Search Results

Source: International Economic Review
Resulting in 18 citations.
1. Akerlof, George A.
Main, Brian G.
Maximum Likelihood Estimation with Pooled Observations: An Example from Labor Economics
International Economic Review 21,3 (October 1980): 507-515.
Also: http://www.jstor.org/stable/2526348
Cohort(s): Older Men
Publisher: U.S. International Trade Commission
Keyword(s): Data Quality/Consistency; Employment; Longitudinal Data Sets; Research Methodology; Unemployment

The difficulty of pooled observations in a data base arises when, for each sample point, some characteristic is measured exactly up to a certain level, but no record is made if the characteristic should exceed that boundary. This poses obvious problems if it is desired to perform a maximum likelihood estimate of the probability of an event. It is shown that whereas most researchers use ad hoc methods, it is possible to solve this problem by a non-ad hoc procedure which is illustrated by an example from labor economics. The example arises from a study of the weekly probability of transition from employment to unemployment using the NLS of Older Men. It is assumed that the probability of predicting whether an individual will be employed or unemployed in the following week can be represented as a logistic function of personal characteristics. A method is illustrated by which pooled data can be incorporated into maximum likelihood estimation in an exact fashion.
Bibliography Citation
Akerlof, George A. and Brian G. Main. "Maximum Likelihood Estimation with Pooled Observations: An Example from Labor Economics." International Economic Review 21,3 (October 1980): 507-515.
2. Beauchamp, Andrew
Sanzenbacher, Geoffrey
Seitz, Shannon
Skira, Meghan
Single Moms and Deadbeat Dads: The Role of Earnings, Marriage Market Conditions, and Preference Heterogeneity
International Economic Review 59,1 (February 2018): 191-232.
Also: http://onlinelibrary.wiley.com/doi/10.1111/iere.12267/abstract
Cohort(s): NLSY79
Publisher: Blackwell Publishing, Inc. => Wiley Online
Keyword(s): Child Support; Fathers; Mothers; Parents, Non-Custodial; Parents, Single; Racial Differences

Why do some men father children outside of marriage without providing support? Why do some women have children outside of marriage when they receive little support from fathers? Why is this behavior more common among blacks than whites? We estimate a dynamic equilibrium model of marriage, employment, fertility, and child support decisions. We consider the extent to which low earnings, marriage market conditions, and preference heterogeneity explain non-marital childbearing, deadbeat fatherhood, and racial differences in these outcomes. We find the black-white earnings gap and preference heterogeneity explain a substantial portion of racial differences, while marriage market conditions are less important.
Bibliography Citation
Beauchamp, Andrew, Geoffrey Sanzenbacher, Shannon Seitz and Meghan Skira. "Single Moms and Deadbeat Dads: The Role of Earnings, Marriage Market Conditions, and Preference Heterogeneity." International Economic Review 59,1 (February 2018): 191-232.
3. Bernal, Raquel
The Effect of Maternal Employment and Child Care on Children's Cognitive Development.
International Economic Review 49,4 (November 2008): 1173-1209.
Also: http://onlinelibrary.wiley.com/doi/10.1111/j.1468-2354.2008.00510.x/abstract
Cohort(s): Children of the NLSY79, NLSY79
Publisher: Blackwell Publishing, Inc. => Wiley Online
Keyword(s): Child Care; Child Development; Endogeneity; Leave, Family or Maternity/Paternity; Maternal Employment; Peabody Individual Achievement Test (PIAT- Math); Peabody Individual Achievement Test (PIAT- Reading); Peabody Picture Vocabulary Test (PPVT)

This article develops and estimates a dynamic model of employment and child care decisions of women after childbirth to evaluate the effects of these choices on children's cognitive ability. We use data from the National Longitudinal Survey of Youth to estimate it. Results indicate that the effects of maternal employment and child care on children's ability are negative and sizable. Having a mother that works full-time and uses child care during one year is associated with a reduction in ability test scores of approximately 1.8% (0.13 standard deviations). We assess the impact of policies related to parental leave and child care on children's outcomes. [ABSTRACT FROM AUTHOR]

