Search Results

Source: Labour Economics
Resulting in 35 citations.
1. Ahn, Taehyun
Attitudes Toward Risk and Self-Employment of Young Workers
Labour Economics 17,2 (April 2010): 434-442.
Also: http://www.sciencedirect.com/science/article/pii/S0927537109000712
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Income Risk; Risk-Taking; Self-Employed Workers; Variables, Independent - Covariate

A high degree of risk tolerance is often regarded as one of the fundamental characteristics of entrepreneurs. Using multiple responses on risky income gambles in the 1979 National Longitudinal Survey of Youth (NLSY79), I investigate the effect of individual risk tolerance on the probability of entry into self-employment. I construct a measure of individual level of risk tolerance that is corrected for reporting error and that varies with age and other covariates that potentially affect self-employment decision. I find that risk tolerance is an important determinant of the decision to enter self-employment. However, I find that the estimated effect of risk tolerance on the probability of entering self-employment is dramatically understated if measurement error is not taken into account. In addition, I find that that accounting for the correlation between risk tolerance and other covariates is important to correctly assess the effects of the other determinants of self-employment while it has a trivial effect on the estimated marginal effect of risk tolerance. [Copyright Elsevier]
Bibliography Citation
Ahn, Taehyun. "Attitudes Toward Risk and Self-Employment of Young Workers." Labour Economics 17,2 (April 2010): 434-442.
2. Albrecht, James
van Vuuren, Aico
Vroman, Susan
The Black-White Wage Gap Among Young Women in 1990 vs. 2011: The Role of Selection and Educational Attainment
Labour Economics 33 (April 2015): 66-71.
Also: http://www.sciencedirect.com/science/article/pii/S0927537115000214
Cohort(s): NLSY79, NLSY97
Publisher: Elsevier
Keyword(s): Educational Attainment; Racial Differences; Racial Equality/Inequality; Wage Gap

In this paper, we compare the black-white median log wage gap for women aged 26-31 in 1990 and 2011. Two stylized facts emerge. First, the pattern of selection in the two years is similar--the gaps observed among women employed in 1990 and 2011 substantially understate the gaps that would have been observed had all 26-31 year-old women been working in those years. Second, both the median log wage gap observed in the data and the selection-corrected gap increased substantially between the two years, a fact that can be mostly attributed to changes in the distributions of educational attainment among young black and white women.
Bibliography Citation
Albrecht, James, Aico van Vuuren and Susan Vroman. "The Black-White Wage Gap Among Young Women in 1990 vs. 2011: The Role of Selection and Educational Attainment." Labour Economics 33 (April 2015): 66-71.
3. Artz, Benjamin
Taengnoi, Sarinda
Do Women Prefer Female Bosses?
Labour Economics 42 (October 2016): 194-202.
Also: http://www.sciencedirect.com/science/article/pii/S0927537116301129
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Gender Differences; Job Satisfaction; Supervisor Characteristics; Well-Being

The participation of women in the labor force has grown significantly over the past 50 years, and with this, women are increasingly holding managerial and supervisory positions. Yet little is known about how female supervisors impact employee well-being. Using two distinct datasets of US workers, we provide previously undocumented evidence that women are less satisfied with their jobs when they have a female boss. Male job satisfaction, by contrast, is unaffected. Crucially our study is able to control for individual worker fixed effects and to identify the impact of a change in supervisor gender on worker well-being without other alterations in the worker's job.
Bibliography Citation
Artz, Benjamin and Sarinda Taengnoi. "Do Women Prefer Female Bosses?" Labour Economics 42 (October 2016): 194-202.
4. Barua, Rashmi
Intertemporal Substitution in Maternal Labor Supply: Evidence Using State School Entrance Age Laws
Labour Economics 31 (December 2014): 129-140.
Also: http://www.sciencedirect.com/science/article/pii/S0927537114000852
Cohort(s): Children of the NLSY79, NLSY79
Publisher: Elsevier
Keyword(s): Census of Population; Endogeneity; Geocoded Data; Human Capital; Labor Market Outcomes; Maternal Employment; School Entry/Readiness; State-Level Data/Policy; Time Use

Using exogenous variation in maternal net earning opportunities, generated through school entrance age of children, I study intertemporal labor supply behavior among married mothers. Employing data from the 1980 US Census and the NLSY, I estimate the effect of a one year delay in school attendance on long run maternal labor supply. IV estimates imply that having a 5 year old enrolled in school increases labor supply for married women. Further, using a sample of 7 to 10 year olds from the NLSY, I investigate persistence in employment outcomes for a married mother whose child delayed school entry. Results point towards long run intertemporal substitution in labor supply. Rough calculations yield an uncompensated wage elasticity of 0.37 and an intertemporal elasticity of substitution equal to 0.73.
Bibliography Citation
Barua, Rashmi. "Intertemporal Substitution in Maternal Labor Supply: Evidence Using State School Entrance Age Laws ." Labour Economics 31 (December 2014): 129-140.
5. Bond, Timothy N.
Lehmann, Jee-Yeon K.
Prejudice and Racial Matches in Employment
Labour Economics 51 (April 2018): 271-293.
Also: https://www.sciencedirect.com/science/article/pii/S0927537117302166
Cohort(s): NLSY97
Publisher: Elsevier
Keyword(s): Discrimination, Racial/Ethnic; Employment, History; General Social Survey (GSS); Racial Differences; Supervisor Characteristics

