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Author: Pavan, Ronni
Resulting in 3 citations.
1. Canon, Maria E.
Pavan, Ronni
Wage Dynamics and Labor Market Transitions: A Reassessment through Total Income and "Usual" Wages
Working Paper 2014-032A, Federal Reserve Bank of St. Louis, October 2014.
Also: https://research.stlouisfed.org/wp/2014/2014-032.pdf
Cohort(s): NLSY79
Publisher: Federal Reserve Bank of St. Louis
Keyword(s): Earnings; Income Dynamics/Shocks; Transition, Job to Job; Wage Dynamics

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

We present a simple on-the-job search model in which workers can receive shocks to their employer-specific productivity match. Because the firm-specific match can vary, wages may increase or decrease over time at each employer. Therefore, for some workers, job-to-job transitions are a way to escape job situations that worsened over time. We use two independent measures of workers compensation to provide a convincing identification strategy for the presence of a job-specific or employer-specific wage shock process. In the first measure, workers are asked about the usual wage they earn with a certain employer. In the second measure, workers are asked about their total amount of labor earnings during the previous year. While the first measure records the wages at a given point in time, the second measure records the sum of all wages within one year. We calibrate our model using both measures of workers compensation and data on employment transitions. The results show that 59% of the observed wage cuts following job-to-job transitions are due to deterioration of the firm-specific component of wages before workers switch employers.
Bibliography Citation
Canon, Maria E. and Ronni Pavan. "Wage Dynamics and Labor Market Transitions: A Reassessment through Total Income and "Usual" Wages." Working Paper 2014-032A, Federal Reserve Bank of St. Louis, October 2014.
2. Pavan, Ronni
Career Choice and Wage Growth
Journal of Labor Economics 29,3 (July 2011): 549-587.
Also: http://www.jstor.org/stable/full/10.1086/659346
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): Career Patterns; Human Capital; Industrial Classification; Occupations; Wage Growth

In this article, I present structural estimates of a search model that flexibly incorporates general human capital accumulation along with career and firm choice, where a career is empirically identified as a combination of industry and occupation. I use these estimates to empirically distinguish between the relative importance of various factors for generating wage growth over the life cycle. Evidence presented in the article highlights the importance of considering the two-stage search process that originates from the model. In particular, I demonstrate that previous instrumental variables methods dramatically underestimate the importance of firm-specific matches for wage growth.
Bibliography Citation
Pavan, Ronni. "Career Choice and Wage Growth." Journal of Labor Economics 29,3 (July 2011): 549-587.
3. Pavan, Ronni
On the Production of Skills and the Birth-Order Effect
Journal of Human Resources 51,3 (1 August 2016): 699-726.
Also: http://jhr.uwpress.org/content/51/3/699.abstract
Cohort(s): Children of the NLSY79, NLSY79, NLSY79 Young Adult
Publisher: University of Wisconsin Press
Keyword(s): Birth Order; Cognitive Ability; Parental Investments; Siblings

First-born children tend to outperform their younger siblings on measures such as cognitive exams, wages, educational attainment, and employment. Using a framework similar to Cunha and Heckman (2008) and Cunha, Heckman, and Schennach (2010), this paper finds that differences in parents' investments across siblings can account for more than one-half of the gap in cognitive skills among siblings. The study's framework accommodates for endogeneity in parents' investments, measurement error, missing observations, and dynamic impacts of parental investments.
Bibliography Citation
Pavan, Ronni. "On the Production of Skills and the Birth-Order Effect." Journal of Human Resources 51,3 (1 August 2016): 699-726.