Search Results

Source: Review of Economics and Statistics
Resulting in 80 citations.
1. Adams, Arvil Van
Nestel, Gilbert
Interregional Migration, Education and Poverty in the Urban Ghetto: Another Look at Black-White Earnings Differentials
Review of Economics and Statistics 58,2 (May 1976): 156-166.
Also: http://www.jstor.org/stable/1924021
Cohort(s): Older Men, Young Men
Publisher: Harvard University Press
Keyword(s): Earnings; Educational Returns; Inner-City; Migration; Poverty; Racial Differences; Regions; Urbanization/Urban Living; Work Attitudes

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

The authors argue that few of the problems facing blacks in the non-South can be directly related to their migration from the South or to inferior Southern black schools. The non-Southern ghetto appears to be more harmful than a rural Southern origin. In this environment, young black males adopt attitudes toward school and work which appear to perpetuate their disadvantaged economic status. Investment in quality education, South and non-South, new jobs and attention to defects in the market system are important to further economic progress for blacks. Available through JSTOR.
Bibliography Citation
Adams, Arvil Van and Gilbert Nestel. "Interregional Migration, Education and Poverty in the Urban Ghetto: Another Look at Black-White Earnings Differentials." Review of Economics and Statistics 58,2 (May 1976): 156-166.
2. Altonji, Joseph G.
Dunn, Thomas Albert
The Effects of Family Characteristics on the Return to Education
Review of Economics and Statistics 78,4 (November 1996): 692-704.
Also: http://www.jstor.org/stable/2109956
Cohort(s): Young Men, Young Women
Publisher: Harvard University Press
Keyword(s): Education; Educational Returns; Family Background; Family Characteristics; Labor Market Outcomes; Pairs (also see Siblings); Panel Study of Income Dynamics (PSID); Schooling; Siblings; Wage Effects; Wage Equations

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

The role of parental education in the human capital production function is examined by estimating the effects of parental education on the education profile of wages. The analysis uses sibling pairs from the Panel Study of Income Dynamics and the National Longitudinal Surveys of Labor Market Experience of Young Men and Young Women. Mixed evidence on whether parental education raises the return to education is obtained. (ABI/Inform)
Bibliography Citation
Altonji, Joseph G. and Thomas Albert Dunn. "The Effects of Family Characteristics on the Return to Education." Review of Economics and Statistics 78,4 (November 1996): 692-704.
3. Altonji, Joseph G.
Dunn, Thomas Albert
Using Siblings to Estimate The Effect of School Quality on Wages
Review of Economics and Statistics 78,4 (November 1996): 665-671.
Also: http://www.jstor.org/stable/2109953
Cohort(s): Young Men, Young Women
Publisher: Harvard University Press
Keyword(s): Education; Educational Returns; Family Background; Family Characteristics; High School Students; Labor Market Outcomes; Pairs (also see Siblings); Panel Study of Income Dynamics (PSID); School Characteristics/Rating/Safety; School Quality; Schooling; Siblings; Wage Effects; Wage Equations; Wage Models

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

The variance across siblings in school characteristics is used to estimate the effects of school inputs on wages. The analysis uses sibling pairs from the National Longitudinal Surveys of Labor Market Experience of Young Men and Young Women. It is found that teachers' salary, expenditures per pupil, and a composite index of school quality indicators have a substantial positive effect on the wages of high school graduates. (ABI/Inform)
Bibliography Citation
Altonji, Joseph G. and Thomas Albert Dunn. "Using Siblings to Estimate The Effect of School Quality on Wages." Review of Economics and Statistics 78,4 (November 1996): 665-671.
4. Antel, John J.
Human Capital Investment Specialization and the Wage Effects of Voluntary Labor Mobility
Review of Economics and Statistics 68,3 (August 1986): 477-483.
Also: http://www.jstor.org/stable/1926025
Cohort(s): Young Men
Publisher: Harvard University Press
Keyword(s): Endogeneity; Human Capital Theory; Job Search; Job Skills; Job Training; Mobility; Mobility, Job; Quits; Simultaneity; Transfers, Skill; Wage Effects

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

Studies of voluntary labor mobility suggest that job search facilitates job change while specific training inhibits mobility. Moreover, given that specific skills cannot be transferred between jobs, and since both search and training are expensive, it is reasonable for workers to specialize in search or specific training on a particular job. Training on search specialization, however, suggests that estimation methods that treat the incidence of a quit as exogenous underestimate mobility effects on wages. Here, the endogenous dummy variable model of Heckman (1978) is estimated using data from the NLS of Young Men. The actual observations consist of 2,165 young white men not self-employed, out of full-time school, and reporting job histories and wages between the 1969-1970 and the 1970-1971 contiguous year interviews. The larger wage effects found via analysis result from simultaneous estimation but also reflect more accurate measurement of wage growth between jobs.
Bibliography Citation
Antel, John J. "Human Capital Investment Specialization and the Wage Effects of Voluntary Labor Mobility." Review of Economics and Statistics 68,3 (August 1986): 477-483.
5. Antel, John J.
Interrelated Quits: An Empirical Analysis of the Utility Maximizing Mobility Hypothesis
Review of Economics and Statistics 70,1 (February 1988): 17-22.
Also: http://www.jstor.org/stable/1928146
Cohort(s): Young Men
Publisher: Harvard University Press
Keyword(s): Behavior; Educational Attainment; Job Search; Mobility; Mobility, Job; Quits; Wages; Work Experience

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

It is demonstrated how the circumstances of quitting a previous job affect the probability of a later voluntary job change. In the theoretical section, a model of expected utility-maximizing job search and mobility is described. The argument is that workers who voluntarily change jobs but search only when employed are less likely to quit again. This implication can be tested without measuring job utility. The sample comprises 2,182 young white males, with the data derived from the NLS of Young Men. Job histories were recorded between the 1969 and 1970 or 1970 and 1971 annual surveys. Results suggest that wages negatively and significantly affect quitting; experience and education variables are generally negatively related to quitting. The results provide empirical support for a model of utility-maximizing voluntary mobility. Such optimizing behavior suggests that the method of previous job search is related to the probability of later quitting. [ABI/INFORM]
Bibliography Citation
Antel, John J. "Interrelated Quits: An Empirical Analysis of the Utility Maximizing Mobility Hypothesis." Review of Economics and Statistics 70,1 (February 1988): 17-22.
6. Ashenfelter, Orley
Zimmerman, David J.
Estimates of the Returns to Schooling from Sibling Data: Fathers Sons and Brothers
The Review of Economics and Statistics 79,1 (February 1997): 1-9.
Also: http://www.jstor.org/stable/2951427
Cohort(s): Older Men, Young Men
Publisher: Harvard University Press
Keyword(s): Brothers; Educational Returns; Fathers and Sons; Schooling; Siblings

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

Data on brothers and on fathers and sons from the National Longitudinal Survey are used to consider the impact of omitted variables and measurement errors on the economic returns to schooling. The analysis suggests that the upward bias in estimated returns due to omitted variables is likely offset by an equal downward bias resulting from measurement errors in reported schooling. Controlling for both of these potential sources of bias yields results comparable to conventional repression estimates of the economic return to schooling. (Copyright 1997 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.)
Bibliography Citation
Ashenfelter, Orley and David J. Zimmerman. "Estimates of the Returns to Schooling from Sibling Data: Fathers Sons and Brothers." The Review of Economics and Statistics 79,1 (February 1997): 1-9.
7. Averett, Susan L.
Peters, H. Elizabeth
Waldman, Donald M.
Tax Credits, Labor Supply, and Child Care
The Review of Economics and Statistics 79,1 (February 1997): 125-135.
Also: http://www.jstor.org/stable/2951439
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Child Care; Labor Supply; Marital Status; Modeling; Taxes; Women

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

We explore the impact of the child care tax credit in the U.S. income tax system on the labor supply decisions of married women with young children by incorporating the cost of child care into a structural labor supply model. Using data from the 1986 NLSY, we find that government subsidies to child care increase labor supply substantially. Our policy simulations show that an increase in the value of the child care tax credit (i.e., percent of expenditures subsidized) would have a much larger effect on labor supply than an increase in the annual expenditure limits of the subsidy or making the subsidy refundable. (Copyright 1997 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.)
Bibliography Citation
Averett, Susan L., H. Elizabeth Peters and Donald M. Waldman. "Tax Credits, Labor Supply, and Child Care." The Review of Economics and Statistics 79,1 (February 1997): 125-135.
8. Babcock, Philip
Marks, Mindy S.
The Falling Time Cost of College: Evidence from Half a Century of Time Use Data
Review of Economics and Statistics 93,2 (May 2011): 468-478.
Also: http://www.mitpressjournals.org/doi/abs/10.1162/REST_a_00093
Cohort(s): NLSY79
Publisher: MIT Press
Keyword(s): College Cost; College Education; Human Capital; Time Use

Using multiple data sets from different time periods, we document declines in academic time investment by full-time college students in the United States between 1961 and 2003. Full-time students allocated 40 hours per week toward class and studying in 1961, whereas by 2003, they were investing about 27 hours per week. Declines were extremely broad based and are not easily accounted for by framing effects, work or major choices, or compositional changes in students or schools. We conclude that there have been substantial changes over time in the quantity or manner of human capital production on college campuses.
Bibliography Citation
Babcock, Philip and Mindy S. Marks. "The Falling Time Cost of College: Evidence from Half a Century of Time Use Data." Review of Economics and Statistics 93,2 (May 2011): 468-478.
9. Bacolod, Marigee Ponla
Do Alternative Opportunities Matter? The Role of Female Labor Markets in the Decline of Teacher Quality
Review of Economics and Statistics 89,4 (November 2007): 737-751.
Also: http://www.jstor.org/stable/40043097
Cohort(s): NLSY79, Young Men, Young Women
Publisher: MIT Press
Keyword(s): Racial Differences; Teachers/Faculty; Tests and Testing; Wage Rates; Wages, Young Women; Women's Education; Women's Roles

This paper documents the widely perceived but little investigated notion that teachers today are less qualified than they once were. Evidence of a marked decline in the quality of young women going into teaching between 1960 and 1990 is presented, using standardized test scores, undergraduate institution selectivity, and positive assortative mating characteristics as indicators of quality. In contrast, the quality of young women becoming professionals increased. The Roy model of self-selection highlights how occupational differences in the returns to skill determine teacher quality. Estimates suggest the significance of increasing professional opportunities for women in affecting the decline in teacher quality.
Bibliography Citation
Bacolod, Marigee Ponla. "Do Alternative Opportunities Matter? The Role of Female Labor Markets in the Decline of Teacher Quality." Review of Economics and Statistics 89,4 (November 2007): 737-751.
10. Barron, John M.
Ewing, Bradley T.
Waddell, Glen R.
The Effects of High School Athletic Participation on Education and Labor Market Outcomes
The Review of Economics and Statistics 82,3 (August 2000): 409-421.
Also: http://www.jstor.org/stable/2646801
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Athletics (see SPORTS); Educational Attainment; High School; Labor Market Outcomes; Leisure; NLS of H.S. Class of 1972; Sports (also see ATHLETICS); Time Use; Wage Effects; Wages