We develop a model in which some employers hold unobservable racial prejudice towards black workers. Workers, however, observe a signal of prejudice status -- the presence of a black supervisor. Jobs in firms with black supervisors hold higher option value for black workers, because they are less likely to face prejudice-based termination. Hence, black workers are willing to accept employment with lower expected match quality from firms with black supervisors. We derive predictions on differences in wages and job stability across supervisor race and prejudice levels and find empirical support for them using unique longitudinal data on worker's supervisor and state-level measures of prejudice.
Bibliography Citation
Bond, Timothy N. and Jee-Yeon K. Lehmann. "Prejudice and Racial Matches in Employment." Labour Economics 51 (April 2018): 271-293.
6. Braga, Breno
Earnings Dynamics: The Role of Education Throughout a Worker's Career
Labour Economics 52 (June 2018): 83-97.
Also: https://www.sciencedirect.com/science/article/pii/S0927537118300216
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Displaced Workers; Educational Attainment; Wage Dynamics; Wage Growth; Work Experience

This paper describes two stylized facts about the earnings dynamics throughout a worker's career. First, this paper shows that more educated workers have higher wage growth with work experience than less educated workers. Second, it demonstrates that more educated workers suffer greater wage losses following job displacement. I propose a model that integrates human capital accumulation and learning mechanisms that can explain these empirical findings. In the model, employers use both education and past job displacement as a signal of a worker's unobservable ability. As a result, educated workers receive more on-the-job training in the beginning of their careers. In addition, educated workers suffer greater wage losses after being laid off when potential employers learn that an educated worker is low ability.
Bibliography Citation
Braga, Breno. "Earnings Dynamics: The Role of Education Throughout a Worker's Career." Labour Economics 52 (June 2018): 83-97.
7. Bronars, Stephen G.
Oettinger, Gerald S.
Estimates of the Return to Schooling and Ability: Evidence From Sibling Data
Labour Economics 13,1 (February 2006): 19-34.
Also: http://www.sciencedirect.com/science/article/pii/S0927537104000983
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Aptitude; Educational Returns; Human Capital; Modeling, Fixed Effects; Occupational Choice; Schooling; Siblings; Skills; Test Scores/Test theory/IRT; Training, On-the-Job; Wage Differentials; Wage Levels; Wages

Abstract: We use sibling data on wages, schooling, and aptitude test scores from the 1979 National Longitudinal Survey of Youth (NLSY79) to obtain OLS, family fixed effects, and fixed effects instrumental variable estimates of the return to schooling for a large sample of non-twin siblings. Following recent studies that use identical twin samples, we use sibling-reported schooling as an instrument for self-reported schooling. Controlling for aptitude test scores has a substantial impact on estimated returns to schooling even within families, and there is a large return to test scores that is comparable in size within and between families. We also find that the return to schooling is higher for older brothers than for younger brothers and for women than men. Finally, because the NLSY79 contains multiple sibling reports of education for the same individual, we are able to test and reject the overidentifying restrictions for the validity of sibling-reported schooling as an instrumental variable. [ABSTRACT FROM AUTHOR; Copyright 2006 Elsevier]
Bibliography Citation
Bronars, Stephen G. and Gerald S. Oettinger. "Estimates of the Return to Schooling and Ability: Evidence From Sibling Data." Labour Economics 13,1 (February 2006): 19-34.
8. Couch, Kenneth A.
Lillard, Dean R.
Sample Selection Rules and the Intergenerational Correlation of Earnings
Labour Economics 5,3 (September 1998): 313-329.
Also: http://www.sciencedirect.com/science/article/pii/S0927537198000098
Cohort(s): Young Men
Publisher: Elsevier
Keyword(s): Earnings; Intergenerational Patterns/Transmission; Panel Study of Income Dynamics (PSID); Unemployment

This paper investigates the sensitivity of estimates of the intergenerational correlation of earnings to different sample selection rules. Recent articles report father–son correlations to be on the order of 0.4. Those estimates, however, are based on samples which exclude observations with low or zero earnings. Since events such as unemployment are common, it is not clear that such episodes should be excluded. We show that estimated correlations are quite sensitive to the selection rule used. The sensitivity of estimates to selection rules suggests one should be cautious about using recent estimates to infer the degree of intergenerational mobility. q1998 Elsevier Science B.V. All rights reserved.
Bibliography Citation
Couch, Kenneth A. and Dean R. Lillard. "Sample Selection Rules and the Intergenerational Correlation of Earnings." Labour Economics 5,3 (September 1998): 313-329.
9. Dechter, Evgenia
Physical Appearance and Earnings, Hair Color Matters
Labour Economics 32 (January 2015): 15-26.
Also: http://www.sciencedirect.com/science/article/pii/S0927537114001432
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Earnings; Labor Market Outcomes; Physical Characteristics; Work Experience

This study examines the relationship between physical appearance and labor market outcomes. It focuses on hair color and addresses the effects of the "blonde myth", a series of perceptions about personality characteristics of blonde women. Inexperienced blonde women earn significantly less than their non-blonde counterparts. This wage gap declines over time, and blonde women with more work experience earn higher wages. The relationship between earnings and hair color is not explained by personal or family characteristics. I argue that employer or customer tastes drive the initial blonde hair penalty; job sorting and mobility allow blonde women to close the gap.
Bibliography Citation
Dechter, Evgenia. "Physical Appearance and Earnings, Hair Color Matters." Labour Economics 32 (January 2015): 15-26.
10. Edwards, Ryan D.
Roff, Jennifer
What Mom and Dad's Match Means for Junior: Marital Sorting and Child Outcomes
Labour Economics 40 (June 2016): 43-56.
Also: http://www.sciencedirect.com/science/article/pii/S0927537116300148
Cohort(s): Children of the NLSY79, NLSY79
Publisher: Elsevier
Keyword(s): Marital Satisfaction/Quality; Parental Influences; Parental Marital Status; Peabody Individual Achievement Test (PIAT- Math); Peabody Individual Achievement Test (PIAT- Reading); Peabody Picture Vocabulary Test (PPVT); US Collaborative Perinatal Project (CPP)

