Search Results

Source: Journal of Political Economy
Resulting in 44 citations.
1. Bartel, Ann P.
Sicherman, Nachum
Technological Change and Wages: An Interindustry Analysis
Journal of Political Economy 107,2 (April 1999): 285-325.
Also: http://www.jstor.org/stable/10.1086/250061
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): Education; Industrial Classification; Technology/Technological Changes; Wages

Previous research has shown that wages in industries characterized by higher rates of technological change are higher. In addition, there is evidence that skill-biased technological change is responsible for the dramatic increase in the earnings of more educated workers relative to less educated workers that took place during the 1980s. In this paper, we match a variety of industry-level measures of technological change to a panel of young workers, observed between 1979 and 1993 (NLSY), and examine the role played by observed and unobserved heterogeneity in explaining the positive relationships between technological change and wages and between technological change and the education premium. We find that the wage premium associated with technological change is primarily due to the sorting of more able workers into those industries, and this premium is unrelated to any sorting based on gender or race. In addition, the education premium associated with technological change is the result of a greater demand for the innate ability or other unobserved characteristics of more educated workers.
Bibliography Citation
Bartel, Ann P. and Nachum Sicherman. "Technological Change and Wages: An Interindustry Analysis." Journal of Political Economy 107,2 (April 1999): 285-325.
2. Bedard, Kelly
Human Capital versus Signaling Models: University Access and High School Dropouts
Journal of Political Economy 109,4 (August 2001): 749-775.
Also: http://www.jstor.org/stable/10.1086/322089
Cohort(s): Young Men, Young Women
Publisher: University of Chicago Press
Keyword(s): College Enrollment; Colleges; Education; Geographical Variation; High School Dropouts; Human Capital; Human Capital Theory; Labor Market Studies, Geographic

Under the educational sorting hypothesis, an environment in which some individuals are constrained from entering university will be characterized by increased pooling at the high school graduation level, as compared to an environment with greater university access. This results because some potential high school dropouts and university enrollees choose the high school graduate designation in order to take advantage of high-ability individuals who are constrained from entering university. This is in stark contrast to human capital theory, which predicts higher university enrollment but identical high school dropout rates in regions with greater university access. I test the contradictory high school dropout predictions of the human capital and signaling models using NLSYM and NLSYW education data from the late 1960s and early 1970s. I find that labor markets that contain universities have higher high school dropout rates. This result is consistent with a signaling model and inconsistent with a pure human capital model.
Bibliography Citation
Bedard, Kelly. "Human Capital versus Signaling Models: University Access and High School Dropouts." Journal of Political Economy 109,4 (August 2001): 749-775.
3. Bils, Mark J.
Real Wages over the Business Cycle: Evidence from Panel Data
Journal of Political Economy 93,4 (August 1985): 666-689.
Also: http://www.jstor.org/stable/1832132
Cohort(s): Young Men
Publisher: University of Chicago Press
Keyword(s): Behavior; Business Cycles; Unemployment Rate; Wages

The cyclical behavior of real wages has been the subject of numerous studies, most of which used aggregated time-series data. In contrast, the present analysis employs disaggregated, panel data from a pooled sample of the Young Men. Using these data, a pooled time-series, cross-sectional model is estimated in which changes in real wages are related to changes in the national unemployment rate. Analysis reveals real wages to be very procyclical. A percentage point decline in the unemployment rate is associated with a rise in real wages of 1.5%- 2%. Averaging over a cyclically changing labor force is found to countercyclically bias the real wage, although the effect is not large. Disaggregation also shows that real wages behave very differently across individuals.
Bibliography Citation
Bils, Mark J. "Real Wages over the Business Cycle: Evidence from Panel Data." Journal of Political Economy 93,4 (August 1985): 666-689.
4. Brown, Charles
A Model of Optimal Human-Capital Accumulation and the Wages of Young High School Graduates
Journal of Political Economy 84,2 (April 1976): 299-316.
Also: http://www.jstor.org/stable/1831902
Cohort(s): Young Men
Publisher: University of Chicago Press
Keyword(s): High School Completion/Graduates; Life Cycle Research; Schooling; Wages, Youth

This paper estimates the parameters of Ben-Porath's model of optimal accumulation of human capital over the life cycle. A discrete-time version of the model is presented, and previous estimates of its parameters are considered. Using longitudinal data on wages of young white high school graduates, these parameters are reestimated. The point estimates of the two key parameters (the discount rate and the elasticity of investment costs with respect to investments) are implausible on a priori grounds, confirming the essentially negative conclusions of earlier studies.
Bibliography Citation
Brown, Charles. "A Model of Optimal Human-Capital Accumulation and the Wages of Young High School Graduates." Journal of Political Economy 84,2 (April 1976): 299-316.
5. Cameron, Stephen V.
Heckman, James J.
The Dynamics of Educational Attainment for Black, Hispanic, and White Males
Journal of Political Economy 109,3 (June 2001): 455-499.
Also: http://www.jstor.org/stable/10.1086/321014
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): College Education; College Enrollment; Educational Attainment; Ethnic Differences; Family Background; Family Environment; Hispanics; Income; Parental Influences; Racial Differences; Tuition

This paper estimates a dynamic model of schooling attainment to investigate the sources of racial and ethnic disparity in college attendance. Parental income in the child's adolescent years is a strong predictor of this disparity. This is widely interpreted to mean that credit constraints facing families during the college-going years are important. Using NLSY data, we find that it is the long-run factors associated with parental background and family environment, and not credit constraints facing prospective students in the college-going years, that account for most of the racial-ethnic college-going differential. Policies aimed at improving these long-term family and environmental factors are more likely to be successful in eliminating college attendance differentials than short-term tuition reduction and family income supplement policies aimed at families with college age children.
Bibliography Citation
Cameron, Stephen V. and James J. Heckman. "The Dynamics of Educational Attainment for Black, Hispanic, and White Males ." Journal of Political Economy 109,3 (June 2001): 455-499.
6. Cameron, Stephen V.
Taber, Christopher Robert
Estimation of Educational Borrowing Constraints Using Returns to Schooling
Journal of Political Economy 112,1,Part_1 (February 2004): 132-182.
Also: http://www.jstor.org/stable/10.1086/379937
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): College Education; Education; Educational Costs; Educational Returns