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

We introduce a simple allocation-of-time model to explain the high school athletic participation choice and the implications of this choice for educational and labor market outcomes. Four different factors that could explain athletic participation are identified in the context of this model. A variety of tests of the model are provided using two data sets: the National Longitudinal Survey of Youth and the National Longitudinal Study of the High School Class of 1972. We find some evidence that athletic participation directly affects wages and educational attainment. However, much of the effect of athletic participation on wages and educational attainment appears to reflect differences across individuals in ability or value of leisure.
Bibliography Citation
Barron, John M., Bradley T. Ewing and Glen R. Waddell. "The Effects of High School Athletic Participation on Education and Labor Market Outcomes." The Review of Economics and Statistics 82,3 (August 2000): 409-421.
11. Betts, Julian R.
Do School Resources Matter Only For Older Workers?
Review of Economics and Statistics 78,4 (November 1996): 638-652.
Also: http://www.jstor.org/stable/2109951
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Age and Ageing; Earnings; Educational Returns; Educational Status; Occupational Status; Schooling; Wage Growth

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

The literature that examines the impact of school spending on students' subsequent earnings is bifurcated into state-level studies, which typically find strong effects, and school-level studies, which find little effect. Since most of the school-level studies examine young workers, one explanation for the discrepancy is that school inputs benefit workers only as they gain job experience. The paper tests the hypothesis by using both school-level (NLSY) and state-level data sources (Census and the Biennial Survey of Education). Both data sets suggest that these is typically no significant age dependence. Thus other explanations of the discrepancy are likely to explain the differing results. (ABI/Inform)
Bibliography Citation
Betts, Julian R. "Do School Resources Matter Only For Older Workers?" Review of Economics and Statistics 78,4 (November 1996): 638-652.
12. Betts, Julian R.
Does School Quality Matter? Evidence from the National Longitudinal Survey of Youth
Review of Economics and Statistics 77,2 (May 1995): 231-250.
Also: http://www.jstor.org/stable/2109862
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Earnings; High School; School Quality; Schooling; Wage Levels; Wages

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

The paper searches for links between school quality and subsequent earnings of students. Using data for white males from the National Longitudinal Survey of Youth, the paper rejects the hypothesis that workers' earnings are independent of which high school they attended. However, traditional measures of school 'quality' such as class size, teachers' salaries and teachers' level of education fail to capture these differences. This result is robust to changes in specification and subsample. The paper contrasts the results with those of D. Card and A. B. Krueger (1992) and speculates that structural changes may have weakened the link between traditional measures of school quality and student outcomes.
Bibliography Citation
Betts, Julian R. "Does School Quality Matter? Evidence from the National Longitudinal Survey of Youth." Review of Economics and Statistics 77,2 (May 1995): 231-250.
13. Black, Matthew
Pecuniary Implications of On-the-Job Search and Quit Activity
Review of Economics and Statistics 62,2 (May 1980): 222-229.
Also: http://www.jstor.org/stable/1924748
Cohort(s): Older Men
Publisher: Harvard University Press
Keyword(s): Job Search; Mobility; Mobility, Job; Panel Study of Income Dynamics (PSID); Quits; Wages; Work Attitudes

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

The empirical findings discussed in this paper provide considerable support for the usefulness of a search framework in predicting the pecuniary implications of voluntary labor mobility. First, acquiring information and/or job offers under conditions of imperfect information seems to be a crucial link underlying the productivity of inter-firm mobility. Second, the dependency of the return to searching and quitting on relative wage opportunity suggests that the distribution of wage offers specific to a worker's skill and current wage rate is a central determinant of the success of labor mobility. Third, the contrast between the negative quit impact reported in this paper during a depressed economic period and the positive return found during a relatively tight period in other analyses offers some indirect evidence that prevailing national economic conditions may influence the likelihood of finding a better paying job for a given level of search effort.
Bibliography Citation
Black, Matthew. "Pecuniary Implications of On-the-Job Search and Quit Activity." Review of Economics and Statistics 62,2 (May 1980): 222-229.
14. Blackburn, McKinley L.
Neumark, David B.
Are OLS Estimates of the Return to Schooling Biased Downward? Another Look
Review of Economics and Statistics 77,2 (May 1995): 217-230.
Also: http://www.jstor.org/stable/2109861
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Educational Returns; Endogeneity; Human Capital; Modeling; Occupational Choice; Schooling; Test Scores/Test theory/IRT; Training, On-the-Job; Wage Equations

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

The authors examine evidence on bias in OLS estimates of the economic return to schooling. To study omitted- ability bias, they use test scores available in the National Longitudinal Survey of Youth as proxies for ability allowing for measurement error in these test scores. The authors also explore biases from the endogeneity of schooling or experience, or measurement error in these variables. In their data, OLS estimation including test scores appears to be appropriate and indicates an upward bias of roughly 40 percent in the OLS estimate ignoring ability. This contrasts with evidence from other recent research using different statistical experiments to purge schooling of its correlation with the wage equation error.
Bibliography Citation
Blackburn, McKinley L. and David B. Neumark. "Are OLS Estimates of the Return to Schooling Biased Downward? Another Look." Review of Economics and Statistics 77,2 (May 1995): 217-230.
15. Blau, David M.
Family Earning and Wage Inequality Early in the Life Cycle
Review of Economics and Statistics 66,2 (May 1984): 200-207.
Also: http://www.jstor.org/stable/1925820
Cohort(s): Young Women
Publisher: Harvard University Press
Keyword(s): Behavior; Childbearing; Family Income; Husbands, Income; Life Cycle Research; Wives, Income

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

This article proposes an explanation for the fact that while wages of married women contribute to equalizing the distribution of family wages, the equalizing effect declines during the early stages of the married life cycle. The explanation is based on the interaction between on-the-job accumulation of human capital and labor supply behavior. Empirical results from the NLS panel data suggest that the explanation is plausible and also show that in contrast to the results of previous cross-section studies there is no decline over time in the equalizing effect of wives' earnings on the distribution of family earnings.
Bibliography Citation
Blau, David M. "Family Earning and Wage Inequality Early in the Life Cycle." Review of Economics and Statistics 66,2 (May 1984): 200-207.
16. Blau, David M.
The Effect of Income on Child Development
Review of Economics and Statistics 81,2 (May 1999): 261-276.
Also: http://www.jstor.org/stable/2646864
Cohort(s): Children of the NLSY79
Publisher: Harvard University Press
Keyword(s): Behavior Problems Index (BPI); Child Care; Endogeneity; Fertility; Home Observation for Measurement of Environment (HOME); Morbidity; Mortality; Motor and Social Development (MSD); Peabody Individual Achievement Test (PIAT- Math); Peabody Individual Achievement Test (PIAT- Reading); Peabody Picture Vocabulary Test (PPVT); Poverty; Siblings; Verbal Memory (McCarthy Scale)

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

This study presents estimates of the effect of parental income on children's cognitive, social, and emotional development. The effect of current income is small, especially when income is treated as endogenous. The effect of 'permanent' income is substantially larger, but relatively small, when compared to the magnitude of recent policy-induced changes in income. Family background characteristics play a more important role than income in determining child outcomes. Policies that affect family income will have little direct impact on child development unless they result in very large and permanent changes in income.
Bibliography Citation
Blau, David M. "The Effect of Income on Child Development." Review of Economics and Statistics 81,2 (May 1999): 261-276.
17. Blau, David M.
Robins, Philip K.
Turnover in Child Care Arrangements
Review of Economics and Statistics 73,1 (February 1991): 152-157.
Also: http://www.jstor.org/stable/2109698
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Child Care; Childbearing; Family Structure; Fertility; Household Structure; Job Turnover; Labor Force Participation; Marital Disruption; Marital Status; Maternal Employment; Urbanization/Urban Living

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

This paper examines changes in child care arrangements for a sample of children over the first three years of life. Specifically examined was the dynamics of child care demand, i.e., the extent to which changes in child care arrangements were associated with changes in mothers' employment, marital status, and fertility. It was found that: (1) women of a higher socioeconomic status and older women were more likely to experience turnover in child care arrangements; (2) household structure impacted turnover with the presence of other children, particularly pre-school children, reducing child-care turnover; (3) child care turnover was not highly correlated with marital disruption or child bearing and was found to be lower in more densely populated urban areas. The paper concludes with a discussion of the authors' plans for future child care analyses.
Bibliography Citation
Blau, David M. and Philip K. Robins. "Turnover in Child Care Arrangements." Review of Economics and Statistics 73,1 (February 1991): 152-157.
18. Blau, Francine D.
Grossberg, Adam J.
Maternal Labor Supply and Children's Cognitive Development
Review of Economics and Statistics 74,3 (August 1992): 474-481.
Also: http://www.jstor.org/stable/2109492
Cohort(s): Children of the NLSY79, NLSY79
Publisher: Harvard University Press
Keyword(s): Armed Forces Qualifications Test (AFQT); Child Care; Child Development; Children, Academic Development; Fathers, Absence; Gender Differences; General Assessment; Maternal Employment; Mothers, Education; Peabody Picture Vocabulary Test (PPVT)

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

This paper analyzes the relationship between maternal labor supply and children's cognitive development using a sample of three- and four-year-old children of female respondents from the 1986 National Longitudinal Survey Youth Cohort. Maternal employment is found to have a negative impact when it occurs during the first year of the child's life and a potentially offsetting positive effect when it occurs during the second and subsequent years. The authors' findings suggest that maternal employment throughout a child's first three or four years would have no net effect on the child's cognitive ability.
Bibliography Citation
Blau, Francine D. and Adam J. Grossberg. "Maternal Labor Supply and Children's Cognitive Development." Review of Economics and Statistics 74,3 (August 1992): 474-481.
19. Bond, Timothy N.
Lang, Kevin
The Evolution of the Black-White Test Score Gap in Grades K–3: The Fragility of Results
Review of Economics and Statistics 95,5 (December 2013): 1468-1479.
Also: www.mitpressjournals.org/doi/abs/10.1162/REST_a_00370#.U5DN_hDCrsk
Cohort(s): Children of the NLSY79
Publisher: MIT Press
Keyword(s): Early Childhood Longitudinal Study (ECLS-B, ECLS-K); Peabody Individual Achievement Test (PIAT- Reading); Peabody Picture Vocabulary Test (PPVT); Racial Differences; School Progress; Test Scores/Test theory/IRT

Although both economists and psychometricians typically treat them as interval scales, test scores are reported using ordinal scales. Using the Early Childhood Longitudinal Study (ECLS-K) and the Children of the National Longitudinal Survey of Youth (CNLSY), we examine how order-preserving scale transformations affect the evolution of the black-white reading test score gap from kindergarten entry through third grade. Plausible transformations reverse the growth of the gap in the CNLSY and greatly reduce it in the ECLS-K during the early school years. All growth from entry through first grade and a nontrivial proportion from first to third grade probably reflects scaling decisions.
Bibliography Citation
Bond, Timothy N. and Kevin Lang. "The Evolution of the Black-White Test Score Gap in Grades K–3: The Fragility of Results." Review of Economics and Statistics 95,5 (December 2013): 1468-1479.
20. Borjas, George J.
Bronars, Stephen G.
Trejo, Stephen J.
Assimilation and the Earnings of Young Internal Migrants
Review of Economics and Statistics 74,1 (February 1992): 170-175.
Also: http://www.jstor.org/stable/2109556
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Earnings; Migration; Regions

