Search Results

View Selected Citations Select and View All Search Citations

Source: Review of Economic Dynamics

Resulting in 16 citations.

1.	Barlevy, Gadi Nagaraja, H.N.
1.	Estimating Mobility Rates in Search Models with Initial Condition Problems Review of Economic Dynamics 13,4 (October 2010): 780-799. Also:http://www.sciencedirect.com/science/article/pii/S1094202509000672 Cohort(s): NLSY79 Publisher: Society for Economic Dynamics Keyword(s): Job Search; Job Tenure; Job Turnover; Mobility; Modeling, Hazard/Event History/Survival/Duration; Wage Differentials; Wage Growth Permission to reprint the abstract has not been received from the publisher. Previous empirical work on job search has proposed different approaches to estimating mobility rates assumed in models of search. However, these methods either only work for specific models of wage determination, or else require that we know the initial distribution of productivity for workers in our sample. In this paper we show it is possible to estimate mobility rates without having to restrict attention to models in which wages are constant over the course of a job or to assume that the initial distribution of productivity is known. More generally, the approach we propose allows us to freely estimate one degree of unobserved heterogeneity, be it in initial conditions or mobility rates. Applying our results to data from the NLSY suggests that the theoretical restrictions on the initial distribution of productivity implied by the standard model can overstate the extent of frictions to upward mobility.
	Bibliography Citation Barlevy, Gadi and H.N. Nagaraja. "Estimating Mobility Rates in Search Models with Initial Condition Problems ." Review of Economic Dynamics 13,4 (October 2010): 780-799. Also:http://www.sciencedirect.com/science/article/pii/S1094202509000672.

2.	Baydur, Ismail Mukoyama, Toshihiko
2.	Job Duration and Match Characteristics over the Business Cycle Review of Economic Dynamics published online (4 February 2020): DOI: 10.1016/j.red.2020.01.003. Also: https://www.sciencedirect.com/science/article/pii/S1094202520300053 Cohort(s): NLSY79 Publisher: Elsevier Keyword(s): Job Tenure; Labor Turnover; Modeling, Hazard/Event History/Survival/Duration; Unemployment This paper studies the cyclical behavior of job separation and the characteristics of matches between workers and jobs. We estimate a proportional hazard model with competing risks, distinguishing between different types of separations. A higher unemployment rate at the start of an employment relationship increases the probability of job-to-job transitions, whereas its effect on employment-to-unemployment transitions is negative. We then build a simple job-ladder model to interpret our empirical results. A model with two-dimensional heterogeneity in match (job) characteristics has the same qualitative features as the data. Once the model is calibrated to include cyclicality in the offered match characteristics, it can fit the quantitative features of the data.
	Bibliography Citation Baydur, Ismail and Toshihiko Mukoyama. "Job Duration and Match Characteristics over the Business Cycle." Review of Economic Dynamics published online (4 February 2020): DOI: 10.1016/j.red.2020.01.003.

3.	Braun, Christine
3.	Crime and the Minimum Wage Review of Economic Dynamics 32 (April 2019): 122-152. Also: https://www.sciencedirect.com/science/article/pii/S1094202518302941 Cohort(s): NLSY97 Publisher: Society for Economic Dynamics Keyword(s): Crime; Geocoded Data; Labor Market Outcomes; Minimum Wage; State-Level Data/Policy Permission to reprint the abstract has not been received from the publisher. How does the minimum wage affect crime rates? Empirical research suggests that increasing a worker's wage can deter him from committing crimes. On the other hand, if that worker becomes displaced as a result of the minimum wage, he may be more likely to commit a crime. In this paper, I describe a frictional world in which a worker's criminal actions are linked to his labor market outcomes. The model is calibrated to match labor market outcomes and crime decisions of workers from the National Longitudinal Survey of Youth 1997, and shows that the relationship between the aggregate crime rate and the minimum wage is U-shaped. The results from the calibrated model, as well as empirical evidence from county level crime data and state level minimum wage changes from 1995 to 2014, suggest that the crime minimizing minimum to median wage ratio for 16 to 19 year olds is 0.91. However, the welfare maximizing minimum to median wage ratio is 0.87, not equal to the crime minimizing value. The median wage of 16 to 19 year olds in the United States in 2018 was $10, suggesting that any federal minimum wage increase up to $8.70 may be welfare improving.
	Bibliography Citation Braun, Christine. "Crime and the Minimum Wage." Review of Economic Dynamics 32 (April 2019): 122-152.