This paper measures the importance of borrowing constraints on education decisions. Empirical identification of borrowing constraints is secured by the economic prediction that opportunity costs and direct costs of schooling affect borrowing-constrained and unconstrained persons differently. Direct costs need to be financed during school and impose a larger burden on credit constrained students. By contrast, gross forgone earnings do not have to be financed. We explore the implications of this idea using four methodologies: schooling attainment models, instrumental variable wage regressions, and two structural economic models that integrate both schooling choices and schooling returns into a unified framework. None of the methods produces evidence that borrowing constraints generate inefficiencies in the market for schooling in the current policy environment. We conclude that, on the margin, additional policies aimed at improving credit access will have little impact on schooling attainment.
Bibliography Citation
Cameron, Stephen V. and Christopher Robert Taber. "Estimation of Educational Borrowing Constraints Using Returns to Schooling." Journal of Political Economy 112,1,Part_1 (February 2004): 132-182.
7. Case, Anne
Paxson, Christina
Stature and Status: Height, Ability, and Labor Market Outcomes
Journal of Political Economy 116,3 (June 2008):499-532.
Also: http://www.jstor.org/stable/10.1086/589524
Cohort(s): Children of the NLSY79, NLSY79
Publisher: University of Chicago Press
Keyword(s): Armed Forces Qualifications Test (AFQT); British Cohort Study (BCS); Cognitive Ability; Cross-national Analysis; Digit Span (also see Memory for Digit Span - WISC); Fragile Families and Child Wellbeing Study; Genetics; Height; Labor Market Outcomes; Modeling, Fixed Effects; NCDS - National Child Development Study (British); Peabody Individual Achievement Test (PIAT- Math); Peabody Individual Achievement Test (PIAT- Reading); Peabody Picture Vocabulary Test (PPVT); Racial Differences; Siblings; Test Scores/Test theory/IRT

The well-known association between height and earnings is often thought to reflect factors such as self-esteem, social dominance, and discrimination. We offer a simpler explanation: height is positively associated with cognitive ability, which is rewarded in the labor market. Using data from the United States and the United Kingdom, we show that taller children have higher average cognitive test scores and that these test scores explain a large portion of the height premium in earnings. Children who have higher test scores also experience earlier adolescent growth spurts, so that height in adolescence serves as a marker of cognitive ability.
Bibliography Citation
Case, Anne and Christina Paxson. "Stature and Status: Height, Ability, and Labor Market Outcomes." Journal of Political Economy 116,3 (June 2008):499-532.
8. Currie, Janet
Gruber, Jonathan
Saving Babies: The Efficacy and Cost of Recent Changes in the Medicaid Eligibility of Pregnant Women
Journal of Political Economy 104,6 (December 1996): 1263-1296.
Also: http://www.jstor.org/stable/2138939
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): Aid for Families with Dependent Children (AFDC); Armed Forces Qualifications Test (AFQT); Birth Outcomes; Birthweight; Current Population Survey (CPS) / CPS-Fertility Supplement; Education; Family Income; Health Care; Health Reform; Infants; Medicaid/Medicare; Mortality; Poverty; Pre-natal Care/Exposure; Pre/post Natal Behavior; Pre/post Natal Health Care; Pregnancy and Pregnancy Outcomes; Welfare

A key question for health care reform in the United States is whether expanded health insurance eligibility will lead to improvements in health outcomes. We address this question in the context of the dramatic changes in Medicaid eligibility for pregnant women that took place between 1979 and 1992. We build a detailed simulation model of each state's Medicaid policy during this era and use this model to estimate (1) the effect of changes in the rules on the fraction of women eligible for Medicaid coverage in the event of pregnancy and (2) the effect of Medicaid eligibility changes on birth outcomes in aggregate Vital Statistics data. We have three main findings. First, the changes did dramatically increase the Medicaid eligibility of pregnant women, but did so at quite differential rates across the states. Second, the changes lowered the incidence of infant mortality and low birth weight; we estimate that the 30-percentage-point increase in eligibility among 15-44- year-old women was associated with a decrease in infant mortality of 8.5 percent. Third, earlier, targeted changes in Medicaid eligibility, which were restricted to specific low-income groups, had much larger effects on birth outcomes than broader expansions of eligibility to women with higher income levels. We suggest that the source of this difference is the much lower take-up of Medicaid coverage by individuals who became eligible under the broader eligibility changes. Even the targeted changes cost the Medicaid program $840,000 per infant life saved, however, raising important issues of cost effectiveness.
Bibliography Citation
Currie, Janet and Jonathan Gruber. "Saving Babies: The Efficacy and Cost of Recent Changes in the Medicaid Eligibility of Pregnant Women." Journal of Political Economy 104,6 (December 1996): 1263-1296.
9. Dickert-Conlin, Stacy
Chandra, Amitabh
Taxes and the Timing of Births
Journal of Political Economy 107,1 (February 1999): 161-177.
Also: http://www.jstor.org/stable/10.1086/250054
Cohort(s): Children of the NLSY79, NLSY79
Publisher: University of Chicago Press
Keyword(s): Childbearing; Fertility; Taxes

Because the tax savings of having a child are realized only if the birth takes place before midnight, January 1, the incentives for the "marginal" birth are substantial. Using a sample of children from the National Longitudinal Survey of Youth we find that the probability that a child is born in the last week of December, rather than the first week of January, is positively correlated with tax benefits. We estimate that increasing the tax benefit of having a child by $500 raises the probability of having the child in the last week of December by 26.9 percent. Copyright by the University of Chicago. All rights reserved.
Bibliography Citation
Dickert-Conlin, Stacy and Amitabh Chandra. "Taxes and the Timing of Births." Journal of Political Economy 107,1 (February 1999): 161-177.
10. Eisenhauer, Philipp
Heckman, James J.
Vytlacil, Edward
The Generalized Roy Model and the Cost-Benefit Analysis of Social Programs
Journal of Political Economy 123,2 (April 2015): 413-443.
Also: http://www.jstor.org/stable/10.1086/679509
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): College Education; Educational Returns; Heterogeneity; Modeling

The literature on treatment effects focuses on gross benefits from program participation. We extend this literature by developing conditions under which it is possible to identify parameters measuring the cost and net surplus from program participation. Using the generalized Roy model, we nonparametrically identify the cost, benefit, and net surplus of selection into treatment without requiring the analyst to have direct information on costs. We apply our methodology to estimate the gross benefit and net surplus of attending college.
Bibliography Citation
Eisenhauer, Philipp, James J. Heckman and Edward Vytlacil. "The Generalized Roy Model and the Cost-Benefit Analysis of Social Programs." Journal of Political Economy 123,2 (April 2015): 413-443.
11. Evans, David S.
Jovanovic, Boyan
An Estimated Model of Entrepreneurial Choice under Liquidity Constraints
Journal of Political Economy 97,4 (August 1989): 808-827.
Also: http://www.jstor.org/stable/1832192
Cohort(s): Young Men
Publisher: University of Chicago Press
Keyword(s): Assets; Behavior; Income; Self-Employed Workers

