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Source: Journal of Applied Econometrics
Resulting in 14 citations.
1. Belzil, Christian
Hansen, Jörgen
The Evolution of the US Family Income‐Schooling Relationship and Educational Selectivity
Journal of Applied Econometrics published online (9 June 2020): DOI: 10.1002/jae.2785.
Also: https://onlinelibrary.wiley.com/doi/10.1002/jae.2785
Cohort(s): NLSY79, NLSY97
Publisher: Wiley Online
Keyword(s): Armed Forces Qualifications Test (AFQT); Educational Attainment; Family Income; Noncognitive Skills; Schooling

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

We estimate a dynamic model of schooling on two cohorts of the NLSY and find that, contrary to conventional wisdom, the effects of real (as opposed to relative) family income on education have practically vanished between the early 1980's and the early 2000's. After conditioning on a cognitive ability measure (AFQT), family background variables and unobserved heterogeneity (allowed to be correlated with observed characteristics), income effects vary substantially with age and have lost between 30% and 80% of their importance on age‐specific grade progression probabilities. After conditioning on observed and unobserved characteristics, a $300,000 differential in family income generated more than 2 years of education in the early 1980's, but only one year in the early 2000's. Put differently, a $70,000 differential raised college participation by 10 percentage points in the early 1980's. In the early 2000's, a $330,000 income differential had the same impact. The effects of AFQT scores have lost about 50% of their magnitude but did not vanish. Over the same period, the relative importance of unobserved heterogeneity has expanded significantly, thereby pointing toward the emergence of a new form of educational selectivity reserving an increasing role to non‐cognitive abilities and/or preferences and a lesser role to cognitive ability and family income.
Bibliography Citation
Belzil, Christian and Jörgen Hansen. "The Evolution of the US Family Income‐Schooling Relationship and Educational Selectivity." Journal of Applied Econometrics published online (9 June 2020): DOI: 10.1002/jae.2785.
2. Chen, Stacey H.
Khan, Shakeeb
Semi-Parametric Estimation of Program Impacts on Dispersion of Potential Wages
Journal of Applied Econometrics 29,6 (September/October 2014): 901-919.
Also: http://onlinelibrary.wiley.com/doi/10.1002/jae.2351/abstract
Cohort(s): Young Men
Publisher: Wiley Online
Keyword(s): College Education; Modeling, Instrumental Variables; Statistical Analysis; Wages

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

We propose the use of instrumental variables and pairwise matching to identify the average treatment effect on variance in potential outcomes. We show that identifying and estimating program impact on dispersion of potential outcomes in an endogenous-switching model is possible, without using the identification-at-infinity argument, if we impose semi-parametric conditions or shape restrictions on the error structure. In the presence of a multi-valued or continuously distributed instrument, we recommend the pairwise-matching method under a set of symmetry conditions. Simulations and an empirical example show that the matching method is much more precise than the instrumental-variable approach. Copyright © 2013 John Wiley & Sons, Ltd.
Bibliography Citation
Chen, Stacey H. and Shakeeb Khan. "Semi-Parametric Estimation of Program Impacts on Dispersion of Potential Wages." Journal of Applied Econometrics 29,6 (September/October 2014): 901-919.
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. Gladden, Tricia Lynn
Taber, Christopher Robert
The Relationship Between Wage Growth and Wage Levels
Journal of Applied Econometrics 24,6 (September-October 2009): 914-932.
Also: http://onlinelibrary.wiley.com/doi/10.1002/jae.1072/full
Cohort(s): NLSY79
Publisher: Wiley Online
Keyword(s): Wage Growth; Wage Levels; Wages; Work Experience

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

We estimate the covariance between the permanent component of wages and a random coefficient on experience in models both with potential experience and with actual experience. Actual experience is allowed to be arbitrarily correlated with both the permanent component of wages and the random component on experience. We find no evidence that workers of higher ability experience faster wage growth. Our point estimates suggest that a worker with a one standard deviation higher level of permanent ability would have a return to annual potential experience that is 0.61 of a percentage point lower. The analogous point estimate for actual experience is 0.87 of a point lower. Contrary to the popular perception, wage growth among low-skill workers appears to be at least as high as that for a medium-skilled worker.
Copyright © 2009 John Wiley & Sons, Ltd.
Bibliography Citation
Gladden, Tricia Lynn and Christopher Robert Taber. "The Relationship Between Wage Growth and Wage Levels." Journal of Applied Econometrics 24,6 (September-October 2009): 914-932.
5. Huang, Fali
Lee, Myoung-Jae
Dynamic Treatment Effect Analysis of TV Effects on Child Cognitive Development
Journal of Applied Econometrics 25,3 (2010): 392-419.
Also: http://onlinelibrary.wiley.com/doi/10.1002/jae.1165/abstract
Cohort(s): Children of the NLSY79
Publisher: Wiley Online
Keyword(s): Cognitive Development; Endogeneity; Home Observation for Measurement of Environment (HOME); Peabody Individual Achievement Test (PIAT- Math); Peabody Individual Achievement Test (PIAT- Reading); School Characteristics/Rating/Safety; Television Viewing

