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

862 Pages·2010·10.15 MB·English

by  Orley Ashenfelter

Handbook of
LABOR ECONOMICS
4A
VOLUME
INTRODUCTIONTOTHESERIES
The aim of the Handbooks in Economics series is to produce Handbooks for various
branches of economics, each of which is a definitive source, reference, and teaching
supplement for use by professional researchers and advanced graduate students. Each
Handbookprovidesself-containedsurveysofthecurrentstateofabranchofeconomics
in the form of chapters prepared by leading specialists on various aspects of this
branchofeconomics.Thesesurveyssummarizenotonlyreceivedresultsbutalsonewer
developments,fromrecentjournalarticlesanddiscussionpapers.Someoriginalmaterial
isalsoincluded,butthemaingoalistoprovidecomprehensiveandaccessiblesurveys.
The Handbooks are intended to provide not only useful reference volumes for
professional collections but also possible supplementary readings for advanced courses
forgraduatestudentsineconomics.
KENNETH J.ARROWandMICHAELD.INTRILIGATOR
Handbook of
LABOR ECONOMICS
4A
VOLUME
Editedby
ORLEYASHENFELTER
DAVIDCARD
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Amsterdam Boston Heidelberg London NewYork Oxford
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ISBN4A:978-0-44-453450-7
ISBN4B:978-0-44-453452-1
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11 12 13 14 10 9 8 7 6 5 4 3 2 1
CONTENTS OF VOLUME 4A
ContentsofVolume4B ix
ContributorstoVolume4A xiii
1. DecompositionMethodsinEconomics 1
NicoleFortin,ThomasLemieux,SergioFirpo
1. Introduction 2
2. Identification:WhatCanWeEstimateUsingDecompositionMethods? 13
3. Oaxaca-Blinder—DecompositionsofMeanWagesDifferentials 36
4. GoingbeyondtheMean—DistributionalMethods 52
5. DetailedDecompositionsforGeneralDistributionalStatistics 74
6. Extensions 87
7. Conclusion 96
References 97
2. FieldExperimentsinLaborEconomics 103
JohnA.List,ImranRasul
1. Introduction 104
2. HumanCapital 140
3. LaborMarketDiscrimination 149
4. Firms 177
5. Households 208
6. ConcludingRemarks 213
References 213
3. LabLabor:WhatCanLaborEconomistsLearnfromtheLab? 229
GaryCharness,PeterKuhn
1. WhyLaboratoryExperiments? 231
2. IssuesinDesigningLaboratoryExperiments 238
3. Testing‘‘Traditional’’Principal-AgentTheoryintheLab 246
4. TowardsBehavioralPrincipal-AgentTheory:Fairness,SocialPreferencesandEffort 276
5. MoreLabLabor:Bargaining,Search,Markets,andDiscrimination 294
6. Conclusions 312
References 315
v
vi ContentsofVolume4A
4. TheStructuralEstimationofBehavioralModels:DiscreteChoiceDynamic
ProgrammingMethodsandApplications 331
MichaelP.Keane,PetraE.Todd,KennethI.Wolpin
1. Introduction 332
2. TheLatentVariableFrameworkforDiscreteChoiceProblems 335
3. TheCommonEmpiricalStructureofStaticandDynamicDiscreteChoiceModels 336
4. Applications 371
5. ConcludingRemarks—HowCredibleareDCDPModels? 452
References 455
5. ProgramEvaluationandResearchDesigns 463
JohnDiNardo,DavidS.Lee
1. Introduction 464
2. ScopeandBackground 468
3. ResearchDesignsDominatedbyKnowledgeoftheAssignmentProcess 480
4. ResearchDesignsDominatedbySelf-Selection 516
5. ProgramEvaluation:LessonsandChallenges 529
References 532
6. IdentificationofModelsoftheLaborMarket 537
EricFrench,ChristopherTaber
1. Introduction 538
2. EconometricPreliminaries 539
3. TheRoyModel 545
4. TheGeneralizedRoyModel 560
5. TreatmentEffects 567
6. DurationModelsandSearchModels 591
7. Forwardlookingdynamicmodels 599
8. Conclusions 609
TechnicalAppendix 609
References 614
7. SearchinMacroeconomicModelsoftheLaborMarket 619
RichardRogerson,RobertShimer
1. CyclicalFluctuations 623
2. Trends 663
3. Conclusion 691
References 694
ContentsofVolume4A vii
8. ExtrinsicRewardsandIntrinsicMotives:StandardandBehavioralApproaches
toAgencyandLaborMarkets 701
JamesB.Rebitzer,LowellJ.Taylor
1. Introduction 702
2. AgencyandExtrinsicRewards 705
3. Extrinsicrewardsanddual-purposeincentives 721
4. Behavioralapproachestoagencyandmotivation 727
5. Dual-Purposeincentives:canpaydestroyintrinsicmotivation? 747
6. Conclusions 764
References 766
SubjectIndextoVolume4A xv
SubjectIndextoVolume4B xlix
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CONTENTS OF VOLUME 4B
ContentsofVolume4A xcvii
ContributorstoVolume4B ci
9. Earnings,ConsumptionandLifeCycleChoices 773
CostasMeghir,LuigiPistaferri
1. Introduction 774
2. TheImpactofIncomeChangesonConsumption:SomeTheory 779
3. ModelingtheIncomeProcess 789
4. UsingChoicestoLearnAboutRisk 818
5. IncomeProcesses,LaborSupplyandMobility 839
6. Conclusions 846
References 848
10. RacialInequalityinthe21stCentury:TheDecliningSignificanceof
Discrimination 855
RolandG.FryerJr.
1. Introduction 856
2. TheDecliningSignificanceofDiscrimination 858
3. BasicFactsAboutRacialDifferencesinAchievementBeforeKidsEnterSchool 865
4. InterventionstoFosterHumanCapitalBeforeChildrenEnterSchool 874
5. TheRacialAchievementGapinKindergartenthrough12thGrade 880
6. TheRacialAchievementGapinHighSchool 907
7. InterventionstoFosterHumanCapitalinSchool-AgedChildren 912
8. Conclusion 925
Appendix. DataDescription 926
References 965
11. ImperfectCompetitionintheLaborMarket 973
AlanManning
1. TheSourcesofImperfectCompetition 976
2. HowMuchImperfectCompetition?TheSizeofRents 980
3. ModelsofWageDetermination 990
4. EstimatesofRent-splitting 997
5. SoWhat? 1021
6. Applications 1022
ix