This paper develops and estimates a behavioral model of entrepreneurial choice under liquidity constraints. Using data from the NLS of Young Men, it was found that liquidity constraints bind and prospective entrepreneurs must bear most of the risk inherent in their venture. Whether people are more inclined to become entrepreneurs. Capital is essential for starting a business and liquidity constraints tend to exclude those with insufficient funds.
Bibliography Citation
Evans, David S. and Boyan Jovanovic. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints." Journal of Political Economy 97,4 (August 1989): 808-827.
12. Evans, William N.
Oates, Wallace E.
Schwab, Robert M.
Measuring Peer Group Teenage Behavior: A Study of Teenage Behavior
Journal of Political Economy 100,5 (October 1992): 966-991.
Also: http://www.jstor.org/stable/2138631
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): Adolescent Fertility; Behavior; Endogeneity; Neighborhood Effects; Peers/Peer influence/Peer relations; School Dropouts

Individuals or households often have some scope for choice of peer groups, whether through the selection of neighborhood of residence, school, or friends. This study addresses the estimation of peer group effects in cases in which measures of peer group influence are potentially endogenous variables. Using a rich data set on individual behavior, the paper explores teenage pregnancy and school dropout behavior . For both cases, the estimation of a straightforward single-equation model yields statistically significant peer group effects; however, these effects disappear under simultaneous equation estimation. The results are robust and suggest the need for careful modeling of the choice of peer groups. (ABI/Inform)
Bibliography Citation
Evans, William N., Wallace E. Oates and Robert M. Schwab. "Measuring Peer Group Teenage Behavior: A Study of Teenage Behavior." Journal of Political Economy 100,5 (October 1992): 966-991.
13. Flinn, Christopher Jay
Wages and Job Mobility of Young Workers
Journal of Political Economy 94,3 (June 1986): S88-S110.
Also: http://www.jstor.org/stable/1837177
Cohort(s): Young Men
Publisher: University of Chicago Press
Keyword(s): Heterogeneity; Mobility; Mobility, Job; Research Methodology; Wages

This paper presents a discrete-time version of Jovanovic's model of worker-firm matching. Descriptive evidence is presented that supports the notion that unobserved worker-firm heterogeneity is an important component in the intertemporal structure of wages for young workers. A structural econometric model of wage dynamics under worker-firm sorting is developed and estimated. Finally, a formal test of the matching model is carried out, and the matching structure on intertemporal covariances of wages is not rejected. The results indicate the necessity of jointly considering processes of turnover and wage growth when analyzing the labor market experiences of young workers.
Bibliography Citation
Flinn, Christopher Jay. "Wages and Job Mobility of Young Workers." Journal of Political Economy 94,3 (June 1986): S88-S110.
14. Fu, Chao
Equilibrium Tuition, Applications, Admissions, and Enrollment in the College Market
Journal of Political Economy 122,2 (April 2014): 225-281.
Also: http://www.jstor.org/stable/10.1086/675503
Cohort(s): NLSY97
Publisher: University of Chicago Press
Keyword(s): College Characteristics; College Cost; College Enrollment; Test Scores/Test theory/IRT

I develop and estimate a structural equilibrium model of the college market. Students, having heterogeneous abilities and preferences, make application decisions subject to uncertainty and application costs. Colleges, observing noisy measures of student ability, choose tuition and admissions policies to compete for better students. Tuition, applications, admissions, and enrollment are joint equilibrium outcomes. I estimate the model using the NLSY97 via a three-step procedure to deal with potential multiple equilibria. I use the model to examine the extent to which college enrollment can be increased by expanding college supply and to assess the importance of various measures of student ability.
Bibliography Citation
Fu, Chao. "Equilibrium Tuition, Applications, Admissions, and Enrollment in the College Market." Journal of Political Economy 122,2 (April 2014): 225-281.
15. Garen, John Edward
Worker Heterogeneity, Job Screening, and Firm Size
Journal of Political Economy 93,4 (August 1985): 715-739.
Also: http://www.jstor.org/stable/1832134
Cohort(s): Older Men, Young Men
Publisher: University of Chicago Press
Keyword(s): Assets; Cost-Benefit Studies; Firm Size; Heterogeneity; Schooling; Wages

A model of job screening is constructed in which firms make wage offers to workers on the basis of an imperfect evaluation of their abilities. If large firms have higher costs associated with acquiring information about workers, they screen workers with less accuracy and choose a wage compensation scheme different from the one small firms choose. This produces the often observed positive correlation between firm size and wages. The model also predicts that wage structure, and possibly wage dispersion, will vary by firm size and that individuals who acquire more schooling will opt to work in a large firm. These hypotheses are tested using disaggregate data on individual workers from the 1969 NLS panels of Young and Older Men. The empirical results are quite supportive of the model. Thus, the cost of acquiring information about personnel rises with firm size, and large firms face numerous information problems that small firms do not.
Bibliography Citation
Garen, John Edward. "Worker Heterogeneity, Job Screening, and Firm Size." Journal of Political Economy 93,4 (August 1985): 715-739.
16. Glaeser, Edward L.
Sacerdote, Bruce
Why Is There More Crime in Cities?
Journal of Political Economy 107,6 (December 1999): S225-S258.
Also: http://www.jstor.org/stable/10.1086/250109
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): Crime; Rural/Urban Differences

Crime rates are much higher in big cities than in either small cities or rural areas. This paper explains this connection by using victimization data, evidence from the NLSY on criminal behavior, and the Uniform Crime Reports. Higher pecuniary benefits for crime in large cities can explain at most one-quarter of the connection between city size and crime rates. Lower probabilities of arrest and a lower probability of recognition are features of urban life, but these factors seem to explain at most one-fifth of the urban crime effect. Between one-third and one-half of the urban effect on crime can be explained by the presence of more female-headed households in cities.
Bibliography Citation
Glaeser, Edward L. and Bruce Sacerdote. "Why Is There More Crime in Cities?" Journal of Political Economy 107,6 (December 1999): S225-S258.
17. Goldin, Claudia
Katz, Lawrence F.
The Power of the Pill: Oral Contraceptives and Women's Career and Marriage Decisions
Journal of Political Economy 110,4 (August 2002): 730-770.
Also: http://www.jstor.org/stable/10.1086/340778
Cohort(s): Young Women
Publisher: University of Chicago Press
Keyword(s): Age at First Marriage; Career Patterns; College Graduates; Contraception; Employment; Marital Status; Marriage; Women