This paper employs recently developed marital matching models to examine empirically the role played by marital sorting in observed measures of marital production. Using the US Collaborative Perinatal Project (CPP), a large-scale study from the 1960s, and the National Longitudinal Survey of Youth 1979 (NLSY), we find that marital surplus is strongly correlated with indices of child quality, as measured by cognitive test scores, and with the durability of the marital union. At ages beyond infancy, the correlation between cognitive outcomes and marital surplus is robust to the inclusion of the parental characteristics that generate the match, suggesting that the correlation represents effects of the match itself. High marital surplus is associated with assortative mating on education and age, suggesting complementarity in parental inputs in child production. Our results suggest that marital surplus is an important input for child quality above and beyond its indirect effects on marital stability.
Bibliography Citation
Edwards, Ryan D. and Jennifer Roff. "What Mom and Dad's Match Means for Junior: Marital Sorting and Child Outcomes." Labour Economics 40 (June 2016): 43-56.
11. Engelhardt, Bryan
Fuller, David L.
Labor Force Participation and Pair-wise Efficient Contracts with Search and Bargaining
Labour Economics 19,3 (June 2012): 388-402.
Also: http://www.sciencedirect.com/science/article/pii/S0927537112000048
Cohort(s): NLSY97
Publisher: Elsevier
Keyword(s): Bargaining Model; Job Search; Labor Force Participation; Wage Models

A “constant” wage is pair-wise inefficient in a standard search model when workers endogenously separate from employment. We derive a pair-wise efficient employment contract that involves workers paying a hiring fee (or bond) upon the formation of a match. We estimate the constant wage and pair-wise efficient contract assuming the hiring fee is unobservable, and find evidence to reject the pair-wise efficient contract in favor of the constant wage rule. A counterfactual experiment reveals the current level of labor force participation to be 9.6% below the efficient level, and a structural shift to the pair-wise efficient contract improves welfare by roughly 3.5%.
Bibliography Citation
Engelhardt, Bryan and David L. Fuller. "Labor Force Participation and Pair-wise Efficient Contracts with Search and Bargaining." Labour Economics 19,3 (June 2012): 388-402.
12. Galizzi, Monica
Zagorsky, Jay L.
How Do On-the-Job Injuries and Illnesses Impact Wealth?
Labour Economics 16,1 (January 2009): 26-36.
Also: http://www.sciencedirect.com/science/article/pii/S0927537108000171
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Benefits; Health/Health Status/SF-12 Scale; Heterogeneity; Illnesses; Income; Income Distribution; Injuries, Workplace; Unemployment Compensation; Wage Differentials; Wealth; Well-Being

This research focuses on one neglected area of workers' compensation research, the effect of injury and illness on net worth. We track participants in the NLSY79: one-third of these baby boomers were hurt at work, but 38% of them did not file for workers' compensation. We find that the typical young baby boomer who is never injured has both much higher absolute wealth and wealth growth rates than boomers who are ever injured. Regression results that control for unobserved heterogeneity suggest, however, that the injury does not predict lower wealth unless workers have reported wage losses or spells off work because of their accidents. For these employees wealth is dramatically reduced, regardless of their participation in the workers' compensation system. We also find that injured workers significantly reduce their consumption over time. These results raise new questions about the adequacy of workers' compensation benefits and the quality of jobs injured workers are able to return to. They suggest that sudden health problems caused by occupational injuries may affect more than employers' costs and individuals' incomes; they may have also wider and longer lasting consequences in term of families' wealth and well-being.
Bibliography Citation
Galizzi, Monica and Jay L. Zagorsky. "How Do On-the-Job Injuries and Illnesses Impact Wealth?" Labour Economics 16,1 (January 2009): 26-36.
13. Ge, Suqin
Estimating the Returns to Schooling: Implications from a Dynamic Discrete Choice Model
Labour Economics 20 (January 2013): 92-105.
Also: http://www.sciencedirect.com/science/article/pii/S0927537112001121
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Educational Returns; Modeling, Instrumental Variables; Modeling, OLS; Schooling

This paper assesses the applicability of a dynamic discrete choice model in accounting for the observed ordinary least squares (OLS) and instrumental variable (IV) estimates of the Mincer equation parameter on returns to schooling. A dynamic model of schooling and employment choices is estimated and used to simulate educational attainment, employment history, and wages. Estimations of the Mincer wage equation using simulated data appear to validate the model. Ability selection is found to be the major source of bias in the OLS estimates of schooling returns. Although the IV estimates lie within the support of true returns to schooling if a strong and strictly exogenous instrument is used and if dynamic employment selection is controlled, these conditions may be easily violated in practice.
Bibliography Citation
Ge, Suqin. "Estimating the Returns to Schooling: Implications from a Dynamic Discrete Choice Model ." Labour Economics 20 (January 2013): 92-105.
14. Kahn, Lisa B.
The Long-Term Labor Market Consequences of Graduating From College in a Bad Economy
Labour Economics 17,2 (April 2010): 303-316.
Also: http://www.sciencedirect.com/science/article/pii/S0927537109001018
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Armed Forces Qualifications Test (AFQT); College Graduates; Economics, Demographic; Educational Attainment; Geocoded Data; Labor Market Outcomes; Labor Supply; Occupational Prestige; Occupational Status; Racial Differences; Wage Effects

