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Working Paper
Minimum wages and firm employment: evidence from China
Huang, Yi; Wang, Gewei; Loungani, Prakash (2014-04-01)
This paper studies how minimum wage policies affect firm employment in China using a unique county level minimum wage data set matched to disaggregated firm survey data. We investigate both the effect of imposing a minimum wage, and the effect of the policies that tightened enforcement in 2004. We find that the average effect of minimum wage changes is modest and positive, and that there is a detectable effect after enforcement reform. Firms have heterogeneous responses to minimum wage changes which can be accounted for by differences in their wage levels and profit margins: firms with high ...
Globalization Institute Working Papers , Paper 173

Report
Taxation of human capital and wage inequality: a cross-country analysis
Ozkan, Serdar; Kuruscu, Burhanettin; Guvenen, Fatih (2009)
Wage inequality has been significantly higher in the United States than in continental European countries (CEU) since the 1970s. Moreover, this inequality gap has further widened during this period as the US has experienced a large increase in wage inequality, whereas the CEU has seen only modest changes. This paper studies the role of labor income tax policies for understanding these facts. We begin by documenting two new empirical facts that link these inequality differences to tax policies. First, we show that countries with more progressive labor income tax schedules have significantly ...
Staff Report , Paper 438

Journal Article
To bear, or not to bear: is that an economics question?
Wall, Howard J.; Skiba, Paige M. (2001-07)
Weighing the costs vs. the benefits of having children may seem like a cold-blooded exercise. Yet such an analysis can help us understand not only such private decisions but public policies, too.
The Regional Economist , Issue Jul , Pages 10-11

Working Paper
Firms as Learning Environments: Implications for Earnings Dynamics and Job Search
Gregory, Victoria (2021-01-28)
This paper demonstrates that heterogeneity in firms’ promotion of human capital accumulation is an important determinant of life-cycle earnings inequality. I use administrative micro data from Germany to show that different establishments offer systematically different earnings growth rates for their workers. This observation suggests that that the increase in inequality over the life cycle reflects not only inherent worker variation, but also differences in the firms that workers happen to match with over their lifetimes. To quantify this channel, I develop a life-cycle search model with ...
Working Papers , Paper 2020-036

Conference Paper
Boosting rural human capital
Jischke, Martin C. (2000-10)
Proceedings – Rural and Agricultural Conferences , Issue Oct , Pages 93-101

Working Paper
Occupation Mobility, Human Capital and the Aggregate Consequences of Task-Biased Innovations
Monge-Naranjo, Alexander; Dvorkin, Maximiliano (2019-04-23)
We construct a dynamic general equilibrium model with occupation mobility, human capital accumulation and endogenous assignment of workers to tasks to quantitatively assess the aggregate impact of automation and other task-biased technological innovations. We extend recent quantitative general equilibrium Roy models to a setting with dynamic occupational choices and human capital accumulation. We provide a set of conditions for the problem of workers to be written in recursive form and provide a sharp characterization for the optimal mobility of individual workers and for the aggregate supply ...
Working Papers , Paper 2019-13

Working Paper
Which Ladder to Climb? Wages of Workers by Job, Plant, and Education
Kuhn, Moritz; Bayer, Christian (2018-09-12)
Wages grow but also become more unequal as workers age. Using German administrative data, we largely attribute both life-cycle facts to one driving force: some workers progress in hierarchy to jobs with more responsibility, complexity, and independence. In short, they climb the career ladder. Climbing the career ladder explains 50% of wage growth and virtually all of rising wage dispersion. The increasing gender wage gap by age parallels a rising hierarchy gap. Our findings suggest that wage dynamics are shaped by the organization of production, which itself likely depends on technology, the ...
Opportunity and Inclusive Growth Institute Working Papers , Paper 15

Report
Human capital investments and expectations about career and family
Zafar, Basit; Wiswall, Matthew (2016-08-01)
This paper studies how individuals believe human capital investments will affect their future career and family life. We conducted a survey of high-ability currently enrolled college students and elicited beliefs about how their choice of college major, and whether to complete their degree at all, would affect a wide array of future events, including future earnings, employment, marriage prospects, potential spousal characteristics, and fertility. We find that students perceive large ?returns" to human capital not only in their own future earnings, but also in a number of other dimensions ...
Staff Reports , Paper 792

Discussion Paper
Human capital, aggregate shocks, and panel data estimation
Miller, Robert A.; Altug, Sumru (1990)
This paper analyses how the wage and employment decisions of females are affected by past workforce participation and hours supplied. Our estimation methods exploit the fact that, when markets are complete, the Lagrange multiplier for an agents lifetime budget constraint always enters multiplicatively with the prices of (contingent claims to) consumption and leisure. Depending on the properties of the equilibrium price process, it is thus possible to predict the behavior of a wealthy agent by observing that of a poorer person living in a more prosperous world. This provides the key to ...
Discussion Paper / Institute for Empirical Macroeconomics , Paper 47

Working Paper
The Long-Run Effects of Neighborhood Change on Incumbent Families
Hartley, Daniel; Lee, Kwan Ok; Baum-Snow, Nathaniel (2019-03-18)
A number of prominent studies examine the long-run effects of neighborhood attributes on children by leveraging variation in neighborhood exposure through household moves. However, much neighborhood change comes in place rather than through moving. Using an urban economic geography model as a basis, this paper estimates the causal effects of changes in neighborhood attributes on long-run outcomes for incumbent children and households. For identification, we make use of quasi-random variation in 1990-2000 and 2000-2005 skill specific labor demand shocks hitting each residential metro area ...
Working Paper Series , Paper WP-2019-2

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