Teenagers; Wages, Adult; Wages, Youth

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

The need for school-to-work programs or other means of increasing early job market stability is predicated on the view that the "chaotic" nature of youth labor markets in the United States is costly because workers drift from one job to another without developing skills, behavior, or other characteristics that in turn lead to higher adult earnings. However, there is also ample evidence that workers receive positive returns to job shopping. This paper asks whether youths in unstable jobs early in their careers suffer adverse labor market consequences as adults. Its specific contribution is to account for the endogenous determination of early job stability and adult wages as outcomes of a job search/job shopping process. Labor market conditions in the early years in the labor market are used as instrumental variables for the job stability experienced during those years. The instrumental variables estimates generally point to substantial positive effects of early job stability on adult wages in contrast to OLS estimates, which indicate little or no relationship.
Bibliography Citation
Neumark, David B. "Youth Labor Markets in the United States: Shopping Around vs. Staying Put." Review of Economics and Statistics 84,3 (August 2002): 462-482.
27. Neumark, David B.
Blackburn, McKinley L.
Are OLS Estimates of the Return to Schooling Biased Downward? Another Look
Unpublished paper. Department of Economics, University of Pennsylvania, 1992
Cohort(s): NLSY79
Publisher: Department of Economics, University of Pennsylvania
Keyword(s): Educational Returns; Endogeneity; Fertility; Schooling; Wage Rates

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

We examine evidence on omitted-ability bias in estimates of the economic return to schooling, using proxies for unobserved ability. We consider measurement error in these ability proxies and the potential endogeneity of both experience and schooling, and examine wages at labor market entry and later. Including ability proxies reduces the estimate of the return to schooling, and instrumenting for these proxies reduces the estimated return still further. Instrumenting for schooling leads to considerably higher estimates of the return to schooling, although only for wages at labor market entry. This estimated return generally reverts to being near (although still above) the OLS estimate if we allow experience to be endogenous. In contrast, for observations at least a few years after labor market entry, the evidence indicates that OLS estimates of the return to schooling that ignore omitted ability are, if anything, biased upward rather than downward.
Bibliography Citation
Neumark, David B. and McKinley L. Blackburn. "Are OLS Estimates of the Return to Schooling Biased Downward? Another Look." Unpublished paper. Department of Economics, University of Pennsylvania, 1992.
28. Neumark, David B.
Joyce, Mary
Evaluating School-to-Work Programs Using the New NLSY
Journal of Human Resources 36,4 (Fall 2001): 666-702.
Also: http://www.jstor.org/stable/3069638
Cohort(s): NLSY97
Publisher: University of Wisconsin Press
Keyword(s): College Enrollment; Employment, Youth; High School; High School Diploma; Labor Force Participation; Schooling; Transition, School to Work; Transitional Programs

The new NLSY offers researchers opportunities to analyze direct evidence on school-to-work programs, using data collected from individuals and schools. This paper focuses on the consequences of school-to-work programs for youth employment and schooling decisions while in high school, and students' subjective assessments of the likelihood of future schooling and work behavior. School-to-work participation does not appear to influence behavior likely associated with future college attendance, although it does appear to increase respondents' subjective probabilities of obtaining a high-school diploma. More in accordance with the traditional view of school-to-work programs, participation increases the perceived likelihood of future labor market activity.
Bibliography Citation
Neumark, David B. and Mary Joyce. "Evaluating School-to-Work Programs Using the New NLSY." Journal of Human Resources 36,4 (Fall 2001): 666-702.
29. Neumark, David B.
Korenman, Sanders D.
Sources of Bias in Women's Wage Equations: Results Using Sibling Data
NBER Working Paper No. 4019, National Bureau of Economic Research, March 1992.
Also: http://nber.nber.org/papers/W4019
Cohort(s): Young Women
Publisher: National Bureau of Economic Research (NBER)
Keyword(s): Educational Attainment; Endogeneity; Family Size; Gender Differences; Job Tenure; Marital Status; Racial Differences; Siblings; Simultaneity; Wage Equations; Wages, Women; Work Experience