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Bibliography Citation
Bernal, Raquel. "The Effect of Maternal Employment and Child Care on Children's Cognitive Development." International Economic Review 49,4 (November 2008): 1173-1209.
4. Bowlus, Audra Jann
Kiefer, Nicholas M.
Neumann, George R.
Equilibrium Search Models and the Transition from School to Work
International Economic Review 42,2 (May 2001): 317-343.
Also: http://www.jstor.org/stable/2648733
Cohort(s): NLSY79
Publisher: Blackwell Publishing, Inc. => Wiley Online
Keyword(s): Employment; Heterogeneity; High School Completion/Graduates; Job Search; Racial Differences; Transition, School to Work; Unemployment; Wage Differentials

This paper applies the Burdett-Mortensen (1998) equilibrium search model to study the school to work transitions of U.S. high school graduates. We consider the case of discrete firm heterogeneity and provide a computational method to obtain the MLE. Our results show that unemployed blacks receive fewer offers than whites and employed blacks are more likely to lose their jobs. Importantly, employed blacks and whites receive job offers at the same rate. Assigning the whites' search parameters to the blacks and re-solving reveals that 75 percent of the observed wage differential is explained by the job destruction rate differences.
Bibliography Citation
Bowlus, Audra Jann, Nicholas M. Kiefer and George R. Neumann. "Equilibrium Search Models and the Transition from School to Work." International Economic Review 42,2 (May 2001): 317-343.
5. Fang, Hanming
Silverman, Daniel Susman
Time-Inconsistency and Welfare Program Participation: Evidence from the NLSY
International Economic Review 50,4 (November 2009): 1043-1077.
Also: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1495267
Cohort(s): NLSY79
Publisher: Blackwell Publishing, Inc. => Wiley Online
Keyword(s): Aid for Families with Dependent Children (AFDC); Labor Supply; Maternal Employment; Parents, Single; Time Inconsistency; Time Preference; Welfare

We empirically implement a dynamic structural model of labor supply and welfare program participation for agents with potentially time-inconsistent preferences. Using panel data on the choices of single women with children from the National Longitudinal Surveys (NLSY) 1979, we provide estimates of the degree of time-inconsistency, and of its influence on the welfare take-up decision. With these estimates, we conduct counterfactual experiments to quantify a measure of the utility loss stemming from the inability to commit to future decisions, and the potential gains from commitment mechanisms such as welfare time limits and work requirements.
Bibliography Citation
Fang, Hanming and Daniel Susman Silverman. "Time-Inconsistency and Welfare Program Participation: Evidence from the NLSY ." International Economic Review 50,4 (November 2009): 1043-1077.
6. Fisher, Jonas D. M.
Gervais, Martin
Why Has Home Ownership Fallen Among the Young?
International Economic Review 52,3 (August 2011): 883-912.
Also: http://onlinelibrary.wiley.com/doi/10.1111/j.1468-2354.2011.00653.x/full
Cohort(s): NLSY79
Publisher: Blackwell Publishing, Inc. => Wiley Online
Keyword(s): Home Ownership; Modeling

We document that home ownership of households with “heads” aged 25–44 years fell substantially between 1980 and 2000 and recovered only partially during the 2001–5 housing boom. The 1980–2000 decline in young home ownership occurred as improvements in mortgage opportunities seemingly made it easier to purchase a home. This article uses an equilibrium life-cycle model calibrated to micro and macro evidence to understand these developments. A trend toward marrying later mechanically lowers young home ownership after 1980. We show that the large rise in earnings risk that occurred after 1980 can easily account for the remaining decline in young home ownership.
Bibliography Citation
Fisher, Jonas D. M. and Martin Gervais. "Why Has Home Ownership Fallen Among the Young? ." International Economic Review 52,3 (August 2011): 883-912.
7. Gorry, Aspen
Gorry, Devon
Trachter, Nicholas
Learning and Life Cycle Patterns of Occupational Transitions
International Economic Review published online (22 September 2018): DOI: 10.1111/iere.12371.
Also: https://onlinelibrary.wiley.com/doi/10.1111/iere.12371
Cohort(s): NLSY79
Publisher: Blackwell Publishing, Inc. => Wiley Online
Keyword(s): Life Cycle Research; Mobility, Occupational; Occupational Choice; Wages

Individuals experience frequent occupational switches during their lifetime and initial worker characteristics are predictive of future patterns of occupational switching. We construct a quantitative model of occupational choices with worker learning and occupation specific productivity shocks to match life cycle patterns of occupational transitions and quantify the value of occupational mobility and learning. For the average 18‐year‐old worker, the value of being able to switch occupations is about 67 months of the maximum wage they could earn in the model and the value of a worker learning their type is about 32 months of this maximum wage.