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

We investigate whether TV watching at ages 6–7 and 8–9 affects cognitive development measured by math and reading scores at ages 8–9, using a rich childhood longitudinal sample from NLSY79. Dynamic panel data models are estimated to handle the unobserved child-specific factor, endogeneity of TV watching, and dynamic nature of the causal relation. A special emphasis is placed on the last aspect, where TV watching affects cognitive development, which in turn affects future TV watching. When this feedback occurs, it is not straightforward to identify and estimate the TV effect. We develop a two-stage estimation method which can deal with the feedback feature; we also apply the 'standard' econometric panel data approaches. Overall, for math score at ages 8–9, we find that watching TV during ages 6–7 and 8–9 has a negative total effect, mostly due to a large negative effect of TV watching at the younger ages 6–7. For reading score, there is evidence that watching no more than 2 hours of TV per day has a positive effect, whereas the effect is negative outside this range. In both cases, however, the effect magnitudes are economically small.
Bibliography Citation
Huang, Fali and Myoung-Jae Lee. "Dynamic Treatment Effect Analysis of TV Effects on Child Cognitive Development." Journal of Applied Econometrics 25,3 (2010): 392-419.
6. Kejriwal, Mohitosh
Li, Xiaoxiao
Nguyen, Linh
Totty, Evan
The Efficacy of Ability Proxies for Estimating the Returns to Schooling: A Factor Model-Based Evaluation
Journal of Applied Econometrics published online (16 October 2023).
Also: https://doi.org/10.1002/jae.3011
Cohort(s): NLSY79
Publisher: Wiley Online
Keyword(s): Bias Decomposition; Cognitive Skills; Earnings; Education; Factor Model; Interactive Fixed Effects; Latent Skills; Noncognitive Skills; Schooling

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

A common approach to addressing ability bias is to augment the earnings-schooling regression with proxies for cognitive and non-cognitive skills. We evaluate this approach using a factor model framework, which allows consistent estimation of the returns to schooling without relying on proxies. The factor model estimators may be viewed as implicitly estimating proxy measurement error and/or accounting for omitted dimensions of ability. A bias decomposition quantifies the contribution of the proxies while the estimated latent skills are used to construct direct tests for their viability. Both sets of results confirm the inadequacy of the proxies in capturing the latent skills.
Bibliography Citation
Kejriwal, Mohitosh, Xiaoxiao Li, Linh Nguyen and Evan Totty. "The Efficacy of Ability Proxies for Estimating the Returns to Schooling: A Factor Model-Based Evaluation." Journal of Applied Econometrics published online (16 October 2023).
7. Kluve, Jochen
Augurzky, Boris
Assessing the Performance of Matching Algorithms when Selection into Treatment is Strong
Journal of Applied Econometrics 22,3 (2007): 533-557.
Also: http://onlinelibrary.wiley.com/doi/10.1002/jae.919/abstract
Cohort(s): NLSY79
Publisher: Wiley Online
Keyword(s): College Education; Earnings; Heterogeneity

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

This paper investigates the method of matching regarding two crucial implementation choices: the distance measure and the type of algorithm. We implement optimal full matching—a fully efficient algorithm—and present a framework for statistical inference. The implementation uses data from the NLSY79 to study the effect of college education on earnings. We find that decisions regarding the matching algorithm depend on the structure of the data: In the case of strong selection into treatment and treatment effect heterogeneity a full matching seems preferable. If heterogeneity is weak, pair matching suffices. Copyright © 2007 John Wiley & Sons, Ltd.
Bibliography Citation
Kluve, Jochen and Boris Augurzky. "Assessing the Performance of Matching Algorithms when Selection into Treatment is Strong." Journal of Applied Econometrics 22,3 (2007): 533-557.
8. Koop, Gary
Tobias, Justin L.
Learning about Heterogeneity in Returns to Schooling
Journal of Applied Econometrics 19,7 (November-December 2004): 827-849.
Also: http://www3.interscience.wiley.com/cgi-bin/fulltext/107636928/HTMLSTART
Cohort(s): NLSY79
Publisher: Wiley Online
Keyword(s): Bayesian; Educational Returns; Heterogeneity

