Interview with James J. Heckman
Nobel prize-winning economist James J. Heckman on discrimination, job training and early childhood education.
The economic value of education by race and ethnicity
Using data from the U.S. Census and the National Longitudinal Surveys, the authors find little evidence of differences in the economic value of education across racial and ethnic groups, even with attempts to control for ability and measurement error biases. As a result, they argue, policies that increase education among the low-skilled, who are disproportionately African American and Hispanic, have a good possibility of increasing their economic well-being and reducing inequality.
Inferring labor income risk and partial insurance from economic choices
This paper uses the information contained in the joint dynamics of individuals? labor earnings and consumption-choice decisions to quantify both the amount of income risk that individuals face and the extent to which they have access to informal insurance against this risk. We accomplish this task by using indirect inference to estimate a structural consumption-savings model, in which individuals both learn about the nature of their income process and partly insure shocks via informal mechanisms. In this framework, we estimate (i) the degree of partial insurance, (ii) the extent of systematic ...
U.S. labor input in coming years
Chartered Financial Analysts Society of Philadelphia, Wilmington, Del., Nov. 14, 2006
Why Johnny can’t work
The Affordable Care Act and the labor market: a first look
I consider changes in labor markets across U.S. states and counties around the enactment of the Affordable Care Act in 2010 and its implementation in 2014. I find that counties with large fractions of uninsured (and therefore a large exposure to the ACA) before the enactment or the implementation of the ACA experienced more rapid employment and salary growth than did counties with smaller fractions of people uninsured, both after the implementation of the ACA and after its enactment. I also find that the growth of the fraction of employees in states with larger uninsurance rates was not ...
The labor of a Renaissance man
From Jos-Vctor Ros-Rull?s extensive agenda, a promising glimpse at failure
Interview with David Card
David Card, University of California, Berkeley economist, on immigration, labor supply, minimum wage and inequality.
A quantitative theory of the gender gap in wages
Using panel data from the National Longitudinal Survey of Youth (NLSY), we document that gender differences in wages almost double during the first 20 years of labor market experience and that there are substantial gender differences in employment and hours of work during the life cycle. A large portion of gender differences in labor market attachment can be traced to the impact of children on the labor supply of women. We develop a quantitative life-cycle model of fertility, labor supply, and human capital accumulation decisions. We use this model to assess the role of fertility on gender ...
Boomerang kids: labor market dynamics and moving back home
This paper examines the relationship between the dynamics of parent-youth living arrangements and labor market outcomes for youths who do not go to college in the United States. The data come from a newly constructed panel data set based on retrospective monthly coresidence questions in the NLSY97. This is the first data set containing information on the labor market circumstances of youths at the time of movements in and out of the parental home. Based on estimates from duration models that allow for unobserved heterogeneity, I find that moving from employment to non-employment increases the ...