This article is protected by copyright. All rights reserved

Bibliography Citation
Gorry, Aspen, Devon Gorry and Nicholas Trachter. "Learning and Life Cycle Patterns of Occupational Transitions." International Economic Review published online (22 September 2018): DOI: 10.1111/iere.12371.
8. Guardado, Jose R.
Ziebarth, Nicolas R.
Worker Investments in Safety, Workplace Accidents, and Compensating Wage Differentials
International Economic Review 60,1 (February 2019): 133-155.
Also: https://onlinelibrary.wiley.com/doi/10.1111/iere.12347
Cohort(s): NLSY79
Publisher: Blackwell Publishing, Inc. => Wiley Online
Keyword(s): Accidents; Body Mass Index (BMI); Injuries, Workplace; Wage Differentials

The theory of compensating wage differentials (CWDs) assumes that firms supply and workers demand workplace safety, predicting a positive relationship between accident risk and wages. This paper allows for safety provision by workers, which predicts a countervailing negative relationship between individual risk and wages: firms pay higher wages for higher safety‐related productivity. Using National Longitudinal Survey of Youth panel data and data on fatal and nonfatal accidents, our precise CWDs imply a value of a statistical injury of $45.4 thousand and a value of a statistical life of $6.3 million. In line with our model, individual risk and wages are negatively correlated.
Bibliography Citation
Guardado, Jose R. and Nicolas R. Ziebarth. "Worker Investments in Safety, Workplace Accidents, and Compensating Wage Differentials." International Economic Review 60,1 (February 2019): 133-155.
9. Guo, Naijia
The Effect of an Early Career Recession on Schooling and Lifetime Welfare
International Economic Review 59,3 (August 2018): 1511-1545.
Also: https://onlinelibrary.wiley.com/doi/abs/10.1111/iere.12312
Cohort(s): NLSY79, NLSY97
Publisher: Blackwell Publishing, Inc. => Wiley Online
Keyword(s): Current Population Survey (CPS) / CPS-Fertility Supplement; Economic Changes/Recession; Job Search; Schooling; Work History

This paper evaluates the lifetime welfare and labor market consequences of experiencing a recession during youth, using a directed search equilibrium model with heterogeneous agents and aggregate shocks.
Bibliography Citation
Guo, Naijia. "The Effect of an Early Career Recession on Schooling and Lifetime Welfare." International Economic Review 59,3 (August 2018): 1511-1545.
10. Harris, Matthew C.
The Impact of Body Weight on Occupational Mobility and Career Development
International Economic Review published online (30 September 2018): DOI: 10.1111/iere.12364.
Also: https://onlinelibrary.wiley.com/doi/10.1111/iere.12364
Cohort(s): NLSY79
Publisher: Blackwell Publishing, Inc. => Wiley Online
Keyword(s): Body Mass Index (BMI); Career Patterns; Mobility, Occupational; Obesity; Occupational Choice; Occupational Information Network (O*NET); Weight

This paper examines the relationship between individuals' weight and employment decisions over the life cycle. I estimate a dynamic stochastic model of individuals' annual choices of occupation, hours worked, and schooling. Evidence suggests heavier individuals face higher switching costs when transitioning into white collar occupations, earn lower returns to experience in white‐collar occupations, and earn lower wages in socially intensive jobs. I simulate a hypothetical anti‐discrimination policy treating obese workers as a protected class. While such a policy would reduce gaps in occupational attainment, it would have little effect on the observed divergence in wages between obese and non‐obese workers.
Bibliography Citation
Harris, Matthew C. "The Impact of Body Weight on Occupational Mobility and Career Development." International Economic Review published online (30 September 2018): DOI: 10.1111/iere.12364.
11. Imai, Susumu
Keane, Michael P.
Intertemporal Labor Supply and Human Capital Accumulation
International Economic Review 45,2 (May 2004): 601–641.
Also: http://onlinelibrary.wiley.com/doi/10.1111/j.1468-2354.2004.00138.x/abstract
Cohort(s): NLSY79
Publisher: Blackwell Publishing, Inc. => Wiley Online
Keyword(s): Human Capital; Labor Supply; Savings; Wages