This paper studies the labor market experiences of white-male college graduates as a function of economic conditions at time of college graduation. I use the National Longitudinal Survey of Youth whose respondents graduated from college between 1979 and 1989. I estimate the effects of both national and state economic conditions at time of college graduation on labor market outcomes for the first two decades of a career. Because timing and location of college graduation could potentially be affected by economic conditions, I also instrument for the college unemployment rate using year of birth (state of residence at an early age for the state analysis). I find large, negative wage effects of graduating in a worse economy which persist for the entire period studied. I also find that cohorts who graduate in worse national economies are in lower-level occupations, have slightly higher tenure and higher educational attainment, while labor supply is unaffected. Taken as a whole, the results suggest that the labor market consequences of graduating from college in a bad economy are large, negative and persistent. [Copyright Elsevier]
Bibliography Citation
Kahn, Lisa B. "The Long-Term Labor Market Consequences of Graduating From College in a Bad Economy." Labour Economics 17,2 (April 2010): 303-316.
15. Krashinsky, Harry
Urban Agglomeration, Wages and Selection: Evidence from Samples of Siblings
Labour Economics 18,1 (January 2011): 79-92.
Also: http://www.sciencedirect.com/science/article/pii/S0927537110000965#sec4
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Modeling, Fixed Effects; Siblings; Urbanization/Urban Living; Wages

The large and significant relationship between city population and wages has been well-established in the agglomeration literature, and the influence of selection effects on this wage premium is important. This paper contributes new evidence to the understanding of this premium by using two different data sets of siblings in order to estimate the agglomeration premium while controlling for unobserved heterogeneity with a family-specific fixed effect. The inclusion of a familial fixed effect into the regression framework makes the city size wage premium insignificant, and there is a large return to a variable representing the correlation between familial ability and residence in an urban area in all of the data sets used in the analysis. The results are discussed in the context of the existing literature, and they demonstrate the importance of family background and selection effects for interpreting the agglomeration premium, which is small in the fixed effects regression.
Bibliography Citation
Krashinsky, Harry. "Urban Agglomeration, Wages and Selection: Evidence from Samples of Siblings." Labour Economics 18,1 (January 2011): 79-92.
16. Kugler, Adriana D.
Employee Referrals and Efficiency Wages
Labour Economics 10,5 (October 2003): 531-557.
Also: http://www.sciencedirect.com/science/article/pii/S0927537103000472
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Modeling, Mixed Effects; Peers/Peer influence/Peer relations; Wage Differentials; Wage Models

Many workers believe personal contacts are crucial for obtaining jobs in high-wage sectors. On the other hand, firms in high-wage sectors report using employee referrals to screen and monitor new employees. This paper develops a matching model that can explain the link between inter-industry wage differentials and employee referrals. Referrals lower monitoring costs because high-effort referees can exert peer pressure on co-workers, allowing firms to pay lower efficiency wages. On the other hand, informal search provides fewer contacts than formal methods. In equilibrium, referrals match high-paying jobs to well-connected workers, while formal methods match less-attractive jobs to less-connected workers. Industry-level data show a positive correlation between industry wage premiums and employee referrals. Moreover, evidence using the National Longitudinal Survey of Youth (NLSY) shows similar OLS and fixed-effects estimates of the 'returns' to employee referrals, but insignificant effects after controlling for sector of employment. This evidence is more consistent with an efficiency wage explanation than either an ability or matching explanation of referrals. [Copyright 2003 Elsevier]
Bibliography Citation
Kugler, Adriana D. "Employee Referrals and Efficiency Wages." Labour Economics 10,5 (October 2003): 531-557.
17. Light, Audrey L.
McGee, Andrew Dunstan
Does Employer Learning Vary by Schooling Attainment? The Answer Depends on How Career Start Dates are Defined
Labour Economics 32 (January 2015): 57-66.
Also: http://www.sciencedirect.com/science/article/pii/S0927537114001456
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Career Patterns; Educational Attainment; Learning Hypothesis; Methods/Methodology; Transition, School to Work; Work Experience

We demonstrate that empirical evidence of employer learning is sensitive to how we define the career start date and, in turn, measure cumulative work experience. Arcidiacono et al. (2010) find evidence of employer learning for high school graduates but not for college graduates, and conclude that high levels of schooling reveal true productivity. We show that their choice of start date--based on nonenrollment at survey interview dates and often triggered by school vacation--systematically overstates experience and biases learning estimates towards zero for college-educated workers. Using career start dates tied to a more systematic definition of school exit, we find that employer learning is equally evident for high school and college graduates.
Bibliography Citation
Light, Audrey L. and Andrew Dunstan McGee. "Does Employer Learning Vary by Schooling Attainment? The Answer Depends on How Career Start Dates are Defined." Labour Economics 32 (January 2015): 57-66.
18. Lin, Dajun
Lutter, Randall
Ruhm, Christopher J.
Cognitive Performance and Labour Market Outcomes
Labour Economics 51 (April 2018): 121-135.
Also: https://www.sciencedirect.com/science/article/pii/S0927537117303329
Cohort(s): NLSY79, NLSY97
Publisher: Elsevier
Keyword(s): Armed Forces Qualifications Test (AFQT); Cognitive Ability; Earnings; Ethnic Differences; Income; Labor Market Outcomes; Racial Differences