The fraction of U.S. college graduate women entering professional programs increased substantially just after 1970, and the age at first marriage among all U.S. college graduate women began to soar around the same year. We explore the relationship between these two changes and the diffusion of the birth control pill ("the pill") among young, unmarried college graduate women. Although the pill was approved in 1960 by the Food and Drug Administration and spread rapidly among married women, it did not diffuse among young, single women until the late 1960s after state law changes reduced the age of majority and extended "mature minor" decisions. We present both descriptive time series and formal econometric evidence that exploit cross-state and cross-cohort variation in pill availability to young, unmarried women, establishing the "power of the pill" in lowering the costs of long-duration professional education for women and raising the age at first marriage.
Bibliography Citation
Goldin, Claudia and Lawrence F. Katz. "The Power of the Pill: Oral Contraceptives and Women's Career and Marriage Decisions." Journal of Political Economy 110,4 (August 2002): 730-770.
18. Griliches, Zvi
Sibling Models and Data in Economics: Beginnings of a Survey
Journal of Political Economy 87,5, part 2 (October 1979): S37-S64.
Also: http://www.jstor.org/stable/1829908
Cohort(s): Young Men
Publisher: University of Chicago Press
Keyword(s): Earnings; Educational Returns; Family Influences; Family Resources; I.Q.; Pairs (also see Siblings); Schooling; Siblings

This paper reviews a number of recent studies of the income-schooling-ability nexus using sibling data and discusses the problem of identification in such studies. Special emphasis is placed on the role of errors in variables, concluding that modest error levels can account for much of the observed difference between total and within-family estimates of returns to schooling. It also suggests that the family may not contribute as much to the transmission of inequality as is commonly thought, since it is a force for equality within (among siblings).
Bibliography Citation
Griliches, Zvi. "Sibling Models and Data in Economics: Beginnings of a Survey." Journal of Political Economy 87,5, part 2 (October 1979): S37-S64.
19. Griliches, Zvi
Wages of Very Young Men
Journal of Political Economy 84,4 (August 1976): S69-S86.
Also: http://www.jstor.org/stable/1831103
Cohort(s): Young Men
Publisher: University of Chicago Press
Keyword(s): Endogeneity; Family Background; I.Q.; Schooling; Test Scores/Test theory/IRT; Wages, Young Men; Work Knowledge

The purpose of this paper is to replicate the results of an earlier study of "Education, Income, and Ability" (Griliches and Mason 1972) on a new set of data, the NLS of Young Men, focusing on the estimation of economic returns to school in the presence of individual differences in ability, errors in variables in the ability measures and the endogeneity of the schooling variable. The major conclusions are: (1) the treatment of "experience" matters. Using estimated experience instead of age changes the relative size of the estimated "ability bias"; (2) this bias is quite small, on the order of .01; (3) the contribution of the ability measures to the fit of the equation is miniscule; (4) family background variables are not significant on top of the schooling and ability variables, and (5) allowing for the endogeneity of schooling raises its coefficient significantly. There is no evidence of a "net" ability bias when the estimation method treats schooling and experience symmetrically with test scores.
Bibliography Citation
Griliches, Zvi. "Wages of Very Young Men." Journal of Political Economy 84,4 (August 1976): S69-S86.
20. Haveman, Robert H.
Wolfe, Barbara L.
The Decline in Male Labor Force Participation: Comment
Journal of Political Economy 92,3 (January 1984): 532-541.
Also: http://www.jstor.org/stable/1837232
Cohort(s): Older Men
Publisher: University of Chicago Press
Keyword(s): Health/Health Status/SF-12 Scale; Social Security; Transfers, Financial; Transfers, Public; Unemployment; Welfare

This article comments on Donald O. Parsons' "The Decline in Male Labor Force Participation" which concludes that the recent decline in labor force participation can be largely explained by the increased generosity of social welfare transfers, particularly Social Security disability payments. The magnitude of Parsons' estimate and its impact on the public debate over disability transfer policy require careful scrutiny of its basis. The authors describe Parsons' econometric model and construction of variables and test the robustness of Parsons' elasticity estimate by presenting alternative estimates based on corrections and extensions of his basic model. They conclude that Parsons' simulation says little about the causal relationships among these similar time-series patterns. Because of changes in the age composition of the labor force, labor market opportunities for older workers, the incidence of work-related impairments, the level of employment and earnings of spouses, the application of eligibility standards, and the coverage of private pensions, none of which are reflected in Parsons' simulation, his conclusion is unwarranted.
Bibliography Citation
Haveman, Robert H. and Barbara L. Wolfe. "The Decline in Male Labor Force Participation: Comment." Journal of Political Economy 92,3 (January 1984): 532-541.
21. Heckman, James J.
Effects of Child-Care Programs on Women's Effort
Journal of Political Economy 82,2,Part 2 (March-April 1974): S136-S163.
Also: http://www.jstor.org/stable/1829997
Cohort(s): Mature Women
Publisher: University of Chicago Press
Keyword(s): Behavior; Child Care; Household Income; Leisure; Life Cycle Research; Welfare; Wives

The economics of tied work payments and methods for estimating the effect of such payments on labor supply are discussed. It is important to distinguish the conceptually easier problem of modeling the response to tied offers from the more demanding problem of providing reliable estimates of the appropriate behavioral functions. It has been shown that knowledge of consumer preferences is necessary to estimate program effects, and methods have been suggested for determining these preferences. By directly estimating indifference curves, hours of work and work- participation equations have been derived from a common set of parameters. The separation of preferences from constraints allows us to estimate the labor-supply parameters of individuals from data generated by nonstandard constraints, such as the broken-line budget constraints resulting from the tax system, where a tractable labor- supply function does not exist. At the cost of estimating a savings function, we can embed the traditional one- period model of labor supply into a life-cycle model. Both the distribution of tastes for work and distribution of market wage rates for the population at large are estimated. The estimates suggest that wage rates are strongly correlated with preferences for work so that simple "reduced-form" labor-supply functions obtained by regressing hours worked on wage rates give biased estimates. In forming estimates, a statistical procedure is employed which avoids both this bias and censoring bias.
Bibliography Citation
Heckman, James J. "Effects of Child-Care Programs on Women's Effort." Journal of Political Economy 82,2,Part 2 (March-April 1974): S136-S163.
22. Heckman, James J.
Willis, Robert J.
The Distribution of Lifetime Labor Force Participation of Married Women: Reply to Mincer and Ofek
Journal of Political Economy 87,1 (February 1979): 203-211.
Also: http://www.jstor.org/stable/1832219
Cohort(s): Mature Women
Publisher: University of Chicago Press
Keyword(s): Children; Marriage; Research Methodology; Work Experience