We use data on sisters to jointly address heterogeneity bias and endogeneity bias in estimates of wage equations for women. This analysis yields evidence of biases in OLS estimates of wage equations for white and black women, some of which are detected only when these two sources of bias are addressed simultaneously. For both white and black women there is evidence of upward bias in the estimated returns to schooling. Bias-corrected estimates of the effect of marriage on wages, for white women, suggest a positive marriage premium. We also use the sibling data to identify our models, and test a number of other commonly used identifying assumptions as overidentifying restrictions.
Bibliography Citation
Neumark, David B. and Sanders D. Korenman. "Sources of Bias in Women's Wage Equations: Results Using Sibling Data." NBER Working Paper No. 4019, National Bureau of Economic Research, March 1992.
30. Neumark, David B.
McLennan, Michele
Sex Discrimination and Women's Labor Market Outcomes
Journal of Human Resources 30,4 (Fall 1995): 713-740.
Also: http://www.jstor.org/stable/146229
Cohort(s): Young Women
Publisher: University of Wisconsin Press
Keyword(s): Discrimination, Sex; Employment; Human Capital; Labor Force Participation; Labor Market Outcomes; Self-Reporting; Wage Differentials; Wage Growth; Work Experience

Using self-reported sex discrimination data from the National Longitudinal Survey of Young Women, a study found that working women who report discrimination are more likely to change employers or interrupt their labor force participation. However, women who report discrimination do not accrue less experience or have lower wage growth. (SK)
Bibliography Citation
Neumark, David B. and Michele McLennan. "Sex Discrimination and Women's Labor Market Outcomes." Journal of Human Resources 30,4 (Fall 1995): 713-740.
31. Neumark, David B.
Rothstein, Donna S.
Do School-To-Work Programs Help the "Forgotten Half"?
NBER Working Paper No. 11636, National Bureau of Economic Research, Cambridge MA, September 2005.
Also: http://www.nber.org/papers/W11636
Cohort(s): NLSY97
Publisher: National Bureau of Economic Research (NBER)
Keyword(s): Apprenticeships; Gender Differences; Program Participation/Evaluation; Training, Post-School; Transition, School to Work; Vocational Guidance; Vocational Rehabilitation

This paper tests whether school-to-work (STW) programs are particularly beneficial for those less likely to go to college in their absence--often termed the "forgotten half"' in the STW literature. The empirical analysis is based on the NLSY97, which allows us to study six types of STW programs, including job shadowing, mentoring, coop, school enterprises, tech prep, and internships/apprenticeships. For men there is quite a bit of evidence that STW program participation is particularly advantageous for those in the forgotten half. For these men, specifically, mentoring and coop programs increase post-secondary education, and coop, school enterprise, and internship/apprenticeship programs boost employment and decrease idleness after leaving high school. There is less evidence that STW programs are particularly beneficial for women in the forgotten half, although internship/apprenticeship programs do lead to positive earnings effects concentrated among these women. (Abstract by the author.)
Bibliography Citation
Neumark, David B. and Donna S. Rothstein. "Do School-To-Work Programs Help the "Forgotten Half"?" NBER Working Paper No. 11636, National Bureau of Economic Research, Cambridge MA, September 2005.
32. Neumark, David B.
Rothstein, Donna S.
School-to-Career Programs and Transitions to Employment and Higher Education
NBER Working Paper No. 10060, National Bureau of Economic Research, November 2003.
Also: http://www.nber.org/papers/w10060.pdf
Cohort(s): NLSY97
Publisher: National Bureau of Economic Research (NBER)
Keyword(s): Employment; High School Completion/Graduates; High School Curriculum; Higher Education; Transition, School to Work