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

Using data from the National Longitudinal Survey of Youth (NLSY) we introduce and estimate various Bayesian hierarchical models that investigate the nature of unobserved heterogeneity in returns to schooling. We consider a variety of possible forms for the heterogeneity, some motivated by previous theoretical and empirical work and some new ones, and let the data decide among the competing specifications. Empirical results indicate that heterogeneity is present in returns to education. Furthermore, we find strong evidence that the heterogeneity follows a continuous rather than a discrete distribution, and that bivariate normality provides a very reasonable description of individual-level heterogeneity in intercepts and returns to schooling. Copyright (C) 2004 John Wiley Sons, Ltd.
Bibliography Citation
Koop, Gary and Justin L. Tobias. "Learning about Heterogeneity in Returns to Schooling." Journal of Applied Econometrics 19,7 (November-December 2004): 827-849.
9. Li, Tong
Zheng, Xiaoyong
Semiparametric Bayesian Inference for Dynamic Tobit Panel Data Models with Unobserved Heterogeneity
Journal of Applied Econometrics 23,6 (September 2008): 699-728.
Also: http://onlinelibrary.wiley.com/doi/10.1002/jae.1017/abstract
Cohort(s): NLSY79
Publisher: Wiley Online
Keyword(s): Bayesian; Data Analysis; Heterogeneity; Labor Supply; Markov chain / Markov model; Monte Carlo; Statistical Analysis; Women

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

This paper develops semiparametric Bayesian methods for inference of dynamic Tobit panel data models. Our approach requires that the conditional mean dependence of the unobserved heterogeneity on the initial conditions and the strictly exogenous variables be specified. Important quantities of economic interest such as the average partial effect and average transition probabilities can be readily obtained as a by-product of the Markov chain Monte Carlo run. We apply our method to study female labor supply using a panel data set from the National Longitudinal Survey of Youth 1979. Copyright (c) 2008 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]
Bibliography Citation
Li, Tong and Xiaoyong Zheng. "Semiparametric Bayesian Inference for Dynamic Tobit Panel Data Models with Unobserved Heterogeneity." Journal of Applied Econometrics 23,6 (September 2008): 699-728.
10. Mills, Jeffrey A.
Zandvakili, Sourushe
Statistical Inference via Bootstrapping for Measures of Inequality
Journal of Applied Econometrics 12,2 (March-April 1997): 133-150.
Also: http://onlinelibrary.wiley.com/doi/10.1002/%28SICI%291099-1255%28199703%2912:2%3C133::AID-JAE433%3E3.0.CO;2-H/abstract
Cohort(s): NLSY79
Publisher: Wiley Online
Keyword(s): Age and Ageing; Income; Panel Study of Income Dynamics (PSID); Taxes

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

The use of bootstrap methods to compute interval estimates is considered and hypothesis tests for decomposable measures of economic inequality are performed. Two applications of this approach, using the Gini coefficient and Theil's (1967) entropy measures of inequality, are provided. The first application employs pre- and post-tax aggregate state income data, constructed from the Panel Study of Income Dynamics. It is found that although casual observation of the inequality measures suggests that the post-tax distribution of income is less equal among states than pre-tax income, none of these observed differences are statistically significant at the 10% level. The second application uses the National Longitudinal Survey of Youth data to study youth inequality. It is found that youth inequality decreases as the cohort ages, but between age-group inequality has increased in the latter half of the 1980s. The results suggest that: 1. statistical inference is essential even when large samples are available, and 2. the bootstrap procedure appears to perform well in this setting.
Bibliography Citation
Mills, Jeffrey A. and Sourushe Zandvakili. "Statistical Inference via Bootstrapping for Measures of Inequality." Journal of Applied Econometrics 12,2 (March-April 1997): 133-150.
11. Richey, Jeremiah Alexander
Rosburg, Alicia
Decomposing Economic Mobility Transition Matrices
Journal of Applied Econometrics 33,1 (January/February 2018): 91-108.
Also: http://onlinelibrary.wiley.com/doi/10.1002/jae.2578/abstract
Cohort(s): NLSY79
Publisher: Wiley Online
Keyword(s): Family Income; Geocoded Data; Income Distribution; Intergenerational Patterns/Transmission; Mobility, Economic; Parental Influences