The authors defend and qualify their earlier article, "A Beta-Logistic Model" [JPE, 85, 1 (February l977): 27-58] which had been questioned by Mincer and Ofek. Heckman and Willis estimate the lifetime probabilities of labor force participation of married women, conditional not only upon marital status but also upon variables like children, income, and local labor market conditions. They summarize corrections in their statistical model, and suggest that assumptions both in their own earlier work and in that of Mincer and Ofek were incorrectly based.
Bibliography Citation
Heckman, James J. and Robert J. Willis. "The Distribution of Lifetime Labor Force Participation of Married Women: Reply to Mincer and Ofek." Journal of Political Economy 87,1 (February 1979): 203-211.
23. Hess, Gregory D.
Marriage and Consumption Insurance: What's Love Got to Do with It?
Journal of Political Economy 112,2 (April 2004): 290-318.
Also: http://www.jstor.org/stable/10.1086/381477
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): Income; Marital Stability; Marriage

When markets are incomplete, individuals may choose to marry to diversify their labor income risk. Love, however, can complicate the picture. If love is fleeting or the resolution of agents' income uncertainty occurs predominantly later in life, then marriages with good economic matches last longer. In contrast, if love is persistent and the resolution of uncertainty to agents' income occurs early, then marriages with good economic matches are more likely to be caught short with too little love to save a marriage. Consequently, once married, the partners will be more likely to divorce. Evidence is provided to distinguish between these alternative scenarios.
Bibliography Citation
Hess, Gregory D. "Marriage and Consumption Insurance: What's Love Got to Do with It?" Journal of Political Economy 112,2 (April 2004): 290-318.
24. Kaplan, Greg
Moving Back Home: Insurance against Labor Market Risk
Journal of Political Economy 120,3 (June 2012): 446-512.
Also: http://www.jstor.org/stable/10.1086/666588
Cohort(s): NLSY97
Publisher: University of Chicago Press
Keyword(s): Labor Force Participation; Mobility; Mobility, Residential; Parent-Child Interaction; Residence; Wage Growth

This paper demonstrates that the option to move in and out of the parental home is a valuable insurance channel against labor market risk, which facilitates the pursuit of jobs with the potential for high earnings growth. Using monthly panel data, I document an empirical relationship among coresidence, individual labor market events, and subsequent earnings growth. I estimate the parameters of a dynamic game between youths and parents to show that the option to live at home can account for features of aggregate data for low-skilled young workers: small consumption responses to shocks, high labor elasticities, and low savings rates.
Bibliography Citation
Kaplan, Greg. "Moving Back Home: Insurance against Labor Market Risk." Journal of Political Economy 120,3 (June 2012): 446-512.
25. Keane, Michael P.
Moffitt, Robert A.
Runkle, David
Real Wages over the Business Cycle: Estimating the Impact of Heterogeneity with Micro Data
Journal of Political Economy 96,6 (December 1988): 1232-1266.
Also: http://www.jstor.org/stable/1831950
Cohort(s): Young Men
Publisher: University of Chicago Press
Keyword(s): Employment, In-School; Heterogeneity; Selectivity Bias/Selection Bias; Wages

One of the oldest questions in macroeconomics concerns the correlation between the business cycle and the real wage. The authors provide new evidence on this question by examining the possible bias that arises when: (1) workers have unobserved characteristics that affect their wages; and (2) those workers who move in and out of the workforce over the cycle have systematically different unobserved characteristics than those who stay in. The authors also distinguish between the bias that arises from those unobserved characteristics that are permanent components of wages and those which are transitory. Micro panel data from the Young Men cohort and maximum likelihood selectivity bias techniques were utilized to estimate both the extent of this selectivity-cum- aggregation bias and the true effect of the cycle on real wages. It was found that selectivity bias is present-- workers are more likely to lose employment during a recession if they have high wages, especially if they have a high transitory wage component. The primary source of this selectivity bias is a rigid-wage manufacturing sector in which those with both high permanent and transitory wages are more likely to be laid off. Overall, the effect of selectivity is to bias OLS estimates based only on workers in a procyclical direction. The results show that the true effect of the cycle on wages is still procyclical, but much smaller in magnitude than previous estimates using micro data have suggested.
Bibliography Citation
Keane, Michael P., Robert A. Moffitt and David Runkle. "Real Wages over the Business Cycle: Estimating the Impact of Heterogeneity with Micro Data." Journal of Political Economy 96,6 (December 1988): 1232-1266.
26. Keane, Michael P.
Wolpin, Kenneth I.
The Career Decisions of Young Men
Journal of Political Economy 105,3 (June 1997): 473-522.
Also: http://www.jstor.org/stable/10.1086/262080
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): Absenteeism; Human Capital; Part-Time Work; Training, Occupational; Training, On-the-Job; Wage Differentials; Wage Levels

This paper provides structural estimates of a dynamic mode of schooling, work, and occupational choice decisions based on 11 years of observations on a sample of young men from the 1979 youth cohort of the National Longitudinal Surveys of Labor Market Experience (NLSY). The structural estimation framework that we adopt fully imposes the restrictions of the theory and permits an investigation of whether such a theoretically restricted model can succeed in quantitatively fitting the observed data patterns. We find that a suitably extended human capital investment model can in fact do an excellent job of fitting observed data on school attendance work, occupational choices, and wages in the NLSY data on young men and also produces reasonable forecasts of future work decisions and wage patterns. Copyright 1997 by The University of Chicago All rights reserved.
Bibliography Citation
Keane, Michael P. and Kenneth I. Wolpin. "The Career Decisions of Young Men." Journal of Political Economy 105,3 (June 1997): 473-522.
27. Lazear, Edward
Education: Consumption or Production?
Journal of Political Economy 85,3 (June 1977): 569-598.
Also: http://www.jstor.org/stable/1830197
Cohort(s): Young Men
Publisher: University of Chicago Press
Keyword(s): Educational Attainment; Income Dynamics/Shocks; Simultaneity