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

The question of whether young internal migrants in the US experience economic assimilation as they adapt to their new residential location is examined. Using data from the National Longitudinal Survey of Youth, the analysis examines how the hourly earnings of interstate migrants are affected by the number of years they have spent in their destination state. The results indicate that internal migrants initially earn less than natives, but because the earnings growth experienced by recent migrants exceeds that of natives, this wage differential disappears within a few years. Moreover, the initial wage disadvantage suffered by internal migrants depends upon the distance moved and economic conditions in the destination labor market. Individuals moving within the same census region experience much less earnings disruption than interregional migrants do, and the initial wage differential between natives and migrants is smaller in states enjoying more rapid employment growth.
Bibliography Citation
Borjas, George J., Stephen G. Bronars and Stephen J. Trejo. "Assimilation and the Earnings of Young Internal Migrants." Review of Economics and Statistics 74,1 (February 1992): 170-175.
21. Buchinsky, Moshe
Hunt, Jennifer
Wage Mobility in the United States
Review of Economics and Statistics 81,3 (August 1999): 351-368.
Also: http://www.jstor.org/stable/2646760
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Earnings; Mobility; Wages

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

This paper examines the mobility of individuals through the wage and earnings distributions, using 1979-1991 data from the National Longitudinal Survey of Youth. Lifetime wages will be more equally distributed than wages from any single year if individuals change position in the wage distribution over time. The results suggest that mobility is predominantly within group mobility, reducing wage inequality by 12%-26% over a four-year horizon. A detailed examination of within-group mobility, using year-to-year estimates of transition probabilities among quintiles of the distribution, reveals similar general patterns across all skill groups: mobility declined significantly over the years, especially at the lower end of the wage and earnings distributions.
Bibliography Citation
Buchinsky, Moshe and Jennifer Hunt. "Wage Mobility in the United States." Review of Economics and Statistics 81,3 (August 1999): 351-368.
22. Cawley, John
Heckman, James J.
Vytlacil, Edward
Notes: On Policies to Reward the Value Added by Educators
The Review of Economics and Statistics 81,4 (November 1999): 720-727.
Also: http://www.jstor.org/stable/2646720
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Socioeconomic Factors; Teachers/Faculty; Test Scores/Test theory/IRT

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

One current educational reform seeks to reward the "value added" by teachers and schools based on the average change in pupil test scores over time. In this paper, we outline the conditions under which the average change in scores is sufficient to rank schools in terms of value added. A key condition is that socioeconomic outcomes be a linear function of test scores. Absent this condition, one can still derive the optimal value-added policy if one knows the relationship between test scores and socioeconomic outcomes, and the distribution of test scores both before and after the intervention. Using the National Longitudinal Survey of Youth, we find a nonlinear relationship between test scores and one important outcome: log wages. We find no consistent pattern in the curvature of log wage returns to test scores (whether percentiles, scaled, or raw scores). This implies that, used alone, the average gain in test scores is an inadequate measure of school performance and current value-added methodology may misdirect school resources. [ABI/Inform]
Bibliography Citation
Cawley, John, James J. Heckman and Edward Vytlacil. "Notes: On Policies to Reward the Value Added by Educators." The Review of Economics and Statistics 81,4 (November 1999): 720-727.
23. Cawley, John
Heckman, James J.
Vytlacil, Edward
On Policies to Reward the Value Added by Educators
Review of Economics and Statistics 81,4 (November 1999): 720-727.
Also: http://www.jstor.org/stable/2646720
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Education; Socioeconomic Factors; Test Scores/Test theory/IRT; Wages

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

One current educational reform seeks to reward the value added by teachers and schools based on the average change in pupil test scores over time. The conditions under which the average change in scores is sufficient to rank schools in terms of value added are outlined. A key condition is that socioeconomic outcomes be a linear function of test scores. Absent this condition, one can still derive the optimal value-added policy if one knows the relationship between test scores and socioeconomic outcomes, and the distribution of test scores both before and after the intervention. Using the National Longitudinal Survey of Youth, a nonlinear relationship is found between test scores and one important outcome: log wages.
Bibliography Citation
Cawley, John, James J. Heckman and Edward Vytlacil. "On Policies to Reward the Value Added by Educators." Review of Economics and Statistics 81,4 (November 1999): 720-727.
24. Chapman, Bruce James
Tan, Hong W.
Specific Training and Inter-Industry Wage Differentials in U.S. Manufacturing
Review of Economics and Statistics 62,3 (August 1980): 371-378.
Also: http://www.jstor.org/stable/1927104
Cohort(s): Young Men
Publisher: Harvard University Press
Keyword(s): Educational Returns; Human Capital; Industrial Training; Job Tenure; Job Training; Modeling; Wage Differentials

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

The returns to general and specific training are investigated by disaggregating the earnings function. The findings show that both general and specific training are important in wage determination. Due to industrial differences in worker financed stocks of specific training, wages are not equal between industries, even in models for human capital attributes.
Bibliography Citation
Chapman, Bruce James and Hong W. Tan. "Specific Training and Inter-Industry Wage Differentials in U.S. Manufacturing." Review of Economics and Statistics 62,3 (August 1980): 371-378.
25. Chirikos, Thomas N.
Nestel, Gilbert
Further Evidence on the Economic Effects of Poor Health
Review of Economics and Statistics 67,1 (February 1985): 61-69.
Also: http://www.jstor.org/stable/1928435
Cohort(s): Mature Women, Older Men
Publisher: Harvard University Press
Keyword(s): Earnings; Gender Differences; Health/Health Status/SF-12 Scale; Racial Differences

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

This paper examines variations in current economic welfare attributable to different profiles or histories of health status over the preceding ten year period. A two-equation model, estimated with National Longitudinal Survey data for four sex-race groups, provides convincing evidence that health problems incurred in the past adversely affect current earnings. This legacy is difficult to overcome: it remains even for individuals in improving health willing to devote relatively greater effort to market work. A history of poor health is also shown to exact substantially different economic tolls from men and women as well as from whites and blacks.
Bibliography Citation
Chirikos, Thomas N. and Gilbert Nestel. "Further Evidence on the Economic Effects of Poor Health." Review of Economics and Statistics 67,1 (February 1985): 61-69.
26. Eckstein, Zvi
Wolpin, Kenneth I.
Estimating the Effect of Racial Discrimination on First Job Wage Offers
Review of Economics and Statistics 81,3 (August 1999): 384-392.
Also: http://www.jstor.org/stable/2646762
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Discrimination; Educational Attainment; High School Completion/Graduates; High School Dropouts; Racial Differences; Wages

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

In this paper we develop and implement a method for bounding the extent to which labor market discrimination can account for racial wage differentials. The method is based on a two-sided, search-matching model that formally accounts for unobserved heterogeneity and unobserved offered wages. We find that racial differences in offered wages are proportionately twice (three times) as large as racial differences in accepted wages for high-school dropouts (high-school graduates). The results indicate that discrimination could account for the entire racial wage-offer differential for high-school dropouts and for high-school graduates, i.e., the bound on the extent of discrimination is not informative.
Bibliography Citation
Eckstein, Zvi and Kenneth I. Wolpin. "Estimating the Effect of Racial Discrimination on First Job Wage Offers." Review of Economics and Statistics 81,3 (August 1999): 384-392.
27. Falaris, Evangelos M.
Peters, H. Elizabeth
Leveling the Peaks and Troughs of the Demographic Cycle: An Application to School Enrollment Rates: A Comment
Review of Economics and Statistics 73,3 (August 1991): 572-575.
Also: http://www.jstor.org/stable/2109589
Cohort(s): NLSY79, Young Men, Young Women
Publisher: Harvard University Press
Keyword(s): Behavior; Demography; Income; Labor Supply; Schooling; Unemployment; Well-Being

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

We present new evidence which rejects Wachter and Wascher's (1984) timing hypothesis of the effect of the demographic cycle on schooling. e formalize the timing hypothesis in the context of a statistical model and argue that the timing hypothesis implies certain restrictions on the parameters of the model. Using more detailed data than those used by Wachter and Wascher, we estimate the model, test the restrictions, and reject the timing hypothesis. The study of Wachter and Wascher has enhanced our understanding of the effects of the demographic cycle on individual behavior by showing that individuals do not passively suffer the adverse consequences of a baby boom on their economic well-being, but they alter their investment in schooling in response to such a demographic phenomenon. We have further explored and clarified the relation between the demographic cycle, schooling attainment and the timing of its completion.
Bibliography Citation
Falaris, Evangelos M. and H. Elizabeth Peters. "Leveling the Peaks and Troughs of the Demographic Cycle: An Application to School Enrollment Rates: A Comment." Review of Economics and Statistics 73,3 (August 1991): 572-575.
28. Flanagan, Robert J.
Labor Force Experience, Job Turnover, and Racial Wage Differentials
Review of Economics and Statistics 56,4 (November 1974): 521-529.
Also: http://www.jstor.org/stable/1924467
Cohort(s): Older Men, Young Men
Publisher: Harvard University Press
Keyword(s): Educational Returns; Job Turnover; Racial Differences; Schooling; Unemployment; Wage Differentials; Work Experience

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

This paper seeks to estimate the influence of an unstable work history on wages, the value of alternative forms of post-school experience for whites and blacks, and to isolate important differences in the wage structure for each race which are the source of net racial wage differentials. The analysis indicates that the single most important source of racial hourly wage differentials is the lower level of and return to black schooling investments. The differences in returns among the older cohort are partially attributable to the fact that only whites experience occupational advancement as a part of the return to their investments.
Bibliography Citation
Flanagan, Robert J. "Labor Force Experience, Job Turnover, and Racial Wage Differentials." Review of Economics and Statistics 56,4 (November 1974): 521-529.
29. Fleisher, Belton M.
Rhodes, George F.
Individual Labor Force Decisions and Unemployment in Local Labor Markets
Review of Economics and Statistics 61,4 (November 1979): 629-634.
Also: http://www.jstor.org/stable/1935801
Cohort(s): Older Men
Publisher: Harvard University Press
Keyword(s): Census of Population; Discouraged Workers; Gender Differences; Job Search; Labor Force Participation; Unemployment

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

The net discouraged worker effect of unemployment on labor force participation for two important labor force groups is shown to be smaller than estimates based on published aggregate Census data indicate. Our explanation of the relative magnitudes of estimates derived from cross-section and time series data in terms of aggregation bias seems to fit the case of married women better than that of married men.
Bibliography Citation
Fleisher, Belton M. and George F. Rhodes. "Individual Labor Force Decisions and Unemployment in Local Labor Markets." Review of Economics and Statistics 61,4 (November 1979): 629-634.
30. Fleisher, Belton M.
Rhodes, George F.
Unemployment and Labor Force Participation of Married Men and Women: A Simultaneous Model
Review of Economics and Statistics 58,4 (November 1976): 398-406.
Also: http://www.jstor.org/stable/1935871
Cohort(s): Mature Women, Older Men
Publisher: Harvard University Press
Keyword(s): Husbands; Local Labor Market; Simultaneity; Unemployment; Wives

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

The authors develop and estimate a simultaneous model of labor force participation and unemployment rates. The coefficients of the labor force participation rates in the structural unemployment equation are negative and statistically significant. There is also evidence that the unemployment component associated with demand is correlated with labor force participation. The results suggest implications for policies based on concepts such as "hidden unemployment" and "full employment G.N.P." At the local labor market level, the results indicate policies designed to raise labor force participation through stimulating aggregate demand will not have a substantial effect on local labor forces.
Bibliography Citation
Fleisher, Belton M. and George F. Rhodes. "Unemployment and Labor Force Participation of Married Men and Women: A Simultaneous Model." Review of Economics and Statistics 58,4 (November 1976): 398-406.
31. Frank, Robert H.
Freeman, Richard T.
The Distribution of the Unemployment Burden: Do the Last Hired Leave First?
Review of Economics and Statistics 60,3 (August 1978): 380-391.
Also: http://www.jstor.org/stable/1924163
Cohort(s): Mature Women, Older Men, Young Men, Young Women
Publisher: MIT Press
Keyword(s): Gender Differences; Quits; Retirement; Unemployment; Unemployment Duration; Unemployment Rate; Unemployment, Youth