4.	Carrillo-Tudela, Carlos Smith, Eric
4.	Search Capital Review of Economic Dynamics 23 (January 2017): 191-211. Also: http://www.sciencedirect.com/science/article/pii/S1094202516300345 Cohort(s): NLSY79 Publisher: Society for Economic Dynamics Keyword(s): Employment History; Job Search Permission to reprint the abstract has not been received from the publisher. This paper first documents the extent of return employment: workers returning to employers they worked for previously within the same employment spell. Employer returns are typically involuntary and lead to lower earnings. To understand these features, the paper then develops an equilibrium model of worker recall and on-the-job search in which job seekers hold onto information they acquire about job opportunities as insurance in the event of a job destruction shock. Allowing workers to recall contacts increases the probability of a job-to-job transition with the number of jobs previously held during the employment spell while the probability of an job-to-unemployment transition decreases. These transition patterns are consistent with empirical evidence.
	Bibliography Citation Carrillo-Tudela, Carlos and Eric Smith. "Search Capital." Review of Economic Dynamics 23 (January 2017): 191-211.

5.	Castex, Gonzalo
5.	College Risk and Return Review of Economic Dynamics 26 (October 2017): 91-112. Also: http://www.sciencedirect.com/science/article/pii/S109420251730039X Cohort(s): NLSY79 Publisher: Society for Economic Dynamics Keyword(s): Armed Forces Qualifications Test (AFQT); Cognitive Ability; College Dropouts; College Education; Educational Returns; Family Income Permission to reprint the abstract has not been received from the publisher. A large number of studies report high returns to college education. However, a large fraction of high school graduates do not pursue higher education. To reconcile these facts, I develop a heterogeneous-agent life-cycle model with endogenous college enrollment and uninsurable risk of college completion. The risk of failing to complete college explains 14% (18%) of returns to a 4-year (2-year) college. Risk premium varies with individual ability and family income. Using the model, I analyze how costs and benefits of college education affect enrollments and dropouts. Model predictions are consistent with trends in enrollment and dropout observed in the data and findings in related literature.
	Bibliography Citation Castex, Gonzalo. "College Risk and Return." Review of Economic Dynamics 26 (October 2017): 91-112.

6.	Daruich, Diego Kozlowski, Julian
6.	Explaining Intergenerational Mobility: The Role of Fertility and Family Transfers Review of Economic Dynamics 36 (April 2020): 220-245. Also: https://www.sciencedirect.com/science/article/pii/S1094202518305702 Cohort(s): NLSY79 Publisher: Society for Economic Dynamics Keyword(s): Family Size; Fertility; Intergenerational Patterns/Transmission; Mobility; Panel Study of Income Dynamics (PSID); Transfers, Family Permission to reprint the abstract has not been received from the publisher. Poor families have more children and transfer less resources to them. This suggests that family decisions about fertility and transfers dampen intergenerational mobility. To evaluate the quantitative importance of this mechanism, we extend the standard heterogeneous-agent life cycle model with earnings risk and credit constraints to allow for endogenous fertility, family transfers, and education. The model, estimated to the US in the 2000s, implies that a counterfactual flat income-fertility profile would--through the equalization of initial conditions--increase intergenerational mobility by 6%. The impact of a counterfactual constant transfer per child is twice as large.
	Bibliography Citation Daruich, Diego and Julian Kozlowski. "Explaining Intergenerational Mobility: The Role of Fertility and Family Transfers." Review of Economic Dynamics 36 (April 2020): 220-245.