We use the U.S. National Longitudinal Survey of Youth 1979 and other sources to examine how cognitive performance near the end of secondary schooling relates to labour market outcomes through age fifty. Our preferred estimates control for individual and family backgrounds, non-cognitive attributes, and survey years. We find that returns to cognitive skills rise with age. Although estimated gains in lifetime incomes are close to those reported earlier, our preferred estimates make multiple offsetting improvements. Returns to cognitive skill are greater for blacks and Hispanics than for non-Hispanic whites, both in relative and absolute terms, with gains in work hours being more important than in hourly wages.
Bibliography Citation
Lin, Dajun, Randall Lutter and Christopher J. Ruhm. "Cognitive Performance and Labour Market Outcomes." Labour Economics 51 (April 2018): 121-135.
19. Maclean, Johanna Catherine
Hill, Terrence D.
Leaving School in an Economic Downturn and Self-esteem across Early and Middle Adulthood
Labour Economics 37 (December 2015): 1-12.
Also: http://www.sciencedirect.com/science/article/pii/S0927537115000925
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Economic Changes/Recession; Geocoded Data; Rosenberg Self-Esteem Scale (RSES) (see Self-Esteem); Schooling; Self-Esteem; State-Level Data/Policy; Unemployment Rate

In this study, we test whether leaving school in an economic downturn impacts self-esteem across early and middle adulthood. Self-esteem is of interest to economists because it is an established determinant of important socioeconomic outcomes such as wages, crime, marriage, health, and civic engagement. Previous research suggests that leaving school in a downturn can depress career trajectories, and social psychological theory predicts that career success is an important determinant of self-esteem. We model responses to a standard measure of self-esteem (the Rosenberg Self-esteem Scale) as a function of the state unemployment rate at school-leaving. We address the potential endogeneity of time and location of school-leaving with instrumental variables. Our results suggest that leaving school in an economic downturn can undermine self-esteem over time.
Bibliography Citation
Maclean, Johanna Catherine and Terrence D. Hill. "Leaving School in an Economic Downturn and Self-esteem across Early and Middle Adulthood." Labour Economics 37 (December 2015): 1-12.
20. Majumdar, Sumon
Market Conditions and Worker Training: How Does It Affect and Whom?
Labour Economics 14,1 (January 2007): 1-23.
Also: http://www.sciencedirect.com/science/article/pii/S0927537105000412
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Human Capital; Occupational Choice; Training; Training, On-the-Job; Wage Differentials

This paper analyses the impact of labor market conditions on a firm's incentive to train its workers. In an equilibrium model of the labor market in which firms use both untrained and in-house-trained workers, we show that the incidence of training increases with the tightness of the labor market. In a multi-sector framework, the usual threat of hold-up by a trained worker is more severe for workers who change their sector of work; during downturns, this serves to bias firms' incentives in imparting training away from such workers and towards workers already in the firm and those new workers coming from the same sector. Evidence from the NLSY confirms both predictions--the incidence and duration of company-sponsored training is adversely affected by higher unemployment rates; furthermore, this negative effect is much stronger for workers who change industries as compared to those who do not.
Bibliography Citation
Majumdar, Sumon. "Market Conditions and Worker Training: How Does It Affect and Whom? ." Labour Economics 14,1 (January 2007): 1-23.
21. Martinez-Granado, Maite
Testing Labour Supply and Hours Constraints
Labour Economics 12,3 (June 2005): 321-344.
Also: http://www.sciencedirect.com/science/article/pii/S0927537104000053
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Endogeneity; Labor Supply; Mobility, Job; Work Hours

This paper provides empirical evidence that, at a given wage, individuals cannot freely choose the number of hours they work. The novelty relative to the existing literature (e.g. [Altonji, J., Paxson, C., 1986. Job characteristics and hours of work. In: Ehrenberg, R. (Ed.), Research in Labor Economics, vol. 8. Westview Press, Greenwich, 1-55]) is twofold. We use the US data on prime age males from the National Longitudinal Survey of Youth and we account for endogenous switching between jobs. Our results are: (i) the variance of the change in hours worked is more than six times higher for movers than for stayers; (ii) the intertemporal labour supply elasticity is positive and significant for movers and zero for stayers. This is further evidence for the presence of hours constraints. One important implication is that estimates of the labour supply elasticity that ignore these constraints are biased. [ABSTRACT FROM AUTHOR; Copyright 2005 Elsevier]
Bibliography Citation
Martinez-Granado, Maite. "Testing Labour Supply and Hours Constraints." Labour Economics 12,3 (June 2005): 321-344.
22. Mazza, Jacopo
van Ophem, Hans
Hartog, Joop
Unobserved Heterogeneity and Risk in Wage Variance: Does More Schooling Reduce Earnings Risk?
Labour Economics 24 (October 2013): 323-338.
Also: http://www.sciencedirect.com/science/article/pii/S0927537113001061
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): British Household Panel Survey (BHPS); Earnings; Educational Attainment; Educational Returns; German Socio-Economic Panel (GSOEP); Heterogeneity; Wage Theory