This paper attempts to determine whether the relationship between education and income results because schooling allows individuals to earn higher income or because higher income individuals purchase more of all normal goods, including schooling. Education is treated as a joint product, producing potential wage gains and utility simultaneously. The framework permits estimation of the rental price of a unit of education, net of consumption effects. The major finding is that education does causally produce income. By moving from 0 years of schooling to 12 years, the mean individual approximately triples his wealth. More surprising is that education is a "bad." Individuals stop short of acquiring the wealth-maximizing level of education because of the disutility associated with school attendance.
Bibliography Citation
Lazear, Edward. "Education: Consumption or Production?" Journal of Political Economy 85,3 (June 1977): 569-598.
28. McCall, Brian P.
Occupational Matching: A Test of Sorts
Journal of Political Economy 98,1 (February 1990): 45-69.
Also: http://www.jstor.org/stable/2937641
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): Job Search; Job Tenure; Job Turnover; Occupations; Quits

A theory of job matching is developed in which matching information has job- specific and occupation-specific components. If occupational matching is significant, the theory predicts that, for those who have switched jobs but stayed in the same occupation, increased tenure in the previous job lowers the likelihood of separation from the current job. These predictions were tested using data from the NLSY; this panel data set follows 12,686 youths, aged 14 to 22 years in 1979, over the period 1979-1985. Using a proportional hazards approach, it was found that, in general, tenure in the previous job had a significantly negative impact on the separation rate from the current job. However, for those who had switched occupations between jobs, the magnitude of this effect was significantly less. Similar results were obtained when job quits were analyzed separately using a competing risks approach. [ABI/INFORM]
Bibliography Citation
McCall, Brian P. "Occupational Matching: A Test of Sorts." Journal of Political Economy 98,1 (February 1990): 45-69.
29. Mincer, Jacob
Ofek, Haim
The Distribution of Lifetime Labor Force Participation of Married Women: Comment
Journal of Political Economy 87,1 (February 1979): 197-201.
Also: http://www.jstor.org/stable/1832218
Cohort(s): Mature Women
Publisher: University of Chicago Press
Keyword(s): Schooling; Wages; Wives; Work History

Two important corollaries of our finding are: (1) in the analysis of long-term (cohort or "lifetime") labor supply of married women corner phenomena are negligible; and (2) even though their current participation rate is 100 percent, married women observed working in a given survey cannot be viewed as permanent labor force participants in the same way as other groups (say adult men) whose average participation rate in the survey is close to 100 percent. Variation in length of previous work experience among currently working married women is quite large. This variation among married women is an important factor in their wage dispersion, and the shorter average work experience is a factor in producing an average wage which is less than the average wage of men or of single women.
Bibliography Citation
Mincer, Jacob and Haim Ofek. "The Distribution of Lifetime Labor Force Participation of Married Women: Comment." Journal of Political Economy 87,1 (February 1979): 197-201.
30. Mincer, Jacob
Polachek, Solomon W.
Family Investments in Human Capital: Earnings of Women
Journal of Political Economy 82,2 (March-April 1974): S78-S108.
Also: http://www.jstor.org/stable/1829993
Cohort(s): Mature Women
Publisher: University of Chicago Press
Keyword(s): Children; Family Background; Fertility; First Birth; Human Capital Theory; Schooling; Wage Gap; Work Experience; Work History

Our data on work histories show some interesting trends which suggest a prospective narrowing of the wage differential. Women aged 40-44 who had their first child in the late 1940s stayed out of the labor force about 5 years longer than women aged 30-34 whose first child was born in the late 1950s. Family size is about the same for both groups, but higher for the middle group (35-39) whose fertility marked the peak of the baby boom. Still, the home-time interval in that group is shorter (by about 2 years) than in the older group and longer in the younger. Thus, the trend in labor-force participation of young mothers was persistent. By the time the 30-34- year-old women get to be 40-44 (i. e. , in 1977), they will have had 4 years of work experience more than the older cohort, and their wage rates will rise by 6 percent on account of lesser depreciation and by another 2-4 percent due to longer work experience. Thus, the total observed wage gap between men and women aged 40-44 should narrow by about one-fifth, while the gap due to work experience should be reduced by one-quarter.
Bibliography Citation
Mincer, Jacob and Solomon W. Polachek. "Family Investments in Human Capital: Earnings of Women." Journal of Political Economy 82,2 (March-April 1974): S78-S108.
31. Mulligan, Casey B.
Galton versus the Human Capital Approach to Inheritance
Journal of Political Economy 107,6 (December 1999): S184-S224.
Also: http://www.jstor.org/stable/10.1086/250108
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): Human Capital; Inheritance; Intergenerational Patterns/Transmission; Panel Study of Income Dynamics (PSID)

A century ago, Francis Galton proposed a simple yet powerful model of inheritance. Gary Becker's human capital model is often used to analyze important empirical and policy questions, but does it dominate Galton's from a positive point of view? I derive nine implications of the human capital approach that are distinct from Galton's. Evidence from the PSID, SCF, and NLSY micro data sets as well as results reported in previous literatures suggest that four of the unique implications are refuted. Two implications are verified, and mixed results are obtained for three others. Some extensions of economics recently developed by Becker and others, when applied to inheritance, may improve economics' predictions.
Bibliography Citation
Mulligan, Casey B. "Galton versus the Human Capital Approach to Inheritance." Journal of Political Economy 107,6 (December 1999): S184-S224.
32. Munnell, Alicia H.
Private Pensions and Savings: New Evidence
Journal of Political Economy 84,5 (October 1976): 1013-1032.
Also: http://www.jstor.org/stable/1830440
Cohort(s): Older Men
Publisher: University of Chicago Press
Keyword(s): Behavior; Earnings; Family Resources; Pensions; Retirement; Social Security

This paper examines the impact of private pension coverage on the saving behavior of men in their preretirement years. The empirical work is based on the Ando-Modigliani model but permits explicit recognition of differences in expected retirement age between covered and noncovered groups. The results clearly indicate that, contrary to earlier work by Cagan and Katona, pension coverage reduces saving in other forms.
Bibliography Citation
Munnell, Alicia H. "Private Pensions and Savings: New Evidence." Journal of Political Economy 84,5 (October 1976): 1013-1032.
33. Neal, Derek A.
The Measured Black-White Wage Gap Among Women Is Too Small
Journal of Political Economy 112,S1 (February 2004): S1-S28.
Also: http://www.jstor.org/stable/10.1086/379940
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): Black Studies; Minorities; Minority Groups; Racial Differences; Wage Gap; Wages; Wages, Women; Women; Women's Studies