7.	Elminejad, Ali Havranek, Tomas Horvath, Roman Irsova, Zuzana
7.	Intertemporal Substitution in Labor Supply: A Meta-Analysis Review of Economic Dynamics 51 (December 2023): 1095-1113. Also: https://doi.org/10.1016/j.red.2023.10.001 Cohort(s): NLSY79, NLSY97 Publisher: Society for Economic Dynamics Keyword(s): Economic Behaviors; Economic Conditions; Government Policy; Labor Force Participation; Labor Supply; Labor Supply, Elasticity of; Work Attitudes; Work Histories; Work, Willingness to Permission to reprint the abstract has not been received from the publisher. The intertemporal substitution (Frisch) elasticity of labor supply governs how structural models predict changes in people's willingness to work in response to changes in economic conditions or government fiscal policy. We show that the mean reported estimates of the elasticity are exaggerated due to publication bias. For both the intensive and extensive margins the literature provides over 700 estimates, with a mean of 0.5 in both cases. Correcting for publication bias and emphasizing quasi-experimental evidence reduces the mean intensive margin elasticity to 0.2 and renders the extensive margin elasticity tiny. A total hours elasticity of about 0.25 is the most consistent with empirical evidence. To trace the differences in reported elasticities to differences in estimation context, we collect 23 variables reflecting study design and employ Bayesian and frequentist model averaging to address model uncertainty. On both margins the elasticity is systematically larger for women and workers near retirement, but not enough to support a total hours elasticity above 0.5.
	Bibliography Citation Elminejad, Ali, Tomas Havranek, Roman Horvath and Zuzana Irsova. "Intertemporal Substitution in Labor Supply: A Meta-Analysis." Review of Economic Dynamics 51 (December 2023): 1095-1113.

8.	Flinn, Christopher Gemici, Ahu Laufer, Steven
8.	Search, Matching and Training Review of Economic Dynamics 25 (April 2017): 260-297. Also: http://www.sciencedirect.com/science/article/pii/S1094202517300224 Cohort(s): NLSY97 Publisher: Society for Economic Dynamics Keyword(s): Human Capital; Modeling; Training; Transition, Job to Job; Wage Growth Permission to reprint the abstract has not been received from the publisher. We estimate a partial and general equilibrium search model in which firms and workers choose how much time to invest in both general and match-specific human capital. To help identify the model parameters, we use NLSY data on worker training and we match moments that relate the incidence and timing of observed training episodes to outcomes such as wage growth and job-to-job transitions. We use our model to offer a novel interpretation of standard Mincer wage regressions in terms of search frictions and returns to training. Finally, we show how a minimum wage can reduce training opportunities and decrease the amount of human capital in the economy.
	Bibliography Citation Flinn, Christopher, Ahu Gemici and Steven Laufer. "Search, Matching and Training." Review of Economic Dynamics 25 (April 2017): 260-297.

9.	Gihleb, Rania Lifshitz, Osnat
9.	Dynamic Effects of Educational Assortative Mating on Labor Supply Review of Economic Dynamics published online (8 October 2021): DOI: 10.1016/j.red.2021.10.001. Also: https://www.sciencedirect.com/science/article/pii/S1094202521000740 Cohort(s): NLSY79 Publisher: Society for Economic Dynamics Keyword(s): Assortative Mating; Educational Attainment; Gender Differences; Marital Status; Unemployment Rate; Work Experience Permission to reprint the abstract has not been received from the publisher. The gender education gap has undergone a transition in the post-war period, from favoring men to favoring women. As a result, in 30% of young American couples, the wife is more educated than the husband. These "married down" women display substantially higher employment rates, relative to women with husbands with the same or higher level of educational attainment. We argue that the interaction between work and marital decisions can explain the higher employment rates of women who marry down. Returns to experience are key in this mechanism, since they lock in early employment choices. We formulate a dynamic life cycle model of marriage and divorce, with endogenous labor supply decisions, and structurally estimate it using NLSY79. We show that returns to experience account for 45% of the employment gap between married down women and married up women. The estimates further suggest that the changes in educational sorting patterns across cohorts can explain 11% of the rise in married women's employment between the 1945 and 1965 cohorts. Finally, we simulate a shift from joint to individual taxation. The model predicts a larger increase in married down women's employment rate.
	Bibliography Citation Gihleb, Rania and Osnat Lifshitz. "Dynamic Effects of Educational Assortative Mating on Labor Supply." Review of Economic Dynamics published online (8 October 2021): DOI: 10.1016/j.red.2021.10.001.

