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Source: European Economic Review
Resulting in 5 citations.
1. Bowlus, Audra Jann
Liu, Huju
The Contributions of Search and Human Capital to Earnings Growth over the Life Cycle
European Economic Review 64 (November 2013): 305-331.
Also: http://www.sciencedirect.com/science/article/pii/S0014292113001293
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Earnings; Human Capital; Job Search; Life Cycle Research; Survey of Income and Program Participation (SIPP); Wage Growth

This paper presents and estimates a unified model where both human capital investment and job search are endogenized. This unification enables us to quantify the relative contributions of each mechanism to life cycle earnings growth, while investigating potential interactions between human capital investment and job search. Within the unified framework, the expectation of rising rental rates of human capital through job search gives workers more incentive to invest in human capital. In addition, unemployed workers reduce their reservation rental rates and increase their search effort to leave unemployment quickly to take advantage of human capital accumulation on the job. The results show both forces are important for earnings growth and the interactions are substantial: human capital accumulation accounts for 50% of total earnings growth, job search accounts for 20%, and the remaining 30% is due to the interactions of the two.
Bibliography Citation
Bowlus, Audra Jann and Huju Liu. "The Contributions of Search and Human Capital to Earnings Growth over the Life Cycle." European Economic Review 64 (November 2013): 305-331.
2. Demiralp, Berna
Occupational Self-selection in a Labor Market with Moral Hazard
European Economic Review 55,4 (May 2011): 497-519.
Also: http://www.sciencedirect.com/science/article/pii/S0014292110000735
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Human Capital; Modeling, Hazard/Event History/Survival/Duration; Occupational Choice; Wage Growth; Wage Rates

This paper studies the determinants and implications of self-selection when firms imperfectly observe worker effort. The effects of the resulting moral hazard problem on the self-selection mechanism are analyzed in a model in which workers simultaneously choose an employment sector and an effort level. The implications of the model reveal that in the presence of moral hazard, workers' effort decisions become an additional mechanism determining the pattern of selection into sectors. Workers' sector-specific endowments impact sectoral allocation through their effect on workers' comparative advantage as well as their effect on workers' shirking propensity. The model is then used in an empirical application that analyzes workers' self-selection into white collar and blue collar occupations. The estimation results, based on data from the National Longitudinal Survey of Youth, suggest that workers' occupational self-selection leads to higher wages and lower dismissal rates in both occupations, compared to an economy in which workers are randomly assigned to each occupation. The difference in dismissal rates between the two occupations is driven by the higher expected productivity in the white collar sector. The positive effects of occupational sorting diminish as the labor market becomes increasingly characterized by moral hazard. Results also suggest that human capital investments in skills that are most relevant to blue collar jobs may generate higher wages and lower dismissal rates in both white collar and blue collar occupations. [Copyright © Elsevier]

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Bibliography Citation
Demiralp, Berna. "Occupational Self-selection in a Labor Market with Moral Hazard." European Economic Review 55,4 (May 2011): 497-519.
3. Erosa, Andres
Fuster, Luisa
Restuccia, Diego
A Quantitative Theory of the Gender Gap in Wages
European Economic Review 85 (June 2016): 165-187.
Also: http://www.sciencedirect.com/science/article/pii/S001429211630023X
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Children; Gender Differences; Human Capital; Wage Gap; Work Hours

This paper measures how much of the gender wage gap over the life cycle is due to the fact that working hours are lower for women than for men. We build a quantitative theory of fertility, labor supply, and human capital accumulation decisions to measure gender differences in human capital investments over the life cycle. We assume that there are no gender differences in the human capital technology and calibrate this technology using wage-age profiles of men. The calibration of females assumes that children involves a forced reduction in hours of work that falls on females rather than on males and that there is an exogenous gender gap in hours of work. We find that our theory accounts for all of the increase in the gender wage gap over the life cycle in the NLSY79 data. The impact of children on the labor supply of females accounts for 56% and 45% of the increase in the gender wage gap over the life cycle among non-college and college females, while the rest is due to the exogenous gender differences in hours of work.
Bibliography Citation
Erosa, Andres, Luisa Fuster and Diego Restuccia. "A Quantitative Theory of the Gender Gap in Wages." European Economic Review 85 (June 2016): 165-187.
4. Klevmarken, N. Anders
Introduction: Panel Studies: What Can We Learn from Them?
European Economic Review 33, 2-3 (March 1989): 523-529.
Also: http://www.sciencedirect.com/science/article/pii/0014292189901311
Cohort(s): NLS General
Publisher: Elsevier
Keyword(s): Behavior; Longitudinal Surveys; Panel Study of Income Dynamics (PSID)

Two well-known longitudinal studies are the National Surveys of Labor Market Experience (NLS) and the Panel Study of Income Dynamics (PSID). Both were begun in the 1960s and served as models for some of the European longitudinal studies. Panel data have various benefits and limitations. There are important problems that demand longitudinal data or that could be investigated only under very restrictive assumptions using other types of data. Experience with trend dominated and multicollinear time-series data show how hard it is to discriminate between different hypotheses. If longitudinal data can be collected for long periods, the richer variability hopefully will provide more informative data. With panel surveys, an extensive toolkit of statistical and econometric methods has been developed. However, problems arise due to distortions from measurement errors that plague the analysis of change. Selectivity is another problem. Despite these problems, panel data have contributed to an improved knowledge of economic behavior. [ABI/INFORM]
Bibliography Citation
Klevmarken, N. Anders. "Introduction: Panel Studies: What Can We Learn from Them?" European Economic Review 33, 2-3 (March 1989): 523-529.
5. Merlo, Antonio
Wolpin, Kenneth I.
The Transition from School to Jail: Youth Crime and High School Completion Among Black Males
European Economic Review 79 (October 2015): 234-251.
Also: http://www.sciencedirect.com/science/article/pii/S0014292115001130
Cohort(s): NLSY97
Publisher: Elsevier
Keyword(s): Arrests; Black Youth; Crime; Delinquency/Gang Activity; Employment; High School Completion/Graduates; Incarceration/Jail

In this paper, we study the relationship among schooling, youth employment and youth crime. The framework, a multinomial discrete choice vector autoregression, provides a comprehensive analysis of the dynamic interactions among a youth's schooling, work and crime decisions and arrest and incarceration outcomes. We allow for observable initial conditions, unobserved heterogeneity, measurement error and missing data. We use data from the NLSY97 on black male youths starting from age 14. The estimates indicate important roles both for heterogeneity in initial conditions and for stochastic events that arise during one's youth in determining outcomes as young adults.
Bibliography Citation
Merlo, Antonio and Kenneth I. Wolpin. "The Transition from School to Jail: Youth Crime and High School Completion Among Black Males." European Economic Review 79 (October 2015): 234-251.