We solve and estimate a dynamic model that allows agents to optimally choose their labor hours and consumption and that allows for both human capital accumulation and savings. Estimation results and simulation exercises indicate that the intertemporal elasticity of substitution is much higher than the conventional estimates and the downward bias comes from the omission of the human capital accumulation effect. The human capital accumulation effect renders the life-cycle path of the shadow wage relatively flat, even though wages increase with age. Hence, a rather flat life-cycle labor supply path can be reconciled with a high intertemporal elasticity of substitution.
Bibliography Citation
Imai, Susumu and Michael P. Keane. "Intertemporal Labor Supply and Human Capital Accumulation." International Economic Review 45,2 (May 2004): 601–641. A.
12. Keane, Michael P.
Wolpin, Kenneth I.
Exploring the Usefulness of a Nonrandom Holdout Sample for Model Validation: Welfare Effects On Female Behavior
International Economic Review 48,4 (November 2007): 1351-1378.
Also: http://onlinelibrary.wiley.com/doi/10.1111/j.1468-2354.2007.00465.x/abstract
Cohort(s): NLSY79
Publisher: U.S. International Trade Commission
Keyword(s): Behavior; Welfare; Women

A particularly challenging use of decision-theoretic models in economics is to forecast the impact of large changes in the environment. The problem we explore in this article is how to gain confidence in a model's ability to predict the impact of such large changes. We show that an approach to validation and model selection that includes the choice of a "on random holdout sample," a sample that differs significantly from the estimation sample along the policy dimension that the model is meant to forecast, can be fruitful.
Bibliography Citation
Keane, Michael P. and Kenneth I. Wolpin. "Exploring the Usefulness of a Nonrandom Holdout Sample for Model Validation: Welfare Effects On Female Behavior." International Economic Review 48,4 (November 2007): 1351-1378.
13. Lochner, Lance John
Education, Work, and Crime: A Human Capital Approach
International Economic Review 45,3 (August 2004): 811-844.
Also: http://search.epnet.com/direct.asp?an=13932162&db=buh
Cohort(s): NLSY79
Publisher: U.S. International Trade Commission
Keyword(s): Age and Ageing; Crime; Educational Attainment; Human Capital; Incarceration/Jail; Labor Economics; Modeling; Self-Reporting; Training

This article develops a model of crime in which human capital increases the opportunity cost of crime from foregone work and expected costs associated with incarceration. Older, more intelligent, and more educated adults should commit fewer street (unskilled) crimes. White collar crimes decline less (or increase) with age and education. Predictions for age
Bibliography Citation
Lochner, Lance John. "Education, Work, and Crime: A Human Capital Approach." International Economic Review 45,3 (August 2004): 811-844.
14. Mukhopadhyay, Sankar
The Effects of the 1978 Pregnancy Discrimination Act on Female Labor Supply
International Economic Review 53,4 (November 2012): 1133-1153.
Also: http://onlinelibrary.wiley.com/doi/10.1111/j.1468-2354.2012.00714.x/abstract
Cohort(s): Young Women
Publisher: Blackwell Publishing, Inc. => Wiley Online
Keyword(s): Discrimination, Sex; Labor Force Participation; Leave, Family or Maternity/Paternity; Marriage; Maternal Employment; Pregnancy and Pregnancy Outcomes

This article analyzes the effects of the 1978 Pregnancy Discrimination Act (PDA) on the labor force participation rates of married women by estimating a dynamic model of labor force participation. Results show that the PDA increased the labor force participation rate of pregnant women by 8.2 percentage points, of women with a child less than one year old by 3.4 percentage points, and of women with older children by 1.5 percentage points. Counterfactual policy simulations show that the provision of unpaid leave will increase the labor force participation rate of women with older children by an additional 3.7 percentage points.
Bibliography Citation
Mukhopadhyay, Sankar. "The Effects of the 1978 Pregnancy Discrimination Act on Female Labor Supply." International Economic Review 53,4 (November 2012): 1133-1153.
15. Rendon, Silvio Roberto
Job Search and Asset Accumulation Under Borrowing Constraints
International Economic Review 47,1 (February 2006): 233-263.
Also: http://onlinelibrary.wiley.com/doi/10.1111/j.1468-2354.2006.00378.x/abstract
Cohort(s): NLSY79
Publisher: U.S. International Trade Commission
Keyword(s): Assets; Job Search; Quits; Wealth