10.	Gilleskie, Donna B. Han, Euna Norton, Edward C.
10.	Disentangling the Contemporaneous and Dynamic Effects of Human and Health Capital on Wages over the Life Cycle Review of Economic Dynamics 25 (April 2017): 350-383. Also: http://www.sciencedirect.com/science/article/pii/S1094202517300418 Cohort(s): NLSY79 Publisher: Society for Economic Dynamics Keyword(s): Body Mass Index (BMI); Human Capital; Life Cycle Research; Wage Levels; Wage Penalty/Career Penalty; Wages, Women; Weight Permission to reprint the abstract has not been received from the publisher. We quantify the life-cycle effects of human and health capital on the wage distribution of women, with a focus on health capital measured by body mass. We use NLSY79 data on women followed annually up to twenty years during the time of their lives when average annual weight gain is greatest. We measure the wage impact of current body mass (i.e., the contemporaneous or direct effect) while controlling for observed measures of human capital (namely, educational attainment, employment experience, marital status tenure, and family size) and the impacts of an evolving body mass (i.e., the dynamic or indirect effects) on the endogenous histories of behaviors that produce these human capital stocks. We find significant differences in the contemporaneous and dynamic effects of body mass on wages by age, by race, and by wage level.
	Bibliography Citation Gilleskie, Donna B., Euna Han and Edward C. Norton. "Disentangling the Contemporaneous and Dynamic Effects of Human and Health Capital on Wages over the Life Cycle." Review of Economic Dynamics 25 (April 2017): 350-383.

11.	Hai, Rong Heckman, James J.
11.	Inequality in Human Capital and Endogenous Credit Constraints Review of Economic Dynamics 25 (April 2017): 4-36. Also: http://www.sciencedirect.com/science/article/pii/S1094202517300029 Cohort(s): NLSY97 Publisher: Society for Economic Dynamics Keyword(s): Age at First Intercourse; Armed Services Vocational Aptitude Battery (ASVAB); Behavior, Violent; Cognitive Ability; Credit/Credit Constraint; Debt/Borrowing; Educational Attainment; Human Capital; Net Worth; Parental Investments; Wealth Permission to reprint the abstract has not been received from the publisher. This paper investigates the determinants of inequality in human capital with an emphasis on the role of the credit constraints. We develop and estimate a model in which individuals face uninsured human capital risks and invest in education, acquire work experience, accumulate assets and smooth consumption. Agents can borrow from the private lending market and from government student loan programs. The private market credit limit is explicitly derived by extending the natural borrowing limit of Aiyagari (1994) to incorporate endogenous labor supply, human capital accumulation, psychic costs of working, and age. We quantify the effects of cognitive ability, noncognitive ability, parental education, and parental wealth on educational attainment, wages, and consumption. We conduct counterfactual experiments with respect to tuition subsidies and enhanced student loan limits and evaluate their effects on educational attainment and inequality. We compare the performance of our model with an influential ad hoc model in the literature with education-specific fixed loan limits. We find evidence of substantial life cycle credit constraints that affect human capital accumulation and inequality. The constrained fall into two groups: those who are permanently poor over their lifetimes and a group of well-endowed individuals with rising high levels of acquired skills who are constrained early in their life cycles. Equalizing cognitive and noncognitive ability has dramatic effects on inequality. Equalizing parental backgrounds has much weaker effects. Tuition costs have weak effects on inequality. Note: Previously published as NBER Working Paper No. 22999, December 2016.
	Bibliography Citation Hai, Rong and James J. Heckman. "Inequality in Human Capital and Endogenous Credit Constraints." Review of Economic Dynamics 25 (April 2017): 4-36.

