HANDBOOK OF LABOR ECONOMICS, VOLUME 4A & B SET: HANDBOOK OF LABOR ECONOMICS, VOL 4A, Volume 4A

Volume_4B 1.pdf......Page 1
Volume_4B 2.pdf......Page 2
Volume_4B 3.pdf......Page 3
Volume_4B 4.pdf......Page 4
Volume_4B 5.pdf......Page 5
Copyright page......Page 0
Contents of Volume 4B......Page 6
Contents of Volume 4A......Page 10
Contributors to Volume 4B......Page 14
Earnings, Consumption and Life Cycle Choices......Page 16
Introduction......Page 17
The life cycle-permanent income hypothesis......Page 22
Approximation of the Euler equation......Page 27
Kaplan and Violante......Page 30
Modeling the Income Process......Page 32
Specifications......Page 34
A simple model of earnings dynamics......Page 35
Estimating and identifying the properties of the transitory shock......Page 37
Estimating alternative income processes......Page 39
The conditional variance of earnings......Page 43
A summary of existing studies......Page 46
Approach 1: identifying insurance for a given information set......Page 61
Hall and Mishkin (1982)......Page 62
Approach 2: identifying an information set for a given insurance configuration......Page 63
Is the increase in income inequality permanent or transitory?......Page 65
Identifying an information set......Page 66
Information or insurance?......Page 70
Blundell et al. (2008b)......Page 74
Solution 1: the quasi-experimental approach......Page 75
Solution 2: subjective expectations......Page 78
Income Processes, Labor Supply and Mobility......Page 82
Conclusions......Page 89
References......Page 91
Racial Inequality in the 21st Century: The Declining Significance of Discrimination......Page 98
Introduction......Page 99
The Declining Significance of Discrimination......Page 101
Basic Facts About Racial Differences in Achievement Before Kids Enter School......Page 108
Interventions to Foster Human Capital Before Children Enter School......Page 117
The Racial Achievement Gap in Kindergarten through 12th Grade......Page 123
The Racial Achievement Gap in High School......Page 150
Interventions to Foster Human Capital in School-Aged Children......Page 155
What do the results from HCZ tell us about interventions to close the achievement gap?......Page 167
Conclusion......Page 168
National Longitudinal Survey of Youth 1979 (NLSY79)......Page 169
National Longitudinal Survey of Youth 1997 (NLSY97)......Page 173
College & Beyond, 1976 Cohort (C&B)......Page 176
Early Childhood Longitudinal Study, Birth Cohort (ECLS-B)......Page 178
Collaborative Perinatal Project (CPP)......Page 184
Early Childhood Longitudinal Study, Kindergarten Cohort (ECLS-K)......Page 190
National Assessment of Educational Progress (NAEP)......Page 195
Dallas Independent School District......Page 197
New York City Department of Education......Page 201
National Education Longitudinal Study of 1988 (NELS)......Page 204
References......Page 208
Imperfect Competition in the Labor Market......Page 215
Frictions and idiosyncracies......Page 218
Institutions and collusion......Page 220
Theory......Page 222
Evidence on hiring costs......Page 224
Marginal and average hiring costs......Page 225
Theory......Page 226
Evidence......Page 228
The costs of job loss......Page 231
Models of Wage Determination......Page 232
Bargaining and posting......Page 233
The right model?......Page 236
Other perspectives on wage determination......Page 238
Estimates of rent-sharing......Page 239
The elasticity of the labor supply curve to an individual employer......Page 244
Experimental and quasi-experimental evidence......Page 249
Non-experimental studies......Page 251
The link between separation and recruitment elasticities......Page 255
Hiring costs revisited......Page 257
The employer size-wage effect......Page 259
Measuring labor market frictions......Page 260
So What?......Page 263
The law of one wage......Page 264
Labor market regulation......Page 266
The gender pay gap......Page 268
Economic geography......Page 269
Human capital accumulation and training......Page 271
Conclusion......Page 272
Estimating the Size of Rents from a Search Model......Page 273
A Model with Heterogeneous Worker Ability......Page 274
Results Equating Separation and Recruitment Elasticity......Page 276
References......Page 277
Skills, Tasks and Technologies: Implications for Employment and Earnings......Page 284
Introduction......Page 285
A brief overview of data sources......Page 289
The college/high school wage premium......Page 291
Real wage levels by skill group......Page 296
Overall wage inequality......Page 302
Job polarization......Page 311
The Canonical Model......Page 337
The simple theory of the canonical model......Page 342
Bringing Tinbergen\'s education race to the data......Page 348
Changes in the US earnings distribution through the lens of the canonical model......Page 349
Overall inequality in the canonical model......Page 355
