This paper extends a standard intertemporal labor supply model to account for progressive taxation as well as the joint determination of hourly wages and hours worked. We show that these two factors can have implications for both estimating labor supply elasticities as well as for using these elasticities in tax analysis. Failure to account for…

Using store-level and aggregated Consumer Price Index data, we show that restaurant prices rise in response to minimum wage increases under several sources of identifying variation. We introduce a general model of employment determination that implies minimum wage hikes cause prices to rise in competitive labor markets but potentially fall in…

Are highly educated workers better at locating in areas with high labor demand? To answer this question, I use three decades of U.S. Census data to estimate a McFadden-style model of residential location choice. I test for education differentials in the likelihood that young workers reside in states experiencing positive labor demand shocks at the…

We show that the narrowing gender gap and the growth in earnings inequality are consistent with a simple model in which skills are heterogeneous, and the growth in skill prices has been particularly strong for skills with which women are well endowed. Empirical analysis of DOT, CPS, and NLSY79 data finds evidence to support this model. A large…

Using matched employer-employee data from ten African countries, we examine the relationship between wages, worker supervision, and labor productivity in manufacturing. Wages increase with firm size for both production workers and supervisors. We develop a two-tier model of supervision that can account for this stylized fact and we fit the…

Three recent untested theoretical models of the wage setting behavior of the unemployed jobseeker by Gronau, Mortensen, and McCall are compared. The investigation supports McCall's model which indicates downward flexibility in the minimum asking wage resulting from learning during search and unemployment. (Author/MW)

This paper studies the relationship between abilities, schooling choices, and black-white differentials in labor market outcomes. The analysis is based on a model of endogenous schooling choices. Agents' schooling decisions are based on expected future earnings, family background, and unobserved abilities. Earnings are also determined by…

Using 1960 Census data for New York City, regression equations are developed to test empirically: (1) the relationship between the proportion of female-headed households and ADC incidence and (2) the effect of ADC incidence on male and female labor force participation rates. (Editor)

First develops a model of the economic impact of occupational licensure and then estimates the effects of licensure on wages and the division of labor in clinical laboratories. The findings indicate that recent licensure laws have no effect while older, more stringent laws increase the wages and employment of skilled laboratory personnel. (EM)

With data from the Survey of Income Program Participation, a structural model analyzed decision to use child care of married and single mothers. Simulations indicated that a refundable child care tax credit would distribute child care benefits more equally and would also increase labor force participation of mothers. (SK)

Analytic labor force participation models which exclude information on worker health care lack explanatory power. If costs of disability can be separated through better information into costs reducible through delivery of health care, and costs more appropriately dealt with through labor market policies, the models will be improved. (KP)

The major purpose of this paper is to examine the problems of geralizing from the Graduated Work Incentive experimental setting to the national labor-supply responses that would be generated by a negative income tax that replaced existing welfare programs for families headed by able-bodied males. (Author/BP)

The authors synthesize two models of systematic and random job search. They construct and test a theoretical model in which the searcher is endowed with information on some individual firms in the labor market, as well as the overall wage offer distribution. (Author/CH)

Among the many problems in interpreting the results of the experiment is the determination of what can be inferred from a limited duration experiment about the behavioral effects of a negative income tax. This paper examines and interprets experimental data based on the labor supply model. (Author/BP)

Using NLSY data, we examine the long-term effects of youth unemployment on later labor market outcomes. Involuntary unemployment may yield suboptimal investments in human capital in the short run. A theoretical model of dynamic human capital investment predicts a rational "catch-up" response. Using semiparametric techniques to control for the…