We apply a recently proposed method to disentangle unobserved heterogeneity from risk in returns to education to data for the USA, the UK and Germany. We find that in residual wage variation, uncertainty by far dominates unobserved heterogeneity. The relation between uncertainty and level of education is not monotonic and differs among countries.
Bibliography Citation
Mazza, Jacopo, Hans van Ophem and Joop Hartog. "Unobserved Heterogeneity and Risk in Wage Variance: Does More Schooling Reduce Earnings Risk?" Labour Economics 24 (October 2013): 323-338.
23. Munasinghe, Lalith Roshan
Expectations Matter: Job Prospects And Turnover Dynamics
Labour Economics 13,5 (October 2006): 589-609.
Also: http://www.sciencedirect.com/science/article/pii/S0927537105000138
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Current Population Survey (CPS) / CPS-Fertility Supplement; Heterogeneity; Job Satisfaction; Job Search; Job Tenure; Job Turnover; Labor Market Outcomes; Mobility, Job

This paper presents evidence on the effects of worker expectations on labor turnover, a topic largely ignored in the voluminous literature on labor mobility. Two survey instruments related to expected job duration and chances of promotion in the National Longitudinal Surveys of Youth are used to analyze the role of job prospects in predicting turnover dynamics. The key empirical finding is that workers with favorable job assessments have a lower and flatter tenure-turnover profile—i.e. the well-known negative structural relationship between the turnover rate and job tenure-than their counterparts with less favorable job assessments. This finding is consistent with search-and-matching theories that explicitly incorporate heterogeneity of prior beliefs about match quality. [ABSTRACT FROM AUTHOR; Copyright 2006 Elsevier]
Bibliography Citation
Munasinghe, Lalith Roshan. "Expectations Matter: Job Prospects And Turnover Dynamics." Labour Economics 13,5 (October 2006): 589-609.
24. Munasinghe, Lalith Roshan
Sigman, Karl
A Hobo Syndrome? Mobility, Wages, and Job Turnover
Labour Economics 11,2 (April 2004): 191-219.
Also: http://www.sciencedirect.com/science/article/pii/S0927537103000757
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Heterogeneity; Human Capital; Job Search; Job Turnover; Mobility, Interfirm; Mobility, Labor Market; Modeling, Fixed Effects; Wage Effects; Wage Growth; Wages

We present an analysis of labor mobility as a predictor of wages and job turnover. Data from the National Longitudinal Surveys of Youth show that workers with a history of less frequent job changes (stayers) earn higher wages and change jobs less frequently in the future than their more mobile counterparts (movers). These mobility effects on wages and turnover are stronger among more experienced workers, are highly robust across various model specifications, and persist despite corrections for unobserved individual fixed effects. In the second half of the paper we present a simple two period stochastic model of job mobility to study wages across movers and stayers. The model, incorporating salient features of human capital and job search, shows that whether stayers earn more than movers depend on the distribution of outside wage offers and firm-specific wage growth rate. Incorporating heterogeneity of wage growth rates among jobs increases the likelihood that stayers earn more than movers. [Copyright 2004 Elsevier]
Bibliography Citation
Munasinghe, Lalith Roshan and Karl Sigman. "A Hobo Syndrome? Mobility, Wages, and Job Turnover." Labour Economics 11,2 (April 2004): 191-219.
25. Polachek, Solomon W.
Robst, John Michael
Employee Labor Market Information: Comparing Direct World of Work Measures of Workers' Knowledge to Stochastic Frontier Estimates
Labour Economics 5,2 (June 1998): 231-242.
Also: http://www.sciencedirect.com/science/article/pii/S0927537197000304
Cohort(s): Young Men
Publisher: Elsevier
Keyword(s): Benefits; Benefits, Fringe; Training; Wage Differentials; Wage Levels

A number of papers use stochastic frontier estimation to measure a worker's incomplete information about available wages. These papers define incomplete information as the difference between a worker's wage and his or her maximum potential wage. Many question this approach since it essentially measures incomplete information as a residual, without independent evidence relating this residual to incomplete information. This paper introduces independent direct measures of workers' knowledge of the world of work obtained from the National Longitudinal Survey of Young Men (NLSYM). Frontier estimates of incomplete information are compared to the direct measures of workers' knowledge. The results verify that stochastic frontier estimates provide a reasonable measure of a worker's incomplete wage information.
Bibliography Citation
Polachek, Solomon W. and John Michael Robst. "Employee Labor Market Information: Comparing Direct World of Work Measures of Workers' Knowledge to Stochastic Frontier Estimates." Labour Economics 5,2 (June 1998): 231-242.
26. Rao, Neel
Social Effects in Employer Learning: An Analysis of Siblings
Labour Economics 38 (January 2016): 24-36.
Also: http://www.sciencedirect.com/science/article/pii/S0927537115001104
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Armed Forces Qualifications Test (AFQT); Human Capital; Siblings; Wages

This paper examines whether wages are based on information about personal contacts. I develop a theory of labor markets with imperfect information in which related workers have correlated abilities. I study wage setting under two alternative processes: individual learning, under which employers observe only a worker's own characteristics, and social learning, under which employers also observe those of a relative. Using sibling data from the NLSY79, I test for a form of statistical nepotism in which a sibling's performance is priced into a worker's wage. Empirically, an older sibling's test score has a larger impact on a younger sibling's log wage than a younger sibling's test score has on an older sibling's log wage. The estimates provide strong support for social effects in employer learning.
Bibliography Citation
Rao, Neel. "Social Effects in Employer Learning: An Analysis of Siblings." Labour Economics 38 (January 2016): 24-36.
27. Speer, Jamin D.
The Gender Gap in College Major: Revisiting the Role of Pre-college Factors
Labour Economics 44 (January 2017): 69-88.
Also: http://www.sciencedirect.com/science/article/pii/S0927537116304110
Cohort(s): NLSY79, NLSY97
Publisher: Elsevier
Keyword(s): Armed Services Vocational Aptitude Battery (ASVAB); College Major/Field of Study/Courses; Gender Differences; Noncognitive Skills; Test Scores/Test theory/IRT

