Adolescents face daily tradeoffs between human capital investment, labor, and leisure. This paper exploits state variation in the repeal of Sunday closing laws to examine the impact of a distinct and plausibly exogenous rise in the quantity of competing diversions available to youth on their educational attainment. The results suggest that the…

During the past half-century, there has been a trend toward increasing the minimum age a child must reach before entering school in the United States. States have accomplished this by moving the school-entry cutoff date earlier in the school year. The evidence presented in this paper shows that these law changes increased human capital…

Income taxes distort the relationship between wages and nontaxable amenities. When the marginal tax rate increases, amenities become more valuable as the compensating differential for low-amenity jobs is taxed away. While there is evidence that the provision of amenities responds to taxes, the literature has ignored the consequences for job…

Using data from the Current Population Survey and the New Immigrant Survey, this paper examines the common perception that immigrants are concentrated in high-risk jobs for which they receive little wage compensation. Compared to native U.S. workers, non-Mexican immigrants are not at higher risk and have substantial values of statistical life.…

We analyze discrimination against less attractive people on a TV game show with high stakes. The game has a rich structure that allows us to disentangle the relationship between attractiveness and the determinants of a player's earnings. Unattractive players perform no worse than attractive ones, and are equally cooperative in the prisoner's…

Sons (daughters) with criminal fathers have 2.06 (2.66) times higher odds of having a criminal conviction than those with noncriminal fathers. One additional paternal sentence increases sons' (daughters') convictions by 32 (53) percent. Compared to traditional labor market measures, the intergenerational transmission of crime is lower than that…

This paper complements previous studies on the effects of health on wages by addressing the problems of unobserved heterogeneity, sample selection, and endogeneity in one comprehensive framework. Using data from the German Socio-Economic Panel (GSOEP), we find the health variable to suffer from measurement error and a number of tests provide…

We use a new, matched worker-firm dataset for the United Kingdom to estimate the income loss resulting from firm closure and mass layoffs. We track workers for up to nine years after the displacement event, and the availability of predisplacement characteristics allows us to implement difference-in-differences estimators using propensity score…

We use data from the earlier and later cohorts of the NLSY to estimate the effect of marriage and childbearing on wages. Our estimates imply that marriage lowers female wages 2-4 percent in the year of marriage. Marriage also lowers the wage growth of men and women by about two and four percentage points, respectively. A first birth lowers female…

Charles (2003) examines the dynamic effects of disability, finding a small decline in earnings and hours following disability onset, even for those who have positive disability reports for each of the next ten years. These outcomes also rebound quickly after the onset of disability. In recent work, Meyer and Mok (2006), find a much larger loss in…

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…

This study documents the rapid growth in home-based wage and salary employment and the sharp decline in the home-based wage penalty in the United States between 1980 and 2000. These twin patterns, observed for both men and women in most occupation groups, suggest that employer costs of providing home-based work arrangements have decreased.…

This study improves upon the Difference in Difference approach by examining exogenous shocks using a Generalized Difference in Difference (GDD) technique that identifies economic effects of hurricanes. Based on the Quarterly Census of Employment and Wages data, worker earnings in Florida counties hit by a hurricane increase up to 4 percent,…

This paper studies the long-term effects of the business cycle on workers' future promotions and wages. Using the Swedish employer-employee matched data, we find that a cohort of workers entering the labor market during a boom gets promoted faster and reaches higher ranks. This procyclical promotion cohort effect persists even after controlling…

This paper employs conditional second moments to identify the impact of education in wage regressions where education is treated as endogenous. This approach avoids the use of instrumental variables in a setting where instruments are frequently not available. We employ this methodology to estimate the returns to schooling for a sample of…