Relative contributions of unemployment frequency and unemployment duration to the distribution of total hours of unemployment across individuals within each of several important labor force groups were examined. National Longitudinal Survey data for the 1966-1971 period were employed. These data contain detailed personal and employment-related information for large cohorts of young males and females (aged 14 to 24 in 1966), mid-career women (aged 30 to 44 in 1966), and older males (aged 45 to 59 in 1966). Despite the fact that they had shorter periods of unemployment, young men and women tended to have much higher unemployment rates than adults. The frequency of unemployment periods was four to five times higher for youth cohorts. In cohorts for both older men and women, the incidence of increased unemployment fell heavily on those individuals with low personal unemployment rates. For the young women's group, the opposite pattern emerged. The study's principal contribution is that it allows variations in individual unemployment experience to be linked explicitly to individual variations in the length and frequency of unemployment periods. [AgeLine]
Bibliography Citation
Frank, Robert H. and Richard T. Freeman. "The Distribution of the Unemployment Burden: Do the Last Hired Leave First?" Review of Economics and Statistics 60,3 (August 1978): 380-391.
32. Freeman, Richard B.
Occupational Training in Proprietary School and Technical Institutes
Review of Economics and Statistics 56,3 (August 1974): 310-318.
Also: http://www.jstor.org/stable/1923968
Cohort(s): Older Men, Young Men
Publisher: Harvard University Press
Keyword(s): Educational Attainment; Family Influences; Intergenerational Patterns/Transmission; Mobility, Social; Socioeconomic Status (SES); Training, Occupational

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

The effect of occupational training in proprietary schools on job status and earnings of male workers is examined. Similar patterns in earnings between proprietary training and formal schooling appear. Proprietary training costs compare to those of colleges and universities, but the social rate of return is higher because of a lack of public subsidies. This type of occupational training differs among workers and job markets. The earnings of older black men, in comparison to those of their white counterparts, increase more with proprietary training and job tenure. Those who use their training at work also obtained higher returns than those whose training was less job specific.
Bibliography Citation
Freeman, Richard B. "Occupational Training in Proprietary School and Technical Institutes." Review of Economics and Statistics 56,3 (August 1974): 310-318.
33. Ginther, Donna K.
Alternative Estimates of the Effect of Schooling on Earnings
Review of Economics and Statistics 82,1 (February 2000): 103-116.
Also: http://www.jstor.org/stable/2646676
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Earnings; Family Structure; Schooling

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

This paper examines how assumptions imposed on the data influence estimates of schooling's effect on earnings. The paper models schooling decisions as treatment effects and imposes assumptions about schooling selection to estimate bounds on the treatment effect. The study begins by using the worst-case bounds derived by Manski (1989, 1990, 1994, 1995) and adds assumptions from the Roy model of schooling self-selection to narrow the bounds on the schooling treatment effect. The bounds are narrowed further by using family structure, college proximity, and school-quality characteristics as exclusion restrictions. The selection problem requires the researcher to make explicit assumptions to estimate the effect of schooling on earnings. This paper demonstrates that different selection assumptions yield very different results.
Bibliography Citation
Ginther, Donna K. "Alternative Estimates of the Effect of Schooling on Earnings." Review of Economics and Statistics 82,1 (February 2000): 103-116.
34. Gorbachev, Olga
Luengo-Prado, Maria Jose
The Credit Card Debt Puzzle: The Role of Preferences, Credit Access Risk, and Financial Literacy
Review of Economics and Statistics published online (16 July 2018): DOI: 10.1162/rest_a_00752.
Also: https://www.mitpressjournals.org/doi/abs/10.1162/rest_a_00752
Cohort(s): NLSY79
Publisher: MIT Press
Keyword(s): Credit/Credit Constraint; Debt/Borrowing; Financial Literacy; Risk Perception

We use the 1979 National Longitudinal Survey of Youth to revisit what is termed the credit card debt puzzle: why consumers simultaneously co-hold high-interest credit card debt and low-interest assets that could be used to pay down this debt. Relative to individuals with no credit card debt but positive liquid assets, borrower-savers have very different perceptions of future credit access risk and use credit cards for precautionary motives. Moreover, changing perceptions about credit access risk are essential for predicting transitions among the two groups. Preferences and the composition of financial portfolios also play a role in these transitions.
Bibliography Citation
Gorbachev, Olga and Maria Jose Luengo-Prado. "The Credit Card Debt Puzzle: The Role of Preferences, Credit Access Risk, and Financial Literacy." Review of Economics and Statistics published online (16 July 2018): DOI: 10.1162/rest_a_00752.
35. Gottschalk, Peter
Earnings Mobility: Permanent Change or Transitory Fluctuations?
Review of Economics and Statistics 64,3 (August 1982): 450-456.
Also: http://www.jstor.org/stable/1925943
Cohort(s): Mature Women
Publisher: Harvard University Press
Keyword(s): Earnings; Husbands; Mobility; Mobility, Job; Schooling; Welfare

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

Analysis of always married, middle-aged males indicates that a considerable amount of variability in measured earnings reflects transitory variation. When these transitory fluctuations are eliminated, 43 percent of the persons with low earnings in a random year are seen to have low earnings in all of six years. This indicates a good deal of permanence within the low earnings population. Mobility patterns are found to vary with the person's place in the earnings distribution. The greatest amount of transitory variation in earnings is seen to have been experienced by those at the top and the bottom of the earnings distribution. Examination of demographic characteristics indicates that being non-white, older, having low education, or living in the Southern United States or outside an SMSA all increase the probability of having permanently low earnings more than they increase the probability of having temporarily low earnings. Households with a husband receiving permanently low earnings are seen to have been more unlikely to have a wife or other member working, and are more likely to receive public assistance. However, these other sources of income are not found to be sufficient to compensate for the head's low earnings in many cases.
Bibliography Citation
Gottschalk, Peter. "Earnings Mobility: Permanent Change or Transitory Fluctuations?" Review of Economics and Statistics 64,3 (August 1982): 450-456.
36. Gould, Eric D.
Weinberg, Bruce A.
Mustard, David B.
Crime Rates and Local Labor Market Opportunities in the United States: 1979-1997
Review of Economics and Statistics 84,1 (February 2002): 45-61.
Also: http://www.jstor.org/stable/3211738
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Crime; Employment, Youth; Labor Force Participation; Male Sample; Simultaneity; Unemployment Rate; Unemployment, Youth; Wages; Wages, Young Men

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

The labor market prospects of young, unskilled men fell dramatically in the 1980s and improved in the 1990s. Crime rates show a reverse pattern: increasing during the 1980s and failing in the 1990s. Because young, unskilled men commit most crime, this paper seeks to establish a causal relationship between the two trends. Previous work on the relationship between labor markets and crime focused mainly on the relationship between the unemployment rate and crime, and found inconclusive results. In contrast, this paper examines the impact of both wages and unemployment on crime, and uses instrumental variables to establish causality. We conclude that both wages and unemployment are significantly related to crime, but that wages played a larger role in the crime trends over the last few decades. These results are robust to the inclusion of deterrence variables, controls for simultaneity, and controlling for individual and family characteristics.
Bibliography Citation
Gould, Eric D., Bruce A. Weinberg and David B. Mustard. "Crime Rates and Local Labor Market Opportunities in the United States: 1979-1997." Review of Economics and Statistics 84,1 (February 2002): 45-61.
37. Grogger, Jeffrey
Arrests, Persistent Youth Joblessness, and Black/White Employment Differentials
Review of Economics and Statistics 74,1 (February 1992): 100-106.
Also: http://www.jstor.org/stable/2109547
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Arrests; Crime; Employment, Youth; Heterogeneity; Illegal Activities; Racial Differences; Unemployment, Youth

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

Economists have long been concerned with the labor market problems of young men. Recently, research has indicated that one-fourth to one-half of all men are active in crime at some point during their youth. Furthermore, joblessness and criminal activity vary similarly by age and race. I analyze two data sets containing arrest and employment information to assess whether criminal activities may underlie persistent joblessness and black/white employment differentials among young men. Two different approaches are taken to control for individual heterogeneity. Arrests generate some persistence in non-employment. Moreover, arrests account for nearly two-thirds of the black/white employment differential in a sample of arrestees, and nearly one-third of the difference in a more general sample.
Bibliography Citation
Grogger, Jeffrey. "Arrests, Persistent Youth Joblessness, and Black/White Employment Differentials." Review of Economics and Statistics 74,1 (February 1992): 100-106.
38. Haurin, Donald R.
Women's Labor Market Reactions to Family Disruptions
Review of Economics and Statistics 71,1 (February 1989): 54-61.
Also: http://www.jstor.org/stable/1928051
Cohort(s): Mature Women
Publisher: Harvard University Press
Keyword(s): Displaced Homemakers; Divorce; Earnings, Husbands; Health Factors; Husbands; Labor Force Participation; Labor Supply; Marital Disruption; Widows; Women

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

This paper examines the impact of different types of household disruptions on women's labor supply. Utilizing data from the Mature Women's cohort (1979, 1981, and 1982) it was found that newly discovered or separated women increase their work hours more than do new widows. If a woman worked 960 hours in 1982, the increase in work time for those women recently divorced or separated is 540 hours while the estimate for widows indicates a slight decline in work time. Non-significant reactions are found if the women's husband reports a new health limitation or the husband suffers ten weeks or more of unemployment during the year.
Bibliography Citation
Haurin, Donald R. "Women's Labor Market Reactions to Family Disruptions." Review of Economics and Statistics 71,1 (February 1989): 54-61.
39. Haurin, Donald R.
Hendershott, Patric H.
Kim, Dongwook
The Impact of Real Rents and Wages on Household Formation
Review of Economics and Statistics 75,2 (May 1993): 284-293.
Also: http://www.jstor.org/stable/2109434
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Demography; Household Composition; Household Income; Local Labor Market; Regions

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

Although the economic literature has analyzed some components of the headship decision, study of household formation has been primarily in the realm of demography. We expand the demographic model to include economic determinants of the decision to remain with parents or not, and to live with a group or separately. We focus on measuring the effect of spatial variations in rental costs on the probability of forming a household. Our results, based on a sample of 2,573 youths in their twenties, indicate that the cost of housing and potential labor earnings are important variables in explaining this probability.
Bibliography Citation
Haurin, Donald R., Patric H. Hendershott and Dongwook Kim. "The Impact of Real Rents and Wages on Household Formation." Review of Economics and Statistics 75,2 (May 1993): 284-293.
40. Heckman, James J.
Vytlacil, Edward
Identifying the Role of Cognitive Ability in Explaining the Level of and Change in the Return to Schooling
Review of Economics and Statistics 83,1 (February 2001): 1-12.
Also: http://www.jstor.org/stable/2646685
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Cognitive Ability; Education; Educational Attainment; School Completion; School Dropouts; Schooling

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

This paper considers two problems that arise in determining the role of cognitive ability in explaining the level of and change in the rate of return to schooling. The first problem is that ability and schooling are so strongly dependent that it is not possible, over a wide range of variation in schooling and ability, to independently vary these two variables and estimate their separate impacts. The second problem is that the structure of panel data makes it difficult to identify main age and time effects or to isolate crucial education-ability-time interactions which are needed to assess the role of ability in explaining the rise in the return to education.
Bibliography Citation
Heckman, James J. and Edward Vytlacil. "Identifying the Role of Cognitive Ability in Explaining the Level of and Change in the Return to Schooling." Review of Economics and Statistics 83,1 (February 2001): 1-12.
41. Hellerstein, Judith K.
Imbens, Guido W.
Imposing Moment Restrictions from Auxiliary Data by Weighting
The Review of Economics and Statistics 81,1 (February 1999): 1-14.
Also: http://www.jstor.org/stable/2646780
Cohort(s): Young Men
Publisher: Harvard University Press
Keyword(s): Data Quality/Consistency; Education; Educational Returns; Modeling; Wage Models; Wages; Work Experience