12.	Lise, Jeremy Meghir, Costas Robin, Jean-Marc
12.	Matching, Sorting and Wages Review of Economic Dynamics 19 (January 2016): 63-87. Also: http://www.sciencedirect.com/science/article/pii/S109420251500071X Cohort(s): NLSY79 Publisher: Society for Economic Dynamics Keyword(s): Employment History; Job Search; Modeling; Wage Determination Permission to reprint the abstract has not been received from the publisher. We develop an empirical search-matching model which is suitable for analyzing the wage, employment and welfare impact of regulation in a labor market with heterogeneous workers and jobs. To achieve this we develop an equilibrium model of wage determination and employment which extends the current literature on equilibrium wage determination with matching and provides a bridge between some of the most prominent macro models and microeconometric research. The model incorporates productivity shocks, long-term contracts, on-the-job search and counter-offers. Importantly, the model allows for the possibility of assortative matching between workers and jobs due to complementarities between worker and job characteristics. We use the model to estimate the potential gain from optimal regulation and we consider the potential gains and redistributive impacts from optimal unemployment benefit policy. Here optimal policy is defined as that which maximizes total output and home production, accounting for the various constraints that arise from search frictions. The model is estimated on the NLSY using the method of moments.
	Bibliography Citation Lise, Jeremy, Costas Meghir and Jean-Marc Robin. "Matching, Sorting and Wages." Review of Economic Dynamics 19 (January 2016): 63-87.

13.	Mustre-Del-Rio, Jose
13.	Wealth and Labor Supply Heterogeneity Review of Economic Dynamics 18,3 (July 2015): 619-634. Also: http://www.sciencedirect.com/science/article/pii/S1094202514000519 Cohort(s): NLSY79 Publisher: Society for Economic Dynamics Keyword(s): Heterogeneity; Labor Supply; Modeling; Wages; Wealth Permission to reprint the abstract has not been received from the publisher. This paper examines the importance of ex-ante heterogeneity for understanding the relationship between wealth and labor supply when markets are incomplete. An infinite horizon model is estimated where labor supply is indivisible and households are ex-ante heterogeneous in their labor disutility and market skills. The model replicates key features of the distribution of employment, wages, and wealth observed in the data. Importantly, it reverses the prediction that employment falls with wealth, a pervasive feature of models without ex-ante heterogeneity. A byproduct of the model's empirical performance is that it implies labor supply responses to unanticipated wages changes (e.g., Frisch elasticities) that are a half to two-thirds of those recovered from models with only ex-post heterogeneity.
	Bibliography Citation Mustre-Del-Rio, Jose. "Wealth and Labor Supply Heterogeneity." Review of Economic Dynamics 18,3 (July 2015): 619-634.

14.	Navarro, Salvador Zhou, Jin
14.	Identifying Agent's Information Sets: An Application to a Lifecycle Model of Schooling, Consumption and Labor Supply Review of Economic Dynamics 25 (April 2017): 58-92. Also: http://www.sciencedirect.com/science/article/pii/S1094202517300297 Cohort(s): NLSY79 Publisher: Society for Economic Dynamics Keyword(s): Assets; College Education; High School Completion/Graduates; Household Income; Life Cycle Research; Panel Study of Income Dynamics (PSID); Wages Permission to reprint the abstract has not been received from the publisher. We adapt the insight of Cunha et al. (2005) to develop a methodology that distinguishes information unknown to the econometrician but forecastable by the agent from information unknown to both, at each point in an agent's lifecycle. Predictable variability and uncertainty have different implications in terms of welfare, especially when markets are incomplete. We apply our procedure in the context of an incomplete markets lifecycle model of consumption, labor supply, and schooling decisions, when borrowing limits arise from repayment constraints. Using microdata on earnings, hours worked, schooling choices, and consumption of white males in the US, we infer the agent's information set. We then estimate the model using the identified agent's information set. We find that 52% and 56% of the variance of college and high school log wages respectively are predictable by the agent at the time schooling choices are made. When we complete the market, college attendance increases from 48% to 59%, about half of this increase is due to uncertainty, and the other half because of the borrowing limits. To illustrate the importance of assumptions about what is forecastable by the agent, we simulate a minimum wage insurance policy under different assumptions about the information available to the agents in the model. When we allow for asymmetric information between the insurance institution and the individual, adverse selection turns profits negative. Consumer welfare, however, increases by about 28% when we give individuals access to their estimated information set regardless of asymmetries.
	Bibliography Citation Navarro, Salvador and Jin Zhou. "Identifying Agent's Information Sets: An Application to a Lifecycle Model of Schooling, Consumption and Labor Supply." Review of Economic Dynamics 25 (April 2017): 58-92.