The 1994 Federal School-to-Work Opportunities Act (STWOA) provided more than $1.5 billion over five years to support increased career preparation activities in the country's public schools. However, the STWOA was not re-authorized, so state governments face decisions about levels of funding support for school-to-career (STC) programs. Coupled with the availability of a new longitudinal data source with rich information on STC programs the 1997 National Longitudinal Survey of Youth (NLSY97) it is therefore an opportune time to study the effectiveness of STC programs. This paper uses the NLSY97 to assess the effects of STC programs on transitions to employment and higher education among youths leaving high school, with a focus on estimating the causal effects of this participation given possible non-random selection of youths into STC programs.
Bibliography Citation
Neumark, David B. and Donna S. Rothstein. "School-to-Career Programs and Transitions to Employment and Higher Education." NBER Working Paper No. 10060, National Bureau of Economic Research, November 2003.
33. Neumark, David B.
Rothstein, Donna S.
School-To-Career Programs and Transitions to Employment and Higher Education
Economics of Education Review 25,4 (August 2006): 374-393.
Also: http://www.sciencedirect.com/science/article/pii/S0272775706000173
Cohort(s): NLSY97
Publisher: Elsevier
Keyword(s): Employment; Higher Education; Transition, School to Work; Transitional Programs

The 1994 federal School-to-Work Opportunities Act (STWOA) provided more than $1.5 billion over 5 years to support increased career preparation activities in the country's public schools. A new longitudinal data source with rich information on school-to-career (STC) programs—the 1997 National Longitudinal Survey of Youth (NLSY97)—provides previously unparalleled opportunities to study the effectiveness of STC programs. This paper uses the NLSY97 to assess the effects of STC programs on transitions to employment and higher education among youths leaving high school, with a focus on attempting to estimate the causal effects of this participation given possible non-random selection of youths into STC programs. [ABSTRACT FROM AUTHOR; Copyright 2006 Elsevier]
Bibliography Citation
Neumark, David B. and Donna S. Rothstein. "School-To-Career Programs and Transitions to Employment and Higher Education." Economics of Education Review 25,4 (August 2006): 374-393.
34. Neumark, David B.
Taubman, Paul
Why Do Wage Profiles Slope Upwards? Tests of the General Human Capital Model
NBER Working Paper No. 4688, National Bureau of Economic Research, March 1994.
Also: http://nber.nber.org/papers/W4688
Cohort(s): NLSY79
Publisher: National Bureau of Economic Research (NBER)
Keyword(s): Human Capital Theory; Wage Growth; Wage Levels; Wage Theory; Work Experience

This paper presents tests of the Lazear contract, human capital, and forced-saving explanations of rising wage profiles. The human capital model of general investment implies that the ratio of the present value of the earnings stream of investors to that of non-investors equals one. In contrast, the Lazear model implies that the ratio of the present value of the earnings stream for those on rising profiles to those on flat profiles exceeds one, while the forced-saving model implies that this ratio is below one. One test exploits a weaker form of this implication, that those with higher rates of growth of wages, all else the same, have lower initial wages. The forced-saving hypothesis also predicts a negative correlation between wage levels and rates of growth, while the Lazear model could generate a positive correlation. The evidence points to a correlation that is either positive or zero, consistent with the Lazear model but neither the human capital nor the forced-saving model. A second test makes direct use of the implications for present values. Under a variety of assumptions regarding discount rates and wage equation specifications, the results provide no evidence consistent with the forced-saving hypothesis, unless discount rates are near zero. But the calculations are somewhat inconclusive regarding the human capital and Lazear hypotheses; each receives some support depending on the assumed discount rate and wage equation specification. Nonetheless, under a variety of assumptions this test provides evidence supporting the Lazear hypothesis.
Bibliography Citation
Neumark, David B. and Paul Taubman. "Why Do Wage Profiles Slope Upwards? Tests of the General Human Capital Model." NBER Working Paper No. 4688, National Bureau of Economic Research, March 1994.