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

In this paper we analyze the estimation of coefficients in regression models under moment restrictions in which the moment restrictions are derived from auxiliary data. The moment restrictions yield weights for each observation that can subsequently be used in weighted regression analysis. We discuss the interpretation of these weights under two assumptions: that the target population (from which the moments are constructed) and the sampled population (from which the sample is drawn) are the same, and that these populations differ. We present an application based on omitted ability bias in estimation of wage regressions. The National Longitudinal Survey Young Men's Cohort (NLS) -- in addition to containing information for each observation on wages, education, and experience--records data on two test scores that may be considered proxies for ability. The NLS is a small dataset, however, with a high attrition rate. We investigate how to mitigate these problems in the NLS by forming moments from the joint distribution of education, experience, and log wages in the 1% sample of the 1980 U.S. Census and using these moments to construct weights for weighted regression analysis of the NLS. We analyze the impacts of our weighed regression techniques on the estimated coefficients and standard errors of returns to education and experience in the NLS controlling for ability, with and without the assumption that the NLS and the Census samples are random samples from the same population. Copyright 1999 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.
Bibliography Citation
Hellerstein, Judith K. and Guido W. Imbens. "Imposing Moment Restrictions from Auxiliary Data by Weighting." The Review of Economics and Statistics 81,1 (February 1999): 1-14.
42. Hill, C. Russell
Capacities, Opportunities and Educational Investments: The Case of the High School Dropout
Review of Economics and Statistics 61,1 (February 1979): 9-20.
Also: http://www.jstor.org/stable/1924826
Cohort(s): Young Men
Publisher: MIT Press
Keyword(s): Dropouts; High School Curriculum; I.Q.; Parental Influences; Siblings

The matter of dropping out becomes a social problem when the consequences of leaving high school early begin to impinge seriously on others, or when dropping out results from incomplete information--e.g., on income, employment or other prospects--which was available but not known to the student or when dropping out reflects inequality of educational opportunity. The external diseconomies from dropping out most frequently mentioned and measured are the social costs of the increased unemployment of the dropout and the resulting loss if taxable earnings or national output. Of course, there may be other social costs, some of which were mentioned in the introduction to this paper. But the extent of the relationship between dropping out and increased crime and drug usage, for example, is not well known. Nevertheless, by examining later waves of this cohort, it is possible to analyze the activities and labor market achievement of the dropouts subsequent to their leaving high school.

Available at: http://links.jstor.org/sici?sici=0034-6535%28197902%2961%3A1%3C9%3ACOAEIT%3E2.0.CO%3B2-9

Bibliography Citation
Hill, C. Russell. "Capacities, Opportunities and Educational Investments: The Case of the High School Dropout." Review of Economics and Statistics 61,1 (February 1979): 9-20.
43. Hotz, V. Joseph
Xu, Lixin Colin
Tienda, Marta
Ahituv, Avner
Are There Returns to the Wages of Young Men from Working While in School?
Review of Economics and Statistics 84,2 (May 2002): 221-236.
Also: http://www.jstor.org/stable/3211773
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Height; High School; Part-Time Work; Wage Rates; Wages, Youth; Work Experience

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

This paper examines the effects of work experience acquired while youth were in high school (and college) on young men's wage rates. Previous studies have found sizeable and persistent rates of return to working while enrolled in school, especially high school, on subsequent wage growth. The extent to which these estimates represent causal effects by assessing the robustness of prior findings to controls for unobserved heterogeneity and sample selectivity are evaluated. More-general econometric methods for dealing with the dynamic of selection and apply them to data on young men from the 1979 National Longitudinal Survey of Youth (NLSY79) are explored. It is found that the estimated returns to working while in high school or college are dramatically diminished in magnitude and are not statistically significant when one applies dynamic selection methods.
Bibliography Citation
Hotz, V. Joseph, Lixin Colin Xu, Marta Tienda and Avner Ahituv. "Are There Returns to the Wages of Young Men from Working While in School?" Review of Economics and Statistics 84,2 (May 2002): 221-236.
44. Jianakoplos, Nancy Ammon
Menchik, Paul L.
Wealth Mobility
The Review of Economics and Statistics 79,1 (February 1997): 18-31.
Also: http://www.jstor.org/stable/2951429
Cohort(s): Older Men
Publisher: Harvard University Press
Keyword(s): Income Dynamics/Shocks; Mobility; Racial Differences; Wealth

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

The wealth mobility of a panel of mature American men between 1966 and 1981 is examined. Although greater persistence exists than within the income distribution, a sizable degree of movement within the wealth distribution is observed. Slightly more than half of the households changed quintiles. However, the magnitude of the movement was modest, with 78% of the moves to an adjacent quintile. Movements into either extreme of the wealth distribution were relatively rare. Really big moves, from the poorest to the richest group, were extremely rare, with the probability of an African-American making such a move within 15 years approximately zero. [ABI/Inform]
Bibliography Citation
Jianakoplos, Nancy Ammon and Paul L. Menchik. "Wealth Mobility." The Review of Economics and Statistics 79,1 (February 1997): 18-31.
45. Johnson, Richard W.
Neumark, David B.
Wage Declines Among Older Men
The Review of Economics and Statistics 78,4 (November 1996): 740-748.
Also: http://www.jstor.org/stable/2109961
Cohort(s): Older Men
Publisher: Harvard University Press
Keyword(s): Age and Ageing; Human Capital; Life Cycle Research; Social Security; Wage Dynamics; Wage Growth; Wage Rates; Wages, Men

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

The evidence on whether real wages decline with age among older men is examined. While the general human capital model of wage growth over the life cycle predicts that wages will fall as workers approach the end of their career, alternative models of wage growth do not predict these wage declines. It is found that in the longitudinal estimates of age-wage profiles wage declines only set in for workers in their 60s. Furthermore, these longitudinal declines are at least partly due to interactions with the Social Security system. The earnings cap or other effects of Social Security appear to lead some workers to choose jobs and job characteristics associated with lower wages. (ABI/Inform)
Bibliography Citation
Johnson, Richard W. and David B. Neumark. "Wage Declines Among Older Men." The Review of Economics and Statistics 78,4 (November 1996): 740-748.
46. Jones, Ethel B.
Long, James E.
Part-Week Work and Women's Unemployment
Review of Economics and Statistics 63,1 (February 1981): 70-76.
Also: http://www.jstor.org/stable/1924219
Cohort(s): Mature Women, Young Women
Publisher: Harvard University Press
Keyword(s): Health/Health Status/SF-12 Scale; Part-Time Work; Unemployment Duration; Work History

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

This report investigates differences in the spells and duration of unemployment between part-week and full-week workers. Once employee and labor market characteristics are introduced into the model, probability and duration of unemployment are found not to differ between the groups.
Bibliography Citation
Jones, Ethel B. and James E. Long. "Part-Week Work and Women's Unemployment." Review of Economics and Statistics 63,1 (February 1981): 70-76.
47. Kahn, Lawrence M.
Low, Stuart A.
The Relative Effects of Employed and Unemployed Job Search
Review of Economics and Statistics 64,2 (May 1982): 234-241.
Also: http://ideas.repec.org/a/tpr/restat/v64y1982i2p234-41.html
Cohort(s): Young Men
Publisher: Harvard University Press
Keyword(s): Collective Bargaining; Endogeneity; Job Search; Job Tenure; Quits; Unemployment; Unions; Wages; Wages, Reservation

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

This paper uses the NLS of Young Men to estimate the relative wage effects of employed and unemployed job search. Unemployed search in principle allows one to contact more firms per unit of time than employed search; however, unemployed search also implies foregone wages. Because search mode (i.e., employed vs. unemployed) results from a worker choice process, the endogeneity of search mode must be taken into account in estimating the relative wage effects of the two search modes. Using selectivity-bias correction techniques, it is found that unemployed search yields about a 10 percent higher expected wage offer than employed search.
Bibliography Citation
Kahn, Lawrence M. and Stuart A. Low. "The Relative Effects of Employed and Unemployed Job Search." Review of Economics and Statistics 64,2 (May 1982): 234-241.
48. Kazarosian, Mark Vahram
Precautionary Savings--A Panel Study
Review of Economics and Statistics 79,2 (May 1997): 241-247.
Also: http://www.jstor.org/stable/2951457
Cohort(s): Older Men
Publisher: Harvard University Press
Keyword(s): Government Regulation; Income Dynamics/Shocks; Retirement; Savings

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

Theoretical literature shows that income uncertainty boosts saving, yet empirical work is incomplete. The precautionary motive for saving is tested for by using panel data. Knowing this motive's size is important for gauging the responsiveness of saving to government programs that reduce uncertainty, and for comparison to other motives, such as bequests. Most empirical studies of precautionary saving use either aggregate time-series or cross-sectional data, which cannot capture the effects of individual income uncertainty. Measures of total, permanent, and transitory income uncertainty are derived from panel data - the National Longitudinal Survey - and a strong precautionary motive is found. A doubling of uncertainty increases the ratio of wealth to permanent income by 29%. Photocopy available from ABI/INFORM.
Bibliography Citation
Kazarosian, Mark Vahram. "Precautionary Savings--A Panel Study." Review of Economics and Statistics 79,2 (May 1997): 241-247.
49. Keane, Michael P.
Prasad, Eswar S.
Employment and Wage Effects of Oil Price Changes: A Sectoral Analysis
Review of Economics and Statistics 78,3 (August 1996): 389-400.
Also: http://www.jstor.org/view/00346535/di975990/97p0185b/0
Cohort(s): Young Men
Publisher: MIT Press
Keyword(s): Employment; Heterogeneity; Skilled Workers; Wage Differentials; Wage Effects; Wages, Adult

In this paper, we use micro panel data to examine the effects of oil price changes on employment and real wages, at the aggregate and industry levels. We also measure differences in the employment and wage responses for workers differentiated on the basis of skill level. We find that oil price increases result in a substantial decline in real wages for all workers, but raise the relative wage of skilled workers. The use of panel data econometric techniques to control for unobserved heterogeneity is essential to uncover this result, which is completely hidden in OLS estimates. While the short-run effect of an oil price increase on aggregate employment is negative, the long-run effect is in fact positive. We find that changes in oil prices induce changes in employment shares and relative wages across industries. However, we find little evidence that oil price changes cause labor to consistently flow into those sectors with relative wage increases. Copyright 1996 by MIT Press.
Bibliography Citation
Keane, Michael P. and Eswar S. Prasad. "Employment and Wage Effects of Oil Price Changes: A Sectoral Analysis." Review of Economics and Statistics 78,3 (August 1996): 389-400.
50. Keith, Kristen K.
Reputation, Voluntary Mobility and Wages
Review of Economics and Statistics 75,3 (August 1993): 559-563.
Also: http://www.jstor.org/stable/2109476
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Benefits, Fringe; Endogeneity; Intergenerational Patterns/Transmission; Labor Turnover; Layoffs; Mobility; Mobility, Occupational; Quits; Unemployment; Wage Differentials; Wage Levels

