Search Results
Journal Article
Local price variation and labor supply behavior
In standard economic theory, labor supply decisions depend on the complete set of prices: wages and the prices of relevant consumption goods. Nonetheless, most theoretical and empirical work in labor supply studies ignore prices other than wages. We address the question of whether the common practice of ignoring local price variation in labor supply studies is as innocuous as generally assumed. We describe a simple model to demonstrate that the effects of wage and nonlabor income on labor supply typically differ by location. In particular, we show that the derivative of the labor supply with ...
Journal Article
Understanding poverty measures and the call to update them
Official poverty rates are on the rise in the United States. But does this necessarily mean that more people can?t meet their basic needs? This article examines how poverty is calculated and looks at the criticisms of these measures.
Journal Article
Community colleges: not so junior anymore
Nearly half of all undergraduates in the U.S. are attending community colleges. Such colleges are cheaper, closer to home-and much more varied in their offerings than ever before. At some, you can even get a bachelor's degree.
Journal Article
The return to education isn't calculated easily
Most studies estimate that the return to each year of education is about 10 percent. But calculating the financial gain is not a cut-and-dried process. Even more difficult is calculating the nonmonetary return.
Journal Article
Local price variation and labor supply behavior
In standard economic theory, labor supply decisions depend on the complete set of prices: wages and the prices of relevant consumption goods. Nonetheless, most theoretical and empirical work in labor supply studies ignores prices other than wages. We address the question of whether the common practice of ignoring local price variation in labor supply studies is as innocuous as generally assumed. We describe a simple model to demonstrate that the effects of wage and nonlabor income on labor supply typically differ by location. In particular, we show that the derivative of the labor supply with ...
Journal Article
The gender wage gap
The actual gender wage disparity (which compares the wages of male and female workers with similar labor-force characteristics) is lower than the raw gender earnings gap.
Journal Article
Jobless recoveries: causes and consequences
Working Paper
Local price variation and the tax incidence of state lotteries
This paper explores the seemingly innocuous practice of ignoring the local price vector in empirical models of lottery demand. We argue using consumer theory that local consumption prices should be included and that the failure to consider local prices results in income elasticity of lottery demand estimates that are biased downward. Using a sample of MSAs, we find that, in accordance with our theory, local prices are a significant determinant of lottery sales and the income elasticity of demand for lotteries is greater in magnitude when the local price vector is considered. The degree of ...
Journal Article
The economic progress of African Americans in urban areas: a tale of 14 cities
How significant was the economic progress of African Americans in the United States between 1970 and 2000? In this paper the authors examine this issue for black men 25 to 55 years of age who live in 14 large U.S. metropolitan areas. They present the evidence that significant racial disparities remain in education and labor market outcomes of black and white men, and they discuss changes in industrial composition, migration, and demography that might have contributed to the stagnation of economic progress of black men between 1970 and 2000. In addition, the authors show that there was no ...