Search Results

Source: Review of Economic Studies
Resulting in 6 citations.
1. Barlevy, Gadi
Identification of Search Models using Record Statistics
Review of Economic Studies 75,1 (January 2008): 29-64.
Also: http://onlinelibrary.wiley.com/doi/10.1111/j.1467-937X.2007.00459.x/abstract
Cohort(s): NLSY79
Publisher: Blackwell Publishing, Inc. => Wiley Online
Keyword(s): Income Distribution; Job Tenure; Statistics; Wage Differentials; Wage Growth

This paper shows how record-value theory, a branch of statistics that deals with the timing and magnitude of extreme values in sequences of random variables, can be used to recover features of the wage offer distribution in conventional search models. Using National Longitudinal Survey of Youth (NLSY) wage data, I show that the data are not compatible with specifications for the offer distribution characterized by extreme negative skewness. In addition, I show that my approach can be used to construct a bound on the returns to job seniority. My results suggest that job seniority plays only a minor role in the wage growth of the workers surveyed in the NLSY.
Bibliography Citation
Barlevy, Gadi. "Identification of Search Models using Record Statistics." Review of Economic Studies 75,1 (January 2008): 29-64.
2. Eckstein, Zvi
Wolpin, Kenneth I.
Dynamic Labor Force Participation of Married Women and Endogenous Work Experience
Review of Economic Studies 56,3 (July 1989): 375-390.
Also: http://www.jstor.org/stable/2297553
Cohort(s): Mature Women
Publisher: Blackwell Publishing, Inc. => Wiley Online
Keyword(s): Earnings, Husbands; Endogeneity; Family Influences; Labor Force Participation; Life Cycle Research; Marital Status; Wives, Work; Work Experience

A dynamic model of married women's labor force participation and fertility is estimated using the NLS Mature Women's cohort data. The estimates are used to predict changes in the lifecycle patterns of employment due to changes in schooling, fertility, husband's income, and the magnitude of the experience effect on wages. Findings show that although work experience increases the disutility of further work, this effect is overwhelmed by the positive effect of experience on wages, leading to persistence in the employment patterns of these women. It was also found that an increase in young children and in husband's income substantially reduces participation while increased schooling has a powerful positive impact on participation.
Bibliography Citation
Eckstein, Zvi and Kenneth I. Wolpin. "Dynamic Labor Force Participation of Married Women and Endogenous Work Experience." Review of Economic Studies 56,3 (July 1989): 375-390.
3. Lindenlaub, Ilse
Sorting Multidimensional Types: Theory and Application
The Review of Economic Studies 84,2 (1 April 2017): 718-789.
Also: https://academic.oup.com/restud/article/84/2/718/2938067
Cohort(s): NLSY79, NLSY97
Publisher: Oxford University Press
Keyword(s): Cognitive Ability; Labor Market Outcomes; Occupational Information Network (O*NET); Occupations; Skills

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

This article studies multidimensional matching between workers and jobs. Workers differ in manual and cognitive skills and sort into jobs that demand different combinations of these two skills. To study this multidimensional sorting problem, I develop a theoretical framework that generalizes the unidimensional notion of assortative matching and sufficient conditions on the technology under which sorting obtains. I derive the equilibrium in closed form and use this explicit solution to study biased technological change. The main finding is that an increase in worker-job complementarities in cognitive relative to manual inputs leads to more pronounced sorting and wage inequality across cognitive relative to manual skills. This can trigger wage polarization and boost aggregate wage inequality. I then estimate the model for the U.S. and identify sizable technology shifts: during the last two decades, worker-job complementarities in cognitive inputs strongly increased, whereas complementarities in manual inputs decreased. In addition to this bias in complementarities, there has been a cognitive skill-bias in production. Counterfactual exercises suggest that these technology shifts (as opposed to changes in skill supply and demand) can account for observed changes in worker-job sorting, wage polarization and a significant part of the increase in U.S. wage dispersion.
Bibliography Citation
Lindenlaub, Ilse. "Sorting Multidimensional Types: Theory and Application." The Review of Economic Studies 84,2 (1 April 2017): 718-789.
4. Lise, Jeremy
On-the-Job Search and Precautionary Savings
Review of Economic Studies 80,3 (July 2013): 1086-1113.
Also: http://restud.oxfordjournals.org/content/80/3/1086.abstract
Cohort(s): NLSY79
Publisher: Oxford University Press
Keyword(s): Earnings; Job Search; Risk-Taking; Savings; Wage Dynamics; Wage Growth; Wage Levels; Wealth