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

Many studies have examined the impact of turnover on wages, but little empirical work has examined whether past mobility behavior affects current wage offers. The effect of voluntary mobility on subsequent wages is analyzed to discover if there are wage penalties associated with repeated mobility. To reduce the endogeneity between wages and voluntary mobility, the sample is restricted to young males on their first job following a permanent layoff. Using respondents from the National Longitudinal Survey of Youth, ordinary least squares wage equations from the layoff sample are compared to those from a sample of workers who remained employed. The evidence shows that voluntary mobility differentially affects the wage equations of the restricted and the unrestricted samples. [ABI/Inform]
Bibliography Citation
Keith, Kristen K. "Reputation, Voluntary Mobility and Wages." Review of Economics and Statistics 75,3 (August 1993): 559-563.
51. Keys, Benjamin J.
The Credit Market Consequences of Job Displacement
Review of Economics and Statistics 100,3 (July 2018): 405-415.
Also: https://www.mitpressjournals.org/doi/abs/10.1162/REST_a_00709
Cohort(s): NLSY79
Publisher: MIT Press
Keyword(s): Bankruptcy; Credit/Credit Constraint; Displaced Workers; Geocoded Data; Unemployment

This paper studies the role of job displacement in the household bankruptcy decision. Using an event-study methodology, I find that NLSY respondents are over three times more likely to file for bankruptcy immediately following a job loss. Using county-level data, I find similar magnitudes in the aggregate, with significant effects lasting two to three years. In addition, the loss of a manufacturing job, a proxy for a more persistent separation, is 40 percent more likely to lead to bankruptcy. The results suggest that unemployment spells can have significant long-term consequences on households' credit market outcomes.
Bibliography Citation
Keys, Benjamin J. "The Credit Market Consequences of Job Displacement." Review of Economics and Statistics 100,3 (July 2018): 405-415.
52. Kreisman, Daniel M.
Rangel, Marcos A.
On the Blurring of the Color Line: Wages and Employment for Black Males of Different Skin Tones
Review of Economics and Statistics 97,1 (March 2015): 1-13.
Also: http://www.mitpressjournals.org/doi/abs/10.1162/REST_a_00464
Cohort(s): NLSY97
Publisher: MIT Press
Keyword(s): Black Studies; Discrimination; Earnings; Employment; Skin Tone; Wage Gap

We evaluate the role skin color plays in earnings and employment for Black males in the NLSY97. By applying a novel, scaled measure of skin tone to a nationally representative sample, and by estimating the evolution of labor market differentials over time, we bridge a burgeoning literature on skin color with more established literatures on wage differentials and labor market discrimination. We find that while intra-racial wage gaps widen with experience, gaps between the lightest skinned Black workers and Whites remain constant, suggesting that a blurring of the color line elicits subtle yet meaningful variation in earnings differentials over time.
Bibliography Citation
Kreisman, Daniel M. and Marcos A. Rangel. "On the Blurring of the Color Line: Wages and Employment for Black Males of Different Skin Tones." Review of Economics and Statistics 97,1 (March 2015): 1-13.
53. Lang, Kevin
Ruud, Paul A.
Returns to Schooling, Implicit Discount Rates and Black-White Wage Differentials
Review of Economics and Statistics 68,1 (February 1986): 41-47.
Also: http://www.jstor.org/stable/1924926
Cohort(s): Young Men
Publisher: Harvard University Press
Keyword(s): Educational Attainment; Educational Returns; Family Background; Racial Differences; Schooling; Socioeconomic Background; Wage Differentials

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

A simple econometric model of investment in schooling is developed and estimated. The measure of individual discount rates implicit in their educational investment decisions suggests no difference between individuals from different socioeconomic backgrounds. Differences in individual speeds of educational attainment, which do vary with background, explain most of the variation in levels of attainment that is attributable to family background.
Bibliography Citation
Lang, Kevin and Paul A. Ruud. "Returns to Schooling, Implicit Discount Rates and Black-White Wage Differentials." Review of Economics and Statistics 68,1 (February 1986): 41-47.
54. Lazear, Edward
Family Background and Optimal Schooling Decisions
Review of Economics and Statistics 62,1 (February 1980): 42-51.
Also: http://www.jstor.org/stable/1924271
Cohort(s): Young Men
Publisher: Harvard University Press
Keyword(s): Educational Attainment; Family Background; Household Income; I.Q.; Schooling; Socioeconomic Status (SES)

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

This paper considers whether variations in levels of attained schooling across groups can be explained by a model that assumes that capital markets are perfect and that individuals maximize wealth. The model set forth in this paper allows one to test for capital cost differences across income groups. Other things constant, evidence of very small differences is found.
Bibliography Citation
Lazear, Edward. "Family Background and Optimal Schooling Decisions." Review of Economics and Statistics 62,1 (February 1980): 42-51.
55. Lehrer, Evelyn
Stokes, Houston
Determinants of the Female Occupational Distribution: A Log-Linear Probability Analysis
Review of Economics and Statistics 67,3 (August 1985): 395-404.
Also: http://www.jstor.org/stable/1925967
Cohort(s): Young Women
Publisher: Harvard University Press
Keyword(s): Occupations, Female; Occupations, Male; Skills; Wages

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

This study examines the determinants of two aspects of occupations which have been found to have important influences on female wages: the skill level associated with the occupation and the sex composition of the occupation (typically female versus male or integrated). Using a log-linear probability technique and data from the NLS Young Women cohort, hypotheses drawn from the economic and sociological literature are tested.
Bibliography Citation
Lehrer, Evelyn and Houston Stokes. "Determinants of the Female Occupational Distribution: A Log-Linear Probability Analysis." Review of Economics and Statistics 67,3 (August 1985): 395-404.
56. Light, Audrey L.
McGarry, Kathleen
Job Change Patterns and the Wages of Young Men
The Review of Economics and Statistics 80,2 (May 1998): 276-286.
Also: http://www.jstor.org/stable/2646638
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Job Tenure; Job Turnover; Mobility; Mobility, Job; Modeling; Wage Models

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

This study uses data from the National Longitudinal Survey of Youth to distinguish empirically between mover-stayer, "search good," and "experience good" models of job mobility. We estimate wage models in which the pattern of overall job mobility affects both the level and tenure slope of the log-wage path. After controlling for the correlation between mobility patterns and time-constant person- and job-specific unobservables, we find that workers who undergo persistent mobility have lower log-wage paths than less mobile workers. This finding is consistent with models in which job mobility is driven by time-varying unobservables, such as "experience good" models, where changes in perceived match quality cause turnover. Copyright 1998, President and Fellows of Harvard College and the MIT.
Bibliography Citation
Light, Audrey L. and Kathleen McGarry. "Job Change Patterns and the Wages of Young Men." The Review of Economics and Statistics 80,2 (May 1998): 276-286.
57. Light, Audrey L.
Strayer, Wayne Earle
From Bakke to Hopwood: Does Race Affect Attendance and Completion?
Review of Economics and Statistics 84,1 (February 2002): 34-44.
Also: http://www.jstor.org/stable/3211737
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Affirmative Action; College Dropouts; College Education; College Enrollment; College Graduates; Educational Attainment; Minorities

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

In light of recent, state-level actions banning racial preference in college admissions decisions, we investigate how whites and minorities differ in their college-going behavior. Using data from the National Longitudinal Survey of Youth, we estimate a sequential model of college attendance and graduation decisions that allows correlations among the errors. Our estimates reveal that minorities are more likely than observationally equivalent whites to attend colleges of all quality levels. Being a minority has a positive effect on graduation probabilities, but, overall, minorities are less likely than their white counterparts to complete college because they possess fewer favorable unobserved factors.
Bibliography Citation
Light, Audrey L. and Wayne Earle Strayer. "From Bakke to Hopwood: Does Race Affect Attendance and Completion?" Review of Economics and Statistics 84,1 (February 2002): 34-44.
58. Link, Charles R.
Ratledge, Edward C.
The Influence of the Quantity and Quality of Education on Black-White Earnings Differentials: Some New Evidence
Review of Economics and Statistics 57,3 (August 1975): 346-350.
Also: http://www.jstor.org/stable/1923919
Cohort(s): Young Men
Publisher: Harvard University Press
Keyword(s): Earnings; Education, Secondary; Educational Attainment; Educational Returns; Fathers, Influence; High School; Racial Differences; Work Knowledge

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

The main thrust of the article has been to estimate the effects on earnings of the quantity and quality of education. The quality of education, measured by expenditures per pupil in the district where the respondent attended secondary school, exerts an important impact on the annual earnings for both races. For the sample of young males examined, these findings suggest that expenditures may be more important to blacks than whites. This result holds even in the full model which includes ability. Increasing the quality of schools in predominantly black areas may have a long-run effect on black earnings. Also, the rate of return associated with extra expenditures on blacks is 7.82%. The latter finding implies that additional expenditures on blacks may be economically efficient as well as equitable.
Bibliography Citation
Link, Charles R. and Edward C. Ratledge. "The Influence of the Quantity and Quality of Education on Black-White Earnings Differentials: Some New Evidence." Review of Economics and Statistics 57,3 (August 1975): 346-350.
59. Long, James E.
Jones, Ethel B.
Labor Force Entry and Exit by Married Women: A Longitudinal Analysis
Review of Economics and Statistics 62,1 (February 1980): 1-6.
Also: http://www.jstor.org/stable/1924266
Cohort(s): Mature Women
Publisher: Harvard University Press
Keyword(s): Employment; Family Income; Husbands, Income; Wives; Work History

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

This article examines how a wife's year to year transition between labor force states is related to changes in market earnings potential. Findings reveal characteristics of women who will remain in the labor force. For example, the likelihood of a wife withdrawing from the labor market is somewhat higher for women giving birth to a child. Those who are likely to enter the labor force are those whose family capacity has increased, especially if their husbands' income has fallen.
Bibliography Citation
Long, James E. and Ethel B. Jones. "Labor Force Entry and Exit by Married Women: A Longitudinal Analysis." Review of Economics and Statistics 62,1 (February 1980): 1-6.
60. Luft, Harold S.
The Impact of Poor Health on Earnings
Review of Economics and Statistics 57,1 (February 1975): 43-57.
Also: http://www.jstor.org/stable/1937862
Cohort(s): Older Men
Publisher: Harvard University Press
Keyword(s): Disabled Workers; Earnings; Health/Health Status/SF-12 Scale; Socioeconomic Status (SES); Work History

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

The author investigated several aspects of the impact of health on earnings. The determination of yearly earnings was divided into its component parts so that nine equations could be used to measure the gross and net effects of health for each component. These results were converted into overall measures of earnings loss of each component of earnings examined. From labor force participation to hourly wage and hours worked per week, not only are the observed values for the sick less than those of the well, but differences remain even after adjustment for different characteristics of the two populations. A clear "health" effect is thus apparent.
Bibliography Citation
Luft, Harold S. "The Impact of Poor Health on Earnings." Review of Economics and Statistics 57,1 (February 1975): 43-57.
61. Lynch, Lisa M.
The Youth Labor Market In the Eighties: Determinants of Re-employment Probabilities for Young Men and Women
Review of Economics and Statistics 71,1 (February 1989): 37-45.
Also: http://www.jstor.org/stable/1928049
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Educational Returns; Gender Differences; Health/Health Status/SF-12 Scale; Job Search; Job Training; Local Labor Market; Marital Status; Racial Differences; Unemployment Compensation; Unemployment Duration