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

We present a decomposition method for transition matrices to identify forces driving the persistence of economic status across generations. The method decomposes differences between an estimated transition matrix and a benchmark transition matrix into portions attributable to differences in characteristics between individuals from different households (a composition effect) and portions attributable to differing returns to these characteristics (a structure effect). A detailed decomposition based on copula theory further decomposes the composition effect into portions attributable to specific characteristics and their interactions. To examine potential drivers of economic persistence in the USA, we apply the method to white males from the 1979 US National Longitudinal Survey of Youth. Depending on the transition matrix entry of interest, differing characteristics between sons from different households explain between 40% and 70% of observed income persistence, with differing returns for these characteristics explaining the remaining gap. Further, detailed decompositions reveal significant heterogeneity in the role played by specific characteristics (e.g., education) across the income distribution.
Bibliography Citation
Richey, Jeremiah Alexander and Alicia Rosburg. "Decomposing Economic Mobility Transition Matrices." Journal of Applied Econometrics 33,1 (January/February 2018): 91-108.
12. Semykina, Anastasia
Self-employment among Women: Do Children Matter More than We Previously Thought?
Journal of Applied Econometrics 33,3 (April/May 2018): 416-434.
Also: https://onlinelibrary.wiley.com/doi/abs/10.1002/jae.2596
Cohort(s): NLSY79
Publisher: Wiley Online
Keyword(s): Entrepreneurship; Fertility; Maternal Employment; Self-Employed Workers

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

This paper presents an estimation approach that addresses the problems of sample selection and endogeneity of fertility decisions when estimating the effect of young children on women's self-employment. Using data from the National Longitudinal Survey of Youth 1979, 1982-2006, we find that ignoring self-selection and endogeneity leads to underestimating the effect of young children. Once both sources of biases are accounted for, the estimated effect of young children roughly triples when compared to uncorrected results. This finding is robust to several changes in the specification and to the use of a different dataset.
Bibliography Citation
Semykina, Anastasia. "Self-employment among Women: Do Children Matter More than We Previously Thought?" Journal of Applied Econometrics 33,3 (April/May 2018): 416-434.
13. Tobias, Justin L.
Li, Mingliang
A Finite-Sample Hierarchical Analysis of Wage Variation Across Public High Schools: Evidence from the NLSY and High School and Beyond
Journal of Applied Econometrics 18,3 (May/June 2003):315-347.
Also: http://onlinelibrary.wiley.com/doi/10.1002/jae.696/pdf
Cohort(s): NLSY79
Publisher: Wiley Online
Keyword(s): Earnings; Educational Returns; Family Income; High School; High School and Beyond (HSB); Wage Differentials; Wage Dynamics

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

Using data from both the National Longitudinal Survey of Youth (NLSY) and High School and Beyond (HSB), we investigate if public high schools differ in the "production" of earnings and if rates of return to future education vary with public high school attended. Given evidence of such variation, we seek to explain why schools differ by proposing that standard measures of school "quality" as well as proxies for community characteristics can explain the observed parameter variation across high schools. Since analysis of widely-used data sets such as the NLSY and HSB necessarily involves observing only a few students per high school, we employ an exact finite sample estimation approach. We find evidence that schools differ and that most proxies for high school quality play modest roles in explaining the variation in outcomes across public high schools. We do find evidence that the education of the teachers in the high school as well as the average family income associated with students in the school play a small part in explaining variation at the school-level. [ABSTRACT FROM AUTHOR]
Bibliography Citation
Tobias, Justin L. and Mingliang Li. "A Finite-Sample Hierarchical Analysis of Wage Variation Across Public High Schools: Evidence from the NLSY and High School and Beyond." Journal of Applied Econometrics 18,3 (May/June 2003):315-347.
14. Williams, Benjamin
Controlling for Ability Using Test Scores
Journal of Applied Econometrics 34,4 (June/July 2019): 547-565.
Also: https://onlinelibrary.wiley.com/doi/10.1002/jae.2683
Cohort(s): NLSY79
Publisher: Wiley Online
Keyword(s): Monte Carlo; Test Scores/Test theory/IRT

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

This paper proposes a semiparametric method to control for ability using standardized test scores, or other item response assessments, in a regression model. The proposed method is based on a model in which the parameter of interest is invariant to monotonic transformations of ability. I show that the estimator is consistent as both the number of observations and the number of items on the test grow to infinity. I also derive conditions under which this estimator is root‐n consistent and asymptotically normal. The proposed method is easy to implement, does not impose a parametric item response model, and does not require item level data. I demonstrate the finite sample performance in a Monte Carlo study and implement the procedure for a wage regression using data from the NLSY1979.
Bibliography Citation
Williams, Benjamin. "Controlling for Ability Using Test Scores." Journal of Applied Econometrics 34,4 (June/July 2019): 547-565.