Existing work suggests that black-white gaps in potential wages are much larger among men than women and further that black-white differences in patterns of female labor supply are unimportant. However, panel data on wages and income sources demonstrate that the modal young black woman who does not engage in market work is a single mother receiving government aid whereas her white couterpart is a married mother receiving support from a working spouse. The median black-white gap in log potential wages among young adult women in 1990 was likely at least 60 percent larger than the gap implied by reported earnings and hours worked in the Current Population Surveys.
Bibliography Citation
Neal, Derek A. "The Measured Black-White Wage Gap Among Women Is Too Small." Journal of Political Economy 112,S1 (February 2004): S1-S28.
34. Oettinger, Gerald S.
The Effects of Sex Education on Teen Sexual Activity and Teen Pregnancy
Journal of Political Economy 107,3 (June 1999): 606-644.
Also: http://www.jstor.org/stable/10.1086/250073
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): Gender Differences; Pregnancy and Pregnancy Outcomes; Sex Education; Sexual Activity; Sexual Behavior; Sexual Experiences/Virginity; Siblings; Teenagers

This paper empirically examines the relationship between enrollment in sex education and subsequent sexual behavior for U.S. teenagers during the 1970s. The estimates indicate that enrollment in sex education was associated with earlier sexual activity for females in this cohort. Sex education also was associated with earlier pregnancy for some groups of females, but these effects are smaller and not always statistically significant. For both types of transitions, the effect of sex education appears to have been larger for women with fewer alternative sources of sexual information. In contrast, sex education had much less impact on male transitions into sexual activity. Within-family analyses using sibling data reveal qualitatively similar patterns. Overall, the evidence suggests that sex education in the 1970s had some causal impact on teen sexual behavior, probably in significant part by providing information that enabled teens to alter the risks of sexual activity.
Bibliography Citation
Oettinger, Gerald S. "The Effects of Sex Education on Teen Sexual Activity and Teen Pregnancy." Journal of Political Economy 107,3 (June 1999): 606-644.
35. Olson, Lawrence Smedley
White, Halbert
Shefrin, H.M.
Optimal Investment in Schooling When Incomes are Risky
Journal of Political Economy 87,3 (June 1979): 522-539.
Also: http://www.jstor.org/stable/1832021
Cohort(s): Young Men
Publisher: University of Chicago Press
Keyword(s): College Education; Earnings; Educational Returns; Schooling; Time Preference

This study demonstrates a tractable method for analyzing schooling investment with risky incomes. Constant relative risk aversion is assumed, and borrowing in a rudimentary capital market is allowed. A linear, variance- components model on log (real income) is estimated. Only unexplained variation is treated as a source of risk. Illustrative empirical results indicate that students should take either four years of college or none at all, depending on time preference, loan availability, and degree of risk aversion. Estimated risk-adjusted rates of return to college exceed 10 percent for some parameter values. Risk adjustments for college rates are small but positive.
Bibliography Citation
Olson, Lawrence Smedley, Halbert White and H.M. Shefrin. "Optimal Investment in Schooling When Incomes are Risky." Journal of Political Economy 87,3 (June 1979): 522-539.
36. Parsons, Donald O.
The Cost of School Time, Foregone Earnings, and Human Capital Formation
Journal of Political Economy 82,2 (March-April 1974): 251-266.
Also: http://www.jstor.org/stable/1831177
Cohort(s): Young Men
Publisher: University of Chicago Press
Keyword(s): Earnings; Educational Returns; High School; Human Capital Theory; Part-Time Work; Schooling

A simple educational investment model is used to demonstrate that, if students are subject to borrowing constraints, foregone earnings are not identical to schooling time costs, since students will sacrifice leisure as well as earnings. Direct measurement of schooling hours and work hours of young males reveals that at the high school level the bulk of school hours results from foregone leisure. A review of the foregone-earnings measures used in a number of major human capital studies is undertaken to determine the approximate bias in human capital formation and rate-of-return estimates resulting from this source.
Bibliography Citation
Parsons, Donald O. "The Cost of School Time, Foregone Earnings, and Human Capital Formation." Journal of Political Economy 82,2 (March-April 1974): 251-266.
37. Parsons, Donald O.
The Decline in Male Labor Force Participation
Journal of Political Economy 88,1 (February 1980): 117-134.
Also: http://www.jstor.org/stable/1830962
Cohort(s): Older Men
Publisher: University of Chicago Press
Keyword(s): Health/Health Status/SF-12 Scale; Social Security; Unemployment; Welfare

The rate of nonparticipation in market work among prime-aged males in the United States has risen persistently during the postwar period. The rate among males aged 45-54, for example, has risen from 4.5 percent to 8.4 percent from l947 to l976, with similar trends among other age groups. The principal hypothesis explored is that labor force withdrawal has been induced by the rapid expansion of welfare alternatives to work, principally the Social Security disability program. Cross-sectional evidence strongly confirms this hypothesis. Time-series projections of the cross-sectional model, moreover, track actual postwar trends in male labor force participation reasonably well.
Bibliography Citation
Parsons, Donald O. "The Decline in Male Labor Force Participation." Journal of Political Economy 88,1 (February 1980): 117-134.
38. Persico, Nicola
Postlewaite, Andrew
Silverman, Daniel Susman
The Effect of Adolescent Experience on Labor Market Outcomes: The Case of Height
Journal of Political Economy 112,5 (October 2004): 1019-1053.
Also: http://www.jstor.org/stable/full/10.1086/422566
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): Athletics (see SPORTS); Height; NCDS - National Child Development Study (British); Sports (also see ATHLETICS); Wage Levels; Wages

Taller workers receive a wage premium. Net of differences in family background, the disparity is similar in magnitude to the race and gender gaps. We exploit variation in an individual's height over time to explore how height affects wages. Controlling for teen height exxentially eliminates the effect of adult height on wages for white men. The teen height premium is not explained by differences is resources or endowments. The teen height premium is partially mediated through participation in high school sports and clubs. We estimate the monetary benefits of a medical treatment for children that increases height.
Bibliography Citation
Persico, Nicola, Andrew Postlewaite and Daniel Susman Silverman. "The Effect of Adolescent Experience on Labor Market Outcomes: The Case of Height." Journal of Political Economy 112,5 (October 2004): 1019-1053.
39. Polachek, Solomon W.
Das, Tirthatanmoy
Thamma-Apiroam, Rewat
Micro- and Macroeconomic Implications of Heterogeneity in the Production of Human Capital
Journal of Political Economy 123,6 (December 2015): 1410-1455.
Also: http://www.journals.uchicago.edu/doi/full/10.1086/683989
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): Cognitive Ability; Family Background; Heterogeneity; Human Capital; Personality/Big Five Factor Model or Traits; Skill Depreciation