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

Data from the NLSY is used to develop a model analyzing transition probabilities from nonemployment to employment. The effect on reemployment probabilities of various personal characteristics including race, education, and health status, as well as receipt of unemployment income, local demand conditions, and duration dependence is examined. Significant differences were found between the labor market experiences of whites and nonwhites, and males and females with local demand conditions and human capital investments acting as important determinants of the duration of nonemployment spells.
Bibliography Citation
Lynch, Lisa M. "The Youth Labor Market In the Eighties: Determinants of Re-employment Probabilities for Young Men and Women." Review of Economics and Statistics 71,1 (February 1989): 37-45.
62. Mansour, Hani
McKinnish, Terra
Who Marries Differently Aged Spouses? Ability, Education, Occupation, Earnings, and Appearance
Review of Economics and Statistics 96,3 (July 2014): 577-580.
Also: http://www.mitpressjournals.org/doi/abs/10.1162/REST_a_00377#.V4AKbnrqXNJ
Cohort(s): NLSY79
Publisher: MIT Press
Keyword(s): Age and Ageing; Census of Population; Cognitive Ability; Educational Attainment; Marriage; National Longitudinal Study of Adolescent Health (AddHealth)

In direct contrast to conventional wisdom and most economic models of marital age gaps, we present robust evidence that men and women who are married to differently aged spouses are negatively selected. Empirical results show lower cognitive ability, lower educational attainment, lower occupational wages, lower earnings, and less attractive appearance among those married to a differently aged spouse. These results, obtained using samples of first marriages and controlling for age of marriage, are consistent with a model in which individuals with more schooling and more upwardly mobile occupations interact more heavily with similarly aged peers and are ultimately more likely to marry similarly-aged spouses.
Bibliography Citation
Mansour, Hani and Terra McKinnish. "Who Marries Differently Aged Spouses? Ability, Education, Occupation, Earnings, and Appearance." Review of Economics and Statistics 96,3 (July 2014): 577-580.
63. Mazumder, Bhashkar
Fortunate Sons: Estimates of Intergenerational Mobility in the United States Using Social Security Earnings Data
Review of Economics and Statistics 87,2 (May 2005): 235-255.
Also: http://www.jstor.org/stable/40042900
Cohort(s): NLSY79
Publisher: MIT Press
Keyword(s): Earnings; Family Income; Human Capital; Intergenerational Patterns/Transmission; Panel Study of Income Dynamics (PSID); Survey of Income and Program Participation (SIPP)

Previous studies, relying on short-term averages of fathers' earnings, have estimated the intergenerational elasticity (IGE) in earnings to be approximately 0.4. Due to persistent transitory fluctuations, these estimates have been biased down by approximately 30% or more. Using administrative data containing the earnings histories of parents and children, the IGE is estimated to be around 0.6. This suggests that the United States is substantially less mobile than previous research indicated. Estimates of intergenerational mobility are significantly lower for families with little or no wealth, offering empirical support for theoretical models that predict differences due to borrowing constraints.
Bibliography Citation
Mazumder, Bhashkar. "Fortunate Sons: Estimates of Intergenerational Mobility in the United States Using Social Security Earnings Data." Review of Economics and Statistics 87,2 (May 2005): 235-255.
64. Meyer, Jack A.
The Impact of Welfare Benefit Levels and Tax Rates on the Labor Supply of Poor Women
Review of Economics and Statistics 57,2 (May 1975): 236-238.
Also: http://www.jstor.org/stable/1924007
Cohort(s): Mature Women
Publisher: Harvard University Press
Keyword(s): Earnings; Taxes; Wages; Welfare

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

This paper incorporates wage income concepts into a model of work-leisure choice. The labor supply of poor women is shown to depend upon the market wage rate adjusted for the implicit welfare tax rate, potential other income and the home wage rate. For both black and white groups, potential other income is negatively related to hours worked while the net market wage rate is not significantly related to hours worked.
Bibliography Citation
Meyer, Jack A. "The Impact of Welfare Benefit Levels and Tax Rates on the Labor Supply of Poor Women." Review of Economics and Statistics 57,2 (May 1975): 236-238.
65. Neumark, David B.
Youth Labor Markets in the United States: Shopping Around vs. Staying Put
Review of Economics and Statistics 84,3 (August 2002): 462-482.
Also: http://www.jstor.org/stable/3211564
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Career Patterns; Endogeneity; Labor Force Participation; Labor Market Demographics; Mobility, Labor Market; Skills; Teenagers; Wages, Adult; Wages, Youth

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

The need for school-to-work programs or other means of increasing early job market stability is predicated on the view that the "chaotic" nature of youth labor markets in the United States is costly because workers drift from one job to another without developing skills, behavior, or other characteristics that in turn lead to higher adult earnings. However, there is also ample evidence that workers receive positive returns to job shopping. This paper asks whether youths in unstable jobs early in their careers suffer adverse labor market consequences as adults. Its specific contribution is to account for the endogenous determination of early job stability and adult wages as outcomes of a job search/job shopping process. Labor market conditions in the early years in the labor market are used as instrumental variables for the job stability experienced during those years. The instrumental variables estimates generally point to substantial positive effects of early job stability on adult wages in contrast to OLS estimates, which indicate little or no relationship.
Bibliography Citation
Neumark, David B. "Youth Labor Markets in the United States: Shopping Around vs. Staying Put." Review of Economics and Statistics 84,3 (August 2002): 462-482.
66. O'Neill, June E.
Bassi, Laurie
Wolf, Douglas
The Duration of Welfare Spells
Review of Economics and Statistics 69,2 (May 1987): 241-248.
Also: http://www.jstor.org/stable/1927231
Cohort(s): Young Women
Publisher: Harvard University Press
Keyword(s): Welfare; Women

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

Probability distributions for the duration of welfare spells are estimated utilizing data from the NLS of Young Women. The principle guiding the work is that a recipient won't exit from welfare if the expected utility on welfare exceeds the expected utility off welfare. Our analysis indicates that while the majority of welfare spells are of short duration, a non-trivial minority of spells are quite long. Those recipients with long spells are found to differ in predictable ways from those experiencing brief spells. This suggests that strategies to move women off welfare are necessary in many cases, and should be targeted on those most likely to be long-term recipients.
Bibliography Citation
O'Neill, June E., Laurie Bassi and Douglas Wolf. "The Duration of Welfare Spells." Review of Economics and Statistics 69,2 (May 1987): 241-248.
67. Parsons, Donald O.
The Job Search Behavior of Employed Youth
Review of Economics and Statistics 73,4 (November 1991): 597-604.
Also: http://www.jstor.org/stable/2109398
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Employment, Youth; Gender Differences; Job Search; Marital Status; Quits; Racial Differences; Wages

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

An employed worker's search strategies include: 1. employed-not searching, 2. employed-searching, and 3. unemployed-searching, which requires that the worker quit work in order to search. Under plausible assumptions on search costs, the optimal algorithm involves a dual reservation wage strategy. The probability of on-the-job search increases as the current wage decreases relative to the distribution of alternative wages. If the wage is sufficiently low, the searcher quits to search, substituting time for financial outlays. Estimates based on the National Longitudinal Survey of Youth indicate that these calculations characterize the search strategies of young workers. The simulations indicate that, as own wage increases from 30% below the mean wage to 30% above it, quitting-to-search falls from 10.7% to 5.2% among males and from 14.8% to 5% among females. Searching on-the-job decreases as well, although less dramatically. (ABI/Inform)
Bibliography Citation
Parsons, Donald O. "The Job Search Behavior of Employed Youth." Review of Economics and Statistics 73,4 (November 1991): 597-604.
68. Polachek, Solomon W.
Occupational Self-Selection: A Human Capital Approach to Sex Differences in Occupational Structure
Review of Economics and Statistics 63,1 (February 1981): 60-69.
Also: http://www.jstor.org/stable/1924218
Cohort(s): Mature Women
Publisher: Harvard University Press
Keyword(s): Discrimination, Sex; Human Capital Theory; Occupational Status; Occupations, Female

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

The purpose of this paper is to alleviate some of the criticism of the human capital model by applying the hedonic price approach so as to embed occupational choice into the human capital framework. The significance is that neoclassical economic theory can be used to obtain implications concerning the determinants of occupational structure. The model outlined in this paper is in part designed to shed light on the question of why within most societies women are by and large relegated to different occupations than men.
Bibliography Citation
Polachek, Solomon W. "Occupational Self-Selection: A Human Capital Approach to Sex Differences in Occupational Structure." Review of Economics and Statistics 63,1 (February 1981): 60-69.
69. Ribar, David C.
Teenage Fertility and High School Completion
Review of Economics and Statistics 76,3 (August 1994): 413-424.
Also: http://www.jstor.org/stable/2109967
Cohort(s): NLSY79
Publisher: Harvard University Press
Keyword(s): Adolescent Fertility; Age at Menarche; Benefits; Childbearing; Educational Attainment; Endogeneity; Family Planning; High School Completion/Graduates; Modeling, Probit; Religious Influences; School Completion; Schooling; Teenagers

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

This paper uses 1979-85 data on women from the NLSY to examine the economic and demographic antecedents of adolescent childbearing and high school completion. Teenage fertility and high school completion are modeled as dichotomous variables, and their determinants are estimated using a bivariate probit. Importantly, early fertility is modeled as an endogenous determinant of schooling. Previous studies which have attempted to control for the possible endogeneity of fertility have relied on questionable identifying restrictions. The identifying variables in this paper--age at menarche, state expenditures for family planning services and state contraceptive and abortion restrictions--represent a vast improvement over previous work in that they are theoretically and statistically related with early fertility but not directly associated with schooling. The paper finds that when proper identifying instruments are used teenage fertility appears to have little effect on high school completion. This result is robust to respecification of the dependent variables and respecification of the model generally. The result suggests that policy interventions aimed only at reducing early fertility such as freely distributing contraceptives or increasing the access to family planning clinics may not affect school completion. The paper does find that welfare generosity, family structure, parents' socioeconomic status, religiousness and race are significant determinants of both fertility and schooling. Thus, interventions directed at these underlying causes may be successful in reducing teen childbearing and increasing schooling.
Bibliography Citation
Ribar, David C. "Teenage Fertility and High School Completion." Review of Economics and Statistics 76,3 (August 1994): 413-424.
70. Ritter, Joseph A.
Taylor, Lowell J.
Racial Disparity in Unemployment
Review of Economic and Statistics 93,1(February 2011): 30-42
Cohort(s): NLSY79
Publisher: MIT Press
Keyword(s): Black Studies; Discrimination, Employer; Discrimination, Job; Discrimination, Racial/Ethnic; Racial Differences; Statistical Analysis; Unemployment Rate; Wage Theory

"In the United States, black workers earn less than their white counterparts and have higher rates of unemployment. Empirical work indicates that most of this wage gap is accounted for by differences in cognitive skills that emerge at an early age. In this paper, we demonstrate that the same is not true for black-white disparity in unemployment. A large unexplained unemployment differential motivates the paper's second contribution--a potential theoretical explanation. This explanation is built around a model that embeds statistical discrimination into the subjective worker evaluation process that lies at the root of the efficiency-wage theory of equilibrium unemployment." (p.30)
Bibliography Citation
Ritter, Joseph A. and Lowell J. Taylor. "Racial Disparity in Unemployment." Review of Economic and Statistics 93,1(February 2011): 30-42.
71. Robinson, James C.
Worker Responses to Occupational Risk of Cancer
Review of Economics and Statistics 72,3 (August 1990): 536-541.
Also: http://www.jstor.org/stable/2109365
Cohort(s): Young Men, Young Women
Publisher: Harvard University Press
Keyword(s): Health Factors; Job Hazards; Working Conditions

