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Source: Journal of Monetary Economics
Resulting in 2 citations.
1. Hendricks, Lutz
Schoellman, Todd
Student Abilities During the Expansion of US Education
Journal of Monetary Economics 63 (April 2014): 19-36.
Also: http://www.sciencedirect.com/science/article/pii/S0304393214000208
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Armed Forces Qualifications Test (AFQT); College Education; Educational Attainment; High School Diploma; Test Scores/Test theory/IRT

The US experienced two dramatic changes in the structure of education in a fifty year period. The first was a large expansion of educational attainment; the second, an increase in test score gaps between college bound and non-college bound students. This paper documents the impact of these two trends on the composition of school groups by ability and the importance of these composition effects for wages. The main finding is that there is a growing gap between the abilities of high school and college-educated workers that accounts for one-half of the college wage premium for recent cohorts and for the entire rise of the college wage premium between the 1910 and 1960 birth cohorts.
Bibliography Citation
Hendricks, Lutz and Todd Schoellman. "Student Abilities During the Expansion of US Education." Journal of Monetary Economics 63 (April 2014): 19-36.
2. Kudlyak, Marianna
The Cyclicality of the User Cost of Labor
Journal of Monetary Economics 68 (November 2014): 53-67.
Also: http://www.sciencedirect.com/science/article/pii/S0304393214001135
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Firms; Labor Supply; Modeling; Wages

The user cost of labor is the expected difference between the present discounted value of wages paid to a worker hired in the current period and that paid to a worker hired in the next period. Analogously to the price of any long-term asset, the user cost, not wage, is the relevant price for a firm that is considering adding a worker. I construct its counterpart in the data and estimate that it is substantially more procyclical than average wages or wages of newly-hired workers. I demonstrate an application of the finding using the textbook search and matching model.
Bibliography Citation
Kudlyak, Marianna. "The Cyclicality of the User Cost of Labor." Journal of Monetary Economics 68 (November 2014): 53-67.