Endogenous changes in technology......Page 357
Summary......Page 358
A Ricardian Model of the Labor Market......Page 359
Environment......Page 361
Equilibrium without machines......Page 362
Summary of equilibrium......Page 367
Special cases......Page 369
Comparative statics......Page 372
Task replacing technologies......Page 379
Endogenous choice of skill supply......Page 383
Offshoring......Page 387
Directed technical change......Page 388
Comparative Advantage and Wages: An Empirical Approach......Page 393
Concluding remarks......Page 398
References......Page 407
Institutional Reforms and Dualism in European Labor Markets......Page 413
Introduction......Page 414
Institutional clusters in Europe......Page 416
Institutional changes......Page 419
Some key definitions......Page 422
Tracking reforms in Europe......Page 425
Two-tier and incremental reforms......Page 426
Labor market vs. financial and product market reforms......Page 428
Gross job flows in the MP model......Page 430
Introducing institutions......Page 432
Partial equilibrium effects of complete reforms......Page 433
General equilibrium effects of complete reforms......Page 434
Two-tier reforms in the MP model......Page 436
Insider and outsider wages......Page 438
Job flows and two-tier reforms......Page 439
How relevant is dualism?......Page 440
Transitional dynamics: the ``honeymoon effect\'\'......Page 443
What matters in the reforms: a summary......Page 447
Are We Learning Enough from the Reforms?......Page 448
The literature on reforms of employment protection......Page 449
The literature on reforms of unemployment benefits......Page 453
The literature on reforms of employment conditional incentives......Page 457
The literature on experiments with activation programmes......Page 460
Final Remarks......Page 462
The  fRDB-IZA Social Policy Reforms Database......Page 463
Institutions in the MP Model......Page 464
References......Page 472
Local Labor Markets......Page 477
Introduction......Page 478
Some Important Facts about Local Labor Markets......Page 482
Nominal wages......Page 483
Real wages......Page 489
Productivity......Page 491
Innovation......Page 493
Equilibrium in Local Labor Markets......Page 494
Assumptions and equilibrium......Page 497
Effect of a labor demand shock on wages and prices......Page 500
Incidence: who benefits from the productivity increase?......Page 503
Effect of a labor supply shock on wages and prices......Page 504
Spatial equilibrium with heterogenous labor......Page 505
Assumptions and equilibrium......Page 506
Effect of a labor demand shock on wages and prices......Page 507
Incidence: changes in wage and utility inequality......Page 510
Spatial equilibrium with agglomeration economies......Page 513
Spatial equilibrium with tradable and non-tradable industries......Page 516
Some empirical evidence......Page 518
The Determinants of Productivity Differences Across Local Labor Markets......Page 521
Empirical estimates of agglomeration economies......Page 522
Thick labor markets......Page 526
Thick market for intermediate inputs......Page 530
Knowledge spillovers......Page 531
Implications for Policy......Page 536
Incidence of subsidies......Page 537
Nominal and real differences across skill groups and regions......Page 541
Subsidies to human capital when labor is mobile......Page 543
Internalizing agglomeration spillovers......Page 544
Unemployment, missing insurance and credit constraints......Page 547
Conclusions......Page 548
References......Page 549
Human Capital Development before Age Five......Page 554
Introduction......Page 555
Conceptual Framework......Page 561
Complementarity......Page 562
Fixed investments......Page 563
Remediation......Page 564
Responsive investments......Page 565
Methods......Page 567
Power......Page 572
Leveraging existing datasets......Page 575
Improvements in the production of administrative data......Page 577
Additional issues......Page 578
Empirical Literature: Evidence of Long Term Consequences......Page 579
Maternal health......Page 580
Air pollution......Page 606
Early childhood environment......Page 609
Health status......Page 610
Home environment......Page 633
Empirical Literature: Policy Responses......Page 635
Income enhancement......Page 636
Near-cash programs......Page 644
Early intervention programs......Page 658
Home visiting......Page 664
US supplemental feeding program for women, infants, and children (WIC)......Page 665
Child care......Page 672
Health insurance......Page 692
Discussion and Conclusions......Page 706
Appendix A......Page 707
Appendix B......Page 710
Appendix C......Page 711
Appendix D......Page 714
References......Page 715
Recent Developments in Intergenerational Mobility......Page 726
Intergenerational Correlations of Earnings and Education......Page 728