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

Toxicological data from the Registry of Toxic Effects of Chemical Substances and worker exposure data from the National Occupational Health Survey are used to construct an occupational cancer risk index. This objective cancer risk measure is strongly correlated with subjective worker-assessed measures of exposure to health hazards in the 1978-80 NLS of Young Men and Young Women. A total of 1,837 NLS respondents were employed in the occupations for which cancer risk information is available. The NLS quit measure is constructed as a variable taking the value of one if the worker quit a job between 1978 and 1980 (men) or between 1980 and 1982 (women). Workers exposed to occupational health hazards, as measured by the objective risk index and the subjective risk perceptions, are more apt to quit their jobs than are otherwise comparable workers not exposed to hazards. They also pursue voice strategies, as measured by their willingness to vote in favor of union representation. [ABI/INFORM]
Bibliography Citation
Robinson, James C. "Worker Responses to Occupational Risk of Cancer." Review of Economics and Statistics 72,3 (August 1990): 536-541.
72. Rosen, Harvey S.
Tax Illusion and the Labor Supply of Married Women
Review of Economics and Statistics 58,2 (May 1976): 167-172.
Also: http://www.jstor.org/stable/1924022
Cohort(s): Mature Women
Publisher: Harvard University Press
Keyword(s): Children; Employment; Household Income; Sex Roles; Taxes; Wives; Work Attitudes

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

This study discusses the impact of tax rates on the labor supply of married women. The most important empirical result is that married women correctly perceive the wedge between the gross and net wage that is imposed by the income tax. That is, their labor supply decisions are based upon the after-tax wage, as suggested by basic economic theory.
Bibliography Citation
Rosen, Harvey S. "Tax Illusion and the Labor Supply of Married Women." Review of Economics and Statistics 58,2 (May 1976): 167-172.
73. Rothstein, Donna S.
Breastfeeding and Children's Early Cognitive Outcomes
Review of Economics and Statistics 95,3 (July 2013): 919-931.
Also: http://www.mitpressjournals.org/doi/abs/10.1162/REST_a_00282
Cohort(s): Children of the NLSY79, NLSY79
Publisher: MIT Press
Keyword(s): Armed Forces Qualifications Test (AFQT); Breastfeeding; Children, Academic Development; Early Childhood Longitudinal Study (ECLS-B, ECLS-K); Home Observation for Measurement of Environment (HOME); Maternal Employment; Panel Study of Income Dynamics (PSID); Peabody Individual Achievement Test (PIAT- Math); Peabody Individual Achievement Test (PIAT- Reading); Pre-natal Care/Exposure

This paper investigates whether breastfeeding affects 5- to 6-year old children's cognitive development using three U.S. longitudinal data sets. The results for the full samples roughly point to a dose-response effect of breastfeeding on children's cognitive outcomes, with breastfeeding six months or more associated with about one-tenth of a standard deviation increase in cognitive test scores. The breastfeeding effects do not appear to be due to differences in maternal employment, cognitive ability, or parenting skills. In contrast, within-sibling results show no statistically significant breastfeeding effect.
Bibliography Citation
Rothstein, Donna S. "Breastfeeding and Children's Early Cognitive Outcomes." Review of Economics and Statistics 95,3 (July 2013): 919-931.
74. Sandell, Steven H.
Is the Unemployment Rate of Women Too Low? A Direct Test of the Economic Theory of Job Search
Review of Economics and Statistics 62,4 (November 1980): 634-637.
Also: http://www.jstor.org/stable/1924792
Cohort(s): Mature Women
Publisher: Harvard University Press
Keyword(s): Behavior; Job Search; Local Labor Market; Unemployment; Wages; Wages, Reservation; Wives

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

In this analysis, job search behavior of unemployed married women is examined as well as actual observations of reported reservation wages, duration of unemployment and subsequent wage gain. Findings show women with higher reservation wages are subject to longer periods of unemployment but are rewarded with higher paying jobs. Women who lose their jobs experience longer unemployment periods than women who leave their jobs. Economic and local labor market conditions significantly affect the unemployment duration of married women. Based on financial considerations, it is found that married women could profitably spend a longer period of time on job search and thereafter, attain higher wages. Finally, the author examines possible causes for under-investment in job search activities. Note: An earlier version of this paper appeared as a July 1979 report from the Center for Human Resource Research, The Ohio State University, Columbus, Ohio.
Bibliography Citation
Sandell, Steven H. "Is the Unemployment Rate of Women Too Low? A Direct Test of the Economic Theory of Job Search." Review of Economics and Statistics 62,4 (November 1980): 634-637.
75. Sandell, Steven H.
Women and the Economics of Family Migration
Review of Economics and Statistics 59,4 (November 1977): 406-414.
Also: http://www.jstor.org/stable/1928705
Cohort(s): Mature Women, Older Men, Young Men, Young Women
Publisher: Harvard University Press
Keyword(s): Earnings, Husbands; Earnings, Wives; Family Income; Migration; Mobility

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

In this paper, an economic model is developed to explain the family decision to migrate and the effect of migration on the labor market earnings of men and women. It is based on the tenet that family utility, defined operationally as the husband's and wife's labor market earnings and leisure, is a significant consideration in a (husband-wife) family's decision to migrate. The empirical results are consistent with the theory. On the one hand, the labor market orientation of the wife seems to be taken into consideration in the decision of a family to migrate. On the other hand, the migration of the family increases the earnings of the husband but does not increase the labor market earnings of the wife. In contrast, the earnings of never married women increased after moving. Since family earnings have been shown to increase as a result of migration, the decision to migrate is rational from the viewpoint of the family. It seems that the contribution of the wife to family income is considered, but the positive effect of migration on husband's earnings often outweighs the (initial) negative effect of migration on the wife's weeks worked and consequently, her earnings. This is not to say that migration is involuntary for wives in the usual sense, but to emphasize that what is beneficial to the welfare of the family (and the wife as a family member and consumer of family income) is nevertheless consistent with lower labor market earnings of the wife. The interruption of women's careers is often an effect of migration and the maximization of the utility of the family unit. If the participation of women in the labor force continues to increase, this may have a limiting effect on the geographic mobility of the male labor force.
Bibliography Citation
Sandell, Steven H. "Women and the Economics of Family Migration." Review of Economics and Statistics 59,4 (November 1977): 406-414.
76. Sant, Donald T.
Reservation Wage Rules and Learning Behavior
Review of Economics and Statistics 59,1 (February 1977): 43-49.
Also: http://www.jstor.org/stable/1924902
Cohort(s): Young Men
Publisher: Harvard University Press
Keyword(s): I.Q.; Job Search; Schooling; Unemployment; Wages, Reservation; Work Knowledge

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

This paper examines the time path of wage demands of the unemployed as a test of some of the implications of the search models. The results suggest that individuals do learn about the distribution of wages, and that they learn in an appropriate and systematic way. Information about the distribution of wages is important and can be obtained without necessarily learning about the distribution of vacancies.
Bibliography Citation
Sant, Donald T. "Reservation Wage Rules and Learning Behavior." Review of Economics and Statistics 59,1 (February 1977): 43-49.
77. Sobol, Marion Gross
Factors Influencing Private Capital Accumulation on the 'Eve of Retirement'
Review of Economics and Statistics 61,4 (November 1979): 585-593.
Also: http://www.jstor.org/stable/1935789
Cohort(s): Older Men
Publisher: Harvard University Press
Keyword(s): Educational Attainment; Ethnic Groups/Ethnicity; Family Resources; Health/Health Status/SF-12 Scale; Job Tenure; Locus of Control (see Rotter Scale); Marital Status; Pensions; Retirement; Rotter Scale (see Locus of Control)

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

This paper examines net worth situations of a nationwide sample of men "on the eve of retirement" to find out (1) the current state of net worth, (2) factors related to high levels of net worth, (3) future prospects for these factors, and (4) policies that might be employed to stimulate growth in net worth. In summary, of all the variables that lead to large net worth only the declining number of dependents for both white and black families can be expected to push toward higher levels of net worth in the coming decades. Increased participation in private pensions may also increase net worth if these plans have special rewards for employee savings. Otherwise, trends in the other variables, marital status, number of years in a job, rural-urban residence, and ethnic background, seem to point toward a decrease in net worth.
Bibliography Citation
Sobol, Marion Gross. "Factors Influencing Private Capital Accumulation on the 'Eve of Retirement'." Review of Economics and Statistics 61,4 (November 1979): 585-593.
78. Stevenson, Betsey
Beyond the Classroom: Using Title IX to Measure the Return to High School Sports
Review of Economics and Statistics 92,2 (May 2010): 284-301.
Also: http://www.jstor.org/stable/27867537
Cohort(s): NLSY79
Publisher: MIT Press
Keyword(s): Athletics (see SPORTS); College Enrollment; Extracurricular Activities/Sports; Gender Attitudes/Roles; Gender Differences; High School; Labor Market Outcomes; Sports (also see ATHLETICS); State-Level Data/Policy

Between 1972 and 1978 U.S. high schools rapidly increased their female athletic participation rates in order to comply with Title IX. This paper examines the causal implications of this expansion by using variation in the level of boys' athletic participation across states before Title IX to instrument for change in girls' athletic participation. Analysis of differences in outcomes across states in changes between pre- and postcohorts reveals that a 10 percentage point rise in state-level female sports participation generates a 1 percentage point increase in female college attendance and a 1 to 2 percentage point rise in female labor force participation.
Bibliography Citation
Stevenson, Betsey. "Beyond the Classroom: Using Title IX to Measure the Return to High School Sports." Review of Economics and Statistics 92,2 (May 2010): 284-301.
79. Tremblay, Carol Horton
Regional Wage Differentials: Has the South Risen Again?: A Comment
Review of Economics and Statistics 68,1 (February 1986): 175-178.
Also: http://www.jstor.org/stable/1924944
Cohort(s): Young Men
Publisher: Harvard University Press
Keyword(s): Regions; Research Methodology; Rural Areas; Selectivity Bias/Selection Bias; Wage Differentials

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

In contrast to the findings of Sahling and Smith (1983) that Southern real wages are greater than real wages of comparable workers in other regions, the Southern-non-Southern real wage ratio is estimated at 90 percent from a model with a selectivity bias correction. The Southern-non-Southern wage offer differential is more than twenty- two percent and consists of a 9.7 percent component due to different parameter estimates and a 12.7 portion due to different average characteristics.
Bibliography Citation
Tremblay, Carol Horton. "Regional Wage Differentials: Has the South Risen Again?: A Comment." Review of Economics and Statistics 68,1 (February 1986): 175-178.
80. Trost, Robert P.
Lee, Lung-Fei
Technical Training and Earnings: A Polychotomous Choice Model with Selectivity
Review of Economics and Statistics 66,1 (February 1984): 151-156.
Also: http://www.jstor.org/stable/1924708
Cohort(s): Young Men
Publisher: Harvard University Press
Keyword(s): Educational Returns; Schooling; Vocational Education; Wages

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

This paper presents a model with polychotomous choices and selectivity and then applies it to the problem of estimating the returns to technical school training. Using the NLS of Young Men, the paper finds evidence of self-selectivity in the high school wage equation and estimates the wage effect of technical school to be a $1. 27 per hour increase in wages. This amounts to an estimated rate of return of 9 to 11. 2%, which is slightly higher than estimates obtained by others. Without corrections for selectivity bias, the rate of return is underestimated by 6%.
Bibliography Citation
Trost, Robert P. and Lung-Fei Lee. "Technical Training and Earnings: A Polychotomous Choice Model with Selectivity." Review of Economics and Statistics 66,1 (February 1984): 151-156.