This paper considers the importance of pre-college test scores in accounting for gender gaps in college major. Large gaps in major content exist: men are more likely to study math-, science-, and business-intensive fields, while women are more likely to study humanities-, social science-, and education-intensive fields. Previous research has found that gender differences in college preparation, typically measured by SAT scores, can account for only a small portion of these differences. Using a broader array of pre-college test scores (the ASVAB), I show that differences in college preparation can actually account for a large portion of most gender gaps in college major content, including 62% of the gap in science, 66% of the gap in humanities, and 47% of the gap in engineering. SAT scores explain less than half as much as the ASVAB scores, while noncognitive skill measures appear to explain none of the gaps in major. The gender gaps in test scores, particularly in science and mechanical fields, exist by the mid-teenage years and grow with age.
Bibliography Citation
Speer, Jamin D. "The Gender Gap in College Major: Revisiting the Role of Pre-college Factors." Labour Economics 44 (January 2017): 69-88.
28. Sullivan, Paul Joseph
Empirical Evidence on Occupation and Industry Specific Human Capital
Labour Economics 17,3 (June 2010): 567-580.
Also: http://www.sciencedirect.com/science/article/pii/S0927537109001286
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Firms; Human Capital; Job Tenure; Skilled Workers; Training, Occupational; Variables, Instrumental; Work Experience

This paper presents instrumental variables estimates of the effects of firm tenure, occupation specific work experience, industry specific work experience, and general work experience on wages using data from the 1979 Cohort of the National Longitudinal Survey of Youth. The estimates indicate that both occupation and industry specific human capital are key determinants of wages, and the importance of various types of human capital varies widely across one-digit occupations. Human capital is primarily occupation specific in occupations such as craftsmen, where workers realize a 14% increase in wages after five years of occupation specific experience but do not realize wage gains from industry specific experience. In contrast, human capital is primarily industry specific in other occupations such as managerial employment where workers realize a 23% wage increase after five years of industry specific work experience. In other occupations, such as professional employment, both occupation and industry specific human capital are key determinants of wages.
Bibliography Citation
Sullivan, Paul Joseph. "Empirical Evidence on Occupation and Industry Specific Human Capital." Labour Economics 17,3 (June 2010): 567-580.
29. Usui, Emiko
Wages, Non-Wage Characteristics, and Predominantly Male Jobs
Labour Economics 16,1 (January 2009): 52-63.
Also: http://dx.doi.org/10.1016/j.labeco.2008.04.001
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Gender Differences; Layoffs; Occupational Segregation; Occupations, Male; Panel Study of Income Dynamics (PSID); Quits; Wage Differentials

This paper estimates the wage premium associated with working in predominantly male jobs. It also examines whether this wage premium is greater than the compensation workers demand for the less desirable non-wage characteristics of such jobs. The coefficients of the change in the proportion of men in an occupation on the change in wages for quits and layoffs provide opposing biased estimates of the wage premium; because workers who voluntarily quit move to better matches, but those that are laid off accept jobs from the representative distribution of job offers. Specifically, when the premium paid over- (under-)compensates for undesirable work characteristics, the quit estimate is a downward (upward) biased estimate of the wage premium, while the layoff estimate is biased upward (downward). Results from the U.S. National Longitudinal Survey of Youth (NLSY) and the U.S. Panel Study of Income Dynamics (PSID) indicate that: (1) the estimated bounds of the wage premium are large; and (2) the wage premium overcompensates for the non-wage characteristics of male jobs.
Bibliography Citation
Usui, Emiko. "Wages, Non-Wage Characteristics, and Predominantly Male Jobs." Labour Economics 16,1 (January 2009): 52-63.
30. Webber, Douglas A.
The Lifetime Earnings Premia of Different Majors: Correcting for Selection Based on Cognitive, Noncognitive, and Unobserved Factors
Labour Economics 28 (June 2014): 14-23.
Also: http://www.sciencedirect.com/science/article/pii/S0927537114000281
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): American Community Survey; Cognitive Ability; College Major/Field of Study/Courses; Educational Returns; Noncognitive Skills

This paper constructs a simulation approach to estimate the lifetime returns to various college majors. I use data from the 1979 cohort of the National Longitudinal Survey of Youth and American Community Survey to estimate the parameters which form the backbone of the simulation. I address selection into both higher education and specific major categories using measures of cognitive and noncognitive ability. Additionally, I present the lifetime premia under various assumptions regarding the magnitude of unobservable sorting.

I find substantial heterogeneity in the returns to each educational outcome, ranging from $700,000 for Arts/Humanities majors to $1.5 million for Science Technology Engineering or Math (STEM) graduates (each premium is relative to high school graduates with no college experience). The differentials are larger when search behavior (allowing for differential unemployment probabilities across majors) is taken into account. Finally, I estimate the major premia separately across three birth cohorts to account for the changing nature of selection into both college and majors over time.