This article examines the relationship between wealth accumulation and job search dynamics. It proposes a model in which risk-averse individuals search for jobs, save, and borrow to smooth their consumption. One motivation for accumulating wealth is to finance voluntary quits in order to search for better jobs. Using data on men from the National Longitudinal Survey (1979 cohort), I estimate the individual's dynamic decision problem. The results show that borrowing constraints are tight and reinforce the influence of wealth on job acceptance decisions, namely that more initial wealth and access to larger amounts of credit increase wages and unemployment duration. [ABSTRACT FROM AUTHOR]
Bibliography Citation
Rendon, Silvio Roberto. "Job Search and Asset Accumulation Under Borrowing Constraints." International Economic Review 47,1 (February 2006): 233-263.
16. Sullivan, Paul Joseph
A Dynamic Analysis of Educational Attainment, Occupational Choices, and Job Search
International Economic Review 51,1 (February 2010): 289-317.
Also: http://onlinelibrary.wiley.com/doi/10.1111/j.1468-2354.2009.00580.x/abstract
Cohort(s): NLSY79
Publisher: Blackwell Publishing, Inc. => Wiley Online
Keyword(s): Educational Attainment; Job Search; Occupational Choice; Wage Growth

This article examines career choices using a dynamic structural model that nests a job search model within a human capital model of occupational and educational choices. Wage growth occurs in the model because workers move between firms and occupations as they search for suitable job matches and because workers endogenously accumulate firm and occupation specific human capital. Simulations performed using the estimated model reveal that both self-selection in occupational choices and mobility between firms account for a much larger share of total earnings and utility than the combined effects of firm and occupation specific human capital.
Bibliography Citation
Sullivan, Paul Joseph. "A Dynamic Analysis of Educational Attainment, Occupational Choices, and Job Search." International Economic Review 51,1 (February 2010): 289-317.
17. Tartari, Melissa
Divorce and the Cognitive Achievement of Children
International Economic Review 56,2 (May 2015): 597-645.
Also: http://onlinelibrary.wiley.com/doi/10.1111/iere.12116/full
Cohort(s): Children of the NLSY79, NLSY79
Publisher: Wiley Online
Keyword(s): Age at Birth; Child Self-Administered Supplement (CSAS); Child Support; Children, Academic Development; Divorce; Marital Conflict; Marital Status; Maternal Employment; Modeling, Fixed Effects; Modeling, Simulation; Parent-Child Interaction; Parent-Child Relationship/Closeness; Parental Investments; Peabody Individual Achievement Test (PIAT- Math); Peabody Individual Achievement Test (PIAT- Reading); Propensity Scores; Relationship Conflict

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

Children of divorced parents exhibit lower test scores and educational attainment. Have these correlations a causal interpretation? Parents who divorce may be less likely to invest in their children while together or they may divorce to shield their children from the effects of marital conflict. I study the relationship between children's achievement and the marital status of their parents within a dynamic framework in which partners decide on whether to remain married, how to interact (with or without conflict), and child investments. I then assess whether a child whose parents divorced would have been better off had divorce not occurred.
Bibliography Citation
Tartari, Melissa. "Divorce and the Cognitive Achievement of Children." International Economic Review 56,2 (May 2015): 597-645.
18. Yoon, Chamna
Estimating a Dynamic Spatial Equilibrium Model to Evaluate the Welfare Implications of Regional Adjustment Processes: The Decline of the Rust Belt
International Economic Review 58,2 (May 2017): 473-497.
Also: http://onlinelibrary.wiley.com/doi/10.1111/iere.12224/abstract
Cohort(s): NLSY79
Publisher: Blackwell Publishing, Inc. => Wiley Online
Keyword(s): Current Population Survey (CPS) / CPS-Fertility Supplement; Economic Changes/Recession; Economics, Regional; Geocoded Data; Mobility; Skills

This article develops and estimates a new dynamic spatial equilibrium model to study the regional transition dynamics and its impact on individual and aggregate welfare. The model consists of a multiregion, multisector economy comprised of overlapping generations of individuals with heterogeneous skills and mobility costs. The empirical findings suggest that a large fraction of the decline of the Rust Belt can be attributed to the reduction in its region-specific comparative advantage in the goods-producing sector. This decline generated significant differences in welfare across regions. Policy experiments show that such inequality can be significantly reduced through place-based policies.
Bibliography Citation
Yoon, Chamna. "Estimating a Dynamic Spatial Equilibrium Model to Evaluate the Welfare Implications of Regional Adjustment Processes: The Decline of the Rust Belt." International Economic Review 58,2 (May 2017): 473-497.