Issues in estimating the intergenerational elasticity of earnings......Page 729
Recent estimates of the IGE by country and over time......Page 734
Credit constraints and the IGE......Page 741
Intergenerational transmission of education......Page 742
Identifying the Causal Effects of Parental Education and Earnings......Page 746
Method 1: sibling and neighborhood correlations......Page 747
Method 2: structural analysis of different types of siblings......Page 748
Method 3: decompositions of intergenerational persistence......Page 750
Method 4: sibling and twin differences......Page 751
Method 5: regression analysis using adoptees......Page 753
Method 6: natural experiments/instrumental variable estimates......Page 761
Reconciling findings of twins/adoptees/IV literatures......Page 766
IQ/ability......Page 767
Jobs and occupations......Page 768
Welfare receipt......Page 769
Health......Page 770
Attitudes and social behavior......Page 771
Conclusion......Page 772
References......Page 773
New Perspectives on Gender......Page 781
Introduction......Page 782
Risk attitudes......Page 784
Attitudes towards competition......Page 787
Social preferences......Page 790
Attitudes towards negotiation......Page 792
Empirical implications for labor market outcomes......Page 794
Other personality traits......Page 798
Where do gender differences in preferences and personality traits come from?......Page 802
Nurture......Page 803
Nature......Page 806
Theoretical foundations......Page 808
Does gender identity influence women\'s labor market decisions?......Page 810
Empirical determinants of gender identity norms......Page 812
Does gender identity drive psychological attributes?......Page 814
Women\'s Well-being......Page 815
Conclusion......Page 818
References......Page 820
Great Expectations: Law, Employment Contracts, and Labor Market Performance......Page 829
Introduction......Page 830
The Law......Page 834
What is law?......Page 837
Employment law......Page 843
Exceptions to employment at will......Page 847
Public policy exception......Page 848
Implied contract exception......Page 849
Good faith exception......Page 850
Discussion......Page 852
Why do we need models?......Page 854
Economics of the employment contract......Page 859
Insurance......Page 860
Asymmetric information and the employment relationship......Page 864
The reliance interest......Page 867
Implementing the efficient employment contract in a market......Page 872
Summary......Page 880
Employment law......Page 881
The effect of unions......Page 900
Discussion......Page 923
References......Page 926
Human Resource Management and Productivity......Page 935
Introduction......Page 936
HRM measured using direct methods......Page 937
Measuring incentive pay through indirect methods......Page 945
Productivity dispersion......Page 946
Why should we expect to see an impact of HRM on productivity?......Page 948
HRM and productivity: the identification problem......Page 950
Econometric studies of the productivity impact of HRM......Page 953
General HRM studies......Page 967
Individual incentive pay......Page 969
Group incentive pay......Page 970
Distortions due to incentive pay......Page 972
Labor unions......Page 974
Complementarities......Page 975
The role of information and communication technologies (ICT)......Page 976
Two Perspectives on HRM and Productivity: Design and Technology......Page 977
The design perspective......Page 978
Theories of management quality......Page 979
``Behavioral\'\' explanations of management......Page 981
The two perspectives: summary......Page 982
Insurance and incentive pay......Page 983
Product market competition......Page 985
Ownership and governance......Page 986
Measurement of decentralization......Page 988
Theories of decentralization......Page 989
What influences decentralization?......Page 991
Conclusions......Page 995
References......Page 997
Personnel Economics: Hiring and Incentives......Page 1006
Introduction......Page 1007
Incentives in Organizations......Page 1009
Financial incentives do change behavior......Page 1010
How do firms provide incentives?......Page 1011
The risk/incentive tradeoff......Page 1016
The structure of CEO pay......Page 1018
Hiring......Page 1021
Black-box models of hiring......Page 1022
Sources of match-specific productivity......Page 1023
Inducing self-selection......Page 1030
Labor-market intermediaries......Page 1032
Firms accessing social networks......Page 1033
Employer-to-employer transitions and ``raids\'\'......Page 1037
Employer search......Page 1042
Recruiting on the Internet......Page 1047
Organizational demography......Page 1049
Hiring, agglomeration, and firm location......Page 1050
Post-hiring matching---retention and displacement......Page 1051
Conclusion......Page 1053
References......Page 1054
Subject Index to Volume 4B......Page 1061
Subject Index to Volume 4A......Page 1101