Bibliography Citation
Webber, Douglas A. "The Lifetime Earnings Premia of Different Majors: Correcting for Selection Based on Cognitive, Noncognitive, and Unobserved Factors." Labour Economics 28 (June 2014): 14-23.
31. Wellington, Alison
Self-employment: The New Solution for Balancing Family and Career?
Labor Economics 13,3 (June 2006): 357-386.
Also: http://ideas.repec.org/a/eee/labeco/v13y2006i3p357-386.html
Cohort(s): NLSY79, Young Women
Publisher: Elsevier
Keyword(s): Education; Educational Status; Family Studies; Marriage; Maternal Employment; Self-Employed Workers; Wives; Wives, Work; Women

We examine the hypothesis that white married women, particularly more educated women, are increasingly choosing self-employment as a strategy to balance family and career. We test two models using data from the CPS, NLS and NLSY, to examine the determinants of self-employment for women in the late 1970s, 1980s and 1990s. Our findings suggest that married women with greater family responsibilities are more likely to be self-employed, and these impacts are stronger for more educated women. However, we find little support for the hypothesis that women are more likely in recent years to choose self-employment in response to family demands.
Bibliography Citation
Wellington, Alison. "Self-employment: The New Solution for Balancing Family and Career?" Labor Economics 13,3 (June 2006): 357-386.
32. Williams, Donald R.
Consequences in Self-Employment for Women and Men in the United States
Labour Economics 7,5 (September 2000): 665-687.
Also: http://www.sciencedirect.com/science/article/pii/S0927537100000178
Cohort(s): NLSY79, Young Women
Publisher: Elsevier
Keyword(s): Human Capital; Self-Employed Workers; Wage Effects; Wages, Men; Wages, Women; Women

Many self-employed workers return to the wage and salaried sector of the labor market after some time. It is possible that the self-employment spell will lead to lower earnings or earnings growth upon return, due to depreciation of firm or sector-specific human capital. Using longitudinal data from the National Longitudinal Survey of Young Women (NLS), this paper examines the effects of spells of self-employment on the future wage and salary sector earnings of male and female workers in the United States. The results indicate substantial penalties arise for women, in terms of returns to experience, while there is little or no impact for men.
Bibliography Citation
Williams, Donald R. "Consequences in Self-Employment for Women and Men in the United States." Labour Economics 7,5 (September 2000): 665-687.
33. Yamaguchi, Shintaro
Career Progression and Comparative Advantage
Labour Economics 17,4 (August 2010): 679-689.
Also: http://www.sciencedirect.com/science/article/pii/S0927537110000102
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Career Patterns; Human Capital; Job Characteristics; Modeling; Occupational Choice; Occupations; Skills

This paper constructs and estimates a structural dynamic model of occupational choice in which all occupations are characterized in a skill requirement space using data from the Dictionary of Occupational Titles and the NLSY79. This skill requirement space approach has its merit in computational simplicity as well as ease of interpretation: it allows the model to include hundreds of occupations at the three-digit census classification level without a large number of parameters. Parameter estimates indicate that wages grow with the skill requirements of an occupation and that educated and experienced individuals are better rewarded in a cognitive and interpersonal skill demanding occupation. They also suggest that ignoring self-selection into occupations and individual heterogeneity may result in counter-intuitive and biased estimates of the returns to skill requirements.
Bibliography Citation
Yamaguchi, Shintaro. "Career Progression and Comparative Advantage." Labour Economics 17,4 (August 2010): 679-689.
34. Yamaguchi, Shintaro
The Effect of Match Quality and Specific Experience on Career Decisions and Wage Growth
Labour Economics 17,2 (April 2010): 407-423.
Also: http://ideas.repec.org/a/eee/labeco/v17y2010i2p407-423.html
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Career Patterns; Firms; Human Capital; Mobility, Occupational; Modeling; Occupational Choice; Wage Growth

This paper constructs and estimates a career decision model where individuals search for both careers and firms that are a good match for their idiosyncratic skills using the NLSY79. It departs from previous papers in that career mobility decisions and participation decisions are explicitly modeled. I find substantial returns to career-specific experience. However, college graduates' wage grows little through career-match upgrading, which results in a lower incidence of career changes than high school graduates. The finding suggests that college graduates learn about their suitable careers before they enter a labor market.
Bibliography Citation
Yamaguchi, Shintaro. "The Effect of Match Quality and Specific Experience on Career Decisions and Wage Growth." Labour Economics 17,2 (April 2010): 407-423.
35. Zhang, Yahong
A Search Interpretation of the Family Gap
Labour Economics 19,2 (April 2012): 186-197.
Also: http://www.sciencedirect.com/science/article/pii/S0927537111001102
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Job Search; Labor Force Participation; Maternal Employment; Mothers; Wage Differentials; Wage Gap

This paper proposes a general equilibrium search model to investigate what is known as the family gap: wage differentials between mothers and non-mothers. In the human capital literature a substantial amount of the family gap is left unexplained after controlling for schooling and experience. This paper suggests that differences in labor market behavior between mothers and non-mothers are an important factor in explaining the family gap. For college graduates, estimation results show that employed mothers search 70% less than non-mothers and more than 50% of the family gap can be explained by the labor market behavior differences between mothers and non-mothers. Such differences, however, can not explain the family gap for high school graduates.
Bibliography Citation
Zhang, Yahong. "A Search Interpretation of the Family Gap ." Labour Economics 19,2 (April 2012): 186-197.