15.	Rauh, Christopher Valladares-Esteban, Arnau
15.	On the Black-White Gaps in Labor Supply and Earnings over the Lifecycle in the US Review of Economic Dynamics published online (24 April 2023): DOI: 10.1016/j.red.2023.04.001. Also: https://www.sciencedirect.com/science/article/pii/S1094202523000169 Cohort(s): NLSY79 Publisher: Society for Economic Dynamics Keyword(s): Human Capital; Labor Supply; Racial Equality/Inequality; Test Scores/Test theory/IRT; Wage Gap Permission to reprint the abstract has not been received from the publisher. In the US economy, Black men, on average, receive lower wages than White men, and the difference increases over the working life. The employment rate and the number of hours worked are also lower for Blacks, but the gap is nearly constant. Together these facts suggest that on-the-job human capital accumulation might explain the diverging wages. However, the wage gap and its evolution over the lifecycle cannot be explained by differences in accumulated experience or educational attainment for the cohort we analyze. Instead, the combination of experience and test scores measured at ages 17-22 accounts for the wage gap and its growth. We propose an on-the-job human capital accumulation model with heterogeneity in the initial human capital endowment and the lifelong ability to accumulate human capital, and endogenous labor supply at the extensive and intensive margins to explain the evolution of the Black-White wage gap over the lifecycle. We discipline the distribution of the ability to accumulate human capital using the power of test scores to predict earnings growth in the data. We find that if the pre-market distributions were the same for Blacks and Whites, the racial gap in hourly earnings would be closed by 84%, with the remaining gap opening throughout life due to higher labor supply amongst White men. That is, the unequal conditions with which men in the two groups enter the labor market are likely to be the key determinant of the differences over the lifecycle.
	Bibliography Citation Rauh, Christopher and Arnau Valladares-Esteban. "On the Black-White Gaps in Labor Supply and Earnings over the Lifecycle in the US." Review of Economic Dynamics published online (24 April 2023): DOI: 10.1016/j.red.2023.04.001.

16.	Sheran, Michelle Elizabeth
16.	Career and Family Choices of Women: A Dynamic Analysis of Labor Force Participation, Schooling, Marriage, and Fertility Decisions Review of Economic Dynamics 10,3 (July 2007): 367-399 Cohort(s): NLSY79 Publisher: Society for Economic Dynamics Keyword(s): Career Patterns; Fertility; Human Capital; Labor Economics; Labor Force Participation; Labor Market, Secondary; Life Cycle Research; Marriage; Schooling Permission to reprint the abstract has not been received from the publisher. This paper formulates and estimates a discrete time, discrete choice dynamic labor supply model in which marriage, fertility, and education are choice variables. The dynamics of these choices are captured by various forms of state and duration dependence. Uncertainty comes from the imperfect control women have over births and from a choice-specific random shock to utility each period. Women choose different career and family life-cycle paths because of these uncertainties and also because they have different tastes. The structural parameters of the model are estimated using maximum likelihood estimation techniques with data from the National Longitudinal Survey of Youth. [Copyright 2007 Elsevier] Copyright of Review of Economic Dynamics is the property of Academic Press Inc. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts)
	Bibliography Citation Sheran, Michelle Elizabeth. "Career and Family Choices of Women: A Dynamic Analysis of Labor Force Participation, Schooling, Marriage, and Fertility Decisions." Review of Economic Dynamics 10,3 (July 2007): 367-399 .

Admin