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

In this article, I develop and estimate a model of on-the-job search in which risk averse workers choose search effort and can borrow or save using a single risk free asset. I derive the implications for optimal savings behaviour in this environment and relate this to the frictions that characterize the endogenous earnings process implied by on-the-job search. Savings behaviour depends in a very intuitive way on the rate at which offers are received, the rate at which jobs are destroyed, and a worker's current rank in the wage distribution. The implication is that workers, who are identical in terms of preferences and opportunities, have substantially different savings behaviour depending on their history and current position in the wage distribution. The mechanism that generates the substantial differences in savings behaviour in the model is the dynamic of the “wage ladder” resulting from the search process. There is an important asymmetry between the incremental wage increases generated by on-the-job search (climbing the ladder) and the drop in income associated with job loss (falling off the ladder). The behaviour of workers in low paying jobs is primarily governed by the expectation of wage growth, while the behaviour of workers near the top of the distribution is driven by the possibility of job loss. The distributions of earnings, wealth, and consumption implied by the model (suitably aggregated) align reasonably well with the data, with the notable exception of implying substantially less concentration of wealth among the richest one percent of the population.
Bibliography Citation
Lise, Jeremy. "On-the-Job Search and Precautionary Savings." Review of Economic Studies 80,3 (July 2013): 1086-1113.
5. Michelacci, Claudio
Quadrini, Vincenzo
Financial Markets and Wages
Review of Economic Studies 76,2 (April 2009): 795-827.
Also: http://onlinelibrary.wiley.com/doi/10.1111/j.1467-937X.2008.00524.x/abstract
Cohort(s): NLSY79
Publisher: Blackwell Publishing, Inc. => Wiley Online
Keyword(s): Cross-national Analysis; Finland, Finnish; Firm Size; Firms; Rural/Urban Differences; Wage Growth; Wage Models

We study a labour market equilibrium model in which firms sign optimal long-term contracts with workers. Firms that are financially constrained offer an increasing wage profile: they pay lower wages today in exchange for higher future wages once they become unconstrained. Because constrained firms grow faster, the model predicts a positive correlation between the growth of wages and the growth of the firm. Under some conditions, the model also generates a positive relation between firm size and wages. Using matched employer-employee data from Finland and the National Longitudinal Survey of Youth for the U.S., we show that the key dynamic properties of the model are supported by the data. Reprinted by permission of the publisher.
Bibliography Citation
Michelacci, Claudio and Vincenzo Quadrini. "Financial Markets and Wages." Review of Economic Studies 76,2 (April 2009): 795-827.
6. Moffitt, Robert A.
Profiles of Fertility, Labour Supply, and Wages of Married Women: A Complete Life-Cycle Model
Review of Economic Studies 51,2 (April 1984): 263-278.
Also: http://www.jstor.org/stable/2297691
Cohort(s): Mature Women
Publisher: Blackwell Publishing, Inc. => Wiley Online
Keyword(s): Endogeneity; Fertility; Labor Supply; Life Cycle Research; Simultaneity; Wages; Wives

A complete model of female labor supply and fertility choice is constructed and estimated in this paper. The model is more complete than previous models in several respects. Labor supply and fertility are modeled as completely joint, simultaneous choices; both are modeled as sequential, life-cycle decisions, and the life-cycle path of wages is introduced explicitly, showing that time spent out of the labor market results in foregone present and future earning power. Labor supply and fertility profiles are shown to shift in response to shifts in the profile of wages. Econometrically, a full-information maximum-likelihood procedure is used which accounts for the selectivity problems present when wages are available only in periods in which a woman works, for the endogeneity of past work experience in the wage-generating function, and for simultaneous-equations bias.
Bibliography Citation
Moffitt, Robert A. "Profiles of Fertility, Labour Supply, and Wages of Married Women: A Complete Life-Cycle Model." Review of Economic Studies 51,2 (April 1984): 263-278.