We derive a tractable nonlinear earnings function that we estimate separately individual by individual using NLSY79 data. We obtain three ability measures, a rate of skill depreciation, a time discount rate, and a population-wide estimate of the human capital rental rate. We utilize these parameters to verify a number of heretofore untested theorems based on the life cycle model. We show how these human capital production function parameters relate to cognitive ability, personality traits, and family background. Finally, we show that accounting for individual-specific heterogeneity dramatically reduces estimates of population-wide persistence of permanent and transitory shocks by over 50 percent.
Bibliography Citation
Polachek, Solomon W., Tirthatanmoy Das and Rewat Thamma-Apiroam. "Micro- and Macroeconomic Implications of Heterogeneity in the Production of Human Capital." Journal of Political Economy 123,6 (December 2015): 1410-1455.
40. Rosenzweig, Mark R.
Population Growth and Human Capital Investments: Theory and Evidence
Journal of Political Economy 98,5 (October 1990): S38-S70.
Also: http://www.jstor.org/stable/2937631
Cohort(s): Children of the NLSY79, NLSY79
Publisher: University of Chicago Press
Keyword(s): Birthweight; Fertility; Human Capital Theory; Pre-natal Care/Exposure; Pre/post Natal Behavior; Pre/post Natal Health Care

This paper reviews evidence from studies that have examined the interrelationships among population growth, investments in human capital, and economic development. The first section discusses the effects of economic growth on fertility and school investment. Section two reviews evidence pertaining to the effects of changes in fertility on human capital. Data from a wide range of international and U.S. data bases are cited including fertility and birthweight information from the NLSY Children.
Bibliography Citation
Rosenzweig, Mark R. "Population Growth and Human Capital Investments: Theory and Evidence." Journal of Political Economy 98,5 (October 1990): S38-S70.
41. Rosenzweig, Mark R.
Welfare, Marital Prospects, and Nonmarital Childbearing
Journal of Political Economy 107,6 (December 1999): S3-S32.
Also: http://www.jstor.org/stable/10.1086/250102
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): Aid for Families with Dependent Children (AFDC); Benefits; Children; Family Size; Fertility; Marriage; Women

The roles of the entitlements of the AFDC program and marital prospects in the fertility and marriage choices of young women are assessed in the context of a model incorporating heritable endowment heterogeneity, assortative mating, concern for child quality, and potential parental and public support alternatives. Estimates based on data describing the fertility and marital experience up to age 23 of the eight birth cohorts of women in the NLSY provide evidence that higher AFDC benefit levels and lower marital prospects induce young women to choose to have a child outside of marriage.
Bibliography Citation
Rosenzweig, Mark R. "Welfare, Marital Prospects, and Nonmarital Childbearing." Journal of Political Economy 107,6 (December 1999): S3-S32.
42. Thompson, Owen
The Determinants of Racial Differences in Parenting Practices
Journal of Political Economy 126,1 (February 2018): 438-449.
Also: https://www.journals.uchicago.edu/doi/abs/10.1086/694205
Cohort(s): Children of the NLSY79, NLSY79
Publisher: University of Chicago Press
Keyword(s): Geocoded Data; Home Observation for Measurement of Environment (HOME); Parenting Skills/Styles; Racial Differences; State-Level Data/Policy

Blacks and whites in the United States adopt widely different parental behaviors, but the underlying causes of these differences are not well understood. This paper documents large scale increases in cognitively stimulating parenting among Southern black mothers who came of age in the period immediately following the Civil Rights Movement. The total magnitude of these improvements was approximately .5 standard deviations between the 1957 and 1964 birth cohorts, while no significant trends occurred among blacks outside of the South or among whites from any region.
Bibliography Citation
Thompson, Owen. "The Determinants of Racial Differences in Parenting Practices." Journal of Political Economy 126,1 (February 2018): 438-449.
43. Veum, Jonathan R.
Training and Job Mobility Among Young Workers in the United States
Journal of Population Economics 10,2 (June 1997): 219-233.
Also: http://www.springerlink.com/content/vg9kyhvwvqkv75vp/
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): Human Capital; Job Training; Job Turnover; Mobility, Occupational; Quits; Retirement; Training

Using data from the National Longitudinal Survey of Youth from 1987 to 1992, the determinants of training and the impact of training on job turnover are examined for young private sector workers in the United States. It is found that the receipt of company training is positively correlated with education, ability, and prior tenure at the job. The results provide only limited evidence that company training reduces turnover. There is substantial evidence, however, that training which is not financed by employers increases job mobility. The results imply that training plays an important role in the job search and job matching process among young workers.
Bibliography Citation
Veum, Jonathan R. "Training and Job Mobility Among Young Workers in the United States." Journal of Population Economics 10,2 (June 1997): 219-233.
44. Wolpin, Kenneth I.
The Determinants of Black-White Differences in Early Employment Careers: Search, Layoffs, Quits and Endogenous Wage Growth
Journal of Political Economy 100,3 (June 1992): 535-560.
Also: http://www.jstor.org/stable/2138730
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): Endogeneity; Job Patterns; Job Search; Layoffs; Mobility; Quits; Transition, School to Work; Unemployment Compensation; Wages; Work Experience; Work Histories

This paper studies the transition from school to full-time employment and subsequent labor mobility during the first five post-schooling years for several recent cohorts of black and white male high school graduates, those who graduated from high school between 1978 and 1984. A comparison of the early employment transition process using unique data from the NLSY reveals important differences in the accumulation of work experience for black and white male high school graduates. The most important general findings are as follows: (1) Blacks have higher probabilities of receiving job offers than whites, and a higher layoff probability. History matters in the propensity to receive offers differently by race. While unemployed the probability of receiving an offer increases with work experience for blacks, but decreases for whites; while employed these relationship are reversed. (2) Work experience has a substantially higher payoff for whites than for blacks overall. Specific experience is relatively more important than general experience for blacks while the opposite is true for whites. (3) If blacks faced the same wage offer structure, all else the same, they would accumulate general work experience more rapidly than whites. However, black accepted wages would still be lower than whites. (4) Increasing unemployment compensation benefits, all else the same, has very little effect on whites but substantially increases the propensity for blacks to accept a first job.
Bibliography Citation
Wolpin, Kenneth I. "The Determinants of Black-White Differences in Early Employment Careers: Search, Layoffs, Quits and Endogenous Wage Growth." Journal of Political Economy 100,3 (June 1992): 535-560.